The details
Continental’s New Braunfels facility, which began operations in the fall of 2022, currently holds over $170 million in taxable commercial property and employs approximately 450 people, said Jeff Jewell, director of economic and community development for the city, at a Nov. 12 council meeting.
Continental’s proposed expansion could bring significant economic benefits to the area, including additional jobs, increased investment and a stronger position for New Braunfels in advanced automotive technology production, Jewell said.
"The proposed expansion would add additional production and storage capacity to support Continental's partnerships for self-driving freight truck technology," Jewell said.
The takeaway
During the public hearing and first reading of an ordinance, the council discussed designating a reinvestment zone under Chapter 312 of the Texas Tax Code.
This is a preliminary step toward negotiating a tax abatement agreement for the increased property value from the expansion. The city previously adopted guidelines for tax abatement agreements in August 2023 to encourage economic growth and investment, Jewell said.
Final terms of a potential tax abatement agreement for the expansion are expected to be presented to the City Council in early 2025, Jewell said.
