Plans to bring a new bakery and largescale baked goods manufacturing facility to Corpus Christi’s Westside may be firming up.
The City Council on Oct. 13 unanimously backed a $363,000 tax incentive package for development of a new location of El Bolillo Bakery in what would represent the Houston-area business’ expansion into Corpus Christi – an endeavor several councilmembers described as “a great project.”
The company is expected to use the funding to make 121 new jobs available – boasting an annual payroll reaching about $3.6 million – as well as to cover some basic business costs such as infrastructure and equipment, according to city documents.
An abandoned Walgreens
at 2101 Morgan Ave. currently occupies the space where El Bolillo is expected to develop a location. The company anticipated to invest about $6 million to improve it for manufacturing operations, a presentation shows.
The site is significant, because it is nestled in an area of Corpus Christi considered to be either in “severe distress” or “deep distress,” meaning higher unemployment compared to the rest of the city, said Aaron Bowman, executive director of the Corpus Christi Regional Economic Development Corp.
“This is right in the heart of where people need jobs,” he told the City Council on Oct. 13, adding that “putting a vacant building back on the tax rolls is very important.”
Specializing in crafting baked Mexican goods, El Bolillo Bakery mass manufactures products for food distributors, restaurants and grocery stores – but locations also include a small retail bakery for individual sales, officials have said.
“It’s really meant to distribute out,” Bowman said. “But what they find in Houston is it’s a great place for people to meet and get together and spend some time.”
The company will not receive funding unless it fulfills criteria outlined in the contract, such as providing a certain number of jobs within prescribed timeframes.
Although councilmembers expressed support for the project, several raised concerns about a contract change made by the outgoing Type B Board – the body that acts, in part, as the gatekeeper for economic development deals using a portion of sales tax revenue.
Some councilmembers, at times, evoked a different economic development agreement that had soured.
While the Type B Board brokers tax incentive agreements, they are only effective after ratification by the council.
The prior board – now largely replaced with new appointees – had revised language in the original contract with El Bolillo Bakery that had given authority to both the City Council and Type B Board to issue default notices, instead leaving only the Type B Board in control of finding the company in default should contract terms not be met.
Staff had recommended against the change, said City Manager Peter Zanoni.
Within the past year, the City Council had issued a default notice to Elevate QOF LLC, developers of a newly opened Homewood Suites location downtown whose $2 million tax incentive agreement had become the center of controversy.
Ultimately, the Type B Board – the only other entity in the agreement with the company – disagreed, and found no default.
The council eventually landed on approving the tax incentive agreement with El Bolillo Bakery under the condition that the original language giving the council authority to issue a default notice be restored.
The contract with the amendment is expected to return to the Type B Board for a vote.
If the board approves the amendment, the contract will be effective. If it does not approve the amendment, the deal – at least in its current form – would be off the table.
Kirsten Crow covers city government and water news. Have a story idea? Contact her at kirsten.crow@caller.com.
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This article originally appeared on Corpus Christi Caller Times: New baked goods manufacturing facility firming up Corpus Christi site
