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Res 2024-021 approving a Chapter 380 Economic Development Incentive Agreement with Buc-ee’s San Marcos, LLC that provides incentives in the form of refunds of 50 percent of sales taxes generated by the company
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Res 2024-021 approving a Chapter 380 Economic Development Incentive Agreement with Buc-ee’s San Marcos, LLC that provides incentives in the form of refunds of 50 percent of sales taxes generated by the company
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3/21/2024 10:02:53 PM
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Resolutions
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Approving
Number
2024-21R
Date
3/5/2024
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"Overpayment Amount" means the percentage of a Grant Payment which Developer must <br /> reimburse to the City after delivery of a Job Compliance Affidavit showing Developer did not maintain the <br /> Minimum Job Threshold for the prior calendar year,which percentage shall be equal to the following: (175 <br /> minus Annual Job Average) divided by 175. For illustrative purposes, if Developer only maintains, on <br /> average, one-hundred fifty(150)full-time jobs in any given calendar year,then Developer shall reimburse <br /> to the City fourteen percent (14%) of the Grant Payments for such calendar year. Upon payment of the <br /> Overpayment Amount,Developer will be eligible to receive the-Grant Payments in future calendar months <br /> for the remainder of the Term. <br /> "Project"means the development of approximately 21.92 acres as generally depicted on Exhibit B <br /> and the construction and operation of a retail development consisting of a Buc-ee's Travel Center being <br /> approximately seventy-four thousand(74,000)square feet in size and providing approximately one hundred <br /> twenty (120) fueling positions. The Project shall have resulted in a minimum capital investment by <br /> Developer of$50,000,000.00. <br /> "Project Term" shall mean a period beginning on Tax Payment Effective Date and continuing for <br /> a period of fifteen(15)years. <br /> "Property" means the real property described on Exhibit A, attached hereto. <br /> "Purchase Agreement"means the Contract for the Purchase and Sale of Real Estate executed by <br /> and between Blanco Trace Development, LLC and CSMS Management, LLC dated as of September 22, <br /> 2022 for the sale of approximately 21.92 acres of real property in Hays County,Texas,as may be amended <br /> from time to time and/or assigned to Developer. <br /> "Real Property Improvements"means any improvements constructed on the Project. <br /> "Sales Tax Revenues" means the actual sales tax revenue derived from the sale of taxable items <br /> at the Project and collected by the City during the Project Term less any fees deducted by the Texas <br /> Comptroller. <br /> "Tax Payment Effective Date" shall mean January 1 following the date the Project opens for <br /> business to the public. <br /> ARTICLE II <br /> CONDITIONS TO PROJECT PERFORMANCE <br /> 2.1 Conditions to Proiect Performance. The obligations of the parties hereunder are <br /> conditioned upon Developer acquiring title to the Property on or before the later to occur of June 1, 2024 <br /> or within 10 business days of the Property seller's approval of a Final Plat creating the Buc-ee's Parcel. In <br /> the event Developer does not acquire the title to the Property, Developer shall not have any obligation to <br /> construct or operate the Project and the City shall have no obligation to provide any economic development <br /> grant or other economic incentive to Developer. <br /> ARTICLE III <br /> ECONOMIC DEVELOPMENT OBLIGATIONS OF DEVELOPER <br /> In consideration for the incentives provided by the City,Developer agrees and covenants,provided <br /> the conditions precedent set forth in Section 2.1 are satisfied,to construct and put into place real property <br /> improvements described in this Article, and to place all other economic development benefits set forth in <br /> this Article as follows: <br /> Economic Development Agreement <br />
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