A San Antonio-based food distributor is eyeing Jarrell, a town north of Austin, for a $42 million, 150,000-square-foot facility that would create at least 150 jobs.

Labatt Food Service plans to build the warehouse on 48 acres at the Ronald W. Reagan Boulevard/County Road 237 intersection.

The Austin Business Journal reports as part of the agreement, 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.

In return, Labatt would be required to invest at least $30 million in construction and $12 million in personal property expenditures by July 31, 2027, obtain a certificate of occupancy for at least 150,000 square feet and begin operations by July 31, 2027,, and employ at least 150 people by the end of the third year.

The company has contracts with 75% of school districts in Texas, as well as some in New Mexico.