Novealis Holdings LLC aims to take advantage of an appraised value limitation, a state tool to incentivize economic development, to build an $800 million polyethylene plant in the Bayport Container Terminal on the district’s north side.
The limitation would cap the plant’s taxable value at $100 million for 10 years. Under the agreement, in lieu of taxes, Novealis would reimburse the district an estimated $21 million over 10 years, said Paul McLarty, deputy superintendent of business and support services.
That is not as much as the district would receive without the limitation, but the deal is good for both sides: Novealis pays less in taxes for a decade, and the district still gets revenue from a company that—without the agreement—likely would not have chosen to develop in Texas, said Kevin O’Hanlon, an attorney representing the district.
“It’s a win-win if they wouldn’t have come anyway,” he said.
Surrounding school districts have done similar agreements before, but this is CCISD's first. The district does not have much industrial development, McLarty said.
The agreement still must get state approval, he said.
In other business
The CCISD board of trustees on Monday also approved an audit of the district’s special education program.
A few parents spoke publicly during the board meeting and complained the district uses “unethical” processes when dealing with special-needs students. Parents accused the district of bullying parents who complained about practices. Even more parents were seen protesting outside the district building before the meeting.
The five-month audit will begin in August and include classroom visits, a focus group, input from families and teachers, a survey, and more, a district official said.
