What residents need to know
At a Jan. 6 meeting, Sugar Land City Council voted 6-0 to approve an ordinance to create the reinvestment zone—an area designated as eligible for incentives such as tax abatements by a governing body, Sugar Land Business Development Manager Jennifer Alexander previously said. At Large Position 2 council member Robert Boettcher was absent.
City Council unanimously approved the first reading of the ordinance at a Dec. 16 meeting.
Zooming in
Alexander said the reinvestment zone allows for a county-proposed tax abatement for the project, with goals including:
- Encouraging new investment in designated areas
- Supporting job creation and retention
- Promoting redevelopment of underutilized or declining properties
- Diversifying the tax base and stimulating long-term economic vitality
Remember this?
AOI, the largest domestic optical module manufacturer, received a $2 million incentive from the Sugar Land Development Corp., a city board aimed at economic growth, in July.
The 10-year agreement obligates AOI to a lease at 1111 Gillingham Lane, a building the city has been trying to lease out for years, Alexander previously said. The annual $200,000 payments, which will be funded by the development corporation's $0.25 sales tax revenue, will begin March 31, 2027.
The money will be used to invest in the company’s Sugar Land network, including:
- Expanding the company’s manufacturing line at its existing headquarters
- Adding a new 266,000-square-foot facility, which is expected to cost $77 million
The new facility is expected to begin services in summer 2026, Community Impact previously reported.
