2009T02-380 Program
ORDINANCE NO. 09-T-02
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS REPEALING ORDINANCE 06-T-44 AND THE CITY
OF SCHERTZ 380 PROGRAM ESTABLISHED THEREIN; ADOPTING A
NEW ECONOMIC DEVELOPMENT INCENTIVES POLICY; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, Chapter 380, Texas Local Government Code, as amended, allows the
governing body of a municipality to establish and provide for the administration of one or more
programs to promote state and local economic development and to stimulate business and
commercial activity in the municipality; and
WHEREAS, on September 19, 2006, the City Council of the City of Schertz, Texas (the
"City") adopted Ordinance 06-T-44, adopting the City of Schertz 380 Program (the "380
Program") for the purpose of promoting state and local economic development and stimulating
business and commercial activity in the City; and
WHEREAS, the City Council now desires to repeal the 380 Program and Ordinance
06- T -44 which adopted that Program; and
WHEREAS, the City Council desires to adopt and implement a new Economic
Development Incentives Policy for the City;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF SCHERTZ, TEXAS:
Section 1. The City Council hereby repeals Ordinance No. 06-T-44 and the 380
Program established therein
Section 2. The City Council hereby adopts the City of Schertz Economic
Development Incentives Policy attached hereto as Exhibit A.
Section 3. The recitals contained in the preamble hereof are hereby found to be true,
and such recitals are hereby made a part of this Ordinance for all purposes and are adopted as a
part ofthe judgment and findings of the City Council.
Section 4. All ordinances, resolutions, and codes, or parts thereof, which are in
conflict or inconsistent with any provision of this Ordinance or the City of Schertz Economic
Development Incentives Policy established herein are hereby repealed to the extent of such
conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters
described herein; provided, however, the repeal of the 380 Program shall not affect any contract
previously entered into, or action previously taken, in furtherance of the 380 Program.
Section 5. This Ordinance shall be construed and enforced in accordance with the
laws of the State of Texas and the United States of America.
Ordn 09-T-02.doc -1-
Section 6. If any provision of this Ordinance or the application thereof to any person
or circumstance shall be held to be invalid, the remainder of this Ordinance and the application
of such provision to other persons and circumstances shall nevertheless be valid, and the City
hereby declares that this Ordinance would have been enacted without such invalid provision.
Section 7. It is officially found, determined, and declared that the meeting at which
this Ordinance is adopted was open to the public and public notice ofthe time, place, and subject
matter of the public business to be considered at such meeting, including this Ordinance, was
given, all as required by Chapter 551, as amended, Texas Government Code.
Section 8. This Ordinance shall be in force and effect from and after its final passage
and any publication required by law, and the City of Schertz Economic Development Incentives
Policy authorized herein shall have an effective date on the date this Ordinance is adopted on
second and final reading, and it is so ordained.
PASSED ON FIRST READING, the 20th day of January, 2009.
PASSED, APPROVED, AND ADOPTED ON SECO D READING the 2ih day of
January, 2009.
ATTEST:
(Seal of City)
Ordn 09-T-02.doc -2-
EXHIBIT A
City of Schertz Economic Development Incentives Policy
Ordn 09- T-02.doc A-I
CITY OF SCHERTZ
ECONOMIC DEVELOPMENT INCENTIVES POLICY
I. Purpose of Policy
The City of Schertz (the "City") and the City of Schertz Economic Development Corporation
("SEDC"), pursuant to state law, are authorized to offer a variety of incentives to industries and
commercial enterprises for the purpose of local economic development. The City is committed
to the promotion and retention of high quality development and jobs in all areas of the City and
to an ongoing improvement in the quality of life for its citizens. Insofar as new or expanded
business enterprises fulfill these objectives, the City and the SEDC will, on a case-by-case basis,
give consideration to a company requesting incentives as stimulation for economic development.
The City will consider providing any type of economic development incentives not prohibited by
state or federal law including, but not limited to, tax phase-ins, Freeport exemptions, revenue
bonds, sales tax grants, cost participation in the construction of infrastructure and the waiver of
certain development fees. All economic development incentives will be provided by contract
with the applicant, and shall be subject to procedural and other requirements set forth in such
contract as well as applicable federal, state and local laws. The purpose of this policy is to
establish guidelines for making local incentives available for projects that promote the City's
economic development objectives. Nothing herein shall imply or suggest that the City or the
SEDC is under any obligation to provide any business incentive to any applicant.
II. Premises
I. The City should, in appropriate instances, offer incentives to stimulate certain types of new
and existing business development.
2. The City's priority is to offer incentives to projects that will create new primary jobs (i.e.
jobs that form the economic base of the community, created by enterprises that import new
wealth into the local economy). What constitutes a "primary job" is described in greater detail
below.
3. Our community believes that a new primary job created by an existing employer is as
valuable as a new primary job created by a new company. Therefore, the City will consider
appropriate incentives to qualifying existing businesses as well as those recruited from outside
the City.
4. It is the policy of the City to provide economic development incentives on a case-by-case
basis. This individualized design of a total incentive package is intended to allow maximum
flexibility in addressing the unique aspects of each applicant and its proposed project while
enabling the City to better respond to the changing demands and needs of the community.
5. If developers and/or companies seek financial assistance from the public sector in order to
start up or expand their operations, they must be prepared to:
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. Invest in the community through job creation and capital investment
. Make a long-term commitment to the community
. Treat local governments as they would any other contracting party
. Expect consequences for breaching their agreement
6. Although nearly every economic development project has unique requirements, the City
has an existing set of guidelines that can be explained to a prospect in advance. These guidelines
may be modified over time as appropriate. In addition, the City has flexibility to accommodate
different types of economic development opportunities or special situations.
7. The amount or level of local incentives offered to prospective developers and/or
companies should ultimately be based on the projected increases in the value and size of the
local workforce (both in number of jobs and the level of wages), real property, business
machinery, personal property, and other forms of revenue that inure to the local taxing entities.
8. Incentives will only be used when they will make a difference in a project's likelihood of
success and/or the City's competitive advantage in securing the project. Incentives may also be
provided to a company when the City is convinced that the incentives are needed to retain
existing primary jobs which would otherwise be lost.
III. Scope
The City is authorized to offer economic development incentives under various sections of
the Texas Local Government Code (the "Code") including Chapter 380 and the Texas
Development Corporation Act of 1979 (the "4B Act").
Chapter 380 provides that Texas municipalities may create programs to promote local
economic development. This legislation permits, on a case by case basis, the City to evaluate
and, where appropriate, to offer certain economic development incentives under the Code.
Incentives may include loans and/or grants of public money, as well as other City services, to
businesses and entities that the City determines will promote local economic development and
stimulate business and commercial activity in the City in return for specific and verifiable
commitments and results from such businesses or entities to cause specific infrastructure and
other public benefits and amenities to be made and/or invested in the City.
The 4B Act allows municipalities to create nonprofit development corporations, which are
funded by a special sales tax. The SEDC is such a corporation. These corporations promote the
creation of new and expanded industry and manufacturing activity within the municipality and
its vicinity. The sales tax proceeds are distributed to the SEDC by the City, which then uses the
money for economic development projects as outlined in Sections 2(11) and 4B(a) of the 4B Act.
Any activities of a development corporation must always be in furtherance of and attributable to
a "project." The SEDC is responsible for managing economic development projects in the City.
Except in certain specific instances, SEDC projects must result in the "creation or retention
of primary jobs." The term primary job means:
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1. A job that is available at a company for which a majority of the products or services
of that company are ultimately exported to regional, statewide, national or
international markets infusing new dollars into the local economy; and
2. Is included in one of nearly nine (9) North American Industry Classification System
(NAICS) sector code. The enumerated sector numbers are:
NAICS Sector Number Description
221 Utilities
331-339 Manufacturing
42 Wholesale Trade
48-49 Transportation and Warehousing
51 (excluding 512131 and 512132) Information( excluding movie theaters
and drive-in theaters)
523-525 Securities, Commodity Contracts, and
Other Financial Investments and Related
Activities; Insurance Carriers and
Related Activities; Funds, Trusts, and
Other Financial Vehicles
5413,5415,5416,5417,5419 Scientific Research and Development
Services
551 Management of Companies and
Enterprises
56142 Telephone Call Centers
Eligible Section 4B Projects
The SEDC will consider spending sales tax proceeds on land, buildings, equipment, facilities,
targeted infrastructure, and improvements that create or retain primary jobs and are found by the
SEDC's board of directors to be required or suitable for the development, retention, or expansion
of:
. manufacturing and industrial facilities
. research and development facilities
. transportation facilities (including but not limited to airports, ports, mass
commuting facilities and parking facilities)
. distribution centers
. sewage or solid waste disposal facilities
. recycling facilities
. air or water pollution control facilities
. small warehouse facilities
. primary job training facilities for use by institutions of higher education
. regional or national corporate headquarters facilities; and
. projects which promote or develop new or expanded business enterprises
including projects that provide public safety facilities, streets and roads, drainage
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and related improvements, demolition of existing structures, or generally
municipally owned improvements
Additionally, the SEDC may fund the acquisition ofland, buildings, equipment, facilities,
and improvements found by the board of directors to promote or develop new or expanded
business enterprises that create or retain primary jobs, including projects that provide:
. Public safety facilities
. Streets and roads
. Drainage and related improvements
. Demolition of existing substandard or inefficient structures
. General municipally-owned improvements
The SEDC will consider any improvements or facilities that are related to any of those
projects and any other projects that the board, in its discretion, determines promotes or develops
new or expanded business enterprises and creates or retains primary jobs.
Eligible Projects Which Are Not Required to Create or Retain Primary Jobs
The SEDC will consider funding projects that do not create or retain primary jobs if the
project is related to:
. Job training classes- Certain job training required or suitable for the promotion or
development and expansion of business enterprises;
. Certain targeted infrastructure improvements which promote or develop new or
expanded business enterprises;
0 Limited to streets and roads, rail spurs, water and sewer utilities and
electric utilities, gas utilities, drainage, site improvements and related
improvements, and telecommunications and internet improvements;
. Land, buildings, equipment facilities, improvements and expenditures required or
suitable for a career center, provided the area benefited is not located in the taxing
jurisdiction of a junior college district;
. Professional and amateur sports and athletic facilities; entertainment, tourist,
convention facilities; public parks and related open space improvements; and
related store, restaurant, concession, automobile parking facilities, roads, streets,
and water and sewer facilities;
. Affordable housing;
. Water supply facility or water conservation program (this use must be approved
by a majority of the City's voters in an election held for that purpose);
. Development, improvement, expansion or maintenance of facilities relating to the
operation of commuter rail, light rail or motor buses; and
. Certain airport facilities
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IV. Eligibilitv and Evaluation Criteria for Development Incentives
1. Eligibility Criteria
The following criteria must be met for an applicant to be considered eligible to contract for
an economic development incentive:
. The company must have a profitable operating history and be well-managed;
. The proposed development and/or redevelopment must create and maintain jobs
that are at or above the Alamo region average wage rate for the industry sector
according to Labor Market and Career Information from the Texas Workforce
Commission;
. The project must conform to community character and economic development
goals; and
. The project must conform to the requirements of the City's zoning ordinance,
building codes and other applicable City ordinances.
2. Evaluation Criteria
In addition to the minimum requirements stated above, the following criteria will be
considered to determine what level of incentives will be provided to the applicant. The City will
consider various factors to determine the viability, extent and size of the development incentive.
Eligibility for incentives will be considered on the basis of the initial eligibility criteria listed in
part 1 of this Section IV. After such eligibility has been determined, the SEDC will evaluate the
following factors to determine whether any public subsidy is warranted:
A. Employment Impact
. Wage levels of jobs to be created or retained, as well as benefits offered to full-
time employees; and
. Number of jobs brought to the City.
B. Investment
. Type and value of proposed private and/or public improvements;
. Amount of any local taxes or revenues (sales, ad valorem, utilities) to be
generated directly; and
. The costs, if any, to be incurred by the City to provide facilities or services
directly resulting from the improvements.
C. Other Factors Considered
. Likelihood of a development incentive being a determining factor in a business'
decision to locate or expand its operations;
. The financial capacity ofthe applicant to undertake, complete and sustain the
proposed project;
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. Other incentive programs and matching grants relating to the project for which
the applicant has applied or is qualified; and
. Other, unanticipated factors deemed relevant by the board at its discretion;
D. Community Impact
. Appropriate type of activity (e.g. office, retail, etc.);
. The positive or negative impact on the opportunities of existing businesses;
. The impact on the opportunities of attracting additional business or residents to
the community;
. The market conditions and growth potential for the business activity.
. The productive life of proposed improvements;
. Whether high quality architecture and site design including landscaping and
public amenities beyond the minimum required by the City will be provided;
and
. Whether the project is environmentally compatible with no appreciable negative
impact on quality of life perceptions.
v. Application Procedure
After review of the application for the economic development incentive, the SEDC will make
a recommendation to the City Council. The City Council will then determine whether it is in the
best interests of the City to provide the economic development incentive to the applicant. The
City Council may consider criteria other than those set forth in this policy, including but not
limited to, such matters as the relative degree to which the project/applicant furthers the goals
and objectives of the community or meets or compliments a special need identified by the City
Council. Any person or company requesting that the City and/or the SEDC provide an economic
development incentive shall comply with the following procedure:
. The applicant shall submit a completed application form for the requested
incentive on a form provided by the City and/or the SEDC.
. The applicant shall provide a plat, map or survey showing the location of the
property and the proposed project, all streets, land uses, and zoning within 500
feet ofthe project site.
. The applicant shall describe in detail the proposed project and the type of
economic development incentives requested.
. The applicant shall provide all other documentation required in the Economic
Development Incentives Application.
. The application will be reviewed initially by the SEDC, which, if favorably
approved, shall make a recommendation to the City Council, as described
above, prior to the City Council's review of the proposed incentives, the
application will be distributed to the applicable departments of the City for
review and comment. Additional information related to the application and the
project may be requested by the SEDC and/or the City. Failure to timely submit
and additionally requested information will cause the application to be rejected
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and will be deemed withdrawn by the applicant without further action by the
SEDC and/or the City.
. The City Council will consider the SEDC recommendation and the requested
incentive pursuant to this policy.
. The City Council will call and conduct public hearings when required by law.
. When appropriate under this policy, the City Council will, at a regular meeting
and when allowed by law at a special meeting, consider the approval of an
economic development incentive agreement.
. Information submitted by the applicant regarding the requested incentive is
confidential to the extent allowed by law.
VI. Expiration and Modification
This Economic Development Incentive Policy is effective upon the date of its adoption and
will remain in force for two years, at which time, all project incentives provided pursuant to its
provision will be reviewed by the SEDC board and City Council to determine whether the goals
of the program have been achieved. Based upon that review, the Economic Development
Incentive Policy may be modified, renewed or eliminated. Prior to the date for review, as
defined above, the Economic Development Incentive Policy may be modified by a super-
majority 4/5th vote ofthe City Council.
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Index of Available Economic Development Incentives
Abatement of municipal ad valorem property taxes
Sec. 312.204 of the Texas Tax Code
The City and Comal, Guadalupe, and Bexar Counties may grant up to 100%
abatement of property taxes on buildings, fixed machinery and other business
property for up to ten years. Tax abatements do not apply to the value of land but
to the value of improvements constructed as a result of a particular economic
development project. Minimum qualifications for tax abatements are the creation
of new primary jobs. Tax abatements are sometimes structured as tax phase-ins.
Freeport property tax exemption
Texas Constitution Art. VIII, S 1-j
The freeport exemption exempts personal property consisting of inventory, goods
or ores, other than oil, natural gas and petroleum. Eligible property must be
transported out of the State of Texas within 175 days of acquisition but may first
be assembled, stored, manufactured, processed or fabricated locally. The goods
must be in Texas only for a limited purpose. Freeport property, by definition,
includes goods, wares, merchandise, ores, and certain aircraft and aircraft parts as
defined under Article VIII, Section l-j of the Texas Constitution. The City,
Comal, Guadalupe, and Bexar Counties, as well as four local independent school
districts in the city (Schertz/Cibolo/Universal City lSD, East Central lSD, Judson
lSD, and Comal ISD) allow personal property tax exemptions for companies that
deal with goods-in-transit or inventories used in the manufacturing process. The
tax exemption applies to items classified as "freeport property."
Municipal grants
Chapter 380 ofthe Texas Local Government Code
The City may provide loans and grants of City funds as well as City employees
and equipment to promote economic development projects within the city.
Owners of eligible projects involving significant investment may contract with the
City to receive sales tax grants, franchise fee grants, water or sewer line
extensions, building permit fee waivers and grants for capital recovery fees.
Foreign Trade Zone
The Tri-County Industrial Park in the City is one of ten General Purpose sites
eligible for incentives arising from operating in a Foreign Trade Zone (FTZs).
Businesses locating in FTZs can take advantage of the incentives offered
including 1) relief from inverted tariffs; 2) duty exemption on re-exports; 3) duty
elimination on waste, scrap, and yield loss; and 4) duty deferral until merchandise
is imported from the FTZ into the FTZ. The purpose of an FTZ is the creation of
jobs realized from the cost savings from delayed or forgiven tariffs. The City
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currently has an FTZ located at the Tri-County Industrial Park and will have
potential for an FTZ in the new Enterprise Industrial Park. More information can
be found at http://www.saftz.coml.
Tax Increment Financing
Chapter 311 of the Texas Tax Code
The City may create a Tax Increment Reinvestment Zone where construction of
public improvements using tax increment funds is likely to result in significant
commercial investment. The cost of improvements within the Zone is repaid by
the contribution of future tax revenues by each taxing unit that agrees to
participate, but in all events excluding school districts that levy taxes on the
affected properties. Once the City initiates tax increment financing, counties and
school districts may also participate in the tax increment financing program. The
costs of selected public improvements are paid by additional tax dollars generated
by the growth of real property value in the designated area.
Creation of Industrial District in ETJ and Agreement to not Annex
Section 42.044 of the Texas Local Government Code
To attract a business into an area, the City may choose to encourage the business
to locate in the City's extraterritorial jurisdiction ("ETJ"). If the business locates
in the City's ETJ, the City may enter into an agreement not to annex the business
property for a set period of time (maximum of 15 years). The agreement may call
for the business to pay the City an annual fee in lieu of taxes for the use of City
facilities. The City may also provide certain contractual services (i.e. firefighting
services) to the business during the non-annexation period.
Community Infrastructure and Economic Development (CIED) Fund
The City, in partnership with CPS Energy, offers a unique incentive to qualifying
companies to help fund electric and other site-specific capital improvements from
CPS' CIED Fund. Potential funding from the CIED Fund will vary based upon
the level of positive impact the project has on the CPS energy system. Qualifying
companies may be eligible for CIED fund grants to offset the cost of public
improvements
Municipal programs used to help finance business development projects.
Industrial Development Bonds (Issued by the City for construction of leased facilities)
Chapter 1509 of the Texas Government Code
The City may issue industrial development bonds to finance the construction or
purchase of a manufacturing facility for lease to a private entity. Bonds are
payable from the project revenues unless approved by the voters to be payable
from property taxes.
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Industrial Development Revenue Bonds (Issued by SEDC)
Article 5190.6, Sec. 21 of the Texas Revised Civil Statutes
The SEDC may issue bonds for economic development projects. Generally all
debt services on the bonds is paid by the business under the terms of a lease, sale
or loan agreement. This does not constitute a debt of obligation by the City or the
SEDC.
Public Improvement Districts
Chapter 372 of the Texas Local Government Code
A Public Improvement District ("PID") enables a commercial area to make
improvements benefiting the area and spread the cost equally among all properties
in the designated area. Property owners are assessed based on uniform benefit
criteria. These assessments may be used to pay the debt service on bonds or they
may be used to pay for services directly if no bonds are issued. PID funds may be
used to purchase real property in connection with improvements. Improvements
include a wide variety of enhancements such as water and wastewater, streets,
drainage, parking, landscaping, etc.
Municipal Management Districts
Chapter 375 of the Texas Local Government Code
Municipal Management Districts allow commercial property owners to enhance a
defined business area by financing facilities, infrastructure and services beyond
those already provided by the City. The improvements may be paid for by a
combination of self imposed property taxes, special assessments and impact fees.
A District is created to supplement not supplant the City services available to the
area.
Empowerment Zone
The City has the ability to create Empowerment Zones within the City limits. The
purpose of creating the Zone is to encourage investment in certain areas lacking
adequate water and sewer lines and paved streets.
Small Business Administration Loan Guaranty Program
The City's Economic Development Department can direct businesses to lenders
and special funds designed for small businesses. The SBA provides a guaranty on
loans made by private lenders and Community Development Corporations
(CDCs).
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City of Schertz
Application for Development Incentives
I. Statement
The City of Schertz will consider providing economic development incentives in accordance with the
procedures and criteria outlined in this Application and the City of Schertz Economic Development Incentives
Policy (the "Policy"). Incentive agreements will be considered for both new facilities and expansions of existing
facilities and for the expansion or modernization of existing facilities and structures. Nothing in this Application
or the Policy shall imply or suggest that the City of Schertz is under any obligation to provide any business
incentive to any applicant. Applications shall be filed with the City's Economic Development Department,
which will provide copies to the City Manager, appropriate City Departments, and the City of Schertz Economic
Development Corporation (the "SEDC") Board of Directors within ten working days. All applicants shall be
considered on a case-by-case basis.
II. Applicability
The Policy establishes that all business incentive options, programs, and agreements shall be governed by
applicable State statutes and adopted City policies relating to economic development.
III. Elh?:ibility Criteria
Any request for a business incentive shall first be reviewed by the SEDC Board. If the request is accepted
by the Board, the Board will recommend approval to the City Council. Acceptance and approval by the SEDC
Board shall be based upon an evaluation ofthe narrative responses provided in the Application for Business
Development Incentives (attached herein) and all accompanying support documents.
IV. Evaluation Criteria
The following criteria will be considered in determining what level of incentives may be provided to the
applicant:
1. Creation of permanent full time employment opportunities. The number and types of jobs to be created
or retained (full time vs. part time) and to what extent benefits (health or otherwise) for all full time
employees will be provided.
2. Total capital investment in the project including site improvement, building cost, business personal
property and other equipment.
3. Expansion of the local tax base.
4. Location of the proposed facility or operation.
5. Whether an incentive is likely to influence the decision to locate the project in the City.
6. Whether type of activity is appropriate to the proposed area (e.g. office, retail, etc.)
7. The types and value of public improvements which will be made by the applicant.
8. Whether high quality architecture and site design including landscaping and public amenities beyond
the minimum required by the City will be provided.
9. Whether the proposed structures will pursue Leadership in Energy and Environmental Design (LEED)
certification.
10. To what extent City utilities will be used.
11. The types and cost of public improvements (e.g. streets, water, wastewater, drainage) and services (e.g.
fire, police) which will be required ofthe City.
12. The market conditions and growth potential for the business activity.
13. The amount of time necessary to complete the project and create the jobs which are to be provided by
the applicant.
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14. The extent to which the proposed project carries out the goals and objectiveS of the City's Economic
Development Strategic Plan.
15. An analysis ofthe costs ofthe incentives requested versus the benefits by the applicant's expansion or
relocation.
16. Other incentive programs and matching grants relating to the project for which the applicant has applied
or is qualified.
17. Other factors set forth in the Policy.
18. Any other factors the SEDC Board or the City Council finds helpful and relevant to accomplishing the
city's economic development objectives.
19. Other, unanticipated factors deemed relevant by the Board in its discretion.
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City of Schertz
Application for Economic Development Incentives
Please submit the original and three (3) copies of this application and all supporting documentation to the City of
Schertz, Attention: Economic Development, 1400 Schertz Parkway, Schertz, TX. 78154, Phone: 210-619-1073,
or fax: 210-619-1079
1. APPLICANT INFORMATION (Responsible Person): Application Date: / /
Applicant Name: Title:
Applicant Address: Physical Box
Applicant City, State Zip Code:
Applicant Area Code/Phone: Fax:
Applicant Area Code/Cell: Email:
Company Name (if different from Applicant):
Company Address: Physical Box
Company City, State, Zip Code:
Company Area Code/Phone: Area Code/Fax:
Company Web Page: Company NAICS Code:
Email:
Previous Co. Mailing Address: Physical P.O.B.
Previous Co. City, State Zip Code:
Business is a (please check one):
(a.) 0 Corporation - 0 Texas or 0 Foreign; (b.) 0 Partnership;
(c.) 0 Sole Proprietorship; (d.) 0 Other (Please Explain) .
Date Company Established: Federal Taxpayer ID Number:
Please List Business References:
1. Bank Name Address:
Contact Name: Phone #: Email:
2. Accounting Firm Address:
Contact Name: Phone #: Email:
3. Law Firm Address:
Attorney Name: Phone #: Email:
4. Other Address:
Contact Name: Phone #: Email:
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2. PROPERTY OWNER INFORMATION:
Current Property Owner's Name:
Mailing Address: Physical Box
Area CodelPhone: Area/Code Fax:
Area Code/Cell: Email: Web Page:
3. CURRENT PROPERTY OWNER'S REPRESENTATIVE:
Current Property Owner's Representative's Name:
Mailing Address: Physical Box
Area Code/Phone: Area/Code Fax:
Area Code/Cell: Email: Web Page:
4. PROPERTY INFORMATION: DOwn D Leasing D Have a Contract to Purchase
$
Property Location (including school district jurisdiction):
Property Address:
Property Legal Description / Total Acreage (Provide survey ifby metes and bounds):
Most Current County Tax Appraisal District Assessed Valuation (Please attach copy of Statement) on real
property and improvements:
Real Property: Improvements
5. PROPOSED PROJECT DESCRIPTION: Please describe the following aspects of the project.
Intended Use: (e.g. hotel, retail, industrial, manufacturing, medical, wholesale, call center, corporate office,
. professional office, research/development, etc.)
This project is: D Existing D Expanding D New D Relocating (from another state - )
D Relocating (from another Texas City/County )? Give location of current facilities:
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PROJECT DESCRIPTION
Will the occupancy be D Owner/Occupied or D Landlord/Tenant? Ifleasing, what is the length of the lease
Is the project compatible with the City's Comprehensive Plan? Yes DNoD
Will a zoning change be necessary to accommodate the project? Yes D NoD
Is there adequate infrastructure available to the site? If not, please detail required improvements.
6. DEVELOPMENT CONCEPT: Please describe the development concept for the project.
Building Type: (# of stories, architectural style, materials, etc.)
Development Concept: (single building or campus setting, open space, surface or structured parking, acreage,
vehicular access, etc.)
General Description of business activities at the project site:
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7. TIMING QUESTIONS: Please provide an estimation ofthe following timing questions.
MonthlY ear
8. PROJECT DETAILS:
Approximate Dates by Phase
Phase I Phase II Phase III
Ref. # ~. Date: Date: Date:
.J
, "".)I;....,l;i) 1<' .. TI;;;..'.,....... "".,'. ,;i<',..:<':"'. ......
><
a. Building in square feet s.f. s.f.
b. Construction value $ $ $
c. Personal property value $ $ $
d. Total Improvement Value $ $ $
..i}.....;.....' ....... ,. > . i... .<iV': "".'.;;'1;.:::,::/".""'"
Direct Sales Tax Paid due
e. to Company Purchases $ $ $
Annual product sales in
f. Schertz subiect to sales tax $ $ $
.' ,."."fiDT '.. p"ill F~T 'i... r~'l ....''h+H? "'p-T
g. Current # Employees
Current # Employees
h. RELOCATING
Type Jobs of Current
1. Emolovees
J. Payroll for Current Emps $ $ $ $ $ $
# of Emp w/annual salary
k. of $34,609 or greater
% of Employees residing
in Guadalupe, Comal or
1. Bexar Counties % % % % % %
Median Annual Salary
m. Per Employee $ $ $ $ $ $
NEW EMPL()Y/EES .fi"TTi......../; F~T ........" F-T pDT F-T }T,:P~'T
n. # of New Jobs to be Created
Type New Jobs to be
o. Created
Payroll for New
p. J obs/Emolovees $ $ $ $ $ $
# of New Emps w/annual
q. salary of$34,609 or greater
% of New Emps residing
r. in City of Schertz % % % % % %
Average Annual Salary
s. Per New Employee $ $ $ $ $ $
TotalCurrent& New cc;:
t. Annual J>aVfQIl $ $ $ $ $ $
50152167.2
Economic Development Incentives Policy & Application for Economic Development Incentives
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Reference: Provide any additional notes here regarding any of the items above
9. COMMUNITY IMPACTS
Describe the pros & cons of how this project will affect existing businesses in the development area?
What effect will the project have on the local housing market?
What effect will the project have on the local school districts?
Will the project create any environmental quality impacts on 0 Air 0 Water 0 Visual DOther?
Will the project have a high demand for 0 Water, 0 Wastewater, 0 Electricity, or 0 Gas?
Is the property currently properly zoned for your project? 0 Yes 0 No
Will there be any 0 Rezoning and/or 0 Platting and/or 0 Re-platting?
50152167.2
Economic Development Incentives Policy & Application for Economic Development Incentives
Page 7 of 12
10. INCENTIVE REQUEST: Please outline the incentive(s) you are requesting and the necessity of such
incentive(s) for this project.
Please summarize the overall economic impact this project will have on the City of Schertz.
11. PROJECT PARTNERS: Please list any other [mancial partners or investors involved in this project.
Name: Title: Project Relationship
Address: Physical Box
City, State Zip Code:
Area CodelPhone: Fax:
Area Code/Cell: Email:
Name: Title: Project Relationship
Address: Physical Box
City, State Zip Code:
Area CodelPhone: Fax:
Area Code/Cell: Email:
12. OTHER INFORMATION:
Have you or any of your principals had any legal judgments against a current or prior business?
D No D Yes (Explain)
50152167.2
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Page 8 of 12
Have you or any of your principals declared bankruptcy in the last 5 years?
o No 0 Yes (Explain)
13. SUPPORTING INFORMATION: In addition to the information provided in this Application, please
enclose the following documents as indicated below with your application.
ReQuested Attached Item
EXISTING BUSINESSES
0 0 Audited financial statements for the past 3 full fiscal years preceding this Application
0 0 Profit/Loss Statement
0 0 Cash Flow Statement
0 0 Annual Reports for the past 3 full fiscal years preceding this application
0 0 Business Plan
0 0 Market Analysis
0 0 Title Report
0 0 Most recent County Tax Appraisal District Assessed Valuation Statement (if purchasing the
project property or already own the project property)
0 0 Tax Returns for the past 3 years
0 0 Drawings/specifications
0 0 Survey of property in metes and bounds
0 0 Other:
0 0 Other:
PROPOSED NEW BUSINESS START -UP OR IMPROVEMENTS
0 0 Proposal Cover Letter
0 0 Business Plan
0 0 Market Analysis
0 0 Credit Report
0 0 Title Report
0 0 Pro Forma Income Statements
0 0 Most recent County Tax Appraisal District Assessed Valuation Statement
0 0 Personal income tax returns for the past 3 years (If this is a new business start-up, provide
personal income tax returns)
0 0 Drawings/specifications and/or conceptual development layout
0 0 Survey of Property in metes and bounds
0 0 Other:
0 0 Other:
14. UNDOCUMENTED WORKER CERTIFICATION- Chapter 2264, Subchapter A, Texas Government
Code requires that any public agency or economic development corporation shall require a business that submits
an application to receive a public subsidy to include a statement certifying that the business does not and will not
knowingly employ an undocumented worker.
The Applicant/Company certifies that its operation within the City of Schertz does not and will not knowingly
employ an undocumented worker, as defined in Chapter 2264, Subchapter A, Texas Government Code, as
amended (the "Act");
50152167.2
Economic Development Incentives Policy & Application for Economic Development Incentives
Page 9 of 12
Pursuant to the Act, if the Applicant/Company is convicted of a violation under 8 U.S.C. Section 1324a(f), after
receiving any public subsidy, the Applicant/Company shall promptly give the SEDC written notice of such
violation and the Applicant/Company shall repay the amount of the payment with interest, at a rate of 6.75 % per
annum not later than the 120lh day after the date the Applicant/Company notifies the SEDC of the violation.
In reference to the SEDC Economic Development Incentives application for the Applicant/Company, my relationship
to the Applicant in the foregoing application is . I am authorized to make this
application on behalf of the Applicant. I hereby certifY that the information set forth in and enclosed with this
application is true and correct.
Company Name
Signature
Type or Print Name
Title
Date
Before me on this day personally appeared known to me (or
proved to me on the oath of or through (description of
identity card or other document) to be the person whose name is subscribed to the foregoing instrument and
acknowledged to me that he executed the same for the purposes and consideration therein expressed.
Given under my hand and seal of office this _ day of ,20_
(SEAL)
Notary Public in and for the State of Texas
My Commission Expires:
Type or Print Notary's Name:
50152167.2
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Page 10 of 12
CONFIDENTIALITY AGREEMENT
THIS CONFIDENTIALITY AGREEMENT (this "Agreement") dated is between the
City of Schertz, Texas (the "City") and (the "Company").
WHEREAS, the City and the Company have discussed certain economic development matters relating to
proposed operations of the Company in the City (the "Project"); and
WHEREAS, the City and the Company have agreed that maintaining the confidentiality of certain matters
relating to the Project would be advantageous.
1. Confidentialitv.
(a) Subject to sub-paragraphs (c) and (d) below, each party and its employees, representatives, attorneys,
and other consultants (collectively, the "representatives") shall keep strictly confidential all information which the
other party, its affiliates, or its representatives furnish to it in connection with the evaluation of the Project,
whether furnished before or after the date of this Agreement, whether furnished orally or in writing or gathered by
inspection, and regardless of whether specifically identified as "confidential", and all notes, analyses,
compilations, studies, or other documents which contain or otherwise reflect such information (collectively, the
"Confidential Information"); however, each party may disclose the Confidential Information to its representatives
who (i) need to know such information for the purpose of evaluating the Project, (ii) have been informed of the
confidential nature of the Confidential Information, and (iii) have agreed in writing to treat the Confidential
Information confidentially, to use it only for the purpose described in sub-paragraph (b) below. The term
"Confidential Information" shall not include information about a party which (i) becomes generally available to
the public other than as a result of an improper disclosure by the other party, its affiliates, or its representatives,
(ii) was available to the other party on a non-confidential basis prior to its disclosure hereunder, or (iii) was or
becomes available to the other party on a non-confidential basis from a source other than a party to which it
relates, provided that such source is not bound by a confidentiality agreement in which such party or its
representatives and is otherwise not prohibited from transmitting the information to the recipient.
(b) Each party and its representatives shall use the Confidential Information solely for the purpose of
evaluating the Project and for no other purpose and shall not use the Confidential Information in any manner that
is to the competitive disadvantage of or otherwise adverse or detrimental to the party furnishing such Confidential
Information.
(c) Except as more specifically set forth in sub-paragraph (d) below, if either party or its representatives
are requested or required (by oral questions, written interrogatories, requests for information, or documents,
subpoena, civil investigatory demand, or similar process) to disclose any of the Confidential Information, it shall
provide the other party with immediate notice of such request or requirement so that the other party may seek an
appropriate protective order or selectively waive compliance with the provisions of this Agreement. Further, if, in
the absence of a protective order or the receipt of a waiver hereunder, either party or any of its representatives is
nonetheless, in the opinion of its legal counsel, compelled to disclose any of the Confidential Information to any
tribunal or agency, or else stand liable in contempt or suffer other censure or penalty, that party or representative
may disclose such information to such tribunal or agency without liability hereunder unless such disclosure to
such tribunal or agency was caused by or resulted from a previous disclosure by it or any of its representatives in
breach of this Agreement.
(d) Upon the receipt of a written request for any information or materials related to the Company or the
Project, the City will notify the Company within 72 hours and provide the Company with a copy of the request.
As a matter of policy, the City does not provide public records to any person except in response to written request.
If the City is not otherwise seeking an Open Records Opinion by the Texas Attorney General in response to the
request but reasonably believes that seeking such an Opinion is permissible under the Texas Public Information
50152167.2
Economic Development Incentives Policy & Application for Economic Development Incentives
Page 11 of 12
Act, the City will also provide the Company with an estimate of the anticipated costs associated with making a
request for an Open Records Opinion by the Texas Attorney General. If the Company pays the City the quoted
sum within 48 hours of receiving the estimate, the City will seek a Texas Attorney General Opinion protecting the
materials from disclosure on the basis that the information requested is excepted from disclosure pursuant to
applicable Texas statute, rule, and or common law. During the pendency of such Opinion request, the City will
not disclose the information as to which the Opinion is sought except pursuant to subparagraph (c). If the City
Attorney concludes that there is no legal basis to pursue such an Open Records Opinion as of the date of the
request and that the City must disclose the requested information, the City shall notify the Company ofthe request
and will include a statement that the City Attorney has concluded that there is no legal basis to pursue a request
for an Open Records Opinion and that the City must disclose the requested information and the grounds
supporting such conclusion.
2. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of Texas. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, and, if any provision hereof is found to be invalid or ineffective, such
provision shall be invalid or ineffective only to the extent necessary, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.
3. Term. This Agreement shall continue in force and effect until terminated by either party upon thirty (30) days
prior written notice to the other party to such effect.
4. Counterparts. This Agreement may be executed in counterparts, and both counterparts, together, shall be
considered to be one document.
CITY OF SCHERTZ, TEXAS
By By:
City Manager
Title:
50152167.2
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Page 12 of 12
NEW BUSINESS APPLICATION SCORING
Category Maximum Maximum Points Criteria to achieve
Points in Category maximum points
JOBS (40%) 400
100 One half (50%) ofFTEs
with compensation 5-10%
above regional average
Average Salary 200 ISO 75% ofFTEs 11-20%
above regional average
200 75% ofFTEs 21 +% above
regional average
Create jobs (within 24
months of start)
25 2-20
Number of jobs 100 50 21-40
75 41-70
100 71+
Provide FTEs medical,
life & retirement
25 Employer pays 50%
Benefits 100 75 Emplover pays 75%
100 Full Coverage; no cost to
emplovee
Total Points out of 400
INVESTMENT
(30%) 300
Invest Dollars per FTE
created/retained
Bldg/Equip/Inv 125 Points awarded based on
OOOs of dollars invested per
FTE, up to 125
0 $0-$999
10 $1,000 - $4,000 generated
Sales Tax 150 annually
25 $4,001-$9,999
50 $10,000-$24,999
75 $25,000-$49,999
100 $50,000-$74,999
125 $75,000-$99,999
150 $100,000+
Be located in one of the
following areas of the
Location 25 25 City:
Downtown/FM 78
Town Center
Total Points out of 300
NEW BUSINESS APPLICATION SCORING
Category Maximum Maximum in Points Criteria to achieve
Points Cate20rv maximum points
SECTOR (20%) 200
. 62 (healthcare)
. 71 (arts, entertainment &
recreation)
. 7221 (full-service
restaurants)
Citizen-oriented 100 . 485 (Transit & ground
passenger transportation)
Majority of company's
products or services is
classified under the
following NAICS codes:
Target Industry . 331-339
. 42
200 . 51
. 523-525
. 5413,5415,5416,5417,
5419
. 551
Total Points out of 200
If a project requires significant improvements to the
public infrastructure, and it is determined the
improvements will benefit the public beyond the
INFRASTRUCTURE boundaries of the development, consideration will be
(10%) 100 given to these types of infrastructure improvements:
. Drainage
. Water
. Sewer
. Roads (public)
. Electrical
50 $100,000-$299,999
75 $300,000-$499,999
100 $500,000 +
Total Points out of 100
LEED CERTIFICATION 50 additional points
Total Points out of 1000
EXISTING BUSINESS APPLICATION SCORING
Category Maximum Maximum Points Criteria to achieve
Points in Category maximum points
JOBS (40%) 400
100 All PTEs with
compensation 90% of, or
equal to, regional average
Average Salary 200 150 50% ofPTEs paid 1-15%
above regional average
200 75%+ ofPTEs paid 16%
above regional average
Create new jobs (within
24 months of project
completion)
Number of jobs 100 25 1-5
50 6-15
75 16-25
100 25+
Provide FTEs medical,
life & retirement
25 Employer pays 50%
Benefits 100 75 Employer pays 75%
100 Pull Coverage; no cost to
employee
Total Points out of 400
INVESTMENT
(30%) 300
Invest Dollars per FTE
Building & created/retained
Business Personal
Property Values 125 Points awarded based on
(inventory, fixtures, OOOs of dollars invested per
M&E) PTE, up to 125 points
10 $0-$500 generated annually
25 $501-$1,000
50 $1,001-$5,000
Sales Tax 150 75 $5,001-$10,000
100 $l 0,00 1-$25 ,000
125 $25,001-$50,000
150 $50,001+
Be located in one of the
following areas of the
25 City:
Downtown/FM 78
Location 25
Town Center
EXISTING BUSINESS APPLICATION SCORING
Category Maximum Maximum in Points Criteria to achieve
Points Category maximum points
SECTOR (20%) 200
. 62 (healthcare)
. 71 (arts, entertainment &
recreation) CERTAIN
CATEGORIES
ELIGIBLE FOR 4B
Citizen-oriented 100 . 7221 (full-service
restaurants)
. 485 (Transit & ground
passenger transportation)
Majority of company's
products or services is
classified under the
following NAICS codes:
Target Industry . 331-339
. 51
200 . 523-525
. 5413,5415,5416,5417,5
419
. 551
Total Points out of 200
If a project requires significant improvements to the
public infrastructure, and it is determined the
improvements will benefit the public beyond the
INFRASTRUCTURE boundaries of the development, consideration will be
(10%) 100 given to these types of infrastructure improvements:
. Drainage
. Water
. Sewer
. Roads (public)
. Electrical
50 Value of improvements
$10,000-$29,999
75 $30,000-$49,999
100 $50,000 +
Total Points out of 100
LEED CERTIFICATION 50 additional points
Total Points for Application out of 1000