GRIMES CO. COMMISSIONERS APPROVE FULL TAX ABATEMENT FOR SPACEX FACILITY
Grimes County Commissioners have voted in favor of creating a tax increment reinvestment zone (TIRZ) and granting a full tax abatement to a proposed SpaceX facility.
Grimes County Commissioners on Wednesday for
SpaceX's semiconductor manufacturing and
computing fabrication facility.
(courtesy Grimes County)
Today’s (Wednesday) votes passed 4-1 to designate the reinvestment zone and approve the abatement for the Terafab semiconductor chip manufacturing facility. Commissioner David Tullos voted against.
The agreement will substitute property tax payments for a Payment in Lieu of Taxes (PILOT) agreement, consisting of a $10 million payment by SpaceX to the county upfront and $20 million paid annually over the course of the next 35 years.
SpaceX officials estimate at least $55 billion in initial capital investment and 1,800 employees.
The TIRZ boundaries were originally contained to the Gibbons Creek Reservoir area, but were updated to include a larger area to the east and south. The company said the exact footprint of the project site is not known yet, as it will depend on which landowners are willing to sell land, but the TIRZ is only intended for the facility, and that it would work with the county in the coming years as buildings are constructed.
Tullos, in voting no, said the point of tax abatements is to ensure as many safeguards and benefits for the county as possible, and he feels the structure of this agreement has limited effectiveness, adding, “It hasn’t felt like a negotiation. This felt more like a capitulation.” He asked the other members of the court to reconsider and re-engage with SpaceX to try to “get a better deal.”
The votes followed lengthy public hearings from numerous people in attendance, many of whom were opposed to the project or the county’s handling of it. Those residents expressed frustrations about what they viewed as a lack of transparency by the company, as well as worries about environmental impact and if the county’s own standards will be followed. Meanwhile, some supporters spoke positively on the funding that will support local schools and communities.