city of San Antonio


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File #: 19-7956   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 10/31/2019
Posting Language: Ordinance approving City fee waivers in the amount of $150,000.00 and SAWS impact fee waivers in the estimated amount of $300,000.00 for the CAPLINK, USA, Inc./FGF, LLC food manufacturing expansion project with an estimated investment of $129,500,000.00 in real and personal property improvements.
Attachments: 1. CAPLINK.FGF.Agreement.10.21.19, 2. Draft Ordinance A, 3. Draft Ordinance B, 4. Ordinance 2019-10-31-0890
Related files: 19-7585, 19-7955
DEPARTMENT: Economic Development


DEPARTMENT HEAD: Alejandra Lopez


COUNCIL DISTRICTS IMPACTED: 5 & 6


SUBJECT:

City Council consideration on an agreement with CAPLINK, USA, Inc., and FGF, LLC, including a 10-year, 100% Upskill Project Tax Abatement, Chapter 380 Economic Development Incentive Fund (EDIF) Grant, and authorization of City and SAWS fee waivers.

SUMMARY:

This ordinance authorizes an agreement with CAPLINK, USA, Inc., and FGF, LLC, for: (A) a 10-year, 100% Upskill Project Tax Abatement valued at $4.5 million, including a $500,000 Workforce Development Training Grant and (B) City fee waivers in the amount of $150,000, and SAWS fee waivers in the amount of $300,000.

BACKGROUND INFORMATION:

FGF Brands is a privately-held baked goods manufacturer headquartered in Toronto, Canada with a total global workforce of 2,400. In 2018, FGF Brands acquired Hill Country Bakery, now known as FGF Brands, Texas. Founded in 1997 and based in San Antonio, Hill Country Bakery, LLC, produced and supplied baked goods for clients across North America.

With the acquisition of Hill Country Bakery, FGF Brands is considering investing in a new business campus equipped with state-of-the-art manufacturing technology and a U.S. Headquarters based in San Antonio to better serve its U.S. client-base. FGF Brands currently employs 328 people at the company's existing manufacturing operations located at 122 Stribling St. in Council District 5. For the new project, CAPLINK, USA, Inc. will own the land and building (real property and improvements) and FGF, LLC will own the machinery and equipment (personal property) and will is responsible for bakery operations to include overseeing employees. The companies have selected 6245 State Hwy 151 in Council District 6 as the site for a new $129,500,000 business campus and bakery adding 600 new jobs over ten years.

CAPLINK, USA, Inc., and FGF, LLC have committed to hiring 35% of the project workforce from targeted populations whic...

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