{"id":659,"date":"2026-06-18T17:31:55","date_gmt":"2026-06-18T17:31:55","guid":{"rendered":"https:\/\/sanantoniomovingreport.com\/?p=659"},"modified":"2026-06-18T17:31:55","modified_gmt":"2026-06-18T17:31:55","slug":"san-antonio-local-utilities-offer-185-2m-incentive-deal-for-toyota-expansion","status":"publish","type":"post","link":"https:\/\/sanantoniomovingreport.com\/?p=659","title":{"rendered":"San Antonio, local utilities offer $185.2M incentive deal for Toyota expansion"},"content":{"rendered":"
\n

The City of San Antonio and its local utilities are putting forward a $185.2 million offer to help lure Toyota\u2019s next big assembly line to San Antonio.<\/p>\n

Read more UTSA earns final accreditation after merging with UT Health San Antonio<\/a><\/p>\n

On Thursday, council members voted 11-0 to offer the Japanese car manufacturer a combination of tax incentives, grants, infrastructure funding and fee waivers to bring another vehicle assembly line to the South Side.<\/p>\n

The city-approved incentives total $147.8 million. The San Antonio Water System and CPS Energy would add $42.5 million in infrastructure support and savings on natural gas usage.<\/p>\n

\u201cWe\u2019re hopeful if San Antonio is selected, it will be another once-in-a-generation investment,\u201d said Toyota Texas President Frank Voss, who attended the meeting.<\/p>\n

It\u2019s not a done deal. Toyota has said it\u2019s considering other sites in the U.S. for its proposed $2 billion facility and the 2,000 jobs that accompany it, but if the company selects San Antonio, it would move quickly.<\/p>\n

During the presentation, Assistant City Manager Alex Lopez outlined a construction timeline that would start in September and end in mid-2030. The facility would be 2.5 million square feet and allow Toyota to produce 200,000 vehicles. It would be built to the east of Toyota\u2019s existing vehicle plant.\u00a0<\/p>\n

A complex incentive package<\/h4>\n

The city\u2019s incentive package is headlined by a 10-year, 100% tax abatement, meaning Toyota would not have to pay taxes on real or personal property between 2031 and 2041. City officials estimated the value of that incentive at around $88 million.<\/p>\n

It\u2019s not the only piece of the incentive puzzle, though. City council members also okayed $24.5 million for road improvements at the western entrance to Toyota\u2019s campus and for a new eastern entrance and highway connection.<\/p>\n

A $9 million grant is being set up to train workers, including new hires from the city\u2019s Ready to Work Program.<\/p>\n

The city will waive $500,000 in fees and is recommending CPS Energy include Toyota\u2019s new facility in its economic incentive program \u2014 a $16.2 million-valued benefit. SAWS will waive its own $4.5 million in fees.<\/p>\n

An additional $20 million in infrastructure support is being offered by both of the city-owned utilities.<\/p>\n

Toyota will have to meet a series of obligations on its end, including hiring 2,000 workers and paying them at least $32.46 an hour \u2014 the county\u2019s average annual wage. Workers might not be paid that much at face value, but the city will look at bonuses, overtime and shift differentials to calculate the total cash value of Toyota\u2019s pay to workers.<\/p>\n

Half of those workers must live in Bexar County. Toyota also has to use 10% of the money they save on the tax abatement for worker training, transportation or child care. Several approved worker training programs are laid out in the agreement between the city and the car manufacturer.\u00a0<\/p>\n

City staff projected the new assembly line to have a $3.2 billion economic impact during construction, based on the wages and spending generated between 2026 and 2030. The city could still generate $34.7 million in tax revenue from sales taxes<\/p>\n

Read more As independent candidates race to collect enough signatures, a national group is taking up their cause<\/a><\/p>\n

Given its $185.2 million-valued incentive package, the city and its utilities are spending roughly $92,628 per each new job created. Most of the incentives aren\u2019t money that the city will spend directly, though.<\/p>\n

\u201cMost of our share is not cash out the door, it is revenue we only forego once the $2 billion is actually built, and in return we gain a permanent expansion of our tax base and a forever revenue stream that continues long after these incentives have ended,\u201d said Councilwoman Ivalis Meza Gonzalez (D8).<\/p>\n

But the City of San Antonio is also in need of short-term revenue. A few minutes after approving Toyota\u2019s incentives, council members discussed short-term budget issues.<\/p>\n

\u201cWe are, as many know, navigating a budget deficit in which our revenues are not keeping pace with our expenses,\u201d said Councilman Jalen McKee-Rodriguez (D2).<\/p>\n

The incentives also come with strings attached. If Toyota doesn\u2019t meet its requirements, leaves or stops or slows production, the city can clawback its funds.<\/p>\n

It\u2019s part of a wider push from local officials to incentivize Toyota\u2019s expansion. The company also applied to a state program for a 25%, 10-year abatement for taxes that would be paid to Southwest Independent School District.<\/p>\n

That application is being considered by Gov. Greg Abbott, but already has the support of SWISD\u2019s school board.<\/p>\n

It\u2019s also not the first time Toyota has received incentives from local governments at its Southside facility. Most recently, Toyota signed an agreement to build its new rear axle plant across the street from its current vehicle assembly factory.<\/p>\n

East-west highway for the South Side<\/h4>\n

Part of the incentive package includes $20 million from the city to support a new eastern entrance and four-lane roadway connecting Toyota\u2019s campus to U.S. Highway 281, roughly two miles away. There\u2019s also $4.5 million designated for road improvements at the western entrances on Applewhite Road.<\/p>\n

That compliments a broader vision for a parkway through the South Side, connecting communities in the area that primarily has north-south running arterials between Loops 410 and 1604. It will also help with traffic congestion around Toyota\u2019s campus.<\/p>\n

\u201cThat\u2019s really important to help alleviate traffic on Zarzamora, which is near the western gate, and also the future plan that we\u2019re going to build out that parkway,\u201d said Councilman Edward Mungia (D4). \u201cThat\u2019s a step in the right direction.\u201d<\/p>\n

A finished parkway linking the South Side is still decades away, Mungia said, but the highway spur linking Toyota to U.S. 281 is an important first step and could help residents around Toyota with easier highway access and reduced traffic from large trucks leaving and entering the facility.<\/p>\n

Read more San Antonio inches closer to buying property for Spurs arena as it prepares to talk with team owners<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Toyota is considering San Antonio for a new $2 billion vehicle assembly plant that would bring 2,000 new jobs.<\/p>\n","protected":false},"author":1,"featured_media":658,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-659","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-interesting"],"yoast_head":"\nSan Antonio, local utilities offer $185.2M incentive deal for Toyota expansion - San Antonio moving report<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sanantoniomovingreport.com\/?p=659\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"San Antonio, local utilities offer $185.2M incentive deal for Toyota expansion - 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