05-25-2023 Agenda SEDC Board Reg Meeting with Packet
NOTICE OF MEETING
AGENDA
MAY 25, 2023
The City of Schertz Economic Development Corporation (SEDC) Board of Directors will hold a regular monthly meeting on Thursday, MAY 25, 2023. at
6:00 p.m. at the Hal Baldwin Municipal Complex, Council Chambers Conference Room, Building No. 4, 1400 Schertz Parkway, Schertz, Texas. This is an
open meeting, subject to the open meeting laws of the State of Texas.
Call To Order
1.Roll call, recognition of visitors, and review of meeting instructions for effective Board
interaction and public participation.
Hearing of Residents
2.This time is set aside for any person who wishes to address the Board. Presentations should
be limited to no more than 3 minutes.The presiding officer will call on those persons who
have signed up to speak.
Minutes
3.Approval of the minutes for the Board of Directors Regular Monthly Meetings held on
Thursday, March 16, 2023, and Thursday, April 27, 2023. (T.Miller/S.Wayman)
Presentations
4.Staff briefing on SEDC monthly financial statement for the month of April 2023.
(J.Walters/S.Wayman)
5.Staff Presentation on Lookout Rd reconstruction (H. Malish/J.Nowak)
6.Staff to give update on International Council of Shopping Centers (ICSC) Las Vegas Trip.
(S. Wayman)
7.Staff Presentation on Business Engagement activities (H. Malish/A. Ritchey)
Discussion Items
8.Resolution 2023-5 - Discussion and possible action approving an amendment to
the economic development performance agreement between the City of Schertz Economic
Development Corporation and Nexus Enterprises LLC ; and other matters in connection
therewith.
Closed Session
9.Called in accordance with Section 551.087 of the Texas Government Code,
Deliberation Regarding Economic Development Negotiations; Closed Meeting. The
governmental body is not required to conduct an open meeting (1) to discuss or deliberate
regarding commercial or financial information that the governmental body has received
from a business prospect that the governmental body seeks to have locate, stay, or expand in
or near the territory of the governmental body and with which the governmental body is
conducting economic development negotiations; or (2) the deliberate the offer of a financial
or other incentive to a business prospect.
Project E-80
SEDC Agenda May 25, 2023 Page 1 of 2
Project E-84
Project E-86
Reconvene to regular session
10.Take any actions based on discussion held in closed session under Agenda Item No.9.
Requests and Announcements
Announcements by staff:
Lauren Shrum, Parks and Recreation Director, will present July 2023.
Requests by Board Members to place items on a future SEDC Board Meeting agenda.
Update on Schertz 312 Project
Adjournment
CERTIFICATION
I, Tracy Miller, Administrative Assistant, of the City of Schertz Economic Development Corporation, do hereby certify that
the above agenda was posted on the official bulletin boards on this the 19th day of May, 2023, at 5:00 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.
Tracy Miller
Administrative Assistant
I certify that the attached notice and agenda of items to be considered by the Schertz Economic Development
Corporation Board of Directors was removed from the official bulletin board on _____day of _______________, 2023.
Name/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 210-619-1070.
The Economic Development Corporation Board of Directors 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.
SEDC Agenda May 25, 2023 Page 2 of 2
Agenda No. 3.
SEDC MEMORANDUM
SEDC
Board Meeting:05/25/2023
Department:City Secretary
Subject:Approval of the minutes for the Board of Directors Regular Monthly
Meetings held on Thursday, March 16, 2023, and Thursday, April 27, 2023.
(T.Miller/S.Wayman)
SUBJECT:
Approval of the minutes for the Board of Directors Regular Monthly Meetings held on Thursday,
March 16, 2023, and Thursday, April 27, 2023. (T.Miller/S.Wayman)
Attachments
04-27-2023 Minutes
03-16-2023 Minutes
MINUTES
Thursday, April 27, 2023
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular Monthly
Meeting on Thursday, April 27, 2023. at 6:00 p.m. at the Hal Baldwin Municipal Complex, Council Chambers
Conference Room, Building No. 4, 1400 Schertz Parkway, Schertz, Texas. This was an open meeting, subject to
the open meeting laws of the State of Texas.
Call To Order
1.Roll call, recognition of visitors, and review of meeting instructions for effective Board interaction
and public participation.
Board President Macaluso presided over the meeting and called it to order at 6:00 p.m. Mr. Macaluso
welcomed everyone in attendance.
Board of Directors Present:Staff Present:
Paul Macaluso, Board President Holly Malish, Interim EDC Director
Jesse Hamilton, Board Vice President Ashley Ritchey, Business Engagement Manager
Sammi Morrill, Board Secretary John Nowak, Engineer
Bryan Snowden, Board Treasurer Sheree Courney, Deputy City Secretary
Roy Richard, Board Member
Board of Directors Absent:Others Present:
Bill Dixon, Board Member Tim Brown, Mayor Pro-Tem, City Council Liaison
Mark Moody, Board Member
Allison Heyward, Councilmember, City Council
Liaison-Alt
Hearing of Residents
2.This time is set aside for any person who wishes to address the Board. Presentations should be
limited to no more than 3 minutes.The presiding officer will call on those persons who have signed up
to speak.
No residents requested to speak.
Minutes
3.Approval of the minutes for the Board of Directors Regular Monthly Meeting held on Thursday,
April 27, 2023. (S.Courney)
No action taken.
Presentations
4.Staff briefing on SEDC monthly financial statement for the month of March 2023. (J.
Walters/H.Malish)
March sales tax received was $681,142, a 17.7% increase over the year prior. The 12-month
rolling average is 9.9% still trending up. Notable expenditures include incentive payments to
Closner Equipment and Ace Mart, and consultant payments to Kimley-Horn and The Retail
Coach.
Total Cash & Investments figure at the end of March was $28.1 million.
5.Presentation on Retail Coach Update (H. Malish/A. Farmer)
Ms. Malish played a recorded presentation from Mr. Farmer that provided an update on the strong
interest in Schertz from various retailers, restaurants, and developers interested in bringing
business to the city. The last six months have been a struggle with readily available sites. Many
that were reached out to want to build around EVO. He also provided information for the
upcoming ICSC conference to be held May 21-23, 2023. He recommends Schertz talk to Merritt
regarding any scheduled meetings at the event they would like a City representative to attend with
them.
6.Presentation on Annual Certifications (H. Malish)
Ms. Malish provided an update on Annual Certifications including rebates paid for the year. 9 out
of 11 are in compliance, one was not responsive, and one is requesting an extension.
7.Presentation on SEDC Funding Commitments (H. Malish)
Ms. Malish presented current status of Board approved funding commitments to date.
Discussion Items
8.Discussion on Lookout Rd Reconstruction Project (H. Malish/J. Nowak)
Ms. Malish recognized Mr. John Nowak, City of Schertz Engineer, who provided an update on
Lookout Rd. reconstruction project and requested additional funding for sidewalks. Costs
associated with adding the sidewalks include adding retaining walls, additional survey and design
work, and right of way acquisition. Estimated costs continue to go up. Current estimated cost for
adding the additional sidewalks is $1.5 million. This is in addition to the amount already
committed by the Board for the Lookout Road reconstruction project of $5.25 million. Bringing
total estimated costs to $6.75 million. Board members requested additional information showing
the proposed costs.
Board President Macaluso recessed Open Session to Closed Session at 6:41 p.m.
Closed Session
9.Called in accordance with Section 551.087 of the Texas Government Code,
Deliberation Regarding Economic Development Negotiations; Closed Meeting. The governmental
body is not required to conduct an open meeting (1) to discuss or deliberate regarding commercial
or financial information that the governmental body has received from a business prospect that the
governmental body seeks to have locate, stay, or expand in or near the territory of the
governmental body and with which the governmental body is conducting economic development
negotiations; or (2) the deliberate the offer of a financial or other incentive to a business prospect.
E-80
E-81
E-84
E-90
Start time: 6:41 p.m.
End time: 7:15 p.m.
Board Present Macaluso reconvened to open session at 7:16 p.m.
Reconvene to regular session
10.Take any actions based on discussion held in closed session under Agenda Item No. 9
No action taken based on discussion in closed session.
Requests and Announcements
Announcements by staff:
Next Board Meeting - May 25, 2023
Ms. Malish shared she will be taking a Leave of Absence beginning May 17, 2023.
April Birthdays - Sammi Morrill
Requests by Board Members to place items on a future SEDC Board Meeting agenda.
Update from Lauren Shrum, Parks and Recreation Director, on Great Hills Trail.
Update on Schertz 312
Adjournment
Board President Macaluso adjourned the meeting at 7:23 p.m.
MINUTES PASSED AND APPROVED THIS ___ DAY _____ 2023.
____________________
Paul Macaluso
Board President
___________________
Sammi Morrill
Board Secretary
MINUTES
Thursday, March 16, 2023
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular Monthly
Meeting on Thursday, March 16, 2023, at 6:00 p.m. at the Hal Baldwin Municipal Complex, Administrative
Conference Room, Building No. 2, 1400 Schertz Parkway, Schertz, Texas. This was an open meeting, subject to
the open meeting laws of the State of Texas.
Call To Order
1.Roll call, recognition of visitors, and review of meeting instructions for effective Board interaction and
public participation.
Board President Macaluso presided over the meeting and called it to order at 6:00 p.m.
Board of Directors Present:Staff Present:
Paul Macaluso, Board President Holly Malish, Interim Director
Jesse Hamilton, Board Vice President Brian James, Deputy City Manager
Sammi Morrill, Board Secretary Ashley Ritchey, Business Engagement Manager
Bill Dixon, Board Member Sheree Courney, Deputy City Secretary
Roy Richard, Board Member James Walters, Finance Director
John Nowak, Engineer
Board of Directors Absent:
Bryan Snowden, Board Treasurer
Mark Moody, Board Member
Others Present:
Tim Brown, Mayor Pro-Tem, City Council Liaison
Allison Heyward, Councilmember, City Council Liaison
2.Introduction of new EDC Business Engagement Manager, Ashley Ritchey (H.Malish)
Holly Malish introduced Ashley Ritchey who provided the Board with a synopsis of her work experience.
Hearing of Residents
3.This time is set aside for any person who wishes to address the Board. Presentations should be limited to no
more than 3 minutes.The presiding officer will call on those persons who have signed up to speak.
No residents were present.
Minutes
4.Approval of the minutes for the Board of Directors Regular Monthly Meeting held on
Thursday, February 23, 2023. (S. Courney / H.Malish)
Board President Macaluso asked for a motion to approve the Minutes of the Board of Directors
Regular Monthly Meeting held on Thursday, February 23, 2023.
Moved by Board Member Roy Richard, seconded Board Vice President Jesse Hamilton
AYE: Board President Paul Macaluso, Board Vice President Jesse Hamilton, Board
Secretary Sammi Morrill, Board Member Bill Dixon, Board Member Roy Richard
Presentations
5.SEDC Resolution No. 2023-4 for the approval of the Independent Auditor’s Report for the SEDC
Annual Financial Report for the Year Ended September 30, 2022. (Clayton Rogers, Auditor
Partner of Pattillo, Brown and Hill, LLP/J. Walters)
Board President Macaluso introduced Mr. Travis Rogers, CPA with Pattillo, Brown and Hill who
presented the firm's audit findings to the Board. Mr. Rogers stated the SEDC is in very good
financial shape and there are no issues or concerns with internal control compliance. He
reported that the SEDC Financial Statements present fairly, and the firm has provided a clean,
unmodified opinion, which is the highest level of assurance an auditor can provide.
Board President Macaluso asked for a motion to approve SEDC Resolution No. 2023-4, a
Resolution by the City of Schertz Economic Development Corporation ("SEDC") Board of
Directors ("The Board") authorizing the approval of the Independent Auditor's Report for the
SEDC Annual Financial Report for the year ended September 30, 2022.
Moved by Board Member Bill Dixon, seconded Board Secretary Sammi Morrill
AYE: Board President Paul Macaluso, Board Vice President Jesse Hamilton, Board
Secretary Sammi Morrill, Board Member Bill Dixon, Board Member Roy Richard
6.Staff briefing on SEDC monthly financial statement for the month of February 2023. (J.
Walters / H.Malish)
Board President Macaluso recognized Mr. James Walters who provided the following.
February 2023 sales tax received was 613,518.59, an 11.1% increase over the year prior.
The12-month rolling average continues to trend up at 9.2%. Notable expenditures for the month
include software and legal expenses.
Total Cash & Investments figure at the end of February was $27.7 million.
7.Presentation on Lookout Rd reconstruction project (H. Malish)
Ms. Malish recognized Mr. John Nowak, City of Schertz Engineer, who provided the following
update on the Lookout Rd. reconstruction project:
The curbs at the intersection of Lookout Rd and Schertz Parkway have been adjusted to
allow easier turning for large trucks.
Sidewalks have been added to connect existing ones to create walkability.
The update in scope is still in line with the $5.25 million budgeted.
Expected to go out for bid this summer with construction to begin in the Fall 2023.
Expected to go out for bid this summer with construction to begin in the Fall 2023.
8.Presentation on Impact Dashboard (H. Malish)
Ms. Malish provided an overview of a new software package that is being considered for
adoption. The new software will provide a more complete and nuanced understanding of
proposed development. It reflects a fundamental shift in ow SEDC approaches the incentive
process. SEDC could potentially offer higher incentive based on revenue from indirect benefits vs
ad valorem taxes alone.
9.Presentation on Annual Certifications (H. Malish)
Ms. Malish provided an update on businesses required to submit an annual certification as part of
their incentive agreement.
Board President Macaluso recessed Open Session to Closed Session at 6:41 p.m.
Discussion and Action Items
Closed Session
10.Called in accordance with Section 551.087 of the Texas Government Code,
Deliberation Regarding Economic Development Negotiations; Closed Meeting. The governmental
body is not required to conduct an open meeting (1) to discuss or deliberate regarding commercial
or financial information that the governmental body has received from a business prospect that the
governmental body seeks to have locate, stay, or expand in or near the territory of the
governmental body and with which the governmental body is conducting economic development
negotiations; or (2) the deliberate the offer of a financial or other incentive to a business prospect.
Project E-80
Project E-81
Project E-84
Start time: 6:43 p.m.
End time: 7:20 p.m.
Board President Macaluso reconvened to open session at 7:21 p.m.
Reconvene to regular session
11.Take any actions based on discussion held in closed session under Agenda Item No. 10.
No action was taken based on discussion in closed session.
Requests and Announcements
Announcements by staff
Next SEDC Regular Board Meeting, April 27, 2023, Council Chambers Conference
Room (H.Malish)
Annual Report status update
Requests by Board Members to place items on a future SEDC Board Meeting agenda
Sammi Morrill, Board Secretary, requested a Strategic Plan and Priorities Workshop
Sammi Morrill, Board Secretary, requested a list of current SEDC commitments and
status of projects
Adjournment
Board President Macaluso adjourned the meeting at 7:22 p.m.
MINUTES PASSED AND APPROVED THIS ____ DAY OF ______ 2023.
____________________
Paul Macaluso
Board President
___________________
Sammi Morrill
Board Secretary
Agenda No. 4.
SEDC MEMORANDUM
SEDC
Board Meeting:05/25/2023
Department:City Secretary
Subject:Staff briefing on SEDC monthly financial statement for the month of April
2023. (J.Walters/S.Wayman)
SUBJECT:
Staff briefing on SEDC monthly financial statement for the month of April 2023. (J.Walters/S.Wayman)
Attachments
April Financials
620-SED CORPORATION
FINANCIAL SUMMARY OVERVIEW
Revenues
Sales Tax 465,332.76$ Payment Received in April
15.8% Annual Increase
9.6%12-Month Rolling Average
Expenses
CITY OF SCHERTZ 271,110.50$
Community Impact 950.00$
Year-to-Date
Total Revenue 3,776,072.07$
Total Expenses 798,627.71$
Over/Under 2,977,444.36$
Cash & Investments
Cash 290,646.22$
Investments 28,158,382.05$
Total 28,449,028.27$
C I T Y O F S C H E R T Z
*************************************************** 2 0 2 2 - 2 0 2 3 ***************************************************
REVENUE AND EXPENSE REPORT (UNAUDITED)
AS OF: APRIL 30th, 2023
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620-SED CORPORATION CURRENT CURRENT PRIOR YEAR CURRENT Y-T-D BUDGET 58.33% OF
FINANCIAL SUMMARY BUDGET PERIOD Y-T-D ACTUAL Y-T-D ACTUAL ENCUMBR BALANCE BUDGET
REVENUE SUMMARY
Taxes 6,548,000 2,252.89 3,296,106.05 3,144,815.85 - 3,403,184.15 48.03%
Miscellaneous 182,000 107,599.93 35,221.96 631,256.22 - (449,256.22) 346.84%
TOTAL REVENUES 6,730,000 109,852.82 3,331,328.01 3,776,072.07 - 2,953,927.93 56.11%
EXPENDITURE SUMMARY
NONDEPARTMENTAL
City Assistance 3,000,079 - - 81,944.29 - 2,918,134.71 2.73%
Fund Charges/Transfer 5,750,000 - - - - 5,750,000.00 0.00%
TOTAL NONDEPARTMENTAL 8,750,079 - - 81,944.29 - 8,668,134.71 0.94%
ECONOMIC DEVELOPMENT
Supplies 1,000 - 867.21 316.76 - 683.24 31.68%
City Support Services 20,000 950.00 2,186.40 6,420.25 256.27 13,323.48 33.38%
Utility Services 2,975 - 1,856.75 49.00 - 2,926.00 1.65%
Operations Support 437,610 810.81 110,835.18 79,372.65 7,436.46 350,800.89 19.84%
Staff Support 25,775 289.61 7,778.67 8,616.21 136.76 17,022.03 33.96%
City Assistance 205,000 (1,000.00) - 42,115.94 - 162,884.06 20.54%
Professional Services 61,300 - 14,429.97 37,280.50 - 24,019.50 60.82%
Fund Charges/Transfers 542,221 271,110.50 506,984.00 542,221.00 - - 100.00%
Operating Equipment 5,000 - 3,920.78 291.11 - 4,708.89 5.82%
TOTAL ECONO DEVELOPMENT 1,300,881 272,160.92 648,858.96 716,683.42 7,829.49 576,368.09 55.69%
TOTAL EXPENDITURES 10,050,960 272,160.92 648,858.96 798,627.71 7,829.49 9,244,502.80 8.02%
** REVENUE OVER(UNDER) EXPEND (3,320,960) (162,308.10) 2,682,469 2,977,444 (7,829.49) (6,290,574.87)
C I T Y O F S C H E R T Z
*************************************************** 2 0 2 2 - 2 0 2 3 ***************************************************
REVENUE AND EXPENSE REPORT (UNAUDITED)
AS OF: APRIL 30th, 2023
2 of 9
620-SED CORPORATION CURRENT CURRENT PRIOR YEAR CURRENT Y-T-D BUDGET 58.33% OF
REVENUES BUDGET PERIOD Y-T-D ACTUAL Y-T-D ACTUAL ENCUMBR BALANCE BUDGET
Taxes
000-411500 Sales Tax Revenue (4B)6,548,000 2,252.89 3,296,106.05 3,144,815.85 - 3,403,184.15 48.03%
TOTAL Taxes 6,548,000 2,252.89 3,296,106.05 3,144,815.85 - 3,403,184.15 48.03%
Miscellaneous
000-491000 Interest Earned 2,000 1,170.46 234.73 7,684.34 - (5,684.34) 384.22%
000-491200 Investment Earnings 180,000 106,429.47 34,987.23 623,571.88 - (443,571.88) 346.43%
TOTAL Miscellaneous 182,000 107,599.93 35,221.96 631,256.22 - (449,256.22) 346.84%
TOTAL REVENUES 6,730,000 109,852.82 3,331,328.01 3,776,072.07 - 2,953,927.93 56.11%
C I T Y O F S C H E R T Z
REVENUE REPORT (UNAUDITED)
*************************************************** 2 0 2 2 - 2 0 2 3 ***************************************************
AS OF: APRIL 30th, 2023
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Cash in Bank
Claim on Operating Cash Pool-Checking 290,646.22$
Cash in Investments
Texas Class Investment-Economic Development Corp 25,917,932.60
Schertz Bank & Trust-Certificate of Deposit 1,099,538.79
Schertz Bank & Trust-Certificate of Deposit 1,140,910.66
Total Cash in Bank & Investments 28,449,028.27$
CASH IN BANK AND INVESTMENTS
AS OF: APRIL 30th, 2023
SED CORPORATION
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0.8%
8.0%
24.8%
3.2%
11.1%
17.7%
15.8%
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP
4B SALES TAX
By Collection Month
2022-23 2021-22 2020-21 2019-20
5 of 9
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99
10
1
10
3
10
5
10
7
12 Month Rolling Average
Oct 2014 -Present
Rolling 12 Month Average Long Term Average
6 of 9
Sales Tax Industry Breakdown 2022-23
% of Sales Tax
Industry Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Spt
Unclassfied 1%1%0%0%0%1%0%
Ag, Forestry, Fishing, Hunting 1%0%1%1%0%0%1%
Mining 0%0%0%0%0%0%0%
Utilities 3%8%2%2%5%2%2%
Construction 5%7%9%6%9%11%7%
Wholesale Trade 24%24%22%23%18%22%23%
Information 6%4%6%5%5%6%5%
Finance & Insurance 0%0%0%0%0%0%0%
Real Estate & Rental & Leasing 3%2%3%3%2%3%3%
Professional, Scientific, & Techical Services 1%1%1%1%1%1%2%
Management of Companies & Enterprises 0%0%0%0%0%0%0%
Administrative & Support & Waste Management & Remediation Services 2%2%3%3%2%3%2%
Educational Services 0%0%0%0%0%0%0%
Health Care & Social Assistance 0%0%0%0%0%0%0%
Arts, Entertainment, & Rec 0%0%0%0%0%0%0%
Accommodation & Food 8%8%9%9%9%8%9%
Other Services 2%2%2%2%2%2%2%
Public Admin 0%1%0%0%0%0%0%
Manufacturing 8%7%7%7%9%8%8%
Retail Trade 35%32%34%37%36%33%33%
Transportation & Warehousing 0%0%0%0%0%0%0%
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Sales Tax Industry Breakdown 2021-22
% of Sales Tax
Industry Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Spt
Unclassfied 1%0%0%0%0%0%0%0%1%1%1%1%
Ag, Forestry, Fishing, Hunting 0%1%1%1%0%0%0%1%1%0%1%0%
Mining 0%0%0%0%0%0%-2%0%0%0%0%0%
Utilities 2%7%3%2%5%2%3%6%2%2%6%2%
Construction 8%9%6%5%6%8%9%5%8%6%6%7%
Wholesale Trade 14%16%19%17%16%17%22%21%23%22%24%25%
Information 7%4%7%6%5%7%5%6%4%6%5%5%
Finance & Insurance 0%0%0%0%0%1%0%0%0%0%0%0%
Real Estate & Rental & Leasing 4%3%3%7%3%3%3%3%3%3%2%3%
Professional, Scientific, & Techical Services 11%1%1%2%2%1%1%1%1%1%2%2%
Management of Companies & Enterprises 0%0%0%0%0%0%0%0%0%0%0%0%
Administrative & Support & Waste Management & Remediation Services 2%2%0%2%3%2%2%2%2%2%2%2%
Educational Services 0%0%0%0%0%0%0%0%0%0%0%0%
Health Care & Social Assistance 0%0%0%0%0%0%0%0%0%0%0%0%
Arts, Entertainment, & Rec 0%0%0%0%0%0%0%0%0%0%0%0%
Accommodation & Food 8%9%10%8%9%9%9%9%8%8%7%7%
Other Services 2%2%2%3%3%2%2%2%2%2%2%2%
Public Admin 1%0%0%0%0%0%0%0%0%0%0%1%
Manufacturing 12%12%15%12%10%11%8%8%8%8%6%7%
Retail Trade 29%34%32%36%38%35%36%34%36%38%34%35%
Transportation & Warehousing 0%0%0%0%0%0%0%0%0%0%0%0%
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FUND VENDOR NAME DESCRIPTION AMOUNT
Economic Development SED CORPORATION THE WATERMARK GROUP Business Cards - Ritchey 43.00
CITIBANK Chili's 208.61
Parking - St. Mary's 10.00
Parking - Hyatt 43.30
Northeast Partnership 20.00
Abel's Diner 43.41
Adobe Stock - Apr 29.99
River Whey Creamery 480.00
Community Impact 950.00
FormAssembly - Apr 99.00
MailChimp - March 42.11
DAVIS SUCCESS SOLUTIONS DISC Profile 81.00
COMAL COUNTY CLERK Refund -1,000.00
CITY OF SCHERTZ Service Contract 271,110.50
SUBTOTAL:272,160.92
TOTAL:$272,160.92
APRIL 2023 PAYABLES REPORT
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Agenda No. 5.
SEDC MEMORANDUM
SEDC Board Meeting:05/25/2023
Department:Economic Development Corporation
Subject:Staff Presentation on Lookout Rd reconstruction (H. Malish/J.Nowak)
BACKGROUND
Lookout Road is the next reconstruction and reinvestment project in the Schertz industrial park.
COMMUNITY BENEFIT
FISCAL IMPACT
The upcharge in construction costs can be associated with the redesign of the intersections to
accomodate 18-wheeler traffic and provide sidewalks. John Nowak will provide the updated breakdown
of costs including requested costs of sidewalks.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of the additional charges for Lookout Rd. reconstruction to better
accomodate traffic and walkability.
Agenda No. 6.
SEDC MEMORANDUM
SEDC
Board Meeting:05/25/2023
Department:Economic Development Corporation
Subject:Staff to give update on International Council of Shopping Centers (ICSC)
Las Vegas Trip. (S. Wayman)
BACKGROUND
Retail is a much-desired industry and a primary objective of City Council to deliver to Schertz
residents.
COMMUNITY BENEFIT
Retail will make Schertz a desirable place to live, work and play and has the potential to draw a regional
crowd.
FISCAL IMPACT
SUMMARY OF RECOMMENDED ACTION
Staff will present on ICSC trip as part of a multi-year plan to help recruit retail.
Agenda No. 7.
SEDC MEMORANDUM
SEDC
Board Meeting:05/25/2023
Department:Economic Development Corporation
Subject:Staff Presentation on Business Engagement activities (H. Malish/A.
Ritchey)
BACKGROUND
New Business Engagement Manager established a goal to increase engagement among businesses in the
industrial parks.
COMMUNITY BENEFIT
Increased engagement and connectivity amongst employers, employees and the SEDC
FISCAL IMPACT
The regional job fair and snow cone celebration were in line with the marketing budget.
SUMMARY OF RECOMMENDED ACTION
Staff recommends further similiar activity between SEDC and local employers.
Agenda No. 8.
SEDC MEMORANDUM
SEDC
Board Meeting:05/25/2023
Department:Economic Development Corporation
Subject:Resolution 2023-5 - Discussion and possible action approving an amendment to
the economic development performance agreement between the City of Schertz
Economic Development Corporation and Nexus Enterprises LLC ; and other
matters in connection therewith.
BACKGROUND
In June 2019, Nexus Enterprises LLC entered into an agreement to fulfill and maintain minimum
performance criteria. Throughout the term of the agreement, the Company must create and maintain the
following minimum:
87 Full Time Employees
$4,616,770 Annual Payroll
In 2022, Nexus Enterprises LLC failed to meet the minimum performance criteria falling below the full
time employee count and annual payroll
COMMUNITY BENEFIT
The Nexus 2022 narrative attached to the certification indicating jobs and payroll stated that in the
beginning of 2023, the minimum performance criteria was already exceeded and didn't expect to fall
below for the remainder of the agreement.
FISCAL IMPACT
SUMMARY OF RECOMMENDED ACTION
SEDC staff recommend extending the length of the agreement for 1 more year.
Attachments
Nexus First Amendment to Agreement
Res 2023-5 NEXUS
Nexus Amendment 04/04/23
1
FIRST AMENDMENT TO ECONOMIC DEVELOPMENT
PERFORMANCE AGREEMENT
(Nexus Enterprises LLC)
This FIRST AMENDMENT TO the NEXUS ECONOMIC DEVELOPMENT
PERFORMANCE AGREEMENT (this "Amendment"), dated to be effective as of the date
that the Amendment is signed by the last party to the Amendment (the "Effective Date"), is
among the City of Schertz, Texas, a Texas home-rule municipality (the "City"), the City of
Schertz Economic Development Corporation, a Texas non. profit industrial development
corporation (the "SEDC"), and Nexus Enterprises LLC ("Nexus"), and collectively with the
City and the SEDC, the "Parties").
WHEREAS, the Parties entered into An Economic Development Agreement, dated effective
June 20, 2019 (the "Agreement") establishing a tax incentive agreement between the Parties to lease
a facility, create jobs and increase business personal property by Nexus (the "Nexus Enterprises
LLC"); and
WHEREAS, the Parties subsequently were approved by SEDC resolution SEDC 2019-13 on
June 20, 2019 and City of Schertz City Council resolution 19-R-80 on June 25, 2019.
WHEREAS, the Agreement provides that Nexus will receive TWO HUNDRED THOUSAND
DOLLARS ($200,000) for operations of facility and the Incentive shall be reduced according to the
schedule in Section 8(3b) of the Agreement; and
WHEREAS, in year two (2022), Nexus reported 82 jobs with a payroll of $4,141,305,
resulting in a deficit of 5 jobs and payroll shortage of $475,465.00 per the Agreement; and
WHEREAS, the Parties desire to amend the Agreement as set forth below.
l. Minimum Performance Criteria. Notwithstanding any provision in the Agreement to the
contrary. Adherence to the Minimum Performance Criteria will be extended an additional year
into Year 4 (2024) and therein must maintain 87 jobs with $4,616,770 in annual payroll and
minimum personal property. The schedule in Section 5.4 of the Agreement shall be amended
per the table below.
Time Period Minimum Performance Criteria
Full Time
Employees
Annual Payroll Personal Property
Year 0 – 2020 68 Not required Not required
Year 1 - 2021 87 $4,616,770 $475,000
Year 2 - 2022 82 $4,141,305 $381,250
Year 3 – 2023 87 $4,616,770 $310,250
Year 4 – 2024 87 $4,616,770 $304,000
Nexus Amendment 04/04/23
2
2. Authority to Sign. The individual signing below for Nexus hereby certifies that he/she is
authorized to sign this Amendment on behalf of Nexus and that no authorizations or approvals
are required that have not already been obtained.
3. Notices. The following contact information for notices and requests for information or action
under this Amendment and the Agreement (originally set forth in Section 7 of the Agreement)
are hereby amended:
If to the SEDC: Schertz Economic Development Corporation
1400 Schertz Parkway
Schertz, Texas 78154
Attention: Director of Economic Development
Phone: (210) 619-1072
E-Mail: hmalish@schertz.com
With a copy to:
Denton, Navarro, Rocha, & Bernal, PC
Attention: T. Daniel Santee
2517 North Main Avenue
San Antonio, TX 78212
If to the City: City of Schertz, Texas 1400
Schertz Parkway
Schertz, Texas 78154
Attention: Deputy City Manager
Facsimile: (210) 619-1023
E-Mail: bjames@schertz.com
7. No Other Amendments' Conflict. Except as expressly set forth herein, all other terms and
provisions of the Agreement shall remain in full force and effect. In the event there is a conflict
between the terms and provisions of this Amendment and the Agreement as originally
executed, the terms and provisions of this Amendment shall control.
8. Counterparts, This Amendment may be executed in multiple counterparts, all of which
together shall constitute one instrument.
[remainder of page intentionally left blank]
Nexus Amendment 04/04/23
3
SIGNATURE PAGE TO
FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
(Nexus Inc.)
IN WITNESS WHEREOF, the Parties have executed this Amendment to be effective as of
the Effective Date.
COMPANY:
Nexus Enterprises, LLC.
a Texas limited liability company
By: ____________________________
Larry Edward Bolton
President and Chief Executive Officer
Executed on this ____ day of _____________, 2023.
City of Schertz Economic
Development Corporation
By:____________________________
Name: Paul Macaluso
Nexus Amendment 04/04/23
4
Title: President
- 1 -
SEDC RESOLUTION NO. 2023-5
A RESOLUTION BY THE CITY OF SCHERTZ ECONOMIC
DEVELOPMENT CORPORATION , AUTHORIZING A N AMENDMENT
TO THE ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT
BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT
CORPORATION A ND NEXUS ENTERPRISES, LLC.; 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, forme rly the
Development Corporation Act of 1979) (the “Act”);
WHEREAS, all powers of the corporation are vested in the SEDC Board of Directors (the
“Board”) appointed by the governing body of the corporation’s authorizing unity; 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, the Parties entered into An Economic Development Agreement, dated
effective June 20, 2019 (the "Agreement ") establishing a grant agreement between the Parties to
lease a facility, create jobs and increase business personal p roperty by Nexus (the "Nexus
Enterprises LLC "); and
WHEREAS, the Parties subsequently were approved by SEDC Resolution 2019-13 on
June 20, 2019, and City of Schertz City Council Resolution 19-R-80 on June 25, 2019; and
WHEREAS, the Agreement provides that Nexus received TWO HUNDRED
THOUSAND DOLLARS ($200,000) for operations of facility; and
WHEREAS, in year two (2022), Nexus reported 82 jobs with a payroll of $4,141,305,
resulting in a deficit of 5 jobs and payroll shortage of $475,465.00 per the Agreement; and
WHEREAS, the Parties desire to amend the Agreement to extend the agreement another
year due to failure to meet the minimum performance agreement criteria in 2022; and
WHEREAS, Section 501.073 of the Act requires the SEDC’s authorizing unit t o approve
all programs and expenditures, City Council had previously authorized this expenditure.
- 2 -
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
CITY OF SCHERTZ ECONOMIC DEVELOMENT CORPORATION THAT:
Section 1. The Schertz Economic Development Board hereby approve the Economic
Development Performance Agreement amendment attached hereto as Exhibit A and authorizes the
President to execute and deliver in the substantial form as attached.
Section 2. The recitals contained in the preamble hereof are hereby f ound 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 .
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with
any provision of this Resolution are hereby repealed to the extent of such conflict, and the
provisions of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the laws
of the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Resolution and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the board hereby
declares that this Resolution would have been enacted without such invalid provision.
Section 6. It is officially found, determined, and declared that the meeting at which
this Resolution is adopted was open to the public and public notice of the time, place, and subject
matter of the public business to be considered at such meeting, including this Resolution, was
given, all as required by Chapter 551, Texas Government Code, as amended .
Section 7. This Resolution shall be in force and effect from and after its final passage,
and it is so resolved.
PASSED AND ADOPTED, this ____ day of ______, 2023.
CITY OF SCHERTZ ECONOMIC
DEVELOPMENT CORPORATION
Paul Macaluso, SEDC Board President
ATTEST:
Sammi Morrill, SEDC Board Secretary
- 3 -
Exhibit A
ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT
NEXUS ENTERPRISES, LLC.
[SEE ATTACHED]