A public hearing regarding the proposed tax abatement agreement with Integra Mission Critical LLC.
RECOMMENDATION: A public hearing regarding the proposed tax abatement agreement with Integra Mission Critical LLC.
SPECIFIC EXPLANATION:
State law requires cities to adopt tax abatement guidelines and criteria before entering into tax abatement agreements, and each approved abatement agreement must meet those guidelines. State law also provides that cities’ tax abatement guidelines and criteria must be renewed every two years. City Council last renewed the tax abatement guidelines and criteria on August 28, 2024.
Tax abatement agreements may only be entered into for properties designated as a reinvestment zone pursuant to Sec. 312.201 of the Texas Tax Code. The proposed tax abatement agreement occurs within the Prologis-Wayfair Reinvestment Zone created by City Council on December 14, 2022. Public hearings on proposed tax abatement agreements are not mandatory under the statutory requirements for public hearings in Chapter 312 of the Texas Tax Code; however, Section 44-126(a) of the Code of Ordinances requires a public hearing on a proposed tax abatement agreement prior to entering into tax abatement agreements.
Integra Mission Critical LLC (the Company) is a designer, engineer, and manufacturer of modular infrastructure units for data centers. The Company submitted an application for abatement to the City on April 10, 2024, with all supporting documentation. The proposed development will create 291 jobs and includes $66M in lease obligations, tenant improvements, and machinery and equipment installation.
The City has reviewed the Company’s tax abatement application, and the proposed tax abatement agreement was presented to the Economic Development Committee on July 17, 2024. The proposed date of the public hearing is November 13, 2024.
The hearing notice will be published in the Houston Chronicle no later than 7 days prior to the public hearing date, as required by Section 44-126(a) of the Code of Ordinances.
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Gwendolyn Tillotson-Bell
Chief Economic Development Officer