DEPARTMENT HEAD: Rene Dominguez
COUNCIL DISTRICTS IMPACTED: 3
SUBJECT:
City Council consideration on two agreements with Halliburton, including a mutual termination of an existing Industrial District Non-Annexation Agreement (IDA), and a Chapter 380 Tax Rebate Agreement.
SUMMARY:
This ordinance authorizes two agreements with Halliburton: (1) a mutual termination of an existing IDA (which would commence Halliburton's voluntary annexation request), and (2) an eight-year, Chapter 380 Tax Rebate Agreement rebating approximately 62% of San Antonio's ad valorem taxes, to be effective upon annexation. These agreements are based on Halliburton's continued operations at 4526 S Loop 1604 and the retention of at least 500 jobs. In summary, at Halliburton's request, the City would accelerate the annexation of Halliburton's property, resulting in the retention of Halliburton's employees, personal property and ongoing operations.
BACKGROUND INFORMATION:
Founded in 1919, Halliburton is one of the world's largest providers of products and services to the energy industry. Registered on the New York Stock Exchange, with over 55,000 employees in more than 80 countries, the company provides oilfield services to its customers. Halliburton maintains an office near San Antonio at the corner of I37 and Loop 1604, in the City's Extraterritorial Jurisdiction (ETJ) and in Emergency Services District (ESD) #6. This office is the main base for its Eagle Ford Shale operations, which are subject to Texas sales/use tax via a direct pay permit. As of 2018, Halliburton has approximately $29.8 million real property value and $240 million personal property value (mostly mobile equipment called "rolling stock") at the project site.
In 2010, the City identified Halliburton's property in its Heritage South Sector Plan (as part of the City's Master Plan to accommodate sustainable growth). In 2016, in order to retain Halliburton's presence, City Council approved a ten-year IDA with Halliburton. U...
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