CORPUS CHRISTI, Texas — On Tuesday, city leaders discussed and approved reestablishing an agreement which allows local industries to pay a certain district fee instead of general property taxes.
For more than a year, the City of Corpus Christi negotiated the structure of a new Industrial District Agreement(IDAs) with more than 80 industries across the Coastal Bend.
The city has had industrial districts since 1981 and the IDAs were put in place to enhance economic stability and growth for the city. The district fee is designed to save taxpayers money by eliminating the need for city services.
District 3 Councilman Roland Barrera said with IDAs being in place, industries can regulate their own property operations.
"The consternation that the public typically has is the statement that ‘they pay their fair share.’ Something to consider is that once we get to their fence line, we have no responsibility to their streets. They have their own waste management. They have their own security force," Barrera said.
The current IDA expires Dec. 31 and will be in place for 15 years. Compared to the previous agreements, which were 10 years, the new IDAs has a 19% increase.
This means industries will pay at least 74.5% for improvements. That’s projected to bring in an additional $5 million annually to the city.
Some local residents spoke out against the agreement being considered during Tuesday's meeting.
“My reasoning is threefold. Number one is fairness," resident John Weber said. "Homeowners and small business owners can’t have an IDA with the city and have their taxes reduced.”
“Those refineries aren’t going away. We know that," resident Heather Shields said. "I know they’re going to stay here, but you have to do your part and make them pay for being here.”
There was also concern for some council members, including District 2 Councilwoman Sylvia Campos.
“These industries, the corporations have been getting tax breaks for at least 40 years. They expect the city to continue to subsidize it. It’s these types of dollars that are slipping through our fingers right now," Campos said.
KRIS 6 News reporter, Alexis Scott, reached out to several industries, including Flint Hills Resources and Valero, about the Industrial District Agreements. They did not respond.
If certain industries do not want to agree to the IDA, the city says they will begin steps for annexation. The agreement will have to pass a final vote during next council meeting on Sept. 3.
The new 15 year Industrial District Agreement goes into effect on Jan. 1.
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