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Graphic Packaging’s $1 billion project: city staff outline incentives, TIF and EDC support
Summary
City staff and the Greater Waco Chamber updated council on Graphic Packaging International’s site work, projected jobs and tax impact, and proposed community incentives including an $8.6 million EDC grant package and a TIF arrangement that returns a portion of increment above a threshold.
Representatives from the Greater Waco Chamber and city staff briefed council on Graphic Packaging International’s (GPI) manufacturing project—an estimated $1 billion capital investment in Texas Central Park—and the community incentives and infrastructure needed to support it.
Chris Collins, executive vice president for economic development at the Greater Waco Chamber, said the project will build a roughly 620,000-square-foot facility on 125 acres and is expected to create at least 190 direct jobs with an average wage of about $65,000. Collins said GPI projects more than $500 million in construction-era economic impact and estimates roughly $300 million in new taxes across McLennan County over 20 years, with more than $140 million in new taxable sales.
Two incentive packages were described for council consideration at the business meeting: (1) a Waco–McLennan County Economic Development Corporation (EDC) grant totaling $8.6 million (roughly $4.3 million to GPI to support construction of a rail spur and a traffic signal, and $4.3 million to the Waco Industrial Foundation to reimburse construction of natural-gas infrastructure); and (2) a Tax Increment Financing (TIF) agreement that would return some incremental real-property taxes generated by GPI above a $3,860,000 annual threshold. Under the proposed TIF structure, GPI would be eligible for 90% of increment above the threshold during the first 10 years and 50% of increment above the threshold in years 11–20; the agreement includes a hold-harmless clause requiring GPI to make up any shortfall below the threshold. The city also outlined a mechanism that could reduce GPI’s required contribution to the debt-service threshold if additional nearby development increases the TIF’s tax increment.
Collins said much of the on-site infrastructure—water, sewer, gas and electric—has been completed; the rail work is underway and a traffic signal at Sheehy Parkway and Bagby should be operational in July. He said GPI’s initial schedule moved an operational target forward (from early 2026 toward October 2025), which would place the plant on the tax rolls earlier than initially projected. City staff and the chamber recommended council consider the EDC grant and TIF agreement in the regular meeting.
