PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Discussion and possible action approving a Second Amendment to the contract with Continental Autonomous Mobility US, LLC. (Aumovio) to modify the employment condition, eliminate the “two-year rolling average” methodology, and provide alternate methods for measuring compliance.
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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 $110M and actively provides employment opportunities for up to 450 employees.
The New Braunfels Economic Development Corporation (NBEDC) supported this business relocation and entered into an economic development agreement with the company in July 2020. The NBEDC provided $4.7M of incentives to support this large-scale project - which significantly expanded CAM’s business enterprises. These incentives included: a land acquisition grant (NTE $3.3M), costs associated with the NBU sewer line extension to the project site (NTE $1.8M), and City building permit and Roadway Impact Fee reimbursements (NTE $270K). In exchange for the incentives, Continental agreed to meet/exceed employment and wage conditions on an annual basis.
The First Amendment to the agreement was executed in December 2020 and extended the deadlines for commencement of construction, operations, employment conditions, and wage condition schedules by one year.
The Second Amendment proposes the following changes:
(1) Revised schedule of minimum average numbers of Qualified Employees required for the Employment Condition to:
|
Calendar Year |
Minimum Number of Qualified Employees |
|
2025 |
365 |
|
2026 |
406 |
|
2027 |
555 |
|
2028 |
576 |
|
2029 |
576 |
|
2030 |
576 |
|
2031 |
576 |
|
2032 |
576 |
(2) Eliminating the “two-year rolling average” methodology for aggregating employee counts
(3) Providing alternate methods for measuring compliance within the Employment Condition for any given calendar year
If approved, this item will be considered by City Council on October 13, 2025.
ISSUE:
Continental is requesting a modification to the employment condition in the existing economic development contract. The new employment conditions would modify the full-time job requirements for 2025 - 2027, eliminate the “two-year rolling average”, and provide alternate methods for measuring compliance.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
There is no fiscal impact for approving the Second Amendment.
Recommendation
RECOMMENDATION:
Staff recommends approval of the Second Amendment to the contract with Continental Autonomous Mobility US, LLC.