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3.
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| City Council Regular Meeting |
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| BACKGROUND |
Schertz RE Company, LLC seeks to construct a 6,900 sq. ft. office building generally located near the southeast corner of Elbel Rd and Roy Richard Dr. The development will consist of $2,500,000 in real property investment and create 10 full-time jobs.
The anchor tenant will be, HealthTexas Primary Care Doctors. For over twenty-five years HealthTexas has been providing primary care to families in San Antonio, Boerne, New Braunfels and Schertz. They were established in 1994 by a group of local primary care physicians who identified a need to combine their passion and skill to improve the health of their patients. Since then, HealthTexas has grown to include more than 65 healthcare providers in 18 primary care clinics in and around the San Antonio region.
The project was impacted by an unexpected cost of the extension of backbone power infrastructure across Roy Richard Dr. and the inability to secure concessions from the City of Schertz to provide power to the site via overhead power lines. Typically, to manage costs in support of this type of development, the City of Schertz may provide, on a case-by-case basis, the option of waiving the requirement to provide power to the site through undergrounding of utilities. Allowing developments to secure power through overhead lines lowers and balances costs in certain instances and when appropriate. However, this site was impacted by the inability to secure easements from the Schertz Seguin Local Government Corporation (SSLGC) and GVEC. These entities could not provide easements without impacting operational standards for access to their facilities, and so the City of Schertz could not provide any further assistance to manage the cost of the extension of utilities.
GVEC estimates the total cost for the provision of power, including the extension of backbone infrastructure, to be over $108,000 for each of the two projects seeking to invest in a similar office development along Roy Richard Dr. This includes a GVEC credit of over $5,000 for two years of projected usage. The companion development, 3009 OAC Investments, LLC, is impacted by the same challenges and constraints on their development. While the projects are being provided separate agreements, SEDC staff reviewed the project, understanding that this investment would enable both projects to proceed. |
| GOAL |
| Support the continued office/retail development along Roy Richard Dr. and secure the development of 6,900 sq. ft. office building through the provision of assistance to extend backbone electrical infrastructure through a partnership between the City of Schertz and the Schertz Economic Development Corporation. |
| COMMUNITY BENEFIT |
| Provision of electrical infrastructure necessary for new office/retail development along Roy Richard Dr. This action secures a 6,900 sq. ft. office building and new taxable value of approximately $2,000,000. |
| SUMMARY OF RECOMMENDED ACTION |
| Approval of a Chapter 380 economic development performance agreement and a one-time SEDC Infrastructure Grant with a combined value of no more than $50,000 over a period of up to 10 years to support continued retail/office development along Roy Richard Dr and secure a 6,900 sq ft office building. |
| FISCAL IMPACT |
Over a ten-year period, the estimated revenue to the City of Schertz is projected at approximately $99,000. With a total maximum grant value of up to $50,000 over a ten-year period, the estimated fiscal impact of this agreement is $49,000.
The City of Schertz will budget annually for the estimated annual grant of $4,950 (up to $25,000 over 10 years) from the General Fund. Additionally, SEDC will pay a reimbursement grant of up to $25,000 from an allocation from the SEDC Reserve Fund. |
| RECOMMENDATION |
| Staff recommends that the City Council of Resolution 22-R-111. |
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