Primary Department: Economic Equity and Opportunity
Primary Department Head/Elected Official: Tiko Reynolds-Hausman, 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): U.S. Metals, Inc.
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 U.S. Metals, Inc. 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 19102 Gundle Rd, Houston, TX 77073 in Harris County Precinct 1 and within the Foreign-Trade Zone #84.
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Background and Discussion:
U.S. Metals, Inc. (the “Company”), a Texas company, has applied for designation and/or activation of a 22.5237-acre FTZ site within FTZ #84 and located at 19102 Gundle Rd, Houston, TX 77073, in Harris County Precinct 1. The site is owned by Hardy Westfield Development, LLC, 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 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 with respect to 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.
U.S. Metals, Inc. is a premier global supplier of a wide range of pipe, valve, fittings, and flange components, catering to refineries, petrochemical plants, power plants, and related industries. They offer a readily available supply of Chrome Alloy, Stainless Steel, Nickel Alloy, Low Temperature, and Specialty Alloy 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 enumerated in the County’s strategic plan, safeguarding such revenue sources and facilitating international commerce expands the local economy and enhances the County’s ability to effectuate its stated goals, objectives, and initiatives.
Prior Court Action (if any):
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Location:
Address (if applicable): 19102 Gundle Rd, Houston, TX 77073, in Harris County Precinct 1
Precinct(s): Countywide
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Anticipated Court Date: 10/30/2025
Anticipated Implementation Date (if different from Court date): N/A
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department:
Tiko Reynolds-Hausman, Executive Director, Economic Equity and Opportunity,
Judit Haracsek, Director, Economic Development Division, Economic Equity and Opportunity
Attachments (if applicable):
1. PILOT Order and Agreement with U.S. Metals, Inc. and corresponding Exhibits (FTZ site located at 19102 Gundle Rd, Houston, TX 77073, Harris County Precinct 1)
2. Non-Objection Letter for U.S. Metals, Inc.