Mayor Bill White yesterday announced the catch at a press conference along with details for a 10-year tax abatement proposal, which still needs council approval. ChevronTexaco will pay taxes on the building's $80-million base assessment, but will get a break on a $45-million tab to build out shell space for offices and the estimated $19 million to be spent on tangible property like desks and computers. Robert Litke, Houston's director of city planning and development, says the abatement will average 89% annually over the term and drive a total savings of about $3.7 million for ChevronTexaco.

"We are ecstatic because it shows continued demand for a downtown presence by large corporations and will lead other smaller and medium-size firms to want to locate here also," says Laura Van Ness, director of business development for Central Houston Inc.

The 1500 Louisiana build-out will be done by summer 2006. The move begins this year for 3,700 employees, including 500 coming from New Orleans, Midland, TX and San Ramon.

"The bleeding has stopped from the great energy trading debacle," says Martin O"Malley, senior vice president in Houston for Colliers International. "ChevronTexaco will benefit from all of the money Enron dumped into that building."

The mayor echoed similar sentiments in a press release. It is, he said, "a major step forward for the Houston economy ... (and) helps Houston close that chapter in its business history and move forward with one of the strongest energy companies in the world."

Greg Cizik, also a Colliers' senior vice president, says the deal definitely eases the sting of 4.3 million sf of negative absorption in the last two years. And, he adds, the long-awaited announcement of "a household name in a world-famous building" finally solves the mystery about the prominent skyscraper's fate.