This article first appeared in the Houston Business Journal and was written by Jennifer Dawson. I sure hope her perspective is accurate because Spring ISD needs a boost. They have cut back many teachers over the last year and are offering less to students in the coming school year.
Exxon Mobil Corp.’s new campus will provide a huge boost for
the Spring Independent School District, Harris County and other entities that
will see a revenue spike from new property tax income.
If Exxon ultimately builds 4 million square feet,
improvements at the campus could conservatively be valued at $520 million, or
$130 per square foot, according to appraisal experts at Houston-based Lewis
Realty Advisors.
Lewis executives used high-rise office buildings as
comparables, even though Exxon is constructing low-rise buildings, because they
say costs to build sustainable structures do not vary widely.
“Just putting up a brick wall doesn’t cost that much,” said
Kim Kobriger, senior consultant at Lewis Realty. “It’s everything else.”
Exxon has not said whether it will build to
LEED-certification standards, but if it takes the extra steps for
energy-efficient development, it will cost more to build, said James Weiss, COO
at Lewis Realty. Since most new
buildings are being developed to higher sustainability standards, Weiss said it
is safe to assume Exxon would do the same.
Based on the $520 million value assessment, the energy
company would pay $10,867,896 in annual property taxes, not including taxes on
land values.
The annual tax revenue, which is based on each $100
valuation, would be divided like this:
- Harris County, with a 38.805-cent tax rate,
would get $2,017,860. - Harris County Flood Control District, with a
2.923-cent tax rate, would get $151,996. - Port of Houston, with a 2.054-cent tax rate,
would get $106,808. - Harris County Hospital District, with a
19.216-cent tax rate, would get $999,232. - Spring Independent School District, with a $1.46
tax rate, would get $7,592,000.
Exxon also will be assessed a tax by a Harris County
emergency services district, which will provide police and fire protection to
the property.
Exxon is hush-hush about how many buildings it is
developing. But, since it plans to house
employees who currently work in 4.3 million square feet of space, an estimate
of 4 million square feet at the new site seems reasonable. Exxon’s annual tax bill will be determined by
the value placed on the buildings by the Harris County Appraisal District.
