Cameron County approves $211M incentive deal for proposed Saronic shipyard

Cameron County leaders approved an economic incentive deal for Austin-based Saronic Technologies, a company promising to bring 10,000 jobs and $3.2 billion in investment to the Port of Brownsville, on Tuesday. 

The deal offered Saronic a 95% property tax abatement on its estimated $2.7 billion property tax value over four phases of development, stretching beyond the typical 10-year mark to 19 years, ending in 2048. The value of the property tax break is estimated to be at least $100 million. 

The total value of the economic incentive deal is $211 million over four phases starting in 2029, which is tied to job creation. In addition, Greater Brownsville EDC offered $10 million as an additional economic incentive to help seal the deal. 

Saronic plans to build a next-generation shipyard to manufacture autonomous vessels for the U.S. Navy for wartime operations and commercial customers. 

Cameron County Judge Eddie Treviño Jr. previously called the project a “win-win” for the community. 

“After months of negotiation, due diligence, and collaboration, we are proud to approve these agreements and demonstrate to Saronic that we believe in their project and invite them to plant roots in Cameron County,” Treviño Jr. said in a statement on Tuesday after the vote. “I’m proud of the Commissioners’ Court for understanding what is at stake and voting to support these agreements. This is exactly the kind of investment that positions Cameron County as a statewide and national leader in innovation and workforce excellence.” 

The vote was delayed twice: first because the company wanted more time for its extensive, multi-part application, and most recently because not enough commissioners were present to make a decision. Once again on Tuesday, two commissioners, Gus Ruiz and David Garza, were not present and did not vote. 

Dozens of speakers shared reasons either in favor or against the project. Economic development officials touted the deal as a way to move the community forward, while environmental activists and labor union representatives chided the company for seeking incentives while the average resident does not get tax breaks, and warned that bringing in a military contractor would not be in the best interest of the community. 

In exchange for incentives, Saronic outlined the types of jobs it would create, from welders to administrators, with a minimum wage of $25 an hour and an average closer to $36 an hour. 

The median household income in Cameron County is about $24 an hour, according to the Workforce Solutions office. That could account for two adults working $12-an-hour jobs each, or one earning a minimum wage of $7.25 and the other working closer to $17 an hour. 

Saronic promised that 35% of its workforce would be Cameron County residents, and it would participate in job fairs and educational training. 

Saronic already secured property tax breaks from the Point Isabel School District — a board that voted against incentive deals for other projects, including an LNG export terminal. 

Greater Brownsville EDC estimates that the Saronic Technologies shipyard could generate an economic impact of $4.9 billion, 20,000 jobs when indirect jobs are included, and $1.4 billion in annual wages for 10,000 workers, thereby increasing the community’s total gross domestic product. 

The deal is not yet done; Cameron County is still competing with sites in Virginia and California.