18-R-149a- Terminating the development agreement with GE Oil and Gas LLC0 NA l
WHEREAS, on February 4, 2014 the City of Schertz, Texas (the "City ") and the City of
Schertz Economic Development Corporation (the "SEDC ") entered into a Development
Agreement with GE Oil & Gas, Inc. (the "Developer ", and collectively with City and SEDC, the
"Parties "); and
WHEREAS, the Parties entered into Amendment No. 1 to the Development Agreement
effective as of April 25, 2016; and
WHEREAS, the Parties entered into Amendment No. 2 to the Development Agreement
effective as of November 14, 2017 and assigned the Development Agreement to GE Oil & Gas
LLC. (GE Oil & Gas); and
WHEREAS, GE Oil & Gas has operated in accordance to the Amendment No. 2 and helped
to promote economic development within the City of Schertz through their job creation and capital
investment; and
WHEREAS, Amendment No. 2 outlined that in the event of a default, GE Oil & Gas'
exclusive obligation would be to repay ONE HUNDRED NINETY SIX THOUSAND TWO
DOLLARS AND EIGHTY CENTS ($196,002.80), plus any costs and expenses including
attorney's fee ( "default amount ") to the SEDC; and
WHEREAS, as of this day, GE Oil & Gas has not defaulted on the Development
Agreement but voluntarily repaid the SEDC on October 22, 2018 with the intention of terminating
the agreement; and
WHEREAS, the SEDC held a meeting on November 28, 2018, and the Board of Directors
found that it was in the best interest of the SEDC, City and GE Oil & Gas to terminate the
agreement; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS:
Section 1. The City Council hereby terminates the Development Agreement,
Amendment No. 1, and Amendment No. 2 with GE Oil & Gas LLC.
Section 2. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Resolution for all purposes and are adopted as a
part of the judgment and findings of the City Council.
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Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application of
such provision to other, persons and circumstances shall nevertheless be valid, and the City Council
hereby declares that this Resolution would have been enacted without such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final passage,
and it is so resolved.
PASSED AND ADOPTED, this 4h day of December, 2018.
ATTEST:
Brenda Dennis, City Secretary
CITY OFWTZ, TEXAS
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Carpenter, Mayor