On April 21, members of the New Braunfels Economic Development Corporation board of directors approved a recommendation to spend up to $550,000 on bagged pickle supplier Texas Tito’s for an expansion project.
Texas Tito’s, a New Braunfels-based company that produces prepackaged soured vegetables sold to wholesalers and consumers through its website, is applying for the economic development incentive to offset the cost of building a new water main that would serve a Proposed new 26,000 square foot facility on a 10 acre site on River Road, with potential for expansion.
To meet life safety and code requirements at the new site, fire suppression systems and hydrants are required, necessitating the construction of a new 12 inch water line to service the site where a four inch water main now exists.
“They currently occupy, and have for some time, a 20,000 square foot space in a production facility located at 1101 (Farm-to-Market Road),” said Jeff Jewell, director of economic and community development for the city. board members. “The company, after a review of its finances, has seen quite significant growth – double-digit growth in annual revenue among teenagers. The company is definitely in expansion mode, and to be able to digest and absorb that growth, it needs a new facility. They plan their future and what it may bring.
The proposed terms of the incentive agreement require Texas Tito’s to acquire the property and construct its new facility with an assessed value of at least $3 million by January 1, 2023, to be maintained through 2027, and begins its operations no later than June 30. , 2023.
In addition, the company must meet employment and payroll targets.
According to Jewell, the proposed project would provide an estimated net financial benefit to the city of $425,129 over the next ten years, retain 21 direct jobs, and create an additional 13 new direct jobs with average salaries over $44,000.
The NBEDC can require payment if the company fails to meet hiring, payroll or investment performance thresholds. The agreement provides for a payback period of approximately 12 years.
In addition to vegetables, the company produces about 2 million pounds of summer sausages annually through a Midwestern contract manufacturer.
The recommendation is now submitted to City Council for consideration.
Editor’s Note: This story has been updated with new information.