(BRK.A), (BRK.B)
Berkshire Hathaway’s wholly-owned specialty chemical company, Lubrizol Specialty Products Inc., is planning to build a 66,000 square-foot building in Bryan, Texas.
Under the terms of the Chapter 380 agreement that was approved earlier this month by the Bryan city council, Lubrizol will receive 100 percent tax abatements in year one, 70 percent in year two, and the tax abatements would then decrease by 10 percent each year, ending at 10 percent in year eight.
Lubrizol will also be reimbursed an amount not to exceed $75,000 for development costs including site plans, platting and permit fees for the new facility. The reimbursement is eligible upon upon the issuance of a Certificate of Occupancy for the facility.
In exchange for the abatements, Lubrizol agrees to construct the 66,000 square-foot building, a minimum of $25 million in real property while maintaining a minimum increase in Brazos Central Appraisal District value of $20 million.
In addition, Lubrizol must hire at least 24 new employees with an increased payroll of $1.5 million.
About Lubrizol
Based in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 7,500 employees worldwide. It sells its specialty chemical products in over 100 countries.
© 2015 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.