Seeking to stem financial difficulties brought on by the coronavirus pandemic, Texas Instruments might lease the third floor of its Sugar Land facility after reaching a deal with the city to revise a 2014 incentive agreement that would enable the company to do so.
The city last week approved a revision to the 2014 incentive agreement that would allow for the Dallas-based company to sublease one floor of its 155,000-square foot facility.
“Texas Instruments thinks this will benefit them, and the city,” said Alba Penate-Johnson, the city’s business development manager. “This would allow us to recruit a new business with new jobs to Sugar Land.”
Officials with the company did not respond to a request for comment by Friday afternoon.
But in its application for the change, Texas Instruments cited the pandemic forcing businesses to change the way they operate, according to briefing documents. Texas instruments is looking to monetize on underutilized space in the Sugar Land facility, according to documents.
Texas Instruments has a long history in Fort Bend County.
The company was once one of Stafford’s biggest employers, sitting on a campus that has now become home to The Grid development. That campus closed and relocated to its new Sugar Land headquarters, according to a 2016 Houston Business Journal article. At the time, the campus had more than 500 employees.
Sugar Land in 2014 inked an incentive agreement with Texas Instruments, under which the company would receive a 50 percent tax abatement for 10 years and a $2.5 million grant from the city’s development corporation if the company created 375 jobs and invested more than $35 million in the Sugar Land campus, according to a Dallas Morning News article.
Fort Bend County also gave Texas Instruments a 75 percent tax abatement on improvements and personal property for 10 years at the same time, according to the article.
The Fort Bend Star reached out to Doug Adolph, spokesperson for the city, for more details about the incentive agreement, such as how the business was meeting goals, and he directed the newspaper to file an open records request. The Star filed that request, but had not received the requested documents as of Friday afternoon.
This new revision would not alter the original terms of the first agreement about what Texas Instruments must do to receive the full abatement, according to Penate-Johnson.
Any employees brought in by the subleasing business would not count toward Texas Instruments’ requirements, Penate-Johnson said.
It was not immediately clear what company Texas Instruments might be seeking to sublease space in the facility.