The New Braunfels City Council approved $2.2 million in sales tax incentives for The Neue, a four-story $28 million mixed-use building at the corner of West San Antonio Street and Guenther Avenue.

The San Antonio Business Journal reports the building will include 43 condominium residences above roughly 5,000 square feet of ground-floor retail and office space. It is a joint project from Gillum Development and Seals Family Properties.

$1.5 million of the incentive package will be issued upon receipt of the certificate of occupancy for the building. The city estimates a $1.58 million net 10-year fiscal benefit to the city.

Construction is expected to begin in 2026 following final engineering and lender underwriting.