Port Arthur council authorizes letter to back Jefferson County TIRZ for Project Labrador

PORT ARTHUR, Texas — At a March 18 special executive session, the Port Arthur City Council voted to authorize the mayor to sign a letter stating the city will allow Jefferson County to proceed toward establishing a tax increment reinvestment zone, or TIRZ, for a proposed industrial facility called Project Labrador.

The action followed an executive-session request when the city attorney said, "Thank you, mayor and city council, for executive session. The city attorney seeks action on project Labrador." Council member Frank then moved "to authorize the mayor to sign a letter stating that the city agrees to allow Jefferson County to proceed to establish and create a tax increment reinvestment zone for a new industrial facility known as project Labrador. And that project Labrador must negotiate with the city for any possible city tax abatement in said zone." An unidentified council member seconded the motion. The council approved the motion in open session; the transcript records that the motion "is approved" after a voice vote.

The council’s motion does not itself grant any city tax abatement. The motion expressly conditions any city tax abatement on a separate negotiation between Project Labrador and the city.

City officials also reported that the executive session addressed several other matters. According to the record, council members and staff reviewed a proposed ground lease with Diligence Offshore Services LLC for tracts on Pleasure Island described in the transcript as containing approximately 13.8 acres, 900 acres and 1,361 acres for the development, construction and operation of wind and solar energy generation facilities, an energy industrial district agreement, and pending litigation identified as "State of Texas versus City of Fort Arthur, Texas, cause number D1GN-twentyFive-zero-zero-one285" in the 200th District Court in Travis County. Those items were discussed in executive session; the transcript shows no open-session vote on them during this meeting.

Mayor Barty presided over the meeting. The council adjourned the executive session and returned to open session to record the Project Labrador action; the transcript does not record a roll-call vote tally or the name of the council member who seconded the motion.

Next steps described on the record are limited to authorizing the mayor to sign the letter to Jefferson County and the requirement that Project Labrador negotiate with the city on any potential city tax abatement. The transcript does not specify deadlines, financial terms, or a schedule for further council review.

The items discussed in executive session are governed by the Texas Open Meetings Act provisions the council cited on the record (chapter 551 of the Texas Government Code, including sections 551.071, 551.072, 551.073, 551.074, 551.076 and 551.087).