Cibolo City Council designated a 126-acre tract of land at 3641 Santa Clara Road as Reinvestment Zone No. 2 for a proposed distribution center project by a Fortune 500 company—dubbed Project Theo.
What we know
The distribution center project would use advanced robotics and other high-tech equipment. Project Theo would also have a minimum capital investment of $450 million and at least 425 full-time equivalent job positions above the median San Antonio-area salary, Rick Vasquez, Cibolo's director of planning and economic development, said.
The establishment of Reinvestment Zone No. 2 allows the city to enter into an incentive agreement with the yet-to-be-named company should Project Theo move forward.
The Fortune 500 company is also requesting a commercial-industrial tax abatement—a local agreement exempting all or part of the increase in the value of new property from taxation for a specific period, according to agenda documents.
The city’s first reinvestment zone was created for the manufacturer AISIN Texas Corporation, which is currently on an abatement schedule through 2041, agenda documents state.
The breakdown
According to agenda documents, the first 10 years of a Project Theo abatement deal would give 75% abatement, followed by five years of a 50% property tax rebate of the city’s maintenance and operations rate.
The project also requested a 50/50 split of sales tax receipts up to $5 million, another $2.5 million in investments. Additional incentives include infrastructure reimbursements and incentives from Guadalupe County, according to agenda documents.
Overall, the incentive package is approximately $32.5 million, with a proposed 30-year return on investment for the city reaching over $120 million.
Notable quote
Guadalupe County Precinct 4 Commissioner Stephen Germann said the project has been a collaborative effort between the city, Guadalupe County and Green Valley Special Utility District.
“This project will be a game-changer for Cibolo," Germann said. "It will be unsurpassed [with] what it will do."
