The new 70,000-square-foot facility will serve customers in Mexico and the Southern United States area and manufacture custom blow-molded plastic parts, components and products, as previously reported by Community Impact.
New Braunfels City Council approved two resolutions recommending its economic development corporation, or NBEDC, authorize an incentive not to exceed $950,000 for Lefko and nominating the company for Enterprise Zone Project designation under the state’s Texas Enterprise Zone Program on Aug. 25.
What you need to know
The Texas Enterprise Zone Program is a state-level economic development tool that provides a rebate of state use and sales tax for companies that meet certain investment and employment thresholds, said Jeff Jewell, director of economic and community development.
The program is designed to encourage private-sector investment that directly supports community economic development priorities. Jewell said the program makes Texas communities more competitive in site selection.
“Those incentives are performance-based, meaning that the companies have to fulfill the minimum investment and employment thresholds and then they get a rebate of that state sales tax back to the company,” he said. “It does not cost the city of New Braunfels anything.”
The company makes those initial capital investments and employment commitments prior to the expiration of that designation period. The company would pay state sales and use tax on qualified expenditures.
“If the company fulfills those hiring and investment requirements, they’re eligible for a refund up to $2,500 per employee hired, up to a maximum of $1.25 million,” Jewell said.
Breaking down the incentive
If Lefko fails to meet the performance metrics, it will repay NBEDC $2,000 annually for each employee. The company would also rebate $2,000 annually to the NBEDC for every year that it is at least $500,000 below the minimum taxable value in accordance with the year, according to agenda documents.
The company agreed to provide a $450,000 letter of credit before receiving the initial payment. The letter of credit will be maintained by Lefko through the first five years of the project, agenda documents state.
“This would make sure that the EDC could draw on it and reclaim any incentives that are paid out,” Jewell said.
The company has also agreed to a local hiring requirement—20% of employees must reside within Comal or Guadalupe County unless the employment rate is less than 3.5% on an annual basis, according to agenda documents.
Looking ahead
The company will be operating at the new facility by December 2026, according to agenda documents.
