Agenda

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15.

City Council Regular Meeting

Meeting Date:

11/10/2020

BACKGROUND

The mission of the Schertz Economic Development Corporation (SEDC) is to grow the Schertz economy through Project that focus on the creation /retention of Primary Jobs and Infrastructure improvements.

To accomplish this mission the SEDC proposes an executes economic development performance agreements to support Primary Job creation and Infrastructure projects that support increased commercial activity. These agreements are negotiated and executed through the SEDC Board of Directors and the Schertz City Council who approve the program and funding of the SEDC.
Performance agreements set out criteria to secure one-time or multi-year grants, reimbursements or rebates based on the goals of the project and intent of agreement. The following is a summary of recent payments with attached communication from the SEDC Executive Director to the City Manager providing additional background on each payment.

Schertz 312, LLC (“Schertz 312”) has been issued a final payment of $3,759,638.22. Schertz 312 completed Tejas Way and related sidewalk, water, wastewater, and improvements. Schertz 312 has received and provided a Letter of Acceptance from the City of Schertz for all related improvements.
Ace Mart Food Supply (“Ace Mart”) has been issued a payment of $30,704.82. Ace Mart has exceeded performance for calendar year 2019 for number employees, total annual payroll tangible personal property investment and taxable sales sourced from the local Schertz facility.
Cinestarz Entertainment, LLC (“Cinestarz”) has been issued payment of $215,661.69. Cinestarz completed water, wastewater and other improvements totaling $699,829.00. Cinestarz also exceed performance for calendar year 2019 regarding number of required employees and total capital investment.
RJL Texas-International Corporation (“Food Related”) has been issued a payment of $45,000 under the Small Business Program for COVID-19-related retention/expansion operations.

Each Performance Agreement contains recapture provisions that provide means of securing all or a portion of issued incentive payments if performance is not met and/or if the company fails to comply with reporting requirements.

GOAL

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

COMMUNITY BENEFIT

Partnership with a new development 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

None, this is an information item.

FISCAL IMPACT

In summary, with the satisfaction of all performance requirements the SEDC has issued payment of $4,051,004.73 budgeted in the SEDC FY 2020 Budget.

RECOMMENDATION

None, this is an information item.

Attachments
Schertz312LLC Payment Memo
AceMart 2019 Rebate Pmt Memo
Cinestarz Grant Pmt Memo
FoodRelated Grant Payment Memo