Just as cities are unique, so too are their economic development agreements and processes. To help companies better understand Schertz’ approach, this post focuses on what to expect when entering into a Performance Agreement – the mechanism used to administer incentives – with the City of Schertz Economic Development Corporation (SEDC). While this post provides a quick overview based on conversations with SEDC and development staff, we encourage you to reach out so we can provide additional information specific to your business.
Philosophy
Starting with incentives, what guides the SEDC in its use of these funds?
- Our overarching goal is to partner with the private sector to spur continued local investment in Schertz. To achieve this goal, we currently focus on attracting/expanding Primary Job Employers – businesses that export products and/or services out of the region, bringing new money into the community. We also partner with developers. As developers construct new space, they not only attract business to Schertz but also help open new areas of the city for future development.
- Another component of the City of Schertz’ approach to incentives is that most of our community’s traditional incentives do not involve city funds. Instead, incentives are paid and administered through the SEDC. This allows the city to allocate its revenue to public safety, roads, and quality of life projects.
Process
What is the process businesses can expect when entering into an SEDC agreement?
- The first thing to know is that the SEDC serves as the primary point of contact for incentives, regardless of whether they come from the state, county, or local level. Providing a single point of contact streamlines the incentive process and makes it easier for companies to interact with multiple government entities.
- As for the process: (1) We first meet with the company/developer to create minimum Key Performance Criteria. These include number of jobs, annual payroll, and taxable value & capital investment of the project. (2) Using this information, staff runs an economic model to determine a proposed incentive offer based on community benefit and shares this proposed offer with the company. (3) Negotiation usually occurs at this point, with the company reviewing the offer and the SEDC determining if any changes are advisable. (4) The proposed offer is taken to the SEDC board, the Schertz City Council, and the County (as applicable). The City’s legal team is involved throughout this process. (5) After the negotiation period ends, the proposed offer is formalized through what’s known as a Performance Agreement and taken to the SEDC board, City Council, and County (when applicable) for final approval.
Recommendations
What else is helpful to know?
- Regardless of whether an incentive is offered or not, the Schertz development team wants to help your project move forward quickly and efficiently. The SEDC is part of a citywide development team, which includes members of the City’s Planning, Permitting, Engineering, Public Works, and Fire departments. Let us help you get the data you need, from infrastructure capacity to fee estimates, so you fully understand the impact of your development. Reach out to the SEDC for more information.
- We also work with many companies that operate in Schertz that aren’t using SEDC incentives. We offer a variety of assistance from free reports helping businesses understand the region to working on their behalf to solve local community challenges through our business retention program.