Consider and take action on Resolution No. 19-089, approving a Chapter 380 Economic Development and Performance Agreement between the City of Texas City, Texas, and Gulf Coast Ammonia, 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 Chapter 380 Payment in Lieu of Taxes agreement 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 Chapter 380 - Payment in Lieu of Taxes agreement has to be redone to account for the new investors and locations.  While the previous agenda item for the Tax Abatement would be for 100% of the increase in value, the Chapter 380 agreement 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 agreements will be updated and provided in the packets on Monday.