Agenda

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14.

City Council Regular Meeting

Meeting Date:

08/27/2019

BACKGROUND

In May 2018, the City of Schertz Economic Development Corporation (“SEDC”) Board of Directors approved an Economic Development Performance Agreement (the “Agreement”) with Schertz 312 LLC (“Schertz 312”). Under the Agreement, Schertz 312 agreed to construct infrastructure improvements necessary for a future million square foot user. In consideration, the SEDC agreed to provide up to $4 million for the actual costs associated with the infrastructure improvements.

According to Article IV, Section 1 of the Agreement, Schertz 312 is permitted to receive a first installment payment for the design. The first installment upon issuance of the infrastructure permit.

The SEDC reviewed all documents to confirm that Schertz 312 is in compliance to the agreement and qualifies for the first installment payment. The payment from the SEDC is due within thirty (30) days of the receipt of the infrastructure permit and when the funds are requested which was on August 12, 2019.

COMMUNITY BENEFIT
The Project will help ensure that Schertz has new industrial space available for new and expanded businesses.

FISCAL IMPACT
All incentives under the Agreement will be paid from the SEDC Funds: 620-101-537600 (Development Incentive Fund) which were approved by City Council during the approval of the Budget FY 2018-19. The SEDC issued a PO#19-16226 for payment of the First Installment in the amount of $240,361.78. Per the Agreement, Schertz 312 may receive an additional $3,759,638.30 for the construction of the Project.

SUMMARY OF RECOMMENDED ACTION
No further action is required.

ATTACHMENT(S)
No attachments.