In 2003, Planned Community Developers (PCD) partnered with the City of Sugar Land to create Sugar Land Town Square, a landmark mixed-use development and one of the most successful public-private partnerships in America. PCD’s involvement extended beyond development, transitioning to over two decades of property management, during which we oversaw office and retail leasing, legal frameworks, association and parking management, as well as marketing and events.
From 1998 to 2023, PCD guided Sugar Land Town Square through every phase of its evolution. We master-planned and designed the entire project, handled development and construction, and led marketing, sales, and leasing efforts. Our role also included property and association management, as well as creating a dynamic event programming schedule that brought the community to life year-round.
Execution
Sugar Land Town Square is renowned for being a vibrant mixed-use development that has significantly transformed the city of Sugar Land, Texas. PCD and the City of Sugar Land set out to:
- Develop of the 32.83-acre site
- Realize the vision for a true mixed-use destination
- Design for neo-traditional urban-style downtown
- Desire for open spaces, extensive streetscapes, and wide sidewalks
- Plan for 1.2-acre central plaza for events, concerts, festivals, and civic celebrations for the City
How we put the deal together:
- Created the Tax Increment Reinvestment Zone (TIRZ)
- Established by Ordinance 1149 of the City Council of the City of Sugar Land on December 1, 1998
- Zone covers 32.83 acres located at the southern corner of State Highway 6 and U.S. 59 in Sugar Land, Fort Bend County, Texas
- Zone is within Fort Bend ISD and Fort Bend County LID #2
Other incentives:
- HOT Tax (Hotel Occupancy Tax) and its role in financing the development
- Cash Business Incentives to attract office tenants
- Tax Abatement to encourage the retention and development of existing businesses
What emerged was a successful blend of retail, dining, office spaces, and residential units making SLTS a hub for both locals and visitors. The design promoted walk-ability that encouraged community interaction through public events, festivals, and a picturesque plaza that serves as a gathering space. SLTS was to become a destination for shopping and entertainment, contributing to the overall appeal of Sugar Land as a desirable place to live and work.
Results
The success of Sugar Land Town Square is reflected in its robust economic performance, which continues to creates value for office, retail and dining tenants. The transformative project included:
- 564K+ SF of Office
- 240K+ SF of Retail
- Full-service, 300 room Marriott hotel
- 1.4-acre pedestrian plaza
- 167 mid-rise condominium units
- Share structured parking
- 27K SF Conference Center
PCD had the foresight to adapt to changing market demands and navigate 25 years of market and cultural transformation.
- COVID
- Online shopping
- Social media
- Technology
- Experiential trends
- Cultural shifts
- Diverse consumer base and tastes
Adaption included:
- Changes in government contacts resulting from election results
- Changes in tenant mix
- Increased demand for placemaking
- More food, more social experiences
- New social norms
- Apartments vs. condominiums
- Parking adaptations
With a strategic mix of national brands, local boutiques, innovative dining and entertainment options, SLTS is a destination year round, appealing to diverse audiences.
Sugar Land Town Square has become a model for successful development, illustrating how thoughtful planning and community engagement can lead to a thriving and dynamic environment. (See whitepaper)
According to the 2023 TIRZ report, all properties in the TIRZ now have an appraised value of nearly $270M, while the initial value estimate was $101M to be reached in 2025. The accelerated value creation results in the City reaching their tax goal in 2013 vs 2025 and currently is receiving city taxes at 3X the projected final year value.