Toyota on Friday announced a $531.7 million expansion of its plant on the city's South Side that builds the Tundra pickup and the Sequoia SUV.
The Japanese automaker had been mulling the investment for months and followed through after the city and county finalized $40 million in incentives — including a 10-year, 100% tax abatement
The new 500,000 square-foot facility is expected to add 411 new jobs to the area. The base wage of the new jobs will be $20.54 an hour, with an average salary of about $68,000.
The facility will produce drive train parts, which were previously made by a supplier outside of Texas.
Toyota called the move a part of its "commitment to reinvesting profits in its U.S. operations." The company invested $4.7 billion in the San Antonio plant since 2003 and employs more than 3,700 workers at the facility, which began production in 2006.
“Our team members are ready for this new opportunity to grow our plant’s capabilities and workforce,” said Susann Kazunas, Toyota Texas president. “They are highly capable, innovative and have a steadfast commitment to our products."
One element of the deal that has not been finalized is a zoning change to 20,000 acres surrounding the South Side plant.
The San Antonio Zoning Commission in May delayed a vote on a plan to create a "buffer zone" for Toyota.
The commission heard from landowners and developers, who said this would stop them from building in a high-demand area.
“Why don’t they focus on building great cars and stop hindering our developments?" asked Fermin Rajunov, one of the developers. "Toyota is driving a profit at the cost of landowners and developers. The issue transcends economic growth. It is about ensuring that everyone, regardless of their economic status, has the same opportunities.”
A spokesperson for Toyota said the company had no comment and that zoning decisions are solely the responsibility of the City of San Antonio.
The Planning Commission on June 26 is expected to consider an updated proposal that would limit the "buffer zone" and not impact existing property owners.
