17-R-100 - Amendment 2 to Development Agreement EDC and GE Oil and GasRESOLUTION NO. 17 -R -100
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS AUTHORIZING AMENDMENT NO. 2 TO THE DEVELOPMENT
AGREEMENT AMONG THE CITY OF SCHERTZ, TEXAS, THE CITY OF
SCHERTZ ECONOMIC DEVELOPMENT CORPORATION, AND GE OIL
AND GAS, LLC.; AUTHORIZING CERTAIN BENEFITS BY THE CITY
PURSUANT THERETO; AND OTHER MATTERS IN CONNECTION
THEREWITH
WHEREAS, on February 4, 2014 the City of Schertz, Texas (the "City ") and the City of
Schertz Economic Development Corporation (the "SEDC ") entered into a Development
Agreement with GE Oil & Gas, Inc. (the "Developer ", and collectively with City and SEDC, the
"Parties "); and
WHEREAS, the Parties entered into Amendment No. 1 to the Development Agreement
effective as of April 25, 2016; and
WHEREAS, the City Council of the City and the Board of Directors of the SEDC have
found that the job creation and capital investment requirements for the Developer to reach to obtain
the economic development incentive provided in the Development Agreement and the Amendment
No. 1 to the Development Agreement have been met as have the obligations of the City and SEDC;
and
WHEREAS, due to industry and market changes Developer desires to alter their business
model and structure for this sector of their operations; and
WHEREAS, the Developer has requested to assign the Development Agreement with
amendments from GE Oil & Gas Inc. to GE Oil & Gas LLC., which requires the consent and
approval of the Parties; and
WHEREAS, the Development Agreement states that no amendment shall be effective and
binding unless and until it is reduced to writing and signed by duly authorized representatives of
the PARTIES; and
WHEREAS, the CITY and SEDC have reviewed the proposed assignment and amendment
and find that the approval of the assignment and amendments as set forth herein are in the best
interest of the PARTIES and will continue to meet the requirements that any such incentives are
required or suitable for the development, retention, or expansion of manufacturing and industrial
facilities in the CITY and for the creation and retention of "primary jobs ", meaning those jobs that
are available at a company in the manufacturing sector for which a majority of the products or
services of that company are ultimately exported to regional, statewide, national, or international
markets infusing new dollars into the local economy; and
WHEREAS, the SEDC held a meeting on October 26, 2017, and the Board of Directors
voted to recommend approval of Amendment No. 2 to the Development Agreement (GE Oil &
Gas, Inc.) ( "Second Amendment ") to the City Council; and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
S CHERTZ, TEXAS:
Section 1. The City Council hereby approves Amendment No. 2 to the Development
Agreement (GE Oil & Gas, LLC.) and authorizes the City Manager to execute and deliver the
amendment with the SEDC, and the Developer 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.
PASSED AND ADOPTED, this 14th day of November, 2017.
ATTEST:
r
Brenda Dennis, City ecretary
(CITY SEAL)
CITY OF S ERTZ, TEXAS
iW' ael Carpenter, Mayor
0
EXHIBIT A
AMENDMENT NO.2 TO THE
DEVELOPMENT AGREEMENT
(GE Oil & Gas LLQ
I:1I