Cameron County tax break for Saronic Technologies linked to job creation
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Cameron County commissioners approved a 95% tax break for Saronic Technologies, a company planning to build military and commercial ships at the Port of Brownsville.
County leaders say the incentive is not guaranteed and Saronic will have to earn it over time.
Saronic is expected to invest $3.2 billion and create more than 10,000 direct jobs over the next 10 years as part of the company's proposed Port Alpha Shipyard project to create AI-driven, autonomous surface vessels, or self-directed ships, for possible naval warfare.
PREVIOUS COVERAGE: Cameron County approves 95% tax break for proposed AI shipbuilding project
County officials say the company must keep those promises to keep the tax break.
If Saronic falls short of its job creation goals, the tax break can be reduced. County officials said if the company is required to create 1,700 jobs but falls 10% short of that target, its 95% tax break would drop to 85%.
"It's a great opportunity... it's creating 10,000 jobs within 10 years, so there are going to be opportunities," supporter Herendida Martinez said following Tuesday's county commissioners meeting to approve the tax break.
Not everyone supports the deal.
"They want Cameron County to take away their taxes so that all of our tax money can pay for this private company that's already worth billions and billions of dollars," Dr. Christopher Basaldu said. "It's immoral, it's unfair to us, and this company doesn't care about us."
The agreement also requires Saronic to maintain a 35% local hire rate and hold at least six job fairs. The company must also partner with Workforce Solutions Cameron and local educational institutions and verify employment numbers through reporting to the Texas Workforce Commission.
County leaders say the message to Saronic is simple: keep the jobs and money in the county as promised or the 95% tax break decreases.
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