MAYOR BILL WHITE ANNOUNCES MAJOR CHEVRONTEXACO TRANSACTION IN HOUSTON
February 25, 2004 -- Mayor Bill White announced today that ChevronTexaco will purchase the 1500 Louisiana Street building in downtown, where the second largest U.S. energy company will move its international upstream operations from California and will consolidate most of its Houston-region operations and staff.
Mayor White called the ChevronTexaco move a “major step forward for the Houston economy.” He cited several advantages: “First, Houston gets over 500 jobs relocated here; second, we become the hub of one of the world's largest international energy operations; and third, we strengthen a key business center – downtown Houston – which is critical to our future.”
Mayor White made the announcement at Houston City Hall in conjunction with Ray Wilcox, Vice President of ChevronTexaco Corp. and President of ChevronTexaco North America Upstream. Explaining the move, Wilcox emphasized ChevronTexaco's confidence in Houston as well as the efficiencies and technology advantages of the new facility.
The 40-story, 1.2 million-square-foot facility is expected to house about 3,700 ChevronTexaco workers and contractors, said a company spokesman. Over 500 of those will be positions relocated to Houston from ChevronTexaco facilities in New Orleans, Midland and San Ramon, California. Approximately 1,800 ChevronTexaco workers work in downtown Houston now.
ChevronTexaco would pay taxes on the $80 million base value of the building.
Details of the transaction were not disclosed, but Mayor White will ask City Council to approve a negotiated tax abatement agreement with Chevron U.S.A. Inc., a subsidiary of ChevronTexaco Corp.
ChevronTexaco plans a minimum $45 million in real property interior finish improvements and $19 million in tangible personal property improvements, according to the City Planning and Development Department.
Originally, the 1500 Louisiana Street building was constructed by Enron. It never was occupied after the financial collapse of that company.
“This helps Houston close that chapter in its business history and move forward with one of the strongest energy companies in the world,” said Mayor White.
Construction on the facility is expected to be completed by summer 2006.
