The Culture of Business
CST Brands plans headquarters move to site in
North San Antonio
City and County voteson incentive package paves the way for long-term investment by CST
SAN ANTONIO – CST Brands, parent company to Corner Store, today received the County’s go ahead for an incentive package that will bring the Fortune 500 company one step closer to moving its corporate headquarters to 19500 Bulverde Road in North San Antonio, a warehouse and office complex being leased to Pearson PLC, a textbook and educational materials provider. The next step for CST is a city council vote on Thursday.
Currently, CST Brands is located on the Valero Energy campus at 1 Valero Way. CST Brands spun off of Valero and went public on the New York Stock Exchange in May 2013, entering the market as the second-largest publicly-traded fuel and convenience merchandise retailer in North America.
“At CST Brands, 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 expandhere,” said Kim Lubel, CEO of CST Brands. “With recent acquisitions on the East Coast, CST’s footprint is growing and so should the service center that supports our network of more than 1,900 stores and 12,000 Team Members across the U.S. and Canada.”
The acquisitionof the Bulverde site will allow CST to combine its office headquarters with its Regional Distribution Center, which has already moved to the new location. Office employees plan to movein after Pearson’s lease expires in 2016.
Bexar County Commissioners voted unanimously on Tuesday to offer CST a 10-year, 75 percent tax abatement on county taxes.
“We want CST Brands to continue to prosper and grow here,” said Precinct 3County Commissioner Kevin Wolff. “There is no doubt in my mind that the return on investment is well worth the incentive.”
The city plans to vote Thursday on a 10-year, 80 percent tax abatement of ad valorem real and personal property taxes on the proposed site, as well as a $500,000 economic development grant. Under the incentive package, CST will invest $26 million in upgrades, as well as retain 280 high-wage, full-time jobs. The company will also create and maintain an additional 100 jobs by 2019.
According to Mayor Ivy Taylor, retaining a company like CST Brands is a priority for the city.
“CST has been a tremendous corporate citizen since they spun off from Valero lastyear, and we want to make sure they continue contributing to our city in manydifferent ways, from jobs and economic development to volunteerism and charitable giving,” Taylor said.
District 10 City Councilman Mike Gallagher added, “This is a prime example of when incentives work to keep jobs and corporate headquarters in San Antonio.”
Steve Waters, general counsel/chief legal officer of USAA Real Estate Company and chairman of San Antonio’s Economic Development Foundation (EDF), echoed those sentiments and stressed the importance of the city, county and EDF working together to craft a reasonable, yet attractive incentive package.
“There are two words that sum up our determination to make this deal happen – Fortune 500,” Waters said. “Keeping and cultivating a company of this magnitude only makes us a stronger and more attractive city for other companies looking to relocate to San Antonio.”
CST Brands, Inc. (NYSE: CST), a Fortune 500 Company, is one of the largest independent retailers of motor fuels and convenience merchandise in North America. Based in San Antonio, Texas, CST employs nearly 12,000 Team Members at approximately 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 U.S., 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. For more information about CST, please visit www.cstbrands.com.