BEXAR COUNTY, Texas — The Bexar County Commissioners Court on Tuesday authorized county staff to negotiate a $15 million property tax abatement for H-E-B for a planned $700 million expansion of its distribution and manufacturing operations on San Antonio’s East Side.
Commissioners voted unanimously to allow negotiations for the incentive package tied to the project, which includes construction of a bakery, refrigerated warehouse, and a facility for returned goods near South Foster Road and East Houston Street.
H-E-B plans to expand its supply chain operations as it opens additional stores and increases production of private-label products. The company operates 14 manufacturing plants and 22 distribution centers.
Ben Scott, group vice president of real estate for H-E-B, said the expansion represents the company’s largest investment in its supply chain operations. He said the company considered expansion sites in other Texas cities, including Houston and Temple, before focusing on San Antonio.
Under the proposal, the county would grant a 10-year, 85% abatement on property taxes for the project. In exchange, H-E-B would hire 720 employees and retain 1,389 existing jobs at the facilities. The company said it would use most of the investment for infrastructure improvements, including sewer upgrades by the San Antonio Water System and a planned CPS Energy substation.
H-E-B also requested an exception to county wage requirements for tax incentive eligibility. County policy requires companies receiving incentives to meet either a $20.18 hourly living wage standard or an $21.34 hourly all-industry wage threshold for most full-time employees.
The company said starting wages for the expansion would range from $18.23 to nearly $30 per hour depending on position. It said most new positions would meet the county’s wage requirement by 2028 when construction is expected to be completed. H-E-B also projected the project would create more than 1,200 jobs by 2038.
H-E-B acquired more than 870 acres in the area in 2017 and has since invested more than $445 million in warehouses and manufacturing facilities on the site.
Commissioners will vote on a final agreement at a later date after negotiations. Several commissioners said they expect to support the deal, citing the company’s local presence and economic contributions.
Commissioner Justin Rodriguez said the project reflects continued investment in a San Antonio-based company that provides jobs and community benefits.
Commissioner Grant Moody said the company’s benefits package supports the proposed exception to the county’s wage guidelines.
