Consider and take action on Resolution No. 19-088, approving a Chapter 312 Tax Abatement Agreement between the City of Texas City, Texas, Gulf Coast Ammonia, LLC, Eastman Chemical Texas City, Inc., and Oiltanking North America, LLC for property located in the Texas City Gulf Coast Reinvestment Zone No. 1. (Legal)

In December of 2017, the City of Texas City granted a Tax Abatement to Gulf Coast Ammonia based upon the project creating at least $450,000,000 in value with anticipation that they will eventually create $800,000,000 in value on the Eastman site.  About a month ago, the City Commission approved the amendment of the reinvestment zone that was broadened to include OilTanking and a portion of water near the ship channel for a future dock.  The reinvestment zone was to account for the changes in investors working with Gulf Coast Ammonia.  For the same reason the Tax Abatement agreement has to be redone to account for the new investors and locations.  While the Tax Abatement would be for 100% of the increase in value, the Chapter 380 agreement that is next agenda item, would have a payment in lieu of taxes equal to $750,000 for any value over $450,000,000 up to $800,000,000 and a $1 million payment for anything over $800,000,000.  This agreement agreement is essentially the same except for the partners and locations.  At a later time once all is approved and the GLO grants its easement, the current Chapter 312 and Chapter 380 agreements would be canceled.

The resolutions and final agreements with attachments should be updated and placed in the packet on Monday.