DEPARTMENT: Economic Development
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Mutual Termination Agreement with Petco Animal Supplies, Inc (Petco)
SUMMARY:
An Ordinance authorizing a Mutual Termination Agreement of an economic development agreement with Petco Animal Supplies, Inc. (Petco). The City of San Antonio entered into an economic development agreement with Petco in 2010. The agreement included a 10-year, 100% real and personal property tax abatement for the project site, an Economic Development Incentive Fund (EDIF) grant for $625,000 and $100,000 in training credits with Alamo Colleges. The company was required to invest $5 million into the project site and create 400 full-time jobs.
The company has not met their job requirements and has since sold its facility and is leasing office space back from the new owner. Due to the failure to meet terms of the agreement, staff recommends terminating the 2010 economic development agreement with Petco.
BACKGROUND INFORMATION:
In 2010, City Council approved an economic development agreement with Petco that included a ten-year, 100% real and personal property tax abatement for a new facility and an Economic Development Incentive Fund (EDIF) grant of $625,000. Of the EDIF grant, $250,000 was for the project and $400,000 was to be paid out in annual installments contingent upon annual contributions from the company for the benefit of ACS's spay-neuter program. Training credits at Alamo Colleges in the amount of $100,000 over a two-year period were also dedicated as part of the incentive package, all of which was contingent on the company investing $5 million at the project site and creating 400 new jobs.
Since the start of this agreement, the City paid $250,000 of the Economic Development Incentive Fund grant for meeting the investment requirement of $5 million and the construction of the facility. The City also has abated $277,739 in property taxes for the jo...
Click here for full text