Agenda

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City Council Regular Meeting

Meeting Date:

10/25/2022

BACKGROUND

The Schertz Economic Development Corporation (SEDC) is a Type B Economic Development Corporation that may recommend to City Council funding of projects authorized by Texas Local Government Code, Sections 501 and 505, in accordance with the current Mission of the SEDC.

The current Mission of the SEDC focuses on two of nine funding authorities.

1. Create or retain Primary Jobs (Section 501.101 & 505.155)
2. Infrastructure improvements that promote new or expanded business enterprises (Section 501.103)

Primary Job projects and infrastructure improvements related to new industrial/commercial investment are currently executed through performance agreements recommend by the SEDC Board of Directors and approved for funding by City Council.

Additionally, the (SEDC) has partnered with the City of Schertz to prioritize funding from the SEDC Reserve Fund for infrastructure projects that fall within the mission and authority of the SEDC as a Type B Economic Development Corporation as permitted under Texas Local Government Code Section 501.103. The SEDC has in recent years worked with the City on projects such as investments in Main Street and Tri County Parkway improvements.

In partnership with the City of Schertz, the SEDC Board of Directors continue to plan deployment of the SEDC Reserve fund for additional infrastructure projects over multiple fiscal years and may leverage dollars from multiple sources. The SEDC Board of Directors are charged with budgeting, projection, and recommending allocation of funds, as well as ensuring dollars are expended according to allowable uses as described in Section 501and 505 of the Texas Local Government Code.

GOAL

This action supports the administration of SEDC Reserve Fund allocations for current and future infrastructure projects permitted under Section 501.103. The annual adoption of an MOU provides the opportunity to continuously improve how projects under this authority are executed in partnership with the City of Schertz. Furthermore, it supports the City and SEDC Board of Directors in planning and managing multiple infrastructure projects, across multiple fiscal years, while potentially leveraging multiple funding sources (Private/State/Federal grants, etc.).

COMMUNITY BENEFIT

The majority of City of Schertz general fund revenue is supported by industrial and commercial investment in the community. This action supports efficient and transparent planning and management of infrastructure investments in an increasingly competitive commercial development market.

SUMMARY OF RECOMMENDED ACTION

This action adopts an MOU that establishes a process for project development, project updates and reporting on sources and uses of funds, timing of encumbrances, and project closing processes. This MOU will be updated and proposed for adoption annually. It provides support to the City and SEDC Board of Directors to plan and manage multiple infrastructure projects, across multiple fiscal years, while potentially leveraging multiple funding sources (Private/State/Federal grants, etc.).

FISCAL IMPACT

None. This action formalizes an MOU for the development of project-specific Funding Agreements that will be budgeted each fiscal year or allocated from the SEDC Reserve Rund through SEDC Board of Directors and City Council action.

RECOMMENDATION

Staff recommends approval of the attached City Council Resolution 22-R-112 and associated Memorandum of Understanding for FY 2022-2023. Attached please find SEDC Resolution 2022-12 which was approved by the SEDC Board of Directors on September 29, 2022 in support of such.

Attachments
CC Resolution 22-R-112
SEDC Resolution 2022-12
City of Schertz MOU