DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: District 3, City-Wide
SUBJECT:
Arvin Sango, Inc. Tax Abatement Agreement
SUMMARY:
Staff is recommending City Council consider the following items related to the ASI project: (A) A Public Hearing and Ordinance designating the Arvin Sango Reinvestment Zone located near the intersections of Watson Road, Applewhite Road, and 1 Lone Star Pass, on a leased 3.038 acre site in the Toyota Supplier Park located in City Council District 3; and (B) An Ordinance approving a 10-year, 100% Tax Abatement Agreement with ASI on its planned investment of approximately $16.6 million in real and personal property improvements, and the creation of at least 45 new full-time jobs.
BACKGROUND INFORMATION:
ASI is a Toyota Tacoma supplier for exhaust equipment seeking to establish a manufacturing facility to supply parts to Toyota Motor Manufacturing, Texas (TMMTX). ASI was formed 27 years ago in Madison, Indiana, as a joint venture between Arvin Industries (USA) and Sango Company (Japan) to manufacture exhaust parts for Toyota. The company was a 50/50 joint venture until 2011, when ownership changed to 100% owned by Sango. ASI has been successful as a Toyota supplier beginning with sales of $3 million in 1988. ASI had nearly $850 million in sales in 2013. Presently, ASI produces exhausts for the Camry, Corolla, and Tacoma models. There are five ASI plants in the United States and one wholly-owned subsidiary in Canada. The San Antonio plant will be ASI's sixth plant in the United States. ASI has approximately 895 employees in its present six ASI facilities located in Indiana, Tennessee, and Canada.
ASI is considering a site at the Toyota Supplier Park located in Council District 3 for an initial investment of approximately $16.6 million and the creation of at least 45 new full-time jobs. ASI will invest approximately $7.3 million in real prope...
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