24-R-132 Amendment Economic Development Performance Agreement EDC, 3009 OAC Investments,LLC and Schertz Freckles, LLCRESOLUTION NO.24-R-132
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ, TEXAS
AUTHORIZING AN EXPENDITURE AS REFLECTED IN THE AMENDMENT OF
THE ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT BETWEEN
THE CITY OF SCHERTZ, TEXAS ECONOMIC DEVLEOPMENT
CORPORATION, 3009 OAC INVESTMENTS, LLC AND SCHERTZ FRECKLES,
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 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, the SEDC approved Resolution 2022-9 on October 27, 2022, to enter into a
performance agreement with 3009 OAC Investments, LLC; and
WHEREAS, the City of Schertz approved Resolution 22-R-110 on November 1, 2022
authorizing the SEDC to enter into an Economic Development Agreement; and
WHEREAS, 3009 OAC Investments desires to assign all remaining rights, entitlements,
duties and obligations under the original agreement and as amended herein, to Schertz Freckles,
LLC to develop the Property as commercial/retail project consisting of an approximately 10,500
square foot retail building; and
WHEREAS, the City of Schertz desires to assign all incentive obligations under the
original agreement as herein, to the SEDC for payment of the $50,000 Maximum Grant Amount
to the newly assigned Schertz Freckles, LLC upon project completion; and
WHEREAS, Schertz Freckles, LLC expects a total investment of approximately THREE
MILLION DOLLARS ($3,000,000) for the development of the Project; and
WHEREAS, upon completion of the Project, the Property may potentially have an
appraised value of over TWO MILLION DOLLARS ($2,000,000); and
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WHEREAS, the Parties agree that the provisions of this Agreement substantially advance
a legitimate interest of the City and SEDC by providing public infrastructure, expanding the tax
base of the City, increasing employment, and promoting economic development.
WHEREAS, Section 501.073 of the Act requires the SEDC's authorizing unit to approve
all programs and expenditures, City Council had previously authorized this expenditure.
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 Economic Development
Performance Agreement First Amendment 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 City Council.
Section 3. All resolutions, or parts thereof, which are in conflict or inconsistent with any
provision of this Resolution arc hereby repealed to the extent of such conflict, and the provisions
of this Resolution shall be and remain controlling as to the matters resolved herein.
Section 4. This Resolution shall be construed and enforced in accordance with the laws of
the State of Texas and the United States of America.
Section 5. If any provision of this Resolution or the application thereof to any person or
circumstance shall be held to be invalid, the remainder of this Resolution and the application of
such provision to other persons and circumstances shall nevertheless be valid, and the City Council
hereby declares that this Resolution would have been enacted without such invalid provision.
Section 6. If 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 tPk day of l� Y , 2024.
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CITY OF SCHERTZ
r I f G r
Sheila Edmonso , ity Secretary
Ral uti , Mayor
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ATTACHMENT A
(SEE ATTACHED)