Consider and take action on Resolution 17-084, to approve a Chapter 380 Economic Development and Performance Agreement for Property Located in the Texas City Gulf Coast Reinvestment Zone No. 1. (Management Services)

 

As described in the previous agenda item, Gulf Coast Ammonia plans on constructing a facility valued between $450,000,000 and $800,000,000 at Eastman Chemical.  In order to obtain a tax abatement, the company agrees to pay the city roughly and equivalent of 40% in this Chapter 380 agreement in what is known as Payment in Lieu of Taxes.  Both the City and Gulf Coast Ammonia sees benefits from this arrangement.  The Chapter 380 coincides time wise with the Tax Abatement - 10 years starting in 2021.  See Attachments for more details.