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Council amends tax-abatement deed for A & A Texas Capital, strikes narrow product restriction but keeps recapture of incentives
Summary
The council adopted a resolution acknowledging that A & A Texas Capital met initial abatement conditions and approved a material correction to strike language that limited use of the property to wood-preservation manufacturing; other performance and recapture clauses for incentives remain in force.
The Crockett City Council approved a resolution finding that conditions in the city’s tax abatement and deed have been satisfied by A & A Texas Capital LP and approved a material-correction deed and a first amendment to the company’s tax abatement and incentive agreement.
City staff and the company’s CFO, Gary White, presented background showing the developer met early conditions in the agreement: the company began construction within the required timeframe and had already invested more than the originally stated $3,630,000 threshold. Staff told council the company has invested over $7 million so far.
The specific change approved by council removes a restrictive clause that would have allowed recapture of the property if the owner used the real property for manufacturing outside a narrowly defined list — namely materials that “enhance the durability of wood products.” Council approved striking that clause so the deed would not be interpreted to prohibit the company from expanding into other manufacturing lines while retaining recapture remedies tied to unpaid incentives.
Council discussion included concern about accountability: members asked how the city would enforce job-creation and other performance provisions if the business later closed or sold the property. Staff responded that the remainder of the recapture clauses—those requiring repayment of tax abatements and incentives if performance metrics (job counts, capital investment commitments, years of operation) are not met—remain intact and enforceable.
Why it matters: The amendment reduces a narrow operational constraint in the deed that could have limited a company’s ability to add products or expand operations, while preserving the city’s ability to recapture tax incentives if the company fails to meet agreed performance conditions.
Next steps: Staff to prepare the material-correction deed and first amendment documents for execution by the mayor and recordation with the county clerk as appropriate.
