m - City of New Braunfels

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WHEREAS, the proposed project (the Project) will consist of the development of
regional drainage improvements and the construction of Farm to Market Road ("FM")
306 on the east side of Interstate Highway ("IH") 35 to FM 1101, the extension of water
mains down FM 306 and FM 1101 to connect with the existing water service at FM 11 01
and Collenberg Road, and various road and utilities infrastructure in that area which will
support the Creekside Project, a proposed one million square foot retail facility to be
constructed at IH 35 and FM 306; and
WHEREAS, Section 48 (a-1) of the Act provides that before the Corporation may
undertake any project, the City must first publish notice of the specific project or type of
general project that the Corporation intends to undertake; and
WHEREAS, on July 10, 2007 the City published notice of the Project; and
WHEREAS, the City will own the Project and will have full responsibility for the
design and construction of the Project and the Corporation shall have no duties or
responsibilities with respect to the Projects other than as provided in this Agreement;
and
WHEREAS, the City created Reinvestment Zone Number One, City of New
Braunfels, Texas (the Zone); and
WHEREAS, the Corporation has agreed to contribute its Sales Tax collected in
the Zone to the City for deposit in the tax increment fund for the Zone; and
WHEREAS, under the current policies and procedures established by the
Comptroller the sales and use tax belonging to the City and the Sales Tax belonging to
the Corporation are collected, commingled, and remitted directly to the City in undivided
interests and without allocations or notations of ownership as between the City and the
Corporation; and
WHEREAS, it is appropriate and necessary that the City and the Corporation
adopt formal procedures by which the City's sales and use tax and the Corporation's
Sales Tax are collected, deposited, held, identified, allocated, and transferred to or for
the benefit of the Corporation; and
WHEREAS, the Parties intend to enter into this interlocal cooperative agreement
(the Agreement) relating to the allocation of proceeds from sales and use taxes of the
Corporation levied in the Zone to the City for expenditures relating to the Project as
provided herein;
WHEREAS, this Agreement shall constitute an interlocal cooperative agreement
as authorized pursuant to the provisions of Chapter 791, as amended, Texas
Government Code;
WHEREAS, the City and the Corporation expressly acknowledge and recognize
that pursuant to the Act, the Sales Tax proceeds collected in the Zone may only be
allocated for purposes of the Project as authorized by the Act; and
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