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The City of San Antonio is offering a $142.8 million incentive package to secure a $2 billion vehicle assembly line expansion from Toyota.
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The San Antonio City Council will vote on Thursday regarding $122.1 million in municipal incentives, including tax breaks, job training grants, fee waivers, and infrastructure improvements.
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The city council will recommend providing an additional $20.7 million in utility-related incentives for the project.
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Toyota operates a manufacturing plant on the South Side of San Antonio that opened in 2006 and currently assembles Tundra and Sequoia vehicles.
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Toyota is currently evaluating multiple locations for a new vehicle assembly line.
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Toyota has not disclosed which vehicle model the new assembly line would produce.
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Toyota has not disclosed which other locations are under consideration for the expansion.
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The proposed municipal incentives include a 10-year property tax break valued at an estimated $88.1 million.
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The proposed municipal incentives allocate $24.5 million for road and intersection improvements.
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The proposed municipal incentives include worker training grants worth up to $9 million.
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The proposed municipal incentives include fee waivers worth up to $500,000.
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The proposed incentives include a city endorsement for a CPS Energy program that could reduce electric rates, with an estimated value of $16.2 million.
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The proposed incentives include a recommendation for $4.5 million in San Antonio Water System fee waivers.
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The City of San Antonio projects a $131 million budget deficit for the 2028 fiscal year.
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City council members will receive a briefing on a trial budget on the same day as the incentive vote.
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The incentive agreement requires Toyota to create 2,000 full-time jobs.
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The new positions must pay at least the county average hourly wage of $32.46.
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The incentive package includes requirements for Toyota to allocate funds toward employee training, transportation, or childcare.
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San Antonio is expected to nominate Toyota for a Texas Enterprise Zone Triple Jumbo project.
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The Texas Enterprise Zone nomination could provide up to $3.75 million in refunded state sales and use tax.
Belinda Román, associate professor of economics at St. Mary’s University
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"So, yes, they can afford it."
Belinda Román, associate professor of economics at St. Mary’s University
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"The question is going to be: Does it play out the way it looks like on paper?"
Belinda Román, associate professor of economics at St. Mary’s University
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"The calculus here is, 'OK, we’re going to invest in this because the growth around it is going to be what we’re interested in, perhaps even more permanent.'"
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