Bexar County Commissioners Court is in the process of negotiating a $15 million tax incentive package with H-E-B for the expansion of its facility on San Antonio’s East Side. The San Antonio-based grocery chain plans to invest $700 million into the project, which is expected to create 720 new jobs at its existing supply and logistics campus on Foster Road.
Local Economic Impact
H-E-B’s proposed expansion includes the development of a new bakery, refrigerated warehouse, trailer return center, and manufacturing facilities. The company aims to create a total of 1,232 full-time jobs by 2038. This expansion builds on H-E-B’s previous investments at the site, including a 1.6-million-square-foot regional warehouse constructed in 2018 and an additional plant added in 2024.
County commissioners have moved forward with the incentive process, despite some wages not meeting county guidelines for tax abatements. The base wage for sanitation workers will start at $18.23 an hour, below the county’s guideline of $20.18 an hour or 70% of employees earning $21.34 an hour. However, H-E-B’s average wages are expected to meet county requirements, with potential earnings up to $30 an hour and an average annual salary of nearly $53,000.
Community and Economic Considerations
H-E-B has chosen not to outsource sanitation jobs, allowing workers to benefit from the company’s comprehensive benefits package, which includes medical, dental, vision, paid time off, and a 401(k) plan. The company’s local roots and ongoing economic and philanthropic contributions to San Antonio were highlighted by county commissioners as key reasons for supporting the incentive package.
Commissioner Justin Rodriguez emphasized the importance of investing in companies like H-E-B that are committed to the local community. Bexar County Judge Peter Sakai praised H-E-B’s response to natural disasters in Texas, while Commissioner Grant Moody noted the value of the benefits offered by H-E-B, suggesting that wage guidelines should not be the sole consideration.
The Economic Development Department is negotiating a 10-year, 85% tax abatement on H-E-B’s real and personal property investments at the site, valued at over $15 million. While the negotiations have received unanimous approval, Commissioner Rebeca Clay-Flores advocated for more grocery stores and product availability in the southern sector of Bexar County.
Original reporting: San Antonio Report — read the source article.
