Houston County,Texas Grants Incentives to New Wood Pellet Manufacturer

 HOUSTON COUNTY, June 23, 2010--The Houston County Commissioners Court approved a tax abatement agreement and an economic development incentive agreement for a new wood pellet manufacturing facility to be located in Crockett.

Thom Lambert, executive director of the Crockett Economic Development Corporation, told the Court that Zilkha Biomass Crockett LLC has obtained property on Loop 304 South formerly owned by Northcutt Woodworks and plans a major expansion.

“This is a win-win situation,” said County Judge Lonnie Hunt. “Even though we are granting a tax abatement, the county will receive more property taxes because of the additional investment they will make in the property. And with the economic development incentive agreement, we’ll receive additional tax revenue on their inventory of freeport goods, and they will still receive a substantial incentive to locate and invest here.”

Freeport goods are inventory which stays in Texas for no more than 175 days and is then shipped out of state. Many counties and cities exempt all freeport goods from property taxes. Under the agreement approved Tuesday, Houston County will rebate 50 percent of the amount the company pays in county taxes on freeport goods for a period of 10 years.

The separate tax abatement agreement, which does not apply to inventory, the company will receive a full abatement of property taxes in year one, an 80 percent reduction in year two, 60 percent in year three, 40 percent in year four, and 20 percent in year five.

As part of the agreement, Zilkha agrees to make an investment of $20 million in its new Crockett plant, and create at least 18 full time jobs within one year of startup. Mr. Lambert pointed out that many more related jobs will also be created.

“They estimate they will use 750,000 metric tons of timber per year,” he said. “That will put a lot more people to work in Houston County.”  The wood pellets that are produced in Crockett will be transported to the Port of Houston and shipped to Europe.