H-E-B is planning a $700 million expansion of the company’s East Side distribution operations, and it’s asking Bexar County for a $15 million tax abatement.
The San Antonio-based grocery chain is looking to add a new bakery and logistics hub and make other improvements at its facility along South Foster Road and south of East Houston Street, according to a presentation county staff plan to give to Commissioners Court next week. H-E-B would hire 720 employees at an average salary of $52,778 and keep 1,389 jobs at the facility.
The company said the expansion will create a total of more than 1,200 jobs by 2038.
“The project will be the company’s largest investment in its manufacturing and supply-chain division and, if the retailer moves forward with developing its plans at the Foster Road location, it will be among the largest industrial investments in the San Antonio area,” H-E-B said in a news release late Tuesday.
Commissioners will vote Tuesday on whether to give staff the go-ahead to negotiate a 10-year, 85% property tax abatement agreement.
They will also decide whether to make an exception to the county’s minimum job requirements for tax breaks.
The county requires companies seeking assistance for a facility to pay all full-time employees there a living wage, which is currently $20.18 per hour, or 70% of full-time employees an “all-industry wage,” which is $21.34 per hour. H-E-B’s base hourly wage is $18.23 per hour and would rise to $24.55 per hour after the 10th year of the agreement, according to the presentation.
This is a breaking news story and will be updated.
