City of San Antonio - File #: 16-5617

• File #: 16-5617
• Type: Resolution
• In control: City Council A Session
• On agenda: 11/10/2016
• Posting Language: A Resolution nominating Whataburger Restaurants LLC for consideration and designation as a State Enterprise Project qualifying the company for a potential refund of up to $1,250,000 over 5 years in state sales and use taxes based on a project investment exceeding $5 million, the creation of 20 new full-time jobs, and retention of 644 jobs. [Carlos Contreras, Assistant City Manager; Rene Dominguez, Director, Economic Development]

Date	Ver.	Action By	Action	Result
11/10/2016	1	City Council A Session	approved	Pass

DEPARTMENT: Economic Development


DEPARTMENT HEAD: Rene Dominguez


COUNCIL DISTRICTS IMPACTED: 1


SUBJECT:

City Council consideration of the Nomination of Whataburger Restaurants LLC as a Texas Enterprise Project.


SUMMARY:

Staff is requesting City Council action on a Resolution nominating Whataburger Restaurants LLC ("Whataburger") for designation as a Texas Enterprise Project. The Texas Enterprise Zone Project (TEZ) is designed for local communities to partner with the State of Texas to promote job creation and significant private investment in economically distressed areas of the state. The TEZ designation will allow Whataburger a potential refund of state sales and use taxes on qualified expenditures of up to $1.25 million over 5 years based on its capital investment and meeting any state workforce requirements.


BACKGROUND INFORMATION:

Whataburger, founded in 1950 and headquartered in San Antonio, Texas since 2009, is part of a group of family-owned companies that operate over 790 restaurants supporting 37,000 employees across the country, with locations in 267 communities in Texas alone. With annual revenue of over $1 Billion, Whataburger provides services to over 340 communities in 10 states. Whataburger currently employs over 660 people at its San Antonio headquarters campus at 300 Concord Plaza, San Antonio, Texas 78216 (Council District 1). Whataburger's headquarters campus serves as the operational hub for the company and houses various service support departments such as accounting and finance, scheduling, human resources, and customer service.

In order for the headquarters expansion to qualify for designation as a Texas Enterprise Project, the company must: (-1-) make a capital investment of at least $5,000,000; (-2-) commit that they will meet any state workforce requirements of hiring economically disadvantaged persons, Veterans, or enterprise zone residents to receive a state sales and use tax benefit; and (-3-) receive a nomination ...