This project was brought to us very recently and due to its minor nature and the magnitude of the project, we are hopeful that we can take action to ratify it at this meeting after we go back into open session.  Core5 Industrial Partners LLC owns a 136-acre tract in south Schertz near the intersection of Loop 1604 and IH-10.  The project as been underway, and the owners have plans for four spec warehouse/fulfillment center developments.  They have been working with the city separately for several months and the development is underway.  At a certain point, they were made aware of a requirement of the city to where the city requires pilot channels in their drainage channels.  The area where the facility is has a large amount under flood plain and there is extensive work being done to channelize stormwater.  As a result of the city's requirement, the group are being forced to pay an additional $350,000.00 that they did not have in their plan.  I received a request to reach out to Core5 and did so.  They submitted an application, and we are before you all at this meeting to see if you all would like to enter into a performance agreement with them to provide this funding, for only the amount of the cost of the channelized stormwater channels, not to exceed $350,000.00, when they receive their Certificate of Occupancy for one of the four buildings.  They will front the construction and the SEDC will reimburse them actual costs not to exceed the maximum amount.

This development is an expansive office park on a piece of property that has a lot of floodplains, along with some street's issues, being shared between us and San Antonio.  Brian James has worked with the developer to overcome a great many of these issues, making the portion that the SEDC is being asked to pay for very small in the scope of the project.  Anticipated to equal a $144 million dollar project that could potentially employ 1600 employees.

Not to exceed $350,000 paid out in an Operational Grant at the time of their Certificate of Occupancy for one of their buildings.

This is an extraordinary project that is already underway.  Tremendous benefits to the city for what we are being asked to contribute and what we will be funding is a benefit to stromwater runoff in an area that has extensive flood plain.  Staff would recommend approval.