PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Approval of a resolution recommended by the New Braunfels Economic Development Corporation approving an economic development agreement with Continental Autonomous Mobility US, LLC., for a project expenditure, of up to $300,000, pursuant to Section 501.101 of the Texas Local Government Code.
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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 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. 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). Since that time, the Company has maintained more than $140 million on local tax rolls and employed approximately 400 full-time 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.
To provide additional incentive for this expansion project, and to provide similar assistance to Continental’s initial project, the NBEDC is considering funding to reimburse construction fee waivers and roadway impact fees in an amount up to $300,000.
The New Braunfels Economic Development Corporation approved this item unanimously at its September 30, 2025 meeting.
ISSUE:
Approval of an economic development agreement 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 economic development agreement with Continental Autonomous Mobility US, LLC.