BEXAR COUNTY, Texas – Bexar County commissioners approved a 10-year tax abatement agreement Tuesday for H-E-B’s major expansion on the East Side.
County officials estimate the deal will reduce the company’s county property-tax bill by more than $15 million over the life of the agreement.
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The agreement applies to new, qualifying property value tied to the project at H-E-B’s Super Regional Center near Foster Road and East Houston Street.
Under the deal, H-E-B’s county property taxes on that new value would be cut by 85% for 10 years, while the company would still pay the remaining 15%.
The abatement affects Bexar County’s portion of the tax bill and does not automatically change what H-E-B owes other taxing entities.
H-E-B has said it plans to invest $636.5 million into the East Side facility as part of a broader supply-chain expansion described as roughly a $700 million project. The company has projected the expansion will create 720 new jobs.
In public discussions about the project, H-E-B has described early phases that include adding a bakery plant, a refrigerated warehouse and a returned-goods center at the campus. The company has said the facility already employs about 1,400 workers.
County leaders supporting the incentive said the agreement is meant to encourage long-term industrial investment and job growth on the East Side. However, the deal has also raised questions about whether the promised jobs and investment will materialize as projected, and what safeguards are in place for taxpayers if the company falls short.