By Andy Sevilla

San Marcos has landed an energy sector manufacturer after negotiating an incentive deal, which would refund the company much of its property taxes in exchange for 350 full-time jobs over the next ten years. 

United WELD Operations, LLC, an oilfield pipe and rigging manufacturer, has promised to create 350 jobs with a median wage of $20.50 per hour or greater than $40,000 per year, according to the Greater San Marcos Partnership (GSMP), an economic development group aimed at attracting businesses to Hays and Caldwell counties.

In exchange, San Marcos will refund 80 percent of the ad valorem taxes it collects from 2016-2025 on any increased valuations generated from property improvements and personal property to a vacant building along the interstate.

United WELD, LLC, which was formed in Delaware and registered in Texas on Dec. 5, according to state comptroller records, will take over a 221,000 square-foot facility located at 2301 N IH-35, which previously housed the former Butler Manufacturing Facility, and has been empty since last December.

“This is a great opportunity for San Marcos. The facility will be one of the largest, most advanced industrial manufacturing facilities in the region and bring significant career opportunities, workforce development and sustained economic growth to San Marcos,” GSMP President Adriana Cruz said. 

Not many details of the company or the economic incentive deal negotiated with the city were available before the Dec. 16 San Marcos city council meeting, where officials approved the economic incentive deal.

GSMP said in its announcement that United WELD has committed significant investment capital and expects to begin operations in spring 2015.

“For United WELD Operations, LLC, accessibility to IH-35 was one of the most important factors in their location search,” Cruz said. “San Marcos’ proximity to the major highway and the availability of the building, in conjunction with the city’s high quality of life and unparalleled workforce, made it stand out.”

Under San Marcos’ incentive deal, the company would commit to hiring 140 employees by the end of 2016, and at least 70 additional workers every year thereafter until United WELD Operations reaches a workforce of 350.

“We commend and congratulate the San Marcos City County for their decision to approve an agreement for United WELD Holdings, LLC,” Cruz said. “This is a company that will bring great jobs to San Marcos and fill a vacant building at the gateway of this city.”

United WELD Operations, LLC, and United WELD Holdings LP, both were formed in Delaware, and both were registered in Texas on Dec. 5, according to state comptroller records. The registered agent for both companies is David S. Chapman Sr, with a registered office address in Spicewood, TX.

“We look forward to seeing their investment here benefit the working families of San Marcos,” Cruz said.