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<br />. <br />, <br /> <br />,j{ <br /> <br />.f <br /> <br />.~ <br /> <br />,- <br /> <br /> <br />City of La Porte <br />C ...,i,ll' "'1 ,.; I ~9' <br />L,~LL....... t;;~t '_ .;, <br /> <br />January 10, 1995 <br /> <br />Mr. Charles E. Schneider, ill <br />Manager Public Affairs - Texas Operations <br />ARCO Chemical Company <br />P.O. Box 30 <br />Channelview, Texas 77530 <br /> <br />Dear Charles: <br /> <br />I am pleased to provide you with some pertinent information regarding my city's view on <br />tax abatement, and how it may impact a proposed expansion considered by your company. <br /> <br />'As I understand, ARCO is considering building a Propylene Oxide/Styrene Monomer facility <br />with related derivative plants with a construction value of somewhere between $750 million <br />and $1 billion. If built in the Bayport Industrial Complex, approximately 25% of the plant <br />would be in La Porte, and the difference would be within the City of Pasadena's. <br />jurisdiction. <br /> <br />As you may know, the City of La Porte is in partnership with industrial complexes within <br />the Bayport Industrial District and Battleground Industrial District. Since 1958 the City of <br />La Porte has afforded an abatement program to reduce the net tax liability for companies <br />'that locate their facilities within these two districts. ARCO Chemicals in La Porte has <br />benefited from such an agreement. <br /> <br />As you will read in the attached memorandum from Jeff Litchfield, Director of Finance a <br />proposed expansion valued at $1 billion with 25 percent of the improvements being in <br />La Porte would equate to an average annual savings of $1,100,500 in ad valorem taxes <br />following completions of the expansion and throughout the end of the current contract. <br />Savings under future contracts can be estimated at $834,250 annually. This difference in tax <br />abatement is important when comparing other abatement incentives. <br /> <br />.'. <br /> <br />r,("l.nolx 1115 · Llr,'rr~.T.?xa~7i5i2.1115 · (iI3H7i-::::: <br />