Point Isabel ISD rejects $160 million tax break for Texas LNG project
The Point Isabel school board voted unanimously Monday to deny a tax break application from Texas LNG.
The company applied for a $160 million tax abatement through a state program. Texas LNG is proposing a $4 billion project to build a liquefied natural gas facility about two miles from the H-E-B in Port Isabel.
Several community members spoke at the special board meeting, raising concerns about the tax break and potential pollution from the facility.
"LNG companies should pay their fair share just like everyone else," Port Isabel resident Terry Nunez said.
"They are getting the benefits — we are getting screwed," Kerry Schwartz said. Schwartz has a child attending Point Isabel ISD.
Representatives from Texas LNG spoke at the meeting, claiming the application would not impact the school district's funding.
"There is no loss of tax to the district as a result of this agreement because of the district's recapture situation they are in," a Texas LNG representative said during the meeting.
The company also claimed the project would create 110 jobs and provide a positive economic benefit, according to a review by the Texas Comptroller's office.
The school board decided the benefits did not outweigh community concerns.
"At this time it did not benefit the district in a way that we felt would outweigh some of the concerns brought by the community, and we would not otherwise receive even if they did come to our community," Point Isabel ISD Board President Heather Scott said.
Bekah Hinojosa, co-founder of the South Texas Environmental Justice Network, hand delivered 140 letters from community members to the board. All were against Texas LNG due to possible pollutants from the facility.
"This is a clear message to the LNG companies that the community does not want you — pack up," Hinojosa said.
A Texas LNG spokesperson said in an email the company is "at a loss" with how the school board voted. The company claims a yes vote would have added $15 million per year to the district.
Read the statement in full below:
“A yes vote would have delivered an additional $15 million per year to the Point Isabel ISD. The no vote results in $15 million less for the education of local students. We are at a loss at how school board leadership could have made such a decision. There is no economically rational benefit for this vote, which should be about how to benefit students"
Watch the video above for the full story.