By Juan Montoya
Despite the grudging acquiescence of the chairman of the five-member board of the Greater Brownsville Incentives Corporation to go along with the other four, the GBIC agreed to provide Keppel-Amfels $2.8 million in job-creation incentives for the hiring of 700 new jobs in its diversified expansion into the shipbuilding business.
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Chair and city commissioner Jessica Tetreau-Kalifa made it clear throughout the discussion that she was not in favor giving the OK to the incentives that would amount to $4,000 per new job. She made it a point to demand that the company show the majority of its labor was from the city.
"We're tied at the hip," said GBIC board member and city commissioner Cesar de Leon in justifying his support for the incentives.
Keppel Amfels has been employing local workers for the last 26 years and at its peak hired as many as 3,000 workers.
The worldwide glut in oil has taken its toll on the oil-exploration platform market and now the workforce hovers near 350, with many worker barely getting 30 hours a week at the plant. The company's officials said that there are only three other ship-building companies in the United States.
At one time, Keppel Amfels was Cameron County's fifth largest employer.
The new plan said the incentives will be used to create 700 new jobs with an average salary of $18.48 per hour over the next four years.
Brownsville Economic Development Corporation item back-up on the said GBIC's investment would be protected by a "claw-back" provision that jobs requires the company to return any money if the jobs are not created. Amfels has in the past returned GBIC incentives when the required number of jobs were not created. That has already happened once, the narrative says.
The meeting was held the city commission chambers at the old federal building at 1001 E. Elizabeth Street in downtown Brownsville. Some 15 people representing Keppel Amfels, economic development types and a smattering of private citizens. Port director Eddie Campirano was there to express his support for the incentives.
In its agenda, the GBIC did not name the company or the importance of the approval of the company's application for the $2.8 million in incentives. It only listed agenda items as Plan A, B, or C. The agenda was not even posted on GBIC's website.
There was a real danger that unless the funds allowing them to diversify into shipbuilding, the very real possibility existed that it would consider seeking another site away from the city.
The GBIC members are chair and city commissioner Tetreau-Kalifa, city commissioner Deborah Portillo, city commissioner De Leon, John Cowen, Jr., and Cameron County Treasurer and board member David Betancourt .
Sources close to GBIC say that there are other suitors waiting in the wings to take over should the incentives be denied and the company chooses to relocate its operations elsewhere.
Sources say that Tetreau had indicated she may be unwilling to dispense with $2.8 million for the 700 new jobs in the hope that Kepel Amfels will clear the way for other investors who may be willing to take over the property at the Brownsville Navigation District. Prominent among those named as potential suitors is none other than Ambiotec's Carlos Marin, an engineering-company director who has made a fortune being GBIC's exclusive engineering company over the years.
"You know that Carlos has issues with the port," said a GBIC member, but did not elaborate.
The decision on whether the grant the $2.8 million will be made today after the proposal was considered at n least three previous GBIC meetings. At last monthly five members were present but three did not vote citing conflict of interest issues.
At least 83 percent of the workers at Kepel Amfels are from Brownsville. Retooling of the Keppel Amfels facility will cost the company $34.3 million, and the company argued that its diversification into the shipbuilding business will allow it to stay here for another 25 years.
Despite the grudging acquiescence of the chairman of the five-member board of the Greater Brownsville Incentives Corporation to go along with the other four, the GBIC agreed to provide Keppel-Amfels $2.8 million in job-creation incentives for the hiring of 700 new jobs in its diversified expansion into the shipbuilding business.
Chair and city commissioner Jessica Tetreau-Kalifa made it clear throughout the discussion that she was not in favor giving the OK to the incentives that would amount to $4,000 per new job. She made it a point to demand that the company show the majority of its labor was from the city.
"We're tied at the hip," said GBIC board member and city commissioner Cesar de Leon in justifying his support for the incentives.
Keppel Amfels has been employing local workers for the last 26 years and at its peak hired as many as 3,000 workers.
The worldwide glut in oil has taken its toll on the oil-exploration platform market and now the workforce hovers near 350, with many worker barely getting 30 hours a week at the plant. The company's officials said that there are only three other ship-building companies in the United States.
At one time, Keppel Amfels was Cameron County's fifth largest employer.
The new plan said the incentives will be used to create 700 new jobs with an average salary of $18.48 per hour over the next four years.
Brownsville Economic Development Corporation item back-up on the said GBIC's investment would be protected by a "claw-back" provision that jobs requires the company to return any money if the jobs are not created. Amfels has in the past returned GBIC incentives when the required number of jobs were not created. That has already happened once, the narrative says.
The meeting was held the city commission chambers at the old federal building at 1001 E. Elizabeth Street in downtown Brownsville. Some 15 people representing Keppel Amfels, economic development types and a smattering of private citizens. Port director Eddie Campirano was there to express his support for the incentives.
In its agenda, the GBIC did not name the company or the importance of the approval of the company's application for the $2.8 million in incentives. It only listed agenda items as Plan A, B, or C. The agenda was not even posted on GBIC's website.
There was a real danger that unless the funds allowing them to diversify into shipbuilding, the very real possibility existed that it would consider seeking another site away from the city.
The GBIC members are chair and city commissioner Tetreau-Kalifa, city commissioner Deborah Portillo, city commissioner De Leon, John Cowen, Jr., and Cameron County Treasurer and board member David Betancourt .
Sources close to GBIC say that there are other suitors waiting in the wings to take over should the incentives be denied and the company chooses to relocate its operations elsewhere.
Sources say that Tetreau had indicated she may be unwilling to dispense with $2.8 million for the 700 new jobs in the hope that Kepel Amfels will clear the way for other investors who may be willing to take over the property at the Brownsville Navigation District. Prominent among those named as potential suitors is none other than Ambiotec's Carlos Marin, an engineering-company director who has made a fortune being GBIC's exclusive engineering company over the years.
"You know that Carlos has issues with the port," said a GBIC member, but did not elaborate.
The decision on whether the grant the $2.8 million will be made today after the proposal was considered at n least three previous GBIC meetings. At last monthly five members were present but three did not vote citing conflict of interest issues.
At least 83 percent of the workers at Kepel Amfels are from Brownsville. Retooling of the Keppel Amfels facility will cost the company $34.3 million, and the company argued that its diversification into the shipbuilding business will allow it to stay here for another 25 years.