A chemical blending and packing services company in Rosenberg is in the process of expanding. At the most recent Rosenberg City Council meeting, council members voted in favor of authorizing a tax abatement agreement with Seatex for a five-year term.
The planned improvements are estimated to generate about $10 million in property taxes and increased inventory. The agreement requires that the certified appraised value of the property increase from $19,262,720 to $21,762,720 in fiscal year 2020 and that Seatex maintains at least 110 full-time employees through 2024.
If both requirements are met, 50% of any increase in appraised taxable value on tangible personal property will be abated for five years, city staff noted.
“This company employs a lot of folks here in Rosenberg,” Mayor Bill Benton began. “They have a lot of built-out value on their properties. They get no relief at the school district level, which is a much higher rate than our property tax rate of 41.5 cents.
“I think the current rate for the school district is ($1.32). (Seatex is) paying a terrific amount of money in school taxes.”
Seatex occupies a modern railserved manufacturing and warehousing facility of over 320,000 square feet.
“Keep in mind, the proposal for this one here is a five-year abatement at city property tax only. After that, the city makes 100% of all of it,” Benton continued. “Somewhere, you have to have a little investment. Give folks incentive. They come here, they build here, they expand here, they employ our citizens here. And we all benefit.”
Council member Isaac Davila said this is a good deal for Rosenberg.
Council member Lisa Wallingford made a motion to move forward with the agreement. The motion was seconded by council member Steven DeGregorio and passed unanimously.
The next Rosenberg City Council meeting will be held Nov. 19 at 6:30 p.m.
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