Government
BY THOMAS LEFFLER
The city of Cibolo is in the final stages of potentially landing a major economic driver. Cibolo City Council designated a 126-acre tract of land at 3641 Santa Clara Road as Reinvestment Zone No. 2 for a proposed distribution center project by a Fortune 500 company—dubbed Project Theo. A Fortune 500 company is an annual list of the Top 500 U.S. corporations by revenue. The distribution center would use advanced robotics and other high-tech equipment. Project Theo would require a minimum capital investment of $450 million and at least 425 full-time equivalent jobs above the median San Antonio-area salary, said Rick Vasquez, Cibolo director of planning and economic development. The zone’s establishment allows Cibolo to enter into an incentive agreement with the company, should Project Theo move forward. $32.5M incentive OK’d for Fortune 500 company
The breakdown
The Fortune 500 company is also requesting a commercial-industrial tax abatement—a local agreement exempting all or part of the increase in the value of new property from taxation for a specific period, according to agenda documents. The first 10 years of a Project Theo abatement deal would give 75% abatement, followed by five years of a 50% property tax rebate of the city’s maintenance and operations rate, agenda docu- ments state. The project also requested a 50/50 split of sales tax receipts up to $5 million , another $2.5 million in investments. Additional incentives include infrastructure reimbursements and incentives from Guadalupe County, according to agenda documents. Overall, the incentive package is approximately $32.5 million , with a proposed 30-year return on investment for the city reaching over $120 million .
Project Theo’s return on investment The proposed project would bring over $100 million to the city.
Revenue to city
$125M
$100M
$75M
$50M
$25M
$0M
10 years
20 years 30 years
SOURCE: CITY OF CIBOLO/COMMUNITY IMPACT
Before you go
Guadalupe County Precinct 4 Commissioner Stephen Germann said the project has been a collaborative effort between the city, Guadalupe County and Green Valley Special Utility District. The company will have to decide whether to move forward with the incentive package. Until then, the company’s name is unknown as of press time.
“This project will be a game- changer for Cibolo. It will be unsurpassed [with] what it will do.”
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Project Theo
STEPHEN GERMANN, GUADALUPE COUNTY PRECINCT 4 COMMISSIONER
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