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Home My WebLink AboutPR 24915 NOMINATION OF MOTIVA ENTERPRISES LLC (REFINERY OPERATIONS) FOR TEXAS ENTERPRISE ZONE PROGRAM City of or?/ rt,5r 7 www.PortArthurTx.gov DEPARTMENT OF DEVELOPMENT SERVICES DIVISION OF PLANNING AND ZONING INTEROFFICE MEMORANDUM Date: April 27, 2026 To: The Honorable Mayor and City Council Through: Ronald "Ron" Burton, City Manager, CPM From: Pamela D. Langford, Assistant City Manager— Operations/Director of Development Services rab1 RE: P.R. NO. 24915 — Nomination of Motiva Enterprises LLC (Refinery Operations) for the Texas Enterprise Zone Program Introduction: This agenda item seeks City Council approval of Proposed Resolution No. 24915 nominating Motiva Enterprises LLC for its Port Arthur refinery operations to the Office of the Governor, Economic Development and Tourism, through the Economic Development Bank, for designation as a Qualified Business and Enterprise Project under the Texas Enterprise Zone Program, pursuant to Chapter 2303 of the Texas Government Code. This nomination is specific to the refinery operations and is separate from the company's chemical plant nomination presented under a different agenda item. Background: The City of Port Arthur adopted Ordinance No. 25-11 on February 11, 2025, electing to participate in the Texas Enterprise Zone Program and establishing local incentives following a duly noticed public hearing. The incentives offered under this nomination remain unchanged and consistent with that ordinance. Motiva Enterprises LLC operates one of the largest refineries in the United States and serves as a critical component of the local and regional economy. The company was previously designated as an Enterprise Project in May 2018 and continues to meet eligibility requirements, including maintaining substantial full-time employment and "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 supporting workforce opportunities for economically disadvantaged individuals, enterprise zone residents, and veterans. This nomination applies specifically to the refinery operations located at 2555 Savannah Avenue and is being submitted as a distinct project for the June 1, 2026, application round. The separation of this project from other Motiva operations ensures compliance with program requirements and provides clarity regarding the scope of the investment and employment commitments associated with this nomination. The proposed designation supports continued capital investment, job retention, and long-term operational stability within the refinery. Budget Impact: There is no direct fiscal impact to the City associated with this nomination. The designation allows the company to seek state sales and use tax refunds as authorized by the program. Recommendation: It is recommended that the City Council approve P.R. NO. 24915, nominating Motiva Enterprises LLC (refinery operations) to the Office of the Governor, Economic Development and Tourism, through the Economic Development Bank, for designation as a Qualified Business and Enterprise Project under the Texas Enterprise Zone 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. 24915 05/0512026 EGIPDL PAGE 1 OF 5 RESOLUTION NO. A RESOLUTION NOMINATING MOTIVA ENTERPRISES LLC FOR ITS PORT ARTHUR REFINERY OPERATIONS TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT AND TOURISM (OOGEDT) THROUGH THE ECONOMIC DEVELOPMENT BANK FOR DESIGNATION AS A QUALIFIED BUSINESS AND ENTERPRISE PROJECT UNDER THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE. WHEREAS, the City of Port Arthur (the "City") previously passed Ordinance No. 25-11 on February 11, 2025, electing to participate in the Texas Enterprise Zone Program, and the local incentives offered under this resolution are the same on this date as were outlined in Ordinance No. 25-11; and, WHEREAS, the Office of the Governor Economic Development and Tourism (EDC), through the Economic Development Bank (Bank), will consider MOTIVA ENTERPRISES LLC as an enterprise project pursuant to a nomination and an application made by the City; and, WHEREAS, the City desires to pursue the creation of the proper economic and social environment to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and other economically disadvantaged individuals; and, WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), MOTIVA ENTERPRISES LLC has applied to the City for designation as an enterprise project; and, P.R. NO. 24915 05/05/2026 EG/PDL PAGE 2 OF 5 WHEREAS, the City finds that MOTIVA ENTERPRISES LLC meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: 1 . MOTIVA ENTERPRISES LLC is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction located outside of an enterprise zone at 2555 Savannah Avenue and at least thirty-five percent (35.0%) of the business' new employees will be residents of an enterprise zone, economically disadvantaged individuals, or veterans; and 2. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and 3. The designation of MOTIVA ENTERPRISES LLC as an enterprise project will contribute significantly to the achievement of the plans of the City for the development and revitalization of the area; and WHEREAS, the City finds that MOTIVA ENTERPRISES LLC meets the criteria for tax relief and other incentives adopted by the City and nominates MOTIVA ENTERPRISES LLC for enterprise project status on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity, and stability; and WHEREAS, the City finds that it is in the best interest of the City to nominate MOTIVA ENTERPRISES LLC as an enterprise project pursuant to the Act. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: THAT the facts and opinions in the preamble are true and correct. P.R. NO. 24915 05/05/2026 EG/PDL PAGE 3 OF 5 THAT the findings of the City and its actions approving this resolution, taken at the council meeting, are hereby approved and adopted. THAT MOTIVA ENTERPRISES LLC is a "qualified business", as defined in Section 2303.402 of the Act, and meets the criteria for designation as an enterprise project, as set forth in Section 2303, Subchapter F of the Act. THAT the enterprise project shall take effect on the date of designation of the enterprise project by the agency and terminate five years from such effective date. THAT a copy of the caption of this Resolution is spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED this day of May, A.D.2026, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: MAYOR COUNCILMEMBERS: NOES: Charlotte M. Moses, Mayor ATTEST: Sherri Bellard, TRMC, City Secretary P.R. NO. 24915 05/05/2026 EG/PDL PAGE 4 OF 5 APPROVED AS TO FORM: Roxann Pais Cotroneo, City Attorney APPROVED F•i DMINIS ' 'ATION: AV, Ronald "Ron" Bu * City Manager l 1 � GZ1 11 1•� cn Pamela D. Langford, Assistant City Manager-Operations/ Director of Development Services P.R. NO. 24915 05/05/2026 EG/PDL PAGE 5 OF 5 EXHIBIT "A" MDTIVA Heather Benedict Tax Director 500 Dallas Street Houston, TX 77002 April 16,2026 The Honorable Charlotte M. Moses,Mayor City of Port Arthur 444 4th Street Port Arthur,Texas 77640 Dear Mayor Moses: I am pleased to present the following relevant information required by Chapter 2303 of the Texas Government Code for your consideration of nominating Motiva Enterprises LLC("Motiva")as Enterprise Projects("EP")for its refinery and chemical plant in Port Arthur. As you know,the Texas Enterprise Zone("TEZ")program provides state sales/use tax refunds for capital investment and job creation/retention and does not require any expenditure of city funds or tax revenues. Motiva meets the requirements of the TEZ program because it is in qualifying industry as defined by the State and in good standing with all applicable local,state,and federal regulations. Motiva expects to invest an estimated $250 million associated with our refinery located at 2555 Savannah Avenue, and $150 million associated with our chemical plant located at 4241 Savannah Avenue. This investment will help retain existing jobs in Port Arthur, and the EP benefits will enhance Motiva's ability to reduce costs,create efficient operations and maintain our global competitiveness. In accordance with the requirements of the TEZ Program, Motiva expects to retain full-time jobs for which it will receive a benefit under the TEZ program. Motiva takes pride in being an active and supportive corporate citizen in Port Arthur. We are excited about our continuing investments in the community, and we look forward to continuing our mutually supportive relationship with the City of Port Arthur and to working with you and the State of Texas in the corning years. If you have any questions,please do not hesitate to contact our consultant on this matter,Eric Geisler at(713)665-7200. Sincerely, Heather Benedict Tax Director Cc: Ron Burton,City Manager Roxann Controneo,City Attorney Pamela Langford,Assistant City Manager