City of Nederland sale of approximately 800 acres for $5.9M leading to “future economic development”

Published 6:21 pm Monday, March 27, 2023

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NEDERLAND — Energy Transfer is purchasing approximately 800 acres of land from the City of Nederland for just under $6 million.

City councilmembers approved the $5,969,353 sale during Monday’s city council meeting.

City Manager Chris Duque said the land would pass through but not end up being owned by the Nederland Economic Development Corporation.

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“It will end up Energy Transfer’s land,” he said. “And the city will be paid for the land. The transaction will facilitate a future industrial project. We cannot offer additional details on the scope of that future project.”

The land in focus has been owned by the city since it was donated to it in the mid-80s.

Nederland and Energy Transfer representatives have been meeting to discuss this transaction since the summer of 2022.

The 800 acres is located north of the SUNOCO/Energy Transfer facility off Twin City Highway.

“In 2013, the city sold acreage to Sunoco for an industrial development project,” Duque said. “That transaction included a right of first refusal clause. The company has elected to purchase the property.”

Duque stressed Entergy Transfer Partners would be leading “future economic development” of the land, adding the city would use the overwhelming share of its $5.9 million compensation for public safety and emergency management needs.

This week’s sale follows one in 2013, when Nederland sold 259.69 acres of land for $1,450,650 to SUNOCO.

Energy Transfer have not commented on the plans for the site and did not return multiple requests for comment from Port Arthur Newsmedia on Monday.

The process involved several procedural steps Monday including:

  • A resolution authorizing the city manager to execute closing and title documents for the sale of 800 acres of land to the Nederland Economic Development Corporation.
  • Council approving a purchase and sale agreement between the City of Nederland and the Nederland Economic Development Corporation in regard to the sale of 800 acres of land for future economic development.
  • Approving a resolution authorizing the transfer of approximately 800 acres of land to the Nederland Economic Development Corporation.
  • Approving an agreement between Energy Transfer Nederland Terminal and the City of Nederland regarding the relocation of the City of Nederland Police Department shooting range.