Primary Department: Economic Equity and Opportunity
Primary Department Head/Elected Official: Estella Gonzalez, Executive Director
Secondary Department: N/A
Secondary Department Head/Elected Official: N/A
Regular or Supplemental RCA: Regular RCA
Type of Request: Financial Authorization
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): Q-Edge Corporation
MWBE Contracted Goal (if applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
title
Request for approval of a Payment in Lieu of Taxes Agreement (“PILOT Agreement”) between Harris County (on behalf of itself, Flood Control District and Hospital District) and Q-Edge Corporation with respect to its application for Foreign-Trade Zone (FTZ) sites and issuance of a Letter of Non-Objection to the designation and/or activation of the proposed FTZ sites located at 8702 Fairbanks N Houston Rd., Houston, TX 77064 and 8710 Fairbanks N Houston Rd., Houston, TX 77064 in Harris County Precinct 1 and within the Foreign-Trade Zone #84.
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Background and Discussion:
Q-Edge Corporation (the “Company”), a Texas company and a wholly owned subsidiary of Hon Hai Precision Industry Co., LTD., has applied for designation and/or activation of a 425,682-Squre Feet FTZ site within FTZ #84 and located at 8702 Fairbanks N Houston Rd., Houston, TX 77064 and 8710 Fairbanks N Houston Rd., Houston, TX 77064, in Harris County Precinct 1. The site is owned by Ingrasys Technology USA, Inc. and will be operated by the Company.
For any FTZ application, Harris County requires an applicant to execute a Payment in Lieu of Taxes (“PILOT”) Agreement, wherein the applicant commits each year to pay the County and certain of its taxing entities an amount equivalent to 100% of the taxes that would be owed for all FTZ inventory stored at the FTZ site. When the applicant executes the PILOT Agreement, the proposed FTZ site is then deemed to be in the public interest because the County would not lose revenue. The County may then provide a Letter of Non-Objection to facilitate the designation of the site by the FTZ Board of the U.S. Department of Commerce and the activation of the site by the Bureau of Customs and Border Protection of the U.S. Department of Homeland Security.
Presently, it is requested and recommended that the Commissioners Court take two actions concerning the Company’s application for the Foreign-Trade Zone site within FTZ #84:
• Approval for the County Judge to execute the attached PILOT Agreement between the Company and the County, with the County acting on behalf of itself, Harris County Flood Control District, and Harris County Hospital District; and
• Authorization for the County Judge to issue a Letter of Non-Objection to the foreign trade zone site to the Port of Houston Authority as consideration for the Company’s execution of the PILOT Agreement benefiting the County taxing entities.
Q-Edge Corporation is a company specializing in electronic components and product manufacturing, and technology solutions for businesses of all sizes. It is known for its large-scale manufacturing capabilities and serves as a key supplier to major technology companies worldwide. The Company has a presence in Ontario, California, and also operates in China, offering services like Sitecore implementation and localization. They are also involved in importing and exporting electronic products.
Expected Impact:
An approved PILOT Agreement with the Company safeguards revenue for County taxing entities and facilitates international commerce.
Alternative Options:
Non-approval of the PILOT Agreement may result in lost revenue for County taxing entities.
County Strategic Plan Goal: 3. Make our economy more inclusive.
County Strategic Plan Objective: M: Ensure that Harris County remains the best place in the region to start and grow a business, with a focus on equitable economic growth.
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan:
While the revenue source related to annual FTZ PILOT payments is not tied to a specific initiative(s) enumerated in the County’s strategic plan, safeguarding such revenue sources enhances the County’s ability to effectuate its stated goals and initiatives.
Prior Court Action (if any):
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Location:
Address (if applicable): 8702 Fairbanks N Houston Rd., Houston, TX 77064, and 8710 Fairbanks N Houston Rd., Houston, TX 77064
Precinct(s): Countywide
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Anticipated Court Date: 7/10/2025
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.N/A
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department:
Estella Gonzalez, Executive Director, Department of Economic Equity and Opportunity,
Judit Haracsek, Director, Economic Development Division, Department of Economic Equity and Opportunity
Attachments (if applicable):
1. PILOT Order and Agreement with Q-Edge Corporation and corresponding Exhibits (FTZ site located at 8702 Fairbanks N Houston Rd., Houston, TX 77064 and 8710 Fairbanks N Houston Rd., Houston, TX 77064, Harris County Precinct 1)
2. Non-Objection Letter for Q-Edge Corporation