Harrison County OKs Eastman tax abatement to lure proposed $850M project

Longview Journal 
By Robin Y. Richardson ryrichardson@marshallnewsmessenger.com
April 01, 2023 at 04:37AM

MARSHALL — The Harrison County Commissioners Court has approved a property tax abatement agreement between the county and Eastman Chemical Co. to help bring the company's polyester plastic recycling project to its Longview complex.

Eastman's Longview plant is the Texas finalist for the project, although sites in other states are being considered. Company officials said no decision has been made.

The project would bring $850 million in capital investment.

Harrison commissioners on Tuesday approved a two-fold Chapter 312/381 agreement that allows for a 17-year property tax incentive starting in 2023.

The tax abatement is for proposed new construction on the west side of the county, adjacent to the plant’s Longview property. it also includes construction of a methanolysis plant to produce polymers and chemical intermediates from recycled plastic waste.

“This is recycling plastics,” said Rush Harris, Marshall Economic Development Corp. executive director. “As you know, plastics recycling is such a need. This breaks it down to a native form and allows us to be a leader in that field.”

Eastman representatives previously explained that the process is a “polyster renewal technology” called “methanolysis.”

The company said it provides “true circularity into both durable and food-grade applications for hard-to-recycle polyester plastic waste that is typically incinerated, sent to a landfill or ends up in the environment.”

“The hard-to-recycle waste is broken down into its molecular building blocks and then reassembled to become first-quality material without any compromise in performance,” according to company spokeswoman Kristin Parker. “With the technology’s inherent efficiencies, polymers can be produced with greenhouse gas emissions substantially lower than traditional methods. These processes are purely material-to-material and do not process plastic waste for fuel or energy.”

“To do the project here in Harrison County also requires an investment of public infrastructure, so we need some road built,” Harris said. “It’s about over $7 million worth of road," adding that construction ultimately would be at no cost to the county and will allow truck traffic to work around main traffic in the surrounding neighborhoods.

Harris said the abatements would occur during a 10-year period. The additional piece, concerning the rebate of the final cost of the road construction, will occur in years 11 through 17.

“You’re actually going to get a regular property tax abatement for years one through 10,” he said. “The (agreement for years) 11 through 17, again, allows us to compensate for that additional road.

“We’re essentially providing seven years of 100 percent (tax abatement) and then down to 60 percent (tax abatement) for the remaining through (year 10). The 381 agreement is basically a reflection of all the improvements that were added. And we’re basically saying 40 percent of the ad valorem value we’re going to rebate that back for years 11 through 17,” he said.

The estimated net benefit during a 17-year period for Harrison County would be $6.3 million.

The project also would create 204 new jobs with starting annual salaries of $89,441.

“The other big winner — I would say — is the Hallsville school district,” he said, noting the district's net benefit would be about $18.4 million.

“I should also mention this has turned into a regional project,” Harris said. “I’m assisting on the part of Harrison County, but also MEDCO is providing an incentive, (Longview Economic Development Corp.) is providing an incentive and the city of Longview, as well.”