Laserfiche WebLink
EXHIBIT C <br />Due Diligence Review Items <br />The contract with GSMP or a revision to the city's economic development incentives policy could <br />address whether or not the city is willing to (ever) serve as a lender or a guarantor on a loan vs. <br />considering only performance -based incentives. <br />A less stringent review might be warranted on a performance -based incentive package because the <br />risk to the city is reduced, but even in those instances, a baseline of items to include in a due <br />diligence / vetting process might include. <br />1. Business plan /business model — i.e., what services does the business currently provide? What <br />is proposed in San Marcos? <br />2. How long has the company been in business producing this product or providing this service? <br />3. Is this the type of company the city is trying to attract? Per City's Economic Development Policy <br />4. Will the company be in competition with existing companies in /around San Marcos? <br />5. Why is the company considering a location in San Marcos? What has been its history <br />of locations /relocations? <br />6. What incentive is the company seeking? Why is it essential that the company receive <br />that incentive? Is there a verifiable "but for" justification? <br />7. Is San Marcos the only location the company is considering? If so, in what other states <br />or locations within Texas? <br />8, Is San Marcos competing with other entities served by GSMP? <br />9. Has the company applied for incentives from the State of Texas? Timeline for decision? Has <br />the State rejected an incentive proposal for the company? If so, why? <br />10. Verification that the business' products or services will /will not generate sales taxes. <br />This requires a review of the Texas Tax Code and the Texas Administrative Code <br />provisions that include the Texas Comptroller's regulations and a clear understanding of <br />the company's products /services. <br />11. Performance benchmarks for: number of full time employees; average annual wage; number <br />of employees in each wage range; proposed benefits; schedule for bringing employees on <br />line during term of agreement. <br />12. Value and schedule for company's capital investment in San Marcos? <br />13. Company's requirements for water, wastewater, & electric capacity? Impacts of <br />wastewater discharges on city's sanitary sewer system. <br />14. Verification that the company and the proposed incentive meets the criteria of the <br />city's economic development incentives policy. <br />15. Are claw back provisions necessary? If so, what is recommended? (this should be <br />proportional to the city's risk, if any). <br />