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Cibolo creates Reinvestment Zone No. 2 and reviews $450M Project Theo incentive package
Summary
Council created a 126‑acre Reinvestment Zone required for tax abatement at 3641 Santa Clara Road and heard a proposed incentive package to recruit "Project Theo," a Fortune 500 distribution center estimating $450 million investment and 425 jobs; formal incentive terms remain subject to final approvals.
The Cibolo City Council on Monday voted to create City of Cibolo Reinvestment Zone Number 2, a roughly 126‑acre boundary at 3641 Santa Clara Road that the city must establish before considering a property tax abatement under state law.
City staff explained the designation is a procedural step required by the Texas Tax Code prior to entering into any tax‑abatement agreement. The ordinance creating the reinvestment zone was approved by a 7–0 vote.
Staff also presented a recruitment package for a major prospect identified in the record as "Project Theo," described to the council as a Fortune 500 company planning a next‑generation distribution and fulfillment facility. City staff said the prospect’s minimum capital investment would be $450 million with at least 425 full‑time equivalent positions at wages above the MSA median. The proposed municipal incentives discussed in the presentation included a 75% property tax abatement for 10 years under Chapter 312 of the Texas Tax Code and a subsequent 50% rebate on the M&O portion of the tax rate for five years. The package also includes a performance‑based sales tax incentive with an estimated $5 million of sales tax receipts per year split 50/50 between the company and the city (with a city cap and a provision that the city receives any excess beyond the company cap), and an Economic Development Corporation utility extension grant of $300,000.
Rick (city staff) emphasized that recruiting the prospect required coordination with the county, the county attorney, the planning and zoning commission, the Economic Development Corporation and GVEC (Guadalupe Valley Electric Cooperative) to ensure adequate power and infrastructure. He described the proposed terms as part of a multi‑agency recruitment effort and noted additional steps remain before final incentives are executed.
Council did not adopt the final incentive agreement during the open meeting; the ordinance creating the reinvestment zone was approved and staff said final terms and conditions of an incentive agreement will return to council for action. The council recessed to executive session later in the evening to discuss economic development and other personnel matters.
