Port Arthur is developing a plan and funding mechanism for bolstering infrastructure improvements in and around the empty Federal Building and Adams Building at Austin Avenue and Fifth Street, where Motiva has announced plans for developing downtown office space.

Becky Underhill, assistant city manager, said a Tax Increment Reinvestment Zone is designated for some 372 acres near the planned downtown development — Houston Avenue to Lake Charles Avenue, Seventh Street to the seawall.

“It doesn’t involve a tax increase or a fee,” she said of the TIRZ. As property values rise and tax rolls follow, consistent with the new value, those involved in the TIRZ — Jefferson County, Drainage District No. 7, Sabine Neches Navigation District and the city of Port Arthur — will dedicate portions of their increases in value to improving infrastructure within the district.

Most will dedicate 20%; the city will dedicate 100% of increased values. If the property values don’t increase, there would be no dedicated revenue.

Underhill said the TIRZ, which was created in a 2013 city ordinance, includes these board representatives: Port Arthur Mayor Pro Tem Thomas Kinlaw, chair; Mayor Derrick Freeman; County Commissioner Michael Sinegal; Commissioner James Gamble, Drainage District 7; Commissioner Joseph Johnson, Sabine Neches Navigation District.

She said a project plan is underway to create infrastructure — water and sewer improvements, sidewalks, roadways and more — to meet the needs of the new development downtown. That was the impetus of a meetingThursday.

Floyd Batiste, CEO of the Port Arthur Economic Development Corp., said this week that infrastructure improvements must keep apace of what Underhill and Assistant City Manage Ron Burton describe as a “very aggressive” development plan.

Motiva, which will put 500 office workers downtown, plans to move into the revitalized buildings by the third quarter of 2021 — a little more than two years.

Newmark Knight Frank of Houston, representing Motiva at the meeting, said the company would “maintain the historic exterior and interior design features” on both buildings. Meeting the demands of treatment for asbestos and lead paint alone in the two buildings will cost almost $3.7 million.

A project plan will be developed within a couple of weeks for the TIRZ; if the TIRZ board OKs the plan, it will be sent to the City Council for approval.

Motiva plans to close the sale on the properties by May 15; the environmental remediation will start in 2019 and complete next year. The plan submitted by the company says the architectural and engineering designs and applications for building permits will take place in 2020 and construction will follow.

Occupancy, the company suggests, will come in the third quarter — July to September — 2021.