SAN ANTONIO — It may be known for its bargain merchandise, but Dollar General is planning to spend big in Bexar County to improve its distribution system for the Southern United States.

The retailer said Tuesday it intends to build its first Texas distribution facility in East Bexar County, at a projected cost of $70 million, officials disclosed Tuesday.

The 110-acre facility would be located in an industrial park on North Foster Road, near Interstate 10, and would create 538 new full-time jobs, officials said.

Doing business in Bexar County since 1970, Dollar General has opened 61 stores here and employs more than 460 people locally, officials said.

The new project, known a DG Distribution of Texas LLC, was discussed at Commissioners Court, where the retailer requested a tax abatement.

No immediate action was taken on the request, but county economic development Director David Marquez recommended the court consider a 10-year, 75 percent property tax abatement, valued at $2.1 million.

To offer the abatement, a reinvestment zone would have to be created by the county, Marquez said. A public hearing on the zone's creation is set for Feb. 18.

“It would be a new, state-of-the-art facility, and we've been competing against other locations in Texas as well as Louisiana,” Marquez said.

“They currently serve Texas through their facilities in Oklahoma and Mississippi, so it was very important for them to get closer to this region,” he said.

The facility would have an estimated annual payroll of $19.2 million, with 36 manager positions, 22 clerical and 480 distribution jobs. Additionally, 90 truck drivers would be needed. The company said average annual pay would be $29,788.

Dollar General issued a statement saying plans remain tentative, as the company awaits governmental permits and development approvals.

“We have a lot of work to do before this project is finalized, but we feel great about the working relationships we've established with all parties,” said John Flanigan, Dollar General's global supply chain executive vice president..

“I am looking forward to advancing our negotiations and hopefully reaching an agreement that serves the San Antonio-Bexar community and satisfies Dollar General's needs,” Flanigan said.

The company operates nearly 1,200 stores and has 9,400 employees in Texas, making Bexar County “an ideal location to service the growing needs of our business. In addition to great location, the area offers first-class infrastructure, a strong business environment and an excellent workforce to draw from,” the company's statement added.

Precinct 4 Commissioner Tommy Adkisson, whose precinct includes the proposed site, said he's “convinced they're going to do great things. ... We're delighted to have them come into the community.”

jgonzalez@express-news.net

Twitter: johnwgonzalez