The Sugar Land Economic Development Corporation on Dec. 9 approved a $1,000,000 performance‑based incentive to Hope Biosciences LLC to support a planned $2,000,000 expansion of the company's GMP manufacturing and laboratory facilities in Sugar Land.
City staff recommended the incentive after a presentation from Hope Biosciences founders and Jennifer Alexander, the city's business development manager. Donna Chang, HopeBio's CEO, told the board the company conducts FDA‑regulated research and manufactures cell therapies at its Sugar Land site and has supported ‘‘over 50 FDA‑authorized clinical research protocols’’ and two Department of Defense‑funded studies.
The agreement approved by the board ties payments to performance. Staff said the package would be paid over five fiscal years, with the first payment of $200,000 scheduled for March 2027, contingent on verification that Hope Biosciences completes $2,000,000 in capital improvements, retains 25 existing full‑time employees and creates 15 new full‑time positions over five years. Staff reported the average annual salary benchmark for the new positions as $61,240 and characterized the project as a retention strategy intended to catalyze a local life‑sciences cluster.
Board members pressed staff and HopeBio representatives on several details. One member observed, ‘‘you cannot live in Sugar Land on $61,000 a year,’’ and asked whether the salary benchmark should be higher and whether incentive amounts or salary thresholds should be indexed to inflation. Staff replied that $61,240 is a baseline average and that agreements are updated if state or county benchmarking changes; staff also said the number is a minimum that could increase as the company grows or secures FDA approvals.
Several members sought stronger taxpayer protections in the contract, asking about clawback mechanics and whether the incentive should be zero if no jobs are created. Staff described a formula in the agreement that reduces payments proportionally if job or investment targets are unmet and noted that past incentive agreements have been adjusted rather than fully recouped. A staff representative summarized the project’s financial return as about 0.9% but emphasized the strategic value of retention and brand impact for attracting other life‑science firms.
Rob Betcher (participating online) registered a dissenting vote. The chair announced the motion passed and approved the incentive subject to the performance agreement and verification processes. Staff said all standard compliance measures will be applied, including documentation of capital expenditures and employment verification before each payment is released.
The board and staff said they expect to continue implementing a broader life‑sciences strategy developed in prior studies and will return with further strategy details to the council in February.