City’s Support Helps Secure Toyota’s Expansion

Published on June 21, 2024

SAN ANTONIO (June 21, 2024) – Today, Toyota announced a substantial investment into its manufacturing operations on San Antonio’s southside. Yesterday, the San Antonio City Council approved an incentive package that helped secure this expansion.Toyota’s investments in San Antonio began over 20 years ago and this new investment will bring hundreds of additional well-paying jobs and over $500 million in capital investment to San Antonio.   

“Toyota has paved the way for other major advanced manufacturing investments, including major investments by Navistar and JCB, which we welcomed to the Southside earlier this year,” said Mayor Ron Nirenberg. “All of these developments further cement the understanding around our state, our country, and the world, that doing business in San Antonio is good, and that most importantly, we have the people here with the skills and talents to meet a company’s needs.”

The incentive package approved by City Council reinvests a portion of the new City property taxes from Toyota’s nearly $532 million investment into public infrastructure near the plant. This is a new approach to economic development incentives. 

“It was important that any support provided by the City for this project take into consideration the infrastructure needs on the Southside,” City Manager Erik Walsh said. “While the company’s considerable investment and job creation qualified this project for a larger tax abatement, collecting these taxes and focusing resources on public infrastructure demonstrates our shared commitment to sustainable growth in this area.”

The incentive package includes: 

• A 10-year, 65 percent Chapter 312 tax abatement on real and personal property improvements with an estimated value of $14,717,102;
  • Committed to provide the equivalent of 35 percent of the real and personal property tax assessed on the project over 10 years (estimated at $7,924,000) to enhance public infrastructure associated with the company’s operations.
  • This infrastructure would include ingress/egress for suppliers, employees, and distribution of product, as well as overall connectivity with major thoroughfares and highways in the immediate vicinity of the manufacturing plant;
• A Chapter 380 Economic Development Incentive Fund (EDIF) grant of up to $1,000,000 dedicated to reimbursement for project-related costs such as site development;
• Waiver of up to $300,000 in San Antonio Water Systems (SAWS) impact fees and up to $500,000 in City development fees associated with this expansion; 
• Nomination as a Texas Enterprise Zone Project, which if approved by the State of Texas would rebate up to $2,055,000 in state sales and use taxes, based on Toyota’s investment and job creation.

In December 2022, City Council approved an updated incentive policy to pursue economic development projects effectively and efficiently. This expansion opportunity required an expeditious and creative approach to meet Toyota’s needs, which the incentive policy facilitated. 

“As the District 3 Councilmember and a member of the Economic and Workforce Development Committee, I want to thank Toyota for considering San Antonio and, in particular, our city’s Southside for this manufacturing expansion,” said Councilmember Phyllis Viagran. “The commitment to potentially bringing more well-paying production jobs and over $531 million in investment to the Southside shows that our workforce has proven its value to the automotive industry worldwide.”

The City prioritizes identifying and pursing projects such as this one to bring companies large and small to our city to benefit residents now and in the future. Opportunities like this serve as a commitment between the City and private sector to collaborate in fostering greater economic mobility in San Antonio.