New Braunfels City Council approves Costco agreement and economic development initiatives

New Braunfels City Council made significant strides in economic development during their meeting on February 10, 2025, approving multiple agreements aimed at attracting Costco to the area. The council unanimously voted on three separate agreements that will provide substantial financial incentives to the retail giant, which is set to establish a new store in the Mayfair development, located just outside the city limits.

The agreements include a waiver of sales taxes from the Comal County Water Improvement District (WID) to Costco, alongside two Chapter 380 economic development agreements. The city will rebate 50% of its sales tax revenue from Costco back to the company over a term of eight years or up to $1.5 million, whichever comes first. The WID will rebate 75% of its sales tax revenue for a period of 20 years, with a cap of $6.3 million. These incentives are designed to retain local spending that has previously leaked out of the community, as residents often travel outside New Braunfels for shopping at big box stores.

Costco's planned investment of at least $25 million is expected to create around 50 jobs with competitive wages, further bolstering the local economy. The store will occupy a 50,000 square foot space at the intersection of I-35 and Kohlenberg Road, an area that is also set to undergo infrastructure improvements as part of the city’s 2023 bond program.

While the council members expressed optimism about the economic benefits of bringing Costco to New Braunfels, public comments during the meeting raised concerns about the financial implications of the incentives. Some residents questioned the diversion of funds that could have been allocated for essential services, such as fire infrastructure, and expressed skepticism about the long-term benefits of such corporate incentives.

In addition to the Costco agreements, the council discussed potential transportation projects aimed at securing federal and state funding. These projects include pedestrian improvements, traffic signal optimization, and enhancements to existing roadways, all designed to improve safety and accessibility for residents.

The council's decisions reflect a commitment to fostering economic growth while balancing community needs and concerns. As New Braunfels continues to grow, the implications of these agreements and projects will be closely monitored by both city officials and residents alike.