VGXI Misses Job Targets, Loses Tax Abatement from Montgomery County

VGXI Inc., a biotechnology firm based in Conroe, has reportedly defaulted on its tax abatement agreement with Montgomery County. As a result, the company is required to repay over $248,000 in overdue property taxes for failing to meet the necessary full-time employee count, as stated by county officials.

In January 2020, the Montgomery County Commissioners Court granted a 10-year abatement for VGXI to bolster the establishment of the company’s $17 million facility in Deison Technology Park, according to county records. However, the company did not fulfill the minimum employment standards specified in the agreement, as confirmed by Tax Assessor-Collector Tammy McRae this week.

According to McRae, “the company failed to uphold the stipulated number of full-time employees as outlined in the agreement.” The exact number of employees needed has not been revealed.

As part of the agreement, VGXI was granted a partial property tax exemption in return for creating jobs and investing in the local community. As per county documents, the company's default eliminates the tax benefit and triggers repayment of unpaid taxes dating back to 2021, totaling over $248,000.

In early 2020, VGXI received a distinct abatement agreement from the city of Conroe. City officials announced on Wednesday that they are currently “reviewing the agreement,” but they declined to provide additional details on possible future actions.

Representatives from VGXI have yet to respond to inquiries for comment.

VGXI, which was first based in The Woodlands, focuses on producing plasmid DNA for use in human clinical trials, creating viruses, conducting toxicology studies, and conducting preclinical research. In late 2019, the company emerged as the inaugural tenant of the long-unoccupied Deison Technology Park, following the city's approval of a $1.2 million incentive package to establish its 200,000-square-foot facility on the 21-acre site.

City leaders celebrated the project as a significant achievement for Conroe’s expanding biotech sector. In April 2021, the company marked an important milestone with the topping out of the facility, which subsequently began operations in early 2022, as reported on VGXI’s website.

The recent default represents a significant hurdle for local initiatives focused on establishing Conroe as a key player in the biotech sector. The county's enforcement of the agreement highlights the continuous accountability measures associated with corporate incentive deals.

County officials remained tight-lipped about the possibility of additional penalties or legal actions in the future.

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