Consider and take appropriate action on Resolution R-37-25, a resolution of the City Council of the City of Kaufman, Texas, approving a tax abatement for Agile Cold Dallas, LLC, for a project in a reinvestment zone in the City of Kaufman, Texas, located at 269 SH 34 Bypass, and authorizing the City Manager to sign the Tax Abatement Agreement.

Staff Report & Agenda Item Details

At the October 27, 2025 City Council meeting, the Agile Cold Storage Reinvestment Zone was created. This is required as part of Chapter 312 of the Texas Tax Code to consider a tax abatement. A 30-day notice was posted regarding consideration of this tax abatement, in line with state law. The terms of the City’s agreement with Agile Cold Dallas, LLC are to provide a 5-year tax abatement based on 50% of the City’s M&O tax rate for real property improvements made by Agile. Estimated costs of improvements incurred by Agile are approximately $46 million. The abatement is effective starting January 1, 2026 with a base year value from 2025 and will run through December 30, 2030. The Kaufman County Appraisal District will administer the abatement for each taxing district participating (City, County & TVCC). Agile shall file for this abatement with KCAD each year and provide an annual report to the City.

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 9.3/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).