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BISD board finds Lucite in breach of tax-limitation agreement, moves to recover about $2.36 million
Summary
After closed-session review, outside counsel told the board Lucite Incorporated acknowledged it failed to maintain a viable presence; the board voted 6–0 to issue a breach notice and seek repayment of tax benefits, penalty and interest totaling about $2,357,217.72.
The Beaumont Independent School District board voted unanimously to issue written notice that Lucite Incorporated is in breach of its Chapter 312 tax-limitation agreement and to pursue repayment of the tax benefits it received.
Outside counsel Molly Hanley told trustees that Lucite stopped operations in 2022 and did not maintain the presence required by the district’s agreement. Hanley summarized closed-session discussions and recommended the district seek return of the tax savings plus penalty and interest. Counsel presented the figure the district intends to invoice: approximately $2,357,217.72.
The motion to issue the breach notice was made and seconded during the open meeting; the board approved the recommendation by voice vote, recorded as 6–0. Counsel said if the board determines breach, the district will invoice the company and pursue collection consistent with the agreement.
Hanley said the company had the opportunity in 2022 to resume operations to meet the agreement’s workforce and presence requirements but acknowledged it was not in compliance and “threw themselves on the mercy of the board” when asked to explain.
Next steps: administration and counsel said they will issue the written notice of determination of breach and follow the contract remedies described by the district’s counsel. The board did not discuss settlement terms in public after the vote.
(Reporting note: counsel’s summary and the board vote appear in the meeting record during the closed-session report and the subsequent open-session motion; the district provided the dollar figure during counsel’s statement.)
