Katy City Council approves 150-acre annexation, tax abatement for liquor distributor

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Katy City Council unanimously approved a 40 percent tax-abatement plan for a 43-acre tract of land to be developed by Southern Glazer’s Wine and Spirits of Texas. The council also unanimously approved the annexation of 150 acres on the south side of Hwy. 90 between the Igloo and Amazon plants just west of town at its Dec. 10 meeting.

The agreement with Glazer’s Wine and Spirits of Texas did involve an abatement though. The liquor distributor will receive a 40 percent property tax abatement each year through 2028 if it meets the requirements of the agreement, according to documents provided by the city.

“The projections are it’s a $6.5 million income to the city in property tax, and basically when all is said and done it is $1 million that goes back to the property owner,” City Council Member Chris Harris said.

In order to maintain the abatement, Glazers must:
– Employ a minimum of 250 full-time workers by July 2020
– Invest at least $3 million in the property by 2021
– Maintain $75 million in taxable inventory at the site by 2021
– Maintain the appraised value of the site at $35 million or more by Jan. 1, 2019

If the agreement is not met in full by the company the city has the right to implement penalties or cancel the agreement for default, according to a copy of the agreement provided by the city.

Glazer’s will distribute liquor products throughout Greater Houston and Central Texas from its Katy plant, Katy Mayor Chuck Brawner said.

Details of what will be placed on the 150-acre tract of land the city annexed were not yet something the city could make public, Brawner said. However, he did say a large brand-name distribution center would be built on the site, and he hoped to be able to share details with the public soon.

The annexation agreement did not require any tax abatement or other incentives, Brawner said. The only concession the company entering into the agreement with the city asked for was fast service from the city’s permitting and inspections staff so it could save money and time on construction.

“There are jobs just like the [Amazon] distribution center,” Brawner said. “I’m not aware of their total numbers, but this location will be a distribution center for [Greater Houston].”

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R. Hans Miller
R. Hans Miller joined the Community Impact team in June 2017. He is a recent graduate of Texas State University's College of Journalism and Mass Communication, a U.S. Army veteran, husband and father. He is originally from Montana. He has written for VoiceBox Media and the San Marcos Daily Record, among others. He covers city government, emergency services, local business development and other topics for the Katy area.
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