Council approves tax rebates for two Denton expansions — US Cold Storage and PanelRite gypsum plant

The City Council approved two economic development incentive packages at its July 15 meeting, both described by staff as recruitment or retention projects that committed private capital and jobs to Denton.

United States Cold Storage (USCS)

Staff said US Cold Storage proposed a new Denton cold‑storage facility on roughly 45 acres at 3255 Jim Crystal Road. The company informed staff it would invest about $35 million total (approximately $12 million in real‑property improvements and $23 million in business personal property) and create 172 new jobs over four years with an average wage reported at roughly $57,584 per position in the application. Staff recommended a Chapter 380 performance‑based grant in the form of a 60% property‑tax rebate on improvements and business personal property for eight years, plus a 75% construction sales‑tax rebate in year two. The staff estimate showed net new city revenue of roughly $1.09 million across the period after incentives and projected positive economic return and a 4.8‑year payback under their fiscal model.

PanelRite (PR Gypsum)

PanelRite (a U.S. subsidiary of Grupo ProAmi/Grupo Promax) is entering the U.S. market and seeks to rehabilitate/occupy an existing 60,000‑square‑foot industrial building on Shelby Lane, add a covered loading area and silos and to locate production and distribution operations in Denton. Staff said the project would invest roughly $10 million–$50 million (the application lists improvements and BPP plus building acquisition) and create 20 new jobs with a weighted average salary of about $72,733. Staff recommended a package that included a 60% real‑property rebate for five years, a 60% business‑personal‑property rebate for five years, a job‑based grant totaling $16,500 per qualified job over the incentive period and a one‑time relocation grant of $50,000. Staff’s economic model projected a short payback and about $617,000 of net city revenue after incentives.

Council action and context

Council voted to approve both incentive agreements by unanimous votes. Council discussion followed staff presentations but did not include substantive amendments to the recommended terms. Staff emphasized that both projects were either recruitment or retention opportunities and that both companies met the city’s incentive evaluation criteria.

Why it matters

Both approvals commit public incentives tied to performance and jobs. Staff argued both projects will create local jobs, expand Denton’s industrial and logistics base and add taxable value to the city’s property rolls. Councilors asked about workforce and skills development during the presentations and applauded the speed of the recruitment work by the city’s economic development team.

Votes at a glance

• United States Cold Storage (Chapter 380 performance‑based tax rebate; 60% rebate on improvements and BPP for 8 years; construction sales‑tax rebate 75% in year 2; estimated capital investment $35M; jobs: 172; council vote: 7–0, approved). • PR Gypsum / PanelRite (60% real property and business‑PP rebate for 5 years; job incentive ~$16,500 per qualified job; one‑time relocation grant $50,000; estimated new jobs: 20; council vote: 7–0, approved).

Next steps

Both agreements require the city and the companies to finalize performance contracts and reporting terms. Staff said the agreements include standard performance milestones and clawbacks tied to job creation and capital investment.