Young County signs engagement with CapEx Resource Group to review proposed solar abatement; public raises tax and valuation concerns

Young County has signed an engagement letter with CapEx Resource Group to evaluate a proposed tax abatement tied to a large solar project proposed by Titus Tabadares, county staff told the commissioners court.

A county staff member said the consultant is "officially on the job," has requested documents including the abatement application and county abatement criteria, and will present proposed changes to the county's abatement policy. The staff member added CapEx requested a kickoff meeting and could appear in person next week.

Commissioner Bradley, who led an extended discussion, said the consultant flagged a major valuation issue: "they are underbidding themselves on the value of it by nearly 200,000,000," and that CapEx believes the taxable value could be materially higher if properly assessed. Bradley and other speakers discussed how an abatement could be structured and why the county is considering paying a consultant rather than hiring specialized tax lawyers.

County staff explained the proposed consultant fee structure: CapEx would be paid $30,000 upon successful procurement of an abatement; Titus has committed $20,000 toward that cost, with the remainder subject to negotiation. The county official said, "They're gonna charge $30,000 that will be basically put in... it's only payable on a successful upon getting an abatement." If the negotiation on contractor fees fails, staff said the county would not pay out of county funds.

Speakers debated the fiscal tradeoffs of offering an abatement. Supporters said abatements can be negotiated to require local capture of sales tax, set aside decommissioning funds and phase in value so the county has predictable revenue. Skeptical residents and at least one commissioner cautioned that abatements reduce near‑term property tax receipts and can complicate long‑term tax rates. One critic said, "If this company comes in... are we paying them to look back at, okay, now let's cut the actual property taxes in the county?" Staff replied the goal is to capture investment that otherwise would not create local sales tax and to structure a pilot/payment or contract terms that protect county interests.

Staff said CapEx also flagged the benefit of using an abatement negotiation to require the company to declare Young County as its local sales‑tax delivery point so locally collected sales taxes are not routed elsewhere. A staff presentation included several valuation scenarios, possible abatement percentages mentioned in discussion (one figure cited was about 30 percent) and the consultant's aim to provide a more complete valuation analysis than typical abatement legal reviews.

No formal abatement was approved at the meeting. The consultant is engaged to do analysis and return with recommendations; the county will host a kickoff meeting and is expected to present the consultant's findings in a future session.

Ending: County staff said they will place the consultant on next week's agenda for an in‑person kickoff and return with findings; no abatement terms were approved at this meeting.