PRESENTER: Presenter
Jordan Matney, Deputy City Manager
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SUBJECT: Title
Discuss and consider the approval of an Interlocal Agreement between the City of New Braunfels and Comal County Water Improvement District No. 3 relating to the District’s Waiver of an amount equal to a portion of its sales tax receipts.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
In August 2023, the City of New Braunfels (“City”) and Emergency Services District Number 7 (“ESD 7”) entered an Allocation Agreement that allocates sales taxes collected within the coincident boundaries of ESD 7 and Comal County Water Improvement District No. 3 (“Mayfair”) to capital improvements for fire and emergency services. In June 2024, the City and Mayfair entered an Interlocal Cooperation Agreement concerning the allocation of sales and use tax collection revenue for capital improvements for fire and emergency services. The agreement specifies that upon receipt of sales taxes collected within the coincident boundaries of Mayfair and ESD 7, the City remits payment of those sales taxes to the ESD 7 for fire and emergency services.
The proposed Agreement would exclude a portion of sales tax collections generated from specific tracts of property within Mayfair from being returned to the ESD or Mayfair. The agreement grants permission for the City to instead remit these sales tax collections generated from the Costco property directly back to Costco as part of an economic development incentive.
Mayfair agrees not to waive or assign any portion of the sales taxes generated from the Costco project to another party until the stated expiration agreement of the Waiver Agreement, whichever is the later of twenty (20) years from the date Costco receives its Certificate of Occupancy or it receives $6.3 million from Mayfair’s sales tax allocation.
ISSUE:
Approval of a Master Interlocal Agreement waiving the collection and remittance of certain sales tax collections from Mayfair and to instead direct those collections to Costco Wholesale Corporation.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
The City’s role in this agreement is administrative in nature, the sales tax being waived by Mayfair was due to the District under the original agreements. The City was not entitled to this portion of the sales taxes generated by the Costco project.
Recommendation
RECOMMENDATION:
Staff recommends approval of the Master Interlocal Agreement Cooperation Agreement