The URL can be used to link to this page

11-20-2025 Agenda SEDC Board Reg Meeting with Packet MEETING AGENDA SCHERTZ ECONOMIC DEVELOPMENT BOARD REGULAR SESSION - NOVEMBER 20, 2025 HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS CONFERENCE ROOM 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 AGENDA THURSDAY, NOVEMBER 20, 2025 at 6:00 p.m. The City of Schertz Economic Development Corporation (SEDC) Board of Directors will hold a regular monthly meeting on Thursday, NOVEMBER 20, 2025. at 6:00 p.m. at the Hal Baldwin Municipal Complex, Council Chambers Conference Room, Building No. 4, 1400 Schertz Parkway, Schertz, Texas. This is an open meeting, subject to the open meeting laws of the State of Texas. In accordance with provisions of the Texas Open Meetings Act, Chapter 551, Texas Government Code notice is hereby given that a Possible Quorum of the governing body of the City of Schertz, Texas may take place at this meeting. Call to Order 1.Roll call, recognition of visitors, and review of meeting instructions for effective Board interaction and public participation. Hearing of Residents This time is set aside for any person who wishes to address the Board. Presentations should be limited to no more than 3 minutes. The presiding officer will call on those persons who have signed up to speak. Consent Agenda 2.Approval of the Minutes for the Board of Directors Regular Monthly Meeting held October 23, 2025. (A. Madison) Discussion Only 3.Presentation and discussion regarding the SEDC monthly financial statement for the month of October 2025. (S. Wayman) 4.Presentation and discussion regarding the feasibility study for a potential local hotel and amenities. (S. Wayman) 5.Presentation and discussion of the Americas Competiveness Exchange (ACE) trip to Cordoba, Argentina. (A. Madison) Discussion and Possible Action 6.Resolution 2025-9 - Authorizing the City of Schertz Economic Development Corporation Executive Director to execute a First Amendment and Assignment of the EastGroup Properties, L.P. Performance Agreement. (S. Wayman) Closed Session SEDC Agenda November 20, 2025 Page 1 of 2 Closed Session 7.Called in accordance with Section 551.087 of the Texas Government Code, Deliberation Regarding Economic Development Negotiations; Closed Meeting. The governmental body is not required to conduct an open meeting (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect. E-99 Reconvene to Regular Session 8.Take any actions based on discussion held in closed session under Agenda Item No. 7. Requests and Announcements Announcements by staff. City offices closed November 27-28, 2025 - Thanksgiving. 1. SEDC Board Holiday Party at Makos on the Creek - December 18, 2025 at 6:30 pm.2. Next Regular Board Meeting - January 22, 20263. Requests by Board Members to place items on a future SEDC Board Meeting agenda. Adjournment CERTIFICATION I, Kari Baker, Administrative Assistant, of the City of Schertz Economic Development Corporation, do hereby certify that the above agenda was posted on the official bulletin boards on this the 14th day of November, 2025, at 5:00 pm, which is a place readily accessible to the public at all times and that said notice was posted in accordance with chapter 551, Texas Government Code. ____________________________ Kari Baker Administrative Assistant- Economic Development I certify that the attached notice and agenda of items to be considered by the Schertz Economic Development Corporation Board of Directors was removed from the official bulletin board on _____day of _______________, 2025. Name/Title:______________________________ This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services, please call 210-619-1070. The Economic Development Corporation Board of Directors reserves the right to adjourn into closed session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Closed Sessions Authorized: This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Closed Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. SEDC Agenda November 20, 2025 Page 2 of 2 D R A F T MINUTES REGULAR MEETING OCTOBER 23, 2025 6:00 PM The City of Schertz Economic Development Corporation (SEDC) Board of Directors held a regular monthly meeting on Thursday, OCTOBER 23, 2025. at 6:00 pm at the Hal Baldwin Municipal Complex, Council Chambers Conference Room, Building No. 4, 1400 Schertz Parkway, Schertz, Texas. In accordance with provisions of the Texas Open Meetings Act, Chapter 551, Texas Government Code notice is hereby given that a possible Quorum of the governing body of the City of Schertz, Texas may take place at this meeting. The following members present to-wit: Present: Bill Dixon, Board President Eryn McElroy, VP (late arrival-6:25) Ray Chavez, Treasurer Matt Clingo, Board Member John Faubush, III, Board Member Absent:Bryan Jones, Board Secretary Sharon Denson, Board Member Staff present: Scott Wayman, Executive Director Brian James, Deputy City Manager Amy Madison, Deputy Director Ashley Ritchey, Business Engagement Manager Kari Baker, Administrative Assistant SEDC Agenda October 23, 2025 Page 1 of 5 Call to Order 1.Roll call, recognition of visitors, and review of meeting instructions for effective Board interaction and public participation. Board President Bill Dixon presided over the meeting and called it to order at 6:03 pm. Roll call for members called. Bryan Jones and Sharon Denson were absent. Eryn McElroy was absent at the beginning of meeting but arrived later during the closed session at approximately 6:25 pm. 2.SEDC Board Member Oath of Office for appointment to the Schertz Economic Development Board by the Schertz City Council on 10/14/2025. (S. Courney) John Faubush, III, Term Ending 9/30/27 Board President Bill Dixon welcomed newest Board Member John Faubush III. Appointed on October 14, 2025 by City Council to fill Mark Moody's vacant seat. Mr. Faubush was officially sworn in earlier in the day, October 23, 2025, by the City Secretary. Mr. Faubush joined the meeting as a voting member and provided brief background information about his professional experience and connection to the community. Hearing of Residents This time is set aside for any person who wishes to address the Board. Presentations should be limited to no more than 3 minutes. The presiding officer will call on those persons who have signed up to speak. No residents signed up to speak. No comments were made. Consent Agenda 3.Approval of the Minutes for the Board of Directors Regular Monthly Meeting held September 25, 2025. Board President Bill Dixon asked for a motion to approve the consent agenda for September 23, 2025. Ray Chavez moved to approve, Matt Clingo seconded. Motion carries, unanimous; 4-0. SEDC Agenda October 23, 2025 Page 2 of 5 Discussion Only 4.Presentation and discussion regarding the SEDC monthly financial statement for the month of September 2025. (S.Wayman) Executive Director Scott Wayman provided an overview of the September 2025 Financial Statement. Sales tax revenue received for the month totaled $1,215,649.72, representing a 105.85% increase over the same period in the prior year. Total expenses for September were $86,179.25, with the primary expenditure being $77,050 for the Las P Schertz waterline project. Mr. Wayman noted that sales tax collections have remained significantly elevated over recent months, compared to the typical expected average of approximately $600,000 per month. The current 12-month rolling average growth rate is 46.9%. He also provided a brief update on the status and performance of the SEDC Reserve Fund Model. No questions or comments from the Board regarding SEDC financial presentation. Discussion and Possible Action 5.Resolution 2025-8- Authorizing the City of Schertz Economic Development Corporation Executive Director to execute a First Amendment to the PV Schertz, LLC. Performance Agreement for purposes of expanding the scope of work and potential incentives for infrastructure improvements in the City of Schertz. (S. Wayman) Board President Bill Dixon deferred action on Item No. 5: Resolution 2025-8 and recessed Open Session to Closed Session at 6:13 pm. Closed Session 6.Called in accordance with Section 551.087 of the Texas Government Code, Deliberation Regarding Economic Development Negotiations; Closed Meeting. The governmental body is not required to conduct an open meeting (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect. E-107 E-110 Start time: 6:13 pm Eryn McElroy arrived at meeting during the closed session at approximately 6:25 pm. End time: 6:54 pm Board President Bill Dixon reconvened into Open Session at 6:55 pm. SEDC Agenda October 23, 2025 Page 3 of 5 Reconvene to Regular Session Board President Bill Dixon reconvenes into regular session at 6:55 pm. 7.Take any actions based on discussion held in closed session under Agenda Item No. 5. Board President Bill Dixon returned to Item No. 5 Resolution 2025-8 and requested a motion. Ray Chavez motioned to approve, Matt Clingo seconded. Motion carries unanimously; 5-0. Requests and Announcements Announcements by staff. Requests by Board Members to place items on a future SEDC Board Meeting agenda. Next meeting scheduled for November 20, 2025. No Meeting in December; Plans for Holiday forthcoming. Executive Director Scott Wayman reported the passing of City Councilman, Tim Brown, noting his longstanding dedication to the Schertz EDC. Mr. Brown was one of the original EDC Board members and most recently served as the City Council Liaison to the Board. Mr. Wayman recognized his significant contributions and steadfast support for the EDC and the Schertz community. Mr. Wayman announced the date for next SEDC Board meeting on November 20, 2025. Business Engagement Manager Ashley Ritchey reported that the Schertz Economic Development Corporation has been honored with an Economic Excellence Award. The organization received a Gold Award in the Print Promotion category for communities with populations between 25,000 and 200,000. The award recognizes the Workforce Resource Manual developed by Ms. Ritchey, which serves as a comprehensive guide for local employers by outlining regional, state, and federal workforce development resources and assistance programs. Administrative Assistant, Kari Baker announced the Holiday Party at Makos on the Creek is scheduled for December 18, 2025 at 6:30 pm. An email with RSVP details will be going out to all Board members in the upcoming day or two. Deputy Director Amy Madison shared that she has been selected by the International Economic Development Council (IEDC) to represent the organization at the American Competitiveness Exchange in Córdoba, Argentina. The Exchange brings together 50 delegates from around the world for an immersive experience focused on learning about local industries, fostering international collaboration, and highlighting innovative economic development initiatives. Ms. Madison looks forward to bringing back valuable insights and new partnership opportunities to support Schertz and the region. She will participate in the program from October 31 through November 8, 2025. Adjournment SEDC Agenda October 23, 2025 Page 4 of 5 Adjournment Board President Bill Dixon adjourned the meeting at 7:02 pm. MINUTES PASSED AND APPROVED THIS 20 DAY OF NOVEMBER 2025. ______________________________________ Bill Dixon, Board President _______________________________________ Bryan Jones, Board Secretary SEDC Agenda October 23, 2025 Page 5 of 5 DRAFT – Subject to final review and possible revision. October 6, 2025 City of Schertz Mr. Scott Wayman Executive Director – Economic Development Corporation 1400 Schertz Parkway Schertz, Texas 78154 Re: Market Study of Proposed Dual-Brand Hotel – Schertz, Texas Mr. Wayman: We have completed our analysis of the hotel market in Schertz, Texas and the addition of a dual-brand hotel (the “Subject”) with approximately 120 units. The conclusions reached are based upon our present knowledge of the competitive market area resulting from our fieldwork completed on August 14, 2025. As in all studies of this type, the estimated results are based upon competent and efficient management and presume no significant change in the competitive position of the hotels from that as set forth in this report. The terms of our engagement are such that we have no obligation to revise this report to reflect events or conditions that occur subsequent to the date of the completion of our fieldwork. The estimates of property performance are based on an evaluation of the present general level of the area's economy and make no provision for the effect of any sharp rise or decline in local or general economic conditions. In summary, it is our opinion that there will likely be market justification for developing a dual-brand hotel with approximately 120 guestrooms, as described in this report. Our conclusions for the proposed hotel are summarized as follows: 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Performance Summary 2028 2029 2030 Units 120 120 120 Stabilized Occupancy 71%74%77% Average Daily Rate $148.50 $153.00 $157.75 Rooms Revenue $4,618,000 $4,959,000 $5,321,000 Net Operating Income $1,684,000 $1,684,000 $1,840,000 Proposed Dual-Brand Hotel Page 2 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. Economic Summary Schertz is a city in Guadalupe, Bexar, and Comal counties in the State of Texas, within the San Antonio–New Braunfels metropolitan area (or Greater San Antonio). It is a fast-growing community located in the northeast corner of San Antonio, adjacent to Randolph Air Force Base and has frontage to both the I-35 and I-10 corridors. The city’s convenient access to San Antonio (16 miles), Austin (60 miles), and Houston (175 miles) has fueled its recent growth. Schertz has a population of nearly 44,000, showing significant growth from 42,002 in 2020, and 31,874 in 2010. Being close to bigger cities such as San Antonio, New Braunfels, and San Marcos, population jumps to over 781,000 within a 30-minute drive. Schertz residents have a median household income of over $102,000, which is significantly higher than that of the Greater San Antonio area at $73,000. Schertz is only 16 miles from the San Antonio International Airport (SAT). SAT served more than 11 million passengers in 2024, beating the previous record by nearly 4% set in 2023. As of July 2025, SAT has 10 airlines providing flights to 37 non-stop domestic destinations and 6 airlines flying to 6 international destinations (all in Mexico). SAT is undergoing an expansion plan called Elevate/SAT, which includes improvements to facilities and runways and the development of a world-class terminal complex. Major Industries and Employers Schertz has been attracting businesses of all sizes because of its strategic location, business-friendly policies, investment in infrastructure and utilities, available land, and a work-ready workforce. As shown in the nearby table, Schertz’s major employers, which all generate lodging demand in varying degrees. The list of major employers further shows that Schertz has a diverse economy, featuring a mix of manufacturing, distribution, retail, healthcare, and corporate/regional offices. According to Schertz Economic Development Corporation (Schertz EDC), the three key industries are: manufacturing, distribution, and retail. Manufacturing has been a booming sector in the Greater San Antonio region especially post-COVID, and Schertz both benefits from and contributes to the trend. There are at least 36 manufacturing companies located in Schertz, making everything from engine blocks to artisan cheeses. Manufacturers typically bring in executives, engineers, clients, and other personnels that would require lodging. Proposed Dual-Brand Hotel Page 3 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. Distribution is an increasingly important link in today’s consumer economy. Schertz’s strategic location makes it highly desirable for fulfilment centers, courier services, logistics services and more. There are over 77 distribution companies located in Schertz, handling everything from after-market auto parts to scholastic book fair materials. While retail is not always considered a major lodging demand generator, quality retail makes attractive amenities for both locals and travelers, therefore adding to the appeal of nearby hotels. In addition to major employers in Schertz, hotels in Schertz can also benefit from businesses in nearby communities such as Cibolo, Selma, Universal City, Live Oak, northeast San Antonio, and southwest New Braunfels. Randolph Air Force Base (Randolph AFB), which is minutes from Schertz, is home to more than 4,000 military members, 5,000 dependents, and 5,000 Department of Defense civilians. Randolph also attracts military and defense-related industries, benefiting surrounding communities including Schertz. Tourism Schertz is located between two of the most popular tourist destinations in Texas: San Antonio River Walk and New Braunfels. Hotel rooms in these destinations can become quite pricey during peak seasons, pushing budget-conscious travelers to stay farther away. Schertz is also less than 10 miles south of the Natural Bridge Caverns, the largest commercially-operated caverns in Texas and a popular tourist attraction. Locally, the Schertz Soccer Complex features 12 full-sized, lighted soccer fields that serves the area’s youth and adult soccer leagues. Schertz Youth Soccer Alliance is a partnership between Greater Randolph Area Youth Soccer Association, Lions FC Soccer Club, Schertz Family YMCA, and the City of Schertz to manage and maintain Major Employers - Schertz, TX Employer Industry / Product Employees SCUCISD Public Education 2,032 Amazon Warehouse 800 Sysco Central Texas Wholesale Food Distributor 800 Fed Ex Ground - Doerr Lane Courier Service 650 Republic National Distributing Company Wine Wholesaler and Importer 600 Brandt Companies (Southland Industries)MEP Contractor 500 City of Schertz Government 480 Visionworks Eyeglasses Manufacturing 403 Hollingsworth Logistics Logistics Service 400 H-E-B Grocery Store 350 Source: Schertz Economic Development Corporation, 2024 Proposed Dual-Brand Hotel Page 4 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. the Schertz Soccer Fields. The three organization serve over 1,300 youth players annually from Guadalupe, Bexar, Comal and surrounding counties. Sports tournaments can generate lodging demand as out-of-town players, coaches, friends and families frequently stay in hotels near the fields. New Developments Several new developments are underway in Schertz, indicating a growing economy. These developments will likely generate more lodging demand as well as make Schertz a more attractive lodging alternative compared to nearby cities. Schertz Station is a 72-acre mixed-use development located at I-35 and Cibolo Valley Drive, a high-growth corridor with 151,180 vehicles per day. Anchored by EVO Entertainment, this project offers a prime retail and commercial destination with multi-tenant spaces, pad sites, and single-family rental units in an area experiencing rapid economic and residential expansion. Confirmed tenants include major national brands such as Home Depot, Panera Bread (opening soon), Portillo’s, Hopdoddy, CAVA, Dave’s Hot Chicken, Chipotle, Smoothie King, and more are expected to join. Behind Schertz Station is a build-to-rent community named Collection Schertz Station, featuring cottage-style townhome apartments and a wide variety of luxurious community amenities. This development is only a 15-minute drive from downtown New Braunfels. Cibolo Crossing is a similar mixed-use development that neighbors Schertz Station, only it sits inside the city limits of Cibolo. This 116-acre development is anchored by the Santikos Theater & Entertainment Center and the furniture store Living Spaces. Although technically located in a different city, the plethora of amenities will still benefit the proposed dual-brand hotel based on its proximity to Cibolo Crossing. Schertz 35 Industrial Park is a brand-new Class A industrial development north of I- 35 near FM 3009. This 312-acre industrial park provides options for tenant leasing, build-to-suit or land purchase for an estimated total 3.5 million square feet of industrial flex. Schertz 35 is one of the only shovel-ready lots in the San Antonio MSA that can accommodate a million-square-foot facility. Park 35 is a brand-new Class A industrial park located on southbound I-35 between Wiederstein and Schwab Roads. Featuring 1.4 million square feet of industrial warehouse space on 119 acres, this 6-building park provides a range of options for tenants and buyers seeking modern industrial space. Each building features 32- to 36-foot clear heights, 60-foot speed bays, ESFR sprinkler systems, and both cross-dock and real-load configurations to accommodate a variety of logistical and assembly needs. Core 5 Logistics Center at Interstate 10 is located at I-10 and North Loop 1604 East along the transportation corridor. The facility offers building features like cross-dock Proposed Dual-Brand Hotel Page 5 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. capability and single-loaded spaces, 596 parking spaces with 221 trailer spots, along with a 36-foot clear height for maximum storage capability in Phase I of the project. Project Description Proposed Site The proposed hotel site is 6.08 acres located right off of I-35 North, adjacent to the new Schertz Station development. As shown in the following map, the proposed site will be surrounded by attractive amenities such as restaurants and retail (part of Schertz Station) and EVO Entertainment, as well as Collection Schertz Station, an upscale single-family rental community. That the site is slightly over-sized for a single hotel adds to its value. We envision a prudent developer subdividing the site to allow for a free-standing restaurant. The sale of a restaurant site would lower the basis in the land for the hotel, the analysis for which is presented in Exhibit D. We noted the adjacent flea market and do not think it will be there forever as freeway sites become scarce and assessed values increase. We further noted the topographical challenges of the proposed hotel site and have no opinion on the costs to make it suitable for development. The following maps show the general location of the proposed hotel site and the locations of the major employers and destinations serving Schertz. Proposed Dual-Brand Hotel Page 6 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. Proposed Dual-Brand Hotel Page 7 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. Proposed Hotel Our recommendation calls for a dual-brand hotel with approximately 120 units to be built on the site. Dual-brand hotels are popular among developers and operators because they can capture a wider range of travelers, are more efficient to build and operate, and can eliminate a potential future competitor by occupying two brands in one building. The most common and logical pairing is a compact full-service hotel brand combined with an extended-stay hotel brand of the same brand family. Based on the demand and brand availability, we recommend any of the following brand combinations, in no particular order: • Hyatt Place and Hyatt House or Hyatt Studios: Hyatt Place is an upscale select- service brand that is a direct competitor with brands like Hilton Garden Inn and Courtyard by Marriott. Hyatt House is an upscale extended-stay brand with larger suite-style rooms, including full or partial kitchens, complimentary hot breakfast, and an H Bar. Hyatt Studios is a newer, more affordable (upper-midscale) option that also focuses on longer stays, but with a more self-service model that includes complimentary grab-and-go breakfast, a 24/7 market, and a focus on in-room conveniences rather than and on-site restaurant. The Hyatt brands are currently not present in the Schertz/Selma/Live Oak market. • Courtyard and Residence Inn by Marriott: This combination is comparable to Hyatt Place and Hyatt House since they are all upscale brands and target similar travelers. The more affordable extended-stay option in the Marriott family, TownePlace Suites, is already represented in the market. • A suitable combination in the Hilton family would be Hilton Garden Inn and Homewood Suites or Home2 Suites. However, since the closest Hilton Garden Inn is only 6.5 miles away in Live Oak, it is unlikely that a new one would be permitted at the proposed site in Schertz. • Both extended-stay brands by IHG, namely Staybridge Suites and Candlewood Suites, are already represented in Schertz. The Staybridge Suites is currently the market leader in terms of RevPAR (Revenue per Available Room), which indicates the market is ready for upscale extended-stay accommodations. The proposed dual-brand hotel will have prototypical features required by the brand, which will likely include the following: • An activated, multi-functional lobby with amenities such as guest reception, sundry market, bar/lounge, and a communal area for working, meeting, socializing, and relaxing. • Well-appointed rooms and suites with a multi-function task table, thoughtfully placed power outlets, HDTV, in-room movie channels, and free Wi-Fi. The extended-stay side of the hotel will have a fully equipped kitchen in each guestroom. Proposed Dual-Brand Hotel Page 8 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. • A fully equipped fitness room, business center, a swimming pool, and an outdoor patio for social gatherings. • Up to 2,000 square feet of meeting space, ideally accommodating 125 people in a classroom setting, or 100 people for a catered banquet event. Summary of Hotel Market Supply We identified 9 hotels having 892 guestrooms as being competitive in varying degrees with the proposed dual-brand hotel (Subject). These are all nationally branded hotels of similar service levels located in the Schertz/Selma/Live Oak area. Upon opening of the Subject, the competitive set will comprise 10 hotels with 1,012 guestrooms. A summary listing of the competitive hotels is provided in the following table, and more detailed information is provided in Exhibit A, such the age for each property, which averages 12 years. The map that follows shows locations of the Proposed Site (A) and each of the competitive hotels. SUMMARY OF COMPETITIVE HOTELS Schertz/Selma/Live Oak, TX Properties Rooms Year Opened Affiliation Property Type Miles from Subject 1 Hampton Inn & Suites Schertz 98 2005 Hilton Limited Service 1.4 2 Fairfield Inn & Suites San Antonio NE/Schertz 117 2009 Marriott Limited Service 1.5 3 La Quinta Inn & Suites by Wyndham Schertz 81 2009 Wyndham Limited Service 2.0 4 Candlewood Suites San Antonio - Schertz 80 Nov 2020 IHG Extended Stay 3.0 5 Staybridge Suites San Antonio - Schertz 97 Apr 2019 IHG Extended Stay 2.6 6 TownePlace Suites San Antonio Universal City/Live Oak 112 Apr 2022 Marriott Extended Stay 4.1 7 Holiday Inn Express & Suites Selma 84 2007 IHG Limited Service 4.4 8 Hampton by Hilton Inn & Suites Selma-San Antonio-Randolph AFB 85 2012 Hilton Limited Service 5.3 9 Hilton Garden Inn San Antonio Live Oak Conference Center 138 2016 Hilton Select Service 6.5 New Hotels A Subject - Proposed Dual-Brand Hotel 120 2028 TBD Select Service + Extended Stay -- Total Hotel Rooms 1,012 Proposed Dual-Brand Hotel Page 9 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. Five of the nine competitive hotels are located in Schertz, of which three are limited-service hotels and two are extended-stay hotels. The limited-service hotels, namely the 98-unit Hampton Inn & Suites Schertz (1) built in 2005, the 117- unit Fairfield Inn & Suites San Antonio NE/Schertz (2) built in 2009, and the 81- unit La Quinta Inn & Suites by Wyndham Schertz (3) built in 2009, all feature similar amenities including complimentary breakfast, outdoor swimming pool, fitness center, laundry facilities, business center, and moderate meeting space (all under 1,400 square feet). All three hotels look slightly outdated due to their age. Proposed Dual-Brand Hotel Page 10 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. The extended-stay hotels, namely the 80-unit Candlewood Suites San Antonio Schertz (4) built in 2020, and the 97-unit Staybridge Suites San Antonio- Schertz (5) built in 2019, are both IHG brands that are popular among travelers staying for an extended period of time, and families seeking more space and a full kitchen. Both hotels feature modern furnishes, all-suite guestrooms, full kitchens, a guest laundry, business center, fitness center, outdoor pool, BBQ grills, and some meeting space. Staybridge, being the more upscale brand, has larger residential-style suites, free breakfast, free evening socials Monday through Wednesday, and premium amenities. Three of the competitive hotels are located in Selma. The 112-unit TownePlace Suites San Antonio Universal City/Live Oak (6) opened in 2022, making it the newest hotel in the competitive set. Sitting in between Staybridge and Candlewood in terms of amenities, this TownePlace has a mixture of studio and one-bedroom suites, free breakfast but no evening socials. It does have a lobby bar, and all the other normal amenities, but no meeting space. The 84-unit Holiday Inn Express & Suites Selma (7) built in 2007 and the 85-unit Hampton by Hilton Inn & suites Selma-San Antonio-Randolph AFB (8) built in 2012 are in every way comparable to the three limited-service hotels in Schertz. Proposed Dual-Brand Hotel Page 11 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. The 138-room Hilton Garden Inn San Antonio Live Oak Conference Center (9) is the largest and the only select-service hotel in the competitive set. Built in 2016, this hotel features a conference center with 8,201 square feet of meeting space, making it the only hotel option in the area that can accommodate bigger groups and events. This hotel also has a full-service on- site restaurant, which sets it apart from the limited-service hotels. Non-competitive Hotels We noted a number of economy hotels with weaker brands and accumulated differed maintenance that were performing well below the average of the competitive set. As such, we excluded them from the competitive analysis. It is important to note, however, that they are likely accommodating guests during peak periods who would prefer to stay in the competitive hotels. Therefore, as supply increases within the competitive set, demand will also increase at the expense of the non-competitive hotels. New Supply In addition to the proposed dual-brand hotel, a hotel site is planned as part of the Cibolo Crossing development. However, since there is no evidence of active development effort, a hotel is unlikely to open before 2028. In the event that additional hotels do open at Cibolo Crossing or elsewhere in the market, the projections that follow could be affected. Sources of Market Demand Through our research of the competitive set and our observations of hotel operations in the market, we were able to develop the following analysis that quantifies the primary sources of demand for the competitive set. We further noted the present mix of market demand as compared to its ratio prior to the pandemic. Demand Segments 2019 Individual Business Traveler 85,600 50%103,700 45% Group 17,100 10%23,100 10% Leisure Traveler 68,500 40%103,700 45% Total Occupied Room Nights 171,200 100%230,500 100% Market Mix - Annual Room Nights of Demand 2025 Proposed Dual-Brand Hotel Page 12 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. The competitive hotels classified as much as 50% of their demand as Individual Business Travelers (IBT), but that has shifted to 45% as video conferencing has replaced some of the need for an in-person visit, such as when area companies bring employees, vendors, and customers in for trainings and product demonstrations. What remains strong is companies bringing in temporary workers to complete construction projects and hardware upgrades. Other sources of IBT occur when area companies bring in candidates for job openings, which may also trigger the need for temporary housing as jobs are filled by relocation. As most hotels in the competitive set have limited meeting space, their Group and Convention demand mostly includes social gatherings, with the exception of the Hilton Garden Inn. In totality, group and convention demand represents approximately 10% of the demand accommodated by the competitive hotels. Leisure demand for the competitive hotels has grown to replace the loss of IBT and now represents approximately 45% of their occupied room nights and primarily occurs on weekends and during spring break and the summer months. Leisure travel to the competitive set also includes those attending sports tournaments and local events, which occur all year long. Competitive Set Historical Performance DPC Hospitality assembled occupancy and ADR (Average Daily Rate) information for the competitive set for year-end 2019 through summer of 2025. During this time, the market supply increased from 635 guestrooms to 892, marking a 5.8% rate of increase per year. Meanwhile, demand increased at 4.5% per year. Whenever supply outpaces demand, occupancy will decrease until demand catches back up, which we expect will happen again just as it has happened in the past. The market’s occupancy finished 2019 at 73.8%. As the COVID-19 pandemic impacted the hospitality industry disproportionally in 2020, the competitive hotels had a fairly moderate dip that bottomed out at 51.0%. Supply also decreased slightly in 2020 as some hotels reduced their room count for a few months. This competitive set became the beneficiary of a national trend in 2021 that has since been coined as “revenge travel” following the pandemic. 2021 saw increases to both supply and demand and achieved a record high occupancy of 75.9%. As revenge travel subsided and the last increase to supply was recorded (TownePlace 2022), occupancy retreated to normalization of +/- 70%. Occupancy retreated further thus far into 2025 as a result of federal spending reductions, international tariff increases, and at the time of this report, a temporary federal budget shut down. As previously witnessed during the recovery following the pandemic, revenge travel could once again jumpstart travel. Proposed Dual-Brand Hotel Page 13 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. The following bar charts are graphical displays of this information expressed monthly to show the seasonality in the market and year-over-year trending. Interestingly, there is moderate seasonality in this market, other than the rise in occupancy in during spring break and the trough in September when schools resume. While occupancy was highest in 2021, the actual occupied room nights were highest in 2024. Thus far in 2025, the occupied room nights are similar to levels seen in 2021 to 2023, which further indicates the new normal is well above 2019, and that future years will likely exceed 2024 as the economy rebounds. Room pricing follows a similar trend with the highest rates occurring during Spring Break and the lowest occurring in September, but overall, ADR’s fluctuate very little in this market. HISTORICAL MARKET CONDITIONS - ANNUAL ROOM NIGHTS Competitive Hotels - Schertz / Selma TX 2019 2020 2021 2022 2023 2024 2025 *CAC** Supply - Guestrooms 635 609 733 864 892 892 892 Annual Rooms Nights (x 365)231,866 222,317 267,528 315,500 325,580 325,580 325,580 5.8% Demand IBT 85,600 34,000 71,100 89,200 101,400 103,700 100,100 2.6% Group 17,100 11,300 20,300 22,300 22,500 23,100 22,200 4.4% Leisure 68,500 68,000 111,700 111,500 101,400 103,700 100,100 6.5% Total Occupied Room Nights 171,200 113,300 203,100 223,000 225,300 230,500 222,400 4.5% Occupancy 73.8%51.0%75.9%70.7%69.2%70.8%68.3% Average Daily Rate $103.81 $91.05 $104.72 $114.74 $116.85 $117.47 $115.80 1.8% Revenue per Available Room $76.65 $46.40 $79.50 $81.10 $80.86 $83.16 $79.10 0.5% Change in Supply -- -4.1%20.3%17.9%3.2%0.0%0.0% Change in Demand -- -33.8%79.3%9.8%1.0%2.3%-3.5% *T-12 Ended July 2025, **Compounded annual change 0 5,000 10,000 15,000 20,000 25,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Schertz / Selma / Live Oak Market Total Occupied Room Nights 2019 2020 2021 2022 2023 2024 2025 Proposed Dual-Brand Hotel Page 14 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. Future Estimated Market Supply and Demand Our analysis of future supply is based on the addition of the Subject with 120 guestrooms, likely coming online in 2028. This will bring the market supply to 1,012 available guestrooms, which calculates to a 2.1% per year increase when expressed as a compound average between 2024 and 2030. A slowdown in supply increases will eventually prove advantageous to developers underwriting projects in the years to come. In the previous table, we estimate increases to Base demand as a compound annual change (CAC) that reflects the external changes in the market if no other hotels were built. The rates we used were 0% in 2026, followed by a revenge travel burst of 4% $0 $20 $40 $60 $80 $100 $120 $140 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Schertz / Selma / Live Oak Market Average Daily Rate 2019 2020 2021 2022 2023 2024 2025 FUTURE MARKET CONDITIONS - ANNUAL ROOM NIGHTS Competitive Hotels - Schertz / Selma TX 2024 2025 2026 2027 2028 2029 2030 CAC* Supply - Guestrooms 892 892 892 892 1,012 1,012 1,012 Annual Rooms Nights (x 365)325,580 325,580 325,580 325,580 369,380 369,380 369,380 2.1% Demand IBT - Base 103,700 100,100 100,100 104,100 106,200 108,300 110,500 1.1% IBT - Created - - - - 7,900 9,900 9,900 -- IBT - Total 103,700 100,100 100,100 104,100 114,100 118,200 120,400 2.5% Group - Base 23,100 22,200 22,200 23,100 23,600 24,100 24,600 1.1% Group - Created - - - - 1,800 2,200 2,200 -- Group - Total 23,100 22,200 22,200 23,100 25,400 26,300 26,800 2.5% Leisure - Base 103,700 100,100 100,100 104,100 106,200 108,300 110,500 1.1% Leisure - Created - - - - 7,900 9,900 9,900 -- Leisure - Total 103,700 100,100 100,100 104,100 114,100 118,200 120,400 2.5% Total Occupied Room Nights 230,500 222,400 222,400 231,300 253,600 262,700 267,600 2.5% Occupancy 70.8%68.3%68.3%71.0%68.7%71.1%72.4% Change in Supply 0.0%0.0%0.0%0.0%13.5%0.0%0.0% Change in Demand 2.3%-3.5%0.0%4.0%9.6%3.6%1.9% *Compounded annual change Proposed Dual-Brand Hotel Page 15 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. in 2027, then followed by 2% per year thereafter. We applied this equally to each of the demand segments. When the Subject opens, some of their rooms will be filled with guests trading up to the newest hotel in the market, which will make room for guests that were previously displaced to non-competitive hotels during peak periods. We reflect this as an estimate to Created demand. More specifically, we increased demand by 50% of the new supply created by the Subject in the years following its opening in 2028. We further allocated the created demand in the same ratio as the existing market segmentation. The result of our projections show occupancy staying in the high 60’s for 2025 and 2026, and oscillating between the high 60’s and low 70’s for the foreseeable future. Estimated Penetration of the Proposed Hotel The following table displays the room nights sold in the market, the fair share of room nights that could be occupied in the proposed Subject hotel, and our adjustments to its fair share based on its competitive advantages, shown as Estimated Market Penetration. A market penetration above 100% indicates a property is getting more than its fair share. Likewise, a penetration below 100% indicates below average performance. We project the proposed Subject hotel as a brand-new, dual-branded hotel, will be most popular among IBT and Leisure travelers. The resulting occupancy for the proposed hotel is calculated in the following table as finishing its first year at 71% and stabilizing at 77% in 2030 at approximately 106% of its fair share. In estimating the Average Daily Rate (ADR), we gathered rack rates for each property of the competitive set, which is presented in Exhibit A. Based on our observations of the market, we estimated the average rate anticipated for each demand segment, as shown in the previous table. Leisure travelers, for example, will pay the highest rate Proposed Dual Brand Hotel - 120 Rooms Estimated Average Market Market Room Rate Year Segment Demand Percent Demand Percent Demand Market Subject Constant $ IBT 114,100 13,530 100%13,500 130.00 Group 25,400 3,012 85%2,600 115.00 Leisure 114,100 13,530 110%14,900 145.00 Total 253,600 30,071 103%31,000 68.7%71%135.95 IBT 118,200 14,016 100%14,000 130.00 Group 26,300 3,119 90%2,800 115.00 Leisure 118,200 14,016 110%15,400 145.00 Total 262,700 31,150 103%32,200 71.1%74%135.87 IBT 120,400 14,277 105%15,000 130.00 Group 26,800 3,178 95%3,000 115.00 Leisure 120,400 14,277 110%15,700 145.00 Total 267,600 31,731 106%33,700 72.4%77%135.65 1 Fair Market Share = 120 Rooms (Subject) divided by 1,012 Rooms (in the Market in 2028) = 11.9% 2 Subject penetration into Market above 100% indicates Subject has competitive advantages. 11.9% 11.9% 2028 2029 2030 Estimated Fair Market Share 1 Market Penetration 2 Occupancy 11.9% Proposed Dual-Brand Hotel Page 16 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. because they tend to travel during peak periods. Conversely, Group travelers will pay the least because they book well in advance and often enjoy negotiated discounts even though they create peak periods when they come. IBT travelers will lie in between, benefitting from negotiated rates for committing to higher volumes. The preceding table calculates a weighted average based on our analysis stated in 2025 dollars. The following table uses an inflation rate of 4.0% per year to determine the ADR in future dollars and the resulting rooms revenue. Financial Pro Forma Exhibit B, located in the Addendum, summarizes our departmental operating expenses for the proposed Subject hotel. In preparing this analysis, we consulted expense ratios for limited-service hotels with average daily rates between $100 and $150, as found in the 2024 USA Edition of Trends in the Hotel Industry by CBRE Hotels. The data presented by CBRE Hotels was compiled from 2023 year-end financial statements and is expressed in ratios to total revenue as well as dollars per available room. Exhibit B is expressed in 2024 dollars based on the stabilized occupancy that is estimated for the proposed Subject hotel in 2030. Of particular note is the absence of food and beverage data in the CBRE Sample. As our recommendations call for the proposed Subject hotel to have limited bar service and occasional catering in its meeting space, we added departmental revenue and expense for these items. Also of note are the differences in ADR of the CBRE sample and our estimates for the Subject. As our estimates for the Subject ADR are higher, so will be the resulting estimates for NOI, 29.0% versus 24.0%. This is because more of rooms revenue flows through to NOI to overcome undistributed and non-operating expenses. Exhibits C-1 and C-2 restate these stabilized estimates into stated year (inflated) dollars starting 2028 to 2037, making assumptions for operational inefficiencies that result from the early years when the hotel operates below the stabilized occupancy. The following table is stated using inflated dollars and summarizes all the analysis contained herein. To reflect recent trends of inflation, our forecast is based on a general inflation rate of 3%. Average Daily Rate and Rooms Revenues Fiscal Average Daily Rate Year 2025 Dollars Inflated Dollars 2028 71%$136.00 $148.50 $4,618,000 2029 74%$136.00 $153.00 $4,959,000 2030 77%$136.00 $157.75 $5,321,000 Rooms RevenueOccupancy Proposed Dual-Brand Hotel Page 17 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. Exhibit D – Return on Investment This analysis looks at the whole life of the investment, from construction to operation and a future sale. As a placeholder in our analysis, we estimated the all-in cost of the proposed Subject hotel to be $180,000 per key, or $21.6 million. This includes the initial purchase of a 7.0 acre site for $5.60 per square foot, or $1.8 million. As mentioned previously, the proposed site is oversized for the needs of the hotel, which leaves an estimated 2.0 acres for development of a table-service restaurant/bar. We estimate the sale of a development-ready restaurant pad site in front of a planned hotel to be $16 per square foot, which will reduce the basis in the hotel site by $1.4 million. As a placeholder in our analysis, we show the sale of the restaurant pad site as a distribution to the investors during the construction phase. We allocated the capital costs between debt and equity based on a loan-to-costs ratio of 65%, which means the hotel requires $7.6 million in equity and will service a loan of $14.0 million on a 25-year amortization schedule at an estimated 6.5% interest rate. While the annual debt service could be above $1.1 million, construction loans frequently are interest-only during the first operating year, which would be $910,000. An important metric to follow when underwriting a hotel project is the Debt Coverage Ratio, which needs to stay well above 1.40 for the life of the loan. For the Subject, the DCR begins at 1.85 during the interest only period, but drops to 1.48 once amortization kicks in. If the Rebate of City HOT were included, the DCR remains well above the required threshold at 1.79 and above. We have also assumed the project will be awarded a rebate of the Hotel Occupancy Tax (HOT) collected by the City for seven years. This is calculated as 7% of the Rooms Revenue collected from guests and normally paid to the City. As an incentive for developing an institutional-grade hotel in Schertz, the City could grant such as rebate that would be codified in a Section 380-agreement. During the holding period we added the HOT Rebate to NOI and deducted the debt service to calculate potential distributions to investors, which estimated the cash on cash returns in a given year between 12% and 15% during the holding period. By Summary Income Statement - Inflated Dallars 2028 2029 2030 2031 Occupancy 71%74%77%77% Average Daily Rate *$148.50 $153.00 $157.75 $162.50 Rooms Revenue 4,618,000 4,959,000 5,321,000 5,481,000 Other Income 510,000 547,000 587,000 604,000 Total Revenues 5,128,000 5,506,000 5,908,000 6,085,000 Departmental Expenses 1,423,000 1,498,000 1,576,000 1,623,000 Undistributed Expenses 1,483,000 1,579,000 1,655,000 1,704,000 Other Fixed Expenses 435,000 580,000 601,000 615,000 Reserve for Replacement 103,000 165,000 236,000 243,000 Net Operating Income 1,684,000 1,684,000 1,840,000 1,900,000 NOI as % of Total Revenue 32.8%30.6%31.1%31.2% Proposed Dual-Brand Hotel Page 18 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. selling the excess land during the construction period, the investors could see a one- time cash on cash benefit of 18% in 2027. Because an Internal Rate of Return (IRR) is an expression of equity return over the life of the investment, our analysis shows a reversion, or a hypothetical sale of the asset in Year 5. Exhibit D calculates the potential sales value based on a theoretical cap rate of 7.75% on NOI of the last year of the holding period. The IRR is then calculated over the life of the investment showing cash being invested in 2026 prior to the start of construction, the sale of the restaurant pad site in 2027, distributions being paid starting in 2028 once the hotel has been open for a year, and the hotel being sold in 2032 to calculate the final distribution. This analysis is based on inflated dollars (at 3.0% per year) and the occupancy estimates derived in this report. Using these assumptions, the levered internal rate of return (IRR) is calculated to be 20.6% on the five-year hold. Without the HOT Rebate, the IRR drops to 17.4%. The target metric in hotel underwriting is an IRR above 20%. Limiting Conditions The conclusions in this report are based upon review of published information and information provided by the general managers and/or owners at the competing hotels and an analysis of historical market area data. The report is based on estimates, assumptions, and other information developed from our analysis of the local hotel market area and characteristics of the proposed property. Since the projections in this letter are based upon estimates and assumptions, which inherently are subject to uncertainty and variation depending upon evolving events, we do not represent them as results that will actually be achieved. WE MADE NO ATTEMPT TO CERTIFY THE ESTIMATES OF PROJECT COSTS AND HAVE NO OPINION ON THEIR VALIDITY. IN ORDER TO RELY ON THE RESULTING ESTIMATES OF CASH ON CASH RETURN AND INTERNAL RATE OF RETURN, POTENTIAL INVESTORS MUST CONDUCT THEIR OWN INVESTIGATION AS TO THE RELIABILITY AND COMPLETENESS OF THE COSTS OF DEVELOPING THIS HOTEL. FURTHERMORE, THE TERMINAL CAP RATE WAS NOT DERIVED BY AN APPRAISAL OF RECENT MARKET SALES. A MARKET DERIVATION OF CAP RATES BY A CERTIFIED APPRAISER IS NEEDED IN ORDER TO ACCURATELY EXPRESS CERTIFIED VALUES. This report has been prepared primarily for your use and guidance in determining the risk in developing the proposed property. As is customary in assignments of this nature, neither our name nor the material submitted may be included in any prospectus, in newspaper publicity, or as part of any printed material; or used in public offerings or representations in connection with the sale of securities to the Proposed Dual-Brand Hotel Page 19 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. general public. You may, however, include this document in a private placement memorandum that is directed to qualified investors. DPC Hospitality – Qualifications DPC Hospitality is a hotel, tourism, and real estate-oriented consulting and advisory firm. We have developed a wide range of expertise that includes limited-service hotels, extended-stay hotels, convention and full-service hotels, and resorts. The principals of DPC Hospitality have completed over 500 hotel consulting and valuation assignments located across the United States. The President of DPC Hospitality, David Parker, has over 30 years of experience in the hotel industry, including more than 25 years in hotel consulting and development. Prior to forming DP Consulting in 2001, Mr. Parker was employed by PKF Consulting for nearly a decade, where he developed numerous methodologies for collecting market information on hotels and meeting facilities and developed multiple modeling techniques for projecting utilization, income, and expense. The company name was changed in 2018 to DPC Hospitality when Christian Abbate was added as a partner. Senior Vice President, Christian Abbate, has nearly 15 years of experience in the hospitality industry, including more than 10 years in hospitality advisory and consulting. Prior to joining DPC Hospitality, Mr. Abbate served nearly 11 years in various roles including Director at CBRE Hotels and Vice President at PKF Consulting. Mr. Abbate’s previous experience also includes management positions with Accor Hotels and Hilton Hotels. DPC Hospitality (rebranded from DP Consulting) has completed a variety of projects, a summary of which are listed in Exhibit E in the Addendum. We would be pleased to hear from you if we may be of further assistance in the interpretation and application of our findings and conclusions. We express our appreciation to you and your associates for the cooperation extended to us during the course of this assignment. Sincerely, David Parker Proposed Dual-Brand Hotel Page 20 Schertz, Texas October 6, 2025 DRAFT – Subject to final review and possible revision. Addendum Competitive Set Table – Exhibit A Financial Pro Forma – Stabilized Year – Exhibit B Financial Pro Forma – 2028 to 2037 – Exhibits C-1 and C-2 Return on Investment – Exhibits D Projects Completed by DPC Hospitality – Exhibit E SUMMARY OF COMPETITIVE HOTELS Schertz/Selma/Live Oak, TX +Exhibit A 2025/26 Rack Rates Meeting Space/ Weekday Weekend Peak Events Largest Space 1 Hampton Inn & Suites Schertz 650 sq. ft. 17702 I-35 N, Schertz, TX 78154 650 sq. ft. 2 Fairfield Inn & Suites San Antonio NE/Schertz 1,386 sq. ft. 5008 Corridor Loop Rd, Schertz, TX 78154 1,126 sq. ft. 3 La Quinta Inn & Suites by Wyndham Schertz 1,296 sq. ft. 17650 Four Oaks Ln, Schertz, TX 78154 1,296 sq. ft. 4 Candlewood Suites San Antonio - Schertz 260 sq. ft. 17145 N Interstate 35 Frontage Road, Schertz, TX 78154 260 sq. ft. 5 Staybridge Suites San Antonio - Schertz 1,300 sq. ft. 5601 Schertz Pkwy, Schertz, TX 78154 1,300 sq. ft. 6 TownePlace Suites San Antonio Universal City/Live Oak n/a 15510 I-35, Selma, TX 78154 n/a 7 Holiday Inn Express & Suites Selma 858 sq. ft. 15408 I-35 N #2, Selma, TX 78154 858 sq. ft. 8 Hampton by Hilton Inn & Suites Selma-San Antonio-Randolph AFB n/a 14655 I-35 N Access Road, Selma, TX 78154 n/a 9 Hilton Garden Inn San Antonio Live Oak Conference Center 8,201 sq. ft. 8101 Pat Booker Rd, Live Oak, TX 78233 8,201 sq. ft. Total Hotel Rooms - 2025 892 Avg Age: 12Yrs 2025 Market ADR: $115.82 / Market Occupancy: 68.3% New Hotels A Subject - Proposed Dual-Brand Hotel ~2,000 sq. ft. I-35 Adjacent to the Schertz Station Development ~2,000 sq. ft. Total Hotel Rooms - 2028 1,012 Compiled by: DPC Hospitality --n/a 1 Amenity Codes: FB - Food and Beverage Outlets, CB - Complimentary Breakfast, FK - Full Kitchen, WB - Wet Bar, SP - Swimming Pool, FC - Fitness Center, GL - Guest Laundry, MMS - Major Meeting Space, MR - Meeting Room. 120 2028 n/a n/a TBD Select Service + Extended Stay FB, CB, FK, SP, FC, GL, MR Select Service Properties Miles from Subject 98 2005 $102-$167 Year Opened 1.5 $133-$151 $108-$145 Marriott $101-$151 $116-$162 $169-$176 Hilton 112 FB, SP, FC, GL, MR CB, FK, SP, FC, GL CB, SP, FC, GL CB, SP, FC, GL, MR 2009 Nov 2020 Apr 2019 Apr 2022 $168-$182$146-$1167 $101-$119 $99-$153 Extended Stay Extended Stay Limited Service Hilton IHG $85-$148 $93-$143 CB, SP, FC, GL, MR1172009$101-$134 $155-$163 Marriott Limited Service $81-$105 2.0 CB, SP, FC, GL, MR $102-$139 Limited Service Amenities 1Rooms 1.4$174-$192$103-$171 Limited Service Affiliation Hilton CB, SP, FC, GL, MR Property Type CB, FK, SP, FC, GL, MR CB, FK, SP, FC, GL, MR Wyndham IHG 3.0 81 80 97 2.6 4.4 4.1Extended Stay $159-$167 $143-$152 IHG Limited Service $120-$135 $162-$171 138 $84-$122842007$85-$108 85 6.5 5.3 $108-$1159 $103-$150 $162-$246 2016 2012 Proposed Dual Brand Hotel - Schertz TX - 120 Rooms Exhibit B 11/4/25 Representative Year of Operation 3:01 PM CBRE Hotels Trends Stabilized Operating Year (2030) Limited-Service $100 to $150 Stated in 2025 Dollars Number of Units:105 120 Number of Annual Rooms Available:38,325 43,800 Number of Rooms Occupied:26,329 33,726 Annual Occupancy:68.7%77.0% Average Daily Rate:125.66 $136.00 Revenue Per Available Room:$86.33 $104.72 Ratio Per Room P.O.R.Amount Ratio Per Room P.O.R. Revenues Rooms 96.9%31,510 $125.66 $4,587,000 90.1%$38,225 $136.01 Food & Beverage 0.0%- - 236,000 4.6%1,967 7.00 Other Operated Departments 3.1%1,010 4.03 270,000 5.3%2,250 8.01 Total Operating Revenues 100.0%32,520 129.69 5,093,000 100.0%42,442 151.01 Departmental Expenses Rooms 29.1%9,160 36.53 1,113,000 24.3%9,275 33.00 Food & Beverage -- - 165,000 69.9%1,375 4.89 Other Operated Departments 26.3%266 1.06 81,000 30.0%675 2.40 Total Departmental Expenses 29.0%9,426 37.59 1,359,000 26.7%11,325 40.30 Departmental Profit 71.0%23,094 92.10 3,734,000 73.3%31,117 110.72 Undistributed Expenses Administrative & General 9.9%3,215 12.82 501,000 9.8%4,175 14.86 Sales and Marketing 13.8%4,477 17.85 516,000 10.1%4,300 15.30 Property Operation and Maintenance 5.2%1,701 6.78 192,000 3.8%1,600 5.69 Utilities 4.1%1,332 5.31 156,000 3.1%1,300 4.63 Information and Telecommunication Systems 1.7%564 2.25 62,000 1.2%517 1.84 Total Undistributed Operating Expenses 34.7%11,289 45.02 1,427,000 28.0%11,892 42.31 Gross Operating Profit 36.3%11,805 47.08 2,307,000 45.3%19,225 68.40 Non-Operating Income and Expenses Base Management Fee 3.2%1,033 4.12 153,000 3.0%1,275 4.54 Property Taxes 3.3%1,071 4.27 318,000 6.2%2,650 9.43 Insurance 1.8%589 2.35 54,000 1.1%450 1.60 Total Fixed Expenses 8.3%2,693 10.74 525,000 10.3%4,375 15.57 Net Operating Income 28.0%9,112 36.34 1,782,000 35.0%14,850 52.84 FF&E Reserve 4.0%1,301 5.19 204,000 4.0%1,700 6.05 Net Operating Income After Reserve 24.0%7,811 31.15 $1,578,000 31.0%$13,150 $46.79 Source: CBRE Hotels Estimated by DPC Hospitality DRAFT COPY - SUBJECT TO FINAL REVIEW v2 Confidential - For Discussion Purposes Only Proposed Dual Brand Hotel - Schertz TX - 120 Rooms Exhibit C-1 11/4/25 Projected Operating Results 3:01 PM Calendar Years 2028 2029 2030 2031 2032 Number of Units:120 120 120 120 120 Number of Annual Rooms Available:43,800 43,800 43,800 43,800 43,800 Number of Rooms Occupied:31,100 32,410 33,730 33,730 33,730 Annual Occupancy:71.0%74.0%77.0%77.0%77.0% Average Daily Rate:$148.50 $153.00 $157.75 $162.50 $167.25 Revenue Per Available Room:$105.44 $113.22 $121.47 $125.13 $128.78 Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio Revenues Rooms $4,618,000 90.1%$4,959,000 90.1%$5,321,000 90.1%$5,481,000 90.1%$5,641,000 90.1% Food & Beverage 238,000 4.6%255,000 4.6%274,000 4.6%282,000 4.6%290,000 4.6% Other Operated Departments 272,000 5.3%292,000 5.3%313,000 5.3%322,000 5.3%332,000 5.3% Total Operating Revenues 5,128,000 100.0%5,506,000 100.0%5,908,000 100.0%6,085,000 100.0%6,263,000 100.0% Departmental Expenses Rooms 1,169,000 25.3%1,228,000 24.8%1,290,000 24.2%1,329,000 24.2%1,369,000 24.3% Food & Beverage 172,000 72.3%182,000 71.4%192,000 70.1%197,000 69.9%203,000 70.0% Other Operated Departments 82,000 30.1%88,000 30.1%94,000 30.0%97,000 30.1%100,000 30.1% Total Departmental Expenses 1,423,000 27.7%1,498,000 27.2%1,576,000 26.7%1,623,000 26.7%1,672,000 26.7% Departmental Profit 3,705,000 72.3%4,008,000 72.8%4,332,000 73.3%4,462,000 73.3%4,591,000 73.3% Undistributed Expenses Administrative & General 505,000 9.8%548,000 10.0%581,000 9.8%598,000 9.8%616,000 9.8% Sales and Marketing 530,000 10.3%569,000 10.3%598,000 10.1%616,000 10.1%635,000 10.1% Property Operation and Maintenance 210,000 4.1%216,000 3.9%223,000 3.8%229,000 3.8%236,000 3.8% Utilities 170,000 3.3%176,000 3.2%181,000 3.1%186,000 3.1%192,000 3.1% Information and Telecommunication Systems 68,000 1.3%70,000 1.3%72,000 1.2%75,000 1.2%77,000 1.2% Total Undistributed Operating Expenses 1,483,000 28.9%1,579,000 28.7%1,655,000 28.0%1,704,000 28.0%1,756,000 28.0% Gross Operating Profit 2,222,000 43.3%2,429,000 44.1%2,677,000 45.3%2,758,000 45.3%2,835,000 45.3% Non-Operating Income and Expenses Base Management Fee 154,000 3.0%165,000 3.0%177,000 3.0%183,000 3.0%188,000 3.0% Property Taxes 222,000 4.3%354,000 6.4%361,000 6.1%368,000 6.0%376,000 6.0% Insurance 59,000 1.2%61,000 1.1%63,000 1.1%64,000 1.1%66,000 1.1% Total Fixed Expenses 435,000 8.5%580,000 10.5%601,000 10.2%615,000 10.1%630,000 10.1% Net Operating Income 1,787,000 34.8%1,849,000 33.6%2,076,000 35.1%2,143,000 35.2%2,205,000 35.2% FF&E Reserve 103,000 2.0%165,000 3.0%236,000 4.0%243,000 4.0%251,000 4.0% Net Operating Income After Reserve $1,684,000 32.8%$1,684,000 30.6%$1,840,000 31.1%$1,900,000 31.2%$1,954,000 31.2% DRAFT COPY - SUBJECT TO FINAL REVIEW v2 Confidential - For Discussion Purposes Only Full Year of Operation Proposed Dual Brand Hotel - Schertz TX - 120 Rooms Exhibit C-2 11/4/25 Projected Operating Results 3:01 PM Calendar Years 2033 2034 2035 2036 2037 Number of Units:120 120 120 120 120 Number of Annual Rooms Available:43,800 43,800 43,800 43,800 43,800 Number of Rooms Occupied:33,730 33,730 33,730 33,730 33,730 Annual Occupancy:77.0%77.0%77.0%77.0%77.0% Average Daily Rate:$172.25 $177.50 $182.75 $188.25 $194.00 Revenue Per Available Room:$132.63 $136.68 $140.72 $144.95 $149.38 Amount Ratio Amount Ratio Amount Ratio Amount Ratio Amount Ratio Revenues Rooms $5,810,000 90.1%$5,987,000 90.1%$6,164,000 90.1%$6,350,000 90.1%$6,544,000 90.1% Food & Beverage 299,000 4.6%308,000 4.6%317,000 4.6%327,000 4.6%337,000 4.6% Other Operated Departments 342,000 5.3%352,000 5.3%363,000 5.3%374,000 5.3%385,000 5.3% Total Operating Revenues 6,451,000 100.0%6,647,000 100.0%6,844,000 100.0%7,051,000 100.0%7,266,000 100.0% Departmental Expenses Rooms 1,410,000 24.3%1,452,000 24.3%1,496,000 24.3%1,541,000 24.3%1,587,000 24.3% Food & Beverage 209,000 69.9%216,000 70.1%222,000 70.0%229,000 70.0%236,000 70.0% Other Operated Departments 103,000 30.1%106,000 30.1%109,000 30.0%112,000 29.9%115,000 29.9% Total Departmental Expenses 1,722,000 26.7%1,774,000 26.7%1,827,000 26.7%1,882,000 26.7%1,938,000 26.7% Departmental Profit 4,729,000 73.3%4,873,000 73.3%5,017,000 73.3%5,169,000 73.3%5,328,000 73.3% Undistributed Expenses Administrative & General 635,000 9.8%654,000 9.8%673,000 9.8%694,000 9.8%715,000 9.8% Sales and Marketing 654,000 10.1%673,000 10.1%693,000 10.1%714,000 10.1%736,000 10.1% Property Operation and Maintenance 243,000 3.8%251,000 3.8%258,000 3.8%266,000 3.8%274,000 3.8% Utilities 198,000 3.1%204,000 3.1%210,000 3.1%216,000 3.1%222,000 3.1% Information and Telecommunication Systems 79,000 1.2%81,000 1.2%84,000 1.2%86,000 1.2%89,000 1.2% Total Undistributed Operating Expenses 1,809,000 28.0%1,863,000 28.0%1,918,000 28.0%1,976,000 28.0%2,036,000 28.0% Gross Operating Profit 2,920,000 45.3%3,010,000 45.3%3,099,000 45.3%3,193,000 45.3%3,292,000 45.3% Non-Operating Income and Expenses Base Management Fee 194,000 3.0%199,000 3.0%205,000 3.0%212,000 3.0%218,000 3.0% Property Taxes 383,000 5.9%391,000 5.9%399,000 5.8%407,000 5.8%415,000 5.7% Insurance 68,000 1.1%70,000 1.1%73,000 1.1%75,000 1.1%77,000 1.1% Total Fixed Expenses 645,000 10.0%660,000 9.9%677,000 9.9%694,000 9.8%710,000 9.8% Net Operating Income 2,275,000 35.3%2,350,000 35.4%2,422,000 35.4%2,499,000 35.4%2,582,000 35.5% FF&E Reserve 258,000 4.0%266,000 4.0%274,000 4.0%282,000 4.0%291,000 4.0% Net Operating Income After Reserve $2,017,000 31.3%$2,084,000 31.4%$2,148,000 31.4%$2,217,000 31.4%$2,291,000 31.5% DRAFT COPY - SUBJECT TO FINAL REVIEW v2 Confidential - For Discussion Purposes Only Proposed Dual Brand Hotel - Schertz TX - 120 Rooms Exhibit D Project Description Cost Assumptions Debt / Equity Assumptions v2 Keys: 120 Land (Approx Values) Term 25 Acres 7.000 Interest 6.50% Number of Stories 4 $ per SF $ 5.90 Loan to Costs (Estimate)65% Land Cost 1,800,000 Net On Site Meeting Space 1,600 Per Room $ 15,000 Loan Amount 14,000,000 Land Costs % of Total 8% Monthly Loan Payment 94,529 Employees (Approx.)20 Annual Debt Service 1,134,348 Hard / Soft Cost 19,800,000 $ Per Room 165,000 Equity Requirement 7,600,000 Restaurant Pad Sale Total Project 21,600,000 2.0 Acres at $16/SF (1,400,000) Per Room 180,000 Net Equity Investment 6,200,000 Net Operating Income Today's Dollars Year 1 Year 2 Year 3 Year 4 Year 5 Full Year of Operation 2025 2028 2029 2030 2031 2032 Occ%77%71%74%77%77%77% ADR $136.00 $148.50 $153.00 $157.75 $162.50 $167.25 Room Revenue 4,587,000 4,618,000 4,959,000 5,321,000 5,481,000 5,641,000 Other Income 506,000 510,000 547,000 587,000 604,000 622,000 Total 5,093,000 5,128,000 5,506,000 5,908,000 6,085,000 6,263,000 Total Expenses (3,515,000) (3,444,000) (3,822,000) (4,068,000) (4,185,000) (4,309,000) Net Operating Income 1,578,000 1,684,000 1,684,000 1,840,000 1,900,000 1,954,000 Proposed HOT Rebate 7.0%323,260 347,130 372,470 383,670 394,870 Debt Service (Year 1 Interest Only)(910,000) (1,134,348) (1,134,348) (1,134,348) (1,134,348) Potential Distributable Dividends 1,097,260 896,782 1,078,122 1,149,322 1,214,522 Debt Coverage Ratio 1.85 1.48 1.62 1.67 1.72 Debt Coverage Ratio with HOT Rebate 2.21 1.79 1.95 2.01 2.07 Internal Rate of Return Construction Operation-->Reversion 2026 2027 2028 2029 2030 2031 2032 IRR Total Return Initial Equity Investment (7,600,000) Restaurant Pad Site Sale 1,400,000 Potential Distributable Dividends - 1,097,260 896,782 1,078,122 1,149,322 1,214,522 Reversion 11,730,362 Total Equity Return (7,600,000) 1,400,000 1,097,260 896,782 1,078,122 1,149,322 12,944,884 20.6%18,566,370 Cash on Cash Return - by Year 18%14%12%14%15%170%Multiple: 2.4 Reversion Analysis Year 5 NOI 1,954,000 Terminal Cap Rate 7.75% Reversion Value (Sales Price)25,212,903 Sales Price per Key 210,108 RE Commission 2.0% Less Sales Cost (504,258) Net Sale 24,708,645 Less Outstanding Debt (12,978,283) Net Proceeds to Equity 11,730,362 NOTE: DPC Hospitality made no attempt to verify the estimates of project costs provided by the developer and have no opinion on their validity. In order to rely on the resulting estimates of cash on cash return and internal rate of return, potential investors must conduct their own investigation as to the reliability and completeness of the costs of developing this hotel. Furthermore, the terminal cap rate was not derived by an appraisal of recent market sales. A market derivation of cap rates by a certified appraiser is needed in order to accurately express potential returns. Amenities: swimming pool, fitness center, fire pit area, guest laundry, convience market, meeting room) 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Exhibit E Projects Completed by DPC Hospitality Select and Full-Service Hotels: Outside of Texas: Market Study of Proposed Margaritaville Resort - Myrtle Beach, South Carolina Market Study of Proposed Select-Service Hotel - Vinton, Virginia Market Study of Proposed Select-Service Hotel - Bentonville, Arkansas Market Study of Proposed Compass by Margaritaville Hotel - Medford, Oregon (Open 2022) Market Study of Proposed National WWII Museum Hotel - New Orleans, Louisiana (Open 2019) Market Study of Ace Hotel New Orleans - New Orleans, Louisiana (Open 2016) Market Study of Proposed Hilton Garden Inn & Homewood Suites - Oklahoma City, Oklahoma (Open 2014) Market Study of Proposed Homewood Suites - Nashville, Tennessee (Open 2013) Market Study of Proposed Full-Service Resort with Golf - Franklin, Tennessee Market Study of Proposed Office Building Conversion into Hilton Garden Inn Airport - Phoenix, Arizona (Open 2008) Market Study of Converting historic buildings into Residence Inn and Courtyard by Marriott - Omaha, Nebraska (Open 1999) Market Study of Proposed Conversion of the Fulton Hotel to a Holiday Inn - Alexandria, Louisiana Market Study of Proposed Full-Service Hotel - Colorado Springs, Colorado Performance Review of Operating Standards - Radisson Fort McDowell Resort & Casino (now We-Ko-Pa Casino Resort) - Scottsdale, Arizona Market Study of Proposed Holiday Inn - Colorado Springs, Colorado Market Study and Valuation of Cypress Bend Golf Resort and Conference Center - Sabine Parish, Louisiana Market Study of Proposed Full-Service Hotel - Sandy City, Utah Market Study of Proposed Full-Service Hotel adjacent to Jazz Land Theme Park - New Orleans, Louisiana Market Study and Valuation of 780-room Regal Riverfront - St. Louis, Missouri Market Study of Proposed Hotel Zaza - New Orleans, Louisiana Market Study of Proposed Residence Inn - Orange Beach, Alabama Market Study for Proposed Lakefront Hotel - City of Lake Charles, Louisiana Market Study of Proposed Boutique Hotel - New Orleans, Louisiana Market Study of Proposed Conrad CBD - New Orleans, Louisiana Market Study of Proposed Embassy Suites CBD - New Orleans, Louisiana Market Study of Proposed Convention Center Hotel - New Orleans, Louisiana Brand Impact Study for Marriott International - Covington, Louisiana Market Study of Proposed Conference Hotel - Broken Arrow, Oklahoma (Open) Market Study of Proposed Racetrack Hotel - Oklahoma City, Oklahoma Market Study of Proposed Boutique Hotel - Oklahoma City, Oklahoma Brand Impact Study of Proposed Downtown Courtyard Hotel- Kansas City, Kansas Brand Impact Study of Proposed Aloft - Little Rock, Arkansas Repositioning Study of NCED Conference Center & Hotel - Norman, Oklahoma Appraisal of the AC Hotel CBD - New Orleans, Louisiana Appraisal of the Loews CBD - New Orleans, Louisiana Appraisal of Renaissance Hotel - Baton Rouge, Louisiana Appraisal of The Ritz-Carlton - New Orleans, Louisiana Appraisal of Courtyard by Marriott New Orleans French Quarter/Iberville - New Orleans, Louisiana Appraisal of Astor Crowne Plaza – New Orleans, Louisiana Appraisal of Hilton Hotel (now DoubleTree by Hilton) – Lafayette, Louisiana Appraisals of Hyatt French Quarter - New Orleans, Louisiana Appraisals of Hilton Garden Inn CBD - New Orleans, Louisiana 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Exhibit E Appraisal of Hilton Garden Inn Airport - Baton Rouge, Louisiana Appraisal of Ambassador Autograph Collection Downtown Hotel - Kansas City, Missouri (Open) Dallas/North Texas Area: Market Study of Proposed Courtyard by Marriott - Mansfield, Texas Market Study of Proposed Full-Service Boutique Hotel Conversion - Arlington, Texas Market Study of Proposed Camp Margaritaville - Grand Prairie, Texas Brand Impact Study of AC Hotel/Residence Inn Dallas Galleria - Dallas, Texas (Open 2018) Market Study of Proposed Hilton Garden Inn - Hurst, Texas (Open 2018) Market Study of Proposed Redevelopment for The Baker Hotel and Spa - Mineral Wells, Texas (Under Construction) Market Study of Proposed Courtyard Hotel & Conference Center - Carrollton, Texas (Open 2016) Market Study of Proposed Hilton Dallas/Plano Granite Park - Plano, TX (Open 2014) Market Study of Proposed Cambria Hotel - Plano, Texas (Open 2014) Market Study of Proposed Holiday Inn - McKinney, Texas (Open 2008) Market Study of Proposed Embassy Suites Galleria - Dallas, Texas (Open 1998) Market Study of Renovating the Historic Blackstone Hotel into a Courtyard by Marriott - Fort Worth, Texas (Open 1999) Brand Impact Study of Proposed Delta Hotel - Westlake, Texas Market Study of Proposed Dual Luxury/4-Star Hotels - Dallas, Texas (Near Galleria) Market Study of Proposed Lifestyle Downtown Hotel - Dallas, Texas Market Study of Proposed Select-Service Hotel - Lake Worth, Texas Market Study of Proposed Embassy Suites - Richardson, Texas Market Study of Proposed Aloft Hotel Galleria - Dallas, Texas Market Study of Proposed Dual-brand Hilton Garden Inn/Homewood Suites - Grand Prairie, Texas Impact Assessment of Converting Ramada Plaza into Holiday Inn Select (Presently the Sheraton) - Fort Worth, Texas Evaluation of Converting the Employers Life Insurance Building into a Headquarters Hotel - Dallas, Texas Market Study of Proposed Resort Hotel and Water Park - Frisco, Texas Market Study of Proposed Hotel Conversion to a Full-Service Wyndham Hotel - Wichita Falls, Texas Appraisal of the Warwick Hotel - Dallas, Texas Appraisal of Mansion on Turtle Creek – Dallas, Texas Appraisal of Le Meridien Stoneleigh - Dallas, Texas Appraisal of the Omni Convention Center Hotel Downtown - Dallas, Texas Appraisal of Hilton Arlington - Arlington, Texas Appraisal of Four Seasons Resort and Club Dallas at Las Colinas - Irving, Texas Houston Area: Market Study of Proposed Margaritaville Resort - Galveston, Texas Market Study of Proposed Full-Service Hotel Conversion - Galveston, Texas Market Study of Proposed Compass by Margaritaville & Condominium - Seabrook, Texas Market Study of Proposed Canopy by Hilton & Condominium River Oaks District - Houston, Texas Hotel Development and Operational Advisory - Friendswood, Texas Market Study of Proposed Blossom Hotel - Texas Medical Center - Houston, Texas (Open 2021) Market Study of Proposed InterContinental TMC Hotel - Houston, Texas (Open 2019) Brand Impact Study of Proposed AC Hotel Houston Downtown - Houston, Texas (Open 2019) Market Study of Proposed Texas A&M Hotel and Conference Center - College Station, Texas (Open 2018) Market Study of Proposed Embassy Suites West I-10 - Houston, Texas (Open 2017) Market Study of The Westin at The Woodlands - The Woodlands, Texas (Open 2016) Market Study of Embassy Suites by Hilton The Woodlands at Hughes Landing - The Woodlands, Texas (Open 2015) Market Study of Proposed Courtyard & TownePlace Suites - Galveston, Texas (Open 2013) Market Study of Proposed Hilton Garden Inn America Plaza - Houston, Texas (Open 2012) 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Exhibit E Market Study of Proposed Hilton Garden Inn Galleria - Houston, Texas (Open 2005) Market Study and Economic Impact Assessment of 1,200-Room Hilton Americas Downtown Houston, Texas (Open 2004) Market Study and Valuation of Omni Galleria - Houston, Texas Market Study of Proposed Holiday Inn (Now Crowne Plaza) - Shenandoah, Texas Market Study of Proposed Katy Boardwalk Hotel & Conference Center - Katy, Texas Market Study of Proposed Embassy Suites - Sugar Land, Texas Market Study of Proposed Lifestyle Hotel Midtown - Houston, Texas Brand Impact Study of Proposed Hyatt House - College Station, Texas Market Study of Proposed Hilton Garden Inn - Pasadena, Texas Market Study of Proposed Dual-brand Aloft/Element - IAH Airport - Houston, Texas Market Analysis of Proposed Kimpton Hotel - Houston, Texas Market Study of Proposed Dual-brand Aloft/Element - Texas Medical Center - Houston, Texas Market Analysis of Proposed Hyatt Regency - Katy, Texas Market Study of Proposed Hotel - Sugar Land, Texas (Imperial Redevelopment) Market Study of Proposed Embassy Suites & Water Park - Beaumont, Texas Market Study of Proposed Embassy Suites - Texas Medical Center - Houston, TX Market Study of Converting the Medical Towers into the Marriott Medical Center Expansion - Houston, Texas Market Study of Converting Historic Texas State Hotel into Sheraton Suites - Downtown Houston, Texas Market Study and Valuation of Red Lion Hotel Galleria - Houston, Texas Appraisal of Crowne Plaza Downtown Houston (Now The Whitehall) - Houston, Texas Appraisal of AVIA Hotel (now Hyatt Centric The Woodlands) - The Woodlands, Texas Appraisal of Renaissance Greenway Plaza (now DoubleTree) - Houston, Texas Appraisal of JW Marriott Houston Downtown - Houston, Texas Appraisal of Hyatt Regency Houston - Houston, Texas Central Texas: Brand Impact Study of the Proposed Marriott Downtown - Austin, Texas (Open 2021) Brand Impact Study of the Proposed The Otis Hotel/AC Hotel - Austin, Texas (Open 2020) Market Study of Proposed Austin Proper Hotel - Austin, Texas (Open 2019) Market Study of Proposed Embassy Suites - Brooks City Base - San Antonio, Texas (Open 2017) Market Study of Proposed Sheraton Austin Georgetown Hotel & Conference Center - Georgetown, Texas (Open 2016) Economic Impact Study of Proposed Hilton Garden Inn - Live Oak, Texas (Open 2016) Market Study of Proposed South Congress Hotel - Austin, Texas (Open 2015) Market Study of Proposed Homewood Suites - (Parmer Lane) Austin, Texas (Open 2015) Market Study of Proposed Homewood Suites - Round Rock, Texas (Open 2010) Market Study of Proposed Wyndham Garden Inn Near La Cantera (now DoubleTree) - San Antonio, Texas (Open 2009) Market Study of Proposed Kimber Modern Hotel - South Congress - Austin, Texas (Open 2008) Market Study of Proposed Westin Riverwalk - San Antonio, Texas (Open 1999) Market Study and Valuation of St. Anthony Hotel - San Antonio, Texas Market Study of Proposed Residence Inn - Pearl District - San Antonio, Texas Market Study of Proposed W Hotel - Pearl District - San Antonio, Texas Market Study of Proposed Embassy Suites - Downtown - Waco, Texas Occupancy Tax Rebate Request for Proposed Embassy Suites - Downtown - Waco, Texas Market Study of Proposed Full-Service Hotel & Conference Center - Pearland, Texas Market Study of Proposed Redevelopment of the El Tropicano Hotel - Riverwalk - San Antonio, Texas Market Study of Proposed Element Hotel - Parmer Lane - Austin, Texas 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Exhibit E Market Study of Proposed Dual-brand AC Hotels/Element - Austin, Texas Market Study of Proposed Hilton Garden Inn & Conference Center - Bastrop, Texas Market Study of Proposed Select-Service Hotel & Conference Center - Boerne, Texas Market Study of Proposed Boutique Hotel - Fredericksburg, Texas Market Study of Proposed Cambria Suites - Medical Center - San Antonio, Texas Market Study of Proposed Full-Service Hotel - New Braunfels, Texas Market Study of Proposed Expansion of Hilton Palacio Del Rio - San Antonio, Texas Market Study of Proposed Mueller Hotel - Austin, Texas Brand Impact Study for Marriott International - Austin, Texas (Sheraton Downtown conversion) Brand Impact Study for Marriott International - Round Rock, Texas (TownePlace Suites) Market Study of Proposed Boutique Hotel - Fredericksburg, Texas Market Study of Proposed Full-Service Hotel - New Braunfels, Texas Appraisal of Proposed Hyatt Place Stone Oak - San Antonio, Texas (Open 2010) Appraisal of Sheraton at the Capitol - Austin, Texas Appraisal of Hyatt Place Downtown - Austin, Texas Appraisal of JW Marriott Resort & Spa - San Antonio, Texas Appraisal of the Hyatt Hill Country Resort & Spa - San Antonio, Texas Appraisal of Sheraton Gunter Hotel - San Antonio, Texas Appraisal of Eilan Hotel & Spa - San Antonio, Texas Appraisal of Riverwalk Plaza Hotel - San Antonio, Texas Appraisal of San Antonio Marriott Northwest - San Antonio, Texas Appraisal of The St. Anthony, a Luxury Collection Hotel - San Antonio, Texas Appraisal of Courtyard San Antonio Riverwalk – San Antonio, Texas Appraisal of Hyatt Place Austin Downtown – Austin, Texas South Texas: Market Study of Proposed Select-Service Hotel & Conference Center - Brownsville, Texas Market Study of Proposed Hotel & Conference Center - Port Aransas, Texas Market Study of Proposed Full-Service Hotel Adjacent to McAllen Convention Center - McAllen, Texas Market Study of Proposed All-Suite Hotel and Resort on North Padre Island - Corpus Christi, Texas Market Study, Economic Impact Study, and Financing Recommendations of Proposed Full-Service Hotel - South Padre Island, Texas Market Study of Proposed Executive Conference Center - North Padre Island, Corpus Christi, Texas Market Study of Doctors Hospital Hotel - Edinburg, Texas West Texas: Market Study of Proposed Hyatt Place - Eagle Pass, Texas (Under Construction) Repositioning Study of Former Downtown Camino Real Hotel (Now Hotel Paso Del Norte) - El Paso, Texas (Open) Market Study of Proposed Full-Service Hotel & Conference Center - Odessa, Texas Market Study of Proposed Hyatt Place - Abilene, Texas Market Study for Proposed El Paso Conference Hotel - El Paso, Texas Market Study of Proposed Lifestyle Hotel - Midland, Texas 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Exhibit E Limited-Service Hotels: Houston Area: Market Study of Proposed Limited-Service Hotel - La Marque, Texas Market Analysis of Proposed Student Housing - Houston, Texas Market Study of Proposed Fairfield Inn & Suites - Energy Corridor - Houston, Texas (Open 2021) Market Study of Proposed Holiday Inn Express & Suites - CityCentre - Houston, Texas (Open 2021) Market Study of Home2 Suites Energy Corridor - Houston, Texas (Open 2016) Market Study of Proposed Hampton Inn & Suites - Bush Intercontinental Airport - Houston, Texas (Open 2015) Market Study of Proposed Springhill Suites Houston I-45 North - Houston, Texas (Open 2015) Market Study of Proposed Dual-brand Courtyard/TownePlace Suites - Galveston, Texas (Open 2013) Market Study of Proposed Comfort Suites (Westchase) - Houston, Texas (Open 2013) Market Study of Proposed Hampton Inn & Suites - Missouri City, Texas (Open 2013) Market Study of Proposed Springhill Suites Houston The Woodlands - The Woodlands, Texas (Open 2011) Market Study of Proposed Hampton Inn & Suites - League City, Texas (Open 2010) Market Study of Proposed Springhill Suites - Seabrook, Texas (Open 2010) Market Study of Proposed La Quinta Inn & Suites - Westchase - Houston, TX (Open 2007) Market Study of Proposed Hilton Garden Inn Galleria - Houston, Texas (Open 2005) Market Study of Proposed Best Western Mini Suites - Texas City, Texas (Open 2005) Market Study of Proposed Bed & Breakfast - Kemah, Texas (Open 2004) Market Study of a Proposed TownePlace Suite - College Station, Texas (Open 1999) Market Study of a Proposed TownePlace Suite - Clear Lake, Texas (Open 1999) Market Study of Proposed Home2 Suites - Lake Jackson, Texas Market Study of Proposed Limited-Service Hotel - Katy, Texas Market Study of Proposed Acquisition of TownePlace Suites - Westchase - Houston, Texas Market Study of Proposed Acquisition of TownePlace Suites - Galleria - Houston, Texas Market Study of Proposed Limited-Service Hotel - Hobby Airport - Houston, Texas Market Study of Proposed Studio 6 - Deer Park, Texas Market Study of Proposed Sleep Inn - Hobby Airport - Houston, Texas Market Study of Proposed Limited-Service Hotel - Mont Belvieu, Texas Market Study of Proposed Red Roof Inn - Houston, Texas Market Study of Proposed SureStay Hotel - Houston, Texas Market Study of Proposed Springhill Suites - Houston, Texas Market Study of Proposed Sleep Inn - Clute/Lack Jackson, Texas Market Study of Proposed Microtel Inn & Suites - Port Arthur, Texas Market Evaluations of four Baymont Inns - Houston, Texas Appraisal of Home2 Suites - Pasadena, Texas Dallas/North Texas Area: Market Study of Proposed Home2 Suites Stockyards - Fort Worth, Texas Market Study of Proposed Limited-Service Hotel - Commerce, Texas Market Study of Proposed Limited-Service Hotel - Sachse, Texas Market Study of Proposed SpringHill Suites - Sherman, Texas Broker’s Opinion of Value for Best Western Plus DFW Airport - Irving, Texas Market Study of Proposed TownePlace Suites - Rockwall, Texas (Open 2022) Market Study of Proposed SpringHill Suites - Stockyards - Fort Worth, Texas (Open 2019) Market Study of Proposed Fairfield Inn - Decatur, Texas (Open 2018) Market Study of Proposed Hampton Inn - Vernon, Texas (Open 2011) Market Study of Proposed Hampton Inn - Sulphur Springs, Texas (Open 2010) 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Exhibit E Market Study of Proposed Best Western Premier - Denton, Texas (Open 2009) Market Study of Proposed Holiday Inn Express - Vernon, Texas (Open 2006) Market Study and Valuation of Proposed Comfort Suites - Grapevine, Texas (Open 2005) Market Study of Proposed Hampton Inn and Suites - Hurst, Texas (Open 2004) Market Study of a Hampton Inn and Suites - Alliance Airport, Fort Worth Texas (Open 1999) Market Study of Proposed Redevelopment of the Caravan Motor Hotel - Arlington, Texas Market Study of Proposed Comfort Inn & Suites - Dallas Executive Airport - Dallas, Texas Market Study of Proposed La Quinta Inn & Suites - Farmers Branch, Texas Market Study of Proposed Dual-brand TownePlace/SpringHill Suites - Arlington, Texas Appraisal of Hampton Inn - Frisco, Texas Due Diligence Analysis Homewood Suites Arlington South - Arlington, Texas Due Diligence Analysis Wyndham Garden Hotel Los Colinas - Irving, Texas Due Diligence Analysis Wyndham Garden Hotel Market Center - Dallas, Texas Due Diligence Analysis of five hotels (Holiday Inn Expresses and Quality Suites) - Dallas, Texas Due Diligence Analysis of five hotels (Holiday Inn Expresses and Quality Suites) - Dallas, Texas Due Diligence Analysis Wyndham Garden Hotel Los Colinas - Irving, Texas Due Diligence Analysis Wyndham Garden Hotel Market Center - Dallas, Texas Central Texas: Market Study of Proposed SpringHill Suites - New Braunfels, Texas Market Study of Proposed Limited-Service Hotel - Burnet, Texas Market Study of Proposed Hampton Inn - Bulverde, Texas (Opened 2017) Market Study of Proposed Home2 Suites - Round Rock, Texas (Open 2015) Market Study of Proposed Bed and Breakfast Cabins - Fredericksburg, Texas (Open 2013) Market Study of Proposed Sleep Inn & Suites - Manor, Texas Market Study of Proposed Hampton Inn & Suites - UT Austin/Capitol, Texas (Open 2012) Market Study of Proposed Microtel Inn & Suites - Austin, Texas (Airport) (Open 2010) Market Study of Proposed Staybridge Suites - San Antonio, Texas (Open 2008) Market Study of Proposed La Quinta - Medical Center - San Antonio, Texas (Open 2007) Market Study of Proposed TRU by Hilton - New Braunfels, Texas Market Study of Proposed Fairfield Inn & Suites - Lackland AFB - San Antonio, Texas Market Study of Proposed Limited-Service Hotel - Marble Falls, Texas (Open 2008) South Texas: Market Study of Proposed Microtel Inn & Suites - Gonzales, Texas (Open 2013) Market Study of Proposed Holiday Inn Express - South Padre Island, Texas (Open 2005) Market Study of Proposed Home2 Suites - Mercedes, Texas West Texas: Market Study of Proposed Hampton Inn & Suites - Texas Tech - Lubbock, Texas (Open 2020) Market Study of Proposed Microtel - San Angelo, Texas (Open 2010) Market Study of Proposed Hawthorn Suites - Lubbock, Texas (Open 2008) Market Study of Proposed Best Western (Now Inn at Circle T)- Hamilton, Texas (Open 2007) Market Study of Proposed La Quinta Inn & Suites - Lubbock, Texas (Open 2006) Market Study of Proposed Fairfield Inn & Suites - Stephenville, Texas 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Exhibit E East Texas: Market Study of Proposed Hampton Inn - Sulphur Springs, Texas (Open 2010) Market Study of Proposed SpringHill Suites - Lindale, Texas Market Study of Proposed Limited-Service Hotel - Longview, Texas Market Study of Proposed Microtel Inn & Suites - Texarkana, Texas Market Study of Proposed Best Western - Mt. Vernon, Texas Limited-Service Hotels Outside of Texas: Market Study of Proposed Hampton Inn & Suites - Bedford, Virginia Market Study of Proposed Hampton Inn & Suites - Rocky Mount, Virginia Broker’s Opinion of Value for Best Western Inn - Coushatta, Louisiana Market Study of Proposed Fairfield Inn & Suites - Arkadelphia, Arkansas (Open 2021) Market Study of Proposed Dual-brand TRU/Homewood Suites - Denver Airport - Denver, Colorado (Open 2019) Market Study of Proposed Hampton Inn & Suites - Cranberry Township - Pittsburgh, Pennsylvania (Open 2018) Market Study of Proposed Home2 Suites - Stillwater, Oklahoma (Open 2016) Market Study of Proposed Home2 Suites - Tallahassee, Florida (Open 2015) Market Study of Proposed Home2 Suites - Tuscaloosa, Alabama (Open 2015) Market Study of Proposed Home2 Suites - Lexington, Kentucky (Open 2015) Market Study of Proposed Hampton Inn & Suites - Mulvane, Kansas (Open 2012) Market Study of Proposed Hampton Inn & Suites - Dodge City, Kansas (Open 2012) Market Study of Proposed La Quinta Inn & Suites - Olathe, Kansas (Open 2008) Market Study of Proposed Holiday Inn Express & Suites - Bloomington, Indiana (Open 2006) Market Study of Converting historic buildings into Residence Inn and Courtyard by Marriott - Omaha, Nebraska (Open 1999) Market Study of Proposed Sleep Inn Limited-Service Hotel - Thornton, Colorado (Open 1998) Market Study and Valuation of Proposed All-Suite Hotel at Isle of Capri Casino - Lake Charles, Louisiana (Open 1998) Market Study and Valuation of Proposed Limited-Service Hotel at Isle of Capri Casino - Lake Charles, Louisiana (Open 1997) Market Study of Proposed TRU by Hilton - Moab, Utah Market Study of Proposed Home2 Suites - Moab, Utah Market Study of Proposed Limited-Service Hotel - Research and Technology Park - New Orleans, Louisiana Market Study of Proposed Home2 Suites - Bessemer, Alabama Market Study of Proposed SpringHill Suites - Bessemer, Alabama Market Study of Proposed Avid Hotel - Tulsa, Oklahoma Market Study of Proposed Fairfield Inn - Maize, Kansas 10700 Richmond Ave. Suite 321 Houston, Texas 77042 713.900.2101 DPCHospitality.com Exhibit E Public Assembly Facility Studies: Outside of Texas: Market Study and Economic Impact Study of Proposed 453,000-square foot Exhibition Center – Sandy City, Utah Market Study of Proposed Ballroom Addition to the Welk Resort – Branson, Missouri Market Study of Proposed Convention Center, Mall Conversion – Tupelo, Mississippi Dallas/North Texas Area: Market Study of Proposed Dallas County School District Meeting Facility – Dallas, Texas Market Study of Proposed 500,000-Square foot Exhibition Center – Grapevine, Texas Market Study of Proposed Conference Center – Hurst, Texas (Open 2007) Management RFP of Proposed Conference Center – Hurst, Texas Houston Area: Market Study of Proposed Convention Center - Stafford, Texas (Open 2003) Market Study of Proposed Performing Arts Theater - Stafford, Texas (Open 2003) Market Study and Economic Impact of Proposed Waterway Convention Center - The Woodlands, Texas (Open 2002) Citywide occupancy tax collection forecast for City of Houston, used in securing $700 million in bonds for the purpose of expanding the George R. Brown Convention Center, constructing the 1,200-room Hilton Hotel, parking garage, and NBA basketball arena - Houston, Texas Market Study and Economic Impact Study of Expanding the George R. Brown Convention Center - Downtown Houston, Texas (Open) Market Study of Proposed Convention Center, Mall Conversion - Baytown, Texas Market Study of Proposed Natatorium - Stafford, Texas Market Study of Repositioning a portion of Greenspoint Mall into a Convention Center - Houston, Texas Market Study of Proposed Civic Center - Kemah, Texas Market Study of Proposed Civic Center - Freeport, Texas Central Texas: Market Study of Proposed Convention Center – New Braunfels, Texas Market Study of Proposed Civic Center & Exhibit Hall – Gonzales, Texas Market Study for Proposed Downtown Conference Hotel - City of New Braunfels, Texas South Texas: Market Study of Expanding the Bayfront Convention Center – Corpus Christi, Texas (Completed 1999) East Texas: Market Study of Proposed Convention Center - Lufkin, Texas 2 SEDC RESOLUTION 2025-9 A RESOLUTION BY THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION, AUTHORIZING THE FIRST AMENDMENT AND ASSIGNMENT OF THE ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT WITH EASTGROUP PROPERTIES, L.P.; AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz Economic Development Corporation (herein after called "SEDC") is a non-profit economic development corporation duly established under the Development Corporation Act of 1979, as codified in Chapters 501-505 of the Texas Local Government Code (the "Act"); WHEREAS, Sections 501, 502, and 505 of the Texas Local Government Code ("Texas LGC") authorizes the SEDC to fund certain projects as defined therein and enter into performance agreements to establish and provide for the direct incentive or make an expenditure on behalf of a business enterprise under a project; and WHEREAS, all powers of the corporation are vested in the SEDC Board of Directors (the "Board") appointed by the governing body of the corporation's authorizing unity; and WHEREAS, the Act authorizes a development corporation to fund certain projects as defined by the Act and requires that development corporations enter into performance agreements containing at minimum a schedule of payroll or jobs to be created and the capital investment to be made, in order to establish and provide for the direct incentive or make an expenditure on behalf of a business enterprise under a project; and WHEREAS, the SEDC and EastGroup Properties, L.P. (“EGPLP”) (collectively, the “Parties”) entered into that certain Economic Development Performance Agreement with EGPLP on March 27, 2025 (the “Agreement”) pertaining to a certain parcel of undeveloped land situated in or near the City of Schertz, County of Comal and State of Texas, as more particularly described in the Agreement; and WHEREAS, Section Sec. 505.159 of the Texas LGC requires the SEDC to hold a public hearing to undertake projects, and a public hearing was held on March 27, 2025 at the SEDC Board Meeting; and WHEREAS, EGPLP desires to assign its entire interest in the Agreement to EGP Schertz 3009, LLC (“Developer”); and WHEREAS, Developer desires to accept the assignment of the Agreement from EGPLP; and WHEREAS, the City is requiring that Developer post surety prior to the commencement of construction of the Public Improvements in the form of a surety bond in the amount of 110% of the cost of the Public Improvements (the “Surety”); and 3 WHEREAS, the Parties have agreed to modifications to the Agreement and desire to amend the Agreement to reflect such modifications; and WHEREAS, SEDC consents to the assignment and amendment of the Agreement as set forth herein; and WHEREAS, the Parties believe that the provisions of this Amendment substantially advances a legitimate interest of the City and SECD by providing public infrastructure, expanding the tax base of the City, increasing employment and promoting economic development; and WHEREAS, Section 501.073 of the Act requires the City of Schertz, the SEDC authorizing unit, to approve all SEDC programs and expenditures. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF SCHERTZ ECONOMIC DEVELOMENT CORPORATION THAT: Section 1. The Schertz Economic Development Board hereby approves the Economic Development Performance Agreement amendment attached hereto as EXHIBIT A and authorizes the President to execute and deliver in substantial form as attached to the City of Schertz for final authorization of project expenditures. 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 Board. 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 board 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. and it is so resolved. This Resolution shall be in force and effect from and after its final passage 4 PASSED AND ADOPTED, this __ day of , 2025. CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION ____________________________________ ATTEST: William Dixon, SEDC President ______________________________________ Bryan Jones, SEDC Board Secretary 5 EXHIBIT A EastGroup Properties, L.P. Performance Agreement First Amendment and Assignment 1 FIRST AMENDMENT AND ASSIGNMENT OF EASTGROUP PROPERTIES, L.P. ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT THIS FIRST AMENDMENT AND ASSIGNMENT OF EASTGROUP PROPERTIES, L.P. ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT (“Amendment”) is made effective as of _________, 2025, by and among Schertz Economic Development Corporation, a Texas non-profit development corporation under the Development Corporation Act and governed by Tex. Loc. Gov. Code chapters 501, 502 and 505 and the Texas Non-Profit Corporation Act (hereinafter called “SEDC” or the “Corporation”), and EastGroup Properties, L.P., a Delaware limited partnership authorized to do business in Texas (hereinafter called “EGPLP”), and EGP Schertz 3009, LLC, a Texas limited liability company (hereinafter called “EastGroup” or “Developer”) otherwise known as the “Parties” to this Agreement. WHEREAS, SEDC and EGPLP entered into that certain Economic Development Performance Agreement effective as of March 27, 2025 (the “Agreement”) pertaining to a certain parcel of undeveloped land situated in or near the City of Schertz, County of Comal and State of Texas, as more particularly described in the Agreement; WHEREAS, EGPLP desires to assign its entire interest in the Agreement to Developer; WHEREAS, Developer desires to accept the assignment of the Agreement from EGPLP; WHEREAS, the City is requiring that Developer post surety prior to the commencement of construction of the Public Improvements in the form of a surety bond in the amount of 110% of the cost of the Public Improvements (the “Surety”); WHEREAS, SEDC has agreed to reimburse Developer for the cost of providing and maintaining the Surety (the “Surety Costs”); WHEREAS, the Parties believe that the provisions of this Amendment substantially advances a legitimate interest of the City and SECD by providing public infrastructure, expanding the tax base of the City, increasing employment and promoting economic development; WHEREAS, the Parties have agreed to certain modifications to the Agreement and desire to amend the Agreement to reflect such modifications; and WHEREAS, SEDC consents to the assignment and amendment of the Agreement as set forth herein. NOW, THEREFORE, in consideration of the mutual undertakings and covenants herein contained, Buyer and Seller hereby covenant and agree as follows: 1. Capitalized Terms. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement. 2. Assignment and Assumption of Agreement. EGPLP hereby assigns, sets over and transfers to Developer all of EGPLP’s rights, title and interest in and to the Agreement, and Developer hereby accepts such assignment and assumes all of EGPLP’s obligations, duties and liabilities under the Agreement. 3. Consent to Assignment. SEDC hereby consents to the assignment of the Agreement by EGPLP and assumption thereof by Developer pursuant to the terms hereof. This Amendment does not 2 constitute, and shall not be construed to constitute, a waiver of the restriction, limitation and prohibition on the assignment of the Agreement, in whole or in part, without the prior written consent of SEDC. 4. Reimbursement of Cost of Surety. In addition to funding of the Grant Payments in accordance with the terms and conditions of the Agreement, during the first three (3) years of the term of the Agreement, SEDC agrees to reimburse Developer for one hundred percent (100%) of the Surety Costs incurred by Developer each year, not to exceed $115,000.00 per year. During the fourth (4th) year of the term of the Agreement, SEDC agrees to reimburse Developer for eighty percent (80%) of the Surety Costs incurred by Developer during such year, not to exceed $92,000.00. During the fifth (5th) year of the term of the Agreement, SEDC agrees to reimburse Developer for sixty percent (60%) of the Surety Costs incurred by Developer during such year, not to exceed $69,000.00. per year. Not more frequently than once per year, Developer shall submit an invoice to SEDC for the Surety Costs, accompanied by evidence of Developer’s payment of such Surety Costs. SEDC shall reimburse Developer for such Surety Costs, up to the applicable cap set forth above, within forty-five (45) days after receipt of such invoice and evidence of payment from Developer. 5. Term of Reimbursement Obligation. SEDC’s obligation to reimburse Developer for the Surety Costs as set forth in Section 2 above shall expire five (5) years from the date of this Amendment (the “Surety Reimbursement Expiration Date”). Notwithstanding the foregoing, the expiration of SEDC ‘s obligation to reimburse Developer for the Surety Costs shall not relieve SEDC of the obligation to reimburse Developer for any Surety Costs submitted to SEDC prior to the Surety Reimbursement Expiration Date. 6. No Reduction of Grant Payments. SEDC agrees that the Surety Costs shall be payable in addition to the Grant Payments, and that reimbursement of the Surety Costs by SEDC shall not serve to reduce the Maximum Grant Amount. 7. No Other Amendments. The Agreement is hereby ratified by SEDC and Developer and except as amended herein shall continue in full force and effect in accordance with its existing provisions. 8. Authority. Each person or entity executing this Amendment on behalf of the SEDC and Developer represents to the other party that the undersigned has the authority to execute and deliver this Amendment and that this Amendment, once executed, is the legal, valid and binding obligation of the SEDC and Developer, respectively. 9. Facsimile/Electronic Signatures. Telecopied signatures or electronically transmitted signatures may be used in place of original signatures on this Amendment. All parties hereto intend to be bound by the signatures on the telecopied document or electronic transmission, are aware that other parties will rely on such signatures, and hereby waive any and all defenses to the enforcement of the terms of this Amendment based on the form of signature. 10. Counterparts. This Amendment may be executed and delivered in any number of counterparts, each of which so executed and delivered shall be deemed to be an original and all of which shall constitute one and the same instrument. 11. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Texas. 12. Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of the successors and assigns of the parties. [See next page for signatures] 3 [Signature page to Assignment and Assumption and First Amendment to Economic Development Performance Agreement] IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as of the date first above written. EGPLP: EASTGROUP PROPERTIES, L.P., a Delaware limited partnership By: EastGroup Properties General Partners, Inc., a Delaware corporation, its sole general partner By: ____________________________ Name: _________________________ Title: __________________________ By: ____________________________ Name: _________________________ Title: __________________________ DEVELOPER: EGP SCHERTZ 3009, LLC, a Texas limited liability company By: EastGroup Properties, L.P., a Delaware limited partnership, its sole member By EastGroup Properties General Partners, Inc., a Delaware corporation, its sole general partner By: _______________________________ Name: Title: By: _______________________________ Name: Title: SEDC: SCHERTZ ECONOMIC DEVELOPMENT CORPORATION By: ____________________________ Name: _________________________ Title: __________________________ ATTEST: By: _______________________________ Name:______________________________ Title:_____________________________ 1 Exhibit A Sample Annual Certification Report Form (see attached) 2 The Annual Certification Report for the Economic Development Incentive Agreement between the City of Schertz Economic Development Corporation and _________________, is due on February 15, 20___. Please sign and return the Annual Certification Report form with a Developer narrative. Annual Certification Report Reporting Period: January 1 to December 31, 20__ I. Project Information IV. Certification II. Reporting Information Employment and Wage Information: Has the Developer employed undocumented workers?  Yes  No What is the total number of Full-time Employees located at the Schertz facility during the calendar year? ______________ What is the total Annual Payroll for the Schertz facility during the calendar year? _______________ Investment Information: What is the 20___ appraised ad valorem tax value for Tangible Personal Property? _______________ Narrative: A brief narrative explaining the current year’s activities and/or any potential defaults has been provided?  Yes  No III. Additional Information (Voluntary) Employment: Total full-time employees: ____________ Total annual payroll: ____________ Number of full-time jobs added in past year: ____________ Number of employees that live in Schertz, Texas: ____________ Interested in being contacted about workforce training opportunities?  Yes  No Interested in being contacted for assistance with City permits?  Yes  No Project Information: Developer’s legal name: ________________________________________________________________________ Project address subject to incentive: ______________________________________________________________ Developer primary contact: ________________________________ Title: ______________________________ Phone number: ____________________________ E-mail address: ____________________________________ 3 The Annual Certification Report is to be completed, signed and returned on or before February 15, 20__. Please send an original to the following address: Attention: Executive Director City of Schertz Economic Development Corporation 1400 Schertz Parkway, Bldg. No. 2 Schertz, TX 78154 I certify that, to the best of my knowledge and belief, the information and attachments provided herein are true and accurate and in compliance with the terms of Economic Development Incentive Agreement. I further certify that the representations and warranties contained within the Agreement remain true and correct as of the date of this Certification, and XXX Corporation. remakes those representations and warranties as of the date hereof. I further certify that the employment and wage information provided is true and accurate to the best of my knowledge and I can provide documentation from the Texas Workforce Commission to support my claim if so requested. I understand that this Certificate is being relied upon by the SEDC in connection with the expenditure of public funds. I have the legal and express authority to sign this Certificate on behalf of [Developer Name] Corporation. . ________________________________________ _________________________________________ Name of Certifying Officer Certifying Officer’s Title ________________________________________ _________________________________________ Phone Number E-Mail Address ________________________________________ _________________________________________ Signature of Certifying Officer Date STATE OF TEXAS X COUNTY OF GUADALUPE X This information was acknowledged before me on this ______ day of _______________, ______ by [first and last name] , [title] for XX Corporation, a Texas corporation, on behalf of said agency. ______________________________ Notary Public, State of Texas ______________________________ Notary’s typed or printed name My commission expires _______________