THE Schertz 312 Blog

boundaries and potentially guide the development and secure new territory from the City of San Antonio. It provided acres geared towards highly valuable industrial development.

To secure the partnership Titan and the SEDC, the City of Schertz and Titan Development adopted Schertz 312 Phase I and Phase II in 2018.

From the years between 2010 and 2018, the City of Schertz industrial areas experienced massive growth.

By 2018 most of the land from FM 3009 to Schertz/Selma city boundary was spoken for across acquisitions that had planned phases of development, such as the East Group buildings and the Titan/(Titan’s Partner) speculative development programs. Speculative development, in many cases, follows a pattern of phased development. The developer secures land and develops industrial space that is absorbed, further proving the market for that type of space in the area. The Titan/ Robinson Weeks partnership was a speculative development program that has resulted in the development of 7 buildings totaling close to 1,000,000 sq ft of industrial space.

In 2017 one of the partners, Titan Development, approached the SEDC with a partnership proposal on Schertz 312. The proposal was a partnership that, if successful, would assemble 312 acres of new developable land.

The Partnership

From the perspective of the SEDC and the City of Schertz, the partnership held very positive development impacts. It assembled land from multiple property owners and allowed the city to control the development within its

Phase I of the Schertz 312 provided to Titan up to $4M in reimbursement for the extension of Tejas Parkway and the extension of the sidewalks, fire hydrants, and water and wastewater facilities. Phase II opened up more acreage for the industrial property that were already within the City of Schertz. The most significant part of the partnership was the agreement of the SEDC to provide up to $4M in reimbursements and allow Titan to maintain that payment through 2033 under specific performance goals. The performance goals that permitted Titan to retain they payment included the company reservation of the Northern Tract of the property for the development of a 1 million square foot facility. The site could also be developed for a campus-style development as long as the site was used for a single user. This agreement represents a developer partnering on securing a single end-user of a specific scale in alignment with local economic development goals. This represented a significant partnership as most speculative development rewards developers for producing whatever size and type of product being absorbed at the time. Titan agreed to share the risk of pursuing one large end user and agreeing to partner for the long-term goal. Projects such as these can sometimes to take up to 20 years to come to fruition but the longterm effects can be felt for generations to come.