PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Presentation and update on the Continental expansion project
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: 4
BACKGROUND INFORMATION:
Continental Automotive Systems is a world-leading manufacturer of automotive technologies. The company started in 1871 in Hanover, Germany manufacturing soft rubber products and tires for carriages and bicycles. In 2019, the company invested significantly for the construction and rollout of its 205,000 square foot New Braunfels facility and employs over 400 with plans to employ more than 550 by 2027. Currently, the company has more than $171 million in taxable value at its New Braunfels facility.
On December 4, 2019, the New Braunfels Economic Development Corporation (NBEDC) voted to approve a $5,500,000 economic development incentive to Continental for the land acquisition, sewer facilities, building permits, and roadway impact fees associated with the facility. In December 2020, the existing economic development agreement was amended and extended one full year in response to the Covid-19 pandemic. The NBEDC reimbursed building permits and roadway impact fees in April 2021, provided the land acquisition reimbursement in July 2021, and reimbursed the sewer project in March 2023. By the term of the agreement (12/31/2032), Continental will employ a minimum of 576 employees with a minimum aggregate annual wage of $27,951,206.40.
At present, the New Braunfels facility is competing for an expansion project within Continental’s Americas footprint. This presentation will provide an update on this proposed project.
ISSUE:
Update and presentation on a proposed Continental expansion project.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
There is no fiscal impact for this item.
Recommendation
RECOMMENDATION:
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