We are well into discussions with the development of speculative buildings within the Business Park. That goes along with several private equity investment companies we are working with.To date the AG's Office has not replied. I called several days ago but the phone message said staff would be severely limited between December 23rd and January 3rd. It's been two months and the City of San Angelo has shared zero information regarding this request.
West Texas is hot for investment, given its multiple sources of energy production, oil/gas, wind and solar. The Industrial Park has access to power, water and sewer. It is served by San Angelo Police and Fire Departments.
Brookfield noted:
Private investors who invest with discipline and understand how to navigate regulatory regimes have an opportunity to invest in high-quality critical infrastructure, where these tailwinds are generating opportunities to grow the regulated asset base with accretive returns and strong downside mitigation. Further, such private investors with boots on the ground in local markets are well-positioned to partner with utilities and other relevant stakeholders to execute custom solutions.
Another investment opportunity is in assisting energy-intensive companies such as data center operators in securing enough power to meet their future needs. Private investors with the capability to execute power purchase agreements stand to benefit from this trend, and this also underlines the need and potential for investment in both onsite, “behind the meter” renewable power and transmission connection.
Four months ago San Angelo's City Council approved an 85% tax abatement on an energy storage facility (battery farm) near the Industrial Park. The private equity backed Zeppelin Energy Storage is not far from the Industrial Park. Zeppelin will provide less than one new full time job in return for a $2.65 million tax break over a three year period. The $2.65 million figure was not shared with City Council nor the public in the September 2024 meeting.
Opaqueness has long been a core competency of private equity underwriters (PEU). Local governments should not enable that, especially in situations where PEU projects are receiving substantial public benefit, either in direct economic payments/subsidies or via tax breaks. The Texas Attorney General's Office should not condone or facilitate such enabling.
Imagine getting a significant public benefit with no transparency. That almost sounds illegal, however it has been the PEU way for decades. They've ridden into our town, intent on taking. Local officials seem ready to give while protecting the purloiner's identity.
Politicians Red and Blue love PEU and increasingly, more are one.
