Accredo Packaging, Inc. (API) manufactures and supplies sustainable high added value flexible packaging predominantly for the pre-packaged foods and consumer products markets in North America. The corporate headquarters, and manufacturing facility, for API is in Sugar Land with currently 350 employees locally. API is looking to build their third facility in Sugar Land to increase production capabilities due to new customers and additional orders from their largest customers.
The company has proposed $53.5 million in real property and personal property improvements as part of the new expansion, which will also result in the creation of 175 jobs. The company and City are negotiating a tax abatement agreement, which will be taken to City Council for consideration pending the approval of the reinvestment zone. This project meets the qualifying criteria in the City’s policies for incentive consideration. The City Council’s Economic Development Committee previously reviewed the project and concurred with staff’s recommended incentive package.
The creation of the Reinvestment Zone for the tax abatement is required, pursuant to state law, prior to consideration of a tax agreement by any taxing jurisdiction. The first step of the Zone creation is to hold a public hearing, followed by a first reading of Ordinance No. 2128.
Staff recommends the City Council hold the public hearing and approve on first reading Ordinance No. 2128, creating Reinvestment Zone No. 2018-01 for 17.2163 acres located south of 12682 Cardinal Meadow Drive in the Sugar Land, Texas. A second reading will be scheduled in June, along with consideration and action on a tax abatement agreement.