Local Jobs Win Out: Commissioners Grant Tax Break for Fertilizer

Local Jobs Win Out: Commissioners Grant Tax Break for Fertilizer GrowthBrazoria County commissioners voted Tuesday to give NeuAg LLC a seven-year tax break so the company can expand its fertilizer plant instead of moving the project to Alabama. NeuAg plans to invest about $40 million in a new granulation facility near its current site at 695 Flag Lake Drive, close to the BASF complex outside Lake Jackson. The expansion will create 15 permanent jobs. County leaders said they wanted to keep the investment and jobs in Brazoria County rather than lose them to another state.The tax break applies only to the new equipment and buildings, not to NeuAg's existing plant. The company will pay no county property taxes on the new property for the first two years. After that, it will get an 80 percent break in years three and four, then a 70 percent break in years five through seven. Officials estimate the total tax savings at about $180,000 over the seven years. County Judge Matt Sebesta stressed that NeuAg is putting $40 million into the project, it is not receiving a $40 million gift from taxpayers.NeuAg currently processes a fine form of ammonium sulfate that is shipped elsewhere (including Alabama) to be turned into larger granules used in farming, lawn care, and other markets. The new facility will do that work locally, which should reduce shipping by truck, rail, or barge. Job pay is expected to range from about $40,000-$50,000 for bagging positions up to $90,000-$110,000 for a supervisor. The company already employs around 130 people in the area and has a history of using local contractors and giving to community causes.Some residents raised worries online about school funding and possible environmental risks during storms. Commissioners said the tax break does not affect school district taxes or state school money. They also noted that NeuAg's earlier tax agreement requires the company to keep its current operation in the county for 20 years or repay past tax savings. After a public hearing, the commissioners voted unanimously to create the needed reinvestment zone and approve the deal.