The City has created, within its extraterritorial jurisdiction, three Industrial Districts. The City has annexed a portion of each industry located within the Industrial Districts and has entered into contracts with each such industry. The contracts specify payments to be made to the City in lieu of ad valorem taxes in exchange for the City not annexing the industry during the seven-year terms of the contracts. The series of contract renewals began in 2003 with an effective date of tax year 2002.
The existing contracts that have not come up for renewal compute the payments as follows: Each Industrial District payment is based upon forty to fifty percent (40%-50%) of the fair market value of the industry within the City limits and extraterritorial jurisdiction of the City, as determined by the Industrial Appraisal Review Board, times the current tax rate minus the amount paid by the industry to the City as taxes on that portion of the industry within the City limits.
The new contract payments are calculated as follows: Each Industrial District payment is based upon fifty to sixty percent (50%-60%) of the fair market value of the industry within the City limits and extraterritorial jurisdiction of the City, as determined by the Industrial Appraisal Review Board, times the current tax rate minus the amount paid by the industry to the City as taxes on that portion of the industry within the City limits. The contract has a base year of 2002 or the latest certified value whichever is greater. Any future value increases over that base year value are excluded from the payment calculation. In addition, any value decreases are not considered in the payment calculation.
The City’s strong industrial tax base provides the foundation for stable economic conditions necessary for maintaining a healthy, vibrant economy. The cornerstones of Baytown’s industrial development are three world-recognized entities consisting of ExxonMobil, Bayer and Chevron Phillips.
The ExxonMobil Baytown Complex is one of the largest integrated and most technologically advanced petroleum and petrochemical complexes in the world. Founded in 1919, ExxonMobil's Baytown, Texas complex is located on approximately 3,400 acres along the Houston Ship Channel.
The Baytown complex is comprised of three manufacturing sites (a refinery, a chemical plant and an olefins plant), the Chemical Company's Technology and Engineering Complex and a regional downstream engineering office.
The facilities pay over $78.4 million in annual property taxes (city, county, school and college).
The Baytown complex is staffed by approximately 3,140 ExxonMobil employees and 1,269 contract personnel, who manage the businesses and operate and maintain the manufacturing facilities on a 24-hour, year-round basis.
The Baytown Refinery is fully integrated with the Chemical and Olefins plants, and is a major source of petrochemical feedstocks for these plants.
The Baytown Refinery is the largest refinery in the United States, with a crude oil capacity of 564,000 barrels per day. The Baytown Refinery has the flexibility to process heavy, high-sulfur and - metal crudes into a full range of petroleum products, including motor gasoline, jet and diesel fuels, heating oil and coke.
The Baytown Chemical Plant produces more than 7.2 billion pounds of petrochemical products each year through its three ExxonMobil Chemical manufacturing groups. These are used in everyday products such as polyester fabric and plastic bottles, packaging and appliance parts.
The Baytown Olefins Plant (BOP) is adjacent to the Baytown Refinery and Chemical Plant. The plant produces 6 billion pounds of the world's most widely used primary petrochemicals -- ethylene, propylene and butadiene -- and is feedstock flexible. These are used in everyday products such as disposable diapers, automobile parts, safety gear and medical supplies and garments. It is one of the largest ethylene plants in the world.
Baytown Olefins Plant also houses most of the cogeneration facilities that produce all of the power and steam required to operate the ExxonMobil Baytown complex. Total cogeneration capacity is approximately about 500 megawatts.
The Baytown Technology and Engineering Complex provides worldwide research and development support to ExxonMobil Chemical's eleven global business groups, and houses Chemical's global manufacturing and engineering organizations.
Another industrial corporate citizens' presence in Baytown, the Bayer Baytown Industrial Park, is distinguished by steady expansion. Strategically positioned along Cedar Bayou for barge access, the Baytown plant is located on 1,688 acres, of which 35 percent is developed and employs approximately 2,000 people, including permanent contractors. Since 1971, when the first polyurethane unit started up, the site has grown more than ten-fold. Over the last ten years, Bayer Corporation has invested over $1.3 billion, by far the single largest capital investment within Bayer worldwide. Guest facilities (Hexion (Borden), Calpine Construction Finance Corporation (Baytown Energy Center), First Chemical, El Dorado Nitrogen, and Texas Brine) have been invited to join Bayer’s industrial park site to provide strategic raw materials and energy for Bayer’s consumption. Today, Baytown is the largest of Bayer's U.S. chemicals operations, home to three active business groups – Bayer Polymers, Bayer Chemicals and Bayer Corporate and Business Services. Bayer Technology Services occupies a newly constructed headquarters at Baytown to serve the Bayer businesses in the Americas. A new gulf coast distribution center opened mid 2003 to consolidate Bayer’s growing shipments and is adjacent to the manufacturing operations.
Chevron Phillips Chemical Company LLC (Chevron Phillips Chemical), with its affiliates, is one of the world's top producers of olefins and polyolefins and a leading supplier of aromatics, alpha olefins, styrenics, specialty chemicals, piping and proprietary plastics. The company has total assets of almost $7 billion and is owned equally by Chevron Corporation and ConocoPhillips. Located in Baytown, Texas, Chevron Phillips Chemical’s Cedar Bayou Chemical Plant is the largest of the company’s domestic manufacturing facilities with approximately 592 employees and approximately 350 contract employees. The Cedar Bayou Plant is an integrated olefins chemical complex that (1) manufactures ethylene and propylene from light hydrocarbons, natural gas liquids and refinery feedstocks; and (2) upgrades its ethylene product into alpha olefins and polyethylene resins. The Cedar Bayou Plant consists of approximately 1,200 acres with 650 of those developed to date.
The “Houston Business Journal” in its February 3, 2000, issue, listed Cedar Crossing Business Park located in the extraterritorial jurisdiction of Baytown - Chambers County, as the largest industrial park in the Houston area. USX Realty Development is developing the park. The Texas Department of Economic Development has identified Cedar Crossing as the prime industrial site in the Texas Gulf Coast region. As a planned industrial park, its primary uses are industrial, manufacturing warehousing and distribution. Amenities include water, rail and highway transportation, on-site feedstock pipeline and abundant surface water for process operations. Companies such as Jindal Steel from India and Samson Controls of Germany as well as numerous others occupy the site.
A recent addition to the industrial park includes a 750,000 square foot Home Depot regional distribution warehouse with 300 new jobs. The possibility exists for an expansion to more than double the size and employment at this facility.
One of the largest Super Wal-Mart stores in Texas opened in July 2001 at Garth and Lynchburg-Cedar Bayou Road with one-quarter of a million square feet in sales area. In 2005, the company also built and operates a massive distribution center in the Cedar Crossing Business Park. It is a 2 million square-foot distribution center on a 296-acre site which employs between 300 and 400 people.