The overview
Continental Autonomous Mobility U.S., located in New Braunfels at 440 Kohlenberg Road, builds hardware and software for vehicles.
The expansion project, dubbed Project Nemo, is for an additional 65,000-square-foot manufacturing space. It would add $100 million of appraised value to the site, according to a Sept. 30 New Braunfels Economic Development Corporation, or NBEDC, presentation.
Two incentives, one by the city and one by the NBEDC, are being considered. The proposed city incentive is for a 10-year, 65% property tax abatement on the expanded portion of the facility. The proposed NBEDC incentive would not exceed $300,000 and is similar to the initial project’s incentive, construction fee waivers and roadway impact fees, according to the presentation.
Looking back
Continental opened its 215,000-square-foot manufacturing space in New Braunfels in the fall of 2022. To incentivize the project, the city entered into a Chapter 380 Economic Incentive Agreement with Continental in August 2020.
A Chapter 380 Agreement gives municipalities the authority to offer loans and grants of city funds or services at little or no cost to promote state and local economic development and to stimulate business and commercial activity, according to the Texas Comptroller's website.
The agreement provided a multiyear refund of property taxes paid on the improvements and business personal property for the company, fulfilling certain employment and wage requirements, according to New Braunfels City Council agenda documents.
Looking ahead
An agenda item proposing to consolidate the initial Chapter 380 agreement into a Chapter 312 tax abatement will be presented to New Braunfels City Council on Oct. 13.
A Chapter 312 tax abatement is an agreement between a taxpayer and a taxing unit that exempts increases in the value of the property from taxation for up to 10 years. Tax abatements are an economic development tool available to cities, counties and special districts to attract new industries and encourage the retention and development of existing businesses through property tax exemptions or reductions, the Texas Comptroller's website states.
There will also be a public hearing on the tax abatement for the Continental property.
If the expansion project is approved, along with the proposed incentives, construction is anticipated to begin no later than June 30, 2026, according to the NBEDC presentation.
One more thing
The company is also in the process of rebranding to AUMOVIO—an independent company of Continental, according to a news release.
