26-R-123 Agreement with York International CorporationRESOLUTION 26-R-123
A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF SCHERTZ
TEXAS AUTHORIZING AN EXPENDITURE AS REFLECTED IN AN
ECONOMIC DEVELOPMENT PERFORMANCE AGREEMENT
BETWEEN THE CITY OF SCHERTZ ECONOMIC DEVELOPMENT
CORPORATION AND YORK INTERNATIONAL CORPORATION; AND
OTHER MATTERS IN CONNECTION THEREWITH
WHEREAS, the City of Schertz Economic Development Corporation ("SEDC") is a
nonprofit economic 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 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, Section 501.073 of the Texas Local Government Code requires the City
Council (authorizing unit) to approve all programs and expenditures of the SEDC, and;
WHEREAS, SEDC desires to enter into a performance agreement with York International
Corporation. (the "Company") to expand its international operations and to locate within the City
of Schertz city limits, including the occupancy of an existing facility at 10260 Scenic Lake Drive,
Converse, Texas in Bexar County; and
WHEREAS, Company intends to invest a minimum of one hundred seventy-nine million
three hundred thousand dollars ($179,300,000) in a ten-year lease, tenant improvements, real and
personal property; and
WHEREAS, the tenant improvements and business planned in conjunction with the
Project, as proposed, will contribute to the economic development of the City of Schertz ("City")
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, and
will have both a direct and indirect positive overall improvement/stimulus in the local and state
economy; and
WHEREAS, the Corporation desires to offer a three million seven hundred fifty thousand
dollars ($3,750,000) maximum grant over a period of six years to enable Company to develop the
Project pursuant to this Agreement in substantial -conformity with the City Economic Development
Incentive Policy and the Act; and
WHEREAS, Corporation intends to provide property tax rebates of 100% based upon the
real and personal property taxes paid by Company in calendar year 2027, calendar year 2028, and
calendar year 2029; and provide property tax rebates of 75% based upon the real and personal
property tax paid by Company in calendar year 2030, calendar year 2031, and calendar year 2032;
and
WHEREAS, over the term of the Agreement, Company intends to create 351 fulltime jobs
with a minimum annual payroll of twenty-one million seven hundred sixty-two thousand dollars
($21,762,000) in Calendar Year 2027 and add an additional 201 fulltime jobs over the next two
years for a total of 552 fulltime jobs with a total annual payroll of thirty-four million two hundred
twenty-four thousand dollars ($34,224,000) by the end of Calendar Year 2029 and retain the jobs
throughout the life of the 10-year agreement; 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
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 City Council.
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 City Council
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 ae--6—ay of October, 2026.
A
Y/I
Sh a = niondson, C' y Secretary
CITY OF SCHERTZ
W-WAN",
IR-1101 1 � �/