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Home My WebLink AboutPR 23066: LETTER OF SUPPORT TO THE OFFICE OF THE GOVERNOR FOR LG CHEM \ Ott'of --- ,, do ort rthu Te°.xas www.PortArthurTx.gov DEPARTMENT OF DEVELOPMENT SERVICES INTEROFFICE MEMORANDUM Date: March 17, 2023 To: The Honorable Mayor and City Council Through: Ronald "Ron" Burton, City Manager From: Pamela D. Langford, Assistant City Manager— Operations/Director of Development Services RE: P.R. NO. 23066 — A resolution authorizing the signature for a letter of support to the Office of the Governor for LG Chem. Introduction: This agenda item intends to seek City Council's approval of P.R. NO. 23066 authorizing the Mayor and City Manager to sign a letter of support for LG Chem Ohio Petrochemical, Inc. application to the Office of the Governor Economic Development & Diversification In-State Tuition for Employees Program. Background: Economic Development & Diversification In-State Tuition for Employees is a program that allows employees—and those employees' family members—of a qualified business considering a relocation or expansion of its operations in the State of Texas to pay in-state tuition rates at public institutions of higher education in the state without first establishing residency. A city, county or economic development group covering the Texas region in which the qualified business is considering locating, may apply on behalf of the business, so long as the business is still in the decision-making process to relocate or expand its operations at the applicable site. The incentive lasts for a period of 5 years after the qualified business becomes established as part of the state's Economic Development and Diversification Program (i.e., a qualifying student's enrollment date may not be more than 5 years after the dates of the qualified business' establishment in the program). "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 A qualified business: 1. Must operate in an industry that is expected to provide high economic impact to the Texas region in which it is considering locating; should be a target industry for the state or an ancillary or support industry. 2. Should promote highly skilled, high wage jobs. 3. Must plan to create new positions which will be filled by local residents in addition to the transferred employees. 4. Must be in the decision-making process to relocate or expand their operations in Texas during the application process. On January 31, 2023, representatives from LG Chem Ohio Petrochemical, Inc., submitted a request to this city for a letter of support for the In-State Tuition Waiver. Budget Impact: None Recommendation: It is recommended that City Council approve P.R. NO. 23066 authorizing the Mayor and City Manager to sign a letter of support for LG Chem Ohio Petrochemical, Inc. application to the Office of the Governor Economic Development & Diversification In- State Tuition for Employees Program. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089 X 409.983.8101 X FAX 409.982.6743 P.R. NO. 23066 03/16/2023 PDL PAGE 1 OF 6 RESOLUTION NO. A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO SIGN A LETTER OF SUPPORT FOR LG CHEM OHIO PETROCHEMICAL, INC. APPLICATION TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT TOURISM DIVISION FOR PARTICIPATION IN THE ECONOMIC DEVELOPMENT & DIVERSIFICATION IN-STATE TUITION FOR EMPLOYEES PROGRAM WHEREAS, the State of Texas takes the initiative to invest in its future by offering competitive incentives to companies who are creating jobs and driving innovation in Texas; and, WHEREAS, the State has developed the Economic Development & Diversification In-State Tuition for Employees Program to allow employees—and those employees' family members—of a qualified business considering a relocation or expansion of its operations in the State of Texas to pay in-state tuition rates at public institutions of higher education in the state without first establishing residency; and, WHEREAS, Section 54.222(a)(1)(2) of the Texas Education Code allows for a person who registers at an institution of higher education without having established resident status in this state under Section 54.052 is entitled to pay tuition and required fees at the rate provided for residents of this state if: (1) the person or, as determined by coordinating board rule, an adult member of the person's family who resides in the person's household and is a primary caretaker of the person establishes by the institution's enrollment date a residence in this state as a result of the person's or caretaker's employment by a business or organization that, not earlier than five years before the enrollment date, became established in this state as part of the program of state economic development and diversification authorized by the law of this state; and P.R. NO. 23066 03/16/2023 PDL PAGE 2 OF 6 (2) the person files with that institution of higher education a letter of intent to establish residency in this state; and, WHEREAS, a city, county or economic development group covering the Texas region in which the qualified business is considering locating, may apply on behalf of the business, so long as the business is still in the decision-making process to relocate or expand its operations at the applicable site; and, WHEREAS, in accordance with Section 54.222(b)(1)(2) of the Texas Education Code, the Texas Higher Education Coordinating Board, in consultation with the Texas Economic Development and Tourism Office, shall establish procedures to determine: (1) whether a business or organization meets the requirements of this section; and (2) the date on which the business or organization became established in this state as part of the program of state economic development and diversification; and, WHEREAS, the Office of the Governor Economic Development and Tourism (OOGEDT) will consider LG Chem Ohio Petrochemical, Inc., a wholly owned subsidiary of LG Chem, Ltd., pursuant to a letter of support provided by the city, as delineated in Exhibit "A"; and, WHEREAS, the City desires to support initiatives that promote higher education, job creation, and relocation of individuals and families to the State of Texas; and, WHEREAS, the City supports LG Chem Ohio Petrochemical, Inc. application to the Office of the Governor Economic Development and Tourism for consideration in the Economic Development & Diversification In-State Tuition for Employees Program; now therefore, P.R. NO. 23066 03/16/2023 PDL PAGE 3 OF 6 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the Mayor and City Manager is herein authorized to sign the letter of support attached hereto as Exhibit "A". Section 3. That a copy of the caption of this Resolution be spread upon the minutes of the Corporation. READ, ADOPTED AND APPROVED on this day of March, A.D., 2023, at a Meeting of the City Council of the City of Port Arthur, by the following vote: AYES: Mayor: Councilmembers: Noes: Thurman Bill Bartle, Mayor ATTEST: Sherri Bellard, TRMC, City Secretary P.R. NO. 23066 03/16/2023 PDL PAGE 4 OF 6 APPROVED AS TO FORM: U,Citgat_. /9—rt. )12-0(12t5 Valecia "Val" Tizeno, City Attorney APPROVED FOR ADMINISTRATION: Ronald "Ron" Burton, City Manager P.R. NO. 23066 03/16/2023 PDL PAGE 5 OF 6 EXHIBIT "A" THURMAN BILL BARTIE,MAYOR RON BURTON INGRID HOLMES,MAYOR PRO TEM City of CITY MANAGER COUNCIL MEMBERS: f }`. I1 SHERRI BELLARD,TRMC CAL J.JONES CITY SECRETARY THOMAS J.KINLAW III o r t r t h u r KENNETH MARKS VAL TIZENO CHARLOTTE MOSES Te ui. CITY ATTORNEY REV.DONALD FRANK March 30, 2023 M . Adriana Cruz Executive Director Office of the Governor, Economic Development &Tourism P.O. Box 12428 Austin TX 78711 RE: Request for In-State Tuition Waiver Dear Ms. Cruz: This letter is to respectfully request the support for granting a waiver of the residency requirements for eligible LG Chem Ohio Petrochemical, Inc. employees and their immediate family members who would like to attend a state supported college or university, and to do so at in-state tuition rates. LG Chem Ohio Petrochemical, Inc., a wholly owned subsidiary of LG Chem, Ltd., is an ABS Compound facility located in Ohio. LG Chem, Ltd., based in South Korea, is the largest Korean chemical company that is currently looking for opportunities to expand its petrochemical presence in the United States. A site in the City of Port Arthur (Jefferson County) has been selected as a potential location for a manufacturing facility for a semiconductor material called Iso-Propyl Alcohol. It is expected to meaningfully contribute to building a resilient supply chain for the semiconductor industry and on a local level, create jobs and attract other business opportunities: • Creating approximately 51 full-time manufacturing jobs • Paying average wages of approximately $178,850 Occupying approximately 125 acres • Investing approximately $240 million The In-State Tuition Waiver is a vital incentive for this company to assist with the attraction and relocation of key employees. Due to the significant economic impact in growing the petrochemical industry cluster for Jefferson County and the surrounding region; we request a commitment for In-State Tuition Waiver for eligible LG Chem Ohio Petrochemical, Inc employees relocating to Texas. We believe this will help to ensure a successful transition to the region. The company contact is Daniel Yeon/Global Corporate Affairs Associate/daniel.yakichem.com/+82 10 3194 3476. Thank you for your consideration and continued support of economic development in Texas. Sincerely, Thurman Bill Bartie Ronald "Ron" Burton Mayor City Manager