Schertz, Texas, October 21, 2010 – The City of Schertz and Comal County finalized negotiations today to provide economic development incentives to Caterpillar for the construction of a 260,000-square-foot manufacturing facility in the city.  The location will be a completely new operation and will house the company’s engine head machining operations and will supply Caterpillar’s assembly plant in nearby Seguin.  The move is part of Caterpillar’s major restructuring and reinvestment strategy in its U.S. operations designed to enable the company to remain globally competitive for the long term.

“Caterpillar is committed to maintaining its leadership position throughout the world, and the Schertz facility in Comal County plays an important role in our plans to provide customers with the products and solutions they need to help them with their businesses,” said Kate Kenny, Caterpillar spokesperson.  “The new facility allows the company to optimize efficiency by improving process capability, flexibility and flow of its overall operations.   The Schertz location will additionally help reduce freight, logistics and inventory costs, as Caterpillar will be located closer to its supply and customer bases.”

Caterpillar announced in 2008 it was exploring various locations to accommodate its engine business and the various components involved in the complete engine assembly process.  Royal Oak Industries (ROI) will manage the day-to-day functions of the facility.  ROI has been successful with similarly operated Caterpillar engine related facilities in San Antonio and Seguin.

The Schertz facility will employ approximately 60 workers and construction begins before the end of the year, with production expected to start in late 2011.  As part of the agreement, Schertz City Council approved incentives for additional phases if Caterpillar chooses to expand the facility beyond its initial footprint with new buildings and machinery.

Schertz’s Mayor Hal Baldwin said: “The company’s decision to locate in Schertz is a testament to the City’s pro-business attitude and the region’s overall strength as a location for manufacturing companies.  We are excited about Caterpillar’s selection of Schertz for its newest manufacturing facility and are pleased that the City can be a part of its U.S. reinvestment strategy.”

Michael Meek, President of the New Braunfels Chamber of Commerce, was responsible for working with Comal County Commissioners to secure economic development incentives.  The incentives proved to be the final piece Caterpillar needed before announcing the expansion facility.

“Comal County Commissioners have helped improve the local tax base again with this agreement. Land returning $17 annually will soon be transformed to a job-creating facility run by a well known and respected corporate citizen worldwide,” Meek said.

The project had been in the works for some time and city officials and county representatives had met with Caterpillar and ROI officials for a year prior to the announcement.  “ROI’s existing facility in San Antonio is top-notch in terms of its efficiency, safety and sophistication. We’re pleased they have chosen to invest in a similar facility in our city,” Schertz City Manager Don Taylor added.

As part of the incentive package, the City of Schertz approved a 75 percent tax credit for 8 years on the company’s business personal property.  Comal County also offered a tax credit agreement.

The facility will be located in the Tri-County Business Park at the northwest corner of Doerr Lane and Lookout Road.

September 11: 5-11pm

5-7 Jazz Protagonist

7-9 Northern Lights

9-11 Ron Wilkins and The Hard Bop Project

South Central Texas, August 20, 2010 – Schertz, New Braunfels and Seguin economic development groups are set to merge some areas of their economic development activities and market themselves as the regional 10/35 Economic Development Alliance to site selectors and prospects. In doing so, the three cities will be able to combine resources in a cost-effective manner, expand its reach and compete on a larger, more global scale.

The genesis of the name stemmed from the location of the three cities located on or near Interstate Highway 35 and Interstate Highway 10, both of which can be reached in less than 15-minute drive time. The alliance formed on the cusp of recent company relocation announcements affecting the tri-city area including Caterpillar, Sysco Foods and Baptist Health Systems.

Already in a longstanding partnership, New Braunfels and Seguin approached Schertz Economic Development due to their strategic location, shared county resources, strong warehouse and distribution centers, shared workforce and values.

“Having worked on a number of projects together, there was already a level of familiarity established with Jeff Jewell, Economic Development Director for Schertz,” said Rusty Brockman, Economic Development Director for Build – New Braunfels.

The new alliance has already approved a marketing budget that includes traveling to more trade missions with the Office of the Governor, increased tradeshows, a FAM/Bus tour, commercial broker breakfast and expanded advertising and social media marketing vehicles.

“We are thrilled to become a part of this alliance. As economic developers, we have the option to grow by choice or chance. We are happy to be at the helm of choice; to shape and guide the area’s economic development future with our new partners,” said Jeff Jewell, Economic Development Director for the City of Schertz. “

The new alliance is just one of the many regional alliances spanning Texas and beyond. The thought stems from the idea that instead of competing against other cities with the same resources and goals, the cities should collaborate together since an expanding or relocating company uses all the resources from the region.

“As for the three cities in the alliance, we are all situated ideally between San Antonio and Austin. We have the same strengths as the bigger cities, but promote our cost advantages, availability of space and business – friendly attitude,” said Terry Trevino, Economic Development Director for Seguin.

About Us

New Braunfels, TX –New Braunfels is uniquely cultivated by industry-diversified business that brim with innovation yet remain deeply rooted in the sectors of manufacturing, healthcare, logistics, distribution and aviation. Balanced by an affordable, quality of place – it’s no wonder the city has grown 55% in the last 8 years. Complimented with a pro-business leadership attitude, competitive incentives, low tax burden and easy access to IH-35 and IH-10, its easy to understand why companies have relocated here. Over 300+ days of sunshine a year and nearby rivers, lakes, Schlitterbahn (America’s #1 Rated Waterpark) and over 500 acres of outdoor recreation make New Braunfels a desirable destination for work – or play, year round. More information can be found at www.buildnb.org.

Schertz, TX - Schertz is a premier Texas community, located just northeast of San Antonio, nationally recognized for its family atmosphere, foresight and innovation, and commitment to economic prosperity and workforce opportunities.  With miles of frontage along two major interstates and as one of the largest cities in the San Antonio MSA, Schertz has witnessed tremendous population and business growth and has looked to capitalize on its unique location and assets.  It is a strategic priority of the city to engage in and develop new opportunities of regional partnerships which are mutually beneficial to the residents of Schertz and of neighboring communities. More information can be found at www.schertzedc.com.

Seguin, TX – Seguin, the county seat of Guadalupe County, is located on the picturesque Guadalupe River and abuts IH-10. Nestled 35-minutes east of San Antonio, Seguin is within 20-minutes of IH-35 and 30-minutes from San Antonio and South Austin. Upon completion of SH-130, Seguin will be strategically positioned as a crossroad for traffic diverted from IH-35. Seguin has the distinction of having the largest manufacturing jobs per capita in the State of Texas. For the last 23 years, U.S. News and World report ahs recognized Texas Lutheran University (TLU), located in Seguin, as one of the nation’s top ranked best regional comprehensive colleges.  More information can be found at www.seguinedc.com.

Schertz –  San Antonio-based real estate developer SPV Ventures, LLC announced today, in conjunction with Northeast OB/GYN Associates, PLLC, the planned installation of the first large-scale, private, commercial installation of building integrated photovoltaic (BIPV) solar panels in the Schertz/Cibolo/Universal area.  The Photovoltaic Laminates will be installed on the south-facing roof of NE OB/GYN’s new 10,000 SF patient facility at Schertz Parkway Professional Plaza, 5000 Schertz Parkway in Schertz, TX.  The solar array, which is laminated to a standing seam metal roof system, is sized at 12.24 kW and will generate approximately 19,785 kWh A.C. of electricity in the 1st year of operation, and is estimated to offset 15% of the facility’s annual electricity costs.  According to David W. Mooney, Jr., AIA, president of SEV, Inc., the firm responsible for the design and installation for NE OB/GYN, “there is an estimated 6-7 year payback to the client [NE OB/GYN] based on the net costs.  Offsets in costs include a generous rebate from San Antonio’s CPS Energy, a tax credit available from the federal government, as well as local Texas tax incentives and accelerated depreciation.  These offsets, combined with NE OB/GYN’s commitment towards ‘green’ technologies, makes this installation an exciting addition to Schertz and its environs.”

Jeff Jewell, director of Economic Development at the City of Schertz, said,  “The City of Schertz has been a strong advocate for NE OB/GYN to join our community, and we are excited to have them join the solar community as well with this installation of the first commercial solar project in our city.  This is a great step forward for the City and our business community.  Hopefully, many more businesses will follow NE OB/GYN’s example as renewable energy technologies become more cost competitive with traditional generation methods.”

According to Lanny Sinkin, Executive Director of Solar San Antonio, an advocacy group dedicated towards bringing solar technologies and projects to San Antonio and the surrounding areas, “BIPV panels, while becoming more prevalent in areas outside of Texas, are considered cutting edge in the Schertz and San Antonio area, and we at Solar San Antonio welcome the developer’s and the tenant’s commitment to clean, solar energy  and innovative thinking.”

Northeast OB/GYN Associates are women’s health care specialists and provide all general services Obstetrics and Gynecology to patients throughout the San Antonio metro area.  Dr. Kent Sadler, Medical Director and CEO of Northeast OB/GYN Associates, confirmed the group’s commitment to new, energy efficient technologies adding,  “We are in practice to serve our patients and our communities.  Serving our communities includes careful stewardship of our environment, as well as efforts to improve our efficiency and reducing our costs, each which will benefit patients, folks in Schertz and our doctor/members.”

According to Jesse Hellums, President of SPV Ventures, the developer of the Schertz Parkway Professional Plaza project, “We are also extremely pleased to have solar power come to our project, and particularly in a design which is unobtrusive and respectful to our individual building design and the overall site.”

The “Made in USA” BIPV system is manufactured by United Solar Ovonic LLC, based Rochester Hills, MI, and is sold through their Texas authorized distributor, Whirlwind Solar, a division of Whirlwind Steel Buildings, Inc. in Houston.  The panels are planned for installation in August by Whirlwind’s local, authorized installer, and, when completed, will be comprised of approximately 90 individual panels, each 16” wide and 18’ long, and approximately ¼” thick.  The solar laminate system is a “penetration free system” which is another reason why the SEV design team selected to use the BIPV technology.

Northeast OB/GYN Associate’s solar array has the ability to be a “Grid Tied” system which means that if the solar array is creating more electricity than NE OB/GYN is using, clean generated electricity can be put back on the grid.

SPV Ventures, LLC, is a privately owned limited liability company based in San Antonio and has its main offices at 16161 College Oak, S. 100, San Antonio, 78249.  Contact Carey G. Birmingham, managing director, for more information at 210-262-8490 or coinvestments@satx.rr.com.

SEV, Inc. is a New York base solar energy design and installation company with a branch office in San Antonio, TX.  Contact David W. Mooney, Jr., AIA at 914-967-0960 or dmooney@sevsolar.com

To subscribe to future newsletters by e-mail, please click HERE.

SAN ANTONIO — A part of San Antonio is now in Schertz.

The City of Schertz asked San Antonio&rdsquo;s city council to approve an annexation of about 3,500 acres in the Interstate 10 corridor, between FM 1518 and the Bexar County Line. Thursday, city council voted unanimously to release the land to Schertz.

As part of an agreement to release the land, San Antonio will get 50% of the sales tax revenue collected in the area for the next ten years.

One of the largest segments of San Antonio’s economy is one of the few industries able to generate new commercial construction projects in a tight lending market.

San Antonio’s $16 billion-a-year medical industry is seen as low-risk, even beyond high-dollar publicly funded projects such as the San Antonio Military Medical Center and University Health System’s $900 million capital improvements program.

Financing commercial construction is currently all but impossible as lenders have increased the occupancy and equity requirements for new projects. But banks are still making deals with doctors or with developers who want to build medical space and have tenants lined up.

“The physician-developed stuff is readily (financed),” said Carl Bohn, vice president for medical investment real estate at NAI REOC San Antonio. “The banks like those loans for owner-occupied medical office space. They’re offering very attractive and aggressive loans for that.”

“Overall, the health care market continues to expand in good times and bad,” he said. “And this is before Obamacare.”

With millions of people expected to obtain health insurance, the nation will need 64 million square feet of new medical space, Bohn said.

Developer SPV Ventures had been sitting on a 7.6-acre property in Schertz for almost eight years when the city’s economic development corporation last year proposed building medical office space on the site, said Carey Birmingham, the company’s managing director.

“They were adamant that we put medical there,” Birmingham said. “And frankly, from a real estate perspective, we didn’t care what we put on the site … It just so happened that the stars aligned that they wanted medical. We had a site that was ready for medical, and they had a bank that was ready to finance medical.”

Because Northeast OB/GYN Associates and two other tenants were ready to sign a lease, Birmingham said, SPV Ventures was able to secure a $2.5 million loan for construction of a 10,000-square-foot and an 8,000-square-foot building at the corner of Interstate 35 and Schertz Parkway. Construction is under way, and the company is seeking financing for a $7.5 million second phase, he said.

“My personal opinion is that medical’s moving well for a couple of reasons,” Birmingham said. “One reason is a lot of the physicians have great credit. No surprise there. And it’s certainly a growth industry in San Antonio and South Texas. And those two things make it (possible to finance). I can’t imagine any developer these days getting financing for spec anything.”

Physicians are also working out deals with developers to construct buildings that the doctors will own, said Sarah Teel, president of commercial real estate firm MSL Investments.

Because doctors are expanding the services they offer at their clinics, their need for space and plumbing and mechanical services have increased, Teel said. And while banks are much more likely to make loans for owner-used buildings than for speculatively built space, they also require doctors to partner with developers before granting the loan, she said.

“Right now the wave for a number of doctors has been to facilitate an ownership interest in the clinic or building where they’re practicing,” Teel said. “They’re seeking additional means to create security in their practice.”