New Braunfels Edition | July 2025

Government

BY AMIRA VAN LEEUWEN

NBEDC considers incentives for Canada-based manufacturer

The city of New Braunfels is being considered as a site for the expansion of Canadian-based manufacturing company Leo USA, Inc. Leo Plastics was founded in 1957 and began operating in concrete and plastic. Today, the company—which is actively pursuing an expansion project of Leo USA, Inc. into the United States—is exclusively dedicated to plastic blow molding. Project overview The company’s expansion into New Braunfels would be for a new, 70,000-square-foot, custom blow-molded plastic parts, components and prod- ucts manufacturing facility. The facility would serve customers in Mexico and Southern United States, according to agenda documents. Mexico is the only other area being considered for the facility’s expansion, according to a June 24 Economic Development Corporation meeting presentation. The impact The proposed project—dubbed Project Ellie—is being considered for a $950,000 economic incentive, which would be delivered over a 3-year period. There are several terms the city is proposing that must be met for the company to receive the incentive. The rst is a payment of $450,000, which would be paid once the company receives its Certicate of Occupancy. Leo would also have to invest at least $4 million in the building and machinery before that payment is made, said Michele Boggs, senior vice president of economic development for the New Braunfels Chamber of Commerce. The second payment, which is $250,000, would

Potential revenue The proposed project is being considered for a $950,000 economic incentive, and estimates a 7-9% annual rate of return to the city, according to agenda documents.

Entity City of New Braunfels

Bene ts

Costs

Net benets

Present value*

$666,340

$3,862,696

($3,005,924)

$856,772

$260,573

$459,487

($125,605)

$333,883

Comal County

$400,298

$1,653,539

($1,123,269)

$530,270

Comal ISD

Lateral Road - Comal County

$54,743

$72,430

SOURCE: CITY OF NEW BRAUNFELSCOMMUNITY IMPACT

*THE PRESENT VALUE OF NET BENEFITS EXPRESSES THE FUTURE STREAM OF NET BENEFITS RECEIVED OVER SEVERAL YEARS AS A SINGLE VALUE IN TODAY’S DOLLARS.

LATERAL ROAD COMAL COUNTY IS THE COMBINED PROPERTY AND INFRASTRUCTURE TAX RATE FOR COUNTY ROADS AND FLOOD CONTROL INFRASTRUCTURE.

come after the company has 20 full-time employ- ees and has invested $6 million in machinery, equipment and tenant improvements. The third and nal payment, which is another $250,000, would come after Leo hires 50 full-time employ- ees and has $10 million of taxable value, Boggs said. “It’ll be a 10-year contract where they will be required to employ 100 full-time jobs over that 10-year period and have a minimum taxable value of $10 million. So again, this has a great economic impact for New Braunfels and the community,” she said. What they o er Leo creates products for a variety of indus- tries, including powersports, transports, indus- trial, medical and recreational. The company also creates custom blow molding, specializing in medium to large plastic parts like air ducts,

The proposed project, dubbed Project Ellie, would be for a plastic blow molding manufacturing facility.

AMIRA VAN LEEUWEN COMMUNITY IMPACT

hospital bed parts, trac barrels and oating docks, according to the presentation. Stay tuned The item will come back for a nal decision at a future meeting date, Jonathan Packer, presi- dent and CEO of the New Braunfels Chamber of Commerce, told Community Impact .

COMMUNITYIMPACT.COM