Primary Department: Economic Equity and Opportunity
Primary Department Head/Elected Official: Jie Wu, Interim Executive Director
Secondary Department: Choose an item.
Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Regular RCA
Type of Request: Financial Authorization
Project ID (if applicable):
Vendor/Entity Legal Name (if applicable): Hermann Warehouse Corporation
MWBE Contracted Goal (if applicable):
MWBE Current Participation (if applicable):
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable):
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
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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 Hermann Warehouse Corporation with respect to its application for a Foreign-Trade Zone (FTZ) site and issuance of a Letter of Non-Objection to the designation and/or activation of the proposed FTZ site located at 3520 E Sam Houston Parkway N, Houston, TX 77530 in Harris County Precinct 2 and within the Foreign-Trade Zone #84.
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Background and Discussion:
Hermann Warehouse Corporation (the “Company”), a New Jersey company, has applied for designation and/or activation of a 3.925-acre FTZ site within FTZ #84 and located at 3520 E Sam Houston Parkway N, Houston, TX 77530 in Harris County Precinct 2.
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 designation of the site by the FTZ Board of the U.S. Department of Commerce and activation 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.
Expected Impact:
An approved PILOT Agreement with the Company safeguards revenue for County taxing entities, facilitates international commerce, and supports the regional business environment.
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): M1: Develop a County economic development strategy that advances effective and equitable economic growth.
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 enumerated in the County’s strategic plan, safeguarding such revenue sources enhances the County’s ability to effectuate its stated strategic goals, objectives, and initiatives.
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Address (if applicable): 3520 E Sam Houston Parkway N, Houston, TX 77530 (Precinct 2)
Precinct(s): Countywide
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Anticipated Court Date: 9/17/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department:
Jie Wu, Interim Executive Director, Department of Economic Equity and Opportunity
Elizabeth Balderrama, Interim Director of Economic Development, Economic Equity and Opportunity
Attachments (if applicable):
1. PILOT Order and Agreement with Hermann Warehouse Corporation and corresponding Exhibits (FTZ site located at 3520 E Sam Houston Parkway N, Houston, TX 77530 in Harris County Precinct 2)
2. Non-Objection Letter for Hermann Warehouse Corporation