BRYAN, Texas (KBTX) – The Bryan Independent School District is in the early stages of exploring an economic development agreement with America’s Foundry Bryan LLC, the company behind a proposed $10 billion semiconductor project at Texas A&M University’s Relis Campus.
The project is supported by tax incentives from Texas A&M University, the City of Bryan and Brazos County, and is seeking additional incentives through the Texas Jobs, Energy, Technology and Innovation (JETI) program. Enacted by House Bill 5, signed into law by Governor Greg Abbott last year, the JETI Act aims to attract large, capital-intensive projects to Texas in a transparent manner, fostering new jobs and investment.
The city, county and university approved a series of tax incentives to secure this significant investment, which beat out 15 other states in the site selection process. Local agencies and municipalities have been tight-lipped about the deal, citing non-disclosure agreements, but have expressed enthusiasm about the company’s potential expansion into Aggieland.
The JETI Act places a 10-year 50% limit on a school district’s maintenance and operations (M&O) tax assessment for eligible projects. In addition, projects located in Opportunity Zones may be subject to an additional 25% limit. Eligible projects include manufacturing facilities, dispatchable generation facilities, natural resource development, high-tech infrastructure, and critical infrastructure expansions. Renewable energy projects and energy storage facilities are excluded.
“This is only the sixth agreement ever signed in the state. It’s fairly new and to some extent mirrors some older Chapter 313 agreements that school districts have signed in the past. One of them, Access Pipe and Tube, I believe, is just expiring now that we’re gone,” said Kevin Beasaw, vice superintendent of business services for the Bryan Independent School District.
“So, it’s been pretty successful. But this is quite different. It’s similar to 313, but it’s a different process. Previously with 313, the school district was really in charge of taking the initiative and receiving the applications from the businesses, processing them and submitting them to the auditor. Now, it’s a different process,” Besaw added.
The district held a special workshop Monday to approve the hiring of a consultant to guide the legal and financial process, which the company will fund as part of the contract.
“The item we had out there today was the hiring of a consultant to guide the district through the legal process and the economics of the application that was submitted through the Comptroller’s Office. One of the requirements of that application is that the company pays the district a certain amount required by law, and the district will use that money to hire a consultant to guide them through that process,” Beesey said. “It’s a fairly involved process with lengthy legal terms and economic feasibility studies and things like that that have to be done.”
The project is expected to have an economic impact of more than $100 billion over the next 40 years, potentially creating 2,000 full-time jobs and increasing student enrollment and tax revenue for the school district. Construction on the RELLIS campus’ 288-acre site is scheduled to begin this year, with completion scheduled for 2029. The facility, called Project Factory One, will also create 800 construction jobs over the next six years.
“We’d love to have as many students as possible,” Besaw added. “And then of course the benefit is that it’s all taxable property and we get tax revenue from that. So it’s in the Bryan Independent School District, so that’s a win for us.”
America’s Foundry Bryan’s application to build and operate an advanced semiconductor manufacturing facility includes details of a variety of assets and investments, according to online records.
Land Improvement: Extensive improvement and preparation of undeveloped land to facilitate new construction.A 3 million square foot advanced semiconductor manufacturing facility, including an administration building, central utility building, infrastructure, machine shop, receiving and warehousing facilities, and grounds and road infrastructure.Processing Equipment and Tools: Acquire all the necessary machines and tools essential for semiconductor manufacturing.Materials and Equipment: Procurement of materials and equipment to support manufacturing operations in auxiliary buildings.Tangible assets: The acquisition of additional assets that are integral to or support the production process.
What’s next?
Bryan ISD says they will make a decision on next steps once the consultant releases their report.
If all goes well, construction of Substrate’s semiconductor manufacturing facility is scheduled to begin in the fourth quarter of 2024 and be completed in 2028, according to online records. Commercial operations are expected to begin in 2030, the first year of the incentive period. This important development will be closely monitored as it is expected to bring significant economic growth and job opportunities to the Brazos Valley.
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