Montgomery County amends tax abate deal

Montgomery County commissioners approved an amendment to a tax abate agreement with Memstar USA and recaptured roughly $165,000 after the company was unable to meet a requirement of having 80 employees.

In a 4-1 vote, the court approved the amendment that will allow the company to keep its tax abatement agreement with the county but will reduce the required number of employees to 20.

Precinct 3 Commissioner James Noack was the nay vote.

The county and Conroe approved the tax abatement plan with the company in 2017. Memstar received a 100 percent abatement during the first and second years, with the abatement amount declining to 20 percent by the eighth year.

Memstar opened its 40,500-square-foot facility in June 2018. The plant, located at 3655 Pollok Drive, produces reverse osmosis membranes for water filtration and desalination. Tax Assessor-Collector Tammy McRae said the company did not default but was out of compliance. The company has repaid the abated taxes along with interest and fees.

County Attorney B.D. Griffin said the company was affected by supply chain issues from the COVID-19 pandemic.

“The reason they anticipated 80 employees is because they anticipated a second line in their manufacturing and they have not been able to get the equipment for that second line,” Griffin said. “At this point, they are not sure when they will (get the equipment) so that is why they wanted to reduce the employment numbers to keep the abatement going forward.”

Griffin said the company does still plan to add the second line but said officials did not have a timeline of when that could happen.

Memstar officials could not be reached for comment.