DEPARTMENT: Economic Development
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: 3
SUBJECT:
A Resolution to nominate Avanzar Interior Technologies GP LLC ("Avanzar") as a Texas Enterprise Project.
SUMMARY:
This Resolution would nominate Avanzar as a Texas Enterprise Project. The Texas Enterprise Zone ("TEZ") is an economic development tool that allows local communities to partner with the State of Texas to encourage job creation and capital investment in economically distressed areas. If the State of Texas awards Avanzar a TEZ designation, Avanzar would be eligible to apply for State Sales and Use Tax refunds on qualified expenditures of up to $1.25 million over five years. This nomination has no fiscal impact to the City.
BACKGROUND INFORMATION:
Avanzar was founded on May 5, 2005 and is a local, minority owned, advanced manufacturing and automotive assembly company. Avanzar is headquartered at 1 Lone Star Pass Building 41, San Antonio, TX 78264 in Council District 3 and is the largest on-site supplier for Toyota Motors Manufacturing Texas ("TMMTX") providing complete assemblies and just-in-time manufacturing for TMMTX. Operating as a just-in-time supplier, the company keeps lower levels of inventory and finished goods on hand, which is managed through logistics and materials management systems. Avanzar provides interiors, doors, and upholstery for a specific truck within an hour of TMMTX's notification and as a tier 1 supplier for the complete seat systems, door systems and overhead systems, Avanzar manages 192 tier 2 and 3 supplier companies.
The company also has assembly facilities in Baja California Mexico and Guanajuato Mexico and employs 1,100+ globally of which 938 are employed at its San Antonio facility. These 938 San Antonio jobs average $50,567 annually and exceed the required minimum Living Wage and All Industry Wage standards. In 2005, Avanzar was provided a 10-year 100% abatement, valued at $1,661,901 in abated taxes ...
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