12-14-2023 Agenda SEDC Board Meeting with Packet
NOTICE OF MEETING
AGENDA
DECEMBER 14, 2023
The City of Schertz Economic Development Corporation (SEDC) Board of Directors will hold a regular monthly meeting on Thursday, DECEMBER 14, 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.
2.SEDC Board Member Oath of Office for member appointed by City Council on 12/05/2023 for a term
of two years ending on 09/30/2025 (S.Courney)
Reynaldo Chavez
3.Election of Schertz Economic Development Corporation officers. (S. Morrill)
Hearing of Residents
4.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
5.Approval of the minutes for the Board of Directors Regular Monthly Meeting held Thursday,
November 16, 2023. (T.Miller)
Presentations
6.Staff briefing on SEDC monthly financial statement for the month of October 2023. (S.Wayman)
7.Presentation by Will Collins with Merit Acquistions, LLC on Project Coin. (S.Wayman)
Public Hearing
8.Resolution 2023-15 - Authorizing the Executive Director of the Schertz Economic Development
Corporation to enter into an Incentive Agreement with Merit Acquisitions, LLC. (S.Wayman)
Discussion Items
9.City of Schertz Parks & Recreation Department priorities and current and planned projects. (L.Shrum)
10.Tri-County Parkway and Lookout Road update. (J.Nowak)
Closed Session
11.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-88
E-92
SEDC Agenda December 14, 2023 Page 1 of 2
Reconvene to Regular Session
12.Take any actions based on discussion held in closed session under Agenda Item No. 11.
13.Resolution 2023-15 - Authorizing the Executive Director of the Schertz Economic Development
Corporation to enter into an Incentive Agreement with Merit Acquisitions, LLC.
Requests and Announcements
Announcements by staff:
Offices closed December 22-25, 2023 - Christmas Holiday
Offices closed January 1, 2024 - New Year's Day
Offices closed January 15, 2024 - Martin Luther King Jr. Day
Next Regular Board Meeting - January 25, 2024
Requests by Board Members to place items on a future SEDC Board Meeting agenda.
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 8th day of December, 2023, at 4:00 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- Economic
Development
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 December 14, 2023 Page 2 of 2
Agenda No. 5.
SEDC MEMORANDUM
SEDC
Board Meeting:12/14/2023
Department:Economic Development Corporation
Subject:Approval of the minutes for the Board of Directors Regular Monthly Meeting
held Thursday, November 16, 2023. (T.Miller)
SUBJECT:
Approval of the minutes for the Board of Directors Regular Monthly Meeting held Thursday, November 16, 2023.
(T.Miller)
Attachments
11-16-2023
MINUTES
Thursday, November 16, 2023
The City of Schertz Economic Development Corporation (SEDC) Board of Directors met for a Regular Monthly
Meeting on Thursday, November 16, 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 Paul 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 Scott Wayman, Executive Director
Bill Dixon, Board Member Holly Malish, Deputy Director
Mark Moody, Board Member Ashley Ritchey, Business Engagement Manager
Eryn McElory, Board Member Tracy Miller, Administrative Assistant
Henry Hayes, Board Member Brian James, Deputy City Manager
Donna Steward, Board Member
Board of Directors Absent:Others Present:
Sammi Morrill, Board Secretary/Treasurer Bryan Byrd, Titan Development
Ann McNeely, Citizen
2.SEDC Board Member Oath of Office for member appointed by City Council on 11/14/2023 for a term of
two years ending on 09/30/2025. (S.Edmondson)
Appointment: Donna Steward
Sheila Edmondson, City Secretary, administered the Oath of Office to the new Board Member.
Board President Paul Macaluso welcomed her and asked Board Member Donna Steward to give an
introduction. Ms. Steward gave a brief introduction of her background.
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 signed up to speak. No comments were made.
Minutes
Minutes
4.Approval of the minutes for the Board of Directors Regular Monthly Meeting held on Thursday, October
26, 2023. (T.Miller)
Board President Paul Macaluso asked for a motion to approve the Minutes of the Board of Directors
Regular Monthly Meeting held Thursday, October 26, 2023.
Motion by Board Member Henry Hayes, seconded by Board Member Bill Dixon.
AYE: Board President Paul Macaluso, Board Member Bill Dixon, Board Member Mark Moody,
Board Member Eryn McElroy, Board Member Henry Hayes, Board Member Donna Steward.
Presentations
5.Presentation by Bryan Byrd on Titan Schertz 312 Project. (S.Wayman)
Scott Wayman, Executive Director, gave a brief overview of the Incentive Program and introduced Bryan
Byrd, Development Manager of Titan Development. Mr. Bryd gave a brief overview of the Titan
Schertz 312 Project and discussed the requested changes to the amendment.
Discussion Items
6.Resolution 2023-7 - Authorizing the amendment to the Performance Agreement Scherz 312 Phase I,
Titan, Schertz 35 Business Park located on Tejas Way south of Doerr Ln. (S.Wayman)
Board President Paul Macaluso asked for a motion to approve SEDC Resolution 2023-7 authorizing the
amendment to the Performance Agreement Schertz 312 Phase I, Titan, Schertz 35 Business Park located
on Tejas Way south of Doerr Ln.
Motion by Board Member Eryn McElroy, seconded by Board Member Donna Steward.
AYE: Board President Paul Macaluso, Board Member Bill Dixon, Board Member Mark Moody,
Board Member Eryn McElroy, Board Member Henry Hayes, Board Member Donna Steward.
Board President Paul Macaluso recessed the meeting to closed session at 6:20 p.m.
Closed Session
7.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-92
E-88
E-86
Start time: 6:21 p.m.
End time: 7:20 p.m.
Board President Paul Macaluso reconvened to regular session at 7:21 p.m.
Reconvene to Regular Session
8.Take any actions based on discussion held in closed session under Agenda Item No. 7
No action was taken based on discussion held in closed session.
Requests and Announcements
Announcements by staff:
Service Recognition - Board President Paul Macaluso
Offices closed for Thanksgiving November 23-24, 2023
Holiday Dinner - December 7, 2023
Next Board Meeting - December 14, 2023
Lauren Shrum, Parks and Recreation Director, will present December 2023
John Nowak, Engineer will present on Tri-County Parkway and Lookout Rd. December 2023
Missions, Goals and Objectives December 2023 - Holly Malish/Ashley Ritchey
Requests by Board Members to place items on a future SEDC Board Meeting agenda.
Adjournment
Board President Paul Macaluso adjourned the meeting at 7:31 p.m.
MINUTES PASSED AND APPROVED THIS ___ DAY _____________ 2023.
____________________
Board President
___________________
Board Secretary
Agenda No. 6.
SEDC MEMORANDUM
SEDC
Board Meeting:12/14/2023
Department:Economic Development Corporation
Subject:Staff briefing on SEDC monthly financial statement for the month of
October 2023. (S.Wayman)
SUBJECT:
Staff briefing on SEDC monthly financial statement for the month of October 2023. (S.Wayman)
Attachments
October Financials
620-SED CORPORATION
FINANCIAL SUMMARY OVERVIEW
Revenues
Sales Tax 588,396.77$ Payment Received in October
16.3% Annual Increase
8.3%12-Month Rolling Average
Expenses
CITY OF SCHERTZ 273,441.50$
SCHERTZ CHAMBER OF COMMERCE 7,875.00$
GREATER: SATX 5,000.00$
TML INTERGOVERNMENTAL RISK POOL 1,589.71$
Year-to-Date
Total Revenue 331,826.06$
Total Expenses 289,430.82$
Over/Under 42,395.24$
Cash & Investments
Cash 272,712.02$
Investments 32,024,121.17$
Total 32,296,833.19$
C I T Y O F S C H E R T Z
*************************************************** 2 0 2 3 - 2 0 2 4 ***************************************************
REVENUE AND EXPENSE REPORT (UNAUDITED)
AS OF: October 31st, 2023
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620-SED CORPORATION CURRENT CURRENT PRIOR YEAR CURRENT Y-T-D BUDGET % OF
FINANCIAL SUMMARY BUDGET PERIOD Y-T-D ACTUAL Y-T-D ACTUAL ENCUMBR BALANCE BUDGET
REVENUE SUMMARY
Taxes 7,092,000 538,192.89 518,457.41 2,204.17 - 7,089,795.83 0.03%
Fund Transfers - 190,392 - 190,392 - (190,392) 0.00%
Miscellaneous 1,315,000 139,230.23 62,027.13 139,230.23 - 1,175,769.77 10.59%
TOTAL REVENUES 8,407,000 867,814.78 580,484.54 331,826.06 - 8,075,173.94 3.95%
EXPENDITURE SUMMARY
NONDEPARTMENTAL
City Assistance 3,027,510 - - - - 3,027,510.00 0.00%
Fund Charges/Transfer 8,650,000 - - - - 8,650,000.00 0.00%
TOTAL NONDEPARTMENTAL 11,677,510 - - - - 11,677,510.00 0.00%
ECONOMIC DEVELOPMENT
Supplies 1,000 - 110.49 - 56.93 943.07 5.69%
City Support Services 21,200 2,206.23 1,563.32 2,206.23 122.30 18,871.47 10.98%
Utility Services 975 - - - - 975.00 0.00%
Operations Support 441,610 13,525.56 9,975.23 13,525.56 148,186.25 279,898.19 36.62%
Staff Support 24,575 257.53 200.00 257.53 1,206.53 23,110.94 5.96%
City Assistance 205,000 - 3,000.00 - - 205,000.00 0.00%
Professional Services 61,300 - - - - 61,300.00 0.00%
Fund Charges/Transfers 546,883 273,441.50 271,110.50 273,441.50 - 273,441.50 50.00%
Operating Equipment 5,000 - 26.89 - - 5,000.00 0.00%
TOTAL ECONO DEVELOPMENT 1,307,543 289,430.82 285,986.43 289,430.82 149,572.01 868,540.17 33.57%
TOTAL EXPENDITURES 12,985,053 289,430.82 285,986.43 289,430.82 149,572.01 12,546,050.17 3.38%
** REVENUE OVER(UNDER) EXPEND (4,578,053) 578,383.96 294,498 42,395 (149,572.01) (4,470,876.23)
C I T Y O F S C H E R T Z
*************************************************** 2 0 2 3 - 2 0 2 4 ***************************************************
REVENUE AND EXPENSE REPORT (UNAUDITED)
AS OF: October 31st, 2023
2 of 7
620-SED CORPORATION CURRENT CURRENT PRIOR YEAR CURRENT Y-T-D BUDGET % OF
REVENUES BUDGET PERIOD Y-T-D ACTUAL Y-T-D ACTUAL ENCUMBR BALANCE BUDGET
Taxes
000-411500 Sales Tax Revenue (4B)7,092,000 538,192.89 518,457.41 2,204.17 - 7,089,795.83 0.03%
TOTAL Taxes 7,092,000 538,192.89 518,457.41 2,204.17 - 7,089,795.83 0.03%
Fund Transfers
000-486000 Transfer In - 190,391.66 - 190,391.66 - (190,391.66) 0.00%
TOTAL Fund Transfers - 190,391.66 - 190,391.66 - (190,391.66) 0.00%
Miscellaneous
000-491000 Interest Earned 15,000 946.59 512.67 946.59 - 14,053.41 6.31%
000-491200 Investment Earnings 1,300,000 138,283.64 61,514.46 138,283.64 - 1,161,716.36 10.64%
TOTAL Miscellaneous 1,315,000 139,230.23 62,027.13 139,230.23 - 1,175,769.77 10.59%
TOTAL REVENUES 8,407,000 867,814.78 580,484.54 331,826.06 - 8,075,173.94 3.95%
C I T Y O F S C H E R T Z
REVENUE REPORT (UNAUDITED)
*************************************************** 2 0 2 3 - 2 0 2 4 ***************************************************
AS OF: October 31st, 2023
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Cash in Bank
Claim on Operating Cash Pool-Checking 272,712.02$
Cash in Investments
Texas Class Investment-Economic Development Corp 29,771,080.86
Schertz Bank & Trust-Certificate of Deposit 1,099,538.79
Schertz Bank & Trust-Certificate of Deposit 1,153,501.52
Total Cash in Bank & Investments 32,296,833.19$
CASH IN BANK AND INVESTMENTS
AS OF: October 31st, 2023
SED CORPORATION
4 of 7
16.3%
-
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
2023-24 2022-23 2021-22 2020-21
5 of 7
-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 7
FUND VENDOR NAME DESCRIPTION AMOUNT
Economic Development SED CORPORATION TML INTERGOVERNMENTAL RISK POOL Annual Insurance Payment 1,589.71
UBEO Monthly Copier 276.55
LIANE GARRETT T-Shirts-MFG Day Event 489.18
AMAZON CAPITAL SERVICES INC.Halloween Treat Boxes 14.84
HOLLY MALISH Per Diem 123.50
Mileage 77.53
Per Diem-Long Beach, CA 231.00
GREATER: SATX 2024 Annual Membership 5,000.00
TRACY MILLER Per Diem - Frisco, TX 106.50
SCHERTZ CHAMBER OF COMMERCE Membership-CEO Level FY24 7,875.00
CITIBANK Southwest Airlines 24.99
Formassembly 99.00
Dollar Tree 16.24
REFUND Tax Refund -1.24
TEDC Seminar Refund -50.00
CITY OF SCHERTZ Support Services Agreement 273,441.50
Hall Rental-Lunch & Learn 112.50
Postage 4.02
SUBTOTAL:289,430.82
TOTAL:$289,430.82
OCTOBER 2023 PAYABLES REPORT
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Agenda No. 8.
SEDC MEMORANDUM
SEDC
Board Meeting:12/14/2023
Department:Economic Development Corporation
Subject:Resolution 2023-15 - Authorizing the Executive Director of the
Schertz Economic Development Corporation to enter into an Incentive
Agreement with Merit Acquisitions, LLC. (S.Wayman)
BACKGROUND
Developer intends to develop a mixed-use development on 19.134 acres adjacent to EVO center, off IH-35
COMMUNITY BENEFIT
Development will generate real property tax and sales tax from retail components. Additionally, development will
build-out the surrounding area around the EVO site with a master-planned retail that is greatly desired in the
community. The extension of Ripps-Kruesler is on the Master Thoroughfare plan and will open up traffic mobility.
FISCAL IMPACT
Developer will receive $4 million in funding to construct Ripps-Kruesler extension along with easements, utility
extensions, sidewalks, lighting, etc. Additionally, developer will receive up to $4 million in future revenues from
the sales tax generated by the development for additional infrastructure provisions.
SUMMARY OF RECOMMENDED ACTION
EDC staff recommends approving this agreement
Attachments
Res. 2023-15
1
SEDC RESOLUTION 2023-15
A RESOLUTION BY THE CITY OF SCHERTZ ECONOMIC
DEVELOPMENT CORPORATION, TEXAS AUTHORIZING THE
EXECUTIVE DIRECTOR OF THE SCHERTZ ECONOMIC
DEVELOPMENT CORPORATION TO ENTER INTO AN
INCENTIVE AGREEMENT WITH MERIT ACQUISITIONS, 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, formerly the
Development Corporation Act of 1979) (the “Act”); and
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 requires 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, Company, through wholly owned subsidiary Merit Acquisitions LLC, Inc.
desires to expand operations within the city by creating a commercial development that is located
at 18541 Ripps-Kreusler, Schertz, Guadalupe County, Texas 78154; and
WHEREAS, Corporation will pay Company one (1) cash payments of FOUR MILLION
DOLLARS ($4,000,000) in the form of an infrastructure grant from sales taxes proceeds paid to
the Corporation, to Company for on-site infrastructure at Company’s Schertz Station operation
when improvements of Ripps-Kreusler Roadway is accepted by the City. In addition, the
Corporation will also reimburse company in quarterly payments from sales tax proceeds paid to
the Corporation, the equivalent of ONE PERCENT (1%) of sales tax proceeds from the
development for an infrastructure grant not to exceed FOUR MILLION DOLLARS ($4,000,000)
or until the completion of the seventh year of this agreement; and
WHEREAS, Sections 501, 502, and 505 of the Texas Local Government Code (“Texas
LGC”) authorizes the SEDC to fund certain projects as defined therein and enter into an Incentive
Agreements to establish and provide for the direct incentive or make an expenditure on behalf of
a business enterprise under a project; and
WHEREAS, Section 501.103 authorizes expenditures for certain infrastructure
improvement projects that are found by the Board of Directors to be required or suitable for
infrastructure necessary to promote of develop new or expanded business enterprises; and
2
WHEREAS, Section 501.073 of the Act requires the SEDC’s authorizing unit to approve
all programs and expenditures; and
WHEREAS, the expansion 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 improvements stimulus in the local and state economy.
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 Incentive Agreement attached hereto as ATTACHMENT 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 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.
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.
3
CITY OF SCHERTZ ECONOMIC
DEVELOPMENT CORPORATION
_______________________________
SEDC Board President
ATTEST:
_______________________________
SEDC Board Secretary
4
ATTACHMENT A
ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT
MERIT ACQUISTIONS