Res 2015-091/approving a Chapter 380 Economic Development Incentive Agreement with Humpty Dumpty SSM, Ltd. for the redevelopment of Springtown Shopping Center

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CHAPTER 380 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT As of July 21, 2015 (the "Effective Date ") this Chapter 380 Economic Development Incentive Agreement is entered into between the City of San Marcos, Texas (the "City "), a Texas municipal corporation, and Humpty Dumpty SSM, Ltd. (the "Owner "). The Owner and the City are collectively referred to as the "Parties." ARTICLE 1. RECITALS Section 1.01. The Owner owns and operates a retail shopping center commonly known as Springtown Mall or Springtown Shopping Center ( "Springtown ") bounded by IH -35 North, Thorpe Lane and Springtown Way (the "Site "). A boundary map of the Site is attached hereto as Exhibit "A," and made a part hereof for all purposes. For purposes of this Agreement, the terms "Springtown" and "Site" exclude the pad sites currently occupied by Logan's and IHOP restaurants, and the former Applebee's restaurant pad site. Section 1.02. In recent years Springtown's anchor tenants relocated to newer retail centers, while other tenants also vacated. As a result, Springtown has experienced a decline in overall maintenance and repair, and property value and sales tax generation. Section 1.03. The Owner has made an initial capital investment of at least $13,550,000.00. In furtherance of the redevelopment of Springtown, the Owner intends to make additional capital investment of at least $14,000,000.00, resulting in a substantial increase in property value and sales tax generation. Section 1.04. The Owner intends to enter into lease agreements with anchor, junior anchor and other tenants to restore full occupancy of the Site. The Owner estimates that Springtown tenants will provide tenant capital investment of at least $7,000,000.00, contributing further toward a substantial increase in property value and sales tax generation. Section 1.05. The City seeks to promote local economic development and to stimulate business and commercial activity in the City. The redevelopment of Springtown will advance the City's interests by attracting new and retaining existing business, creating jobs, increasing sales and property tax revenues and enhancing the image of the City. Section 1.06. The City is authorized under Chapter 380 of the Texas Local Government Code ( "Chapter 380 ") to offer certain economic development incentives for public purposes, including promotion of local economic development and the stimulation of business and commercial activity in the City. Section 1.07. For the reasons stated in these Recitals, which are incorporated into and made a part of this Agreement, and in consideration of the mutual benefits and obligations set forth herein, the Parties enter into this Agreement and agree to the terms and conditions set forth in this Agreement with the understanding that the incentives provided hereunder will be the only incentives offered for Springtown during the term of this Agreement.