San Antonio City Council OKs tax package for $150M T.J. Maxx center

May 18, 2017 GMT

City Council members unanimously OK’d a tax incentive package Thursday to lure the Massachusetts parent company of T.J. Maxx and Marshalls to build a $150 million distribution center on the city’s South Side.

TJX Companies Inc., the parent company of the discount retail chains, says the project will create 1,000 jobs over five years.

Under the agreement, the city won’t annex the 200 acres near Mission Espada where TJX plans to build the 1.5-million-square-foot warehouse for 15 years, a move intended to keep the company’s property taxes low. The land falls outside of city limits.

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The council also nominated the project to become a Texas Enterprise Zone, giving the project access to state incentive funds through Gov. Greg Abbott’s office. The governor’s office will have to approve the designation, District 3 Councilwoman Rebecca Viagran said.

Under the agreement, TJX would donate 15 to 20 acres to the Southside Independent School District for a new school and also would donate more than 3 miles of property to the city for a bike-and-pedestrian trail route known as the Espada Trail Connection. The route will connect 13 miles on the Medina River Greenway to 14 miles along the San Antonio River, creating a seamless trail of about 31 total miles.

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TJX has told the city it intends to pay employees at least $10 an hour and provide health and retirement benefits for eligible, full-time employees. The company has also said that 26 percent of workers will earn at least the city’s living-wage level of $11.83 per hour. Some managers are expected to pay more than $50,000 a year.

Southside Independent School District approved a tax exemption for the company at its April 6 meeting.