Orange council approves tax abatement for USG Paper, multiple vendor contracts and board appointment; suspends CenterPoint rate filing on first reading

The Orange City Council approved a package of economic development incentives, maintenance contracts and board actions at its March 11 meeting and gave first reading to an ordinance to suspend rates proposed by CenterPoint Energy.

Council approved a final tax abatement agreement for USG Paper LLC, awarded three annual supply contracts to Coburn Supply Company to support water and sewer maintenance, accepted the resignation of an Orange Economic Development Corporation (EDC) board member, appointed a replacement to the EDC board, and approved revised EDC bylaws. The council also took first‑reading action to suspend CenterPoint Energy’s Gas Reliability Infrastructure Program rates pending further review.

Why it matters: The tax abatement and contracts affect the city’s economic development and utility maintenance budgets, while the EDC appointments and bylaws change who advises the city on business recruitment and incentives.

Council actions and key votes

- Advance‑posting motion (Item 3): Council found that advance posting and notice requirements were met and agreed to limit readings to captions. Outcome: approved unanimously.

- Consent agenda (minutes): Council approved minutes from planning and zoning, EDC and prior council meetings (dates listed in the agenda). Outcome: approved unanimously.

- First reading: ordinance to suspend rates proposed by CenterPoint Energy’s Gas Reliability Infrastructure Program filing (Item 7). City legal counsel recommended suspension “probably until June,” and council approved first reading. Outcome: motion passed on first reading. (Final effective action pending later readings.)

- Resolution approving a Chapter 3.12 tax abatement agreement for USG Paper LLC at 80% for 10 years (final reading). City staff reported a proposed $715,000,000 capital investment and an estimated 120–150 jobs with average salaries in the $81,000 range. Outcome: approved unanimously.

- Final plat: Orange Gardens Phase 2 (13.12 acres, extraterritorial jurisdiction). Planning and Zoning recommended approval 6–0; council approved the final plat. Outcome: approved unanimously.

- Contracts: council awarded three annual supply contracts to Coburn Supply Company (low bidder): sewer service hardware for $75,364.25 (bid 2025‑04); water service hardware for $171,698.79 (bid 2025‑05); and sewer and water clamps for $24,510.15 (bid 2025‑11). Staff said some line items rose roughly 6% from last year and that clamps bid decreased about one‑third after adjusting quantities. Outcome: all three contracts approved unanimously.

- Contract administration note: staff said purchases remain limited to amounts presented to council and that adjustments or change orders would be handled through the city manager’s office with a not‑to‑exceed 25% adjustment process described by Public Works staff.

- Governance and appointments: council accepted the resignation of Jason Rodri from the EDC board effective Feb. 25, 2025; following an internal review and one applicant withdrawal, the council appointed Dustin Yu to the EDC board for a term of March 11, 2025 through Sept. 30, 2025. Outcome: appointment approved unanimously.

- EDC bylaws: council approved revised Orange Economic Development Corporation bylaws (March 2025 revision). Outcome: approved unanimously.

Details and next steps

The USG Paper tax abatement is the final City of Orange step in a larger incentive process; staff said final documentation will be completed after council approval. The CenterPoint Energy suspension was taken on first reading after legal counsel recommended pausing the company’s filing; subsequent council readings or actions will determine whether the suspension remains in force.

Votes at a glance (councilmembers recorded in roll calls during the meeting): Councilmembers Hennigan, Terry Salter, Birch, McKenna, Childs and Chandler voted in the affirmative on the listed items.

No council votes failed or were recorded as abstentions on the motion items covered at this meeting. Ongoing items requiring future council action include further readings on the CenterPoint rate suspension and any subsequent documents related to the USG Paper agreement.