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May 2, 2008

County to look at abatement agreements

BEAUMONT — By Amy Moore

The News staff writer

BEAUMONT — Jefferson County Commissioners are taking the first step in ensuring refineries that have received tax abatements are hiring local workers and vendors in industrial projects.

Several years ago commissioners approved a tax abatement agreement with Port Arthur’s Total Refinery for a Petrochemical Hydrotreater Project. Although the project was completed in 2006, commissioners are only now able to review the agreement ensuring all efforts were made to hire local workers first.

“Basically we are reviewing our agreement with Total to see if they are in compliance with their end of bargain,” Jefferson County Judge Ron Walker said. “We’ll look at a lot of things — use of local labor and contractors, etc. This has been our program since I came aboard 15 months ago. We feel we are very favorable considering tax abatements and the only thing we ask in return is that the abated entity return that by using local resources.”

At Monday’s regular Commissioners’ Court meeting, commissioners will discuss appointing a committee to serve through 2008 to review abatement allowances, like the one Total received.

Walker said he will insist Patrick Swain, county auditor, and Jeff Branick, assistant to the county judge, will serve on the committee.

“Those two are very knowledgeable on this type of thing,” he said.

He noted that Assistant District Attorney Tom Rugg might also be appointed to the committee.

“This (the review committee) keeps everyone focused on local issues and local hiring and local vendors getting lots of opportunities,” Pat Avery, Total spokesperson, said. “We’ve already provided them (the county) a lot of information about the local vendors we used for the hydrotreater project and the amount of money it generated into the local community.”

Avery said the entire hydrotreater was built with local labor - including laborers from Echo, IMC, Mason Construction and other local companies.

Total is currently working on another project, this one a $2.2 billion expansion that received approval for a tax abatement as well. Avery said abatements are incredibly important to the local businesses for several reasons.

“They are important to attract capital to our area and it really does help when the top leadership is trying to decide on investments,” she said. “And of course they provide a lot of employment. We hope that they stick around.”

The review committee will also look at an abatement approved for Port Arthur Steam Energy.

Jefferson County Commissioners will meet at 1:30 p.m., Monday, May 5 in the Commissioners' Courtroom, 1149 Pearl St., Beaumont.

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