Fortune 500 company CST Brands (parent company of Corner Store) celebrated the grand opening of its new Corner Store Distribution Center on Tuesday, a 365,000 square foot warehouse that will serve as the main hub for distributing food and merchandise to approximately 600 Corner Stores in Texas.
Located at 19500 Bulverde Road, the warehouse is housed on a 77-acre campus with an additional 146,000 square feet of office space that will serve as the company’s future headquarters (CST Service Center) starting in 2016.
“We are happy to have found a new home in San Antonio that can grow with us as we expand our reach in Texas and across the U.S.,” said Kim Lubel President and CEO of CST Brands. “I am excited about our company’s future and we will continue to look for opportunities to grow.”
The purchase of the $43 million property was made possible with a city and county incentive package of tax abatements and cash grants worth $2 million. Under the incentive package, CST will invest in upgrades and retain 305 total jobs, 280 of them professional positions. The company will also create and maintain an additional 100 jobs by 2019.
Moving the warehouse from its prior location in Schertz relocated 215 warehouse jobs to San Antonio, a number that will rise to 251 in 2015. It’s also more than triple the size of the old facility, has three times the dock doors, 14 more tractors, 23 more trailers and uses leading edge technology for picking and shipping merchandise.
The CSDC differentiates CST from its competitors because it allows Corner Stores to maintain fresher inventories, makes them faster to market with new and trendy items, gives more control over food safety and quality, lowers the cost of goods by consolidating items onto one truck and enables food service and private label offerings.
In addition to the warehouse and office space, CST plans to build a prototype Corner Store that will serve as a testing ground for new products and provide space to train and develop Team Members.
“CST has been a tremendous corporate citizen and contributes to our city in many different ways, from jobs and economic development to volunteerism and charitable giving,” said Mayor Ivy Taylor at Tuesday’s ceremony.
District 10 City Councilman Mike Gallagher added, “The incentives package put together by the County and the City is a great example of how incentives can work to retain a great corporate headquarters and strengthen the community’s workforce in San Antonio. CST Brands will be a great addition to District 10 and I look forward to our continued partnership,” said Councilman Gallagher.
Steve Waters, general counsel/chief legal officer of USAA Real Estate Company and chairman of San Antonio’s Economic Development Foundation (EDF), echoed those sentiments and stressed the importance of the city, county and EDF working together to carry out an effective local business retention and expansion program.
“There are two words that sum up our determination to make this deal happen – Fortune 500,” Waters said. “Keeping and cultivating a company of this quality and magnitude only makes us a stronger city, and one that is more attractive to other companies looking to relocate to San Antonio.”
City Manager Sheryl Sculley agreed.
“The retention and expansion of the headquarters of a Fortune 500 company, such as CST Brands demonstrates that San Antonio is focused on the growth and expansion of local companies,” Sculley said. “The City played a small role in CST’s decision to stay in San Antonio, but more importantly, the company acknowledged San Antonio’s talented workforce, great business environment and standard of living as key reasons to grow here.”