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Orange council approves Chapter 312 tax abatement for USG Paper project after public hearing
Summary
The City of Orange held a public hearing and approved a Chapter 312 tax abatement for USG Paper LLC, tied to a reinvestment zone around the former International Paper site. Staff and council said the project is expected to involve large capital investment and create about 100 jobs; the council approved an 80% abatement for 10 years.
The City Council of Orange on Feb. 25 voted to approve a Chapter 312 tax abatement agreement for USG Paper LLC and confirmed the boundaries of a Reinvestment Zone that covers the former International Paper site.
The approval follows a public hearing on a proposed reinvestment zone for property at 1750 IP Way Road and a staff presentation that said the applicant proposes roughly $715,000,000 in new real and personal property improvements and “roughly 100 plus jobs” when the site becomes operational. City staff said the EDC previously approved an incentive package and that the requested tax abatement was an 80% exemption over 10 years based on annual appraisals.
The tax-abatement request was described by city staff member Jay Trahan as following the state-recommended Chapter 312 review standards: enhancement to the property tax base, job creation and potential sales-tax benefits. Trahan told council that the project team had worked with city staff, county representatives and the Governor’s Office of Economic Development since the site announced its closure in 2023.
Mayor Spears, speaking during the public hearing period, praised staff and the project team and said, “I am not that good at math, but I know that a $400,000 investment for a $715,000,000 return is pretty good.”
After closing the public hearing, council approved the resolution on a voice vote. The motion passed with recorded ayes from Councilmembers Mary McKenna, Childs, Hennigan, Birch, Chandler and Salter and Mayor Spears.
Council and staff said additional details about sales-tax revenue and the project’s operational timeline will be determined once the facility is active. Staff said the EDC previously approved infrastructure incentives described on the record as a total of $400,000, with $200,000 each year for infrastructure improvements at the site.
The council’s approval cleared the way for a final reading at a subsequent meeting and execution of the agreement, after which staff said they would return with the signed documents.
Votes at a glance: the resolution approving the Chapter 312 tax abatement (80% for 10 years) — approved (unanimous voice vote).
