Orange County approves $150 million, 10-year tax abatement for Jefferson Energy expansion

Orange County and the Orange County Economic Development Corporation have approved a Chapter 381 abatement agreement with Jefferson Gulf Coast Energy Partners, LLC to invest $150,000,000 in the expansion of its trans-load facility in Orange County.

According to Mark Viator, director of Public and Government Affairs/Special Projects at Jefferson Energy Companies, the abatement will allow the company to potentially build additional assets including but not limited to a new storage tank, dock and additional unloading stations and rail.

“Jefferson Energy would like to thank Orange County Commissioners Court for granting us this $150 million, 10-year abatement,” said Greg Binion, CEO, Jefferson Energy Companies. “These type of tax incentives assist us to invest capital and create jobs. Since 2014, Jefferson has created over 100 full time positions, over 1,000 construction jobs and paid $6,954,000 in property taxes. This is economic development that benefits Orange County, Southeast Texas and Jefferson Energy Companies.”

Jefferson Energy Terminal was founded in 2012 to meet the needs of the Gulf Coast Refining market. The vision was to connect the abundant North American crude production to the U.S. Gulf Coast and beyond. The Jefferson Energy terminal became operational in the fall of 2013. The terminal provides customers with a multi-modal facility connecting rail, marine, truck, and pipeline, loading and unloading capability of ethanol, fuels, and crude oil, and over 2 million barrels of storage capacity with full buildout potential of 18 million barrels. Jefferson Energy and affiliates have invested over $350 million in the facility since 2012.

“Orange County is excited to partner with Jefferson Energy once again. Since breaking ground in 2012, Jefferson Energy has contributed millions to the Orange County economy. This is a sizeable investment which I believe will be a substantial and long-term asset to Orange County,” said Jessica Hill, executive director of Orange County Economic Development Corporation.

The parties have agreed to a 10-year, 100 percent property tax abatement on the improvement value on the investment, along with a payment in lieu of taxes to Orange County, a release from the Orange County EDC states. Jefferson is still seeking abatement from other taxing entities, while Vidor ISD and other taxing entities will continue to receive property tax payments for the existing investment along with inventory tax.

“Jefferson Energy continues to invest in our community. We are thankful for the partnership and look forward to future opportunities to grow Orange County,” Hill said.

 

Photo courtesy of Jefferson Energy

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