Orange council approves up to $1.5M in infrastructure incentives and multi-part tax rebates for HEB project

The City of Orange voted Wednesday to provide economic-development incentives to support a proposed HEB at the Northway Retail Center near the intersection of Highway 87 and Interstate 10.

Council approved three related actions: an EDC infrastructure grant agreement not to exceed $1,500,000 to cover site work such as demolition, realignment of Meese Drive and storm-drainage improvements; a Chapter 380 sales-tax rebate allocating 33% of the city's 1.5% local sales-tax portion for up to 10 years (the EDC portion) generated at the site; and a Chapter 380 property-tax rebate of 50% of the incremental ad valorem tax on the property and improvements for up to 10 years. Economic development staff said the incentives give the city negotiating traction with HEB corporate and that the agreements are subject to amendments as the project advances.

Mr. Trahan, who presented the items and said the EDC had formally approved the infrastructure grant earlier that morning, noted the $1.5 million is intended to fund infrastructure needs that would facilitate construction and address stormwater and roadway alignment. Council voted to approve the resolutions by roll call.

The incentives package will be finalized through subsequent documentation and potential amendments; council did not discuss a detailed fiscal-impact analysis in open session at Wednesday’s meeting.