Res 2013-086/Approving an Economic Development Incentive agreement between Austin Street Tavern

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ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT Pursuant to Section 1.4.4.1 of the City of San Marcos Land Development Code, this agreement (the "Agreement ") is entered into by and between Austin Street Tavern, L.L.C., doing business as Aquabrew ( "Owner ") and the City of San Marcos, Texas (the "City "). The Owner and the City are collectively referred to as the "Parties." PART 1. RECITALS Section 1.01. The City seeks to promote local economic development and to stimulate business and commercial activity in the City by, among other things, encouraging new in -fill development and job creation in the downtown area. Section 1.02. Owner seeks to open a restaurant and brewpub (the "Brewpub ") at 150 South LBJ Drive (the "Property "). The Property is located within the Central Business Area ( "CBA ") as defined in the City's Land Development Code ( "LDC "). The building on the Property is vacant, structurally compromised, poorly built and contains asbestos. It is not feasible to repair or rehabilitate the building. In addition, the sidewalk in front of the building is in need of replacement. Section 1.03. The Owner has proposed and intends to redevelop the Property by replacing the existing building, including remediation of any asbestos, and installing new sidewalks, among other improvements, for the purposes of operating the Brewpub, thus, increasing the ad valorem property tax value of the improvements on the Property. The Brewpub will house a brewery — the first brewery of this scale to be operated in the City of San Marcos. The Brewpub will serve gourmet food, beer, wine and mixed beverages for consumption on the premises of the Property. The kitchen will be professionally equipped and capable, making it one of the largest non - franchise commercial kitchens ever built in San Marcos, totalling 2,000 square feet. The foregoing activities are collectively, the "Project." Section 1.04. The LDC establishes special conditions for the issuance of a Conditional Use Permit ( "CUP ") for a restaurant serving alcoholic beverages for consumption on its premises. Pursuant to the requirements of Section 4.3.4.2 (b)(8) the LDC the Owner is subject a six -month waiting period before beer and wine may be sold from the Property for on- premises consumption and a 12 month waiting period before mixed beverages may be sold from the Property for on- premises consumption. Section 1,05. Section 1.4.4.1 of the LDC authorizes the City Council to grant waivers of certain requirements under the LDC for economic development purposes. The waiting periods for the sale of alcoholic beverages for on- premises consumption under Section 4.3.4.2 (b)(8) of the LDC are major impediments to Owner's successful execution of the Project and redevelopment of the Property and the Owner, therefore, seeks a waiver of these waiting periods. Section 1.06. The City Council finds that the Owner's request for a waiver complies with the requirements for granting a waiver of certain requirements of the LDC for economic development purposes under Section 1.4.4.1 of the LDC. The City Council, therefore, is