(8)(a)
CITY COMMISSION REGULAR MTG
- Meeting Date:
- 12/07/2022
- Title:
- Ordinance No. 2022-29, Approving a Chapter 312 Tax Abatement Agreement with Advario, Texas City L.P.
- Submitted For:
- Jon Branson
- Submitted By:
- Jon Branson, Management Services
- Department:
- Management Services
Information
ACTION REQUEST
Consideration and approval of Ordinance No. 2022-09 of the City of Texas City, Texas authorizing the Mayor to execute a Chapter 312 Tax Abatement Agreement with Advario, Texas City, L.P., A Texas Limited Partnership, in the form authorized by the City Commission.
BACKGROUND (Brief Summary)
On June 18, 2021, Advario Texas City, L.P. (formerly Oiltanking) submitted an application for a Tax Abatement to the City in the total estimated amount of $44,982,00 for a new marine terminal in Texas City. The applicant met with City Staff and the Mayor to discuss the abatement and agreed to basic term of the proposed abatement as follows:
Tax Year Abatement Percentage of Value Abated
2024 50%
2025 50%
2026 50%
2027 25%
2028 25%
2029 25%
2030 12.5%
2031 12.5%
2032 12.5%
2033 12.5%
The first step in moving forward with a Tax Abatement was to create a Reinvestment Zone for the proposed project. The City Commission approved the Reinvestment Zone # 2 for the project on May 4, 2022, and all the remaining steps necessary to proceed with the abatement have been completed.
Tax Year Abatement Percentage of Value Abated
2024 50%
2025 50%
2026 50%
2027 25%
2028 25%
2029 25%
2030 12.5%
2031 12.5%
2032 12.5%
2033 12.5%
The first step in moving forward with a Tax Abatement was to create a Reinvestment Zone for the proposed project. The City Commission approved the Reinvestment Zone # 2 for the project on May 4, 2022, and all the remaining steps necessary to proceed with the abatement have been completed.
RECOMMENDATION
The recommendation is to proceed with the Tax Abatement.