ALLOY MANUFACTURER FACILITY PROJECT TO ROLL OUT ‘MORE SLOWLY’ THAN ANTICIPATED

  

Local economic officials say a project by a manufacturer in the oil and gas industry to build a production facility in Washington County will launch slower than originally expected.

Brenham Economic Development Director Susan Cates told Washington County Commissioners this (Tuesday) morning that due to COVID-19 and other occurrences leading to uncertainty in the economy and oil and gas industry, Corrosion Resistant Alloys (CRA) will be coming to the county with “Phase 0.5 instead of Phase 1” of its project.  The company, which manufactures high-grade corrosion resistant alloy tubes, is planning to build a production facility two miles east of Brenham on Highway 290.

Cates explained that because CRA will employ fewer people than anticipated during the first phase of the project, it becomes ineligible for a $675,000 Texas Capital Fund (TCF) grant that would have funded the extension of a City of Brenham gas line to the site.

 

 

The first phase of development is projected to include 80,000 square feet of manufacturing space with a capital investment of $30 million.  CRA expects to employ 15 workers to support the first phase of the project.

Cates said a gas line extension is still needed in the future in order to serve future phases of the project, and will now be done without the TCF grant funding.  She said the company does not want to go into this project “with any kind of obligation that they are not certain they will meet,” or “put either their business or the county at any risk of not being able to meet the terms of this grant.”

Following Cates’ explanation, commissioners authorized the county judge to execute a letter requesting termination of the agreement between the county and CRA for the TCF grant.  Cates said the severing of the agreement is the first step in de-obligating those funds with the state.

Commissioner Kirk Hanath said he appreciates the company’s honesty, noting that some companies fail to make their obligations and leave commissioners in a bad position.  He believes this puts the court “in a very good position.”

Site work is anticipated to begin by the end of 2021, with production scheduled to start approximately the 4th quarter of 2022.

Also at today’s meeting, commissioners:

  • Approved a compensation pay increase for Washington County employees. The increase gives all employees a minimum 2 percent raise up to 15 percent, based on their years of service.  The increase becomes effective at the next pay period, July 23rd.
  • Approved the purchase of a transport bus for the Washington County Sheriff’s Office for $56,975. The bus is a 2018 Starcraft Allstar that seats 25 passengers.  Commissioner Candice Bullock said the county could potentially be reimbursed through the American Rescue Plan Act.
  • Approved a guaranteed maximum price amendment to set the maximum price at $452,063 for renovations at the Washington County Expo office building and event center by Chappell Hill Construction Company. Expo Director Harrison Williams said construction is moving along at a “very good and rapid pace” and is on track for completion before September.
  • Executed an agreement between the county and landowners Robert Funk and Mark Knipstein for right of entry on private property in Precinct 4. County Engineer Ross McCall said in 2016, rock from the road washed out into the ditch on private property, and has caused drainage issues and problems on county roads since then.  The county has to enter private property in order to clean out the culverts.
  • Approved a subdivision variance request for a land division fronting Meleski School Lane in Precinct 2.
  • Approved a final plat for the Wolf Creek Springs subdivision fronting Gilmore Road in Precinct 3.
  • Gave conditional approval of a final plat for the Century Farms at Chappell Hill subdivision fronting Wonder Hill Road in Precinct 2.

 

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