SUBJECT
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A Resolution of the City Council of the City of Laredo, Texas, authorizing an amendment to the Chapter 380 Agreement with DSV Global Transport & Logistics effective as of July 28, 2026 (the “Effective Date”), is entered into by and among the City Of Laredo, Texas, a Texas home-rule municipal corporation (the “City”), DSV Real Estate Laredo, LLC, a Delaware limited liability company (“Original Company”), DSV Air & Sea Inc., a Delaware corporation(“Operating Company”), and MDC Coast 18, LLC, a Delaware limited liability company (“Owner”). The City, Original Company, Operating Company, and Owner may be referred to individually as a “Party” and collectively as the “Parties.”
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PREVIOUS COUNCIL ACTION
The Resolution was approved on May 6, 2025 meeting.
BACKGROUND
The City Council approved the Resolution authorizing the Chapter 380 Economic Development Agreement with DSV Global Transport & Logistics on May 6, 2026. Since the Agreement became effective, DSV Global Transport & Logistics has remained in compliance with its terms and conditions.
The ownership of the project property has since changed, resulting in a new property owner. Accordingly, an amendment to the Chapter 380 Agreement is required to update the Agreement and reflect the new property owner.
VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Moderate
Supporting goal(s)/policy(ies): Goal - Promote Economic Development
Viva Laredo Comprehensive Plan (Economic Development Chapter)
"Promote economic development through the recruitment, retention, and expansion of existing and new businesses."
Source: Viva Laredo City of Laredo Comprehensive Plan.
Relevance:
The amendment preserves an existing Chapter 380 economic development agreement following a transfer of property ownership. By maintaining the incentive structure, the City continues to support the long-term operation and expansion of DSV Global Transport & Logistics within Laredo.
Policy - Support the Retention and Expansion of Existing Businesses
"Support the retention and expansion of existing businesses to strengthen the local economy and employment base."
Source: Viva Laredo City of Laredo Comprehensive Plan.
Relevance:
The amendment ensures contractual continuity despite the ownership change from DSV Real Estate Laredo, LLC to Realty Income. This action supports business retention by preserving the existing Chapter 380 agreement and maintaining certainty for continued logistics operations and employment.
Summary of alignment: The proposed resolution demonstrates Moderate alignment with the Viva Laredo Comprehensive Plan because it preserves an existing economic development agreement without changing its underlying purpose or incentives. The amendment is administrative in nature, substituting Realty Income as the property owner while allowing DSV Global Transport & Logistics to continue operating under the existing Chapter 380 Agreement.
Although the resolution does not directly implement a new Comprehensive Plan initiative, it indirectly advances the Plan's economic development objectives by promoting business retention, supporting continued private investment, preserving employment opportunities, and providing stability for an existing industrial logistics operation. These outcomes are consistent with the Plan's broader themes of economic development, industrial competitiveness, and long-term investment retention.
The Moderate alignment rating is appropriate because the action facilitates the continued effectiveness of an existing incentive agreement rather than creating or expanding a new economic development program.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
For City Council to approve this motion.
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Fiscal Impact
Fiscal Year: 2025-2026
Budgeted Y/N?: Y
Source of Funds: General Fund
Account #: Click or tap here to enter text.
Change Order: Exceeds 25% Y/N: N
FINANCIAL IMPACT:
None