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Council unanimously approves economic development agreement with Messer LLC for new industrial gas facility
Summary
The Bryan City Council approved a development agreement with Messer LLC for an estimated $65 million industrial gases facility; the agreement includes a five‑year incentive structure, a guaranteed minimum ad‑valorem tax payment, employment targets, and utility easement terms.
The Bryan City Council unanimously approved an economic development agreement with Messer LLC that outlines a plan for an industrial gases facility expected to invest roughly $65 million in the Bryan area.
Todd McDaniel presented the proposal and explained the key terms: Messer would construct a liquid air separation facility serving a broad Texas market with an estimated capital investment of approximately $65 million and a target operational timeline that the company hopes to meet by 2027 (city language allowed up to 2029 to account for utility lead times). The agreement would provide a five‑year incentive equal to 55% of ad valorem taxes collected on maintenance and operations value; Messer also agreed to a guaranteed minimum ad valorem tax threshold so that if city ad valorem collections fall below $312,000 in any incentive year Messer will pay a deficit payment to reach that amount.
Other notable elements: Messer will pay for and construct required private electric and sanitary sewer easements and lines, and the agreement includes an employment guarantee with a target of 16 jobs (the agreement imposes a payment if that level is not met). The company will pay easement fees over a 30‑year schedule and will reimburse the utility for reasonable costs to move infrastructure if required by future developments.
Council members asked about performance benchmarks, construction timelines and infrastructure needs. Staff and Messer representatives said the electric line and utility coordination through BTU (the city utility) are the principal infrastructural constraints; Messer is to pay for required utility work. After discussion Councilmember Edge moved to approve the agreement; the motion carried unanimously.
The agreement includes a short quality‑of‑life payment mechanism (a portion of the M&O receipts to be allocated to a local quality‑of‑life pilot) and a deficit payment clause intended to guarantee a minimum revenue floor for the city during the incentive period. City staff said Messer’s payroll figures imply relatively high average wages for the positions anticipated. No litigation, environmental permitting or state air‑permit requirements were discussed as barriers during the presentation; staff noted Messer does not require a state air permit for the proposed equipment type per the presentation.
Next steps: staff and Messer will proceed with utility easements and site work coordination; the agreement’s reporting and performance provisions will take effect according to the contract schedule.
