Silva: Rio Grande LNG is a catalyst for local economic and environmental prosperity

As the fully permitted Rio Grande LNG project advances, it brings with it a wave of economic prosperity and community enrichment to the Rio Grande Valley. For the facility to fully harness its future as a bastion for growth and development across the region, it is critical to support the amendment of existing tax abatement agreements with Cameron County, just as the Rio Grande Valley Partnership does.

The existing tax abatements and the proposed amendments are a win-win for the County and the community. The agreements are commonplace and directly inject PILOT (payment in lieu of taxes) payments in the tens of millions of dollars into the community to ensure sustained growth, dedicated environmental stewardship, and community welfare for decades to come, all of which are byproducts of Rio Grande LNG’s $18.4 billion overall investment in the project – the largest in the State of Texas.

In consideration of factors present in the abatement agreements, the Rio Grande LNG project has made an impressive commitment to the local workforce, reserving a minimum of 35 percent of craft jobs for local residents during construction and operations. This is not a vague promise but instead a measurable achievement: from July 2023 to March 2024, 53 percent of the total workforce at site was local.

And the project’s financial contributions go beyond employment. Over the same time period, the project injected approximately $81 million into the local supply chain, utilizing 73 vendors from Cameron County out of their total need of 147. An additional 19 vendors were located in the neighboring Hidalgo and Willacy counties, bringing the Rio Grande Valley’s supply chain representation to a substantial 63% of the pool.

This prioritization of local hiring and regional vendor procurement provides a suite of trickle-down benefits. It not only reduces unemployment but also ensures that the economic benefits of the project remain within the community, fostering a sense of ownership and pride. It stimulates business growth and attracts further investment, creating a ripple effect of economic vitality.

Amending the tax abatements for the Rio Grande LNG project is clearly a smart economic strategy for the community. The project’s peak development period will create and sustain over 5,000 construction jobs and 437 on-site jobs once the facility is fully operational. These jobs, with expected average annual salaries of $100,000, are poised to generate $43.7 million in new yearly payroll, significantly boosting local wages, purchasing power, and general commerce.

Rio Grande LNG’s investment in the Valley is not solely economic – it is deeply environmental. The company has invested millions in conserving more than 4,000 acres of land, which is over five times the 761 acres impacted by the facility. These efforts include preserving Las Lomas, safeguarding local wetlands, and expanding animal habitats, demonstrating a profound commitment to environmental stewardship.

The Rio Grande LNG project is equally committed to community engagement. Nearly $350,000 has been invested in local community support, benefiting 25 organizations through educational, health, and social services. A community feedback process was established to understand stakeholder concerns and address them promptly, while a Community Advisory Board, comprised of local business and civic leaders, facilitates continuous dialogue.

These community partnership commitments align Rio Grande LNG with the evolving needs and priorities of their neighbors, fostering a collaborative environment for constructivism and operational responsibility.

The long-term benefits of the Rio Grande LNG project far outweigh any short-term tax abatements. The project is projected to generate $136.9 million in tax receipts for Cameron County, positively impacting budgets for education, road improvements, quality of life projects, and drainage improvements. These enhancements will elevate living standards and attract further investments, creating a virtuous cycle of development.

Moreover, the increase in sales tax revenues for surrounding cities will enhance municipal services and infrastructure, benefiting all residents of the Rio Grande Valley. The project’s economic activity will generate hundreds of millions of dollars for the county, translating into tangible improvements in public services and infrastructure.

Supporting the amendment of existing tax abatements for the Rio Grande LNG is a strategic decision that promises multifaceted benefits. The project exemplifies how industrial development can harmonize with local needs and sustainability, and by approving the proposal, we can enable a framework that supports the workforce, economic growth, environmental conservation, and community pride.

The Rio Grande LNG project is not just an economic venture – it is a comprehensive effort to create a thriving, sustainable, and inclusive community. A favorable decision to the amendments guarantees this transformative project reaches its full potential, benefiting the Rio Grande Valley for generations to come. Let us embrace this opportunity to secure a prosperous future for our community.

Editor’s Note: The above guest column was penned by Daniel Silva, president and CEO of the Rio Grande Valley Partnership. The column appears in The Rio Grande Guardian with the permission of the author. Silva can be reached by email via: daniel@rgvpartnership.com.

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