The Brazoria County Commissioners Court approved a tax abatement for Shale-Inland Holdings (SIH) to construct a plant on Main St., across from Pearland High School, at its Regular Meeting on Tuesday (June 9).
The abatement is a seven-year sliding scale agreement, with the first three years set at 100 percent. The City of Pearland has a 10-year sliding scale agreement with the company.
“This is a stellar project that creates 80 new jobs. We did not give the farm away and the taxpayers actually win,” – Commissioner Stacy Adams said.
Shale-Inland Holdings (SIH) was formed in March 2012 through the combination of HD Supply’s Industrial PVF segment and Shale-Inland, a private fabrication and distribution services business with the founding businesses dating back to 1974 and with some founding owners still involved in management.
American Commercial Contractors will design/build the needed facilities for the SIH and will purchase the land from the City of Pearland for the project, which is located in the City of Pearland Reinvestment Zone #23.
The City of Pearland’s Tax Abatement Agreement is a three-party agreement between the City, Shale-Inland/Southwest Stainless and American Commercial Contractors.
Once the facility is completed, American Commercial will lease it to Shale-Inland.
According to Commissioner’s Court documents, “The company is planning to consolidate eight branch locations, currently in the greater Houston area, into a single location, which will bring the executive management team together with four division operations.
“The project will involve a single concrete tilt wall building with total square feet of 210,000 and will include office space, air conditioned shop space and warehouse space.
“The project will initially involve 11 acres of outdoor storage for stainless and high nickel alloy pipe and flanges with additional acreage contemplated for growth.
“Initial headcount planned for the facility will be 80 employees and will include executive management, sales, operations, administrative, accounting and warehouse personnel.
“The company will be making $14.5 million of improvements to 46 acres of raw undeveloped land. The improvements will include one concrete tilt wall building totaling 210,000 square feet including 20,800 square feet of office space; 20,000 square feet of air-conditioned shop space; and the remainder warehouse space.
“The building will include $2 million of racking and equipment, $1 million of furniture, and $575 thousand of computer equipment. The building will be situated on approximately 40 acres of land with 8 acres of unpaved pipe yard and 3 acres of paved pipe yard.
“Tax abatement is also being sought for $80 million of high nickel alloy and stainless steel pipe, flanges and fittings inventory.
“Shale-Inland will be utilizing the City of Pearland’s public water supply for potable water and the City’s wastewater systems for sewage. All systems installed will meet State and Local codes and shall be inspected as such. The facility will have minimal water usage as none is used in the manufacturing process.
“Storm water will be impounded on site and then released to Brazoria County Drainage District 4 facilities. All storm water detention will be designed and then approved by the City of Pearland and meet all codes.”
For more information, visit AgendaBrazoria-County.com.
