A $20,000 incentives package approved by Buda city leaders last month is expected to pave the way for a company that maintains semiconductor construction equipment to open for business.
By a unanimous vote on Jan. 3, the Buda City Council approved a performance agreement on second reading between the Buda Economic Development Corporation (EDC) and GMAG Holdings, which is the parent company of Chip Semiconductor. According to city documents, the performance agreement would have Buda pay $20,000 for permit fees “and to secure or make improvements to infrastructure for their facility.”
Per city documents, the performance agreement requires GMAG Holdings to invest at least $5,000,000 in capital improvements and build approximately 45,000 square feet of new industrial space within the city.
Ann Miller, Buda EDC executive director, said the facility is already under construction on South Loop 4 at the northwest intersection of Robert S. Light Blvd.
“Their only neighbors are Texas Lehigh, Deep Eddy and currently vacant land ... They are building their facility on the back portion of 19 acres and have plans to develop the remaining land into a business park that will house similar light industrial and commercial uses.”
Ann Miller, Buda EDC executive director
Miller said the facility will not be used in the manufacture of semiconductors, but will utilize clean rooms to test, fix and improve the equipment used to make semiconductors.
“Chip Semiconductor purchases the equipment used to make semiconductors, reconditions, retools, refurbishes and customizes it to meet the needs of a semiconductor manufacturing company,” Miller said in an emailed response.
Miller also said the semiconductor equipment manufacturing company would bring more jobs to Buda in the near future.
“The project over the next ten years plans to hire many additional employees,” Miller said, “Chip is actually seeking to hire some employees currently that have warehouse experience, but are also familiar with computers.”
Miller explained to council members in December 2016 that the EDC Board of Directors recommended the performance agreement with the $20,000 incentive attached due to the rapid return on their investment.
“This project is expected to generate over $240k in property taxes alone to the City of Buda so in the first year the City will have received more than the $20k that was used to incentivize it,” Miller said in the email.
As for the future landscape for businesses in Buda Miller said the EDC is “following our strategic plan … the plan includes a diversified mix of retail, entertainment, office, commercial and industrial businesses.”
At this time it is unknown what phase of construction the GMAG Holdings facility is in or when the company intends to open.
What’s included in Buda’s incentive package?
City of Buda offers:
$20,000 for permit fees for facility improvements
In return, GMAC Holdings will offer:
$5,000,000 in capital improvements
45,000 square feet of new industrial space within Buda
Over $240k in property taxes in the first year of operation
