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Proposal: Integra Mission Critical seeks tax abatement to open manufacturing near IAH
Summary
City staff recommended a tax abatement incentive of about $4 million for Integra Mission Critical LLC to occupy an existing industrial shell near Bush Intercontinental, citing competitiveness and job creation; councilmembers pressed staff on whether the company would have located here absent the abatement.
City economic development staff presented a proposed tax abatement agreement for Integra Mission Critical LLC at the Economic Development Committee meeting on July 17. The company is proposed as a tenant in a Prologis-built industrial shell at 15550 Milner Road near Bush Intercontinental Airport.
Andrew Busker said Integra plans roughly $10 million in tenant improvements and machinery and equipment to convert the 1.2 million-square-foot shell to manufacturing for prefabricated power and cooling products used in data centers. The Mayor's Office recommended a tax abatement incentive around $4 million to make the Houston site competitive with other expansion options the company was considering in Canada and Ohio. Busker described eligible abatable costs as about $4.25 million in tenant improvements and just over $5.5 million in machinery and equipment and said the total abatable value could reach about $7 million but would be limited to a 10-year term or until the cap is reached.
Busker said the property sits in a reinvestment zone (established in 2022 under ordinance 2022-2961 for a previous prospective tenant) that made the site attractive to Integra. "They weren't really interested in Houston until they saw this site had an existing tax abatement," he said.
Councilmembers pressed staff on whether Integra had already begun hiring or construction and whether the company would have located in Houston without the abatement. Busker said negotiations and draft term sheets are under way and that staff could provide more detailed status updates and documentation; he said the company had not committed to Houston before learning of the site's existing tax zone.
No council vote occurred; Busker said the staff-recommended ordinance and separate agreement ordinance would be scheduled for public hearing and subsequent council consideration with tentative timelines moving through late August and into early October for agreements if the process proceeds.
