Montgomery County Judge Mark Keough said he could not support a tax abatement for a new $38 million steel pipe manufacturing plant coming to the Splendora area later this year.

Montgomery County commissioners deferred action Tuesday on a tax abatement for a new $38 million steel pipe manufacturing plant coming to the Splendora area later this year.

According to information from the county, Husteel America Inc. purchased 35 acres off Cole Drive in September 2019. The company is planning the construction of 253,000 square foot manufacturing plant and warehouse.

“I think this is justified,” said Precinct 4 Commissioner James Metts of the 10-year tax abatement. “We like nice things in East Montgomery County and this will certainly be helpful to the Splendora area and the Splendora school district.”

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However, County Judge Mark Keough and Precinct 3 Commissioner James Noack said they were hesitant to support the 10-year abatement agreement as residents face record high property appraisals that will increase their taxes.

“I would hope the business would see the benefit of being here and our tax structure,” Keough said. “I’m going to have a hard time voting for this. The people are taking it on the chin on property tax.”

Noack said small business owners and residents don’t have the ability to abate taxes, adding he would also vote against the agreement.

Precinct 2 Commissioner Charlie Riley asked to defer the discussion to gather more information. Metts motioned to approve the agreement but that motion died for lack of a second.

The court will revisit the issue in 30 days.

The company currently has a location in Houston off Greenhouse Road.

According to the company’s website, the plant will focus on OCTG casing, tubing and drill pipe. The company also provides line pipe and specialty tubulars for refineries and high-tech applications for a variety of applications including oil and gas well drilling, extracting oil and gas.

Catherine Dominguez is a reporter at the Conroe Courier.

Instead of shutting down the program immediately, they let it fade away over the course of a year. A tidal wave of applicants has now rushed to seek billions of additional dollars in last-minute tax breaks.

By Eric Dexheimer and Mike Morris