The Herald-Zeitung

Local officials welcomed Home Depot to town again Thursday, agreeing to extend the company’s relocation incentives for another 10 years.

The extension includes the same 50 percent sales tax provision provided by the current agreement and a new automatic 10-year extension if Home Depot meets certain benchmarks. The company asked for the extension after a corporate restructuring resulted in company officials offering to bring at least 47 new jobs to New Braunfels.

The restructuring, which will take place at the end of the year, will change the company’s name to Home Depot Supply Facilities Maintenance Ltd. and incorporate product lines currently offered by Hughes Supply, a Florida-based company that sells items similar to those found in Home Depot’s catalogs.

The new agreement was approved unanimously Thursday by the city council, Comal County commissioners and the New Braunfels Industrial Development Corp. (4B) board in three separate meetings.

Although the new jobs represent only a 16 percent increase over the company’s current local workforce, the expansion will double the sales tax revenue it generates.

City and county officials are prohibited under the current agreement from revealing the exact sales tax revenue Home Depot generates, but since the call center’s first phone rang at the beginning of 2005, the city’s sales tax receipts have increased by an average of 34 percent.

“We anticipate generating $20 million for the city in sales tax revenue within the next 10 years,” company legal representative John Torigian told city council. “If we reach that target, and increase the overall workforce by 47 positions, we would like to extend our agreement.”

The 63,000-square-foot Home Depot call center located on Common Street currently houses 277 employees. Home Depot representative Ross Tanner said the company intended to increase the employee base to 400 by 2008, including the new jobs covered by the extended agreement. The expansion will not require the company to expand its current facility or build another one.

City Manager Michael Morrison said New Braunfelsers should be excited about the new agreement.

“The increase in sales tax we see will be paid primarily by people who do not live in this community and use its services,” he said. “The more revenue we have, the greater ability we have to deliver services to our citizens.”