UPDATE: On Oct. 2, the San Antonio City Council approved nearly $1.5 million worth of incentives for CST Brands Inc. Kevin Sheehan, vice president of internal audit and risk management for CST, told The San Antonio Express-News that the package played a key role in persuading CST to keep its headquarters in San Antonio. He said the company had considered moving to Live Oak, Schertz and other Bexar County sites. He stopped short of saying CST would have moved; however, he said "it was pretty important" that council members unanimously approved a 10-year, 80% property tax abatement valued at $915,746 and a $500,000 economic development grant for its future headquarters. Bexar County commissioners also voted unanimously to finalize a 10-year, 75% property tax abatement that would yield $599,779 in savings for CST. (Click here to view the full Express-News report.)
SAN ANTONIO -- City and county officials are offering more than $2 million in tax abatements and a cash grant to CST Brands Inc. to keep its headquarters in San Antonio, reported The San Antonio Express-News.
Since its spinoff from Valero Energy Corp. last year, CST executives have acknowledged the need to establish a home office of its own--not the 83,000 square feet of space it leases on its parent company's campus.
CST also has outgrown a 130,000-square-foot leased distribution center in Schertz, Texas, where it considered consolidating its operations, according to city documents cited by the newspaper.
After months of negotiations with the city and county, however, the company closed on a deal in July to pay $43 million for a nearly 560,000-square-foot office and warehouse complex at 19500 Bulverde Road.
"We are deeply committed to San Antonio and are grateful to the elected leadership of the city and Bexar County for helping us grow and expand here," Kim Lubel (formerly Bowers), CEO of CST, said in a statement obtained by the paper.
Bexar County commissioners considered on Tuesday granting the go-ahead to finalize those negotiations, while the San Antonio City Council will vote Thursday on a deal already hammered out with officials.
As part of the city's proposed incentive package, CST would receive a 10-year, 80% property tax abatement provided it invests at least $27 million in real and personal property improvements, creates at least 100 full-time jobs and retains an existing 305 full-time jobs. The city also would offer a $500,000 economic development grant, as long as CST retains 280 "high-wage jobs" with annual salaries of no less than $43,927.
A cost-benefit analysis shows the abatement and grant would cost the city about $1.4 million, said the report.
CST also could be eligible for a rebate on state sales taxes if the City Council approves nominating the company to be designated a Texas Enterprise Project.
On the county level, a 10-year, 75% property tax abatement would yield $599,779 in savings for CST, though staffers may offer other incentives, said David Marquez, head of economic development.
Click here to view the full Express-News report.
And the company is growing. In August, CST announced an $85-million agreement with Bethlehem, Pa.-based Lehigh Gas Partners, a master limited partnership (MLP) that distributes fuel to more than 1,050 locations and owns or leases more than 625 sites in 16 states. CST also entered into a definitive agreement to acquire Nice N Easy Grocery Shoppes, Canastota, N.Y., which operates 33 convenience stores and a dealer network of 44 franchise units.
CST operates nearly 1,900 locations throughout the southwestern United States and eastern Canada offering a broad array of convenience merchandise, beverages, snacks and fresh food. In the United States, CST Corner Stores proudly sell Valero fuels and signature products such as Fresh Choices baked and packaged goods, U Force energy and sport drinks, Cibolo Mountain coffee, FC Soda and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Dépanneur du Coin and Corner Stores sell signature Transit Café coffee and pastries.
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