Pflugerville Officials Broker Deal For Hawaiian Falls Operators To Relinquish Lease, Operations

PFLUGERVILLE, TX — Hawaiian Falls has fallen. Pflugerville City Council members on Thursday approved releasing the water park's operators from their lease obligation and negotiate terms with a new operator, Typhoon Texas Waterpark.

The move comes after Hawaiian Falls Waterparks went into default with the city on payments of some $400,000 as outlined in a previously negotiated agreement with the Pflugerville Community Development Corporation. As a result of those defaulted payments, a joint meeting was staged Thursday evening with council and PCDC officials to effect a transfer of the lease and operating agreement to Typhoon Waterpark of Pflugerville, LLC to operate the Pflugerville aquatic attraction run by Hawaiian Falls.

The city and PCDC expect to soon finalize terms of an agreement that would allow Typhoon Texas, as the new operator, to break ground quickly on the multi-million dollar project to renovate the park, officials said. Typhoon Texas is expected to open for its first summer season in Pflugerville May 2017, officials added.

“The Pflugerville waterpark needed investment and changes to be successful," PCDC Executive Director Amy Madison said. "After exploring options for more than a year with our partners at the City of Pflugerville, we believe we have found the right operator who shares our vision for the park."

She noted the financial and operational wherewithal of Typhoon Texas made it a good choice to operate the park: "The Typhoon Texas team has the capital, the leadership and the proven track record to turn around this waterpark,” Madison said. “With this agreement, we have successfully kept hundreds of seasonal jobs in our community and protected an asset that brings significant economic development benefits to Pflugerville.”

Despite Hawaiian Falls' inability to make payments, a number of restaurants and the community’s first hotel have opened and are thriving nearby since the park opened in 2014, officials noted.

Pflugerville Mayor Victor Gonzales said he was pleased with the new arrangement, and confident that under new management the water park would lure families to the amenity.

“We’ve known that with the right operator, this waterpark could be a beautiful, safe and family-friendly destination for residents and visitors in Pflugerville, and we’re so pleased to now have Typhoon Texas at the helm,” Gonzales said. “We want a family entertainment venue that provides high-quality guest services. For us, that means new attractions, free parking and an operator with a commitment to quality. We agree that more play areas and amenities for younger children are needed, and we are committed to responding to the requests of our citizens.”

A revised lease and operating agreement was approved for transfer to Typhoon Texas during a joint meeting Dec. 15 with the PCDC Board of Directors and Pflugerville City Council, officials explained. With this action, Source Horizon, LLC, which owns Hawaiian Falls, is relieved from its lease obligation to Pflugerville, city officials reiterated.

Typhoon Texas owns and operates a successful water park west of Houston in Katy, Texas, that opened last summer and now is said to exceed attendance expectations, according to city officials. On their website, Texas Typhoon officials said they will honor all season passes previously purchased for Hawaiian Falls by Pflugerville-area residents.

Co-owners Ray DeLaughter, Keith Dalton and Terry Hlavinka say a large play area for younger children will be among the added attractions and improvements at the Pflugerville site.

“Our investment analysis shows there is strong market opportunity at the Pflugerville location, but the wrong product has been in place, and we can fix that,” DeLaughter said. “We know we can deliver a waterpark that people love, which is evident by our success at Typhoon Texas in Houston. Typhoon Texas in Pflugerville will soon be a great benefit to the city and the region.”

The PCDC is responsible for attracting, retaining and expanding businesses to create new jobs and increase tax revenue to support community development. PCDC can provide funding for use as an incentive to companies locate and grow in Pflugerville. PCDC funds, which are 4B money generated from a half-cent of the city’s sales tax revenue, can also be used to construct needed infrastructure such as roads, utilities and drainage projects.

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