Chevron Phillips Chemical is considering building a plant worth in excess of $5 billion in Orange. Chaney Moore, real estate and property manager for the company, told the West Orange-Cove school board other sites are in consideration.
Moore went before the school board to request a special property appraisal program under the Texas Comptroller’s Office. The board unanimously agreed.
The proposed site for the plant is within the West Orange-Cove CISD and the Bridge City ISD. According to the company’s application, the plant will have about 3,500 construction jobs. Construction could start by the second quarter of 2020. The application says “at least 10” full time jobs will be created.
Moore said the land is split almost 50-50 between the two school districts. The WO-C board approved a deal worth $2.5 billion. Next week, Moore will go to the Bridge City school board to ask for endorsement of a similar deal for the other part of the property.
He said the company is going to ask the Orange City Council to dis-annex the land and then put it under an Industrial District Contract, similar to the ones the city has with the other local Chevron Phillips plant and plants on Chemical Row. The industrial contracts allow the city to negotiate a percentage of property taxes the city collects instead of the full value.
In addition, the company will ask the city and Orange County for tax abatements, deals that can eliminate or lower property taxes for a set number of years.
The school districts must deal under the state comptroller’s Appraised Value Limitation on Qualified Property, also called a “3-13.” If the plant is built in Orange, and Bridge City school board agrees to a deal, both districts could begin receiving $100 per student per year as soon as this year.
WO-C has hired Leon and Powell law firm of Austin to represent the district in the negotiations. Sara Leon said the company would then pay property taxes on an agreed appraised value of the plant to be used for a 10-year period. If school enrollment jumps because of the jobs being created, the company can be asked to pay for things like portable classrooms for the overflow.
After the set period, the plant would pay full property taxes.
WO-C is one of the wealthy state districts because of the industries on Chemical Row. Under the state’s “Robin Hood” law, WO-C is required to pay some of its property taxes to the state, which then reimburses the money to poor districts. Leon said WO-C will be able to keep all the money generated by the 3-13 agreement because it is not counted under “Robin Hood.”
Orange County Economic Development Director Jessica Hill attended the meeting and sat with the Chevron representatives. Plant Manager Craig Lemon and Vicki Derese, the company’s community relations manager, also attended.
-Margaret Toal, KOGT-
Social Media