FORNEY, Texas — The Forney City Council finalized a new payment-in-lieu-of-taxes agreement with the Luminant power plant, formerly NextEra Energy, with the passage of an Industrial District Agreement last week.
FORNEY, Texas — The Forney City Council finalized a new payment-in-lieu-of-taxes agreement with the Luminant power plant, formerly NextEra Energy, with the passage of an Industrial District Agreement last week.
The new agreement halted annexation proceedings which the council set in motion in April.
During the September 6, 2016, city council meeting, the council unanimously approved an ordinance which created the Industrial District for the Luminant property. The council had previously approved the proposed terms of the agreement in August.
In the agreement, Luminant will pay an additional $180,000 per year until the expiration of the contact in 2022 — which is earmarked for public safety. Additionally, Luminant will make a one-time contribution of $400,000 which is earmarked for community betterment projects.
Calendar Year | Payment Amount | Payment Date |
2016 | $2,630,000 | 10/31/2016 |
2017 | $2,530,000 | 1/31/2017 |
2018 | $2,530,000 | 1/31/2018 |
2019 | $2,280,000 | 1/31/2019 |
2020 | $2,280,000 | 1/31/2020 |
2021 | $2,280,000 | 1/31/2021 |
2022 | $2,280,000 | 1/31/2022 |
“When the agreement expires in 2022, Luminant will make the initial payment of property taxes in 2023,” according to the City of Forney. “The payment will be structured as Luminant making an advanced payment of taxes to the City by January 31, 2023, for the tax year 2023.”
“The advanced payment will be in an amount equal to fifty percent of the amount due if Luminant had been located inside the city limits as of January 1, 2022,” stated the City of Forney. “The advance payment will serve as a credit toward the amount of property taxes that will ultimately be due for the 2023 tax year bases on the valuation as of January 1, 2023. No later than January 31, 2024, Luminant will pay the remainder of property taxes that are required by law with respect to the Luminant property for the tax year 2023.”
