Print
Reading Mode
Return
(6)(b)
CITY COMMISSION REGULAR MTG
Meeting Date:
12/06/2017
Submitted By:
Rhomari Jackson-Glover, City Secretary
Department:
City Secretary
Information
ACTION REQUEST (Brief Summary)
Consider and take action on Resolution 17-083, to approve a Chapter 312 Tax Abatement Agreement Between the City of Texas City, Texas, Gulf Coast Ammonia, LLC, and Eastman Chemical Texas City, Inc. for Property Located in the Texas City Gulf Coast Reinvestment Zone No. 1. (Management Services)
BACKGROUND
Gulf Coast Ammonia is a company looking to construct an ammonia plant on property located within the Eastman Chemical Plant. In exchange for a Tax Abatement of 10 years starting in 2021 at 100% on value from $400,000,000 to $800,000,000, the Company will pay the City $750,000 (if it is $400,000,000 in value) up to $1,000,000 (if it is $800,000,000 in value) annually in a Chapter 380 Agreement. In essence, the City will be granting an equivalent of a 60% discount on taxes. The arrangement allows both entities advantages on tax benefits. See attachments for more details on the agreement and the next Agenda item, 6c.
ANALYSIS
ALTERNATIVES CONSIDERED
Fiscal Impact
AgendaQuick ©2005 - 2024 Destiny Software Inc.
All Rights Reserved.