Development
BY AMIRA VAN LEEUWEN
Expansion OK’d for Aumovio facility
Explained
The council approved an amendment to consolidate the initial incentive structure of the Chapter 380 Economic Development Agreement into a Chapter 312 tax abatement. A Chapter 380 Economic Development Agree- ment gives municipalities the authority to oer loans and grants of city funds or services at little or no cost. This helps to promote state and local economic development and to stimulate busi- ness and commercial activity, according to the Texas Comptroller’s website. A Chapter 312 tax abatement is an agreement between a taxpayer and a taxing unit that exempts increases in the value of the property from taxation for up to 10 years. Tax abatements are an economic development tool available to cities, counties and special districts to encourage the retention and devel- opment of existing businesses through property tax exemptions or reductions, the Texas Comp- troller’s website states.
Continental Automotive Systems is expanding its New Braunfels manufacturing facility. New Braunfels City Council approved an economic development agreement with Aumovio—formerly known as Continental Automotive Systems—on Oct. 13 for a 65,000-square-foot manufacturing facility at 440 Kohlenberg Road. The expansion project—dubbed Project Nemo—represents an estimated $110 million in new capital investment, according to a news release. Continental opened its 215,000-square- foot New Braunfels manufacturing location in Fall 2022, representing a $171 million taxable value in 2024. The company’s continued growth has also made it one of New Braunfels’ largest high-tech employers, with an annual payroll range of
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$35.9-$42.1 million, according to a news release. Under the approved agreement, the city will provide a 65% property tax abatement on the new expansion for 10 years. The New Braunfels Economic Development Corporation, or NBEDC, will also provide a rebate on building and impact fees, which will be nalized at a later time, the release states.
What else?
“We are proud to partner with a global leader in advanced manufacturing as they expand their operations here.” JEFF JEWELL, NEW BRAUNFELS ECONOMIC DEVELOPMENT DIRECTOR
expansion will bring high-paying jobs and solidify New Braunfels as a hub for automotive innovation. Since the expansion project has been approved, along with the proposed incentives, construction is anticipated to begin no later than June 30, 2026, according to a September 30 NBEDC meeting presentation.
The project follows a reinvestment zone designation approved by the council in November 2024. This designation is a required step for property tax abatements under state law, and will allow Comal County to approve a similar agreement, the release states. Je Jewell, the city’s economic and community development director, said Aumovio’s
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