PRESENTER: Presenter
Jordan Matney, Deputy City Manager
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SUBJECT: Title
Discuss and consider the approval of a Chapter 380 Economic Development Agreement between the City of New Braunfels, Texas and Costco Wholesale Corporation in an amount equal to up to $6.3 million of the Comal County Water Improvement District No. 3’s share of the sales tax generated from the Costco property over a term not to exceed 20 years.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: N/A
BACKGROUND INFORMATION:
This agreement provides a rebate of sales taxes from Comal County Water Improvement District No. 3 (“Mayfair”) to Costco in an amount up to $6.3 million or 20 years, whichever is later.
Mayfair is choosing to rebate back to Costco 75% of its retained portion of sales taxes as an economic development incentive up to the limits described. The sales tax portion collected for eligible Type B projects are not rebated and are escrowed for future eligible projects within Mayfair boundaries.
ISSUE:
Approval of an agreement that would rebate a portion of the sales tax proceeds generated at the Costco project
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
No fiscal impact to the City since the sales taxes rebated are due to the Comal County Water Improvement District No. 3.
Recommendation
RECOMMENDATION:
Staff recommends approval of the agreement.