city of San Antonio


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File #: 21-4013   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 6/17/2021
Posting Language: Ordinance approving a five-year Chapter 380 economic development grant agreement with ElringKlinger USA, Inc. [Alejandra Lopez; Assistant City Manager and Interim Director, Economic Development]
Attachments: 1. Contract Disclosure Form, 2. Draft Ordinance, 3. Agreement - Final, signed version
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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DEPARTMENT: Economic Development


DEPARTMENT HEAD: Alejandra Lopez?


COUNCIL DISTRICTS IMPACTED: District 2


SUBJECT:

City Council consideration of an ordinance authorizing a five-year Chapter 380 economic development grant agreement with ElringKlinger USA, Inc.


SUMMARY:

This ordinance authorizes a five-year Chapter 380 economic development grant agreement with an estimated amount of $198,564, based on a capital investment of at least $16,840,000 and the creation of 52 new, full-time jobs at the project site.


BACKGROUND INFORMATION:

Founded in 1879, ElringKlinger AG is an international automotive supplier headquartered in Dettingen an der Erms, Germany, that employs over 10,000 people worldwide. ElringKlinger USA, Inc (ElringKlinger) is the U.S.-based branch of the company, which employs 800 people at manufacturing facilities in Buford, GA, Fremont, CA, Fort Wayne, IN, and Southfield, MI.

ElringKlinger is considering the development of a new advanced manufacturing facility focused on plastic injection molding to create lightweight automobile parts, to be located at 4222 IH-35 North in City Council District 2. The facility will support ElringKlinger's supplier relationship with a leading electric car and battery company. To establish the facility, ElringKlinger will invest or cause to be invested $1,940,000 in real property improvements and $14,900,000 in personal property improvements for a total of $16,840,000 in capital improvements over a two-year period.

The project will create 52 new, full time jobs over four years, including production worker, engineering, and technician jobs, with an average wage of $50,163. At least 16 of the 52 jobs (30%) will make an annual salary of at least $50,000 exclusive of benefits, bonuses and other non-guaranteed pay. At least 85% of the jobs must exceed the City's All Industry Wage ($17.37) and 100% of the jobs must exceed the Living Wage ($12.74) requirements.

The company will also collaborate with...

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