The Economic Development Partnership Board on a voice vote recommended that the City Council consider a Chapter 380 incentive package for United States Cold Storage to support a planned expansion at its Denton facility.

Erica Sullivan, economic development program administrator for the city, told the board the project would add a roughly 100,000‑square‑foot expansion on the company’s existing tract at 3255 Jim Cristal (as reported in the staff packet), involve about $35 million in capital investment and create 72 new jobs with a weighted average wage of about $50,583. Sullivan described the request as a performance‑based proposal that would return 60% of ad valorem taxes on improvements and business personal property for eight years and a one‑time 75% rebate of sales and use tax on construction and equipping costs. Sullivan said the staff recommendation was for a Chapter 380 agreement “not to exceed” the figure shown in the agenda/packet and that, if approved by the board, the item would go to City Council for individual consideration in early June.

The board’s discussion focused on two topics: the fiscal return of the expansion and a prior compliance issue. Sullivan reviewed the economic impact model included in the packet, saying the expansion alone produced a 24.9% rate of return with a payback period of roughly 4.8 years; when combined with the existing facility the model showed a substantially higher combined return. Board members asked about a prior termination: Sullivan told the board that the city terminated an earlier construction sales‑tax incentive in 2023 after finance staff could not verify that the company had obtained a Texas Direct Payment permit for the Denton site and instead appeared to have filed that permit with Dallas, preventing the city from confirming sales tax sourcing for the Denton facility. Sullivan said finance reported they could not find the permits or separate reporting for Denton in the confidential reports they reviewed.

Board members pressed staff on whether controls are in place to prevent a repeat of the verification problem. Sullivan said staff has provided technical assistance to the company and that the company is using a consultant; she and legal staff said they would need to confirm whether any remedy or retroactive calculation would be possible if state records were later changed or audited. The board also discussed timing of the expected construction rebate (staff estimated the one‑time sales‑tax rebate would appear in year two after issuance of the certificate of occupancy for the expansion).

The board voted in favor of recommending the incentive package to City Council by voice vote. Per staff, the next step would be City Council review and potential execution of an agreement after council approval.

Votes at a glance: EDP 25‑012 (U.S. Cold Storage) — board recommendation to City Council for a Chapter 380 incentive package including a 60% ad valorem rebate for eight years and a one‑time 75% construction sales/use tax rebate; motion passed by voice vote; mover/second not specified in the transcript.

The item will return to City Council for individual consideration; staff identified June as a target month for that council action.