PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Discussion and possible action approving a resolution of support for a proposed tax abatement between the City of New Braunfels and Continental Autonomous Mobility US, LLC. (Aumovio)
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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.
The New Braunfels Economic Development Corporation (NBEDC) has 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. 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 Continental location is competing for an expansion project which would require an additional 65,000 square feet of manufacturing space, would employ an additional 100 jobs, and add an additional $100M of appraised value to the site. To encourage the expansion project, the City of New Braunfels is considering a 10-year tax abatement in which 65% of the property value would be abated each year.
The City of New Braunfels has an active tax abatement policy in place that was approved by the City Council on July 28, 2025. A required step of the tax abatement process is to seek review and recommendation from the NBEDC before the abatement may be considered by City Council. The NBEDC is dedicated to supporting business development efforts and opportunities to increase full-time employment availability in the City of New Braunfels.
ISSUE:
Address the formal support of the proposed tax abatement to Continental Autonomous Mobility, US, LLC.
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
FISCAL IMPACT:
Approving the resolution of support does not have any fiscal impact.
Recommendation
RECOMMENDATION:
Staff recommends approval of the resolution of support.