Retail is a key anchor in a local economy, generating sales tax revenue that funds road, utility, and quality-of-life infrastructure. Keeping essential services nearby benefits residents and ensures that local spending stays within the community, further supporting these investments.
The recent announcement that Costco is locating on Kohlenberg Road in Mayfair, is a win on all fronts. According to our most recent retail study, Costco’s market segment is the third largest source of retail leakage in New Braunfels. This translates to $77m a year that New Braunfelsers are spending outside of New Braunfels. With this announcement, those dollars stay local. That’s a win.
This deal was made possible through a 20-year, $6.3m agreement between Mayfair and Costco, two private businesses. Because Mayfair is a Water Improvement District, they receive a portion of the sales tax generated by the project and are responsible for building the necessary infrastructure to support the development. With Costco as a retail anchor, Mayfair can attract additional stores and secure the resources needed for infrastructure expansion. That’s a win.
Because of Mayfair’s substantial commitment, the City of New Braunfels and Comal County were able to structure targeted, strategic incentives. The City will rebate new sales tax revenue that Costco generates for up to eight years, capped at $1.5 million, while the County will offer rebates for up to five years, capped at $750,000. Costco’s presence will generate significantly more revenue than these incentives for both the City and County. That’s a win.
This project will be a significant anchor for future quality of life and infrastructure in that area of our community. Through proportional investment from each partner, the 2023 bond funded Kohlenberg Road project will have an even greater impact. Additionally, the New Braunfels Economic Development Corporation is investing $1.5m in a new interchange at Kohlenberg, benefiting Mayfair, Costco, and Continental Automotive. The result: high-quality neighborhoods, convenient and affordable retail services, and high-paying jobs. That’s a win.