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New guidelines to improve negotiating power and set investment, environmental standards
Commissioners at their last meeting approved updated tax abatement guidelines, saying the agreements remain Bastrop County’s strongest tool for negotiating environmental protections
proposed data center deals.
According to county records, the updated policy requires a minimum $20 million investment for new businesses and $10 million for expansions, simultaneously setting standards for job creation, environmental review and employee benefits. Projects also must create at least 25 jobs, with a goal of filling 25% of those positions with Bastrop County residents.
“In order to protect all of us in this room, we have to use tax abatements, because that’s all the state gives us,” Commissioner Butch Carmack said.
The vote came after a lengthy discussion and slate of public comments. Those concerned over data center growth and potential environmental impacts questioned whether those developments should receive any tax incentives.
Carmack noted residents often misunderstand what tax abatements accomplish.
“We now can negotiate how much water you’re going to use, how much light you’re going to put out, how much noise you’re going to put out — we are doing our best to protect you,” he said.
According to County Judge Gregory Klaus, state law limits the county’s authority over private property development, adding landowners have discretion over how they use or sell their property.
“The county did not ask these data centers to come, they just came in here,” Klaus said. “We have no ruling over whether they can come to the county or not.”
Local attorney Nick Lealos, who spoke at the July 27 meeting, said residents who attended a recent community town hall were not opposed to economic development but wanted more information and involvement before projects move forward.
“They complained most about lack of information, notice and transparency throughout the process,” Lealos said.
He described what he calls the “Bastrop Bill of Rights,” suggesting the county publish information about projects, establish a citizens advisory working group and encourage state leaders to grant temporary authority to address the expansion of data center development.
Commissioner David Glass said many residents have called for a moratorium on data center construction on the county level but explained counties cannot legally enact one without authority granted by the state.
In Hill County, commissioners approved a one-year moratorium before rescinding the action after facing a $100 million federal lawsuit from the developer.
“The abatement is really the only tool we have at this time,” Glass said. “I encourage you to call your senators and your representatives.”
Linda Curtis, speaking on behalf of the League of Independent Voters, urged commissioners to signal to residents they are at least pursuing additional options beyond tax abatements.
“We are looking for a signal from you that you want to turn this train around,” Curtis said.
Before approving the new policy, commissioners reviewed its environmental language and if it should reference specific concerns such as noise and light pollution.
County officials said the policy’s broad language allows those issues to be considered while also preserving flexibility on a case-bycase basis. Commissioners can also amend the policy in the future if additional changes are needed.
