SUBJECT: A motion to set a public hearing date for December 2, 2015 regarding the designation of for the Halliburton Energy Services, Inc. Reinvestment Zone for tax abatement purposes
RECOMMENDATION: (Summary) A motion to set a public hearing date for December 2, 2015, regarding the designation of a the Halliburton Energy Services, Inc. Reinvestment Zone for tax abatement purposes
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 expire after two years. City Council renewed the tax abatement guidelines and criteria on March 12, 2014. Sec. 312.201 of the Texas Tax Code requires that the City hold a public hearing before it can adopt an ordinance designating an area as a reinvestment zone.
Halliburton Energy Services, Inc. (the “Company”) is one of the world’s largest providers of products and services to the oil and gas industry and is headquartered in Houston, Texas. The Company submitted a tax abatement application to the City on April 2, 2014, with all supporting documentation. The Company has expanded its North Belt Campus to include the construction of three office buildings, a technology center, a life center, a shipping and receiving building, central plant and three parking garages. The expansion represents 945,000 square feet of new development on approximately 89 acres of land located at 3000 N. Sam Houston Parkway East, Houston, Texas 77032. The Company plans to invest approximately $145 million to develop and construct the North Belt Campus and will continue to employ at least 2,700 permanent employees throughout the Abatement Period. The Company is requesting a variance from the requirements of Section 44-123(g) of the Code relating to the timing of the commencement of construction, alteration, or installation of improvements at the North Belt Campus and formal announcement of the project.
The City has reviewed the Company’s tax abatement application, and the proposed tax abatement agreement was presented to the Budget and Fiscal Affairs Committee on November 5, 2015, The proposed date of the public hearing is December 2, 2015.
cc: Marta Crinejo, Agenda Director
Anna Russell, City Secretary
Donna Edmundson, City Attorney
Gary Dzierlenga, Senior Assistant City Attorney