Conroe IDC approves final McKesson incentive payment under 2017 agreement

The Conroe Industrial Development Corporation board approved March 6 authorizing payment under the McKesson Corporation's incentive agreement dated March 1, 2017, the final year of that agreement.

Staff explained that the 2017 agreement included a package of incentives tied to employment and investment milestones and that some earlier incentive agreements had the city covering both the city and county portions of payments. A board member asked how the 2017 agreement differs from the newer incentive the city recently executed with McKesson; staff said the newer agreement does not include paying the county portion, whereas the older agreement did, historically increasing the city’s share by several million dollars.

Board members discussed that the historical practice of the city covering the county portion raised the total incentive in some past cases by approximately $3.4 million for the city plus an additional roughly $3.5 million for the county’s share in older agreements, giving historical context that some prior arrangements were larger than the current city-only agreements. Staff recommended approval of the final-year payment under the 2017 agreement; the board moved, seconded and approved the payment.

Chairman Harrell thanked staff members (including Ms. McCheska and Mr. Scott) for facilitating McKesson’s operations and expansion in the industrial park. The board recorded the approval and moved on to other business.