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San Marcos has approved a Chapter 380 economic development incentive with Katerra.
Katerra, a company based out of Menlo, California, will bring an automated building component manufacturing and distribution facility to the Whisper Planned Development District located near IH-35 and Yarrington Road. On Wednesday night, the San Marcos City Council approved an economic incentive with the company that will provide incentives over 10 years in the form of annual refunds of a portion of new property taxes generated from the facility.
San Marcos previously approved a similar agreement with Katerra last year. On Oct. 16, 2018, Council approved a Chapter 380 agreement with Katerra for the company to construct an approximately 600,000 square foot facility to manufacture a wide range of building components and materials, including wall panels, floor systems, roof truss assemblies, windows, cabinets and finishes at the SMART (San Marcos Air, Rail and Truck) Terminal industrial rail park.
However, Katerra recently announced that it will no longer be located at the SMART Terminal as originally proposed. Katerra was previously slated to be the SMART Terminal’s first tenant. Instead, the facility will relocate to the proposed Whisper development.
“I think it’s appropriate to say that we’re very excited that Katerra has made this decision to continue to be you know located in San Marcos,” City Manager Bert Lumbreras said. “I know that when they made this decision to go to Whisper they were very complimentary of the city and certainly of the mayor and the council and the support that they’ve gotten before. I think we’re excited to see them on the ground.”
According to the agenda item request, “This project is located in the Loop 110 TRZ which limits the amount of real property rebate that the company can receive because 50% of the real property increment goes to the State to reimburse them for the Loop 110 infrastructure. City staff is recommending that the previous agreement percentages be reduced by 50% for real property.”
The Whisper proposed development district doesn’t allow parking in front of the building, but the incentive agreement allows a variance so that parking in front of the building will be allowed.
Mayor Jane Hughson thanked staff for their work with Katerra.
“I know this has been a lot of work for the previous location and also for this location and I know they have worked very hard and diligently to make sure this company is coming in with all the rules that we have but also working quickly to get them where they need to be,” Hughson said.
Lumbreras noted that Katerra wanted to have a focus on the city’s workforce housing initiative.
“And I can see them as being an excellent, excellent community partner,” he said. “Actually, more than a community partner. Someone who is going to be very much in front in terms of how we can solve this very important issue that we talked about earlier for our community so I’m excited for those various reasons.”
In October, Matthew Ryan, head of manufacturing and logistics for Katerra, said the company expects to see groundbreaking on the new facility sometime in December or early January, depending on permitting with the City of San Marcos.
