PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
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SUBJECT: Title
Presentation, public hearing, discussion, and possible action approving an economic development agreement with Continental Autonomous Mobility US, LLC. (Aumovio), 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 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).
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 support 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.
If approved, this item will be considered by City Council on October 13, 2025.
ISSUE:
Presentation and consideration 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 net fiscal impact after all incentives, including the $300,000 from the NBEDC, is $2.5M over 10 years.
Recommendation
RECOMMENDATION:
Staff recommends approval of the economic development agreement with Continental Autonomous Mobility US, LLC.