Pflugerville Officials Finalize Lease Terms With Typhoon Texas Water Park Operators

PFLUGERVILLE, TX — City officials said Tuesday they finalized financial terms with water park operators of Typhoon Texas, setting up the new amusement site for a May opening.

The city has been negotiating terms since last month with Typhoon Waterpark of Pflugerville LLC to take over the park after its previous operator, Hawaiian Falls, defaulted on payments it owed the city. The new agreement with the Typhoon Texas operators calls for a two-year ground and operating lease agreement for the Pflugerville water park, city officials said. The lease and operating agreement includeoptions to renew in 10-year increments until 2038, city officials added.

The meeting during which details were hammered out follow the City Council decision on Dec. 13 authorizing the Pflugerville Community Development Corp. to proceed with negotiations and transfer of the water park lease from Source Horizaon LLC, the former Hawaiian Falls operators, to Typhoon Texas.

The approved lease includes terms that outline the addition of certain family-family features and funding plans to upgrade the park in making it more of a regional destination, city officials noted.

As part of the newly reached deal:

• Typhoon Texas will honor Hawaiian Falls 2017 season passes that have already been purchased and is currently matching Hawaiian Falls season pass pricing for new park passes ($69.99);
• Typhoon Texas will provide free parking to patrons with the exception of VIP or valet parking;
• Typhoon Texas will resurface and remedy the areas of the water park that currently feature gravel stone and sand.
• Typhoon Texas committed to add new rides to the facility, including the Gully Washer, a giant four-story water splash-pad playground with slides and activities for young children, officials said. The Gully Washer will be operational, weather permitting, by May 26, 2017.

“Our first priority for these negotiations was to ensure that we addressed the feedback we’ve received from Pflugerville families to make the park a more attractive and accessible destination,” Pflugerville City Manager Brandon Wade said in a prepared statement. “We also wanted to negotiate fair funding terms for all parties involved. We’re pleased with the terms, and we look forward to a successful partnership.”

Among some of the more salient financial terms are:

• Typhoon Texas will invest at least $4.5 million into the waterpark over a two-year period for park improvements, including repairs, maintenance, new attractions and technology for operations;
• In return, the PCDC agreed to a lease payment of $1.15 million a year in consideration of the $4.5 million investment in waterpark improvements by Typhoon Texas. The PCDC will contribute approximately $434,315.88 annually, funded by sales tax revenue, to assist in fulfilling payments to Capital One. After the PCDC’s loan for the park is fulfilled, the lease payment will be reduced to $100 annually (anticipated year 2038);
• Typhoon Texas shall pay either the net annual income or $1.15 million, whichever is less, as its annual lease payment in years 2017 and 2018, during which Typhoon is investing $4.5 million into the park;
• Neither the PCDC nor the City of Pflugerville plan to make any additional investments in the waterpark;
• Typhoon Texas will spend a maximum of $250,000 on repairs and maintenance as required to issue a Certificate of Occupancy for the park. A new Certificate of Occupancy inspection is required with the transfer of the lease and any repairs needed up to $250,000 will be paid by the PCDC;
• In addition to the lease payments, Typhoon Texas will pay PCDC $1 for every ticket over 300,000 sold in any season, with a season pass counting as one ticket sold;
• Typhoon Texas will conduct routine year-round maintenance on the park in accordance with State of Texas and local requirements.

“The collaboration of the City Council and PCDC Board has been extraordinary to finalize these terms and meet the needs of Typhoon Texas to maximize success for a May 2017 park opening,” PCDC Director Amy Madison said in a prepared statement. “In a timely manner, we’ve reached our goals and will have a new ride in the park as soon as May, a truly remarkable feat.”

In addition to the investment and funding details, PCDC and the the city will work to negotiate a public access to the waterpark off FM 685, a roadway under the jurisdiction of the Texas Department of Transportation (TxDOT), officials said. The opening day for Typhoon Texas, weather permitting, is scheduled for May 1, 2017, officials added.

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