"The relocation of Citgo's corporate headquarters will bring 700 quality jobs to Houston, enhance this city's reputation as the 'Energy Capital' of the world and send one more strong signal that Texas is at the forefront of new jobs and opportunities as the national economy begins to recover," Gov. Rick Perry said at yesterday's press conference to announce a win that ended months of hard-fought negotiations and street speculation.
Although the deal has been delivered, none of the officials would say where the headquarters will go. Real estate sources say Citgo is looking for 250,000 sf to 300,000 sf.
Some market watchers are wagering bets on the 52-acre BMC Software's Westchase campus, which has 1.5 million sf in four buildings at the intersection of Westheimer Road and Sam Houston Parkway. BMC reportedly has 650,000 sf available for sublease. Others are making book on the 1.5-million-sf Williams Tower at 2800 Post Oak Blvd., where another Tulsa giant, the Williams Cos., opened up a 600,000-sf hole after downsizing from one million sf to 217,595 sf in the Galleria property. And others say Citgo has indicated it will take another whirlwind tour of the market before making a final decision for the headquarters location.
"This is wonderful, even if they don't end up coming Downtown," Laura Van Ness of Central Houston Inc. tells GlobeSt.com. "We are excited because it is good for Houston."
At the press conference held in city hall, Citgo president and CEO Luis Marin said the move will begin in the summer so a location decision definitely is imminent. It will take about two years to complete the move from Tulsa.
The 700 jobs, predominately white collar, will be a mix of transfers and local hires, representing a doubling of Citgo's Texas workforce. About 300 jobs will remain in Tulsa.
With Houston's "uncontested status as the energy capital," Mayor Bill White said Citgo is sure to benefit "with some of the obvious strategic advantages, including the availability of our talented, energy-oriented workforce."
About $35 million of tax dollars went into the incentive package. The state's enterprise fund chipped in $5 million while Houston and Corpus Christi, home to a Citgo refinery now in line for an $828-million upgrade over a 10-year period, are putting up $30 million in low-interest loans to Citgo through the Texas Economic Development Bank's bond program. Corpus Christi will realize a 120-job gain for its participation. Citgo also owns a 41% stake in the Lyondell-Citgo refinery in Houston.
Just two months ago, Houston was toasting a decision by San Ramon, CA-based ChevronTexaco to bring 500 jobs to town, buying Enron's 1.2-million-sf 1500 Louisiana St., once rumored to be a likely headquarters location for Citgo. The Bayou City newcomer, which employs 4,200 in the US, is owned by PDV America, a subsidiary of Venezuela's national oil company.
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