San Antonio Business Journal Front Page Story

Boerne food company set to expand plant, add more jobs

Boerne officials are going to see a lot more nuts in their town.

And that's a good thing.

Texas Star Nut and Food Co. has announced plans to expand - both in terms of building space and workforce.

Over the next five years, as many as 60 new jobs will be created at Texas Star as a result of this growth plan, according to Dan Rogers, president and CEO of the Kendall County Economic Development Corp. (KCEDC).

The company has already added 25 of the roughly 60 employees that it looks to bring on over the next several years, Rogers adds. Its workforce now stands at about 45 employees.

Those jobs are expected to pay wages of $8 an hour, though some of the new jobs could command an annual salary of up to $70,000.

However, the majority of the new hires will be hourly employees, Rogers says.

Texas Star has also pulled the trigger on new construction at its facility in Boerne. Slated for completion this fall, the expansion will add 15,000 square feet to what is currently a 13,500-square-foot building at 206 Market Avenue in Boerne - the county seat of Kendall County.

Rogers says the price tag on this project is in an excess of $2.5 million.

In an effort to facilitate Texas Nut's growth needs, the City of Boerne recently approved a five-year tax abatement for 85 percent of the taxable new property and new equipment. Over that five years, Texas Nut is slated to realize a savings of $50,000, Rogers says. The company also plans to apply for a tax abatement from Kendall County.

Founded in 2001, Texas Star packages nuts, fruits and trail mixes for the Lone Star State's grocery industry. The firm markets these products under its own label: Nature's Eats.

Rules of retention

Discussions between city officials and Texas Star began last fall, Rogers recalls. At the time, Texas Nut was weighing its options for growth, including other cities that would be able to accommodate that growth.

Those competing cities included what Rogers calls "that fair city south of us" - meaning San Antonio.

City and county officials were successful in not only in keeping a long-time company - and its employees - in Boerne, but a company that "will get even bigger and bigger as time goes by," Rogers says.

Adds KCEDC Chairman Jeff Mnick: "Texas Star was a primary example of the opportunity we have to retain an expanding company in Kendall County, and create new jobs here."

For Texas Star, the agreement means that this firm can stay in the city it has called home for so many years, says Texas Star President John Taylor. Sentiments aside, the facility is also in proximity to Interstate Highway 10 - a crucial thoroughfare for the products Texas Star receives from West Texas, New Mexico and California. The interstate is also a good route for the firm's shipments to San Antonio grocer H-E-B - a company that Taylor calls "Texas Star's foremost customer."

Turning around

The Texas Star announcement marks one the latest success stories for the KCEDC, which officially opened for business on June 1, 2006. The public/private partnership is sponsored by Kendall County, the city of Boerne, and the Comfort and Greater Boerne chambers of commerce.

Just last week, the KCEDC spoke with the Business Journal about a new study to identify the kinds of retail services that are needed by residents. As Rogers explains, the purpose of the study is to help address the area's retail gap - one that is costing it millions of dollars in lost sales tax revenues each year.

The organization has hired Fort Worth-based retail developer Buxton Co. to conduct the study that will include exploring potential retail development opportunities in Boerne and Kendall County.

Such measures are representative of KCEDC's proactive approach to improving the quality of life of its residents.

"(The recession) has impacted us, certainly, but not as dramatically as other areas," says Rogers. "There is no pessimism in Kendall County. We need to be looking forward, not behind us."

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