City of San Antonio - File #: 19-4348

• File #: 19-4348
• Type: Resolution
• In control: City Council A Session
• On agenda: 5/30/2019
• Posting Language: Resolution designating the Toyota Motor Manufacturing, Texas, Inc. Reinvestment Zone consisting of a 1,766 acre tract of land being bounded on the north by Leon Creek, on the South by Medina River, on the east by Pleasanton Road, and on the west by Applewhite Road located in the City of San Antonio, Bexar County, Texas, being a portion of that 2,649 acre tract of land conveyed to Toyota Motor Manufacturing, Texas, Inc.
• Related files: 19-4346, 19-4347, 19-4349

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...