26-R-006 Roadway Capital Recovery Offset Agreement-Ackermann SubdivisionRESOLUTION 26-R-006
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS, AUTHORIZING A ROADWAY CAPITAL
RECOVERY OFFSET AGREEMENT WITH THE
DEVELOPER OF THE ACKERMANN SUBDIVISION AND
OTHER MATTERS IN CONNECTION THEREWITH.
WHEREAS, the Developer of the Ackermann Subdivision constructed a new lane
segment of Eckhardt Road along the subdivision; and
WHEREAS, Eckhardt Road is an undivided collector roadway on the City's adopted
roadway impact fee capital improvements plan; and
WHEREAS, per Section 395.023 Credits Against Roadway Facilities Fees of the Texas
Local Government Code stipulates that any construction of, contributions to, or dedications of off -
site roadway facilities agreed to or required by a political subdivision as a condition of
development approval shall be credited against roadway facilities impact fees otherwise due from
the development; and
WHEREAS, Section 78-178 Offsets and Credits Against Capital Recovery Fees stipulates
that the value of the offset shall be stated in service units; and
WHEREAS, the City Council finds it is in the best interest of the City to enter into the
offset agreement with the Developer of the Ackermann Subdivision.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS THAT:
Section 1. The City Council hereby authorizes the City Manager to execute a Roadway
Capital Recovery Offset Agreement, generally in the form attached in Exhibit "A" subject
to minor changes approved by the City Manager and City Attorney.
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 fmdings 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provision of this Resolution are hereby repealed to the extent of such conflict, and the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 day ofQV1,1141,14,Af , 2026.
U- - - 6
CITY OF SCHERTZ, TEXAS
Wa—IpModri6ez, ayor
City Secretary
EXHIBIT A
ROADWAY CAPITAL RECOVERY OFFSET AGREEMENT
THE STATE OF TEXAS §
GUADALUPE COUNTY §
ROADWAY CAPITAL RECOVERY OFFSET AGREEMENT
This Roadway Capital Recovery Offset Agreement (this "AGREEMENT") is
made by and between the City of Schertz (hereinafter "CITY"), a Texas Home Rule
municipality and Mustang Oaks, LLC (hereinafter "DEVELOPER"), a Texas limited
liability company created under the laws of Texas, collectively, the "PARTIES".
RECITALS
WHEREAS, pursuant to City of Schertz Code of Municipal Ordinances ("Code of
Ordinances" Chapter 78, Article VII, the City of Schertz has adopted Roadway Capital
Recovery Fees (sometimes hereinafter referred to as "Capital Recovery Fee"); and,
WHEREAS, pursuant to Code of Ordinances Section 78-178, where, in order to
serve new development, a developer is required to construct, contribute to, or dedicate,
capital improvement or facility expansion identified in the capital improvements plan, the
CITY and DEVELOPER may enter into this AGREEMENT whereby the DEVELOPER
is: (1) credited for the reasonable and necessary costs of the capital improvement or facility
expansion against the impact fees otherwise due from the new development; or (2)
reimbursed for all or a portion of the reasonable and necessary costs of the capital
improvement or facility expansion from impact fees as received from other new
developments that use the capital improvement or facility expansion; and,
WHEREAS, CITY and DEVELOPER desire to enter into this AGREEMENT in
order to memorialize Roadway Capital Recovery Fee Credits (sometimes hereinafter
referred to as the "Credits") achieved by DEVELOPER for reasonable and necessary costs
of the capital improvement or facility expansion (collectively the "System Facilities") it
incurred.
NOW THEREFORE, in consideration of the foregoing recitals and the mutual
covenants and agreements contained herein, and for other good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged, the PARTIES hereto,
intending to be legally bound, hereby agree as follows:
Article I.
PROJECT DESCRIPTION
A. Project. The project is the Ackermann Subdivision comprising of approximately fifty-
six (56) single-family lots or "Project".
B. Location. The Project is located on 19.55 acres of land in the City of Schertz, Guadalupe
County generally between Froboese Lane on the north, Eckhardt Road on the East, Green
Valley Road on the South, and Schwab Road on the West, as more particularly described
in Exhibit A.
Article II.
ROADWAY CAPITAL RECOVERY FEES
A. Roadway Capital Recovery Fees. The Roadway Capital Recovery Fee for the Project is
currently assessed as $1,614.54 per Service Unit (one vehicle mile of travel in the afternoon
peak hour of traffic — can also be referred to as "Vehicle Mile". City of Schertz Unified
Development Code § 78-173.). This assessment is based on the calculations set out in
Exhibit B, to this AGREEMENT.
Article III.
CAPITAL IMPROVEMENT PLAN IMPROVEMENTS MADE BY DEVELOPER
A. Rough Proportionality. The PARTIES acknowledge that as provided in Texas Local
Government Code Section 212.904, the CITY may require DEVELOPER to contribute a
portion of the costs of municipal infrastructure improvements by the making of dedications,
the payment of fees, or the payment of construction costs (collectively the "Infrastructure
Costs"), provided DEVELOPER'S portion of the Infrastructure Costs do not exceed the
amount required for infrastructure improvements that are roughly proportionate to the
impact of the Project.
Article IV.
ROADWAY CAPITAL RECOVERY FEE OFFSET CREDIT
A. Pro1ect's Roadway Capital Recovery Fee Offset Credit Calculation. As shown on
Exhibit C, to this AGREEMENT, the PARTIES agree to the following:
i. The total number of Service Units of capacity supplied by the System Facilities
contributed by the DEVELOPER is 97.19 vehicle miles added capacity.
ii. The Credit that DEVELOPER is eligible to receive is 29 lots.
iv. DEVELOPER shall receive the Credit for 29 lots upon completion of the public
improvements shown on Exhibit D; and the CITY'S acceptance of same for public
maintenance in accordance with the terms of applicable provisions of the Code of
Ordinances.
B. Offset Application to Future Platted Develol)ments. The offset may be used to reduce
Capital Recovery Fees imposed on new developments contained within the land subject to
the associated plat after the effective date of the AGREEMENT.
Article V.
REIMBURSEMENT OF EXCESS OFFSETS
A. Reimbursement of Excess Offsets. In addition to the Roadway Capital Recovery Fee
Offset Credits to be allotted to DEVELOPER pursuant to Article IV above, DEVELOPER
may apply for reimbursement of excess Service Units that the DEVELOPER provides
beyond the Project's expectation ("Excess Offsets") following either completion of all
development subject to the plat with which the Excess Offsets are associated or after ten
(10) years following execution of this AGREEMENT.
i. The DEVELOPER must apply for reimbursement within six months following
either:
a. Completion of the Project development subject to the plat with which the
excess offsets are associated; or
b. Ten years after the date of execution of this AGREEMENT.
ii. The excess reimbursement contemplated in this Article V shall be enforced in
accordance with the following terms:
a. The Excess Offset amount to be reimbursed shall be equal to the number of
excess offsets (expressed as a number of Service Units) multiplied by the
Capital Recovery Fee per Service Unit to be collected, as set forth herein in
effect on the date of execution of this AGREEMENT (which is $1,000), as set
forth in the capital recovery plan, established in accordance with the Code of
Ordinances Chapter 78, Article VII, in effect on the date of execution of this
AGREEMENT;
b. The amount to be reimbursed for Excess Offsets may be further equitably
reduced, if less than 50 percent of the number of Service Units in the plat, with
which the System Facilities giving rise to the excess offset, have been
developed on the date of application for excess offsets;
c. Repayment of Excess Offsets pursuant to this Article V, shall be made
within five years from the date of execution of an reimbursement agreement
that might be entered into between the PARTIES hereto pertaining to the
applicable Excess Offsets from roadway Capital Recovery Fees collected
within the same roadway service area in which the property in question is
located, subject to the availability of such funds;
d. Termination or reduction of the CITY's authority under state law to impose
Capital Recovery Fees for roadway facilities shall terminate or
correspondingly reduce any obligation of the CITY to make payments under
this AGREEMENT or any reimbursement agreement; and
e. In converting the Excess Offsets from Service Units to a dollar value, the
number of Service Units shall be multiplied by the value of a service unit
expressed in dollars using the rates in effect at the time this AGREEMENT
was executed; and
f. All Excess Offset amounts payable to DEVELOPER in accordance with the
terms of this Article V, shall be paid to DEVELOPER (via check) within thirty
(30) days after DEVELOPER has submitted reasonable documentation to the
City Manager at the CITY supporting its claim for payment for such Excess
Offsets. In the event CITY determines that additional reasonable
documentation is needed to support DEVELOPER's request, CITY must
request such additional reasonable documentation within ten (10) days of
receiving DEVELOPER's original submission. Such request for additional
reasonable documentation by the City shall extend the thirty (30) day
timeframe for payment set forth above day for day until such additional
reasonable information is provided by DEVELOPER. Notwithstanding the
foregoing however, in the event (a) CITY and DEVELOPER cannot agree as
to the documentation reasonably required for CITY to process
DEVELOPER's request for payment or (b) CITY refuses to pay
DEVELOPER any or all of the Excess Offsets being sought, within sixty (60)
days after the date of DEVELOPER's original submission, such actions shall
be deemed to be a refusal by CITY to pay DEVELOPER the requested Excess
Offset amounts being sought by DEVELOPER, and DEVELOPER may
pursue any and all remedies available to it under this Agreement for CITY's
failure to pay such amounts.
Article VI.
MISCELLANEOUS
The following miscellaneous provisions are made part of this AGREEMENT:
1. Additional Instruments. CITY and DEVELOPER agree and covenant to cooperate,
negotiate in good faith, and to execute such other and further instruments and documents
as may be reasonably required to fulfill the public purposes provided for and included
within this AGREEMENT.
2. Amendments. This AGREEMENT constitutes the entire understanding and agreement
of the PARTIES as to the matters set forth in this AGREEMENT. No alteration of or
amendment to this AGREEMENT shall be effective unless given in writing and signed by
the PARTY or PARTIES sought to be charged or bound by the alteration or amendment.
3. Applicable Law and Venue. This AGREEMENT shall be governed by and construed in
accordance with the laws of the State of Texas, and all obligations of the PARTIES created
hereunder are performable in Guadalupe County, Texas. Venue for any action arising under
this AGREEMENT shall lie in the state district courts of Guadalupe County, Texas.
4. Assignment. The DEVELOPER may assign this AGREEMENT with the CITY's
consent (such consent not to be unreasonably conditioned, withheld or delayed), but in no
event shall the offsets provided for in the AGREEMENT be transferred to any development
not subject to the plat associated with such offsets.
5. Binding Obligation. This AGREEMENT shall become a binding obligation on the
signatories upon execution by all signatories hereto. The CITY warrants and represents
that the individual executing this AGREEMENT on behalf of the CITY has full authority
to execute this AGREEMENT and bind the CITY to the same. DEVELOPER warrants and
represents that the individual executing this AGREEMENT on its behalf has full authority
to execute this AGREEMENT and bind it to the same.
6. Counterparts. This AGREEMENT may be executed in one or more counterparts, each
of which shall be deemed an original and all of which shall constitute one and the same
document.
7. Construction. The PARTIES acknowledge that the PARTIES and their counsel have
reviewed and revised the AGREEMENT and that the normal rule of construction to the
effect that any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of the AGREEMENT.
8. Notice and Opportunity to Cure. If either PARTY defaults in its obligations under this
AGREEMENT, the other PARTY must, prior to exercising a remedy available to that PARTY due
to the default, give written notice to the defaulting PARTY. specifying the nature of the alleged
default and the manner in which it can be satisfactorily cured, and extend to the defaulting PARTY
at least thirty (30) calendar days from receipt of the notice to cure the default. If the nature of the
default is such that it cannot reasonably be cured within the thirty (30) calendar day period, the
commencement of the cure within the thirty (30) calendar day period and the diligent prosecution
of the cure to completion will be deemed a cure within the cure period. Notwithstanding the
foregoing, the occurrence of a Bankruptcy Event shall result in immediate default hereunder
without opportunity to cure.
9. Enforcement. The City Attorney or his or her designee may enforce all legal rights and
obligations under this AGREEMENT without further authorization. DEVELOPER shall
provide to the City Attorney all documents and records that the City Attorney requests to
assist in determining DEVELOPER'S compliance with this AGREEMENT.
DEVELOPER may seek to enforce all legal rights and obligations under this
AGREEMENT at law or in equity.
10. Entire Agreement. This AGREEMENT constitutes the entire agreement between the
PARTIES with respect to the subject matter covered in this AGREEMENT. There is no
other collateral oral or written agreement between the PARTIES that, in any manner,
relates to the subject matter of this AGREEMENT, except as provided for in any Exhibits
attached hereto or duly approved amendments to this AGREEMENT, as approved by the
City Council of the City of Schertz, Texas.
11. Execution of AGREEMENT.
i. City Council has authorized the City Manager to execute this AGREEMENT on
behalf of the CITY, as evidenced by Resolution 26-R-006, dated
ii. Austin W. Hagauer is authorized to execute this AGREEMENT on
DEVELOPER'S behalf, as evidenced by Company Resolution, dated
, 2026 and attached hereto as Exhibit E.
12. Exhibits and Attachments. All Exhibits and Attachments referenced in this
AGREEMENT are attached hereto and incorporated herein for all purposes.
13. Force Majeure. It is expressly understood and agreed by the PARTIES to this
AGREEMENT that if the performance of any obligations hereunder is delayed by reason
of war, civil commotion, acts of God, inclement weather, fire or other casualty, or court
injunction, inability to obtain labor or materials or reasonable substitutes therefore,
governmental restrictions, governmental regulations, governmental controls, governmental
action, delay in issuance of permits or approvals (including, without limitation, fire marshal
approvals), enemy or hostile governmental action, civil commotion, fire or other casualty,
and other causes beyond the reasonable control of the obligated party and delays caused by
the other parry, the party so obligated or permitted shall be excused from doing or
performing the same during such period of delay, so that the time period applicable to such
obligation or requirement shall be extended for a period of time equal to the period
such party was delayed.
14. Gender. The gender of the wording throughout this AGREEMENT shall always be
interpreted to mean either sex, and where the context requires, the plural of any word shall
include the singular.
15. Governmental Records. All invoices, records and other documents required for
submission to the CITY pursuant to the terms of this AGREEMENT are Governmental
Records for the purposes of Texas Penal Code Section 37.10.
16. Immunities and defenses.
i. By entering into this AGREEMENT, the PARTIES do not waive, and shall not be
deemed to have waived, any rights, immunities, or defenses either may have,
including the defense of the PARTIES, and nothing contained herein shall ever be
construed as a waiver of sovereign, statutory or official immunity by the CITY with
such rights being expressly reserved to the fullest extent authorized by law and to
the same extent which existed prior to the execution hereof.
ii. No employee of CITY, or any councilmember or agent of CITY, shall be
personally responsible for any liability arising under or growing out of this
AGREEMENT.
17. Mutual Assistance. CITY and DEVELOPER will do all things reasonably necessary or
appropriate to carry out the terms and provisions of this AGREEMENT and to aid and
assist each other in carrying out such terms and provisions.
18. Notices. Any notice, statement and/or communication required and/or permitted to be
delivered hereunder shall be in writing and shall be mailed by first-class mail, postage
prepaid, or delivered by hand, by messenger, by facsimile, or by reputable overnight
carrier, and shall be deemed delivered when received at the addresses of the PARTIES set
forth below, or at such other address furnished in writing to the other PARTIES thereto:
If to Developer:
Mustang Oaks, LLC
Attention: Austin W. Hagauer
18602 Castellani
San Antonio, Texas 78258
With cop i• to:
Brown & McDonald, PLLC
Attention: Caroline McDonald
100 NE Loop 410, Suite 1385
San Antonio, Texas, 78216
If to the City:
City of Schertz
Attention: City Manager
1400 Schertz Parkway
Schertz, Texas 78154
With cot)v to:
Denton Navarro Rodriguez Bernal Santee & Zech, P.C.
Attention: T. Daniel Santee
2517 N. Main Avenue
San Antonio, Texas 78212
19. Ordinance Applicability. The signatories hereto shall be subject to all ordinances of
CITY, whether now existing or in the future arising provided however no ordinance shall
reduce or diminish the contractual obligations contained herein. This AGREEMENT shall
confer no vested rights on the Project unless specifically enumerated herein.
20. Severability. In the event any provision of this AGREEMENT is illegal, invalid, or
unenforceable under the present or future laws, then, and in that event, it is the intention of
the PARTIES hereto that the remainder of this AGREEMENT shall not be affected
thereby, and it is also the intention of the PARTIES to this AGREEMENT that in lieu of
each clause or provision that is found to be illegal, invalid, or unenforceable a provision be
added to this AGREEMENT which is legal, valid and enforceability and is a similar in
terms as possible to the provision found to be illegal, invalid or unenforceable.
21. Survival of Covenants. Any of the representations, warranties, covenants, and
obligations of the PARTIES, as well as any rights and benefits of the PARTIES, pertaining
to a period of time following the termination of this AGREEMENT shall survive
termination.
EXECUTED in duplicate originals to be effective as of the date of the last signature below
(the "Effective Date").
Sh.,nature Pate to
Roadway Capital Recovery Offset A�,,reement
This Roadway Capital Recovery Offset Agreement has been executed by the
PARTIES as of the dates of the Acknowledgments to be effective as of the Effective
Date.
Develot?er:
MUSTANG OAKS, LLC, a Texas
limited liability company
By:
Name:
Date:
THE STATE OF TEXAS §
COUNTY OF §
Austin W. Hagauer, Manager
This instrument was acknowledged before me on the day of
2026 by Austin W. Hagauer, Manager of Mustang Oaks, LLC, a Texas limited
liability company.
(SEAL)
Notary Public in and for
The State of Texas
My Commission Expires:
Signature Page to
Roadway Capital Recovery Offset A�.,reement
This Roadway Capital Recovery Offset Agreement has been executed by the
PARTIES as of the dates of the Acknowledgments to be effective as of the Effective
Date.
Cam:
CITY OF SCHERTZ,
a Texas municipal corporation
By:
Name: Steve Williams, City Manager
Date:
THE STATE OF TEXAS §
COUNTY OF GUADALUPE §
This instrument was acknowledged before me on the day of ,
2026 by Steve Williams, City Manager of the City of Schertz, Texas, a Texas
municipal corporation, on behalf of said City.
(SEAL)
Notary Public in and for
The State of Texas
My Commission Expires:
EXHIBIT "A"
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EXHIBIT "B"
Roadway Capital Recovery Fees
Roadway Impact Fee Cost Cakulation Worksheet
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EXHIBIT "C"
Roadway Capital Recovery Fee Offset Credit Calculation
Ackermann Subdivision Roadway Impact Estimate
Service Area 1
SF Lots 56
CIP ID: 17A- Eckhardt Road
Projected Vehicle Miles
Single -Family detached housing = 3.37 Veh-Mi per Development Unit
Development Units = 56 SF Lots
Total Projected Vehicle Miles = (Development units x Veh-Mi per Development Unit)
= 188.72 Vehicle Miles of new demand
Roadway Improvement - added capacity
Roadway Type of Roadway Veh-Mi capacity Veh-Mi Capacity per
per lane mile lane foot
Eckhardt Road Undivided Collector 500 = 0.0947
Eckhardt Road Improvements = 1026.4 LF (1 Lane)
= 1026.4 x 0.0947
97.19 Veh-Mi added Capacity
Impact fee offset Credit due = 28.84 Lots
EXHIBIT "D"
Proposed Public Improvement
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EXHIBIT "E"
Developer Resolution
RESOLUTION ADOPTED BY UNANIMOUS WRITTEN
CONSENT OF THE SOLE MANAGER OF
MUSTANG OAKS, LLC
The undersigned being the sole manager of Mustang Oaks, LLC, a Texas limited
liability company, does hereby consent to take the following actions, to adopt the following
resolutions and to transact the following business of the company:
Resolved, that Austin W. Hagauer, President of Mustang Oaks, LLC, be and he is
hereby authorized to execute and deliver to the City of Schertz the Roadway Capital
Recovery Offset A.:reement dated , 2026.
This consent is executed pursuant to the Texas Business Organizations Code which
authorizes the taking of action by managers by unanimous written consent without a
meeting.
Effective as of the day of , 2026.
Austin W. Hagauer, Manager