Point Isabel school board recently approved a tax abatement for a technology company wanting to build a $3.2 billion shipyard for the U.S. Navy.
The board voted in support of a tax-incentive agreement after Saronic Technologies presented its plans for its “Port Alpha” shipyard at its regular meeting last Tuesday, March 10.
The company is looking for “a little over 600 acres of development for ‘Port Alpha,’ with a $3.2 million investment and over 10,000 direct jobs that we would hire as full-time employees,” Vice President of Global Expansion and Integration Natalie Wiegand at Saronic Technologies said during the meeting.
The agreement is a “win-win” for students and the community, School Board President Heather Scott said in a news release.
“No official decision has been made,” continued Scott, with Saronic Technologies still conducting a nationwide search for the shipyard. Despite this, the company said it hopes to start building “Port Alpha” as soon as possible this year.
Saronic Technologies received a $392 million production contract from the U.S. Navy that was announced late last year. Cameron County Commissioners Court will also consider a tax-abatement agreement for the company at its regular meeting Tuesday, March 24 at 9:30 a.m.
The company hopes to build its shipyard at the Port of Brownsville, with the property assessed at an estimated $2.7 billion in tax value, according to a notice from Cameron County.
The agreement with Saronic Technologies and Point Isabel ISD was for a tax abatement from the state comptroller’s Taxable Value Limitation on Eligible Property under the Texas Jobs, Energy, Technology and Innovation Act, or a JETI agreement.
Companies applying for JETI agreements are required to create permanent, full-time positions to receive tax incentives, which can last up to 10 years after construction is completed.
During the school board meeting, the company said it plans to offer company equity and an average yearly salary of $90,000 and other benefits to appeal to skilled workers whether they are software engineers, welders or production assistants.
Applicants must also maintain a “viable presence” for three years after the end of the incentive period, according to the state comptroller’s office.
The agreement was approved after a public review process and legal and financial district consultation, according to the school district’s news release.
Both a ship building and technology company, Saronic Technologies said it wants to “reinvigorate the manufacturing process” by marrying software, hardware technology, engineering, welding, pipe fitting, and more to build autonomous ships.
“We’re not SpaceX, we don’t have an unlimited budget,” Saronic Tech’s Co-Founder and Chief Operating Officer Doug Lambert said during the school board presentation.
The Austin-based startup has been expanding for the past three years, investing $300 million to expand a shipyard in Franklin, Louisiana, according to a Louisiana state agency.
The Louisiana project started last April, which went from 23 employees to 223 in around six months, according to Lambert.
When presenting to the school board, Saronic’s vice president of expansion added that the company was interested in the Port of Brownsville site because of the opportunity of expansion.
The company said it wants to close the defense disparity gap between U.S. and China shipbuilding capabilities.
“The board feels it will transform the region, the state and our country,” Scott, the school board president, said in a news release.
Only one person made a public comment during the Tuesday school board meeting.
“I’d like to point out that this company wishes to make autonomous AI weapons designed to murder and kill human beings,” Christopher Basaldú, co-founder of the South Texas Environmental Network, said.
“I’m perplexed as to why they think they need to take tax money away from schools for our children to educate themselves, for our children to be educated,” said Basaldú, who also spoke at the previous Point Isabel ISD meeting where the board rejected another JETI application from an LNG company.
In a statement, Saronic said the nationwide search for the location of Port Alpha remains active and ongoing.
“Recent filings and activities are a standard part of the vetting process for sites under consideration, reflecting the thorough and deliberate approach required by Port Alpha’s unique requirements,” the statement reads.
Scott was not immediately available for comment.
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