12-R-93 380 Agreement wtih the City of Schertz, the City of Schertz Economic Development Corporation, and the Center for EntrepreneurshipRESOLUTION NO. 12-R-93
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AUTHORIZING A CHAPTER 380 AGREEMENT
WITH THE CITY OF SCHERTZ, THE CITY OF SCHERT7~ ECONOMIC
DEVELOPMENT CORPORATION, AND THE CENTER FOR
ENTREPRENEURSHIP, AND OTHER MATTERS IN CONNECTION
THEREWITH
WHEREAS, the City of Schertz Economic Development Corporation ("SEDC") has been
established by the City of Schertz (the "City") pursuant to the Development Corporation Act to
promote economic development in Schertz by sponsoring and funding economic development
projects; and
WHEREAS, by Ordinance No. 12-T-15 the City established the City of Schertz
Economic Development Inventive Policy under Chapter 380, Texas Local Government Code, as
amended, and the Development Corporation Act, Title 12, Subtitle Cl, Local Government Code,
as amended (formerly Article 5190.6, Texas Revised Civil Statutes, as amended), to promote
economic development and to stimulate business and commercial activity in Schertz; and
WHEREAS, the City is authorized by the provisions of Article III, Section 52-a of the
Texas Constitution and Section 380.001 of the Texas Local Government Code to provide grants
of public money to promote local economic development and to stimulate business and
commercial activity in Schertz; and
WHEREAS, The Center for Entrepreneurship, a Texas non-profit corporation (the
"Center"), has contracted with The University of Texas at San Antonio, an institution of the
University of Texas System and an agency of the State of Texas, to operate a small business
development center in New Braunfels, which is conducting business as the UTSA SBDC
Satellite Office -New Braunfels (the "UTSA SBDC"); and
WHEREAS, the Center, through the UTSA SBDC, provides small business development
services, including assisting small companies with developing business plans, setting up
businesses, and applying for Small Business Administration loans from local banks, at the UTSA
SBDC to citizens of Schertz; and
WHEREAS, the Center desires to continue to operate the UTSA SBDC, which will
increase the tax base of the applicable taxing entities and enhance job opportunities for area
citizens; and
WHEREAS, the SEDC approved The Center for Entrepreneurship Chapter 380
Agreement between the City, the SEDC, and the Center, which agreement is attached hereto as
Exhibit A (the "Agreement"), at a regular board meeting of the SEDC on September 27, 2012;
and
50543690.2 1
WHEREAS, the Agreement provides for an economic development incentive authorized
by Chapter 380 of the Texas Local Government Code to the Center related to the operations of
the UTSA SBDC; and
WHEREAS, the City staff of the City has recommended that the City enter into the
Agreement; and
WHEREAS, the City Council has determined that it is in the best interest of the City to
contract with the SEDC and the Center pursuant to the Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. The City Council hereby authorizes the City Manager, or his designee, to
execute and deliver the Agreement with the SEDC and the Center in substantially the form set
forth on Exhibit A.
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.
50543690.2
PASSED AND ADOPTED, this 9`~' day of October, 2012.
CITY OF SCHERTZ, TEXAS
a ro-Tem, George Antuna
ATTEST:
~~nmf.D
rend~~~City Secretary
(CITY SEAL)
50543690.2
EXHIBIT A: THE CENTER FOR ENTREPRENEURSHIP CHAPTER 380 AGREEMENT
sosa369o.z 4
THE STATE OF TEAS
COUNTY OF CO1vIAL
The undersigned, Secretary of 'Phe Cente~° fo~~ Lntrep~°eneu~°ship, a Texas non
profit corporation (the "Center"), does hereby certify that a quorum of the Board of
Directors of the Center was present at the meeting of the Board of Directors of the Center
on August 1, 2012, and the following Resolutions were made and duly adopted by a
unanimous vote of the directors present at the meeting, to~wif:
SOL~l~, that the Center authorizes and approves entering into that certain
Chapter 380 Agreement between the Center, the City of Schertz, Texas, a Texas home
rule municipality, and the City of Schertz Economic Development Corporation, a Texas
nonprofit industrial development corporation, a draft of which is attached hereto as
Exhibit "A" and incorporated herein for all purposes (the " 380 Agreement"}; and further
I2ESOLVEI), that the President be and hereby is authorized and directed, for and
on behalf of the Center to negotiate for such modifications, amendments, additions and
alterations as the President, in the exercise of his judgement, shall determine to be in the
best interests of the Center; and further
12>ESOL~IEI), that the President of the Center be, and is hereby authorized and
directed, for and on behalf and as the act and deed of the Center, to execute and deliver
1) the Chapter 3110 Agreement, as modified in the course of negotiations,,, and 2) all
documents related to or required by the 380 Agreement; and further,,,,;;;... _~ . ° :'
f,
,:
RESOL'V1ED, that all actions heretofore taken by such off~cer~bf-th`e- Center on
behalf of the Center in negotiating the 380 Agreement are hereby ra>~ed,4confirmed, and
approved; and further
12LSOL~D, that such officer shall take such other actions and do such other
things as may be necessary or appropriate in order to carry into effect the foregoing
Resolutions.
And I further certify that the said Resolutions are shown on the records of the Center, and
have not been amended, altered, or revoked.
~Sig~latuf•e a»d acknowledger~~ent on the following page.J
Certificate of Corporate Resolutions-The Center for Entrepreneurship Page 1 of 2
XN ~dI'~'NESS ~~HEREO~' ,the undersigned has executed this Certiitcate of
Corporate Resolutions as of the /~~ day of October, 2012.
'S'HE ~E1~T~R FOR ~I~1`~'pRE1~lE~.TltS~,
a Texas nonprofit corporation
/~ ~s)r l
r
Name: Rusty 13roclcman
Title; Secretary
THE STATE OF TEAS §
COUNTY OF COMAL §
This instrument was acknowledged before me on the jr~`~'day of October, 2012,
by Rusty Brockman, the Secretary of The Center for Entrepreneurship, aTexas non
profit corporation, on behalf of said nonprofit corporation.
[SEAL]
r~~o ~ CHRISTA C®®Ll(
t~;~1 HOiARYFi~UCSiATEOFTE)tA3
9~ ~}rf~ O eiDN ®XPISdEB:
~y~OF'SEr ®~-~®~~
printed Name of Notary
My commission expires:.
Certificate of Corporate Resolutions-The Center for Entrepreneurship Page 2 of 2
THE CENTER FOR ENTREPRENEURSHIP
CHAPTER 380 AGREEMENT
This Chapter 380 Agreement (this "Agreement") is entered into to be effective as of the
date of the last signature of the Parties (the "Effective Date") among the City of Schertz, Texas, a
Texas home-rule municipality ("Schertz"), the City of Schertz Economic Development
Corporation, a Texas non-profit industrial development corporation (the "SEDC"), and The
Center for Entrepreneurship, aTexas non-profit corporation (the "Center") (Schertz, the SEDC,
and the Center, together, the "Parties").
WITNESSETH:
WHEREAS, by Ordinance No. 12-T-15, Schertz established a City of Schertz Economic
Development Incentives Policy (the "Gifu Program") under Chapter 380, Texas Local
Government Code, as amended (the "Code"}, and the Development Corporation Act, Title l2,
Subtitle Cl, Local Government Code, as amended (formerly Article 5190.6, Texas Revised Civil
Statutes, as amended), to promote economic development and to stimulate business and
commercial activity in Schertz•, and
WHEREAS, the SEDC has been established by Schertz pursuant to the Development
Corporation Act to promote economic development in Schertz by sponsoring and funding
economic development projects; and
WHEREAS, Schertz is authorized by the provisions of Article III, Section 52-a of the
Texas Constitution and Section 380.001 of the Code to provide grants of public money to promote
local economic development and to stimulate business and commercial activity in Schertz; and
WHEREAS, the Center has contracted with The University of Texas at San Antonio, an
institution of the University of Texas System and an agency of the State of Texas (~~UTSA"), to
operate a small business development center (the "Proieet") in New Braunfels, which Project is
conducting business as the UTSA SBDC Satellite Office -New Braunfels (the "UTSA SBDC") in
accordance with the business plan set forth on Appendix B attached hereto and incorporated herein
for all purposes; and
WHEREAS, the Center, through its agreement with UTSA, has developed and adopted a
plan for the Project's ongoing operation and ultimate performance; and
WHEREAS, the Center, through the UTSA SBDC, provides small business development
services, including assisting small companies with developing business plans, setting up businesses,
and applying for Small Business Administration loans from local banks, at the Project to citizens of
Schertz; and
WHEREAS, the Center desires to continue to operate the Project, which will increase the
tax base of the applicable taxing entities and enhance job opportunities for area citizens; and
SOS I A098.5
WHEREAS, the Project will help (1) develop and diversify the economy of the state, (2)
eliminate unemployment and underemployment in the state, and (3) develop and expand the
commerce in the state; and
WHEREAS, the Parties acknowledge that the continued operation of the UTSA SBDC
requires capital investment by the SEDC to the Center to fund part of the Project; and
WHEREAS, Schertz and the SEDC desire to provide an economic development incentive
to the Center in order to encourage the expansion of the tax base, the creation and retention of job
opportunities in Schertz, the development and diversification of the economy of the state, the
elimination of unemployment and underemployment in the state, and the development and
expansion the commerce in the state; and
WHEREAS, the Parties aze entering into this Agreement for the purpose of setting forth
their respective obligations.
NOW THEREFORE, in consideration of the foregoing and the mutual agreements,
covenants, and payments authorized herein and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows:
ARTICLE I
DEFINITIONS
1.1 Defined Terms. Wherever used in this Agreement, the following terms shall
have the meanings ascribed to them below:
"Advising Client" means an individual Schertz resident or business owner who is actively
pursuing a business opportunity within the corporate limits of Schertz who uses the professional
services provided by the Center's UTSA SBDC.
"Advising Hours" means the amount of time an individual Schertz resident or business
owner who is actively pursuing a business opportunity within the corporate limits of Schertz spends
with the personnel of the Center's UTSA SBDC working on plans to create, operate, or expand a
business within the corporate limits of Schertz.
"Business Exnansion" means an Existing Business that has expanded as a direct result of
services received from the Center's UTSA SBDC, either by a Capital Infiasion or by the addition of
one or mare New Jobs.
"Calendar Year" means January 1 through December 31 of a given yeaz.
"Canital Infusion" means the total amount of added investment, whether cash or debt, into
a business that is located within the corporate limits of Schertz.
"Certification Affidavit" means a Certification Affidavit Regarding Quarterly Reports in
the form set forth on Aupendix C attached hereto and incorporated herein for all purposes.
50514098.5 _ 2 _
"City Council" means the City Council of the City of Schertz, Texas.
"Event of Bankruptcy or Insolvency" means the dissolution or termination of the Center's
existence as a going business, the Center's insolvency, appointment of receiver for any significant
part of the Center's property with such appointment not being terminated within ninety (90) days
after such appointment is initially made, any general assignment for the benefit of the Center's
creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or
against the Center with such proceeding not being dismissed within ninety (90) days after the filing
thereof.
"Existing Business" means a business that is already established within the corporate limits
of Schertz.
"Expiration Date" has the meaning ascribed to it in Section 2.3.
"Final Evaluation Point" has the meaning ascribed to it in Section 4.2.
"Fiscal Year" means the fiscal year of Schertz, being October 1 of a given year through
September 30 of the following year.
"Governmental Authority" means any federal, state, or local governmental entity having
jurisdiction over the matter in question.
"Governmental Rule" means any applicable law, rule, or regulation of a Governmental
Authority.
"Incentive" has the meaning ascribed to it in Section 4.1.
"Initial Incentive" has the meaning ascribed to it in Section 4.1.
"New Business" means a business that is located within the corporate limits of Schertz that
is established for the first time.
"New Jobs" means full-time employment opportunities that are created at a business
located within the corporate limits of Schertz.
"Ou uts" has the meaning ascribed to it in Section 2.3.
"Profile Report" means a report showing the zip code of all of the participants at the
Center's UTSA SBDC who are Schertz residents or business owners and who are actively pursuing
a business opportunity within the corporate limits of Schertz.
"Retained Jabs" means full-time employment opportunities at a business located within
the corporate limits of Schertz that are preserved as a result of training received by the Center's
UTSA SBDC.
"Second Incentive" has the meaning ascribed to it in Section 4.1.
50514098.5 - 3 -
"Training Client" means a Schertz resident or business owner who is actively pursuing a
business opportunity within the corporate limits of Schertz who attends a Training Event.
"Training Event" means an event facilitated by the a Center's UTSA SBDC meant to
instruct a group of participants regarding the skills associated with small business creation,
operation, or expansion.
ARTICLE II
GENERAL PROVISIONS
2.1 Recitals. The recitals to this Agreement are incorporated herein for all purposes.
2.2 Pu_ rpose. The specific purpose of this Agreement is to provide economic benefits
to the Center in order for the Center to be able to continue to operate the Project. This action will
be a significant contribution toward the SEDC's broader purpose of stimulating and encouraging
business and commercial activity in Schertz, creating more job opportunities, building the sales
tax base, promoting a partnership relationship with the private sector businesses that will bring
additional employment projects into Schertz, developing and diversifying the economy of the
state, eliminating unemployment and underemployment in the state, and developing and
expanding the commerce in the state.
2.3 Term. The term of this Agreement shall begin on the Effective Date and
terminate on the date which is twelve (12} months after the Effective Date (the "Expiration
Date"), unless sooner terminated as provided herein.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
3.1 Representations of the Center. The Center hereby makes the following
representations, warranties, and covenants to Schertz and the SEDC as of the Effective Date:
(a) Existence. The Center is a Texas non-profit corporation duly created and
validly existing under the laws of the State of Texas. The Center has all
requisite power and authority to enter into this Agreement.
(b) Authorization. The execution, delivery, and performance by the Center of
this Agreement have been duly authorized by all necessary action and wilt
not violate the organizational documents of the Center or result in the
breach of or constitute a default under any loan or credit agreement, or
other material agreement to which the Center is a party or by which the
Center or its material assets may be bound or affected. The execution of
this Agreement by the Center does not require any consent or approval that
has not been obtained, including without limitation the consent or approval
of any Governmental Authority.
sost4D9a.5 .4 _
(c) Enforceable Obligations. Assuming due authorization, execution, and
delivery by each other Party hereto, this Agreement, all documents
executed by the Center pursuant hereto, and all obligations of the Center
hereunder and thereunder are enforceable against the Center in accordance
with their respective terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, or other similar laws affecting the
enforcement of creditor's rights generally, and by general equity principles
(regardless of whether such enforcement is considered in a proceeding in
equity or at law).
(d) No Legal Bar. The execution and delivery of this Agreement and the
performance of its obligations hereunder by the Center will not conflict
with any provision of any law, regulation, or Governrnental Rules to which
the Center is subject or conflict with, or result in a breach of, or constitute
a default under any of the terms, conditions, or provisions of any
agreement or instrument to which the Center is a party or by which it is
bound or any order or decree applicable to the Center.
(e) Litigation. There are no legal actions or proceedings pending or, to the
knowledge of the Center, threatened against the Center which, if adversely
determined, would materially and adversely affect the ability of the Center
to fulfill its obligations under this Agreement or the financial condition,
business, or financial or business prospects of the Center.
(f) Documents. All documents made available by the Center, UTSA, and the
UTSA SBDC to Schertz and the SEDC including without limitation all
ftnancial documents relating to the Center, the Project, and the UTSA
SBDC are true, correct, and complete copies of the instruments which they
purport to be and accurately depict the subject matter addressed therein.
(g) Knowledge. The Center has no knowledge of any facts or circumstances
which currently evidence, or with the passage of time would evidence, that
any of the representations made by the Center under this Agreement are in
any way inaccurate, incomplete, or misleading.
3.2 Disclaimer. THE CENTER ACKNOWLEDGES THAT, EXCEPT FOR
SCHERTZ'S AND THE SEDC'S EXPRESS REPRESENTATIONS AND WARRANTIES
CONTAINED WITHIN THIS AGREEMENT, IF ANY, NEITHER SCHERTZ, THE SEDC,
NOR ANY EMPLOYEE, OFFICER, ELECTED OFFICIAL, REPRESENTATIVE, OR AGENT
OF SCHERTZ OR THE SEDC, NOR ANY RELATED PARTY OF SCHERTZ OR THE
SEDC, HAS MADE ANY REPRESENTATION OR WARRANTY WHATSOEVER
(WHETHER EXPRESS OR IMPLIED) REGARDING THE SUBJECT MATTER OF THIS
AGREEMENT, OTHER THAN THE EXPRESS REPRESENTATIONS AND WARRANTIES
CONTAINED IN THIS AGREEMENT, IF ANY.
50514098.5 _ 5 _
ARTICLE IV
INCENTIVE PROVIDED BY SCHERTZ
4.1 Economic Development Incentive. Subject to the Center's continued fulfillment
of all the terms of this Agreement, SEDC, through a grant to the SEDC from Schertz authorized
by Chapter 380 of the Code, hereby agrees to provide the Center Twenty Thousand and No/100
Dollars ($20,000.00), all to be used by the Center solely for costs of the Project, including, but
not limited to, the direct costs of the UTSA SBDC office facilities (the "Initial Incentive"). The
Initial Incentive will be paid within fifteen (15) days after the Effective Date of this Agreement.
In addition, to the extent the Center meets the criteria set forth in Section 4.2, the SEDC, through
a grant to the SEDC from Schertz authorized by Chapter 380 of the Code, hereby agrees to
provide the Center not to exceed Twenty-Two Thousand Three Hundred and No/100 Dollars
($22,300.00), all to be used by the Center solely for costs of the Project, as described above (the
"Second Incentive", and collectively with the Initial Incentive, the "Incentive").
4.2 Criteria and Procedure for Second Incentive. The Second Incentive will be
paid in a single payment within fifteen (IS) days after the SEDC's receipt of the quarterly report
for September 30, 2012 (the "Final Evaluation Point") and for the three preceding quarters (all
such reports being in accordance with the requirements of Section 4.3), along with an
accompanying Certification Affidavit.
If the Center satisfies all of the Outputs described in Appendix A by the Final Evaluation
Point, the Center shall receive the entire Second Incentive. In the event that the Center only
partially achieves the Outputs by the Final Evaluation Point, the Center shall receive a prorata
portion of the Second Incentive, and such prorata portion shall be computed according to a four
(4) factor formula. The formula is set forth in the following table, in an example format that
assumes hypothetical actual Outputs:
Output Outputs
Goals Actual
Outputs Percentage
Success
Factor Percentage
Contribution
Number of Advising Clients 52 26 50.00% .25 12.50%
Number of Advising Hours 413.75 300 72.50% .25 18.13%
Number of Training Clients 30 15 50.00% .25 12.50%
Number of Training Events 2 2 100.00% .2S 25.00%
Payment as percentage of Second Incentive 68.13%
Amount of Second Incentive $15,192.99
50514098,5 _ ( .
Notwithstanding anything herein to the contrary, in no event shall the Second Incentive
exceed Twenty-Two Thousand Three Hundred and No/100 Dollars ($22,300.00).
4.3 Quarterly Reports. The quarterly report for the quarter ending September 30,
2012 shall be in the format utilized for the quarterly reports for the quarters ending December 31,
2011, March 31, 2012, and June 30, 2012 and shall be delivered to the SEDC, along with the
Certification Affidavit, no later than forty-five (45) days after September 30, 2012, detailing the
activities of the Project, which report shall include, at a minimum, the following Schertz-specific
information:
(a) Quarterly Profile Report and year-to-date Profile Report;
(b) Quarterly total and year-to-date number of Advising Clients;
(c) Quarterly total and year-to-date number of Training Clients;
(d) Quarterly total and year-to-date number of Advising Hours;
(e) Quarterly total and year-to-date number of Training Events;
(f) Quarterly total and year-to-date number of New Businesses;
(g) Quarterly total and year-to-date number of Business Expansions;
(h) Quarterly total and year-to-date number of New Jobs;
(i) Quarterly total and year-to-date number of Retained Jobs; and
(j) Quarterly total and year-to=date amount of Capital Infusion.
Notwithstanding anything herein to the contrary, the Center shall deliver to the SEDC a single
Certification Affidavit for the four quarterly reports for the quarters ending December 3l, 2011,
March 31, 2012, June 30, 2012, and September 30, 2012. The Parties agree that the SEDC shall
not be obligated to deliver the payment for the Second Incentive to the Center until after the
SEDC has received such Certification Affidavit.
ARTICLE V
THE CENTER'S RESPONSIBILITIES
5.1 Minimum Term of Operation..The Center shall operate the Project at least until
the Expiration Date.
5.2 No Employment of Undocumented Workers. The Center certifies and agrees
as follows:
(a) the Center certifies that its operation within Schertz or the State of Texas
will not knowingly employ an undocumented worker, as defined in
50514098.5 .. 7
Chapter 2264, Subchapter A, Texas Government Code, as amended (the
"Act"); and
(b) pursuant to the Act, if the Center is convicted of a violation under 8 U.S.C.
Section 1324a(f) with respect to its operations in Schertz or the state, after
receiving all or any portion of the "public subsidy" (as defined in the Act)
authorized by this Agreement, the Center shall (x) promptly give Schertz
written notice of such violation, and (y) repay the amount of the public
subsidy with interest, at the rate of the prime rate of interest per annum of
the Schertz's depository bank (the "Bank") in effect on the date the Center
notifies Schertz of the violation. Such repayment shall be made not later
than the 120th day after the date the Center notifies Schertz of the
violation.
This Section 5.2 shall survive the termination of this Agreement.
ARTICLE VI
TERMINATION
6.1 Termination. This Agreement shall terminate upon the occurrence of any one or
more of the following:
(a) the Expiration Date;
(b) the execution by all Parties of a written agreement terminating this
Agreement;
(c) at the option of a Party in the event any other Party breaches any of the
material terms or conditions of this Agreement and such breach is not
cured within thirty (30) days after written notice thereof, or, if such breach
is not susceptible of cure within thirty (30) days, such period of time
thereafter as the breaching Party diligently pursues the cure thereof, but in
any event if such breach is not cured within one hundred eighty (180) days
after written notice thereof;
(d) at the option of Schertz and the SEDC, if the Center suffers an Event of
Bankruptcy or Insolvency;
(e) at the option of Schertz, if any ad valorem taxes owed to Schertz by the
Center (both real property and personal property) shall become delinquent
(provided, however the Center retains the right to timely and properly
protest and contest any such ad valorem taxes);
(f) any subsequent federal or state legislation or any decision by a court of
competent jurisdiction declares or renders this Agreement invalid, illegal,
or unenforceable.
50514098.5 _ g _
6.2 Repayment of Incentive. In the event this Agreement is terminated by Schertz
pursuant to Sections 6.1(c)-(fl within six (6) months of the Effective Date, then the Center shall
immediately pay to Schertz an amount equal to the total Incentive provided to the Center by
Schertz preceding the date of such termination, plus interest at the rate periodically announced by
the Wall Street Journal as the prime or base commercial lending rate, or if the Wall Street
Journal shall ever cease to exist or cease to announce a prime or base lending rate, then at the
annual rate of interest from time to time announced by the Bank (or by any other New York
money center bank selected by Schertz) as its prime or base commercial lending rate, from the
date of termination until paid. In the event this Agreement is terminated by Schertz pursuant to
Sections 6.1(c)-(fl more than six (6) months and less than one (1) year after the Effective Date,
then the Center shall immediately pay to Schertz an amount equal to fifty percent (50%) of the
total Incentive provided to the Center by Schertz preceding the date of such termination, plus
interest at the rate periodically announced by the Wall Street Journal as the prime or base
commercial lending rate, or if the Wall Street Journal shall ever cease to exist or cease to
announce a prime or base lending rate, then at the annual rate of interest from time to time
announced by the Bank (or by any other New York money center bank selected by Schertz) as its
prime or base commercial lending rate, from the date of termination until paid.
ARTICLE VII
INDEMNIFICATION, ATTORNEYS' FEES, AND OTHER REMEDIES
7.1 THE CENTER COVENANTS AND AGREES TO FULLY INDEMNIFY AND
HOLD HARMLESS SCHERTZ, THE SEDC, AND THE ELECTED OFFICIALS,
EMPLOYEES, OFFICERS, DIRECTORS, VOLUNTEERS, REPRESENTATIVES, AND
AGENTS OF SCHERTZ AND THE SEDC (COLLECTIVELY, THE "INDEMNIFIED
PARTIES"), INDIVIDUALLY OR COLLECTIVELY, FROM AND AGAINST ANY AND
ALL COSTS, CLAIMS, LIENS, DAMAGES, LOSSES, EXPENSES, FEES, FINES,
PENALTIES, PROCEEDINGS, ACTIONS, DEMANDS, CAUSES OF ACTION,
LIABILITIES, AND SUITS OF ANY KIND AND NATURE, INCLUDING BUT NOT
LIMITED TO, PERSONAL OR BODILY INJURY, DEATH AND PROPERTY DAMAGE,
MADE UPON THE INDEMNIFIED PARTIES, DIRECTLY OR INDIRECTLY ARISING OUT
OF, RESULTING FROM, OR RELATED TO THE CENTER'S ACTIVITIES UNDER THIS
AGREEMENT, INCLUDING ANY ACTS OR OMISSIONS OF THE CENTER, ANY AGENT,
OFFICER, DIRECTOR, REPRESENTATIVE, EMPLOYEE, CONSULTANT,
CONTRACTOR, OR SUBCONTRACTOR OF THE CENTER, AND THEIR RESPECTIVE
OFFICERS, AGENTS, EMPLOYEES, DIRECTORS, AND REPRESENTATIVES, WHILE IN
THE EXERCISE OR PERFORMANCE OF ~ THE RIGHTS OR DUTIES UNDER THIS
AGREEMENT, ALL WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL
IMMUNITY AVAILABLE TO SCHERTZ AND THE SEDC UNDER TEXAS LAW AND
WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. THE
PROVISIONS OF THIS INDEMNIFICATION ARE SOLELY FOR THE BENEFIT OF THE
INDEMNIFIED PARTIES AND NOT INTENDED TO CREATE OR GRANT ANY RIGHTS,
CONTRACTUAL OR OTHERWISE, TO ANY OTHER' PERSON OR ENTITY. THE
50514098,5 . q _
CENTER SHALL PROMPTLY ADVISE SCHERTZ AND THE SEDC IN WRITING OF ANY
CLAIM OR DEMAND AGAINST THE INDEMNIFIED PARTIES OR THE CENTER
KNOWN TO THE CENTER AND RELATED TO OR ARISING' OUT OF THE CENTER'S
ACTIVITIES UNDER THIS AGREEMENT AND SHALL SEE TO THE'INVESTIGATION
AND DEFENSE OF SUCH CLAIM OR DEMAND AT THE CENTER'S COST. THE
INDEMNIFIED PARTIES SHALL HAVE THE RIGHT, AT THEIR OPTION AND AT THEIR
OWN EXPENSE, TO PAR'T'ICIPATE IN SUCH DEFENSE WITHOUT RELIEVING THE
CENTER OF ANY OF ITS OBLIGATIONS UNDER THIS PARAGRAPH. THE CENTER
FURTHER AGREES TO DEFEND, AT ITS OWN EXPENSE AND ON BEHALF OF THE
INDEMNIFIED PARTIES AND IN THE NAME OF THE APPLICABLE INDEMNIFIED
PARTY, ANY CLAIM OR LITIGATION BROUGHT AGAINST THE INDEMNIFIED
PARTIES IN CONNECTION WITH ANY SUCH INJURY, DEATH, OR DAMAGE FOR
WHICH THIS INDEMNITY SHALL APPLY, AS SET FORTH ABOVE. THE, CENTER'S
OBLIGATIONS UNDER THIS SUBSECTION SHALL SURVIVE THE TERMINATION OF
THIS AGREEMENT.
7.2 Iadegendent Operator. It is expressly understood and agreed that the Center is
and shall be deemed to be an independent operator responsible to Schertz and the SEDC for its
respective acts or omissions and that Schertz and the SEDC shall in no way be responsible
therefore.
7.3 Attorneys' Fees and Expenses. In the event that the Center should default under
any of the provisions of this Agreement and Schertz or the SEDC should employ attorneys or
incur other expenses for the collection of the payments due under this Agreement or the
enforcement of performance or observance of any obligation or agreement on the part of the
Center herein contained, the Center agrees to pay to Schertz and the SEDC reasonable fees of
such attorneys and such other expenses so incurred by Schertz and the SEDC.
7.4 Non-Waiver of Remedies. No remedy herein conferred upon or reserved to
Schertz or the SEDC is intended to be exclusive of any other available remedy or remedies, but
each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or in equity or by statute.
Likewise, no remedy herein conferred upon or reserved to the Center is intended to be exclusive
of any other available remedy or remedies, but each and every such remedy shall be cumulative
and shall be in addition to every other remedy given under this Agreement or now or hereafter
existing at law or in equity or by statute
7.5 Waiver of Conseauential Damaees. The Center waives all present and future
claims for consequential damages against Schertz and the SEDC and the appointed or elected
officials, members, agents, employees, officers, directors, and representatives of Schertz and the
SEDC arising from or related to this Agreement, and such waiver shall survive any termination
of this Agreement.
7.6 Release of Existins Claims. THE CENTER, ON BEHALF OF ITSELF AND
ITS MEMBERS, MANAGERS, OFFICERS, AND DIRECTORS HEREBY RELEASES
ANY AND ALL CURRENTLY EXISTING CLAIMS OF EVERY KIND OR
5051409$.5 _ ~ p .
CHARACTER WHICH THE CENTER HAS OR MAY HAVE UNDER OR PURSUANT
TO THIS AGREEMENT AGAINST SCHERTZ, THE SEDC, OR THEIR RESPECTIVE
APPOINTED OR ELECTED OFFICIALS, MEMBERS, AGENTS, EMPLOYEES,
OFFICERS, DIRECTORS, AND REPRESENTATIVES, INDIVIDUALLY AND
COLLECTIVELY.
ARTICLE VIII
MISCELLANEOUS
8.1 Binding Agreement; Assignment. The terms and conditions of this Agreement
are binding upon the successors and permitted assigns of the Parties hereto. This Agreement may
not be assigned by the Center without the prior written consent of Schertz and the SEDC.
8.2 Limitation on Liability. It is understood and agreed among the Parties that the
Center, Schertz, and the SEDC, in satisfying the conditions of this Agreement, have acted
independently, and assume no responsibilities or liabilities to third parties in connection with
these actions.
8.3 No Jotnt Venture. It is acknowledged and agreed by the Parties that the terms
hereof are not intended to, and shall not be deemed to, create a partnership or joint venture
among the Parties.
8.4 Notice. Any notice required or permitted to be delivered hereunder shalt be
deemed received (i) three (3) days after deposit into the United States Mail, postage prepaid,
certified mail, return receipt requested, addressed to the Party at the address set forth below or (ii)
on the day actually received if sent by courier, a recognized overnight delivery service, or
otherwise hand delivered.
The Center: Address for deliver~~l_
The Center for Entrepreneurship
P.O. Box 311417
New Braunfels, Texas 78131
Attn: Trevor Bird
Address for personal deliver
The Center for Entrepreneurship
c% The Greater New Braunfels Chamber of
Commerce
390 South Seguin Avenue
New Braunfels, Texas 78130
Attn: Trevor Bird
sos~ao~ss _ ~ ~ _
Schertz: City of Schertz
140.0 Schertz Parkway
Schertz, Texas 78l 54
Attn: John C. Kessel, City Manager
With a copy to: Fulbright &Jaworski L.L.P.
300 Convent Street, Suite 2100
San Antonio, Texas 78205
Attn: Katherine A. Tapley
SEDC: City of Schertz Economic Development
Corporation
1400 Schertz Parkway
Schertz, Texas 78154
Attn: David Gwin, Executive Director
With a copy to: Fulbright &Jaworski L.L.P.
300 Convent Street, Suite 2100
San Antonio, Texas 78205
Attn: Katherine A. Tapley
$.5 ' Conflict. If there is any conflict between this Agreement and another document,
the terms of this Agreement shall control.
8.6 Governing Law. This Agreement shall be governed by the laws of the State of
Texas, and venue for any action concerning this Agreement shall be exclusively in the State
District Court of Guadalupe County, Texas. The Parties agree to submit to the jurisdiction of said
court. '
8.7 Amendment. This Agreement may only be amended by a written agreement
executed by the Parties.
8.8 Leal Construction. In the event any one or more of the provisions contained in
this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect other provisions, and it is the
intention of the Parties to this Agreement that in lieu of each provision that is found to be illegal,
invalid, or unenforceable, a provision shall be added to this Agreement which is legal, valid, and
enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or
unenforceable to the extent that it does not deprive the Parties of the benefit of the bargain and
only to the extent permissible by law.
50514098.5 _ t 2 _
8.9 Captions. All descriptive headings and captions herein are inserted for
convenience only and shall not be considered in interpreting or construing this Agreement.
8.10 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 (specifically including, without limitation,
Sections 5.2, 7.1, '1_3, and 7_5 of this Agreement} shall survive termination. '
8.11 Counterparts. This Agreement may be executed in multiple counterparts. Each
of the counterparts shall be deemed an original instrument, but all of the counterparts shall
constitute one and the same instrument.
[Signatures and acknowledgments on the following pages J
sasiaa98.s - 13 -
SIGNATURE PAGE TO
THE CENTER FOR ENTREPRENEURSHIP
CHAPTER 380 AGREEMENT
IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as of
the Effective Date.
City of Schertz, Texas,
a Texas home rule municipality
By:
Jahn C. Kessel, City Manager
Date:
THE STATE OF TEXAS
COUNTY OF GUADAGUPE
This instrument was acknowledged before me on the I y of , 2012, by
John C. Kessel, the City Manager of the City of Schertz, Texas, on behalf of sai City.
[ Seal
~~~ ~'~• ~ ~°~~~~~ ~~~ .,-5~,.•:,.:t,~~~,~~,~~~~,~ N u lic In and r the State of Te
~, .~ Sri= ~f ':`'~,~ ! .,'~~~~4~E~ ~ .
~~ ~ ~~ Pic ,~°~ ~~a~4~~
y `"~ cof ~ 1C~~ ~
~~irrni°il. i B0•:~1p~t71~ ~
~~, ..yo r;"fiiev°~~+ ~4.""~5°~"saef+ef''"+:~C~"l~a,°~~.~.~
(Signatures and acknoN~ledgments continue on the following pages J
50514098.5 S.j
SIGNATURE PAGE TO
THE CENTER FOR ENTREPRENEURSHIP
CHAPTER 380 AGREEMENT
City of Schertz Economic Development
Corporation,
a Texas non-profit industrial development
corporation
~~
,~ /
Harry itney, President
Date: ~ / ~ ~~ ~
THE STATE OF TEXAS
COUNTY OF - ~ ~ ~~, ,~~:.
This instrument was acknowledged before me on the ~ day of ~~ , 2012, by
Harry Whitney, the President of the City of Schertz Economic Development Corporation, a
Texas non-profit industrial development corporation, on behalf of said non-profit industrial
development corporation,
[ Seal ] ~
~ p A r Notary Publ c in and- or the State of Texas
~° ~O$~fjl ~U~ii~
~z ~c ~~~~~ O~~~Xel~ ~i
! r~ ~ G~mmi~~iorr ~xRir~?.
~,,~~~~..o Q4-?2®2®14
['Signatures and acknowledgments continue on the following page ~
sos iao9s,s S-2
SIGNATURE PAGE TO
THE CENTER FOR ENTREPRENEURSHIP
CHAPTER 380 AGREEMENT
THE STATE OF TEXAS
3
COUNTY OF ~ §
The Center for Entrepreneurship,
a Texas non-profit corporation
. ~ ~ ~t_.
By
Trevor Bird, President
Date: ~1 `7 ~ .
50514098.5 S-3
Appendix A
Outputs
The Outputs referenced in Section 4.2 of the Agreement shall be measured for the period
beginning October 1, 2011 and ending on the Final Evaluation Point, September 30, 2012.
The Parties agree that the Output goals are as follows:
Total Previously Reported
D
i
i
O Schertz Out utst Remaining Outputs
utput
escr
pt
ons
Output Required
Goals Q1 Q2 Q3
Number of Advisin Clients 52 11 8 2 31
Number of Advisin Hours 413.75 153.00 127.50 50.75 82.50
Number of Trainin Clients 30 0 0 0 30
Number of Trainin Events 2 0 0 0 2
In furtherance of satisfying the Outputs requirements for training events, the Parties have
scheduled the following two (2) training events:
September 26, 2012 "Effective Employer Policies and Practices"
September 26, 2012 "How to Do Business With Governmental Entities"
The SEDC agrees to provide a training toom and all other facilities that the SEDC determines to
be required for the above-referenced training events. The SEDC shall utilize and rely upon its
existing relationships with local chambers of commerce to advertise these training events.
' As set forth in Section 4.3 of the Agreement, the Center shall deliver to the SEDC a Certification Affidavit
certifying the truth, accuracy, and completeness of the Previously Reported Outputs and the Outputs for the quarter
ending September 30, 2012.
sosi4o9s.s Appendix A-t
AAAendix B
Business Plan for the Project
[see the following seventeen pages J
50514098.5 Appendix B-1
Second Draft - 0/22/11
Business Plan
Satellite Office
Small Business Development Center
Institute for Economic Development
The University of Texas at San Antonio
Prepared by
Morrison Woods
Director
UTSA SBDC
March 30, 2011
TABLE OP CONTENTS
EXECUTIVE SUMMARY 2
MISSION, VISION AND VALUES 3
BUSINESS DESCRIPTION q
OPERATIONS PLAN
MARKET ANALYSIS
5
7
PROMOTIONAL STRATEGY 11
MANAGEMENT PROFILE 12
BUDGET 1 ~
EXECUTIVE SUMMARY
The University of Texas at San Antonio (UTSA) Small Business Development Center
{SBDC) Satellite Office wilt be housed in a visible, accessible location in the Central
Business District of New Braunfels, Texas. Its normal hours of operation will be Monday
thru Friday from 8:00 am to 5:00 pm. The Satellite Office will serve the needs of existing
and potential small business owners throughout Comal and Guadalupe Counties and
will be operated by the University of Texas at San Antonio.
The total first year cast for the Satellite Office is $169,215. Funding for the.office was
provided for a one year picot project by the City of New Braunfels (50%), the City of
Seguin (25%) and the City of Schertz (25%). Continued funding will depend on the
performance of the Satellite Office.
The SBDC offers integrated services to meet the needs of experienced small business
owners as well as individuals interested in starting a business. These services include
training and individual, confidential advising. Every effort is made to match the needs of
the individual to the resources of the SBDC.
The Satellite Center will be staffed by a Project Manager and an Administrative
Assistant, but ail the resources of the SBDC will be available to support them in
achieving their goats. The SBDC has operated through a cooperative agreement with
the U,S. Small Business Administration since 1987. It has a proven track record of
producing results through its assistance to small business owners.
The activities of the SBDC are guided by its Mission, Vision and Values. Our mission is
to foster small business success. Our vision is we are a leading economic development
network recognized for excellence in service to the small business community. Our
values are integrity, excellence, service and innovation.
The rapidly growing communities in Comal and Guadalupe counties should be fertile
ground for entrepreneurial activity. The SBDC will focus on new business starts and the
expansion and retention of existing businesses. This will be accomplished by extensive
networking with chambers of commerce, city economic development departments,
financial institutions and other business organizations to obtain referrals.
2
MISSION, VISION AND VALUES
MISSION: Our mission is to foster small business success.
VISION: We are a leading economic development network recognized for
excellence in service to the small business community,
VALUES; INTEGRITY Building our reputation by being accountable, credible,
ethical and respectful
EXCELLENCE Exceeding stakeholder expectations by achieving results,
demonstrating leadership and leveraging our resources
and expertise
SERVICE Delivering results and fostering diversity by being
responsive, adding value, providing solutions and
collaborating
INNOVATION Fostering a culture of creativity by embracing change,
livelong learning and risk-taking
3
BUSINESS DESCRIPTION
Name: UTSA Small Business Development Center
Location: Central Business District
New Braunfels, Texas
Operator: The University of Texas at San Antonio
Funder: The Center for Entrepreneurship
A 501 c3 Corporation
Structure: The Center far Entrepreneurship will contract with The University of Texas
at San Antonio (UTSA) on an annual basis to operate a Small Business
Development Center (SBDC) Satellite Office in New Braunfels, Texas that
will serve small business owners and potential small business owners in
Comal and Guadalupe Counties. Funding for the Satellite Office is
provided by the City of New Braunfels (50 percent), the City of Seguin (25
percent) and the City of Schertz (25 percent). This will be an expansion of
existing services offered by the UTSA SBDC.
Services: The SBDC offers integrated services to meet the needs of experienced
small business owners as well as individuals interested in staring a
business. These services include training and indiv'tduai, confidential
advising. Every effort is made to match the needs of the individual to the
resources of the SBDC. In both training and advising, the UTSA SBDC
strives to strengthen businesses.
Staffing: Project Manager
Administrative Assistant
Outputs: The projected outputs for the first year of operation of the SBDC are:
Number of Advising Clients 208
Number of Training Clients 120
Number of Advising Hours 1,655
Number of Training Events 8
Outcomes: The projected outcomes for the first year of operation of the SBDC are:
Number of Business Starts 15
Number of Business Expansions 15
Number of Jobs Created 88 '
Number of Jobs Retained 57
Total Capital Infusion $1.88 million
4
OPERATIONS PLAN
The SBDC will be located in or near the Central Business District in New Braunfels in a
visible location per the desires of the Center for Entrepreneurship board. It wilt have a
small reception area, one office and a small conference room for 10-12 people.
Limited parking should be available, as the SBDC encourages people to make
appointments rather than walk in unannounced. It is anticipated that the Project
Manager will be circulating in the business community much of the time, especially
during the initial stages of the SBDG operations.
Many of the advising sessions will be conducted at people's place of business rather
than at the SBDC office, but the office is needed for those individuals interested in
starting a business. The search is underway for an appropriate, available location.
The SBDC will operate Monday -Friday from 8:00 a.m. to 5:00 p.m., and will observe
holidays according to the published schedule of the University of Texas at San Antonio.
The Project Manager will have specific, measurable goals that may not be attainable
during normal business hours. That individual is expected to participate in after hours
and weekend activities such as workshops and networking and community events as
part of his or her regular duties.
The office should be a professional environment with space #or storage of files and
other materials. It wilt also need to be compliant with the Americans with Disabilities Act
(ADA). The University of Texas at San Antonio will need to inspect and approve the site
as meeting all requirements of the university before the space can be occupied.
The satellite center will attempt to use vendors located in Comal and Guadalupe
Counties for purchases of office supplies, furniture and equipment, keeping in mind the
purchasing requirements of the University of Texas at San Antonio.
The overall operation of the satellite center will be managed by the SBDC located at the
UTSA Downtown Campus in San Antonio. Job descriptions for the Project Manager and
Administrative Assistant for the satellite center are on pages 13 and 1~i respectively. All
staff resources of the SBDC will be available to support the activities of the primary
Satellite Center staff.
Every effort will be made to provide services commensurate to the support provided by
each community funding the satellite center i.e. proportional distribution of effort.
Outcomes will be based on numbers generated within Comai and Guadalupe counties,
as individual business owners will decide where to locate their business based on the
market for their goods and services.
5
Recruiting for both positions will be done through the automated STARS system of the
UTSA Human Resources Department. Ail applicants will need to apply on-line at the
STARS website. The candidates selected for the positions should live in Comal or
Guadalupe Counties. The SBDC will also publicize the availability of these positions in
local media and through its network or contacts in communities throughout the two
county service area.
The slaff of the satellite center will be employees of the University of Texas at San
Antonio and their employment will be contingent upon continued funding of the satellite
center by the Center for Entrepreneurship.
6
MARKET ANALYSIS
Small businesses continue to be the net job generators in the United States economy.
Current economic conditions are making it difficult for small businesses to attract and
retain customers which, in turn, makes it difficult far many of these businesses to obtain
the financing they may need as the economy recovers.
The SBDC looked at six sources of data to identify those segments with the greatest
potential to generate impact. Those sources were;
SBDC Client Top Job Generators
Alamo WorkSource Top Job Generators
Reference USA Top Employers
Reference USA Top Revenue Generators
State of Texas Target Industry Clusters
The alignment of data from each of this information sources was based on the number
of times each of the flue data sources indicated that a business sector was or had
potential to produce high growth in employment. The level of alignment is shown below:
Health and Wellness 100%
Food Services 67%
Wholesale Trade 67%
Information Services 50%
Aerospace and Defense 33%
Educational Services 33°!0
It is clear that the best alignment is in the broad areas of Health and Wellness, Food
Services and Wholesale Trade.
Based on Reference USA data from March 29, 2011, there are 8,211 companies
located in Comal and Guadalupe Counties. Approximately 97% of firms in the two
country area employ fewer than 50 people, with firms of 1-4 employees accounting for
about ti3% of that total. Approximately 2$% of firms in the area employ 5 to 19 people,
and another 6% of firms employ 20.49 people. See Table 1 on following page for
distribution of companies by number of employees.
Although there are a great number of Firms in the 1-4 employee range, it appears the 5
to 19-employee group has the most potential for growth. They have demonstrated an
ability to grow based on the number of employees they already have and the fact that
they compose a little over a quarter of the total market in the area. That does not mean
small firms and start-ups will be neglected, as they are the entrepreneurial engine that
generates the creative churn in small business activity.
7
TABLE 1
CUMULATIVE
NUMBER OF NUMBER OF PERCENT OF PERCENT OF
EMPLOYEES COMPANIES COMPANIES COMPANIES
1 - 4 5,187 63% 63%
5 - 9 1,444 18% 81
10--19 801 10% 91
20 - 49 494 6% 97%
50 - 99 178 2% 99%
100 - 249 77 1 % 100%
250 - 499 15 0% 100%
500 - 999 11 0% 100%
1,000 - 4,999 4 0% 100%
Total 8,211 100%
The Comal-Guadalupe Counties business environment is very favorable and appears to
be in a growth stage that should be sustainable for several years, The total population
of Comal and Guadalupe Counties grew by 44% between 2000 and 2010 from 167,044
to 240,005. See Table 2 below for details.
TABLE 2
PERCENT
2000 2010 CHANGE IN
LOCATION POPULATION POPULATION POPULATION
United States 281,421,906 308,745,538 10%
Texas 20,851,820 25,145,561 21%
Comal County 78,021 108,472 39%
Guadalupe County 89,023 131,533 48%
Cornai and
Guadalupe Counties 167,044 240,005 44%
This growth far exceeded the growth of the country as a whole, which grew by only
10%. Texas grew by 21 %, which is less than half the rate of growth for the Comal and
Guadalupe Counties.
The Hispanic population in Coma) and Guadalupe Counties grew by 57% from 2000 to
2010. The Hispanic population comprises 31% of the population in these two counties
and is projected to grow.
8
The Hispanic population is one of the fastest growing entrepreneurial groups, so this
change also bodes well for the small business environment of Corral and Guadalupe
Counties. See Table 3 and 4 below for details.
TABLE 3
PERCENT
2000 2010 CHANGE IN
HISPANIC HISPANIC HISPANIC
LOCATION POPULATION POPULATION POPULATION
Texas 6,669,666 9,460,921 42%
Corral County 17,609 26,989 53%
Guadalupe County 29,561 46,889 59%
Corral and
Guadalupe Counties 47,170 73,878 57%
TABLE 4
2000 2010
HISPANIC HISPANIC
PERCENT OF PERCENT OF
TOTAL TOTAL
LOCATION POPULATION POPULATION
Texas 32% 38%
Corral County 23% 25%
Guadalupe County 33% 36%
Corral and
Guadalupe Counties 28% 31%
Women are also entering the entrepreneurial ranks at a faster rate than the general
population, so there are also opportunities for growth among that group.
The continued rapid growth in population will require the expansion of existing
businesses and the opening of new businesses to meet the growing demand of the
population. The SBDC can support the growth of those businesses through its proven
record of assisting clients expand or start their businesses.
The UTSA Institute for Economic Development also houses the Minority Business
Enterprise Center {MBEC) that focuses Its assistance on minority-owned firms that have
annual revenues in excess of $500,000. The SBDC and MBEC have Business
Advisors that are bilingual in Spanish.
9
The challenge will be finding clients that qualify for financing based on the six Cs of
credit:
Character (reputation for keeping commitments)
Capability (experience in business and the particular industry)
Credibility (reliability of business operations)
Collateral (assets and repayment ability)
Context (product or service differentiation and competition)
Conditions (micro and macro economic conditions)
Many people have great ideas but may be weak inane or all these areas and this can
limit their ability to obtain funding for their ventures, Most people do not have the
resources to fully fund their business Ideas, so access to capital is critical to their
existence,
10
PROMOTIONAL STRATEGY
The business advising services of the SBDC are provided at no cost to the client, but it
should be noted that these are prepaid services because funding for the satellite offices
will come from focal funding sources. The SBDC charges minimal fees for workshops to
cover the costs of developing them and providing handouts. Prices will need to be
adapted to the local markets based on the response to the normal workshop pricing
structure of the SBDC.
The SBDC will accept cash, checks and Master Card, American Express and Discover
credit cards in payment for workshops, Clients are encouraged to register and pay in
advance for workshops to ensure they make a commitment to attending the training
event, but payment and registration is also acceptable at the door. Payment at the door
is not encouraged however since materials must be prepared in advance of the
workshop.
The SBDC staff networks extensively in the community with chambers of commerce,
economic development corporations, financial institutions and other business
organizations to obtain referrals. Promotional materials will be developed for distribution
with the communities served and, eventually, a web link will be created on the UTSA
SBDC web site for the satellite center serving Comai and Guadalupe counties.
11
MANAGEMENT PROFILE
The organization chart for the UTSA SBDC is shown below. The positions shaded in
gray are the two staff members of the Satellite Center in New Braunfels. These two staff
members will be the primary contacts for activities in Comal and Guadalupe counties,
but it should be kept in mind that the entire staff of the UTSA SBDC will be available to
support small business development activities in the two county service area.
Wayne Looff will continue to serve both counties in his role as a Senior Business
Advisor with the Rural Business Program of the SBDC. Collaboration between Wayne
and the new Satellite Center staff will be essential to meeting the needs of both
counties.
The backgrounds and experience of ail SBDC staff members is located at the "About
Us" tab on the SBDC web page located at www.sasbdc.ora.
The preliminary job description for the Project Manager is on the following page.
92
Tills of Position ProJacl Manager
Employing DaparlmenUOfftca UTSA Smell Business Development Center
location Now Braunfels, Texas
benefits Eligible? Thls Is an Administrative 8 Professlonai (A&P), beneflte eligible, position.
Grant Funded? (A grant funded Yes
position Is contingent upon the
avallabUity of funds)
Hours perweek 40
It employee wfp be working a Some early morning, evening and weekend work required. Up l0 26% (ravel on day trips only.
schedule other then Monday - Occastonai overnight travel.
Friday, B:00am - 6:00pm, specify
hours and days to 6e worked
Security Sensitive Yes
(Requires a criminal background
check)
Required Education Bachelors Degree
Preferred Education Mastefs Degree
' Prefer MBA from an accredited Institution in euslness Admtnistrallon. Expartenoe as a business
owner or experience working in a email business development program may substitute for the
MBA.
MS Office Experience Required Word
Excel
other Computer and Softvrare WA
Skills Required
Experience and Other Skills Three ysare of related professional experience in any combinallon of areas such as the following:
Required consultant to small businesses in management or technical skills, s1aH member wittdn a
bus(nesslaconomio devefopmentorganization, manager or proprietor of a small business,
procurement or government contracting experience, banking with commerclai lending experience.
Excellent verbal and written communtcalion skllie. Excellent tnterpereonat skills. Ability to work and
lake Initiative ~vlthout close supeMston. Ability to deaf with a wide variety o! Individuals and
organizations; confldenliality essential. Texas Drivers license or the ablity to obtain one by the Brat
date of employment.
Other Skips Preferred Three years of commerdal tendtnglpnandal experience or procurement and government
contreciing experence dealing with small business; small business consuiting experience; loan
packaging experience; previous SBDC experience a plus; strong working knowledge of Microsoft
Office appilcattons Including Excel, PowerPoini, Word and Access; bilingual In Spanish.
Descrippon of Job Dulias Function: To provide management and technical assistance and Information seMces to small
businesses. Scope: Responsible for providing counseling on all aspects of small business
operations including marketing, management, Onandng, procurement, accounting, personnel, but
with special emphasis on Onancing smell businesses or procurement and government contracting.
Conduct silent counseling, assist in the development and implementalton of training Quanta and
workshops, promote SBDC seMces, network with community orgsnizationa Involved to smell
business and economic development, and assist In maintenance of data in the SBDC Cilent Activity
Training System (CATS). Tvuicat duties incude: (1) providing counseling for smell business silents,
(2) performing Heads assessments of businesses and recommending plans of action, (3) assisting
the director and assistant director fn working with community organizations to achieve program
goats, (4) assisting to the development and ImplemenlaUon of workshops and conferences for
businesses Including parUdpaUon as a speaker, {S) pariicpapng In marketing end outreach efforts
including travel to rural communllles, and (S) other duties as assigned. Periodic duffles ink ude: (1)
attending professional development workshops and seminars relating to smell business
development, (2) assisting In the preparation of program reports, and (3) attending SBDC regional
end natlonat meetings.
Position Will Report To Morrison Woods
(Supervisor's flame)
7ttle Director
(SupeMsor's Title)
13
The preliminary job description for the Administrative Assistant is below.
Tilie of Poelifon Administrative Assistant
Employing DepartmenUGHice UTSA Small Business Development Center
Location New Braunfels, Texas
Benefits Eliglbie? This is a Classified, benefits eligible, poslllon.
Grant Funded? (A grant funded Yes
position is contingent upon the
availabllily of funds)
Hours per week AO
If employee will be working a Early morning and evening work maybe required.
schedule other than Monday -
Frlday, B:OOam - S:OOpm, specify
hours and days to be worked
Security Sensitive Yes
(Requires a criminal background
check)
Required Education Graduated High School or completed GED
Preferred Education Assoclale's Degree
MS Office Experience Required Word
Excel
Other Computer and Software Skllis N/A
Required
Experience and Other Skills Three years of clerical or office experience. Proficiency in the use of English
Required grammar, spelling and business math. Knowledge of current methods and
systems of bookkeeping, filing and purchasing. Excellent interpersonal skllis
dealing with a wide variety of people and a high volume of communications.
Other Skills Preferred Knowledge of Client Activity Tracking System (CATS) software. Experience
with Mtcrosoft Powerpofnt & Outlook.
Description of Job Dulles Receive, sort, screen, and dlairibute mall and Incoming communications.
Evaluate mail for supervisor. Type, proofread, edit and produce fn final form
correspondence, forms, reports, manuscripts, research articles and other
materials and special projects. Compose moderately complex
correspondence. Act as receptionist; answer the telephone, greet and screen
visitors, schedule appointments. Advise students, administrators and staf/
regarding administrative or academic policies and procedures.
Malntaln departmental budget. Process purchase orders, vouchers and
requlsillons. Reconcile Isdgers. Malntaln a wide variety of complex academic,
Ascal, personnel and administrative records, accounts and files consisting of
official and con8dentla) matters. Coordinate clerical and tlscal activilles within
the department and determine work priorities. Develop work standards and
' procedures. Counsel, investigate, and evatuate complaints to so{ve problems
as they arise. Perform additional duties as assigned.
Position Will Report To VACANT
(Supervisor's Name)
71t1e Project Manager
(Supervisor's Title)
14
Budget
88TIMATED BUDGET FOR FY 2012 (Ootober 1, 2011 - Soptombor 30, 2012
UTSA SBOC Satellite Center for Comal and ciuadatupe Counties
DESCRIPTION BUDGET
A. PERSONNEL
Pro)ect Manager $ 47,000
Adminlslreltve Assistant 25 400
Total Satartes and Wa es 74.4Q0
B. FRINGE BENEFITS
S1af1 rate 21 720
Total Frin a Benefits S 21 720
C. TRAVEL
In•Slate:
(1) Unplanned travel to attend unspactled meetings, confarances, eta (2,000 tulles C~ S.60/mite) $ 1,000
(2) Travel to weakly stafl meeling8 {48 @ S3S) $ 1,880
4 Slaft Miles e: Communfl and client ouUeach 7 000 tulles .SOlmlle S 3 800
Total Travel S 6180
D. EQUIPMENT
(1) Laptop compulerewith docking stations (2 (~ $1,760) S 3,500
(2) Printers (2 ®Sg00) S 800
(3) Scanner (1 @5700) g 700
(4) Furniture
(a) Executive Deak with Credenza and Flle Cabinef (1 (~ $2,600) S 2,500
(b) Reception Desk with Credenza and Flle Cabinet (1 (~ 52,000) $ 2,060
(c) Ergonomic Task Chairs (2 ~ $475) S 050
(d) Conterenco Tabte for 10 (1 ®51,000) S 1,000
(e) Conference Chairs {10 @ 5350) S 3,600
(f) Guest Chetrs (4 ®5300) $ 1,200
(8) Blackberry or IPhono (1 ®S200) S 200
(7) Alr card for Blackkbeny (1 ~ S50) $ 50
(8) Telephones (3 ®S75) $ 225
9 Deskto Co ter 1 600 S 500
Total E ul men! 16 825
E. SUPPLIES
Two s1aH 2 26/month 800
Total SU lies S 600
F. CONTRACTUAL S
Total Contractual S
t3. CONSULTANTS $
Total Consultants $ -
15
DESCRIPTION BUDGET
H. OTHER
Memberships In and networking wtlh small business organizations (8 (~ 5280) $ 1,600
Protesslonel acltviUes & devetopmenl
(1) Registration for ASBDC conference for Pro)ect Manager $ 5gg
(2) Registration for two aloft members for SWTXB 58DC Protesslonal Development (2 f~ $388 $ 700
(3) Unscheduled professional development ac11v(ttes (2'760) 5 1,500
Telephone service: Slackbe-ry Phone Service (S80/month) $ 880
Telephone 81ax services (3 (~ 5200/month) S 7,200
Office Space (1,178 sq ft. ~ 51.081month) $ 1A,948
Internet Connections
(1) Wired and WIFI intemet connections Inataliellon (1(~ $1,600) $ 1,60p
(2)1Mred and WiFt Intemet connections equlpmenl(1®$1,000) $ 1,000
(3) Wired and WIFI intemet connection monthly tees (12 Q $100) 5 1,200
Conference Room Equipment
(1) Web camera (1 ®S50) $ 60
(2) WebX subscription monthly fees (12 ®550) $ 800
(3) Desktop projector (1 ®$600) $ 600
(4) Cart for LCD Screen (i ~ 5500) S 800
(5) Computer Wlih wireless mouse and keyboard (1 Q S1,300) S 1,300
(8) Shelf for computer (1 ~ $160) S 160
Postage (special event mailings: 4 mailings ~ $76) $ 300
Postage (tnformatlonal mailings: 4 quarterly ma{Iings ®$78) $ 300
Postage (routine mailings: 10 malUngs/month ~ 5.80/mailing} $ 80
Printing/Graphics for promotional materials (4 printings of 1,000 ®$.20/piece) $ 800
Training Materials (8 workshops ®$2ti) $ 200
Copier service (12 months ®520/month) S A80
Computer replacement (No computer replacement) $ -
Mlacellaneous S 78
TotalOlher S 38,307
L TOTAL DIRECT COSTS $ 183 832
J. TOTAL IN-DIRECT COSTS 10.0°~ of total direct modl0ed cost S 16 383
TOTAL 188 215
16
A~nendix C
Certification Affidavit
[see the following two pages J
50514098.5 Appendix C-1
CERTIFICATION AFFIDAVIT
REGARDING QUARTERLY REPORTS
This CERTIFICATION AFFIDAVIT REGARDING QUARTERLY REPORTS (the
"Affidavit") is made as of the date of the acknowledgment below by Morrison Woods (the
"Affiant"), in his role as the Director of the Small Business Development Center of The University
of Texas at San Antonio ("UTSA"), for reliance upon by the City of Schertz Economic
Development Corporation, a Texas non-profit industrial development corporation (the "SEDC"),
and the City of Schertz, Texas, a Texas municipal corporation (the "City"), in connection with The
Center for Entrepreneurship Chapter 380 Agreement between The Center for Entrepreneurship, a
Texas non-profit corporation (the "Center"), the City, and the SEDC (the "Agreement"), and the
grant of public funds contemplated in the Agreement in the maximum amount of Forty-Two
Thousand Three Hundred and No/100 Dollars ($42,300.00). Affiant hereby swears under oath, for
the benefit of the SEDC and the City, as to the following:
1. Affiant has personal knowledge of the matters set forth in this Affidavit, and the facts
stated herein are true and correct to the best of his knowledge.
2. As the Project Director of the UTSA SBDC Satellite Office-New Braunfels Program
(the "Program"), Afl-iant (a) oversaw the work performed by UTSA staff in support of its
obligations under the Sponsored Program Agreement between The University of Texas at San
Antonio and The Center for Entrepreneurship that was executed in August, 2011 (the "TCE
Agreement"), (b) ensured that information gathered from Program clients meets the standards of
the U.S. Small Business Administration, (c} has reviewed the four Quarterly Reports referenced in
the following paragraph prepared by. UTSA in connection with the Program and the TCE
Agreement and certifies that they are true, accurate, and complete in all material respects, and
(d) has access to the files relating to the Program.
3. Affiant obtained copies of the four Quarterly Reports prepared by UTSA in connection
with the TCE Agreement from its Program files. Such copies are attached hereto as Exhibits "A-1
through A-4" and accurately reflect work performed by UTSA staff and information provided by
Program clients during the time periods ending December 31, 2011, March 31, 2012, June 30, 2012
and September 30, 2012, respectively.
4. Afl-iant understands that this Affidavit is being relied upon by the SEDC and City in
connection with the grant of public funds to the Center.
5. Affiant has the authority to sign this Affidavit on behalf of the Small Business
Development Center of The University of Texas at San Antonio.
[ remainder of page intentionally left blank ]
sosi4o9s.5 Appendix C-2
In Witness Whereof, this Certification Affidavit Regarding Quarterly Reports has been
executed as~of the date of the acknowledgement below.
THE STATE OF TEXAS §
COUNTY OF §
Affiant:
Morrison Woods, Director, Small Business
Development Center of The University of Texas at
San Antonio
Sworn to and subscribed before me, the undersigned Notary Public; on this day of
2012, by Morrison Woods, Director of the Small Business Development
Center of The University of Texas at San Antonio.
[SEAL]
NOTARY PUBLIC, STATE OF TEXAS
PRINTED/TYPED NAME OF NOTARY
MY COMMISSION EXPIRES:
List of Exhibits:
Exhibit "A-1" Program Quarterly Report for period ending December 31, 2011.
Exhibit "A-2" Program Quarterly Report for period ending March 31, 2012.
Exhibit "A-3" Program Quarterly Report for period ending June 30, 2012.
Exhibit "A-4" Program Quarterly Report for period ending September 30; 2012.
sosiao9a.s Appendix C-3