Panda Biotech's New PILOT Agreement with Wichita Falls
Panda Biotech has entered into an important PILOT agreement with the City of Wichita Falls. A PILOT (Payment In Lieu Of Taxes) agreement is a type of arrangement where a company pays a specified amount to the city instead of paying regular property taxes.
Key Terms of the Agreement
The agreement, spanning 12 years, stipulates that Panda Biotech will pay 50% of the normal city taxes for the first six years. For the remaining six years, the company will pay 60% of the normal tax rate. This reduced tax obligation is intended to support the company's operations while benefiting the local economy.
Additional City Services
Under this agreement, Panda Biotech will also benefit from:
- In-city water and sewer rates
- Disposal of all solid waste at the city landfill
- Fire protection services provided by the city
These services are crucial for the smooth operation of Panda Biotech's facilities.
Background of Panda Biotech in Wichita Falls
Panda Biotech's hemp gin plant in Wichita Falls opened in June after experiencing several delays. The company quickly met its required hiring and capital investment goals, which made it eligible for various tax breaks from the city. This new PILOT agreement is the latest step in the company's growing relationship with Wichita Falls.
Impact on the Community
The PILOT agreement is designed to foster a mutually beneficial relationship between Panda Biotech and the City of Wichita Falls. The reduced tax obligations for Panda Biotech allow them to reinvest in their operations and workforce, while the city benefits from increased economic activity and job creation.
What is a PILOT Agreement?
To put it simply, a PILOT agreement is a financial arrangement where a company agrees to pay a certain amount to the local government instead of traditional property taxes. This often helps attract businesses to the area, stimulating economic growth and job creation. For example, instead of paying $100,000 in property taxes, a company might agree to pay $50,000 under a PILOT agreement, while also committing to hire local workers or invest in local services.
Conclusion
The 12-year PILOT agreement between Panda Biotech and the City of Wichita Falls exemplifies how strategic partnerships can benefit both businesses and local communities. By reducing tax obligations and providing essential city services, Wichita Falls is fostering an environment conducive to economic growth and job creation.
