PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Public hearing, discussion, and possible action approving a tax abatement agreement with applicant and property owner Continental Autonomous Mobility US, LLC.
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DEPARTMENT: Economic and Community Development
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COUNCIL DISTRICTS IMPACTED: 4
BACKGROUND INFORMATION:
Continental Autonomous Mobility US, LLC (formerly Continental Automotive Systems, Inc.) , herein referred to as “CAM”, develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. Continental opened its 215,000 square-foot New Braunfels manufacturing location in Fall 2022 after an initial investment of $110 million and provides employment opportunities for up to 450 employees. As of July 2025, the Comal Appraisal District values Continental (property, improvements, and business personal property) at $157,765,460. In 2024, Continental contributed $479,651.05 to the City of New Braunfels’ tax base.
Project Overview
The planned business expansion project would add approximately 65,000 square feet onto the existing structure and invest approximately $110,000,000 cumulatively business personal property. The expansion project will allow for additional manufacturing and research space to expand the existing CAM product line.
Proposed Tax Abatement
To encourage the expansion of Continental, staff are proposing a 10-year tax abatement agreement in which the City would abate 65% of the property value each year. The proposed abatement would only apply to the new value added for the expansion project.
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Proposed Tax Abatement Schedule |
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Year |
Percent Abated |
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By 1/1/2027 (Year 1) |
65% |
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2 |
65% |
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3 |
65% |
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4 |
65% |
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5 |
65% |
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6 |
65% |
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7 |
65% |
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8 |
65% |
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9 |
65% |
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10 |
65% |
In exchange for the 10-year, 65% tax abatement, Continental will commit to the following performance obligations:
(1) CAM intends to commence construction of their expansion no later than June 30, 2026
(2) CAM will maintain the following employment requirements for the New Braunfels location throughout the term of the agreement:
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Job and Wage Creation |
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Period |
Minimum Full-time Employees |
Minimum Annual Payroll |
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1st Abatement Year |
576 |
$35,919,936 |
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2nd Abatement Year |
595 |
$37,104,795 |
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3rd Abatement Year |
640 |
$39,911,040 |
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4th Abatement Year |
658 |
$41,033,538 |
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5th - 10th Abatement Years |
676 |
$42,156,036 |
Local Hiring Goal
CAM will use commercially reasonable efforts to ensure that no less than twenty percent (20%) of the qualified full-time employees are residents of Comal or Guadalupe counties.
Abatement Protocol
All required procedures were followed before bringing this tax abatement to City Council for consideration. The proposed expansion project is located within New Braunfels Reinvestment Zone No. 2024-01, the New Braunfels Economic Development Corporation supports the abatement and has provided a resolution of support, and public notice was published on September 12, 2025 in the New Braunfels Herald-Zeitung a total of 31 days before City Council’s public hearing on October 13, 2025.
ISSUE:
Consideration of a 10-year tax abatement with Continental Autonomous Mobility US, LLC.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
The Company’s expansion project, after the tax abatement and NBEDC incentive, will net the City more than $2,500,000 in revenues over a ten year period. The project directly supports 100 jobs with an estimation of an additional 100 jobs indirectly supported by the project in the community.
Recommendation
RECOMMENDATION:
Staff recommends approval of the tax abatement agreement with Continental Autonomous Mobility US, LLC. The NBEDC also voted on September 30, 2025 to approve a resolution of support for adoption of the tax abatement for the expansion project.