Agenda No. 8.
SEDC MEMORANDUM
| SEDC Board Meeting: | 05/25/2023 |
| Department: | Economic Development Corporation |
| Subject: | Resolution 2023-5 - Discussion and possible action approving an amendment to the economic development performance agreement between the City of Schertz Economic Development Corporation and Nexus Enterprises LLC ; and other matters in connection therewith. |
BACKGROUND
In June 2019, Nexus Enterprises LLC entered into an agreement to fulfill and maintain minimum performance criteria. Throughout the term of the agreement, the Company must create and maintain the following minimum:
In 2022, Nexus Enterprises LLC failed to meet the minimum performance criteria falling below the full time employee count and annual payroll
- 87 Full Time Employees
- $4,616,770 Annual Payroll
In 2022, Nexus Enterprises LLC failed to meet the minimum performance criteria falling below the full time employee count and annual payroll
COMMUNITY BENEFIT
The Nexus 2022 narrative attached to the certification indicating jobs and payroll stated that in the beginning of 2023, the minimum performance criteria was already exceeded and didn't expect to fall below for the remainder of the agreement.
FISCAL IMPACT
SUMMARY OF RECOMMENDED ACTION
SEDC staff recommend extending the length of the agreement for 1 more year.