County considers tax abatement
By BARRY HALVORSON news@leader-news.com

Phase 3 at the Colorado Bend Energy Center in Wharton County became more of a possibility as the Wharton County Commissioners Court accepted an application for a tax abatement from Navasota Energy this week.

County Judge John Murille said this is only a preliminary step in the process and the county can begin serious negotiations regarding any potential incentives for the energy producer.

In a letter to the commissioners, Frank Giacalone, manager of the Navasota's general partner, said the company would be looking to obtain tax abatements similar to those for Phase 1 and Phase 2.

According to the county, the company received a 75 percent abatement for the first five years and a 25 percent abatement for the second five years for each phase.

As part of the same letter, Giacalone wrote the Phase 3 expansion is expected to start construction as early as the Fall 2008 and be completed by Jan. 1, 2011, "subject to availability of major equipment and experienced constructors."

According to the application, the CBEC currently has a staff of 15 full-time employees with three more professionals added when Phase 2 goes on line in May 2008.

Phase 3 is predicted to add between three and five new employees to the permanent staff. The combined estimated cost of the expansion, both soft expenses such as hourly wages and hard costs such as materials, is $103,037,000.

Another item addressed by the commissioners was approval of accepting a bid for the sale of the Wharton County Precinct 1 barn. The only bidder for the property was Precision Gas Wells, which submitted the minimum bid of $280,000.

In a phone interview, Murille said the county still has to negotiate a move out date for the county pending the completion of the new Precinct 1 barn.

The new barn is being built on property purchased by the county from Navasota Energy.

Navasota initially bought more land than necessary for its power plant for construction purposes and sold part to the county for the new barn and park.