25-R-172 AGREEMENT BETWEEN COF EDC AND EASTGROUP PROPERTIES L.P.RESOLUTION 25-R-172
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING AN EXPENDITURE AS REFLECTED IN THE FIRST AMENDMENT
AND ASSIGNMENT OF THE ECONOMIC DEVELOPMENT PERFORMANCE
AGREEMENT BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT
CORPORATION AND 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, 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 a 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 East
Group Properties, L.P. on November 20, 2025; 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 August 28, 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, 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
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 provision of this Amendment substantially
advances a legitimate interest of the City and SEDC 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.
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, the SEDC Board met in a regular meeting on November 20, 2025 and
approved the First Amended and Assignment of the Performance Agreement with EastGroup
Properties, L.P., and
NOW THEREFORE, BE IT RESOLVE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS THAT:
Section 1. The City Council hereby authorizes the expenditure reflected in the Economic
Development Performance Agreement attached hereto as ATTACHMENT A and approves the
participation of the City of Schertz as reflected therein.
Section 2. The recitals contained in the preamble hereof are hereby found to be true, and such
recitals are hereby made a part of this Resolution for all purposes and are adopted as a part of the
judgment and findings of the City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any
provision of this Resolution are hereby repealed to the extent of such conflict, and the provisions
of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the laws of the
State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Resolution and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City
Council hereby declares that this Resolution would have been enacted without such invalid
provision.
Section 6. It is officially found, determined, and declared that the meeting at which this
Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended.
Section 7. This Resolution shall be in force and effect from and after its final passage, and it is so
resolved.
PASSED AND APPROVED on the J*day of 1W , 2025.
CITY OF SCHERTZ, TEXAS
Ralph Rodriguez, Mayor
A
Sheila Edmondson TRMC, City Secretary
ATTACHMENT A