CORPUS CHRISTI, Texas — San Patricio County leaders are considering the next steps on whether to continue an economic incentive agreement with local steel production facility, ArcelorMittal, who they say isn't bringing in the economic boost they expected.
Chapter 381 agreements let counties negotiate directly with developers and businesses to provide incentives to come into the area. However, there are conditions they have to meet.
San Patricio County Judge David Krebs told 3NEWS that ArcelorMittal came to Portland in 2013 and signed a 381 agreement, which expired April 2024. Krebs alleges that the termination is because the company did not hold up their end of the bargain.
"Would start phase two to extend the abatement before the end of the contract," he said. "They did not do that. There were clause in the contract they were suppose to employ over 600 people, they are way way short of employing 600 people over there."
Krebs said that due to the low economic turnout the county has two choices on the matter: deciding whether to let ArcelorMittal apply for an abatement again that would not be a 381 or discontinue it all together.
"It was an abatement to help them get started in their business," he said. "Really, yes, the taxpayers do pay for that because these companies are not paying taxes when they come in here on that abatement. And some of the smaller facilities and companies that want to come in here, we can't give it to them because they don't meet the criteria."
Krebs told 3NEWS he has been looking at data from the Corpus Christi Regional Economic Development Cooperation since the abatement started that shows the facility isn't holding up their end.
3NEWS did reach out to ArcelorMittal but did not hear back before news time.