Austin-Area Town Provides Incentives for Distribution Center

The Town of Jarrell will provide economic incentives as an inducement for Labatt Food Service to build a 150,000-square-foot distribution facility in the town. The facility would be located on a 48-acre site along Ronald W. Reagan Boulevard, southwest of the intersection with County Road 237. 

The agreement stipulates that the city would provide a maximum of $1.3 million in performance-based incentives, including a 50% tax abatement over a 10-year-period with a maximum of $600,000; $200,000 in waivers for all development-related city fees; and $500,000 to help with infrastructure improvements, including construction of a water line to the property. In return, Labatt would be required to invest at least $30 million for construction and $12 million for personal property by July 31, 2027. The $42 million warehouse will provide jobs for at least 150 jobs in the town.

Labatt provides food service for 75% of Texas school districts. The company has nine locations across the state, including in Austin.