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Freeport to join Lake Jackson, Clute in hiring Hyde Kelly for industrial-district negotiations

Freeport City Council · July 21, 2026
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Summary

The council approved a resolution authorizing joint legal representation with Lake Jackson and Clute to advise on industrial‑district agreement negotiations involving Dow and BASF; staff said fees will be split among the three cities and the firm will advise on potential termination or annexation options if negotiations fail.

The Freeport City Council voted unanimously on July 20 to engage the law firm Hyde Kelly for joint legal representation with the cities of Lake Jackson and Clute on industrial‑district agreement negotiations.

Dr. Kelly (staff) told the council the engagement would provide specialized counsel if negotiations over the industrial district agreement with firms such as Dow and BASF are unsuccessful or if an existing agreement must be terminated. The firm will also advise on potential annexation and related land‑use actions. "Staff recommends approval of the resolution engaging Hyde Kelly as special counsel," Dr. Kelly said.

Councilman Davis moved to approve the resolution; a second was recorded and the council approved the engagement by voice vote. Dr. Kelly said the fee structure is included in the meeting packet and that costs will be split three ways, with Lake Jackson initially paying the bill and Freeport and Clute reimbursing Lake Jackson.

Council discussion emphasized the importance of securing experienced legal representation because large industrial parties have extensive legal resources. Councilman Davis said the negotiation is "very important for the city" and described the need to avoid unfavorable contract terms.

The council did not disclose dollar amounts for the engagement during the public meeting beyond referencing the packet’s fee structure; staff said specific hourly rates vary depending on which personnel perform work. The engagement authorizes the city manager to execute the agreement and designates Hyde Kelly as attorney in charge for joint representation.