Tyson nominated for state enterprise program
7 Nov 2020
Manufacturing, City of Seguin, SEDC, workforce
Joe Martin The Seguin Gazette
Tyson Farms plans to retain employees with the help of the city.
Recently, the Seguin City Council approved the nomination of Tyson Farms, Inc.’s Seguin plant as a Texas Enterprise Zone Project to the governor’s office of Economic Development and Tourism as part of the Texas Enterprise Zone Program.
“The Texas Enterprise Zone Program is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state,” a memo to city council stated.
The food manufacturing company is slated to spend about $5 million over the next three to five years at its Seguin facility to “continue to meet customer demand and increase efficiencies,” Seguin Economic Director Josh Schneuker wrote in the memo.
Through the Texas Zone Enterprise Program, which is administered and paid for by the Texas Comptroller’s Office, Tyson will maintain the employment of hundreds of full-time jobs at the local facility, Schneuker said.
“It’s only specific to the state sales and use tax, so there won’t be any city or county sales tax rebated or refunded into the company,” Schneuker said. “Our work on this is just being supportive of Tyson and hopefully helping them get that designation which will help lead to that investment at the facility, and help ensure that we’re gonna retain 500 jobs in the community for at least the next five years.”
Nominations for the program are not uncommon, with several other local businesses receiving aid in the past, Schneuker said.
In 2018, the city nominated CMC Steel for the program, Schneuker said.
“They were successfully approved,” he said. “They invested hundreds of millions of dollars in upgrades to their facility as part of that project. We’ve also done it for Caterpillar before as well.”
There is a bevy of requirements such as job retention, creation and wage benchmarks that companies must meet for successful program approval, Schneuker said.
Tyson is eligible for the program because it plans to maintain its employment of 500 full-time jobs, with plans of expansion, renovation or new construction over the next five years, Schneuker said.
The company also uses a “center-based accounting system” that allows it to track income-related expenses, Schneuker said.
The program is a valuable way to help companies make additional investments locally and create or retain jobs, Schneuker said.
“It’s helped a lot of our major manufacturers continue to thrive here in Seguin, so we’re always happy to help them out and at least submit them for nomination and the application process,” Schneuker said.
If approved for the program, Tyson Farms could receive up to $4 million, Schneuker said.
Joe Martin is a staff writer for the Seguin Gazette. You can e-mail him at joe.martin@seguingazette.com
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