DEPARTMENT: Economic Development
DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICT IMPACTED: 3
SUBJECT:
Consideration of three items related to the potential expansion of Toyota Motor Manufacturing, Texas, Inc. (TMMTX) for a capital investment of at least $391.8 million, and a $1 million contribution to educational and workforce development initiatives.
SUMMARY:
Staff is requesting City Council approval of the following items relating to TMMTX, with respect to potentially upgrading the company's San Antonio manufacturing plant into a state of the art facility:
(A) An Ordinance authorizing a Chapter 380 Economic Development Fund (EDIF) grant agreement with TMMTX for up to $621,000, restricted to costs associated with water infrastructure improvements;
(B) A public hearing and an Ordinance designating the TMMTX Reinvestment Zone located at 1 Lone Star Pass in City Council District 3; and
(C) An Ordinance approving an 8-year, 100%, Chapter 312 ad valorem real and personal property tax abatement agreement, based on a capital investment of at least $391.8 million over three years ($347.8 million personal property, $44 million real property), the exclusive use of CPS Energy and San Antonio Water Systems for 14 years, and a $1 million contribution over five years to educational and workforce development initiatives.
BACKGROUND INFORMATION:
Founded in 1937, Toyota Motor Corporation (Toyota) is a publicly-traded, multinational automotive manufacturer headquartered in Toyota City, Aichi Prefecture, Japan. Toyota has a global workforce of 364,445 and as of September 2018, was the sixth-largest company in the world by revenue.
In 2003, TMMTX, a subsidiary of Toyota, established its manufacturing plant in San Antonio by investing $2.1 billion to manufacture Toyota Tundra trucks. The local community rallied in support of TMMTX's decision to locate in San Antonio. In lieu of a tax abatement, the City formed the Starbright Industrial Development Corporation and fi...
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