city of San Antonio


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File #: 19-1436   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 1/31/2019
Posting Language: Ordinance approving a Chapter 380 Economic Development Incentive Fund Agreement in an amount not to exceed $221,000.00 and a 15-year, 60% Tax Rebate agreement with Pentagon Federal Credit Union. Funding is available from the Economic Development Incentive Fund FY 2019 Adopted Budget. [Carlos Contreras, Assistant City Manager; Rene Dominguez, Director, Economic Development]
Attachments: 1. COSA ContractsDisclosureFormComplete, 2. Draft Ordinance, 3. Company Signed Chapter 380 Grant (Rebate) Agreement Final, 4. Ordinance 2019-01-31-0107
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DEPARTMENT: Economic Development


DEPARTMENT HEAD: Rene Dominguez


COUNCIL DISTRICTS IMPACTED: 10


SUBJECT:

Consideration of a Chapter 380 Economic Development Incentive Fund Grant and Tax Rebate Agreement with Pentagon Federal Credit Union (PenFed).

SUMMARY:

Pentagon Federal Credit Union (PenFed) is considering establishing a Regional Center of Excellence in San Antonio. This project would include the creation of 571 new, full-time jobs over five years with a proposed capital investment of $8.9 million in real and personal property. Staff is requesting City Council to approve an incentive agreement with PenFed which provides for: (A) an Economic Development Incentive Fund Grant up to a maximum of $221,000 based on 221 new full-time jobs making $50,000 or more annually within five years; and (B) a 15-year, 60% Tax Rebate, with a total value cap of $500,942, based on a capital investment of at least $8.9 million and the creation of 571 new full-time jobs over five years at the site.

BACKGROUND INFORMATION:

Established in 1935 as the War Department Credit Union, Pentagon Federal Credit Union (PenFed) is the nation's third largest federal credit union. The company is headquartered in McLean, Virginia, and has over 1.6 million members and $24 billion in assets. The company offers mortgage products, automobile loans, credit cards, and other financial services to its members.

The company has members in all 50 states and several U.S. territories. PenFed is federally insured by the National Credit Union Administration. The company currently has 2,504 full time employees, but does not have a business presence in San Antonio. The proposed project would establish a Regional Center of Excellence in San Antonio, and include a variety of support positions and IT roles, including software analysts, engineers, and developers. San Antonio competed with Tampa, Florida, for this project.

PenFed intends to create at least 571 new, full-time jobs over five years at the ...

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