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02-08-2022 Agenda with backupMEETING AGENDA City Council REGULAR SESSION CITY COUNCIL February 8, 2022 HAL BALDWIN MUNICIPAL COMPLEX COUNCIL CHAMBERS 1400 SCHERTZ PARKWAY BUILDING #4 SCHERTZ, TEXAS 78154 CITY OF SCHERTZ CORE VALUES Do the right thin] Treat others the way you want to be treated Work cooperatively as a tea City rti will hold its regularly . scheduled meeting at ., Tuesday, February 8, 2022, at the pity Council Chambers. In lieu of attending the meeting in person, residents will have the opportunity t tch the meeting aria live stream on the ty's YouTube Channel. Call to Order Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Heyward) Presentations • Proclamation recognizing the Official San Antonio Stock Show & Rodeo Season. (Mayor /B. Hall /Ambassadors) City Events and Announcements • Announcements of upcoming City Events (B. James /C. Kelm/S. Gonzalez) • Announcements and recognitions by the City Manager (M. Browne) • Announcements and recognitions by the Mayor (R. Gutierrez) February 8, 2022 City Council Agenda Page 1 Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should.fill out the speaker's register prior to the meeting. Presentations should be limited to no more than 3 minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existing policy in response to an inquiry, and /or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of the agenda, will call on those persons who have signed up to speak in the order they have registered. Consent Agenda Items The Consent Agenda is considered self - explanatory and will be enacted by the Council with one motion. There will be no separate discussion of these items unless they are removed from the Consent Agenda upon the request of the Mayor or a Councilmember. 1. Minutes — Consideration and /or action regarding the approval of the minutes of the meeting of the regular meeting of February 1, 2022. (B. Dennis) 2. Ordinance No. 22 -M -06 - Consider action approving an Ordinance amending Chapter 21 Community Development of the City of Schertz Code of Ordinances by adding Article III Enterprise Zones, enabling nomination of qualifying projects to the State of Texas for Enterprise Project Designation. Final Reading (M. Browne /A. Perez) 3. Resolution No. 22 -R -15 - Consideration and/or action approving a Resolution by the City Council of the City of Schertz, Texas, authorizing a program and expenditures as provided for in the Economic Development Performance Agreement between Sysco Corporation and the City of Schertz Economic Development Corporation. (M. Browne /A. Perez) Discussion and Action Items Public Hearings 4. Resolution No. 22 -R -16 - Conduct a Public hearing and consideration and/or action adopting a resolution nominating Sysco USA I, Inc. as an Enterprise Zone Project under the provisions established in State Law and Chapter 21 of the Code of the City of Schertz. (M. Browne /A. Perez) February 8, 2022 City Council Agenda Page 2 5. Ordinance No. 22 -S -07 - Conduct a public hearing and consideration and /or action on a request to amend the Comprehensive Land Use Plan by changing approximately 44 acres of the Future Land Use Map from Mixed -Use Neighborhood land use designation to the Single - Family Residential land use designation, generally located 3,650 feet east from the intersection of Schaefer Road and FM 1518, also known as Bexar County Property Identification Numbers, 309807, 309837, 309814 City of Schertz, Bexar County, Texas. First Reading (B. James /L. Wood/M.Harrison) 6. Ordinance No. 22 -S -08 - Conduct a public hearing and consideration and /or action on a request to amend the Comprehensive Land Use Plan by changing approximately 15 acres of the Future Land Use Map from Estate Neighborhood land use designation to the Mixed -Use Neighborhood Center land use designation, generally located 2,500 feet southeast from the intersection of Lower Seguin Road and FM 1518, known as 9120 E FM 1518 N, also known as Bexar County Property Identification Numbers, 309999 and 309997, City of Schertz, Bexar County, Texas. First Reading (B.James /L.Wood/M.Harrison) Roll Call Vote Confirmation Information available in City Council Packets - NO DISCUSSION TO OCCUR 7. 2021 Racial Profiling Annual Report - Schertz Police Department Requests and Announcements . Announcements by the City Manager. . Requests by Mayor and Councilmembers for updates or information from staff. . Requests by Mayor and Councilmembers that items or presentations be placed on a future City Council agenda. . Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers Adjournment CERTIFICATION I, BRENDA DENNIS, CITY SECRETARY OF THE CITY OF SCHERTZ, TEXAS, DO HEREBY CERTIFY THAT THE ABOVE AGENDA WAS PREPARED AND POSTED ON THE OFFICIAL BULLETIN BOARDS ON THIS THE 4th DAY OF FEBRUARY 2022 AT 1:00 P.M., WHICH IS A PLACE READILY ACCESSIBLE TO THE PUBLIC AT ALL TIMES AND THAT SAID NOTICE WAS POSTED IN ACCORDANCE WITH CHAPTER 551, TEXAS GOVERNMENT CODE. February 8, 2022 City Council Agenda Page 3 BRENDA DENNIS I CERTIFY THAT THE ATTACHED NOTICE AND AGENDA OF ITEMS TO BE CONSIDERED BY THE CITY COUNCIL WAS REMOVED BY ME FROM THE OFFICIAL BULLETIN BOARD ON DAY OF 2022. TITLE: This facility is accessible in accordance with the Americans with Disabilities Act. Handicapped parking spaces are available. If you require special assistance or have a request for sign interpretative services or other services, please call 210 - 619 -1030 The City Council for the City of Schertz reserves the right to adjourn into closed session at any time during the course of this meeting to discuss any of the matters listed above, as authorized by the Texas Open Meetings Act. Closed Sessions Authorized: This agenda has been reviewed and approved by the City's legal counsel and the presence of any subject in any Closed Session portion of the agenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutes an opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering available opinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda with the intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participants in reliance on this opinion. COUNCIL COMMITTEE AND LIAISON ASSIGNMENTS ----------------------------------- Mayor Gutierrez Councilmember Scagliola — Place 5 Audit Committee Cibolo Valley Local Government Corporation - Alternate Investment Advisory Committee Hal Baldwin Scholarship Committee Main Street Committee Interview Committee for Boards and Commissions - Alternate Schertz - Seguin Local Government Corporation - Councilmember Davis— Place 1 Councilmember Scott — Place 2 Interview Committee for Boards and Commissions Interview Committee for Boards and Commissions Main Street Committee - Chair Schertz Animal Services Advisory Commission Schertz Housing Authority Board TIRZ II Board Councilmember Whittaker — Place 3 Councilmember Dahle — Place 4 Audit Committee Cibolo Valley Local Government Corporation TIRZ II Board Interview Committee for Boards and Commissions TIRZ II Board xxxxx�.mmmm Councilmember Heyward — Place 6 �. Councilmember Brown — Place 7 Animal Advisory Commission Main Street Committee Audit Committee Schertz- Seguin Local Government Corporation - Alternate Investment Advisory Committee Main Street Committee February 8, 2022 City Council Agenda Page 4 Agenda No. 1. CITY COUNCIL MEMORANDUM City Council February 8, 2022 Meeting: Department: City Secretary Subject: Minutes — Consideration and /or action regarding the approval of the minutes of the meeting of the regular meeting of February 1, 2022. (B. Dennis) BACKGROUND The City Council held a Regular City Council meeting on February 1, 2022. RECOMMENDATION Recommend Approval. Attachments 02 -01 -2022 Minutes MINUTES REGULAR MEETING February 1, 2022 A Regular Meeting was held by the Schertz City Council of the City of Schertz, Texas, on February 1, 2022, at 6:00 p.m. in the Hal Baldwin Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Texas. The following members present to -wit: Present: Mayor Ralph Gutierrez; Mayor Pro -Tern David Scagliola; Councilmember Mark Davis; Councilmember Jill Whittaker; Councilmember Michael Dahle; Councilmember Allison Heyward; Councilmember Tim Brown Absent: Councilmember Rosemary Scott City City Manager Dr. Mark Browne; Assistant City Manager Brian James; Assistant City Manager Charles Staff. Kelm; City Attorney Daniel Santee; City Secretary Brenda Dennis; Assistant to the City Manager Sarah Gonzalez; Deputy City Secretary Sheila Edmondson Call to Order Mayor Gutierrez called the meeting to order at 6:00 pm. Opening Prayer and Pledges of Allegiance to the Flags of the United States and State of Texas. (Councilmember Scagliola) Councilmember Scagliola provided the opening prayer followed by the Pledges of Allegiance to the Flags of the United States and the State of Texas. A. Mayor Pro -Tem Oath of Office - Oath of Office administered to Councilmember David Scagliola. (B. Dennis) City Secretary Brenda Dennis provided the Oath of Office for the Mayor Pro-Tern office to Councilmember David Scagliola. Presentations . Proclamation recognizing Career and Technology Education Month. (Mayor /Amy Massey SCUCISD) Mayor Gutierrez read and presented the proclamation to Ms. Amy Massey, Career and Technical Education Coordinator for the Schertz- Cibolo- Universal City Independent School District. Ms. Massey provided background information regarding the program and thanked the Economic Development Department and the City of Schertz who assist with this program. Employee Recognitions New Employee Introductions: Mayor Gutierrez recognized City Department Heads who introduced the following new employees: . 311 Public Affairs: Guadalupe Martinez - 311 Customer Relations . EDC: Casey Moeller - Business Engagement Manager . EMS: Samantha Sommers, Paramedic; Tyler Warneke, EMT • Fire: Annaliese Fielder - Firefighter • Inspections: Amanda Cox - Permit Technician • Police Department: Catherine Gibbs - Communications Officer, Melissa Hurst - Civilian Evidence Technician • Public Works: Jonathan Chapman, Jose Sanchez - Street Worker II - Elijah Allen - Street Worker I • Public Works: Robert Pfeil, Michael Claxton - Service Worker I. Nicholas Ferris - SCADA Technician City Events and Announcements • Announcements of upcoming City Events (B. James /C. Kelm/S. Gonzalez) Mayor Gutierrez recognized Assistant to the City Manager Sarah Gonzalez who provided the following announcements: Friday, February 4th Strategic Planning Retreat 8:30 AM Community Room, Fire Station #3 11.917 Lower Seguin Road Saturday, February 5th Swim N' Smores 4:30 -6:30 PM Schertz Aquatic Center, 621 Westchester Drive Enjoy swimming, s'mores, and hot chocolate on the splash pad. Tuesday, February 8th Next regular scheduled Council meeting, 6:00 PM, Council Chambers Friday, February 11th Chuck Wagon Breakfast 7:30 AM — 9:30 AM Schertz Financial Center, 16895 IH 35 North Scrambled eggs, sausage, biscuits, gravy, peach cobbler, and coffee will be served. Save the Date Tuesday, February 15th Council on the Go Meet and Greet — 6:00 PM — 6:30 PM Meeting — 6:30 PM John Paul 11 Catholic High School 6720 FM 482, New Braunfels • Announcements and recognitions by the City Manager (M. Browne) No Announcement were provided. • Announcements and recognitions by the Mayor (R. Gutierrez) No announcements were provided. N Hearing of Residents This time is set aside for any person who wishes to address the City Council. Each person should fill out the speaker's register prior to the meeting. Presentations should be limited to no more than 3 minutes. All remarks shall be addressed to the Council as a body, and not to any individual member thereof. Any person making personal, impertinent, or slanderous remarks while addressing the Council may be requested to leave the meeting. Discussion by the Council of any item not on the agenda shall be limited to statements of specific factual information given in response to any inquiry, a recitation of existingpolicy in response to an inquiry, and /or a proposal to place the item on a future agenda. The presiding officer, during the Hearing of Residents portion of'the agenda, will call on those persons who have signed up to speak in the order they have registered. Mayor Gutierrez recognized the following who spoke: . Ms. Maggie Titterington, Chamber President stated that their Health and Wholeness Fair was a success and wanted to give a shout -out to Mr. Richard Dziewit and Ms. Sue Boissonneault who assisted with the parking for this event. Ms. Titterington reminded Council of their upcoming Chamber Luncheon, February 15, 2022 where the cities will be presenting their "State of the City" Videos" - City of Schertz, City of Cibolo, and the City of Selma. Ms. Titterington spoke as a resident of the Fairhaven Homeowners Association, in thanking the Public Works Department, Suzanne Williams and others for assisting in the installation of the long over due speed humps. Discussion and Action Items I Minutes — Consideration and/or action regarding the approval of the minutes of the meetings of January 11, 2022 and January 25, 2022. (B. Dennis /S. Edmondson) Moved by Councilmember Michael Dahle, seconded by Councilmember Allison Heyward to approve the January 11, 2022 and the January 25, 2022 minutes with the correction of the Mayor Pro -Tem. AYE: Mayor Pro -Tem David Scagliola, Councilmember Mark Davis, Councilmember Jill Whittaker, Councilmember Michael Dahle, Councilmember Allison Heyward, Councilmember Tim Brown Passed Public Hearings Mayor Gutierrez read the following into record: 2. Ordinance No. 22 -M -06 - Hold a Public Hearing, consider action amending Chapter 21 Community Development of the City of Schertz Code of Ordinances by adding Article III Enterprise Zones, enabling nomination of qualifying projects to the State of Texas for Enterprise Project Designation. First Reading (M. Browne /A. Perez) Mayor Gutierrez recognized Economic Development Director Adrian Perez who introduced this item 3 and provided the following information: • Program Background - The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program for qualifying costs provided to companies relocating or expanding in Texas. • New or existing companies can secure a State of Texas sales tax refund by: - meeting capital investment thresholds - creating and /or retaining jobs that employ a percentage of enterprise zone residents, or veterans. • Companies must: - Secure the nomination of a local community to submit an application. - Scored by the State of Texas versus other projects on a quarterly basis. • Community Benefit • City of Schertz may offer nominations of up to six projects per biennium for a State Sales Tax rebate (not local sales tax). • Provides an additional tool to encourage companies to locate or expand operations and create new jobs in the community as well as to hire from Veteran populations. • Fiscal Impact • No direct fiscal impact as the sales tax rebate is paid from the portion collected by the State of Texas. • Administrative impact is minimal and can be integrated into ongoing incentive monitoring duties. Staff recommends approval of Ordinance 22 - -06 adding Section III to Chapter 21 of the City of Schertz Code of Ordinances titled Community Development. Mayor Gutierrez opened the Public Hearing, and as no one spoke; closed the Public Hearing for Council comments and questions. Mr. Perez addressed questions from Council. Moved by Councilmember Tim Brown, seconded by Councilmember Michael Dahle to approve Ordinance No. 22 -M -06 on first reading. AYE: Mayor Pro -Tern David Scagliola, Councilmember Mark Davis, Councilmember Jill Whittaker, Councilmember Michael Dahle, Councilmember Allison Heyward, Councilmember Tim Brown Passed Roll Call Vote Confirmation Mayor Gutierrez recognized City Secretary Brenda Dennis who provided the roll call vote confirmation for Agenda Items 1 & 2. CLOSED SESSION Mayor Gutierrez read the following into record: 4 3. City Council will meet in Closed Session under Section 551.074 of the Texas Government Code, Personnel Matters, to conduct the annual evaluation of the City Secretary Brenda Dennis. Mayor Gutierrez recessed the regular meeting into Closed Session at 6:35 p.m. Reconvene into Regular Session Councilmember Whittaker left the meeting at 7: 30 p.m. Mayor Gutierrez reconvened back into Regular Session at 7:36 p.m. 3a. Take any action based on discussions held in Closed Session under Agenda Item 3. Motion was made by Councilmember Heyward seconded by Councilmember Dahle to provide our City Secretary a pay increase of 3% with an effective date of next pay period. AYE: Mayor Pro -Tem Scagliola, Councilmember Davis, Councilmember Michael Dahle, Councilmember Allison Heyward, Councilmember Tim Brown (Councilmember Jill Whittaker had left the meeting at 7:30 p.m) Motion Passed Roll Call Vote Confirmation Mayor Gutierrez recognized Deputy City Secretary Sheila Edmondson who provided the roll call vote confirmation for Agenda Item 3A. Requests and Announcements • Announcements by the City Manager. Nothing further. • Requests by Mayor and Councilmembers for updates or information from staff. Mayor Gutierrez recognized Mayor Pro -Tem Scagliola who stated that some members of the Lions Club had a District meeting last week and one of the members came back with a truck load of little stuffed dolls and animals; they asked if our First Responders have a program where they carry these types of items in their trucks. He was wondering if we had that type of program and if we do the member would like for him to find a home for the box of toys he has. Mayor Pro -Tem Scagliola stated that he would talk to Dr. Browne about this to see what we could do. • Requests by Mayor and Councilmembers that items or presentations be placed on a future City Council agenda. No items were requested. • Announcements by Mayor and Councilmembers • City and community events attended and to be attended • City Council Committee and Liaison Assignments (see assignments below) • Continuing education events attended and to be attended • Recognition of actions by City employees • Recognition of actions by community volunteers 5 Mayor Gutierrez recognized the following Councilmembers: • Councilmember Dahle who stated he attended the First Coffee with the Chamber at their new facility in Selma last week. • Councilmember Heyward who stated that she attended the TML Regional Officer Orientation, Ribbon Cutting Ceremony for Tri Hydro Engineering Corporation. Adjournment Mayor Gutierrez adjourned the meeting at 7:42 p.m. Ralph. Gutierrez, Mayor r.vw Brenda Dennis, City Secretary 6 Agenda No. 2. CITY COUNCIL MEMORANDUM City Council February S, 2022 Meeting: Department: Economic Development Corporation Subject: Ordinance No. 22 -M -06 - Consider action approving an Ordinance amending Chapter 21 Community Development of the City of Schertz Code of Ordinances by adding Article III Enterprise Zones, enabling nomination of qualifying projects to the State of Texas for Enterprise Project Designation. Final Reading (M. Browne /A. Perez) BACKGROUND This action adds Section III to Chapter 21 of the City of Schertz Code of Ordinances titled Community Development. Section III defines the City of Schertz intent to participate in the Texas Enterprise Zone Program (EZP). A community with less than 250,000 in population, may have up to six enterprise projects in a single biennium. City Council approved this on first reading at their meeting of February 1, 2022. GOAL To enhance the competitiveness of the City of Schertz to secure jobs and investment through nomination of qualifying projects to the State Enterprise Zone Program. COMMUNITY BENEFIT Participation in the State Enterprise Zone Program allows the City of Schertz to enhance its incentive offerings to include nomination of up to six projects per biennium for a State Sales Tax rebate (not local sales tax). This provides another tool to encourage companies to locate or expand operations and create new jobs in the community. SUMMARY OF RECOMMENDED ACTION Approve Ordinance No. 22 -M -06 on final to enable participation in the State Enterprise Zone Program and enhance the competitiveness of Schertz in securing new jobs and investment. FISCAL IMPACT None. Successful nomination of a project to receive an enterprise project designation will result in the State of Texas rebating its portion of sales tax revenue paid by the project. Local sales tax is not rebated as a result of participation in this program. RECOMMENDATION City staff recommends approval of Ordinance No. 22 -M -06 on final reading amending Chapter 21 Community Development of the City of Schertz Code of Ordinances by adding Article III Enterprise Zones, enabling nomination of qualifying projects to the State of Texas for designation as enterprise projects. Attachments Ordinance 22 -M -06 Enterprise Zone Program Summary ORDINANCE NO. 22 -M -06 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING CHAPTER 21 COMMUNITY DEVELOPMENT OF THE CITY OF SCHERTZ CODE OF ORDINANCES BY ADDING ARTICLE III ENTERPRISE ZONES; PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Schertz, Texas (the "City ") has previously adopted guidelines and regulations for community development and established the Schertz Economic Development Corporation to accomplish said public purpose; and, WHEREAS, the State Legislature has previously established the state enterprise zone program to establish a process that clearly identifies severely distressed areas of the state and provides incentives by state and local government to induce private investment in those areas by removing unnecessary governmental regulatory barriers to economic growth and to provide tax incentives and economic development program benefits; and, WHEREAS, territory in the municipal boundaries and in the extraterritorial jurisdiction of a municipality is considered to be in the jurisdiction of the municipality for purposes of establishing an enterprise program; and, WHEREAS, before nominating a project or activity of a qualified business in Schertz for designation as an enterprise project, the City Council of the City of Schertz must hold a public hearing and, by ordinance, must identify and summarize briefly any local incentives available; and, WHEREAS, the City Council held a public hearing on February 1, 2022 at which interested persons were allowed to speak and present evidence for or against the City's participation in the program; and WHEREAS, the City Council hereby finds that establishment of an enterprise zone program is in the best interest of the community and would enhance and further the community development of Schertz. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. Chapter 21- Community Development of the Schertz Code of Ordinances is hereby amended by adding Article III Enterprise Zones as set forth in the attached 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 ordinances or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. Section 4. This Ordinance 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 Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Ordinance 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 Ordinance, was given, all as required by Chapter 551, Texas Government Code, as amended. This Ordinance shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED on first reading this I" day of February 2022. PASSED AND ADOPTED on second and final reading this 8th day of February 2022. CITY OF SCHERTZ, TEXAS Mayor Ralph Gutierrez City Secretary Brenda Dennis EXHIBIT A CHAPTER 21- COMMUNITY DEVELOPMENT OF THE CITY OF SCHERTZ CODE OF ORDINANCES IS HEREBY AMENDED BY ADDING ARTICLE III ENTERPRISE ZONES AS SET FORTH BELOW: Article III. - Enterprise Zones Sec. 21-50. Definitions In this article, the following terms shall have the meanings assigned to them in this section unless the context clearly requires otherwise: Enterprise project. The term "enterprise project" shall mean a project or activity designated as an enterprise project pursuant to the Texas Enterprise Zone Act and within the jurisdiction of the City as said jurisdiction is defined by the Texas Enterprise Zone Act. Enterprise zone. The term "enterprise zone" shall mean an area within the jurisdiction of the City as said jurisdiction is defined by the Texas Enterprise Zone Act and designated as an enterprise zone pursuant to the Texas Enterprise Zone Act. Nominated projects or activities. The term "nominated projects or activities" shall mean any project or activity nominated by the City for status as an enterprise project. Qualified business. The term "qualified business" shall have the meaning assigned to that term in the Texas Enterprise Zone Act. Qualified employee. The term "qualified employee" shall have the meaning assigned to that term in the Texas Enterprise Zone Act. Texas Enterprise Zone Act. The term "Texas Enterprise Zone Act" shall mean Texas Government Code Chapter 2303. Sec. 21 -51. Intent to participate in the Texas Enterprise Zone Program; Existing enterprise zones reconfirmed. It is the intent of the City Council that the City of Schertz shall participate in the Texas Enterprise Zone Program as provided in this article. Sec. 21 -52. Incentives available in enterprise zones. To the fullest extent allowed by law, the following local incentives, at the election of the City Council, may be made available to projects or activities in an enterprise zone, including without limitation nominated projects or activities of qualified businesses in an enterprise zone: (a) The city may abate taxes on the increase in value of real property improvements and eligible personal property that locate in an enterprise zone. The level of abatement shall be based upon the amount of capital investment by the business receiving the abatement, the extent to which the business receiving the abatement creates jobs for qualified employees, and any other applicable criteria set forth in the City's Amended and Restated Criteria and Guidelines for Tax Abatement, as same may from time to time be amended by the City Council. (b) The City may provide: 1. Incentives thru its economic development corporation as allowed by law; 2. Grants or incentives through Chapter 380 agreements; 3. Other tax deferrals, tax refunds or tax incentives. 4. Local Sales Tax Refund 5. Freeport Exemption 6. Upon a recommendation from the Schertz Economic Development Corporation, Economic Development Sales Tax (413) Contribution (c) The City may create Tax increment Reinvestments zones to aid in the revitalization of areas with Tax Increment Financing. (d) The City may provide regulatory relief to businesses, including: 1. Zoning changes or variances; 2. Exemptions from unnecessary building code requirements, impact fees, or inspection . fees; or 3. Streamlined permitting. (e) The City may provide enhanced municipal services to businesses, including: 1. Improved police and fire protection. 2. Institution of community crime prevention programs; or 3. Special public transportation routes or reduced fares. (f). The City may provide improvements in community facilities, including: 1. Capita] improvements in water and sewer facilities; 2. Road repair; or 3. Creation or improvement of parks. (g) The City may provide improvements to housing, including: 1. Low - interest loans for housing rehabilitation, improvement, or new construction; or 2. Transfer of abandoned housing to individuals or community groups. (h) The City may provide business and industrial development services, including: 1. Low - interest loans for business; 2. Use of surplus school buildings or other underutilized publicly owned facilities as small business incubators; 3. Provision of publicly owned land for development purposes, including residential, commercial, or industrial development; The City may sell real property owned by the City and located in the enterprise zone in accordance with Section 2303.513 of the Texas Government Code. 4. Creation of special one -stop permitting and problem resolution centers or ombudsmen; or 5. Promotion and marketing services. (i) The City with cooperation with local educational institutions may provide job training and employment services to businesses, including: 1. Retraining programs; 2. Literacy and employment skills programs; 3. Vocational education; or 4. Customized job training. Sec. 21 -53. Enterprise zones designated as reinvestment zones for tax abatement. The enterprise zone areas within the city are reinvestment zones in accordance with the Texas Tax Code, Chapter 312. Sec. 21 -54. Designation of enterprise zone liaison. The Executive Director of the Schertz Economic Development Corporation shall serve as the City's liaison to communicate and negotiate with the Office of the Governor Economic Development & Tourism through the Economic Development Bank and enterprise project(s) and to oversee enterprise zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. (Note: All contracts should separate the costs for building materials and /or equipment from the costs of labor and services in order to be eligible.) Agenda No. 3. CITY COUNCIL MEMORANDUM City Council February 8, 2022 Meeting: Department: Economic Development Corporation Subject: Resolution No. 22 -R -15 - Consideration and /or action approving a Resolution by the City Council of the City of Schertz, Texas, authorizing a program and expenditures as provided for in the Economic Development Performance Agreement between Sysco Corporation and the City of Schertz Economic Development Corporation. (M. Browne /A. Perez) RYE �111 1 .r Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. With more than 58,000 associates, the company operates 343 distribution facilities worldwide and serves more than 650,000 customer locations. For fiscal year 2021 that ended July 3, 2021, the company generated sales of more than $51 billion. In 2012 Sysco established Sysco Central Texas at 1260 Schwab Rd, in Schertz. The existing facility employs approximately 450 team members supporting operations that have resulted in over $100,000,000 in real and personal property investment per the Comal County Appraisal District as of 2021. Sysco is a model corporate partner and has consistently participated in workforce development events such as Job Shadow Day and other community events. To meet increasing demand in the South Texas market Sysco is seeking to expand its Schertz facility. Approval of Resolution 22 -R -15 provides authorization for funding for a three -year 50% rebate on the incremental value of the project expansion. The grant will be capped at up to $25,000 per year or 50% of the incremental value (whichever is less) of the improvement using calendar year 2021 as the base year. Grant is payable annually based on satisfactory performance based on Performance Table A. Unsatisfactory performance may result in withholding of payment or recapture of grant funds paid and /or termination of the agreement. Performance Table A Performance Existing New Total Total Minimum Payroll Real Personal Proposed Period Jan 1 Jobs Jobs Jobs: Property Property Incremental - ratan. Investment Investment; Value Dec 31 Avg Rebate of $70 2022 450 $L-2-5 8M $10M $2.6M Yr. 1 - 2023 8 -mmmmmm.. 458 -------------------------------- M 50% Yr.2 -2024 8 466 M 50% 3 - mm�. 2025 _ 8 474 ,� mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmYr. M 50% Yr4 - 2026 8 482 -mm 8 490 M On Thursday, January 27, 2022 the SEDC Board of Directors approved the attached SEDC Resolution 2022 -1 recommending funding of the attached agreement between the SEDC and Sysco Corporation. GOAL To grow the Schertz economy through Projects that focus on the creation /retention of Primary Jobs through partnerships with local industrial Fortune 500 companies to lower cost of expansion, making Schertz a community of choice for new investment and job creation. COMMUNITY BENEFIT This action helps to secure additional jobs, investment, and expansion prospects for the community through a partnership with Sysco Corporation. Securing and maintaining working relationships with local Fortune 500 companies helps to ensure Schertz is a community of choice for future expansions and /or follow -on investment and* ob creation. In addition, entering into partnerships to lower expansion costs continues to be an essential tool for communities to remain competitive as corporations respond to the post -COVID market with expansions and consolidation activity. SUMMARY OF RECOMMENDED ACTION SEDC Staff recommends approval of Resolution 22 -R -15 authorizing funding Agreement between Sysco Corporation and the City of Schertz Economic Development Corporation. FISCAL IMPACT An annual grant of up to $25,000 (totaling up to $75,000 over the course of the agreement) will be paid through an allocation to the annual incentive budget from the SEDC Reserve Fund. RECOMMENDATION Staff recommends approval of Resolution 22 -R -1.5 authorizing a program and expenditures as provided for in the Economic Development Performance Agreement between Sysco Corporation and the City of Schertz Economic Development Corporation. Attachments SEDC Resolution 2022 -1 Resolution 22 -R -15 SEDC /Sysco Performance agreement SEDC RESOLUTION NO. 2022-1 A RESOLUTION BY THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION, TEXAS AUTHORIZING AN ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION AND SYSCO CORPORATION; AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz Economic Development Corporation ( "SEDC ") is a non- profit industrial development corporation duly established under the Development Corporation. Act of 1979, as amended (Section 501.001 et seq. Texas Local Government Code, formerly the Development Corporation Act of 1979) . (the "Act "); WHEREAS, all of the powers of the corporation are vested in the SEDC Board of Directors (the "Board ") appointed by the governing body of the corporation's authorizing unit; and WHEREAS, the Act authorizes a development corporation to fund certain projects as defined by the Act and request development corporations to enter into performance agreements to establish and provide for the direct incentive or make an expenditure on behalf of a business enterprise under a project; and WHEREAS, Sysco Corporation ( "Company ") through wholly -owned subsidiary Sysco USA I, Inc. desires to expand its Texas operations within its existing building that is located at 1.260 Schwab Rd, Schertz, Comal County, Texas 78132; and WHEREAS, Company intends to maintain 450 full time employees with a minimum annual payroll of $24,800,000 and create an additional 50 jobs totaling 490 jobs and a minimum annual payroll of $27,400,000; and WHEREAS, the SEDC intends to provide a 50% incremental rebate based upon the real and personal property taxes paid by Company for calendar years 2023, 2024 and 2025 to the City of Schertz; and WHEREAS, the location of the Company, as proposed, will contribute to the economic development of the City of Schertz by creating new jobs and increased employment, promoting and developing expanded business enterprises, increased development, increased real property value and tax revenue for the City of Schertz, and will have both a direct and indirect positive overall improvement/stimulus in the local and state economy; and WHEREAS, the SEDC desires to offer incentives to Company to enable Company to expand its local Facility and workforce pursuant to this Agreement in substantial conformity with the City of Schertz Economic Development Incentive Policy and the Act; and WHEREAS, Section 501.158 of the Act requires an incentive agreement to provide at a minimum for a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by the corporation under the agreement and to specify the terms under which repayment must be made if the business enterprise does not meet the performance requirements specified in the agreement; and WHEREAS, Section 501.073 of the Act requires the SEDC's authorizing unit to approve all programs and expenditures. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION THAT: 1. The Board hereby approve the Economic Development Performance Agreement attached hereto as Exhibit A and authorizes the President to execute same, in substantially the same form attached, upon approval of the expenditure by the City Council. 2. The Board hereby recommends the City Council of Schertz consider nomination of Company for a State Enterprise Project Designation. 3. 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 Board. 4. 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. 5. This .Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. 6. 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 board hereby declares that this Resolution would have been enacted without such invalid provision. 7. 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. 8. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this _ day of , 2022. CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION EDocuSigned by: mi oA B79724DDE863462... Sammi Morrill, SEDC Board Secretary for Paul Macaluso, SEDC Board President ATTEST: EDocuSigned by, Jesse Carrasco, SEDC Board Treasurer Exhibit A ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT SYSCO CORPORATION. [SEE ATTACHED] RESOLUTION NO. 22-R-15 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ TEXAS AUTHORIZING A PROJECT AND EXPENDITURE OF THE SCHERTZ ECONOMIC DEVELOPMENT CORPORATION, TEXAS IN THE FORM OF AN ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT CORPORATION AND SYSCO CORPORATION AKA SYSCO USA I, INC.; AND OTHER MATTERS IN CONNECTION THEREWITH WHEREAS, the City of Schertz Economic Development Corporation ( "SEDC ") is a non- profit industrial development corporation duly established under the Development Corporation Act of 1979, as amended (Section 501.001 et seq. Texas Local Government Code, formerly the Development Corporation Act of 1979) (the "Act "); WHEREAS, all of the powers of the corporation are vested in the SEDC Board of Directors (the "Board ") appointed by the governing body of the corporation's authorizing unit; and WHEREAS, the Act authorizes a development corporation to fund certain projects as defined by the Act and request development corporations to enter into performance agreements to establish and provide for the direct incentive or make an expenditure on behalf of a business enterprise under a project; and WHEREAS, Sysco Corporation ( "Company ") through wholly -owned subsidiary Sysco USA I, Inc. desires to expand its Texas operations within its existing building that is located at 1.260 Schwab Rd, Schertz, Comal County, Texas 78132; and WHEREAS, Company intends to maintain 450 full -time employees with a minimum annual payroll of $24,800,000 and create an additional 0 jobs totaling 490 jobs and a minimum annual payroll of $27,400,000; and WHEREAS, the SEDC intends to provide a 50% incremental rebate based upon the real and personal property taxes paid by Company calendar years 2023, 2024 and 2025 to the City of Schertz; and WHEREAS, the location of the Company, as proposed, will contribute to the economic development of the City of Schertz by creating new jobs and increased employment, promoting and developing expanded business enterprises, increased development, increased real property value and tax revenue for the City of Schertz, and will have both a direct and indirect positive overall improvement/stimulus in the local and state economy; and WHEREAS, the SEDC desires to offer incentives to Company to enable Company to expand its local Facility and workforce pursuant to this Agreement in substantial conformity with the City of Schertz Economic Development Incentive Policy and the Act; and WHEREAS, Section 501.158 of the Act requires an incentive agreement to provide at a minimum for a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by the corporation under the agreement and to specify the terms under which repayment must be made if the business enterprise does not meet the performance requirements specified in the agreement; and WHEREAS, Section 501.073 of the Act requires the SEDC's authorizing unit to approve all programs and expenditures. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ TEXAS THAT: 1. 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. 2. The City Council hereby approves the project and expenditure as requested and recommended by the SEDC as represented by the Economic Development Performance Agreement attached hereto as Exhibit A. 3. The City Council acknowledges the recommendation from the SEDC to consider nominating Company for a State Enterprise Project Designation and consider such by separate Resolution. 4. 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. 5. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. 6. 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 board hereby declares that this Resolution would have been enacted without such invalid provision. 7. 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. 8. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED, this _ day of , 2022. CITY OF SCHERTZ Ralph Gutierrez, Mayor ATTEST: Brenda Dennis, City Secretary Exhibit A CORPORATION. SYSCO [SEE ATTACHED] ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT Sysco Corporation This Economic Development Incentive Agreement ( "Agreement ") is entered into to be effective as of , by and between the Schertz Economic Development Corporation, located in Guadalupe County, Texas (hereinafter called "Corporation "), a Texas non- profit industrial development corporation under the Development Corporation Act and governed by TEX. Loc. Gov. CODE chapters 501, 502 and 505 and the Texas Non - Profit Corporation Act and Sysco Corporation, a Delaware Corporation authorized to do business in Texas (hereinafter called "Company "), otherwise known as the "Parties" to this Agreement. RECITALS WHEREAS, the Development Corporation Act of 1979, as amended (Section 501.001 et seq, Texas Local Government Code, formerly the Development Corporation Act of 1979) (the "Act ") authorizes a development corporation to fund certain projects as defined by the Act and requires development corporations to enter into performance agreements to establish and provide for the direct incentive or make an expenditures on behalf of a business enterprise under a project; and WHEREAS, Section 501.158 of the Act requires an incentive agreement to provide at a minimum for a schedule of additional payroll or jobs to be created or retained and capital investment to be made as consideration for any direct incentives provided or expenditures made by the corporation under the agreement and to specify the terms under which repayment must be made if the business enterprise does not meet the performance requirements specified in the agreement; and WHEREAS, Company, through wholly -owned subsidiary Sysco USA I, Inc. desires expand its Schertz Texas operations within an existing building that is located at 1260 Schwab Rd, Schertz, Comal County, Texas 78132; and WHEREAS, over the term of the Agreement, Company intends to create an additional 40 and maintain 450 full time employees with a minimum annual payroll of $27,400,000; and WHEREAS, Corporation intends to provide a 50% incremental rebate based upon the real and personal property taxes paid by Company calendar years 2023, 2024 and 2025 and other terms and conditions set forth in this Agreement; and WHEREAS, the expansion of the Company, as proposed, will contribute to the economic development of the City of Scbertz by creating new jobs and increased employment, promoting and developing expanded business enterprises, increased development, increased real property value and tax revenue for the City of Schertz, and will have both a direct and indirect positive overall improvement /stimulus in the local and state economy; WHEREAS, the Corporation desires to offer incentives to Company to enable Company to expand the existing Facility pursuant to this Agreement in substantial conformity with the City of Schertz Economic Development Incentive Policy and the Act; and 1 WHEREAS, the Parties are executing and entering into this Agreement to set forth certain terms and obligations of the Parties with respect to such matters; and WHEREAS, the Parties recognize that all agreements of the Parties hereto and all terms and provisions hereof are subject to the laws of the State of Texas and all rules, regulations and interpretations of any agency or subdivision thereof at any time governing the subject matters hereof; and WHEREAS, the Parties agree that all conditions precedent for this Agreement to become a binding agreement have occurred and been complied with, including all requirements pursuant to the Texas Open Meetings Act and all public notices and hearings; if any, have been conducted in accordance with Texas law; and WHEREAS, on the Effective Date, the commitments contained in this Agreement shall become legally binding obligations of the Parties. NOW, THEREFORE, in consideration of the mutual covenants, benefits and agreements described and contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and further described herein, the Parties agree as follows: ARTICLE I RECITALS 1. Recitals. The recitals set forth above are declared true and correct by the Parties and are hereby incorporated as part of this Agreement. ARTICLE H AUTHORITY AND TERM 1. Authority. The Corporation's execution of this Agreement is authorized by the Act and constitutes a valid and binding obligation of the Corporation. The Corporation acknowledges that Company is acting in reliance upon the Corporation's performance of its obligations under this Agreement in making the decision to commit substantial resources and money to the establishment of the :Project, hereinafter established. 2. Term. This Agreement shall become enforceable upon the Effective Date, hereinafter established, and shall continue until the Expiration Date, hereinafter established, unless terminated sooner or extended by mutual agreement of the Parties in the manner provided for herein. 3. Purpose. The purpose of this Agreement is to formalize the agreements between the Company and the Corporation for the granting of funds in the form of an incremental real and personal property tax rebate to cover certain costs associated with Company's Project and specifically state the covenants, representations of the Parties, and the incentives associated with Company's commitment to abide by the provisions of the Act and to abide by the terms of this Agreement which has been approved by the Corporation and the Company as complying with the 0) specific requirements of the Act. It is expressly agreed that this Agreement constitutes a single transaction. A failure to perform any obligation by the Company may constitute a breach of the entire Agreement and terminate any further commitments (if any) by the Corporation unless an alternative penalty or remedy is provided for herein. 4. Administration of Agreement. Upon the Effective Date, the Corporation delegates the administration and oversight of this Agreement to the Executive Director of the Corporation. Any proposed amendments to the Agreement shall require the approval of the Board of Directors of the Corporation. ARTICLE III DEFINITIONS As used in this Agreement, the following terms shall have the meanings ascribed below. All undefined terms shall retain their usual and customary meaning as ascribed by common and ordinary usage. "Annual Payroll" shall mean the total wages paid, exclusive of employee benefits, to Full - time Employees at the Schertz Facility. "Bankruptcy" shall mean the dissolution or termination of a Party's existence as a going business, insolvency, appointment of receiver for any party of such Party's property and such appointment is not terminated within ninety (90) days after such appointment is initially made, any general assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against such party and such proceeding is not dismissed within ninety (90) days after the filing thereof. "Certificate of Occupancy" shall mean the signed certificate issued by the City of Schertz Inspections Division granting the Company the right to occupy the Facility and confirming that the entire work covered by the permit and plans are in place. "Default" shall mean failure by any Party to timely and substantially comply with any performance requirement, duty, or covenant if uncured within sixty (60) days of receiving written notice from any other Party. "Effective Date" shall be the date of the last signature authorizing this agreement. "Expiration Date" shall mean the earlier of: 1. April 15, 2028; or 2. The date of termination, provided for under Article VII of this Agreement. "Facility" shall mean the property and improvements that house the Project and being located at 1260 Schwab Rd, Schertz, Comal County, Texas 78132. "Force Majeure" shall mean any contingency or cause beyond the reasonable control of a party, including, without limitation, acts of God or the public enemy, war riot, civil commotion, insurrection, government or de facto governmental action (unless caused by the intentionally wrongful acts or omissions of a party), fires, explosions or floods, strikes, slowdowns or work stoppages. "Full -time Employee" shall mean: (1) an employee with a regular work schedule of at least 36 hours per week as reported on the Texas Employers Quarterly Wage Report from the Texas Workforce Commission and (2) are entitled to at least the customary employer- sponsored employee benefits package afforded by the Company to its similarly situated employees at other locations. "Grant" shall mean the three cash payments from Corporation to Company in the form of a 50% property tax rebate for taxes paid to the City of Schertz on New Incremental Value for calendar years 2023, 2024 and 2025 based upon the taxes paid by Company for the real and tangible personal property on -site at Company's Schertz operation. "New Incremental Value" shall mean, as used herein, calendar year 2023 real and personal property assessment as determined by the Comal County Appraisal District less the 2021 Assessed Value or other means acceptable to the Schertz Economic Development Corporation for the purpose of validating incremental assessed value from the base value established for Calendar year 2021 and associated with new construction for the planned expansion and excluding new personal property investment in the existing facility. "Project" shall mean the expansion of Company's Schertz Facility along with the creation of 40 Full -time Employee jobs. "State of Texas" shall mean the Office of the Texas Comptroller, or its successor. "Tangible Personal Property" shall mean tangible personal property, equipment, machinery, fixtures and inventory owned or leased by Company that is added to the Project subsequent to the execution of this Agreement and is accounted on the tax rolls by the Coma]. County Appraisal District. ARTICLE IV ECONOMIC DEVELOPMENT INCENTIVE TERMS AND CONDITIONS 1. Incentive. Subject to the satisfaction of all the terms and conditions of this Agreement and the obligation of Company to repay the Grant pursuant to Article V hereof, the Corporation agrees to provide Company with the following economic development incentives: Incremental. Property Tax Rebate: Corporation shall provide an incremental property tax rebate of 50% of the New Incremental Value created by the expansion project for calendar year 2023, 2024, and 2025 in the form of an annual grant of up to $25,000, whichever is less. 2 The Grant shall be paid within sixty (60) days after receipt of a copy of the Annual Report reflecting that the applicable performance period objectives have been met as shown in the following Performance Table: Performance Table Performance Period Jan I - Dec 31 Existing Jobs New Jobs Total Jobs at an Avg of $70K Total Minimum Payroll Real Property Investment Personal Property Investment Proposed Incremental Value Rebate Yr. 0 — 2022 450 $24.8M $10M $2.6 Yr. 1 — 2023 8 458 $25.2M 50% Yr. 2 — 2024 8 466 $26.1M 50% Yr. 3 — 2025 8 1 474 $26.5M 50% Yr. 4 — 2026 8 482 $27M Yr. 5 — 2027 8 490 $27.4M State Enterprise Zone Project Nomination: The Corporation will facilitate the City of Schertz adopting an enabling ordinance and nominate Company's project for a State Enterprise Project designation for the March 1, 2022 round of applications. 2. Current Revenue. The funds distributed hereunder shall be paid solely from lawfully available funds to the Corporation. Under no circumstances shall the obligations hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. None of the obligations under this Agreement shall be pledged or otherwise encumbered in favor of any commercial lender and /or similar financial institution. 3. Confidentiality. The Corporation agrees to the extent allowed by law, to keep all tax information and documentation received, pursuant to this Agreement hereof, confidential. In. the event a request is made for such information pursuant to the Texas Public Information Act, Corporation will not disclose the information unless required to do so by the Attorney General of Texas under the provisions of the applicable statutes. 4. Conditions Precedent. The obligation of the Corporation to pay funds in the form of a Grant shall be conditioned upon Company's continued compliance with and satisfaction of each of the conditions set forth in this Agreement as reflected in the Performance Table above. 5. Annual Report. The Company shall submit an Annual Report (an "Annual Report ") for the preceding Calendar Year to the Executive Director of the Corporation each year not later than February 15th. The Annual Report should substantially conform to the Annual Report Form attached as Exhibit A to this Agreement. The first Annual Report will be due February 15th, 2022. ARTICLE V COVENANTS AND DUTIES 5 1. Company's Covenants and Duties. Company makes the covenants and warranties to the Corporation, and agrees to timely and fully perform the obligations and duties contained in Article IV of this Agreement. Any false or substantially misleading statements contained herein or failure to timely and fully perform those obligations and duties within this Agreement shall be an act of Default by the Company. (a) Company is authorized to do business and is in good standing in the State of Texas and shall remain in good standing in the State of Texas and the United States of America during any term of this Agreement and shall timely and fully comply with all of the terms and conditions of this Agreement to commence and complete the Project in accordance with the Agreement. (b) The execution of this Agreement has been duly authorized by Company's authorized agent, and the individual signing this Agreement is empowered to execute such Agreement and bind the entity. Said authorization, signing, and binding effect is not in contravention of any law, rule, regulation, or of the provisions of Company's by -laws, or of any agreement or instrument to which Company is a party to or by which it may be bound. (c) Company is not a party to any Bankruptcy proceedings currently pending or contemplated, and Company has not been informed of any potential involuntary Bankruptcy proceedings. (d) To its current, actual knowledge, and subject to the Certificate of Occupancy (or other approvals and permits to be obtained under subpart (f) immediately below), Company has acquired and maintained all necessary rights, licenses, permits, and authority to carry on its business in the City of Schertz and will continue to use its best efforts to maintain all necessary rights, licenses, permits, and authority. (e) Company agrees to obtain or cause to be obtained, all necessary permits and approvals from City of Schertz and /or all other governmental agencies having jurisdiction over the construction of any improvements to the Facility and shall be responsible for paying, or causing to be paid, to City of Schertz and all other governmental agencies the cost of all applicable permit fees and licenses required for construction of the Project. (f) Company shall cooperate with the Corporation in providing all necessary information to assist them in complying with this Agreement. (g) During the term of this Agreement, Company agrees to not knowingly employ any undocumented workers as part of the Project, and, if convicted of a violation under 8 U.S.C. Section 1324a(l ), Company shall be in Default (subject to the remedies in Article V above). Company is not liable for an unknown violation of this Section by a subsidiary, affiliate, or franchisee of Company or by a person with whom Company contracts provided however that identical federal law requirements provided for herein shall be included as part of any agreement or contract which Company enters into with any subsidiary, assignee, affiliate, or franchisee for which Grant provided herein will be used. 6 (h) Maintain and prepare financial statements in accordance with generally accepted accounting principles in the United States of America as established by the Financial Accounting Standards Board and permit Corporation to visit, examine, audit, inspect, and make and take away copies or reproductions of Company's book of accounts and other records at mutually agreed upon times (provided, Corporation shall pay the reasonable fees and disbursements of any accountants or other agents of Corporation, selected by Corporation, for the foregoing purposes). Unless written notice of another location is given to Corporation, Company's books and records will be located at 1260 Schwab Rd, Schertz, Comal County, Texas 78132. (i) Grant Corporation the right to periodically (and with reasonable advance notice) verify the terms and conditions of this Agreement including, but not limited to, the number of persons employed by Company as a result of the assistance provided hereunder, the addresses of those persons, the number of hours each employee worked during the previous 12 months, the total expenses attributable to training and employing those employees, and the cumulative payroll for Company's Schertz operation. 2. Corporation's Covenants and Duties. The Corporation is obligated to pay Company a Grant in the form of a rebate on personal property taxes paid to the City of Schertz as outlined in Performance Table. The Grant shall be paid within sixty (60) days after receipt of a copy of the Annual Report reflecting that the applicable performance period objectives have been met as set forth in this Agreement. 3. Substantial Compliance and Default. Failure by any Party to timely and substantially comply with any performance requirement, duty, or covenant shall be considered an act of Default if uncured within sixty (60) days of receiving written notice from any other Party. Failure of Company to timely and substantially cure a default will give the Corporation the right to terminate this Agreement, as reasonably determined by the Board of Directors of the Corporation. 4. Recapture. In the event of Default by the Company, the Corporation shall as its sole and exclusive remedy for Default hereunder, after providing Company notice and an opportunity to cure, have the right to discontinue all future Grant payments and recapture all amounts previously paid under this Agreement (as applicable, the "Recaptured Amount "). The Recaptured Amount shall be paid by the Company within one hundred twenty (120) days after the date Company is notified by the Corporation of such Default (the "Payment Date ") provided said Default was not cured. In the event the Recaptured Amount is not repaid by the applicable Payment Date, the unpaid portion thereof shall accrue interest at the rate of two percent (2.00 %) per annum from the Effective Date until paid in full. ARTICLE VI TERMINATION 7 1. Termination. This Agreement shall terminate upon the earliest occurrence of any one or more of the following: (a) The written agreement of the Parties; (b) The Agreement's Expiration Date; (c) Default by Company (at the option of the Corporation). ARTICLE VII DISPUTE RESOLUTION 1. Mediation. If a dispute arises out of or relates to this Agreement or the breach thereof, the Parties shall first in good faith seek to resolve the dispute through negotiation between the upper management of each respective Party. If such dispute cannot be settled through negotiation, the Parties agree to try in good faith to settle the dispute by mediation under the Commercial Mediation Rules of the American Arbitration Association, San Antonio, Texas, before resorting to litigation; provided that a Party may not invoke mediation unless it has provided the other Party with written notice of the dispute and has attempted in good faith to resolve such dispute through negotiation. Notwithstanding the foregoing, any Party may seek immediate equitable relief, without attempting to settle a dispute through mediation, in any case where such Party is entitled to equitable relief by law, the terms of the Agreement, or otherwise. All costs of negotiation and mediation collectively known as alternate dispute resolution ( "ADR ") shall be assessed equally between the Parties with each party bearing their own costs for attorneys' fees, experts, and other costs of ADR and any ensuing litigation. 2. During the term of this Agreement, if Company files and /or pursues an adversarial proceeding against the Corporation regarding this Agreement without first engaging in good faith mediation of the dispute, then, at the Corporation's option, all access to the funds provided for hereunder may be deposited with a mutually acceptable escrow agent that will deposit such funds in an interest bearing account until the resolution of such adversarial proceeding. 3. Under no circumstances will the funds received under this Agreement be used, either directly or indirectly, to pay costs or attorney fees incurred in any adversarial proceeding regarding this Agreement against either the Corporation or the City of Schertz. ARTICLE VIII MISCELLANEOUS 1. Binding Agreement. The terms and conditions of this Agreement shall be binding on and inure to the benefit of the Parties, and their respective successors and assigns. The Executive Director of the Corporation shall be responsible for the administration of this Agreement and shall have the authority to execute any instruments, duly approved by the Corporation, on behalf of the Parties related thereto. Notwithstanding any other provision of this Agreement to the contrary, performance of either Party under this Agreement is specifically contingent on Company obtaining a Certificate of Occupancy from the City of Schertz and commencing operations at the Facility under the terms of this Agreement. N. 2. Mutual Assistance. The Parties 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. 3. Representations and Warranties. The Corporation represents and warrants to Company that this Agreement is within their authority, and that they are duly authorized and empowered to enter into this Agreement, unless otherwise ordered by a court of competent jurisdiction. Company represents and warrants to the Corporation that it has the requisite authority to enter into this Agreement. 4. Assignment. Company shall have the right to assign all of its rights, duties, and obligations under this Agreement to a duly qualified third party with prior written approval of the Corporation. Any assignment provided for herein shall not serve to enlarge or diminish the obligations and requirements of this Agreement, nor shall they relieve Company of any liability to the Corporation including any required indemnity in the event that any Assignee hereof shall at any time be in Default of the terms of this Agreement. The Corporation may demand and receive adequate assurance of performance including the deposit or provision of financial security by any proposed Assignee prior to its approval of an assignment. 5. Independent Contractors. (a) It is expressly understood and agreed by all Parties hereto that in performing their services hereunder, Company at no time will be acting as an agent of the Corporation and that all consultants or contractors engaged by Company respectively will be independent contractors of Company; and nothing contained in this Agreement is intended by the Parties to create a partnership or joint venture between the Parties and any implication to the contrary is hereby expressly disavowed the Parties hereto understand and agree that the Corporation will not be liable for any claims that may be asserted by any third party occurring in connection with services performed by Company respectively under this Agreement, unless any such claims are due to the fault of the Corporation. (b) By entering into this Agreement, except as specifically set forth herein, 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 parties, and nothing contained herein shall ever be construed as a waiver of sovereign or official immunity by the Corporation 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. (c) No employee of the Corporation, or any board member, or agent of the Corporation, shall be personally responsible for any Liability arising under or growing out of this Agreement. 6. Notice. Any notice required or permitted to be delivered hereunder shall be deemed delivered by actual delivery, or on the first business day after depositing the same in the hands of a reputable overnight courier (such as United States Postal Service, FedEx or UPS) and addressed to the Party at the address set forth below: 9 If intended for SEDC Schertz Economic Development Corporation Attention: Exec. Dir. of Economic Development 1400 Schertz Parkway Schertz, TX 78154 With a copy to: Denton, Navarro, Rocha, & Bernal, PC Attention: T. Daniel Santee 2517 North Main Avenue San Antonio, TX 78212 If to the Company: Sysco Corporation Attention: Eddie Tantoco Director of Tax & Business Incentives 1390 Enclave Pkwy Houston, TX 77077 Any Parry may designate a different address at any time upon written notice to the other Parties. 7. 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 3 7. 10 8. Governing Law. The Agreement shall be governed by the laws of the State of Texas, and the venue for any action concerning this Agreement (subject to the dispute resolution mechanisms of Article VIII above) shall be in the Courts of Guadalupe County. The Parties agree to submit to the personal and subject matter jurisdiction of said court. 9. Amendment. This Agreement may be amended by mutual written agreement of the Parties, as approved by the Board of Directors of the Corporation. 10. Legal Construction. In the event any one or more of the provisions contained in this Agreement shall, for any reason, be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect other provisions of this Agreement, 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 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. 11. Payment of Legal Fees. Company commits to reimburse the Corporation for the necessary legal fees in the preparation of any amendment to this Agreement requested by Company. Timely payment shall be made within 60 days of submittal of invoice to Company by the Corporation or its assigns. Each Party shall bear its own attorney's fees in connection with the negotiation of this Agreement. 12. Interpretation. Each of the Parties has been represented by counsel of their choosing in the negotiation and preparation of this Agreement. Regardless of which Party prepared lul the initial draft of this Agreement, this Agreement shall, in the event of any dispute, whatever its meaning or application, be interpreted fairly and reasonably and neither more strongly for or against any Party. 13. 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 Board of Directors of the Corporation. 14. Paragraph Headings. The paragraph headings contained in this Agreement are for convenience only and will in no way enlarge or limit the scope or meaning of the various and several paragraphs. 15. Counterparts. This Agreement may be executed in counterparts. Each of the counterparts shall be deemed an original instrument, but all of the counterparts shall constitute one and the same instrument. 16. Exhibits. Any Exhibits attached hereto are incorporated by reference for all purposes. 17. 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. 18. Indemnification. COMPANY AGREES TO DEFEND, INDEMNIFY AND HOLD THE CORPORATION AND CITY, AND THEIR RESPECTIVE OFFICERS, AGENTS AND EMPLOYEES HARMLESS FROM AND AGAINST ANY AND ALL REASONABLE LIABILITIES, DAMAGES, CLAIMS, LAWSUITS, JUSTMENTS, ATTORNEY FEES, COSTS, EXPENSES AND ANY CAUSE OF ACTION THAT DIRECTLY RELATES TO ANY OF THE FOLLOWING: ANY CLAIMS OR DEMANDS BY THE STATE OF TEXAS THAT THE CORPORATION HAS BEEN ERRONEOUSLY OR OVER -PAID SALES AND USE TAX FOR ANY PERIOD DURING THE TERM OF THIS AGREEMENT AS A RESULT OF THE FAILURE OF COMPANY TO MAINTAIN A PLACE OF BUSINESS AT THE PROPERTY OR IN THE CITY OF SCHERTZ, OR AS A RESULT OF ANY ACT OR OMISSION OR BREACH OR NON - PERFORMANCE BY COMPANY UNDER THIS AGREEMENT EXCEPT THAT THE IMDEMNITY PROVIDED HEREIN SHALL NOT APPLY TO ANY LIABILITY RESULTING FROM THE ACTION OR OMISSIONS OF THE CORPORATION OR CITY. THE PROVISIONS OF THIS SECTION ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. IT BEING THE INTENTION OF THE PARTIES THAT COMPANY SHALL BE RESPONSIBLE FOR THE REPAYMENT OF ANY ANNUAL GRANTS PAID TO COMPANY HEREIN THAT INCLUDES CITY SALES TAX RECEIPTS THAT THE STATE OF TEXAS HAS DETERMINED WAS ERRONEOUSLY PAID, DISTRIBUTED OR ALLOCATED TO THE CORPORATION. 11 19. Additional Instruments. The Parties 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. 20. Force Majeure. Whenever a period of time is herein prescribed for action to be taken by the Company, the Company shall not be liable or responsible for, and there shall be excluded from the computation of any such period of time, any delays due to causes of any kind whatsoever which are caused by Force Majeure. Executed on this day of 2022. ATTEST: DocuSigned by: By. !`5lFnR1 Sd'I � Rd Jesse Carrasco, SEDC Board Treasurer SCHERTZ ECONOMIC DEVELOPMENT CORPORATION DocuSigneddby:: +' �G1OioA AuM(t By: B7Q724DD. Sammi Morrill, SEDC Board Secretary for Paul Macaluso, SEDC Board President 12 Executed on this day of , 2022 COMPANY T"X4 Lei "•' • lgvDocuSigned by: By: f a 4itLvAi 16683231F45A462... Name: Title: 13 Exhibit A , 14 Annual Certification Report Reporting Period: January 1 to December 31, 20 The Annual Certification Report for the Economic Development Incentive Agreement between the City of Schertz Economic Development Corporation and , is due on February 15, 20. Please sign and return the Annual Certification Report form with accompanying narrative. Project Information: Company's legal name: Project address subject to incentive: Company primary contact: Phone number: Employment and Wage Information: E -mail address: Title: Has the Company employed undocumented workers? ❑ Yes ❑ No What is the total number of Full -time Employees located at the Schertz facility during the calendar year? What is the total Annual Payroll for the Schertz facility during the calendar year? Investment Information: What is the 20_ appraised ad valorem tax value for Tangible Personal Property? Narrative: A brief narrative explaining the current year's activities and /or any potential defaults has been provided? ❑ Yes ❑ No Employment: Total full -time employees: Total annual payroll: Number of full -time jobs added in past year: Number of employees that live in Schertz, Texas: Interested in being contacted about workforce training opportunities? ❑ Yes ❑ No Interested in being contacted for assistance with City permits? ❑ Yes ❑ No 15 I certify that, to the best of my knowledge and belief, the information and attachments provided herein are true and accurate and in compliance with the terms of Economic Development Incentive Agreement. I further certify that the representations and warranties contained within the Agreement remain true and correct as of the date of this Certification, and Sysco Corporation. remakes those representations and warranties as of the date hereof. I further certify that the employment and wage information provided is true and accurate to the best of my knowledge and I can provide documentation from the Texas Workforce Commission to support my claim if so requested. I understand that this Certificate is being relied upon by the SEDC in connection with the expenditure of public funds. I have the legal and express authority to sign this Certificate on behalf of Sysco Corporation. Name of Certifying Officer Phone Number Certifying Officer's Title E -Mail Address Signature of Certifying Officer Date STATE OF TEXAS X COUNTY OF GUADALUPE X This information was acknowledged before me on this day of by [first and last name] , [title] for Sysco Corporation, a Texas corporation, on behalf of said agency. Notary Public, State of Texas Notary's typed or printed name My commission expires The Annual Certification Report is to be completed, signed and returned on or before February 15, 20_. Please send an original to the following address: Attention: Executive Director City of Schertz Economic Development Corporation 1400 Schertz Parkway, Bldg. No. 2 Schertz, TX 78154 16 Agenda No. 4. CITY COUNCIL MEMORANDUM City Council February 8, 2022 Meeting: Department: Economic Development Corporation Subject: Resolution No. 22 -R -16 - Conduct a Public hearing and consideration and /or action adopting a resolution nominating Sysco USA I, Inc. as an Enterprise Zone Project under the provisions established in State Law and Chapter 21 of the Code of the City of Schertz. (M. Browne /A. Perez) BACKGROUND Sysco is the global leader in selling, marketing and distributing food products to restaurants, healthcare and educational facilities, lodging establishments and other customers who prepare meals away from home. Its family of products also includes equipment and supplies for the foodservice and hospitality industries. With more than 58,000 associates, the company operates 343 distribution facilities worldwide and serves more than 650,000 customer locations. For fiscal year 2021 that ended July 3, 2021, the company generated sales of more than $51 billion. In 2012, Sysco established Sysco Central Texas at 1260 Schwab Rd, in Schertz serving much of South Texas. The current operation currently employs approximately 450 team members with an operation that has resulted in over $100,000,000 in real and personal property investment per the Comal. County Appraisal District as of 2021. Sysco is a model corporate partner and has consistently participated in workforce development events such as Job Shadow Day and other community events. To meet increasing demand in the South Texas market Sysco is seeking to expand its Schertz facility. Approval of Resolution 22 -R -16 nominates Sysco USA I, Inc., a wholly -owned subsidiary of Sysco Corporation, for a State Enterprise project designation through the Texas Enterprise Zone Program. The Texas Enterprise Zone Program is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state. Texas communities must nominate companies in their jurisdiction to receive an Enterprise Zone designation and thus be eligible to receive state sales and use tax refunds on qualified expenditures. Companies must meet minimum capital investment thresholds and create and/or retain jobs that employ a certain percentage of economically disadvantaged individuals, enterprise zone residents, or veterans. A community with less than 250,000 in population, may have up to six enterprise project nominations in a single biennium. GOAL To grow the Schertz economy through Projects that focus on the creation/retention of Primary Jobs. Projects include partnerships with local industrial Fortune 500 companies to lower cost of expansion, making Schertz a community of choice for new investment and job creation. 1Tuu ► ff This action helps to secure additional jobs, investment, and expansion prospects for the community through a partnership with Sysco Corporation. Securing and maintaining working relationships with local Fortune 500 companies helps to ensure Schertz is a community of choice for future expansions and /or follow -on investment and job creation. In addition, entering into partnerships to lower expansion costs continues to be an essential tool for communities to remain competitive as corporations respond to the post -COVID market with expansions and consolidation activity. SUMMARY OF RECOMMENDED ACTION Approval of Resolution 22 -R -16 will use one of six State Enterprise Project nominations to nominate the Sysco USA I, Inc. expansion to the State of Texas for consideration under the Texas Enterprise Zone Program. The State of Texas will consider this project against other projects across the State for an Enterprise Project designation which would make the project eligible to potentially receive a sales tax refund. If the project is successful it could qualify for a sales tax refund from the State of Texas (not City of Schertz sales tax) based on jobs, wages, and investment. FISCAL IMPACT There is no fiscal impact to the City of Schertz as this project designation may result in State of Texas sales tax refund. No local funding is used to fund this incentive. RECOMMENDATION Staff recommends approval of Resolution 22 -R -16 nominating Sysco USA I, Inc. for a State Enterprise Project designation. Attachments Resolution 22 -R -16 RESOLUTION NO. 22 -R -16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS NOMINATING AN ENTERPRISE ZONE PROJECT UNDER THE PROVISIONS ESTABLISHED IN STATE LAW AND CHAPTER 21 OF THE CODE OF THE CITY OF SCHERTZ; PROVIDING A SEVERABILITY CLAUSE; PROVIDNG AN EFFECTIVE DATE WHEREAS, the City of Schertz, Texas (the "City ") has previously adopted guidelines and regulations for community development and established the Schertz Economic Development Corporation to accomplish said public purpose; and, WHEREAS, the City has previously passed Ordinance No. 22 -M -06 electing to participate in the Texas Enterprise Zone Program, and the local incentives offered under this resolution are the same on this date as were outlined in Ordinance No. 22 -M -06; WHEREAS, the Office of the Governor Economic Development and Tourism (EDC) through the Economic Development Bank (Bank) will consider Sysco USA 1, Inc. (Sysco) as an enterprise project pursuant to a nomination and an application made by the City; WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals; WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act "), Sysco has applied to the City for designation as an enterprise project; WHEREAS, before nominating a project or activity of a qualified business in Schertz for designation as an enterprise project, the City Council of the City of Schertz must hold a public hearing and, by resolution, must identify and summarize briefly any local incentives available; and, WHEREAS, the City Council held a public hearing on February 8, 2022 at which interested persons were allowed to speak and present evidence for or against the City's participation in the program and the nomination of Sysco as an enterprise project; and WHEREAS, the City Council hereby finds that the nomination and support of Sysco as an enterprise project is in the best interest of the community and would enhance and further the community development of Schertz, and further finds that Sysco meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act for the reasons set forth below. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS THAT: Section 1. 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 2. The City fords that Sysco meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: a. Sysco is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site located in an enterprise zone and at least twenty -five percent (25.0 %) of the business' new employees will be residents of an enterprise zone, economically disadvantaged individuals, or veterans; and b. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and C. The designation of Sysco as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. Section 3. The City finds that Sysco meets the criteria for tax relief and other incentives adopted by the City and nominates Sysco for enterprise project status on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability. Section 4. 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 5. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 6. 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 7. 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. This Resolution shall be in force and effect from and after its final passage, and it is so resolved. PASSED AND ADOPTED on this 8th day of February 2022. CITY OF SCHERTZ, TEXAS Mayor Ralph Gutierrez ATTEST: City Secretary Brenda Dennis Agenda No. 5. CITY COUNCIL MEMORANDUM City Council February 8, 2022 Meeting: Department: Planning & Community Development Subject: Ordinance No. 22 -S -07 - Conduct a public hearing and consideration and /or action on a request to amend the Comprehensive Land Use Plan by changing approximately 44 acres of the Future Land Use Map from Mixed -Use Neighborhood land use designation to the Single - Family Residential land use designation, generally located 3,650 feet east from the intersection of Schaefer Road and FM 1518, also known as Bexar County Property Identification Numbers, 309807, 309837, 309814 City of Schertz, Bexar County, Texas. First Reading (B. James /L. Wood /M.Harrison) BACKGROUND Twenty (20) public hearing notices were mailed to the surrounding property owners within two hundred (200) feet of the subject property on December 30, 2021, with a public hearing notice published in the "San Express News ", on January 19, 2022, prior to the City Council public hearing. At the time of this report staff has received zero (0) in favor, and six (6) opposed to the proposed Comprehensive Land Use Plan Amendment. Owner of Property ID 309807 & 309814: Wesley H. Rumpf Owner of Property ID 309837: Ernest E. & Regina E. Marshall Applicant: Raymond Tarin, Moy Tarin Ramirez Engineers GOAL The goal is to amend the Comprehensive Land Use Plan by changing approximately 44 acres of land on the Future Land Use Map from Mixed Use Neighborhood land use designation to Single- Family Residential land use designation. COMMUNITY BENEFIT The community benefit is to promote safe, orderly, efficient development and bring about the City's vision of future growth. UV V., I trKs I a ► 4 XV-13 a I U I N a 1 N _17.XW9 9\ The applicant is requesting to amend the Comprehensive Land Use Plan by changing approximately 44 acres on the Future land Use Map from Mixed Use Neighborhood land use designation to Single - Family Residential land use category. The Future Land Use Map for the subject area was evaluated as part of the Sector Plan Amendment to the Comprehensive Land Use Plan, adopted by City Council on July 16, 2013. The subject properties' area currently designated under the Mixed Use Neighborhood land use designation. Mixed Use Neighborhood is intended to accommodate the development of walkable neighborhoods within South Schertz in the vicinity of the intersection of FM 1518 and Lower Seguin Road. It also would allow the mixture of retail, restaurant, office, civic, and multifamily residential uses. The subject property, not being in proximately to the intersection to capitalize on the benefits that the Mixed Use Neighborhood calls for, but instead it is approximately 3,650 feet away which in turn makes it less attractive for the mixture of retail, restaurant, office, and range of housing types. The applicant is proposing to change the future land use designation of the subject properties to Single - Family Residential. This proposed future land use designation is intended to be comprised of primarily conventional detached dwellings. FISCAL IMPACT None RECOMMENDATION The 2013 Sector Plan Amendment of the Comprehensive Land Use Plan sought to establish future development objectives that balance the traditionally rural and agricultural identify that has shaped the character of Southern Schertz with the opportunity for smart growth as the City continues to develop south of FM 78. The proposed development that led to the applicant filing this Comprehensive Land Use Plan amendment involves the potential of providing larger lot residential products consisting of, 80'x120'. The proposed subdivision does not fit within the Mixed Use Neighborhood land use designation, which is mainly described as retail, restaurants, office, and multifamily residential uses. Therefore, the applicant has proceeded forward with this proposed Comprehensive Land Use Plan Amendment to reclassify the properties under the Single - Family Residential land use designation in order to develop the property with larger lot residential. The South Schertz area, based on recently approved Future Land Use Plan amendments (Carmel Ranch and Saddlebrook both approved in 2020) has begun to see a shift from the rural, large lot, agricultural areas to more of the traditional subdivision type development with a mixture in lot sizes, as well as open space /park, amenity centers, and creating walkable pathways for residents. Additionally, last year the City Council made a motion to approve in the FY2020 -2021 budget to allocate funding for a full Comprehensive Land Use Plan Amendment. This would allow staff the opportunity to tailor the future plans for Schertz to the evolving needs and desires of our residents. The full amendment would enable City Staff to make modifications to the Future Land Use Map that are the more appropriate for each area within Schertz. As the city has seen in recent years there has been deviation from the current plan . to allow for more single- family residential neighborhoods. With the previous and incoming developments they are working to keep the esthetics of southern Schertz, with creating larger lots, vast amounts of open space and developing walkable pathways meandering through the neighborhood. The subject property, like many others in the area, having the land use designation of Mixed Use Neighborhood, were found to be more appropriate at the time the Schertz Sector Plan Amendment of the Comprehensive Land Use Plan done in 2013. However, the property being set back from the major intersection of FM 1518 and Schaefer Road it does not meet the intention of Mixed Use Neighborhood, which calls for connectivity through the development to allow for retail, restaurant, and a mixture of housing types. However, the property does appeal to creating larger lot single family residential products, including open space /park amenities. The Planning and Zoning Commission held a public hearing on January 1.2, 2022, where they made a recommendation of approval to the City Council with a vote 7 -0. Staff recommends approval of the Comprehensive Land Use Plan Amendment from the Mixed- Use Neighborhood land use designation to the Single - Family Residential land use designation. Attachments Ord. No. 22 -5 -07 Comprehensive Plan Amendment Request Letter Exhibit A: Property Exhibit Exhibit B: Current Comprehensive Land Use Plan Aerial Map Public Hearing Notice Map Public Hearing Notice Responses ORDINANCE NO. 22-S-07 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE COMPREHENSIVE LAND USE PLAN BY CHANGING APPROXIMATELY 44 ACRES OF THE FUTURE LAND USE MAP FROM THE MIXED -USE NEIGHBORHOOD LAND USE DESIGNATION TO THE SINGLE - FAMILY RESIDENTIAL LAND USE DESIGNATION, GENERALLY LOCATED APPROXIMATELY 3,650 FEET EAST OF THE INTERSECTION OF SCHAEFER ROAD AND FM 1518, ALSO KNOWN AS BEXAR COUNTY PROPERTY IDENTIFICATION NUMBERS 309807, 309814, AND 309837 CITY OF SCHERTZ, BEXAR COUNTY, TEXAS. WHEREAS, an application to amend the Comprehensive Land Use Plan by changing approximately 44 acres of the Future Land Use Map from Mixed -Use Neighborhood land use designation to Single - Family Residential land use designation, also known as Bexar County Property Identification Numbers 309807, 309814, and 309837, and more specifically described in the Exhibit A attached herein (herein, the "Property ") has been filed with the City; and WHEREAS, the City's Unified Development Code Section 21.4.6.D. provides for certain criteria to be considered by the Planning and Zoning Commission in making recommendations to City Council and by City Council in considering final action on an amendment to the Comprehensive Land Use Plan (the "Criteria "); and WHEREAS, on January 12, 2022, the Planning and Zoning Commission conducted a public hearing and, after considering the Criteria, made a recommendation to City Council to approve the requested Comprehensive Land Use Plan Amendment; and WHEREAS, on February 8, 2022, the City Council conducted a public hearing and after considering the Criteria and recommendation by the Planning and Zoning Commission, determined that the requested Comprehensive Land Use Plan Amendment be approved as provided for herein. • _ Section 1. The current Comprehensive Land Use Plan is hereby amended to change the Future Land Use Map of the property, as shown and more particularly described in the attached Exhibit B, from Mixed Use Neighborhood land use designation to Single - Family Residential land use designation. 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 Ordinance for all purposes and are adopted as a part of the judgment and findings of the Council. Section 3. All ordinances and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. Section 4. This Ordinance 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 Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City hereby declares that this Ordinance would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Ordinance 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 Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 7. This Ordinance shall be effective upon the date of final adoption hereof and any publication required by law. Section 8. This Ordinance shall be cumulative of all other ordinances of the City of Schertz, and this Ordinance shall not operate to repeal or affect any other ordinances of the City of Schertz except insofar as the provisions thereof might be inconsistent or in conflict with the provisions of this Ordinance, in which event such conflicting provisions, if any, are hereby repealed. Approved on first reading the 8th day of February 2022. PASSED, APPROVED AND ADOPTED on final reading the 22nd day of February 2022. Ralph Gutierrez, Mayor INN_ Brenda Dennis, City Secretary (SEAL OF THE CITY) November 5, 2021 Planning & Community Development Department Attn.: Lesa Wood, Director Planning & Community Development Department City of Schertz 1400 Schertz Parkway Schertz, Texas 78154 Re: Rumpf Tract Subdivision Comprehensive Plan Amendment Request Letter Dear Ms. Wood: In connection with the proposed annexation, rezoning, and development of the Rumpf Tract Subdivision, we are requesting that the City's Future Land Use Plan be amended. The subject properties, three in total, are +/- 43.188- Acres, and are located at 12198 Schaefer Road and 12250 Schaefer Road (See Exhibit "1 "). The City of Schertz Sector Plan lists the current Land Use for the subject properties as 'Mixed Use Neighborhood.' We are requesting that these land uses be amended to'Single- Family Residential' (See Exhibit "3 "). Additionally, the owners of the Subject Property will be submitting annexation and zoning requests pursuant to their existing Development Agreements with the City. The proposed rezoning for the subject properties will be to the 'Planned Development District' designation. That application will be filed within the following couple of weeks. The proposed Planned Development District will match the Master Plan for the Rumpf Tract Subdivision and will be submitted at a later time following approval of the Sector Plan revision. The existing 'Mixed Use Neighborhood' land use designations for the subject properties does not allow for the development of a single - family residential subdivision. The proposed change to 'Single - Family Residential' land use designation falls in line with the City of Schertz Future Land Plan of designating the tracts as 'Traditional Neighborhood Design, Transit - Oriented Development.' The proposed subdivision would provide consumers with a larger lot product (80'x120') than is generally available in the surrounding developments, as well as with quick access to FM1518 and the surrounding schools. 12770 Cimarron Path, Suite 100 San Antonio, Texas 78249 Phone: (210) 698 -5051 • Fax: (210) 698 -5085 TBPELS: Engineering F -5297 • Surveying F- 10131500 Page 1 of 2 Exhibit 1: Location Map Exhibit 3: Proposed Land Use p r •. +,. 12321 � i,. SCHAEFER•RD�° (308380) ¢ r� _• C. 12276 SCHAEFER RD a. y u� °i 9F 11218 FLORES (308602) oo'OF, LUNARD of (308434) O 1yy 'joo�0 11pa•CvOO 9-SN yGNP�.yppp 8pti51 1�s;P�2y gp OO 10890 TEXAS VALLEY •,r' ". (309813) 10890 TEXAS � VALLEY (309801) 7'9t �s+ 12120 SCHAEFER RD (309829) 12198 SCHAEFER RD 1 10792 TEXAS VALLEY ' � (309837) SCHAEFER RD (309807) ' (309799) yht .10714 TEXAS VALLEY (309804) 10714 TEXAS VALLEY (309 00) s 02 � OOO�'�m% 12020 SCHAEFER RD (309870) P� O PO t 'PA z o O,p ' 1`"" �O Ja�O LOWER y00 ppg5 SEQUIN RD {: \Nll ;(1143664) App yG�.P •` MULHOUSE DR (1103266) ry# c a7� SCHIERTZ C�LYMA413N @TY"f SERVEDE ={7PRL7R°CdlttY'TY =+.t • " "� tt W�j/wE 6Td Re WNTIM I Z IQ 1140101 =11 :14 Nn 1 :F.3 :4 1 1 DEVELOPMENT The Schertz Planning and Zoning Commission will conduct a public hearing • Wednesdavi January 12i 2022 Q:Q�� located at the Municipal Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Tex • consider and make recommendation • the following item: I • • Sincerely, Megan Harrison Planner STREET ADDRESS: 0-k 0 "- DATE: 1401 Schertz Parkway Schertz, Texas 78154 210,619.1000 O schertmom mz ` 11 • ` INI I I t III � 11 OLVI 01941 WO 13101 The Schertz Planning and Zoning Commission will conduct a public hearing on WedqpAda Jam ry y, x to consider and make recommendation • the following item: 1 6:00 pa p.m. located at the Municil Complex Council Chambers, 1400 Schertz Parkway, Building #4, Schertz, Te Sincerely, ■ 0 1 111TIM 011 Rj 2 R.I U I . .......... . .. . .... . STREET ADDRESS: 17 16 0 ett LI Vol . .. ........... ....... . . DATE: # 140• Schertz Parkway A Schertz, Texas 78154 210.619.1000 schertz.com •..•. Wit DEVELOPMENT # # Sincerely, can Harrison Planner OS MM neutral to El the request for ZC2021-017 am: in favor of El opposed to ;( NAME: lot�Y aW� 5JE 'WWLLSIGNATU (PLEASE PRINT) DATE: - -1, 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 schertz.com DEVELOPMENT DATE: 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 schertz.ccu Q� ME ffiw I � [011 [WO] 2111111 Id: 11-3 :41 � R F5 =-- 6�# M DEVELOPMENT # Sincerely, W. �- I am: in favor of 11 opposed to P/ neutral to El til le request for ZC2021-017 COMMENTS: NAME: D/I A, 7Z SIGNATURE luv4'vt 12,i (PLEASE PRINT) " Y I 1400 Schertz Parkway Schertz, Texas 78154 210.619.1000 schartz.ccz Agenda No. 6. CITY COUNCIL MEMORANDUM City Council February 8, 2022 Meeting: Department: Planning & Community Development Subject: Ordinance No. 22 -S -08 - Conduct a public hearing and consideration and /or action on a request to amend the Comprehensive Land Use Plan by changing approximately 15 acres of the Future Land Use Map from Estate Neighborhood land use designation to the Mixed -Use Neighborhood Center land use designation, generally located 2,500 feet southeast from the intersection of Lower Seguin Road and FM 1518, known as 9120 E FM 1518 N, also known as Bexar County Property Identification Numbers, 309999 and 309997, City of Schertz, Bexar County, Texas. First Reading (B.James /L.Wood /M.Harrison) BACKGROUND Twenty -four (24) public hearing notices were mailed to the surrounding property owners within two hundred (200) feet of the subject property on December 30, 2021, with a public hearing notice published in the "San Antonio Express ", on January 19, 2022, prior to the City Council public hearing. At the time of this report staff received three (3) responses in favor and eight (8) responses opposed to the proposed Comprehensive Land Use Plan Amendment. Owner of Property ID 309999 & 309997: Karen L. Dahle Applicant: Moy Tarin Ramirez Engineers, Raymond Tarin GOAL The goal is to amend the Comprehensive Land Use Plan by changing approximately 15 acres of the Future Land Use Map from the Estate Neighborhood land use designation to the Mixed -Use Neighborhood land use designation. COMMUNITY BENEFIT The community benefit is to promote safe, orderly, efficient development and bring about the City's vision of future growth. kill►I guy El IkAW93 a 7 0141170y 10/1 01/2117 01 OXWO I [Ilk, The applicant is requesting to amend the Comprehensive Land Use Plan by changing approximately 15 acres on land of the Future Land Use Map from the Estate Neighborhood land use designation to the Mixed Use Neighborhood Center land use designation. The Future Land Use Map for the subject area was evaluated as part of the Sector Plan Amendment to the Comprehensive Land Use Plan, adopted by City Council on July 16, 2013. The subject properties' are currently under the Estate Neighborhood land use designation. The Estate Neighborhood land use designation is designed to preserve the rural Southern Schertz by maintaining open space, large Lots, and areas with large wooded lots. The land use designation is intended to have large residential lots (1/2 acre min.), maintain 50% of open space, and to encourage cluster neighborhood development. The applicant is proposing to change the Future Land Use designation of the subject properties to Mixed Use Neighborhood Center. This proposed future land use designation is intended to be comprised of primarily a mixture of retail, restaurant, office, and multifamily residential uses. FISCAL IMPACT None. RECOMMENDATION The 2013 Sector Plan Amendment of the Comprehensive Land Use Plan sought to establish future development objectives that balance the traditionally rural and agricultural identity that has shaped the character of South Schertz with the opportunity for smart growth as the City continues to develop south of FM 78. The proposed development that led to the filing of this Comprehensive Land Use Plan involves the potential for a multifamily type complex. Therefore, the applicant has moved forward with this proposed Comprehensive land Use Plan Amendment to reclassify the properties under the Mixed Use Neighborhood Center future land use designation. The South Schertz area, based on recently approved Future Land Use Plan amendments (Carmel Ranch and Saddlebrook both approved in 2020) has begun to see a shift from the rural, large lot, agricultural areas to more of the traditional subdivision but also a mixture of multifamily to allow open space and amenities. Additionally, in the FY2020 -2021 budget City Council approved to allocated funding for a full Comprehensive Land Use Plan Amendment. This would allow staff the opportunity to tailor the future plans for Schertz to the evolving needs and desires of our residents. The full amendment would enable City Staff to make modifications to the Future Land Use Map that are the more appropriate for each area within Schertz. The subject property, like many others in the area, having the land use designation of Estate Neighborhood, were found to be more appropriate at the time the Schertz Sector Plan Amendment of the Comprehensive Land Use Plan was done in 2013. Staff understands that the intention of the Amendment in 2013 was to maintain the character of Southern Schertz as the rural /agricultural feel and to have larger lots with the 50% open space. However, due to the evolving needs that we are experiencing allowing this amendment to the mixed -use neighborhood land use designation, which is intended to have multifamily, would allow the opportunity for working families to live in the area and have quick access to Randolph Air Force Base and Interstate 10. At less than 20 acres in size this property is not really large enough to be able to develop using the alternative estate neighborhood cluster development. Having this option would be beneficial given that the property has such relatively shallow depth to width. The upcoming Comprehensive Plan amendment would allow staff to reconcile the gaps between our future plan, the residents' desires, and current market conditions. However, this proposed Comprehensive Land Use Plan amendment for the subject tracts would allow the property owners the ability to have their property develop as desired, now, without requiring them to await the full Comprehensive Land Use Plan Amendment. The Planning and Zoning Commission met on January 12, 2022, where they made a recommendation of approval to the City Council with a vote of 4 -3. Commissioner Odom, Commissioner Platt, and Commissioner Hector voted nay to the proposed Comprehensive Land Use Plan Amendment for the following reasons: • Current zoning district, Pre - Development District, would not support the intended use of multi - family • Changing from rural area to more city like • Only able to afford living in Schertz at the end of your career • Infrastructure waits for the development and has to catch up • Affect the character of FM 1518 Staff recommends approval of the Comprehensive Land Use Plan Amendment from Estate Neighborhood land use designation to Mixed Use Neighborhood Center land use designation. Attachments Ord. No. 22 -5 -08 Comprehensive Plan Amendment Request Letter Exhibit A: Property Exhibit Exhibit B: Current Comprehensive Land Use Plan Aerial Map Public Hearing Notice Map Public Hearing Notice Responses ORDINANCE NO. 22-S-08 AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS AMENDING THE COMPREHENSIVE LAND USE PLAN BY CHANGING APPROXIMATELY 15 ACRES OF THE FUTURE LAND USE MAP FROM THE ESTATE NEIGHBORHOOD LAND USE DESIGNATION TO THE MIXED -USE NEIGHBORHOOD LAND USE DESIGNATION, GENERALLY LOCATED APPROXIMATELY 2,500 FEET EAST OF THE INTERSECTION OF LOWER SEGUIN ROAD AND FM 1518, ALSO KNOWN AS BEXAR COUNTY PROPERTY IDENTIFICATION NUMBERS 309997 AND 309999 CITY OF SCHERTZ, BEXAR COUNTY, TEXAS. WHEREAS, an application to amend the Comprehensive Land Use Plan by changing approximately 15 acres of the Future Land Use Map from Estate Neighborhood land use designation to Mixed -Use Neighborhood land use designation, also known as Bexar County Property Identification Numbers 309997 and 309999, and more specifically described in the Exhibit A attached herein (herein, the "Property ") has been filed with the City; and WHEREAS, the City's Unified Development Code Section 21.4.6.D. provides for certain criteria to be considered by the Planning and Zoning Commission in making recommendations to City Council and by City Council in considering final action on an amendment to the Comprehensive Land Use Plan (the "Criteria "); and WHEREAS, on January 12, 2022, the Planning and Zoning Commission conducted a public hearing and, after considering the Criteria, made a recommendation to City Council to approve the requested Comprehensive Land Use Plan Amendment; and WHEREAS, on February 8, 2022, the City Council conducted a public hearing and after considering the Criteria and recommendation by the Planning and Zoning Commission, determined that the requested Comprehensive Land Use Plan Amendment be approved as provided for herein. • _ Section 1. The current Comprehensive Land Use Plan is hereby amended to change the Future Land Use Map of the property, as shown and more particularly described in the attached Exhibit B, from Estate Neighborhood land use designation to Mixed -Use Neighborhood land use designation. 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 Ordinance for all purposes and are adopted as a part of the judgment and findings of the Council. Section 3. All ordinances and codes, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters resolved herein. Section 4. This Ordinance 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 Ordinance or the application thereof to any person or circumstance shall be held to be invalid, the remainder of this Ordinance and the application of such provision to other persons and circumstances shall nevertheless be valid, and the City hereby declares that this Ordinance would have been enacted without such invalid provision. Section 6. It is officially found, determined, and declared that the meeting at which this Ordinance 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 Ordinance, was given, all as required by Chapter 551, as amended, Texas Government Code. Section 7. This Ordinance shall be effective upon the date of final adoption hereof and any publication required by law. Section 8. This Ordinance shall be cumulative of all other ordinances of the City of Schertz, and this Ordinance shall not operate to repeal or affect any other ordinances of the City of Schertz except insofar as the provisions thereof might be inconsistent or in conflict with the provisions of this Ordinance, in which event such conflicting provisions, if any, are hereby repealed. Approved on first reading the 8th day of February 2022. PASSED, APPROVED AND ADOPTED on final reading the 22nd day of February 2022. Ralph Gutierrez, Mayor INN_ Brenda Dennis, City Secretary (SEAL OF THE CITY) i • +i° 12310 LOWER SEGUIN RD (310006) 8880 E FM1518N (310040) yJ 2 A.) 9300 LOFTED LEAF (1211040) B.) 12015 ROCKROOT (1211017) C.) 12014 ROCKROOT (1211018) D.) 12010 ROCKROOT (1211019) E.) 9118 LOFTED LEAF (1211022) F.) 9114 LOFTED LEAF (1211023) G.) 9110 LOFTED LEAF (1211024) H.) 12013 VIGNETTE (1211029) I.) 12017 VIGNETTE (1211030) J.) 12021 VIGNETTE (1211031) K.) 12025 VIGNETTE (1211032) L.) 12024 VIGNETTE (1211033) M.) 12040 LONGLEAF PKWY (1211047) N.) 8914 SAGE STEM (1210898) O.) 8910 SAGE STEM (1210899) P.) 8906 SAGE STEM (1210900) Q.) 8902 SAGE STEM (1210901) R.) 12020 LONGLEAF PKWY (1210927) N W� �E 5 0 n 9240 E FM ' A. 1518 N (310231) 9120 E FM 1518 N 4 D. m (309997) CC), �ry vas ,a '" E r`� m 9120EFM 1518 N G. (309999) 1. H. J. rkm K. h..tA 3 1 -11< ��" N. O. EF 09 F�3a� 8890 E FM yw 1518 N �g'CN (310108) a9y3 12 9261 i • +i° 12310 LOWER SEGUIN RD (310006) 8880 E FM1518N (310040) yJ 2 A.) 9300 LOFTED LEAF (1211040) B.) 12015 ROCKROOT (1211017) C.) 12014 ROCKROOT (1211018) D.) 12010 ROCKROOT (1211019) E.) 9118 LOFTED LEAF (1211022) F.) 9114 LOFTED LEAF (1211023) G.) 9110 LOFTED LEAF (1211024) H.) 12013 VIGNETTE (1211029) I.) 12017 VIGNETTE (1211030) J.) 12021 VIGNETTE (1211031) K.) 12025 VIGNETTE (1211032) L.) 12024 VIGNETTE (1211033) M.) 12040 LONGLEAF PKWY (1211047) N.) 8914 SAGE STEM (1210898) O.) 8910 SAGE STEM (1210899) P.) 8906 SAGE STEM (1210900) Q.) 8902 SAGE STEM (1210901) R.) 12020 LONGLEAF PKWY (1210927) N W� �E 5 M."an Harrison From: Megan Harrison Sent: Thursday, January 6, 2022 4:40 PM To: Lloyd Fairley Subject: RE: Michael Dahle Property Rezone I TOr-TIr recoraY.—T-Cuflr$-YeYPTlT-Merstano IWIr concern ana encalrage';1,91 Co ATUSUP PIMP P&Z meeting. HEM= From: I Sent: Thursday, January 6, 2022 4:33 PM To: Megan Harrison <M Harrison @schertz.com> Subject: RE: Michael Dahle Property Rezone Thank you for the quick response Megan. I will support the reclesignation of land use to "Mixed Use Neighborhood Center" and the Rezoning to R4. ON-20-FAUNTINIM-1 Respectfully, Lloyd Fairley 0 WEB Alamo Industrial I Terrain.Kin. I FACEBOOK I LINKEDIN I IINST M The information transmitted by this email is intended r r the person or entity to which it is addressed. This email may contain proprietom business-confidential andlor privileged material. If you ore not the intended recipient of this message, be aware that any use, review, retransmission, distribution r !Iroduc ♦ or =YA action token in reliance 14♦on this mess♦le is stricLlggicrrohibited r u received this in errorpXkase contact the sender and delete the materiolfrom all computers. Sent: Thursday, January 06, 2022 4:15 PM To: Lloyd Fairley <Ifairley@alamo-group.com> Subject: RE: Michael Dahle Property Rezone FeTerence To e proposieu ompre are any further questions • concerns. From: Sent: Thursday, January 6, 2022 3:48 PM To: can Harrison <MHarrisonC&Dschertz.com> Subject: Michael Dahle Property Rezone Hello Megan, You recently sent out a notice for the rezoning • property at 9120 E FM 1518. This property is adjacent to my property at 12290 Lower Seguin Rd. I would like to have some clarification on a few things before I respond to the survey. 1. Will there be drainage studies and runoff retention requirements for the apartment buildings and other commercial complex? If the property were to receive approval of the Comprehensive Land Use Plan Amendment and Zoning (which has not taken place yet) they would be required to go through the platting process. The first step for Respectfully, Lloyd Fairley . .. .. - I . .-. ALAMO GROUP A WMBER OF ALAMO GROUP WEB Alamo Industrial jerrain Kin, I F��E)qp LINKEDIN INSTAGRAM ",- . . ........ The information transmitted ► this email is intended only for the person or entity to which it is addressed. This email may contain proprietary, business-confidential andlor privileged material. If you are not the intended recipient of this message, be aware that any use, review, retr-n-n-5mb tribution, renroduction- ► onv action taken in reliance unon this message is striculMrohibited. tLyou received contact the sender and delete the materialfrom all computers. • n Harrison From: Karen Dahle <adchfalkor@yahoo.com> Sent: Thursday, January 6, 2022 8:20 AM To: Megan Harrison Subject: ZC2021-018 Land use gume uUmLss =61-mm- vwq Karen Dahle with Pooka, my Journey to the Past and Fire Spirit And not forgotten: ADCH MACH Falkor OAP, OJP, NFP(waitin'by the pot of gold, like his heart) and Vapor AX, AXJ, XF, GS-0, JS-E-OP, RS-E, BN, RN, Charm USA EOJ Team Member,MXJ, MXF, MX, RS-E, GS-E, JS-E-SP, AAD(My Princess) DEVELOPMENT Sincerely, 11 Megan Harrison Planner I am: in favor of lb�� MMged to 0 mix KRLAMIWJWAI neutral to 0 the request for ZC2021 -018 NAME: r14 �IGNATU (PLEASE PRINT) STREET ADDRESS: &;bd 1400 Schertz Parkway Yd cheft Texas 78154 il 210.619,1000 A schertLcom --~- Megan Har(wn Now NAME: -sl A (PLEASE PRIn STREET ADDPESS-. P11111111 livillillilli lq�jl;jjjwlljl�ljjl�l 4 From: eckhofflt@aol.com Sent: Monday, January 10, 2022 11:04 AM To: Megan Harrison Subject: Public hearing Z02021-018 Ma'am, I am opposed to PIN 309999, and 309997 to your Public hearing ZC2021-018. It is bad enough you are widening 1518 to make more noise behind our house and now you want to put even more noise. If I knew all this was going to happen, I won't move out here. Thanks, Thomas Eckhoff 12014 Rockroot. IN NO NE NEW] 0310 FUNA IWOWIVIT"T 1� DEVELOPMEITT Sincerely, T k Am M . OR NA STREET ADDRESS: DATE: uu��- rkway - Schertz, Texas 78154 21 1 19.1 Olt FOURMIZZWO' DEVELOPMENT M �W- % \4«\O .................................... — ................... — ------------- ly Form 1400 Schertz Parkway ScheTiz, Tex6 78164 210,619,1000 w 1., r « Rome lecembef 30,2021 NOTICE OF PUBLIC HEARING Uf •. ♦* PLANNING & COMARIN DEVELOPMENT r to aft d the ;4 nuest and invites you en P WON Sincerely, is Sd Megan Harrison Planner Reply Form PLANNING & CQjjrq(;NITI, D J OP nission would like to hear how you feel about this request and inVi COMMENTS: re STREET ADDRESS: =. r,,, -- DA T 5: I.VicV, 1 L- tav 7 F 1 s4 I I NOTICE OF PUBLIC HEARING fecember 30, 2021 Sincerely, N-- -,-- --- — --l- - Megan Harrison Planner Reply Form STREET ADDRESS: j 1 s— DATE: 1400 Scherlz parkway $010*1 TeXaS 78154 gin mo iT-TA the reauest for zcpo2i -oi 8 1 -7- STREET ADDRESS: ��A4� DATE:- 1,-o-7 Z 2, L;7 - 1400 Schertz Parkway Schortz, Texas 78154 210.619.1000 i,,.`iortZ.ccm Agenda No. 7. CITY COUNCIL MEMORANDUM City Council Meeting: February 8, 2022 Department: Police Department Subject: 2021 Racial Profiling Annual Report - Schertz Police Department BACKGROUND Police Departments within the State of Texas require the submission of annual Racial Profiling Reports. Attached is the final 2021 report from the traffic stops conducted by Schertz Police Department personnel. Attachments 2021 Racial Profiling Report Racial Profiling Report I Full Report Agency Name: Reporting Date: TCOLE Agency Number: Chief Administrator: Agency Contact Information: Phone: Email: Mailing Address: This Agency filed a full report. Schertz Police Department January / 2022 187203 Marc Bane 1 • • 11 mbane @schertz.com 1400 Schertz Parkway Building 6 Schertz, Texas 78154 Schertz Police Department has adopted a detailed written policy on racial profiling. Our policy: (1) clearly defines acts constituting racial profiling; (2) strictly prohibits peace officers employed by the Schertz Police Department from engaging in racial profiling; (3) implements a process by which an individual may file a complaint with the Schertz Police Department if the individual believes that a peace officer employed by the Schertz Police Department has engaged in racial profiling with respect to the individual; (4) provides public education relating to the Schertz Police Department's compliment and complaint process, including providing the telephone number, mailing address, and email address to make a compliment or complaint with respect to each ticket, citation, or warning issued by a peace officer; (5) requires appropriate corrective action to be taken against a peace officer employed by the Schertz Police Department who, after an investigation, is shown to have engaged in racial profiling in violation of the Schertz Police Department 's policy adopted under this article; (6) requires collection of information relating to motor vehicle stops in which a citation is issued and to arrests made as a result of those stops, including information relating to: (a) the race or ethnicity of the individual detained; (b) whether a search was conducted and, if so, whether the individual detained consented to the search; (c) whether the peace officer knew the race or ethnicity of the individual detained before detaining that individual; and (d) whether the peace officer used physical force that resulted in bodily injury, as that term is defined by Section 1.07, Penal Code, during the stop; (e) the location of the stop; and (f) the reason for the stop; and (7) requires the chief administrator of the agency, regardless of whether the administrator is elected, employed, or appointed, to submit an annual report of the information collected under Subdivision (6) to: (a) the Texas Commission on Law Enforcement; and (b) the governing body of each county or municipality served by the agency, if the agency is an agency of a county, municipality, or other political subdivision of the state. Executed by: Marc Bane Chief Administrator Schertz Police Department Date: * */* */2022 Schertz Police Department Racial Profiling Information Total stops: 4,836 Gender Female: 1,818 Alaska Native /American Indian: 3 Asian /Pacific Islander: 55 Black: 295 Hispanic /Latino: 311 White: 1,154 Male: 3,018 Alaska Native /American Indian: 15 Asian /Pacific Islander: 48 Black: 543 Hispanic /Latino: 756 White: 1,656 Race or ethnicity Alaska Native /American Indian: 18 Asian /Pacific Islander: 103 Black: 838 Hispanic /Latino: 1,067 White: 2,810 Was race or ethnicity known prior to stop Yes: 68 No: 4,768 Reason for stop? Violation of law: 160 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 17 Hispanic/Latino: 60 White: 83 Preexisting knowledge: 45 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 9 Hispanic/Latino: 6 White: 30 Moving traffic violation: 3,721 Alaska Native/American Indian: 14 Asian/Pacific Islander: 85 Black: 643 Hispanic/Latino: 775 White: 2,204 Vehicle traffic violation: 908 Alaska Native/American Indian: 4 Asian/Pacific Islander: 18 Black: 168 Hispanic/Latino: 226 White: 492 Street address or approximate location of the stop City street: 3,770 US highway: 512 County road: 152 State highway: 364 Private property or other: 36 Was a search conducted Yes: 199 Alaska Native/American Indian: 1 Asian/Pacific Islander: 0 Black: 45 Hispanic/Latino: 43 White: 110 No: 4,637 Alaska Native/American Indian: 17 Asian/Pacific Islander: 103 Black: 793 Hispanic/Latino: 1,024 White: 2,700 Reason for Search Consent: 26 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 8 Hispanic/Latino: 3 White: 15 Contraband in plain view: 2 Alaska Native /American Indian: 0 Asian /Pacific Islander: 0 Black: 0 Hispanic /Latino: 1 White: 1 Probable cause: 159 Alaska Native /American Indian: 1 Asian /Pacific Islander: 0 Black: 34 Hispanic /Latino: 37 White: 87 Inventory: 8 Alaska Native /American Indian: 0 Asian /Pacific Islander: 0 Black: 1 Hispanic /Latino: 2 White: 5 Incident to arrest: 4 Alaska Native /American Indian: 0 Asian /Pacific Islander: 0 Black: 0 Hispanic /Latino: 2 White: 12 No Search: 4,637 Alaska Native /American Indian: 17 Asian /Pacific Islander: 103 Black: 793 Hispanic/Latino: 1,024 White: 2,700 Was Contraband discovered Yes: 172 Alaska Native/American Indian: 1 Asian/Pacific Islander: 0 Black: 37 Hispanic/Latino: 39 White: 95 No: 27 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 8 Hispanic/Latino: 4 White: 15 Description of contraband Drugs: 157 Alaska Native/American Indian: 1 Asian/Pacific Islander: 0 Black: 31 Hispanic/Latino: 36 White: 89 Currency: 1 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 1 Hispanic/Latino: 0 White: 0 Weapons:2 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 1 Hispanic/Latino: 1 White: 0 Alcohol: 10 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 2 Hispanic/Latino: 2 White: 6 Stolen property: 2 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 0 Hispanic/Latino: 1 White: 1 Other: 21 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 6 Hispanic/Latino: 7 White: 8 Result of the stop Written warning: 2,779 Alaska Native/American Indian: 12 Asian/Pacific Islander: 59 Black: 525 Hispanic/Latino: 626 White: 1,557 Citation: 2,016 Alaska Native/American Indian: 6 Asian/Pacific Islander: 43 Black: 303 Hispanic/Latino: 432 White: 1,232 Written warning and arrest: 24 Alaska Native/American Indian: 0 Asian/Pacific Islander: 1 Black: 6 Hispanic/Latino: 5 White: 12 Citation and arrest: 17 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 4 Hispanic/Latino: 4 White: 9 Arrest Total: 41 Arrest based on Violation of Penal Code: 30 Alaska Native/American Indian: 0 Asian/Pacific Islander: 1 Black: 6 Hispanic/Latino: 7 White: 16 Violation of Traffic Law: 1 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 0 Hispanic/Latino: 0 White: 1 Outstanding Warrant: 10 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 4 Hispanic/Latino: 2 White: 4 Was physical force resulting in bodily injury used during stop? Yes: 4 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 1 Hispanic/Latino: 1 White: 2 No: 4,832 Alaska Native/American Indian: 18 Asian/Pacific Islander: 103 Black: 837 Hispanic/Latino: 1,066 White: 2,808 Was Arrest Due to Contraband Found? Yes 17 Alaska Native/American Indian: 0 Asian/Pacific Islander: 0 Black: 4 Hispanic/Latino: 4 White: 9 No 24 Alaska Native/American Indian: 0 Asian/Pacific Islander: 1 Black: 6 Hispanic/Latino: 5 White: 12 Number of Complaints of Racial Profiling Total 0 Resulted in Disciplinary Action 0 Did Not Result in Disciplinary Action 0