Published August 11, 2008 09:28 pm -
Sunoco receives abatement from Nederland
The Port Arthur News
NEDERLAND
—
By Mary Meaux
The News staff writer
NEDERLAND — Randy Hutchinson, tax manager of Sunoco Partners Marketing and Terminals L.P., visited Nederland City Council again requesting a tax abatement.
Hutchinson last visited the city in 2004 and this time he came bearing news.
The tax manager told councilmembers Sunoco is in the process of a “mammoth” project totaling more than $50 million for the construction of five new, very large storage tanks.
Three of the tanks, he said, are associated with the Motiva expansion project and will connect Sunoco’s terminal to Motiva while the other two tanks will be built on specifications and be used with the current customer base.
The project, he explained, will not replace any of the 15 million barrel capacity they currently have.
The facility has 81 employees at the terminal and by completion of the project in 2009 will have about 95 employees.
Cheryl Dowden, interim city manager/finance director, said the current agreement expires in 2010. Sunoco is in the city’s industrial district but outside city limits.
The abatement currently in place since 2004 has the business paying the city 75 percent of the full tax rate for new assets. During the first five years Sunoco paid zero of that figure and in 2009 will have to pay about 62.5 percent of the 75 percent. In 2010, the business is set to pay about 43 percent of the 75 percent and in 2011 the assets will become fully taxed.
Council approved the abatement during Monday’s meeting.
In other business, City Council proclaimed Aug. 11, 2008 as Nederland 14-year-old Babe Ruth All Stars Day in the city. Team members, family and coaches were on scene to receive the accolades.