city of San Antonio


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File #: 19-7957   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 10/31/2019
Posting Language: Ordinance designating the Navistar Reinvestment Zone located at 15770 S US Highway 281 and consisting of 426 acres of land situated on the City’s South Side, bounded by Mitchell Lake from the Southeast and US Highway 281 from the west, as more particularly described in the metes and bounds map on file with the Office of the City Clerk.
Attachments: 1. Chapter 380 Agreement, 2. E16 Program Agreement, 3. Tax Abatement Agreement, 4. Draft Ordinance - Part A, 5. Draft Ordinance - Part B, 6. Draft Ordinance - Part C, 7. Draft Resolution - Part D, 8. Contract Disclosure Form, 9. Ordinance 2019-10-31-0891
Related files: 19-7958, 19-7959, 19-7290, 19-7960
DEPARTMENT: Economic Development


DEPARTMENT HEAD: Alejandra Lopez


COUNCIL DISTRICTS IMPACTED: 3


SUBJECT:

A public hearing and City Council consideration of ordinances designating the Navistar Reinvestment Zone, approving a 10-year, 100%, real and personal property tax abatement agreement, authorizing a Chapter 380 Economic Development Incentive Fund (EDIF) grant agreement, authorizing City and SAWS impact fee waivers, authorizing a CPS Energy E16 Economic Development Incentive Rate Rider (E16 Rider) agreement, and a resolution nominating Navistar for designation as a Texas Enterprise Zone Project.


SUMMARY:

The following items relate to a potential Navistar production facility in San Antonio: (A) a public hearing and an Ordinance designating the Navistar Reinvestment Zone located at 15770 S US Highway 281 in City Council District 3; (B) an Ordinance approving a 10-year, 100% Tax Abatement Agreement on real and personal property based on a capital investment of at least $235 million over four years and the exclusive use of CPS Energy and San Antonio Water Systems for 16 years; (C) an Ordinance authorizing a Chapter 380 Economic Development Fund (EDIF) grant agreement with Navistar for up to $750,000, restricted to costs associated with water infrastructure improvements, City development fee waivers up to $200,000 and SAWS impact fee waivers up to $300,000, and approving an agreement with Navistar to participate in the CPS Energy E16 Economic Development Incentive Rate Rider (E16 Rider) Program; and (D) a Resolution nominating Navistar for designation as a Texas Enterprise Zone Project.


BACKGROUND INFORMATION:

Founded in 1902 as the International Harvester Company, Navistar is a publicly-traded, multinational commercial truck manufacturer headquartered in Lisle, Illinois, in the Chicago metro area. Today, Navistar employs 14,000 people worldwide, and its products, parts, and service are sold throughout a network of nearly 1,000 dealer outlets in f...

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