The board of the Edinburg Economic Development Corporation (EEDC) is recommending that the city council consider Santana Textiles application for a competitive incentive program as construction gets underway for a new facility.
The EEDC has sent to the city council its recommendation to designate Santana Textiles as an “Enterprise Project.”
Under the Enterprise designation, Santana would receive a significant reimbursement on the state sales tax portion they pay for materials or equipment used for construction. The amount reimbursed would depend on the number of jobs created. Santana could stand to get reimbursed about $2,500 per job with a “ceiling” about $1.25 million, according to City Manager Ramiro Garza.
What follows after the likely approval by the Council is a competitive application process to the state.
“The state and the city had included it as an incentive if Santana were to have located here. We just haven’t been able to submit it to the state because it has to do with when they start construction. Now that they (Santana) are ready to start construction, we have to submit an application,” Garza said.
“You know when they buy a piece of equipment or materials for construction, they have separate contracts for that, and they submit that, which is then audited to the state comptrollers office, and based upon the jobs they create,” Garza said.
Brazil-based Santana is considered to be one of the top-10 denim manufacturers in the world in terms of production volume, according to the EEDC.
Santana is tentatively slated to construct a 775,000-square-foot denim manufacturing plant at the city’s North Industrial Park soon, according to Garza. The upcoming plant will create 800 jobs, and have a capital investment of $80 million.
Garza said the application for Enterprise designation is one of the final steps on the way to construction of the new facility.
“It’s not an automatic thing,” Garza said about the enterprise designation. “They have to go through the city (Edinburg) where they are locating and have it designated and it’s an application process (but) it’s one of the final steps because this step couldn’t be taken without initial construction so, this the final step.”