24-R-43 Economic Development Performance Agreement Between City of Schertz and Axiom GroupRESOLUTION NO.24-R-43
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ
TEXAS AUTHORIZING AN EXPENDITURE AS REFELCETED IN AN
ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT
BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT
CORPORATION AND AXIOM GROUP, 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 enter into 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 501.158 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 incentive 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 desires to locate its Texas manufacturing operations within an
existing building that is located at the 3009 Distribution Center at 7023 FM 3009, Schertz, Comal
County, Texas 78154; and
WHEREAS, over the term of the agreement, Company intends to create and maintain 200
full time employees with a minimum annual payroll of $8,500,000 at the end of Calendar Year
2033 and other terms and conditions set forth in this agreement; and
WHEREAS, Corporation intends to provide an Operational Grant of up to $500,000 at the
time Company receives it Certificate of Occupancy; and
WHEREAS, Corporation intends to provide a 100% rebate based upon the personal
property taxes paid by Company during the calendar years 2025, 2026, 2027 and a 75% rebate
based upon the personal property taxes paid by company calendar years 2028, 2029, 2030, and a
50% rebate based on the personal property taxes paid by the company during calendar years 2031,
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2032, and 2033 and a 20% rebate based upon the personal property taxes paid by company during
calendar year 2034, and other terms and conditions set forth in this Agreement; 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, Section 501.073 of the Act requires the SEDC's authorizing unit to approve
all programs and expenditures; and
WHEREAS, on the Effective Date, the commitments contained in this Agreement shall
be legally binding obligations of the Parties.
NOW, THEREFORE, BE IT RESOLVED_ BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS THAT:
Section 1. The City of Schertz City Council hereby authorizes the expenditure reflected in the
Economic Development Performance Agreement attached hereto as ATTACHMENT 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 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.
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PASSED AND ADOPTED, this day of
A ESyj
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Sheila Edmon son, City Secretary
2024.
CITY OF SCHERTZ
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Ral uti z, Mayor
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