Toyota has announced a substantial investment into its manufacturing operations on San Antonio’s southside. The San Antonio City Council approved an incentive package crucial to securing this expansion. Toyota’s investments in San Antonio began over 20 years ago, and this new investment will bring hundreds of additional well-paying jobs and over $500 million in capital investment to the city.
“Toyota has paved the way for other major advanced manufacturing investments,” said Mayor Ron Nirenberg. “These developments further cement the understanding that doing business in San Antonio is good and that we have the people with the skills and talents to meet a company’s needs.”
The incentive package reinvests a portion of the new City property taxes from Toyota’s nearly $532 million investment into public infrastructure near the plant. This approach focuses on sustainable growth.
“It was important that any support provided by the City for this project take into consideration the infrastructure needs on the Southside,” City Manager Erik Walsh said. “Collecting these taxes and focusing resources on public infrastructure demonstrates our shared commitment to sustainable growth in this area.”
Incentive Package Details
10-year, 65 percent Chapter 312 tax abatement on real and personal property improvements, valued at $14,717,102.
Thirty-five percent of the real and personal property tax assessed on the project over ten years (estimated at $7,924,000) will be used to enhance public infrastructure.
Chapter 380 Economic Development Incentive Fund (EDIF) grant of up to $1,000,000 for project-related costs.
Waiver of up to $300,000 in SAWS impact fees and up to $500,000 in City development fees.
Nomination as a Texas Enterprise Zone Project, potentially relating to $2,055,000 in state sales and use taxes.
Councilmember Phyllis Viagran thanked Toyota for considering San Antonio, particularly the Southside, for this expansion. “The commitment to bringing more well-paying jobs and over $531 million in investment to the Southside shows that our workforce has proven its value to the automotive industry worldwide.”
The expansion of Toyota’s operations in San Antonio is a significant milestone. It showcases the city’s ability to attract and support major manufacturing investments and reinforces its position as a key player in the global automotive industry.
