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Commissioners move to terminate 2019 tax abatement for Monte Alto Windpower after company defaults
Summary
Cameron County staff recommended and the court approved termination of a Chapter 312 tax abatement agreement with Monte Alto Windpower LLC after the company failed to meet contract requirements, including filing required affidavits and making payment-in-lieu amounts.
Cameron County staff recommended, and the Commissioners Court voted May 20 to terminate a Chapter 312 tax abatement agreement with Monte Alto Windpower LLC, citing default on contractual duties.
Economic development staff said the original abatement was approved in September 2019 and amended in November 2020; the incentive period would have covered 2022–2031. The agreement called for a minimum capital investment of $50 million, six permanent jobs at specified salaries, and annual payments in lieu of taxes (PILOT) of $75,000.
County staff told the court that Monte Alto Windpower had not started the project, had not submitted required affidavits and had not made any PILOT payments. Staff also reported repeated unsuccessful attempts to contact the company and said certified written notice of default was mailed April 8, 2025 with no response. Based on those facts staff recommended termination under the agreement’s default provisions.
The court voted to terminate the abatement agreement, with the motion made subject to final legal review. The termination was recorded in the court minutes and staff said it would proceed with final legal steps to rescind the abatement.
Commissioners asked staff whether other abatements faced similar defaults; staff said this was the only active abatement in default at present.
