New Braunfels City Council on Dec. 9 approved a $5.5 million EDC incentive package for Continental Automotive Systems Inc., a supplier to the global automotive market with more than $40 billion in assets, according to city officials.
“This project has been a long time in the making,” Assistant City Manager Jordan Matney said.
The two-part economic incentive package will include a land acquisition grant of up to $3.3 million. Continental has purchased 48 acres of land located on Kohlenberg Road between I-35 and FM 1101, Matney said.
Continental has plans to construct a 205,000-square-foot manufacturing and research facility that will employ approximately 576 employees with a combined payroll of $28 million, Matney added.
Per the performance requirements of the EDC package, Continental is expected to employ 444 full-time employees by 2023 and 576 full-time employees by 2031.
A number of infrastructure and land improvements are included in the EDC incentive package, including a $270,000 payment to the city for permits, roadway and impact fees, and $1.8 million in funding for a New Braunfels Utilities project that will extend sewer lines to the new plant.
A second EDC package will contribute up to $300,000 for mill and overlay work on Kohlenberg Road and will provide Continental Automotive a 15% tax rebate for a term of 10 years.
“If they fail to meet the minimum tax receipts then they will pay the difference ... and not receive any rebate for that year,” Matney said.
Projections from the city indicate $4 million in benefits through utilities and taxes paid from the project over the next 10 years, with a largest minimum tax receipt required of $500,000 in year three.