Agenda

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City Council Regular Meeting

Meeting Date:

11/10/2020

BACKGROUND

Phelan-Bennett Development Company (“Phelan-Bennett”) was established in 2018 and serves as the Texas Regional Partner of Phelan Development, a privately real estate development company headquartered in Newport Beach, California. Since its inception, Phelan-Bennett has led the development of seven individual industrial projects greater than 1.2 million square-feet and its principals have directly managed investment activity in excess of $100 million in the Houston and San Antonio markets. This project represents the first development within the City of Schertz.

Phelan-Bennett has proposed development of a 169,525 square foot warehouse distribution facility near the intersection of Four Oaks Lane and FM 3009 across from the existing Wal-Mart on Four Oaks Lane. The project has requested assistance with infrastructure improvements including relocation of a sanitary sewer line. The relocation and extension of this line benefits neighboring tracts to the East of the project by providing utility service on the North side of Four Oaks.

In consideration, the SEDC has offered to provide an infrastructure reimbursement grant of up to $50,000 to be used for infrastructure improvements (“Infrastructure Grant”). The value of the Infrastructure Grant is based on a minimum $5,000,000 in capital improvements to the site as assessed by the Guadalupe Appraisal District. The grant of up to $50,000 will be payable upon submission of final assessment and substantiated infrastructure costs. The grant may be reduced proportionally based on a lower assessed value. For example, if the assessment is for $4,500,000 rather than $5,000,000 (90% of projected capital improvements) the total amount of the Infrastructure Grant would be $45,000 (90% of maximum Infrastructure Grant).

GOAL

To grow the Schertz economy through Projects that focus on the creation/retention of Primary Jobs and Infrastructure Improvements.

COMMUNITY BENEFIT

This agreement supports development of a 169,525 square foot warehouse distribution facility and supports continued development East of the project along Four Oaks Lane. It establishes a partnership with a new development partner and supports the community’s need for available space for Primary Job companies to invest in Schertz and further establishes the community as a regional distribution hub.

SUMMARY OF RECOMMENDED ACTION

This action authorizes up to $50,000 for an SEDC Infrastructure Grant to support development 169,525 square foot warehouse distribution facility and a capital investment of $5,000,000 in the City of Schertz.

FISCAL IMPACT

The Infrastructure Grant will be paid through SEDC funds, no City general funds will be used for the project. The SEDC Infrastructure Grant is worth up to $50,000 for $5,000,000 of assessed value which will generating over $76,000 for the City of Schertz General Fund over a three-year period. In the event that Phelan-Bennett fails to create up to $5,000,000 of new assessed value, the Infrastructure Grant will be reduced proportionally.

RECOMMENDATION

Authorization of the SEDC program and funds for the Economic Development Performance Agreement with Phelan-Bennett, LLC through the approval of Resolution No. 20-R-115.

Attachments
Exhibit A-Phelan Agrmt
CC Res 20-R-115 Phelan-Bennett