The Hooks Independent School District has filed a lawsuit in Bowie County District Court alleging that TexAmericas center did not fulfill an agreement made between the two and has cost the district a substantial amount of funding.
The lawsuit states, “ On or about February 25, 2019, TAC contacted the District about joining TAC in its efforts to obtain the passage of special legislation by the Texas Legislature to amend Chapter 3503 of the Special District Local Code, which would allow leased properties owned by TAC to be exempt from paying ad valorem taxes customarily assessed by the taxing entities in Bowie County, Texas (“Special Legislation”). The Special Legislation provided that a leasehold or other possessory interest granted to a person or entity by TAC or by a nonprofit corporation holding title for TAC would be exempt from paying ad valorem taxes during the period that TAC or a nonprofit corporation holding title for TAC owns the fee interest in the property. TAC represented to the District that the passage of this Special Legislation would permit TAC to implement its Paymentin- Lieu-of-Taxes program (“PILOT Program”), which would allow TAC to collect funds from its leaseholders that would have been paid as ad valorem taxes and return those payments to the District, as well as to other taxing entities. TAC represented to the District that the taxing entities would be made whole from any revenue loss as a result of the passage of Special Legislation. On February 25, 2019, Mr.Jeff Whitten, Chief Operations Officer of TAC and Vice President of the Hooks ISD Board of Trustees at that time, represented to the Board of Trustees at a duly called meeting that “those entities,” meaning the tenants or lessees of TAC properties, “would pay to TexAmericas, and TexAmericas would then cut a check to the school district in that amount.”
Hooks ISD passed a Resolution on February 25, 2019, in support of the Special Legislation and on May 31, 2019, the Special Legislation was signed into law by Governor Abbott through Senate Bill 579.
