The wheels are in motion for a significant Toyota plant expansion in San Antonio, with a recent city council vote approving an economic development incentive package for the automaker. Reported by the San Antonio Report, the city has agreed to hand over a package valued at more than $16.5 million. This comes on the heels of Bexar County commissioners' earlier decision to provide substantial tax abatements and a skills development grant to Toyota.
Toyota aims to strategically increase control over its manufacturing operations by moving a currently outsourced part of its process into the plant. It plans to construct a new 500,000-square-foot facility, a move that is set to create about 400 jobs in the region. "This potential investment and job growth demonstrates our steadfast commitment to job stability, long-term employment and reinvesting our profits into North America’s market and the success of our operational communities," Susann Kuzanas, president of Toyota Motor Manufacturing Texas (TMMTX), said in a statement obtained by the San Antonio Report.
The city’s package includes a 10-year agreement with a 65% tax abatement on designated properties and a $1 million grant to aid in infrastructure and site work for the project. Additionally, Toyota will be provided with significant fee waivers from the city and San Antonio Water System. The agreement stipulates an investment of just over $531 million by Toyota and the creation of 411 jobs by end of 2028, with a requirement that these jobs maintain a minimum hourly wage.
Toyota, a major employer in the area since 2006, has plans that reach beyond the factory gates. Recent city discussions revolve around creating an Industrial Compatibility Overlay District (ICOD) around the Toyota plant. Planning Department Assistant Director Rudy Niño noted, "The proposed overlay reflects 'undue influence' by Toyota on thousands of acres of land and is an effort by the city to comply with the controversial 2002 Starbright Agreement," according to his statement to the San Antonio Report. It has been stressed by officials that this proposal to clearly define industrial from residential zones, should in no way affect current landowners.
Despite the forward movement of these plans, the community has voiced concerns, particularly about the proposed ICOD. The Planning Commission has decided to delay a decision until additional public input can be garnered in July. "Their input was they thought that they were comfortable with that, and they said as long as there are some transitional [land] uses, that we’re not going to have a big subdivision hugging our property line, then we would have no concerns," Niño told the San Antonio Report, emphasizing Toyota's stance on the matter. The next review of the ICOD proposal is slated for the Planning Commission's June 26 meeting, with the City Council being the ultimate authority on zoning and planning outcomes.
