Labatt Food Service qualified for tax incentives for a warehouse it is building in Jarrell, Texas, about 30 minutes outside Austin. The company is building a $42 million, 150,000-square-foot distribution facility on a 48-acre parcel at Ronald W. Reagan Boulevard and County Road 237. Labatt purchased the site in December.

The agreement provides Labatt 50% in property tax abatements on the value of land and improvements, or a maximum of $600,000 over 10 years. The city also agreed to $200,000 in development-related fees.

Labatt, which claims to be the 10th largest food distributor in the US, has nine warehouses across Texas. The company’s specialty is K-12 schools. Other revenue streams include contracts with independent operators, military bases, retail chains and national accounts.