Apr. 11, 2003

Gov. Perry Touts Toyota Rail Legislation

SB 15 Authorizes $15 Million For Rail Line Construction At Plant Site

SAN ANTONIO – During a ceremonial public signing, Gov. Rick Perry today touted Senate Bill 15, which allows the Texas Department of Economic Development to use $15 million from its Smart Jobs Fund to build a second rail line linking the new Toyota plant site in south San Antonio to the nearest Burlington Northern connection.

“We pledged to Toyota we would make the cost of doing business affordable, and today we are delivering on that promise,” Perry said. “Toyota’s decision to expand in South Texas will help thousands of Texans earn new jobs and good wages, while providing a tremendous boost to the Texas economy.”

In February, Toyota announced it would build its new North American truck assembly plant in San Antonio. The plant is expected to add $2.4 billion to the Texas economy over the next decade.

The second rail line was part of Toyota’s site selection criteria. In December, Perry proposed using money from the Smart Jobs Fund to enhance San Antonio’s bid for the plant. Sen. Frank Madla, D-San Antonio, authored the legislation which received overwhelming support in the Texas legislature.

The estimated cost of the rail project is $20 million. The remaining $5 million will be funded through revenue bonds. A Bexar County Rural Rail Transportation District already has been created to undertake the project, which is expected to take 18 months to complete.

Perry pointed out that the San Antonio plant, which is expected to begin production of Tundra trucks in 2006, will employ 2,000 people and generate a $100 million annual payroll. The economic impact of the plant will ripple throughout the state, with an additional 5,300 spin-off jobs created.

The governor, who has made economic development a cornerstone of his administration, has proposed the creation of the Texas Enterprise Fund. The fund would help lure more businesses to Texas with an initial investment from the state’s Rainy Day Fund.

“By investing in jobs, we will not only create wages for Texans in need of a good income, we will create needed revenue to support vital functions long into the future,” Perry said.

Construction of the $800 million San Antonio plant is scheduled to begin in 2004. Once operational, the plant will produce 150,000 Tundra trucks each year.

Perry was joined at the signing ceremony by Toyota Motor Manufacturing North America Vice President of External Affairs Jim Wiseman, Bexar County Judge Nelson Wolff and San Antonio Mayor Ed Garza. With the governor’s signature, Senate Bill 15 takes immediate effect.