The City of San Antonio is attempting to secure a $2 billion expansion of the Toyota plant with a $142.8 million incentive package. The San Antonio City Council will vote on $122.1 million worth of tax breaks, job training grants, fee waivers, and infrastructure improvements, as well as recommending another $20.7 million in assistance from the city’s power and water utilities.

Incentives and Job Creation

In return for the incentives, Toyota would create 2,000 full-time jobs with a minimum annual wage of $67,472, which is the county’s average annual wage. The company would also be required to spend money on training, transportation, or childcare for employees. Belinda Román, an associate professor of economics at St. Mary’s University, believes the city can afford the investment, citing the potential long-term growth and benefits to the local economy.

The city’s proposed incentives include endorsing Toyota for a CPS Energy program that could reduce the company’s electric rates by $16.3 million and recommending it for $4.5 million in San Antonio Water System fee waivers. Additionally, San Antonio is expected to nominate Toyota for a Texas Enterprise Zone (TEZ) ‘Triple Jumbo’ project, which could allow it to receive up to $3.75 million in state sales and use tax refunds.

Competition and Decision

Toyota is currently deciding where to place a new vehicle assembly line in a highly competitive selection process. The company has not disclosed what model the new line would produce or what other locations it is considering. Bexar County is also scheduled to discuss its own 10-year, $55.3 million tax break proposal, and Southwest Independent School District has expressed support for a break on Toyota’s property tax bill.

Original reporting: San Antonio, TX News (HLL/CB) — read the source article.