Febuary 6

However, Pflugervilles economic development director, Charles Simon, anticipates the corridor will soon evolve into a major epicenter for the city. Already, he has noticed an increased interest in the properties around the area.

It will be the most traveled roadway in town and will have the most commercial activity, Simon said.

He said Wal-Marts entrance on FM 685 is just the initial stage in the thoroughfares development and the resulting financial benefits.

In the first year of the stores operation, city finance director Lauri Gillam projects it will generate $800,000 for the city budget. Around $300,000 will come from property tax and another $500,000 in sales tax.

Beyond the money Wal-Mart provides, Gillam said the stores decision to come to Pflugerville also suggests the city has entered a new stage of economic development.

Property tax revenue funds most of the general operations in Pflugerville, requiring one of the highest property tax rates in the region.

While Plugervilles rate for the 2006-07 fiscal year was .635 cents for every $100 value, neighboring Round Rock cuts that number almost in half with a .36021 cents rate.

However, the Pflugerville City Council in 2001 stated a desire to change that burden on homeowners by increasing the sales tax base through commercial growth. Already, they have seen results.

he citys goal for 2006 was an eight percent sales tax revenue increase. Simon said the revenue from sales tax actually grew by 21 percent. Wal-Mart and the new developments to follow will only add to this growing revenue source, he said.

"FFFFFF91For Sale signs have begun to spot the roadside along FM 685. Last December, the City Council approved an economic development agreement with NewQuest Properties for one million sq. ft. of retail space, named Stone Hill Town Center, at the intersection of nearby SH 45 and SH 130.

Simon thinks prospective businesses are waiting to evaluate the prices and values of all possible sites before they decide whether to invest at the toll roads or FM 685, which is closer to downtown.

Although NewQuest has not named its anchor stores yet, Target and Home Depot are possible options. The developers anticipate final announcements within the next few months, and the first stores should open Spring 2008.

Similar to the agreement made with Wal-Mart, Stone Hill also has standards for the center"FFFFFF92s appearance. The city believes residents want more business, but not at the cost of aesthetics.

As chair of the Pflugerville Council of Neighborhood Associations, Rod Reyna remembers homeowners concerns about Wal-Mart, particularly regarding its exterior. Project developers offered to meet as many times as needed with the homeowners associations to alleviate any potential problems.

Reyna said after numerous discussions, the city, businesses and neighborhoods reached a workable agreement. Instead of a traditional Wal-Mart storefront, the building has a more decorative entrance, which he believes better reflects the community.

He also noted the addition of a new road and stoplight, along with road improvements that came through the Wal-Mart initiative. Reyna appreciates residents can stay in Pflugerville to buy.

I think it is good we have a place for people to shop locally so the tax dollars don"FFFFFF92t go elsewhere, he said. This is a catalyst for other retail that will meet the needs of our community.

Simon also highlighted the stores ability to keep people in Pflugerville. Although he recognizes some residents may continue to have doubts about bringing Wal-Mart because of its potential to harm smaller business owners, he thinks the store will have an opposite effect of what some might anticipate.

It will change shopping patterns, he said. If some residents of ours are doing some Wal-Mart-type shopping then they were leaving town.

Now he hopes shoppers will have fewer reasons to look beyond city limits for their needs, which will encourage them to visit other local vendors.

Pflugerville is also potentially in the position to attract more business because of its easy access to three major highways, IH 35, SH 130 and SH 45. Simon noted the city has another valuable resource available to employers"FFFFFF97people. With the retail coming and the transportation in place, he said it is only a matter of time until Pflugerville attracts major corporations.

I am confident, he said, that we are going to have an announcement this year of a corporation coming.

Heidi Schoonover

Sales Representative

Alamo Title Company

m.512-944-8310

p.512-249-0333

f.512-249-0538

www.alamotitle-austin.com