ROSENBERG, Texas — The Lamar Consolidated Independent School District board voted unanimously Tuesday to approve a tax break for Tesla’s proposed $10 billion solar power manufacturing facility in Fort Bend County.
The vote allows Tesla’s application for the state’s Jobs, Energy, Technology and Innovation program to move forward for consideration from Gov. Greg Abbott’s office. Project documents list 2026 as the expected construction start and 2028 as the target completion year.
The proposed facility, called Project Crystal Sun, would sit on more than 1,000 acres in southeastern Fort Bend County within Lamar CISD’s jurisdiction.
Tesla would receive a 10-year tax limitation
Under the proposed agreement, Lamar CISD would tax half the value of Tesla’s eligible property for maintenance-and-operations purposes from 2029 through 2038.
The Texas Comptroller’s Office estimates the tax limitation would provide Tesla with about $115.2 million in tax benefits over 20 years.
The project could generate about $153 million in Lamar CISD tax revenue with the tax break, compared with an estimated $268.3 million without the limitation.
School Board President Jacci Hotzel said she supported the agreement because of its expected economic impact on the district.
“I really look forward to our students benefitting from this,” Hotzel said. “I hope this is the beginning of a beautiful, lifetime partnership.”
Superintendent Roosevelt Nivens said the state would compensate the district for the tax revenue affected through the agreement.
“I want to make sure that we’re clear to say that the state is going to make us whole in our imminent tax rate,” Nivens said. “So if we do lose $15 million dollars, the State of Texas is going to give that back to us.”
Lamar CISD Chief Financial Officer Gregory Buchanan said the agreement could generate about $89 million in district revenue over 16 years and help the district pay down bond debt.
Tesla projects thousands of jobs
Tesla’s proposed facility would manufacture solar cells and panels for large-scale solar farms, commercial buildings and residential installations.
David Dennison, who works for financial advisory firm Kroll and represents Tesla’s business interests, said the company is evaluating two potential sites, including one in Texas and another undisclosed location.
Dennison said the project could create nearly 10,000 full-time jobs and about $1.3 billion in direct annual compensation once the facility reaches full operation.
Tesla engineer Evan Young said the facility would use automation to improve production quality but would still require a large workforce.
Young also said Tesla plans to build a wastewater facility to reduce the amount of water the plant uses.
Parents raise concerns
Some Lamar CISD parents questioned the tax agreement and potential effects on surrounding communities during Tuesday’s public hearing.
Parent Daniel Saffron opposed the measure and argued that taxpayers could carry future infrastructure costs associated with the project.
Jennifer Rodriguez raised concerns about the facility’s potential environmental impact, while Mary Barnes questioned whether Fort Bend County taxpayers could face additional infrastructure costs.
“While I see economic reasons to support the project,” Barnes said, “I do see some potential risks and burdens on the tax payers of Fort Bend County in helping build up infrastructure and support energy production for Project Crystal Sun.”
Other speakers supported the project.
Keri Schmidt, president of the Fort Bend Regional Partnership, said the investment could create new career opportunities for Lamar CISD students.
“An investment of approximately $10 billion would transform our economic future and create new career pathways for Lamar CISD students whether they pursue a university degree, technical training or enter the workforce directly,” Schmidt said.
County creates reinvestment zone
Fort Bend County commissioners unanimously approved an economic reinvestment zone Aug. 24 that could include the Tesla project.
The zone covers more than 3,000 acres near FM 762 and FM 1994 in southeastern Fort Bend County, where developers also plan residential neighborhoods.
Interim County Judge Daniel Wong recused himself from that vote because of a conflict involving his business, Tolunay-Wong Engineers Inc., which has worked on Tesla projects.
The Lamar CISD board also approved a 0.6% reduction in its property tax rate Tuesday, setting the rate at $1.1390 per $100 of valuation.
The proposed Fort Bend facility would add to Tesla’s Texas operations, which include its vehicle assembly plant and energy-storage facilities in the Austin area. Tesla and SpaceX also plan a $16.8 billion semiconductor manufacturing facility in Grimes County.
