TJC Approves Tax Abatement For Oil Company By MEGAN MIDDLETON, Staff Writer   |   Mar 27, 2009

Tyler Junior College trustees unanimously approved a tax abatement for an oil and gas production company to encourage the company to move its operations headquarters to Tyler.

The abatement for Vernon E. Faulconer Inc. is for three years, starting in January 2010, with a fourth year possible if the company creates 25 jobs.

Earlier, Smith County Commissioners, in a 3-2 vote, approved a similar abatement for the company.

Trustee Rohn Boone said during the board's work session, "We have an opportunity to have a greater part of Vernon's business in the Tyler area. He does a lot for the community, and that, I think, is really important. Mr. Faulconer does so much for so many, especially in education."

Faulconer, which has 42 employees in Tyler, is considering consolidating operations here.

Currently, the corporate president and corporate aircraft are headquartered in Louisiana.

The company projects seven positions would be added in Tyler over two to three years, according to the information.

The projected capital expenditure/new investment for Smith County would be about $13 million.

According to information, the relocation initially would include the president and two pilots, plus purchases of fuel and maintenance and repair services. Faulconer is considering a lease on a 15,000-square-foot hangar, which would be built at Tyler Pounds Regional Airport and include offices.
At the TJC tax rate of 0.127169 per $100 valuation, it is estimated TJC would forego up to $49,596 over three years and up to $66,128 if the term is extended to four years.

Boone, who is on the board of Tyler Economic Development Council, said TEDC sees the abatement as good and for TJC, "We know Vernon and we know what he's doing for Tyler Junior College and the scholarships. He gives a lot to the community. I think this will not only bring employees but will also spur some growth at the airport."

Trustee David Hudson made a motion to approve the request, noting, "Tyler Junior College and the TJC Board of Trustees has a long history of supporting economic development in this community and because of our tradition of doing that and because of the importance of this project to the community, I'd like to make a motion to approve this request."