O-2006-2955 - Laserfiche WebLink

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TALKING POINTS TAX ABATEMENT WITH PREFERRED FREEZER HOUSTON PORT, LLC (Lessee) and UNDER BEAR, LLC (Lessor) AGENDA ITEM COURT SESSION March 20, 2007 Representatives from Preferred attending court session: Bill Forrester, Development Manager Municipal Action: On November 6, 2006, the City of La Porte held a Public Hearing (no opposition expressed), created the La Porte Reinvestment Zone "Zone C" , and approved a tax abatement agreement. Prior Actions by Commissioners Court: An early start variance was approved for the proposed project November 21, 2006, to enable construction to commence prior to the execution of a tax abatement agreement. ■ Preferred Freezer Services began operations in Perth Amboy, NJ in 1989 as a cold storage warehousing business primarily for food and related products. ■ Current locations are in New York, New Jersey, Boston, Los Angeles, Miami, and Chicago. ■ The company will be new to Texas and Harris County. ■ Preferred will invest approximately $10.4 million in the new facility of which $9.9 million would be subject to abatement. ■ They will create 35 new full time jobs. ■ As an alternative to the site in La Porte, Preferred considered two other cities as potential site locations. One in Chicago where they would expand an already existing market and the second in Jacksonville, Florida both of which are offering tax incentive packages. FISCAL IMPACT: • Average Annual Taxes Abated: $22,175 • Current Annual Revenue: $1,053 • Average annual revenue during abatement period: $33,055 • The County's average annual revenue during the abatement period increases by $32,002 • After the abatement period, annual revenue increases by $35,169 over current revenues. • By creating 35 jobs, 38 indirect jobs would also be created because of this project. • Total annual economic impact of this project is estimated to be 9.8 million