Lockhart’s city council approved a 10‑year economic development incentive agreement with Sensei AG Holdings, Inc., to support the company’s plan to occupy the former Iron Ox greenhouse and warehouse. The resolution authorizes a property‑tax rebate formula tied to the company’s capital investment, wages and job creation, with a rebate cap of $2,000,000 over ten years.
Economic Development Director Holly Molish said Sensei intends to buy and occupy the existing greenhouse and warehouse at 1205 Reed Street and that Hill Country Foodworks had agreed to vacate the site to make room for the project. Molish described Sensei as an established indoor‑agriculture operator with locations in California, Hawaii and Ontario; staff presented a conservative local proposal of about $40 million in capital investment and at least 15 jobs with an average salary around $56,000.
Tian Xu, Sensei’s finance and corporate strategy lead, told council the company expects a phased build‑out: an initial operating footprint within the existing building followed by subsequent greenhouse expansion on adjacent land. Xu said production would serve Texas markets and described the project as technology‑heavy, emphasizing higher‑skilled positions such as technicians and engineers rather than low‑wage field labor.
Council debated the structure and cap of the rebate; Molish said the incentive is based on job count, wages and capital investment and that the ten‑year rebate is capped at $2,000,000. Several residents spoke during public comment, with one caller urging caution about incentives for indoor agriculture given industry volatility; supporters, including local business owners, said Sensei has local roots and would bring jobs and investment.
Councilman John Larson moved to approve the resolution; Councilman Westmoreland seconded. The motion carried 6‑1. Staff will proceed to finalize the incentive agreement and return any documentation necessary for the city manager’s signature.