According to information published on the Montgomery County Commissioners Court agenda April 9, the abatement would apply to a manufacturing facility for Aventus Development and Bionova Scientific that would bring with it an estimated $56.1 million in improvements or repairs to a future site. According to its website, Bionova is based in Freemont, California, and it is a pharmaceutical company that is "focused on developing and manufacturing recombinant protein products using mammalian cell culture processes."
The address for the location was not provided in the May 7 Commissioners Court meeting materials, but a copy of the agreement provided by County Attorney B.D. Griffin lists the street address as 2625 Research Forest Drive, The Woodlands, and notes that it is 4.8 acres in size and within a reinvestment zone in the county.
The context
Commissioners did not discuss the details of the tax abatement, an agreement which the Texas Comptroller’s Office describes as "between a taxpayer and a taxing unit that exempts increases in the value of the property from taxation for up to 10 years.”
According to the comptroller’s office, the idea behind tax abatements is to incentivize and attract new industries to an area. Montgomery County adopted its guidelines for tax abatements in January 2023, according to the agreement.
Another life sciences facility that recently opened in The Woodlands is Nurix Therapeutics, which opened in October.
The details
The abatement period listed in the agreement is from Jan. 1, 2025-Dec. 31, 2032. According to the agreement, the real property and improvements on the land will have a combined value of about $58.5 million once the improvements are completed. The 57 new jobs expected at the facility are projected to have an annual payroll of $7.4 million, according to the agreement.
According to the agreement, if the number of people employed at the facility falls below numbers established in the agreement during the abatement period for more than 30 days, the company must make certain tax payments to the county.
The tax abatement will affect the full market appraised value of the project exceeding its base year value, according to the agreement. The amount to be abated by year is:
- 2026-29: 100%
- 2030: 80%
- 2031: 60%
- 2032: 40%
Gil Staley, president and CEO of The Woodlands Area Economic Development Partnership, said the company will next need to make a similar agreement with The Woodlands Township.
"We are thrilled to gain the endorsement of Montgomery County commissioners for the tax abatement partnership with BioNova Scientific,” Staley said in an email. “Over nearly two years, we've diligently pursued this project to incentivize their expansion in our area, rather than remaining in California or moving to North Carolina. We are hopeful to receive similar support from The Woodlands Township, so we can officially welcome BioNova to our community.”
