Denton approves $35M incentive for United States Cold Storage expansion

In a pivotal meeting held at Denton City Hall, the Economic Development Partnership Board discussed significant expansion plans for United States Cold Storage, a key player in the temperature-controlled logistics sector. The company, which has been a staple in Denton for over a century, is seeking incentives to support a $35 million expansion of its facility, which promises to create 72 new jobs with an average salary of $50,583.

The presentation highlighted the company’s history and its critical role in the local economy, serving major food providers like Kraft and Butterball. The proposed expansion will take place on the same 45-acre site where the company currently operates, further solidifying its presence in the region. The expansion is expected to generate a total of 284 jobs when considering both direct and indirect employment impacts.

The board reviewed the financial implications of the expansion, noting a projected net benefit of $1.4 million over ten years, with a remarkable rate of return of 24.9%. The proposed incentives include a performance-based property tax rebate of 60% for eight years and a sales tax rebate for construction at 75%. These incentives are designed to encourage business retention and growth within Denton, aligning with the city’s strategic economic goals.

In addition to the cold storage expansion, the board also considered an incentive agreement for Mayday Manufacturing Company, which is planning a $14.5 million expansion to meet increased demand. This project is expected to create 50 new jobs and further enhance the local manufacturing landscape.

As the meeting concluded, the board expressed optimism about the future of these projects, emphasizing the importance of supporting local businesses to foster economic growth and job creation in Denton. The recommendations will now move to the city council for further consideration, with hopes of finalizing agreements by early June.