The Economic Development Partnership Board on Oct. 8 recommended that City Council approve a nomination of Tetra Pak Inc. to the Governor’s Office of Economic Development and Tourism under the Texas Enterprise Zone Program.

Erica Sullivan, economic development program administrator for the City of Denton, summarized the state program and the company’s application. “Successful applicants are able to apply for a sales tax refund through the state,” Sullivan said, explaining the program’s partnership requirement between local governments and businesses and the city’s limited nomination allotment (the state has 105 nominations and the City of Denton has six per biennium).

Sullivan presented Tetra Pak’s proposed capital investment in Denton at $12,000,000 and a breakdown the meeting materials listed: $1,500,000 for gas-powered rooftop HVAC units; $7,000,000 for facility enhancements such as an employee weight room and roof/window/door replacements; and $3,500,000 to complete a customer innovation center. Because Tetra Pak’s proposed investment falls in the enterprise project category, the materials showed a potential state sales-tax refund calculated at $2,500 per eligible job for up to 500 jobs and a maximum potential refund of $1,250,000. Sullivan said there is no fiscal impact to the city for making the nomination.

The board moved and seconded a motion to recommend City Council approve the nomination; the motion was seconded by Rick Wolfolk and passed without opposition. Sullivan noted the project is scheduled for City Council consideration Oct. 21. A consultant on the project, Janssen Gibbons (Ryan, consultant), was present to answer questions.

Board members asked procedural and eligibility questions: how the enterprise program is administered by the Governor’s Office of Economic Development and Tourism (Sullivan explained that office hosts multiple state incentive programs), program location rules (projects inside the enterprise zone may require a lower share of disadvantaged or veteran hires), and whether Tetra Pak planned to seek local incentives (Sullivan said the company indicated it did not plan to apply for local incentives at this time).