Agenda

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10.

City Council Regular Meeting

Meeting Date:

06/25/2019

BACKGROUND

The City of Schertz Economic Development Corporation (“SEDC”) held a public hearing and approved SEDC Resolution 2019-13 at their meeting on June 20, 2019. The SEDC resolution approved, subject the City Council’s authorization of funds, an Economic Development Performance Agreement (“Agreement”) with Nexus Enterprises Inc (“Nexus”) attached as part of the City’s Resolution 19-R-80 hereto attached. Nexus is a healthcare, insurance, and services solutions provider with customers throughout the United States.
Under the Agreement, Nexus will enter a 10-year lease and relocate its headquarters to a new 36,000 square foot office building that will be located at 5600 Schertz Parkway. As part of the agreement, Nexus must create at least 87 full time jobs with an annual payroll of $4,616,770 and maintain certain personal property requirements as identified in the Agreement.
Nexus chose Schertz as a strategic location as the company continues to grow and focus on the betterment of its employees. The Schertz location offers Nexus the ability to locate in a new standalone office building that is more centralized to its workforce. The SEDC has offered Nexus the ability to reduce its clawback by 12.5% or $25,000 if they promote the key drivers noted above on why they chose Schertz.
City Council Resolution 19-R-80 authorizes the program and expenditures outlined in the Agreement.

GOAL

To approve Resolution 19-R-80.

COMMUNITY BENEFIT

This project will produce a positive economic benefit for the City of Schertz. This project creates new high paying jobs and introduces new office development in Schertz. All economic development incentives will come from the SEDC, the City of Schertz will realize the full economic benefit of this project.

SUMMARY OF RECOMMENDED ACTION

To approve Resolution 19-R-80 authorizing the Agreement. The SEDC Board and Staff recommends this action. At the SEDC Board Special Called Meeting held on June 20, 2019, the SEDC Board of Directors voted to approve SEDC Resolution 2019-13. A motion was made by Mr. Richard. Seconded by Ms. Morrill. Motion passed 5-0.

FISCAL IMPACT

Resolution 19-R-80 authorizes up to $200,000 of SEDC funds for the Agreement. The funds will be added to SEDC’s FY 2019-20 budget.

RECOMMENDATION

To approve Resolution 19-R-80 authorizing the Agreement.

Attachments
Resolution 19-R-80