AGENDA CAPTION:
Title
Consider approval, by motion, of a letter agreement with Village Main San Marcos to provide $442,000 in funding from potential Best Buy sales tax revenue.
Body
Meeting date: September 19, 2017
Department: Steve Parker, Assistant City Manager
Funds Required: $442,000
Account Number:
Funds Available:
Account Name: Future Best Buy Call Center Sales Tax revenue.
CITY COUNCIL GOAL: Goal #7 Maintain Fiscal Responsibility
COMPREHENSIVE PLAN ELEMENT(s): N/A
BACKGROUND: The Village of San Marcos has requested $442,000 in funding to help with the $4.4 Million construction cost related to their new facility on Reimer Avenue in San Marcos Texas. The San Marcos City Council tentatively approved their request during the City Council budget workshops held in July 2017. Attached is a letter of agreement notating the terms of the funding which is solely dependent on the Best Buy Call Center revenues which are anticipated to start the last quarter of Fiscal Year 2017. To summarize:
1. No payments will be made without an approved building permit.
2. The first payment will be made by the end of February 2018 and will include the months of September, October, November and December.
3. Following payments will be submitted in May 2018, August 2018 and November 2018.
4. Payments will not exceed $442,000.
5. Payments are totally dependent and contingent from the Best Buy Call Center located in San Marcos Texas and does not include sales tax collections that are scheduled to be rebated back to the Best Buy corporation per the City’s Chapter 380 agreement.