Starr County OKs 10-year abatement framework and PILOTs for battery-storage projects

Starr County commissioners on Nov. 12 approved tax-abatement agreements tied to proposed battery storage projects that county staff negotiated to include payments in lieu of taxes (PILOTs) rather than traditional property-tax collections.

Presiding official (Speaker 1) told the court the county will abate 100% of property taxes for the first 10 years but will receive negotiated PILOTs instead. "The Bombora, they'll be paying us a total of 260,000 a year, in lieu of taxes," Presiding official (Speaker 1) said, adding that another project (Flores) would pay about $270,000 a year. "So between both, they will pay us about half a million dollars without it going to our taxes," he said.

Staff and commissioners discussed the mechanics: the appraisal district will determine value, PILOTs are based on negotiated values, and if a company challenges appraisal values the negotiated payment protects the county’s expected revenue stream for the 10-year period. Staff said the industrial foundation negotiated the abatements and that the amounts are dependent on final investment and appraisal outcomes.

Commissioners asked for additional construction and project details so future meetings can include clearer presentations; county staff acknowledged those requests and said they would provide information to the board before subsequent action. The court approved the abatements after motion and second.

The action is an economic-development decision that trades conventional property-tax revenue for predictability via negotiated PILOT payments over a 10-year abatement window. The court did not adopt an ordinance in the meeting transcript; staff indicated details would be finalized with parties and the appraisal district and presented to the board as needed.