TOWN STAFF REPORT RECOMMENDATIONS
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Discuss, consider and act regarding Resolution 25-26 to approve an economic incentive agreement with Pluralsight as recommended by the Westlake Development Corporation, Inc (EDC 4B).
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STAFF: Jason Alexander, AICP, CEcD, Deputy Town Manager
BACKGROUND:
Pursuant to the provisions set forth in Chapter 380 of the Texas Local Government Code, as amended, and the provisions set forth in Chapters 501 and 505 of the Texas Local Government Code, as amended (i.e., the “Development Corporation Act”), this economic development incentive is an agreement between the Town of Westlake (the “Town”), the Westlake Development Corporation (the “WDC”), and a business prospect to “promote state or local economic development and to stimulate business and commercial activity in the municipality”.
As a joint economic development incentive agreement between the Town and the WDC, the terms and conditions that are contained therein are in complete alignment with the vision for economic development espoused by the Town and the WDC. This vision includes increasing the number of primary jobs as defined by the Development Corporation Act and making the Town and the surrounding communities more attractive to investment.
In particular, the terms and conditions provided for within the economic development incentive agreement focus on: (i) the creation and the retention of full-time (or equivalent) employment opportunities; (ii) the activation of underutilized space; and (iii) increasing the market demand for goods, services, and other commercial enterprises within the Town.
DISCUSSION:
As proposed and presented, this economic development agreement incentivizes the recruitment and the retention of Pluralsight. Pluralsight is a company that provides online professional tech training to a range of clients and customers. To recruit the company to Westlake, the economic development incentive agreement proposes that the WDC offer a cash grant in the form of sales and use tax revenues to assist with finish out, fixtures, furniture, and other technological needs --- and that the Town waive fees related to expedited plan review and building permits. For consideration of the economic development incentive --- Pluralsight --- will increase the supply of full-time (or equivalent) employment opportunities; activate underutilized space; and stimulate increased demand for commercial activity within the Town (e.g., lodging, restaurants, and retail). More importantly, the attraction, the retention, and the possible expansion of the company will reinforce the Town as a premier destination for corporations and other businesses providing high-paying employment opportunities within an increasingly complex knowledge-based economy.
As proposed:
Pluralsight will begin their finish out construction project consisting of an 18,000 square feet space at an estimated cost of $1.2 million in August. They will have an initial estimated IT spend requirement of $240,000, FF&E of $24,000, and estimated annual IT spend of $120,000, and an annual general office expenditures of $50,000. Total Sales Tax generation of initial costs is approx. $37,200.
Pluralsight is an AI training company and will be bringing in aprox. 150 people from outside of Westlake for multi-day training. The average stay is 1.25 days and an average room charge of $125 (Contract with Marriot Hotel in Westlake) which should yield and additional $1,636.25 a month to the Town in the way of Hotel Occupancy Tax.
Initial tax generated: $37,200
Annual sales tax generated: $1500
Annual HOT generated: $19,635
Annual Sales tax from F&B (Food and Beverage): $9,500
Total year one taxes generated: $67,835
Annual sales tax over the length of 10 year lease with Glen Star: $306,350
ROI including permit costs and grant: 1 year and 122 days
FISCAL IMPACT:
If the Town Council approves this economic development incentive agreement, it is anticipated that the Town will forego revenues generated from building permits and expedited development review fees; and the WDC will provide a one-time cash payment in the form of sales and use tax rebate from the Economic Development Corporation Fund.
WESTLAKE DEVELOPMENT CORPORATION RECOMMENDATION:
The WDC convened on July 7, 2025 and with a vote of 5 to 0 (with two absences) recommended approval of the economic development incentive agreement as proposed and presented.
STAFF RECOMMENDATION:
The Office of the Town Manager recommends approval of the economic development incentive agreement as proposed and presented.
TOWN COUNCIL ACTION / OPTIONS:
1) Motion to approve;
2) Motion to approve with additional conditions (please state additional conditions in motion);
3) Motion to deny; OR
4) Motion to table (must table to a specific date).
ATTACHMENT(S):
1) Resolution 25-26
2) EXHIBIT “A” - Economic Development Performance Agreement