Council approves amendment to MillScale Chapter 380 agreement, reduces job requirement to eight
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Lockhart City Council voted 6‑0 to amend a Chapter 380 economic development agreement for MillScale, lowering the required job creation threshold from 15 to 8 to match a concurrent EDC performance agreement; the company has completed a 10,000 sq. ft. facility and remains in operation.
The Lockhart City Council approved Resolution 2025‑1 on Jan. 7 to amend a Chapter 380 economic development agreement with MillScale, reducing the required number of jobs in the agreement from 15 to 8 and aligning the city rebate terms with a matching economic development corporation (EDC) performance agreement.
Holly Malish, Lockhart economic development director, told the council that the change mirrors an amendment the EDC made in November and reflects MillScales revised, more conservative employment forecast. "They mirror each other, and they're all gonna be around 8 jobs," Malish said, adding that the company had built its 10,000‑square‑foot facility and "they are being profitable. They are making sales."
Nut graf: The amended terms reduce the job creation target the company must meet to qualify for the city's three‑year ad valorem tax rebate under Chapter 380. Malish said the amendment preserves the city's existing tax revenues tied to MillScale's property; she told council the change primarily affects the employment target rather than the company's tax payments.
Council action: A motion to approve Resolution 2025‑1 was made by Councilmember Lisonbee and seconded by Councilmember Castillo; the motion passed by a voice vote of 6‑0. The council packet and Malish's presentation indicate the EDC agreement supplied a $50,000 transformer payment and a 50% rebate on the EDC half‑cent sales tax for five years; the citys Chapter 380 offered a three‑year ad valorem rebate and is now amended to match the lower job target.
Malish and the company manager, Matthew Johnson, were present for questions. Councilmembers asked about fiscal implications; Malish said the company's property tax base remains intact and that reducing the required job count does not lower current property tax revenue. No members voted against the amendment.
Ending: The resolution, listed as Resolution 2025‑1 in the agenda, passed 6‑0. Council did not direct further action at the meeting.