Chevron Tower For Downtown At 1600 Louisiana St.

[79ta]

chevron thread? isn't this a pic of block 334?

[Triton]

17 minutes ago, 79ta said:

chevron thread? isn't this a pic of block 334?

Isn't that the old YMCA building on the left?

[79ta]

6 minutes ago, Triton said:

Isn't that the old YMCA building on the left?

it is. my post was a joke...

[Triton]

12 minutes ago, 79ta said:

it is. my post was a joke...

LOL... Nice.

[nativehoustonion]

To bad this one must of got cancelled. I don't think this will ever get built. 

[htownboy]

just beeelllliiiieeeveeeee

[H-TownChris2]

3 hours ago, nativehoustonion said:

To bad this one must of got cancelled. I don't think this will ever get built. 

We have until September...patience my friend...

[jgriff]

I would be absolutely shocked if anything happens on this soon. The majors are still in massive cost reduction mode. They are more likely to cut office space than build anything new. I have no direct knowledge of Chevron but I have heard the cuts at Shell described as a bloodbath. 

 

My company services all the majors, they are still cutting their budgets. In response we are closing offices and selling off assets. We're a year and a half into this crash and the cuts are still getting deeper. We had 3 office closure announcements this week and are expecting more soon. 

 

Things are still not well in the oil business.

[nativehoustonion]

Chevron received tax abatements from the COH and the state.  Then laid off employees and never built the tower. They should use the lot with a monument of a oil rig. 

[H-Town Man]

So they never transferred all the jobs that they were going to transfer to Houston? Always wondered what happened with that.

 

[HoustonIsHome]

Government always in bed with fat cats.

Chevron knows what it can get away with.  Especially with Exxon pulling out of downtown. 

 

I hate that we lost such a large tax base in the heart of our city. Some of these  taxe payers could have lived in and around downtown, contributing to the $$$ that make the city stronger. But instead of focusing on strengthening the core to keep the tax base that we have,  we want more and more loops so our biggest tax payers can flee further and further away.

 

Back directly on topic, the powers that be at chevron know what they are doing.  The city knows who butters their bread.

[Timoric]

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Edited July 10, 2019 by Timoric

[samagon]

is the tax abatement on the planned improvements when they are completed, or on the current unimproved state?

 

this makes no sense to me:

http://www.houstontx.gov/ecodev/abatements/chevron2013.pdf

[wxman]

I wish dead topics would stay dead. I got all excited when I saw it pop up at the top of the thread and then BAM! Let down.

[Houston19514]

36 minutes ago, samagon said:

is the tax abatement on the planned improvements when they are completed, or on the current unimproved state?

 

this makes no sense to me:

http://www.houstontx.gov/ecodev/abatements/chevron2013.pdf

 

The city tax abatement was on the improvements (construction of 1600 Louisiana).  No improvements === No abatements.

[Ross]

In the meantime, Chevron is paying taxes on the vacant land, about $637k last year, while the YMCA paid nothing. So, the property is generating more revenue for government, even as it sits empty.

[DNAguy]

1 hour ago, Houston19514 said:

 

The city tax abatement was on the improvements (construction of 1600 Louisiana).  No improvements === No abatements.

 

Quote

4. Termination of Abatement and Agreement

 

Notwithstanding any other provision in this Agreement, in the event the Owner decides not to commence the Project, the Owner will provide a written termination notice to the City and the Parties will sign a letter agreement acknowledging the termination of this Agreement in a form reasonably acceptable to both Parties; provided, however, that neither Party shall impose any conditions upon the other Party as a pre­requisite to such Party's execution of the letter agreement. In such event, this Agreement and all rights and obligations of the Parties shall cease and terminate and the Owner shall not be entitled to any tax abatement pursuant to this Agreement. The Director is authorized to sign the letter agreement on behalf of the City.
Also, during the Abatement Period, the Owner shall have the option and right at any time to give the City written notice that the Owner has elected to terminate this Agreement and its right to tax abatement on the Improvements effective as of the year in which the termination notice is given by the Owner; provided, however, at the time the termination notice is given by the Owner, no event of default shall exist which has not been cured. Upon delivery to the City of a termination notice by the Owner and subject to the proviso of the preceding sentence, this Agreement and all rights and obligations of the Parties shall cease and terminate and the Owner shall not be entitled to any tax abatement pursuant to this Agreement for the year in which the termination notice is given by the Owner and for all years remaining in the Abatement Period.

 

5. Representations and Warranties

(a) The Owner represents that it owns the Real Property.
(b) Unless terminated earlier pursuant to Section 4 hereof, the Owner represents that it will complete construction of the Improvements on the Real Property no later than July 31, 2017. The Owner further agrees that if construction on the Real Property is not completed by July 31, 2017, this Agreement will automatically be null, void, and of no further force or effect unless the Owner has requested and received approval of an extension. Not later than July 15, 2017, the Owner may submit to the Director a written request to extend the time for completion stating the proposed date of completion. The Director shall approve the request if he or she reasonably believes that the construction will be completed by the proposed date, taking into account all circumstances.

The Owner represents that the execution and delivery of this Agreement has been duly authorized by all requisite actions of its corporate officers that are necessary for it to have force and effect and that the person signing this Agreement on behalf of the Owner is authorized to do so.
(d) Unless terminated earlier pursuant to Section 4 hereof, the Owner represents and warrants that the construction and installation of the Improvements described in EXHIBIT 3 will begin after the Agreement Effective Date. The Owner represents that the Real Property is comprised of approximately 1.9 acres of land.
(e) The Owner represents that, to the best of its knowledge, no interest in the Real Property or the Improvements is held or leased by a member of the City Council or a member of the City's Planning Commission.
(f) Unless terminated earlier pursuant to Section 4 hereof, the Owner represents and warrants that it will invest a minimum of $576,000,000.00 in designing, constructing, and installing the Improvements in the Zone by the Effective Date of Abatement.
(g) Unless terminated earlier pursuant to Section 4 hereof, the Owner represents and warrants that by the year 2020, the Owner will employ, and will continue to employ throughout the Abatement Period, at least 1,752 Permanent Employees in the Center whose employment position on the Effective Date of Agreement does not exist. The breakdown of the job creation requirement is as follows:

1. Eight Hundred (800) jobs by 2017
2. One Thousand One Hundred (1,100) jobs by 2018
3. One Thousand Four Hundred (1,400) jobs by 2019
4. One Thousand Seven Hundred Fifty-Two (1,752) jobs by 2020

(h) The Owner represents that as of the Effective Date of this Agreement, new employment positions will only be counted as new Permanent Employees for purposes of this Agreement if they are above the total number of employment positions with the Owner's operations in the Center (the ''Threshold.") The Parties agree that for purposes of this Agreement, the Threshold shall be Six Thousand Thirty-Six (6,036).

(I) The Owner represents that developing, constructing, installing, and renovating the Improvements in the Zone will contribute to the retention, expansion, and creation of primary employment and will attract major investment in the Zone that would be a benefit to property within the Zone and that would contribute to the economic development of the City.
(J) Unless terminated earlier pursuant to Section 4 hereof, the Owner represents and warrants that it will design, develop, construct, and install the Facility as described in EXHIBIT 4.
(k) The Owner represents and warrants that the Improvements will be designed, developed, constructed, and installed in accordance with all applicable federal, state, and local environmental laws and regulations.

 

 

In addition, they're not going to meet the job targets that would need to happen.

[htownproud]

I'm sure we all want the new building built, but let's not kick a gift horse in the mouth.  Chevron is the only major that has remained downtown.  Two weeks ago they announced they were closing facilities father out to concentrate their employees downtown.  Be happy they didn't do the opposite and move people farther out, like every other company in Houston is doing.  

[HoustonIsHome]

20 minutes ago, htownproud said:

I'm sure we all want the new building built, but let's not kick a gift horse in the mouth.  Chevron is the only major that has remained downtown.  Two weeks ago they announced they were closing facilities father out to concentrate their employees downtown.  Be happy they didn't do the opposite and move people farther out, like every other company in Houston is doing.  

That's exactly why I said the city knows who butters their bread.

[Houston19514]

1 hour ago, htownproud said:

I'm sure we all want the new building built, but let's not kick a gift horse in the mouth.  Chevron is the only major that has remained downtown.  Two weeks ago they announced they were closing facilities father out to concentrate their employees downtown.  Be happy they didn't do the opposite and move people farther out, like every other company in Houston is doing.  

 

I missed that announcement.  Do you have a link or source?

[MarathonMan]

3 hours ago, htownproud said:

I'm sure we all want the new building built, but let's not kick a gift horse in the mouth.  Chevron is the only major that has remained downtown.  Two weeks ago they announced they were closing facilities father out to concentrate their employees downtown.  Be happy they didn't do the opposite and move people farther out, like every other company in Houston is doing.  

 

Is it a tax issue that's driving large corporations out of downtown?  Or, do they just not like the downtown environment?

[lockmat]

1 hour ago, MarathonMan said:

 

Is it a tax issue that's driving large corporations out of downtown?  Or, do they just not like the downtown environment?

 

My simple guess is rents and construction costs. They also build closer in the burbs where most of their employees live.

[htownproud]

7 hours ago, Houston19514 said:

 

I missed that announcement.  Do you have a link or source?

Internal Chevron email a few weeks ago.  They are leaving the Bellaire facility and moving people downtown (a few will go to Briarpark facility).  

[htownproud]

On 7/19/2016 at 3:37 PM, Houston19514 said:

 

I missed that announcement.  Do you have a link or source?

 I saw there was an article in the Chronicle about this today.  Here's a blurb:  

 

Chevron is selling two of its larger Houston-area real estate holdings, including more than 100 acres on the west side of town and a 10-story office building in Bellaire. The Bellaire facility at 4800 Fournace Place near the West Loop is being sold as part of an effort to "maximize our office space usage," Chevron spokesman Cam Van Ast said in an email Friday.

Employees who work in the building will move by the end of 2017.  The Bellaire facility at 4800 Fournace Place near the West Loop is being sold as part of an effort to "maximize our office space usage," Chevron spokesman Cam Van Ast said in an email Friday.  Chevron is selling two of its larger Houston-area real estate holdings, including more than 100 acres on the west side of town and a 10-story office building in Bellaire.“

 

 

 

 

The second property for sale includes 103 acres at Clay Road and the Grand Parkway. The company bought it about two years ago for a research and development facility. Cushman & Wakefield is marketing the site. 

Texas "remains the global center for our upstream business and other functions and we expect to continue to be a long-term partner to the city and state," Van Ast said.”

 

 

  

 

[lockmat]

On July 20, 2016 at 11:24 PM, htownproud said:

Internal Chevron email a few weeks ago.  They are leaving the Bellaire facility and moving people downtown (a few will go to Briarpark facility).  

 

Is there a lot of open office space downtown? Surely that doesn't mean they're building the tower, does it?

[CREguy13]

16 hours ago, lockmat said:

 

Is there a lot of open office space downtown? Surely that doesn't mean they're building the tower, does it?

Highly unlikely.  They own both former Enron bulidings and lease about 1m SF in 1600 Smith and Two Allen.

[nativehoustonion]

Hate to say it but this building is DEAD! 

[strickn]

On 7/23/2016 at 8:16 PM, lockmat said:

 

Is there a lot of open office space downtown? Surely that doesn't mean they're building the tower, does it?

 

Building on what CREguy13 said, Chevron subleased 345,000 sf of Devon's space at Two Allen Center in 2013, a couple of years after signing a seven year renewal on 311,000 sf at Continental Center I (1600 Smith Street).  

 

However, United Airlines is in the process of downsizing by a half million square feet -- most of that in 1600 Smith.  At the time of the 2010 merger, Continental occupied at least 700,000 sf downtown  (220,000 at Continental Center II, 600 Jefferson (now 1801 Smith) and 480,000 at Continental Center I).  They are now at half that, and when the contracts expire in a couple of years, they will leave completely for 609 Main at Texas.  I believe that lease was announced at 225,000 sf.  Chevron, unless unhappy with 1600 Smith, will have much more freedom simply expanding into United's vacated space than waiting years for a costly development to be built to suit.

 

[Urbannizer]

[Avossos]

46 minutes ago, Urbannizer said:

 

I can’t see this image...

 

Is there reason to be hopeful?