PRESENTER: Presenter
Jared Werner, Assistant City Manager
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SUBJECT: Title
Approval of a resolution amending the Chapter 380 Economic Development Agreement between the City of New Braunfels, TX and HD Supply Facilities Maintenance, Ltd.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
In January 2005, The Home Depot Supply, Inc. entered into a Performance Agreement with the NBEDC (formerly the NBIDC) which promised creation of 120 jobs within the first year of operation in New Braunfels and increasing to 343 jobs after ten years. In December 2006, the Contract was amended to increase the number of jobs required after ten years to 390 and to revise the company’s name to HD Supply Facilities Maintenance, Ltd. At this same time, the City of New Braunfels entered into a Chapter 380 Agreement with HD Supply reflecting the same 390 job commitment and other similar obligations as the NBEDC Agreement.
In December 2016 the 380 Agreement was renewed for an additional ten years and the City planned to rebate to HD Supply Facilities Maintenance, Ltd. its share of sales tax until December 2026. A First Amendment, executed in 2020, allowed the NBEDC to assume a portion of the City’s sales tax rebate obligation in order for the City to launch and fund a COVID-19 Small Business Resource Grant Program to assist a multitude of community small businesses during the pandemic.
In late 2021, HD Supply Facilities Maintenance, Ltd. experienced business process changes that no longer allowed for interstate sales to be sourced to New Braunfels - a change that abated certain obligations of both parties via a Second Amendment.
At present, HD Supply Facilities Maintenance, Ltd. has implemented changes which now allow for a majority of the interstate sales to be sourced to the New Braunfels center once again and a Third Amendment is required to reactivate the agreement.
The Third Amendment includes:
- Extending the Contract to December 5, 2036
- Reduce the City’s sales tax rebate from 50% to 33.3% with the NBEDC supporting the reduced contribution by the City
The NBEDC voted to approve the Third Amendment to their contract with HD Supply Facilities Maintenance, Ltd. at its July 17, 2025 meeting.
ISSUE:
HD Supply’s recent business process changes now allow for sales to be sourced to New Braunfels and a Third Amendment is required to reactivate a prior agreement between the parties.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
Reducing the City’s contribution to the sales tax rebate from 50.0% to 33.3% results in additional sales tax proceeds for the City’s General Fund to enhance overall City services.
Recommendation
RECOMMENDATION:
Staff recommends approval of the Third Amendment to the Contract between the City of New Braunfels and HD Supply Facilities Maintenance, Ltd.