2006R18-Memorandum of understanding for economic dev Schwab RoadRESOLUTION NO. 06-R-18
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING A MEMORANDUM OF
UNDERSTANDING FOR AN ECONOMIC DEVELOPMENT PROJECT
CONCERNING SCHWAB ROAD; AND OTHER MATTERS IN
CONNECTION THEREWITH
WHEREAS, the City Council (the "City Council") of the City of Schertz, Texas (the
"City") has determined that it is in the best interest of the City to enter into a Memorandum of
Understanding relating to a road project to stimulate economic development in conjunction with
new distribution and retail facilities; now, therefore,
THAT:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
Section 1. The City Council hereby authorizes the City Manager to execute and
deliver a Memorandum of Understanding containing the terms set forth on Exhibit A hereto,
with any additions and modifications which are not inconsistent with such terms.
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 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any provision of this Resolution are hereby repealed to the extent of such conflict, and the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 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, as amended, Texas Goveimnent Code.
Section 7. This Resolution shall be in force and effect from and after its final
passage, and it is so resolved.
Schwab Aoad Resol.doc
PASSED AND ADOPTED, this Is` day of August, 2006.
CITY OF SCH TZ, TEXAS
~~..--=~
Mayor
ATTEST:
~ eL-c~2~,t~--
ty Sec aiy
(CITY SEAL)
Schwab Road Resol.doc
EXHIBIT A
LACKS DISTRIBUTION CENTER/RETAIL SITE
SCHWAB ROAD PROJECT
MEMORANDUM OF UNDERSTANDING
Summary of Elements
Parties: City of Schertz (the "City"), Schertz Economic Development Corporation (the "4B
Corporation"), Comal County (the "County"), Charles Forbes ("Forbes"), and Lacks
Furniture ("Lacks")
Lacks Development: @ 350,000 sq. ft. Lacks distribution center and retail store
Development Site: to be located on 2 portions of an @192-acre tract currently owned by Forbes between
Schwab Road and Friesenhahn Road on the North frontage road of II3 35
Proposed Cooperative Public Project: realign and improve @ 3,350 linear feet of Schwab Road
currently bordering the Northeast side of the Forbes tract[ to provide better access to the
Lacks Development at an estimated cost of $975,000 (the "Project"); the City (or the 4B
Corporatior), the County, and Lacks will share the road construction cost equally; Forbes
will dedicate additional ROW as required; the County will provide its ROW as required;
Lacks' engineer will design the road to City standards to serve the Lacks Development
and eventual development by adjacent property owrrers; the City will bid and oversee
conshvction
Annexation: the City will annex the improved road (to the extent it is not already within the City's
corporate boundaries after realignment) and any abandoned County/Schwab Road ROW
when the Project is complete and will assume road maintenance responsibility; the
abandoned road/ROW will be quitclaimed to Forbes (and adjacent landowners?) by the
City as permitted by law
Reimbursement to the City and the County: the City (and the County -see "Documentation" below)
will investigate their authority to impose a roadway facility impact fee or other Project
reimbursement rnechanism upon property owners adjacent to the improved road to
require their fmancial participation in the cost of the Project as they develop their
property; payments received will be split evenly between the City and the County to
reimburse their shares of the Project costs
Incentive to Lacks by the City: rebate Lacks' inventory tax for 3 years, not to exceed a total of
$120,000, and a 10-year tax phase-in valued at @ $430,000
Clawback to the City and the County from Lacks: if Lacks does not start or complete the
Development by agreed dates, it will reimburse the City and the County for a portion of
their respective Project costs
' The Forbes tract is entirely within the corporate bowndaries of the City. Schwab Road, before realignment,
is entirely within the City's ETJ in the County.
Schwab Road Resol.doc A_ 1
Documentation: the transaction may be contained in a series of related documents, with particular
documents involving some but not all of the Parties; to the extent the County cannot
directly contract to take certain actions to be coordinated by the City and the County, but
the City can do so, the City and the County will work to structure agreements between
themselves to accomplish their joint goals.
Schedule: to be determined after the City and the County approve the concept of the concept of the
cooperative Project
Memorandum of Understandiug not legally binding: The Memorandum of Understanding to be
prepared is intended not to be legally binding but is intended to express the current goals
of the Parties in developing the Project. The Memorandum of Understanding is expected
to be expanded into one or more enforceable agreements among the Parties, which will
require further approvals by all Parties.
Schwab Road Resol.doc A_Z