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

71231403.BPS 11/30/07 10:A public hearing concerning the creation of an additional reinvestment zone for Navasota Energy's Colorado Bend Power Plant along with possible action is part of the agenda for Monday's meeting of the Wharton County Commissioners Court.

Monday's discussion will concern a proposed Phase 3 construction at the power plant. County Judge John Murrile said the county has been discussing a similar tax abatement to the ones provided for Phases 1 and 2.

"Overall, we're looking at giving them a 50 percent abatement over 10 years," the judge said. "They would receive a 75 percent abatement over the first five years and 25 percent abatement over the final five years of the agreement."

Under Texas law, the tax abatement is for any improvements made to the property, such as new construction. The company is still responsible for the full taxable value of the land prior to the start of any work.

Murrile said the continued expansion of the plant is good business not only for the additional taxable value it creates but also the local economy.

"When they are in a building phase it's great for both the county and the cities," he said. "The hotels fill, the RV parks are occupied, the groceries have more business, restaurants see more business and they are buying other items locally. It generates both sales and motel taxes for the cities. It's good economically for the county."

In other actions, the commissioners are being asked to act on a resolution that would allow for the county to apply for planning grant assistance with the Texas Water Development Board. Murrile said the additional funds would be used to continue the study of the Tres Palacios River basin, including the Mustang creeks and branches of the Bernard River. The study would extend from El Campo into Matagorda County.

"We're trying to get Matagorda County to participate in the study," Murrile said. "Even if they can provide any funding right now, having two counties on the application will make it

look better. Eventually, I would

like to see Matagorda County 55 AM Page 1

pick up the study and extend it

all the way to the bay system."

Other items on the agenda for discussion and possible action during Monday's meeting include:

• Update by Wes Birdwell with Halff Associates on master drainage study;

• Authorize county judge to sign interlocal agreement with city of Wharton and Wharton County for participation in the city of Wharton Sidewalk Improvement Project in the downtown area;

• Subdivision plat for Farmers Co-op of El Campo;

• Discontinue installation of drop pipe;

• Clean ditch on CR 315;

• Discuss exempt and nonexempt employees and take appropriate action;

• Update on indigent health care proposals; and

• Authorize county judge to sign interlocal agreement with Houston-Galveston Area Council general provisions.

The meeting will begin at 9:30 a.m. in the commissioners courtroom of the Wharton County Annex at 309 E. Milam in Wharton. The public hearing will be held during the meeting at 10 a.m.