At City Hall on Tuesday, Council members formally nominated the local Valero refinery to be designated as a double jumbo project. As it turns out, that could be a good thing for Valero, and for the City.
For one thing, it would result in a $200 million boost to the local economy; and for Valero, millions in tax savings.
The state has an enterprise zone program which encourages companies to heavily invest in their business. If they do, they will see some tax relief.
Valero is the latest refinery to take advantage of the program. The company has pledged to spend $200 million in improvements to its facilities over the next five years. In return, the state will give back a maximum of $2.5 million in state sales tax monies.
The City of Corpus Christi has nominated a number of projects in the past, including Valero, Bay Ltd., Citgo, Stripes, Flint Hills Resources and the TPCO steel plant.
"It's not monies that are directly coming out of the City's general fund, or anything of that sort," said Emily Martinez of Regional Economic Development. "It's a rebate of state sales tax, and it's based on the company providing a large capital investment. In this case, Valero is providing $200 million in capital investment."
So far, the enterprise zone projects have brought it $2.2 billion worth of investment to the city.
Valero is also promising to retain over 380 jobs for that time period as well. If the governor's office signs off on this deal, then there will be three companies taking advantage of our nine open slots. TPCO has one spot, and Valero would fill two with that double jumbo designation.