Six months after it made plans to build a 50-story office tower in downtown Houston, Chevron Corp. put the plans on hold.
“Chevron continues to maintain a strong balance sheet and operating cash flow, but the company is in a unique, capitally-intensive period that will drive peer-leading production and value growth,” spokesman Justin Higgs said Thursday.
Chevron said development of a large office building project in Midland, the most vibrant city economy in the United States, is moving forward.
Some employees will still be relocated to Houston, a company spokeman said. But Chevron won’t decide if the Houston project will be restarted until after 2014.
Chevron said in July it would develop a 1.7-million-square-foot tower, designed by the HOK architecture firm. It has two existing downtown offices in Houston that aren’t impacted by the delay of the third tower, which was planned to house up to 4,200 workers
The building site at 1600 Louisiana St. at Pease is property that used to house the old YMCA building on the southern end of downtown, the Houston Chronicle said.
San Ramon, Calif.-based Chevron owns it two downtown buildings and purchased the building site for the third tower two years ago.
“For its economic contribution, the company was set to reap a $12 million gift from the Texas Enterprise Fund, as well as $2.7 million property tax abatement from the city,” the Houston Chronicle said.