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Council ties USG Paper tax-abatement timeline to air-permit approval
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Summary
Council approved an amendment to a Chapter 312 tax-abatement agreement with USG Paper LLC to allow construction timing to be contingent on air-permit approval; staff said the change gives flexibility as the company applies for an air permit expected in Q2 2026.
The Orange City Council on March 24 approved an amendment to a Chapter 312 tax-abatement agreement with USG Paper LLC that links construction timing to the company’s air-permit approval.
City staff and the developer’s consultant said USG inherited an existing air permit and must file an amendment; the amendment to the tax-abatement agreement provides 'wiggle room' around the unknown permit approval timeline. Consultant Sean Rooney (introduced by staff) told council that USG planned to submit permit applications in the second quarter of 2026 and that construction could begin in 2026 depending on approval timing, with anticipated construction completion by 2028 and planned full operations in 2029 if schedules hold.
City staff noted the amendment does not change the substance of the abatement but aligns the timing requirement with the air-permit process; the council approved the amendment. A company representative introduced as the new plant manager (Steve Morris) attended but was asked not to make official public comments pending USG’s direction.
Council members expressed support for the project returning to operation, noted potential neighborhood benefits such as reduced odor because pulping will no longer occur, and offered city assistance for local projects and coordination where appropriate. The matter passed on a recorded motion.
