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The original item was published from 11/22/2022 8:02:52 PM to 12/1/2022 12:00:07 AM.

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Posted on: November 22, 2022

[ARCHIVED] City and ExxonMobil Reach Chapter 212 Agreement

ExxonMobil Announcement (2)

The City of Baytown and ExxonMobil are announcing a new 35-year agreement that will continue to strengthen the long-standing relationship between community and industry, while promoting innovation into the future. 

Representatives from the City and ExxonMobil have finalized a Chapter 212 agreement that will keep jobs in Baytown and has the potential of attracting long-term development from the company. As part of the arrangement, ExxonMobil will make yearly payments over the next 35 years, worth at least $717.5 million. In addition, the deal includes $75 million in advanced tax payments that could potentially be used by the City for community-enhancing amenities. 

ExxonMobil’s business footprint in Baytown includes the Baytown Olefins Plant, Baytown Refinery and the Baytown Chemical Plant. ExxonMobil has also maintained a strong presence within the community, providing support to the City, Lee College and Goose Creek CISD.

City Manager Rick Davis said, “We are appreciative of our partnership with a global industry leader that continues to invest in Baytown. Big companies continue to build and thrive here due to the fiscally-strong tax environment. This agreement shows ExxonMobil’s dedication to Baytown and the company’s strong desire for future investments in our evolving community.”

ExxonMobil Baytown Olefins Plant Manager Kate Lightfoot said, “We are proud of this Chapter 212 agreement as it gives the City and ExxonMobil the ability to have a stable and predictable rate for the next 35 years, which is so important for planning and future investments.  We thank the City for our valued partnership and this innovative approach with the Chapter 212, and look forward to many years of continued success for our community.”  

As part of the agreement, the City will not be responsible for providing municipal services to the ExxonMobil properties. The deal also allows the City flexibility to continue to lower taxes for residents.

Davis said, “Our city leaders remain dedicated to lowering the property tax stress on residents. Another great benefit of this deal is the ability for us to continue efforts to decrease the burden.” 

About Chapter 212 agreements:

A Chapter 212 agreement is part of the Texas Local Government Code (Section 212.172) that grants cities the ability to enter into a written contract with property owners in the City’s Extraterritorial Jurisdiction (ETJ) to grand land immunity from annexation for a period not to exceed a total duration of 45 years. It also involves the City getting money in lieu of taxes without needing to provide services to the property.

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