On Tuesday, July 1, the Gray County commissioners held their first meeting for July, with Pampa Mayor Mike Borger addressing the court in the public comment portion of the agenda.
“Today I just wanted to express my appreciation to you gentlemen, you’re doing such a great job,” Mayor Mike said. “It’s such a positive thing in this county to have the leadership that we have in place. I think everyone here would agree that you all are doing a fantastic job. You’re making some tough decisions that you see down the road that are futuristic that are going to bless not just you but your children and grandchildren. So I commend you for doing that. Specifically today as you consider the tax abatement for the data center, I want to encourage you to be bold about that. In the short run, it may not seem like the best thing to do, but I promise you in the long run it will be because the businesses that are going to be generated to that will be added to the tax base, will generate tax revenue, and will make up for the short-run tax abatement. So I think history proves that fact to be true. It’s happened many, many times especially when it’s a large, generational-type change and industry coming to an area. I know you are going to make a wise decision. I trust you and I just wanted to say to you that if I get the opportunity to as mayor of Pampa to approve a tax abatement for a similar thing, I would be for it. I encourage you guys to be bold as you have been and continue on. I thank you for your service.”
The next items on the agenda included considering the minutes of the previous meeting, paying the bills as presented by the County Auditor, and considering any line-item transfers or budget amendments; all were approved.
Next was to discuss and consider accepting an application requesting a tax abatement from Intersect Power for a data center.
“So this is the acceptance of an application for a tax abatement in an existing reinvestment zone,” Judge Porter said. “This is no commitment to the tax abatement, this is only the beginning of the process of considering a tax abatement. Intersect asked me for an expedited review which means that they would like it in 30 days, so by us accepting the application for the expedited review means that we will have a meeting with them on July 15 to consider that expedited consideration and then they are hoping we will be able to consider it after the public hearing on August 1.”
“I have questions,” Commissioner Jeff Haley said. “So this came from Intersect?”
“Yes, sir, it did,” Judge Porter responded.
“Paragraph F to me is a little bit problematic in that it’s ambiguous. It says on the termination on the other tax abatements, it says, ‘if all three of the proposed tax abatements for Phase 1, Phase 2 and Phase 3,’ which my discussion last Monday, they didn’t commit to all three, just one. So I would like to see if we’re just going to do one, they should take the hydrogen plant off the board and it shouldn’t be required for all three which we have no control over. If we commit to the abatement to do it all, then they should commit 100% to remove the hydrogen plant idea. They have to sell the other two phases to whomever.”
“Well in the next 30 days, that would be the negotiation for all of that, right?” Judge Porter said.
“I don’t know that by approving this as it reads what we’re committing to,” Jeff said. “What’s left to negotiate at that point?”
“We’re just approving the application for consideration,” Judge Porter replied. “So there is no commitment.”
“If we’re going to commit to all three, they need to do the same which they indicated they would,” Jeff said. “Is the negotiation over if we approve this? He sat right there and said they would commit to taking that out, but this gives them too much wiggle room.”
“This is just for the posting and application so that it’s public and transparent,” Judge Porter said. “We start the negotiation process over 30 days. This is what they’re proposing, and this is what we’re negotiating for the next 30 days if that’s what the commissioners court decides to do. This is just the application and it can be amended.”
“If we don’t approve the application, there is no discussion. This is just the first brick being laid in the foundation of this tax abatement. It’s their intention to make a change to potentially do away with the hydrogen plant and to also ask for aid in another project.”
Commissioner Jeff Haley asked Gray County Tax Accessor Christy Johnson what the tax base was for the county last year.
“I want to know what the certified tax base was last year because I think it relates to what this proposal is,” Jeff said. “If they use all three phases, they’re estimating $3 billion.”
“Last year for the county, we had a taxable value of $1,656,627,013 and that created a levy of $8,461,534.20,” Christie said. “This year I have an estimated taxable value for Gray County as $1,784,654.44. We’ve done no estimates because we don’t have a rate to start with yet.”
“If they billed out $3 billion, that’s almost double what our current tax value is,” Jeff said. “That’s what we need to know, to have it put into perspective.”
The acceptance of the application was approved.
The next item was to discuss and consider consulting with outside legal counsel to assist Gray County with the application and process for consideration of a tax abatement.
“I believe Vanessa Buzzard has helped us in the past, but I think Commissioner Arrington would like for us to consider another attorney,” Judge Porter.
“I think we should just have another attorney on staff,” Commissioner Lake Arrington said. “This is Jake from the Wetsel Law Firm in Sweetwater has done multiple county abatements with data centers and I think he would be a good negotiator to make the best decisions for the county in terms of an abatement plan and process.”
“We focus primarily on renewables,” Jake said. “I do represent several counties and districts throughout the state. Most abatements are wind and solar, but there has been a big trend now where we are working on data centers. They’re a very niche area, there’s a lot of value to it and people are still trying to figure it all out. I’m happy to answer questions about me, the abatement process, data centers. I’m an open book.”
“What counties have you worked with?” Judge Porter asked.
“We represent Fisher County, Nolan County, Shackelford County, Stephens County, Throckmorton, Stonewall. They’re all rural counties.”
“You say you have worked on some data center projects?” Jeff asked.
“Yes, we are currently working on for Shackelford County that is on an expedited time frame as well. That seems to be the thing: when they apply, they want it done now.”
“So you’ve seen this 30-day notice? Can you speak on that because to me it seems rushed,” Jeff said.
“It has to do with where they’re at in the process and where they’re applying. If they applied a few months ago, it probably wouldn’t be so rushed and they’re probably put up against some deadlines to get things done, which I think more likely than not they’re going to go for the project, and I think that’s what y’all want. You can get it done in a condensed time frame, it’s just short. You have to get the notices done, the reinvestment zone and abatement done in 30 days.”
“In your experience and you practice, is 30 days doable?” Jeff asked.
“It’s doable. It has to be an all-hands effort. We have to be diligent, but it’s doable. Pretty much whatever y’all can think up that is legal and we can get the company to agree to it, you can negotiate for that.”
“Do you have at this point the time to devote to this?” Jeff asked.
“I do, yes, sir.”
“For some of the things you’ve worked on, have you gotten any of them completed yet?” Jeff asked.
“We have the ones completed in Fisher County.”
“So you know what the parameters of the deal looks like then?” Jeff asked.
“Yes, sir. Ultimately I don’t think the abatement is substantially different than what you do on a normal abatement other than the values and thinking through all that.”
“Have you worked with Intersect Power by chance or any of the other projects they’ve done?” Jeff asked.
“I did a lot of the land leases on the wind and the solar side. I was actually talking to them yesterday about a project in Haskell County.”
“So you have a working relationship with them?”
“We do. It’s a cordial relationship and we know their tax team. They’re usually on the other side of every tax abatement.”
“Have you represented Intersect or was it the landowners?” Judge Porter asked.
“The landowners.”
“How many people do you have in your office to help? Is it just you or several?” Commissioner John Mark Baggerman asked.”
“We have five attorneys plus our office staff.”
“So is your boat loaded with all those other counties?” John asked.
“It is, but not all the counties are doing something right now. I think the only active abatements we’re working on are Shackelford County-we’ve got some amendments in Stonewall, but that’s pretty much done. And that’s how it goes. Abatements come and go, so we’re not always doing it for all the counties.”
“We’ve got a long-standing relationship with Ms. Buzzard and she’s local, she’s here,” Judge Porter said. “She’s done a lot of this, but if the commissioners want to change and go to Mr. Lederle, it’s their decision.”
“I think what we’re missing is specific expertise on how to value the data center,” Commissioner Logan Hudson said. “I think he could help us answer those questions.”
“When do we have to make a decision?” Commissioner Baggerman asked.
“Now,” Judge Porter said. “In fact, if the commissioners decided to go with Mr. Lederle, then I would suggest we have some sort of executive session meeting before July 15 so we can all be on the same page as to what we’re trying to go for and hear what we need to do. So what I need is a motion.”
The motion was approved with the court clarifying that Mr. Lederle would only act as co-counsel alongside with Ms. Buzzard for assistance with the application process for the abatement.
Next on the agenda was to discuss and adding a user to LGS for the 31st District Attorney’s office.
“We first introduced Cameron Reynolds as the Assistant District Attorney and he started last month,” DA Franklin McDonough said. “He will be taking the July bar exam and we know he will pass it. I’m excited to have Cameron here. We do have to have permission to change the contract with LGS and we have to have the commissioners approval to amend that contract to add a user to log in to the system.”
The action was approved.
Next was to discuss and consider the purchase of property located at 303 N. Frost for office space for Gray County Juvenile Probation offices.
“We are trying to get out of the Lovett, and this property is the old Winegeart Funeral Home caddy-cornered to us,” Judge Porter said. “The reason we stopped discussing this in the last meeting was because there was a back tax issue that was brought up during the meeting, so we wanted to make sure the contract was taken care of. Mr. Seabourn met with the realtor and the suggested purchase price is $115,000. Anticipating the sale of the Lovett building will probably be of high value on North Hobart. We are going to have to do a few renovations to that property once we get in there, but near the extent of the other building. So Juvenile Probation will go to that property if this is approved.”
The motion to purchase the property at 303 N. Frost for $115,000 was approved.
Next on the agenda was to discuss and consider approving the renovation of the Tax Accessor and Collector’s spare office space on the first floor of the courthouse for Justice of the Peace 2 & 4 offices.
“We have to create three offices inside that space, and thankfully we have our maintenance supervisor who has experience in doing that, so he will be doing everything in-house,” Judge Porter said. “The electrical and some other things for code we will have to contract out for, and he’s telling that will be around $20,000-25,000. The doors that are all wood that would be fitting the courthouse doors are about $3,000 a piece. Wood is fluctuating left and right for studs and sheetrock is fluctuating also, so we whatever we get for payment won’t be the same a month.”
“Rusty is guaranteeing me that this is one of the projects that he is able to do and won’t have to have a lot of help with. We’re going to have to figure out the offices, which is a discussion we will have with Judge Ogle about how to go about that as soon as we approve doing these renovations.”
A motion for a $25,000 budget to renovate the office was approved.
Next was to consider and approve the renovation of the Sheriff’s Department meeting room for office space for Pct. 1 & 3 and Pct. 2 Constables.
“So in the meeting room, we can build and 11X22 foot room that will be divided with two doors, so each will have an office in the back of that meeting room,” Judge Porter said. “It is fine to do that, they have plenty of space. And that way, all law enforcement will be in one spot. We are looking at a budget of $15,000 to do that because we are creating two rooms.”
A motion for a $15,000 budget to renovate the Sheriff’s Department meeting room was approved.
Next was to discuss and consider the abandonment and sale of the property known as the Lovett Building located at 1146 N. Hobart.
“I don’t want to put that building up for sale until we have everybody out of there,” Judge Porter said. “There are a lot of confidential information stored in that building with Juvenile Probation in the judge’s office, and nobody will be able to access that side until Juvenile is out. That’s how protected it is.”
“Once it’s emptied, we have two people interested in it as is. I’m hoping to have this done by August 31.”
A motion was made to declare the Lovett Building as a surplus property from the county, ensuring that all personnel would have time to relocate and all confidential files and information would remain protected during the relocation process.
The last item on the agenda was to discuss and consider the purchase of a belly dump trailer by Precinct 4 from available budgeted funds from capital purchases line item; it was approved.
With no further items to discuss, the meeting was adjourned.
