Toyota is planning to make a hefty new investment in its San Antonio plant, to the tune of $531.7 million.
The investment came to light in documents prepared for County Commissioners, who met Tuesday to discuss potential new incentives in exchange for the automaker’s proposed investment.
Commissioners gave unanimous approval for discussions to move forward.
“Creating new jobs, growing our economy is a key priority,” said County Judge Peter Sakai. “Toyota is a trusted corporate partner in our community. And I am optimistic about these negotiations.”
Sakai recently traveled with other county leaders to Japan to meet with businesses involved in advanced manufacturing, with a particular focus on “vehicle and related production,” according to county documents.
Commissioner Justin Rodriguez (Pct. 2) thanked county staff for working on the incentive package. “It sounds like maybe there was a fortuitous trip recently, so hopefully this bears fruit and we look forward to being supportive.”
Toyota plans to build a new facility and possibly expand its existing plant, increasing its size by more than 500,000 square feet. The company estimates the facility would bring 411 new jobs with a base hourly wage of $20.54, and an average annual salary of $68,245.
With a green light from commissioners, county officials will be able to negotiate an economic development incentive package for Toyota valued at over $14 million.
The incentive package would include a 10-year, 100% abatement of real and personal property investments, and a skill development grant of up to $250,000 (or $1,000 per job created within the first two years of operation).
“We want to continue to support the growth and expansion of our local businesses, and I’m really excited that Toyota has the possible opportunity to expand and provide some better jobs for Bexar County constituents,” said Commissioner Rebeca Clay-Flores (Pct. 1).
Toyota North America spokeswoman Kelly Stefanich confirmed the company’s expansion plans, but said she had “nothing to announce” at this time.
“We are constantly evaluating our competitiveness and making decisions to support the potential for continued investments across our North American operations, helping to ensure our promise of long-term employment stability,” Stefanich said. “We are always looking for ways to better meet our customers’ needs and produce where we sell.”
Growth of Toyota and more
Toyota opened its $2.1 billion Southside facility in 2006, supported at the time by economic development incentives from the city, county and state, in the form of tax abatements and grants said to be valued at $133 million.
Since then, the plant has helped attract dozens of supplier companies and other major equipment and vehicle manufacturers, including Navistar, Aisin AW and JCB, bringing more jobs and tax revenue to the region.
In 2010 and 2019, the City of San Antonio and Bexar County each provided additional incentives when the company proposed investing millions to expand the plant, first for a Tacoma production line and later to grow the facility.
Greater:SATX President and CEO Jenna Saucedo-Herrera said she could not comment on Toyota’s latest plans due to a nondisclosure agreement, but sent a statement via email.
“Since Toyota Motor Manufacturing Texas first established its operations in our San Antonio community more than 20 years ago, we have been firmly committed to supporting their continued growth and success here,” she stated.
“As the company considers yet another expansion in San Antonio, our team remains steadfast in our commitment to support Toyota Motor Manufacturing Texas and the thousands of San Antonians that they employ in high-wage, highly skilled manufacturing careers.”
On Friday, Saucedo-Herrera told the Report that it’s going to be a good year for economic development in San Antonio — on par with last year when equipment maker JCB chose San Antonio to plant its new $266 million facility.
“We are right now shortlisted for a couple of deals actually around the size and scale of JCB, from a capital investment and jobs perspective,” she said.
Of the 75 companies in the economic development nonprofit’s pipeline, there are two that have risen to the top. One is a global industrial company and the other is office-based, she said.
“I wouldn’t be surprised if we’re able to make some of these announcements this quarter,” she said.
On Tuesday, the San Antonio Zoning Commission will consider a request from the city to rezone almost 20,000 acres of property located within two miles of the Toyota plant, adding the “ICOD-1,” industrial compatibility overlay district to the existing base and overlay zoning districts in the area.
A staff report stated the reason for the zoning overlay is “to limit potential health, safety, and welfare conflicts between heavy industrial uses and surrounding commercial and residential uses.”
Correction: This story has been updated to correctly state how many jobs Toyota estimates the expansion will bring in.
