DeSoto approves up to $600,000 Chapter 380 package to retain and expand Allied Interiors

The DeSoto City Council unanimously authorized March 4 the city manager to negotiate and enter a Chapter 380 economic development agreement with Allied Interiors (doing business as Square Cabinetry / Allied Stone Inc.) not to exceed $600,000 to support the company’s planned expansion in DeSoto.

Economic Development Manager Antoine Long told the council Allied Interiors began operations in DeSoto in 2016, has expanded twice and plans a third expansion that the company estimates will involve roughly $22,000,000 in new investment and a percentage increase in production capacity. The project would add both production roles and additional back-office positions (administrative, marketing, IT, finance and human resources), the city said.

The incentive proposal recommended by the city’s economic-development board and presented to council consists of two components over a six-year compliance period: a 60 percent rebate of business personal property (BPP) taxes for the qualifying investment (estimated at roughly $397,000) and a 50 percent rebate of inventory taxes (estimated at roughly $203,000). Combined, the rebates total up to $600,000 and will include compliance reporting and clawback provisions requiring repayment if the company fails to meet agreed investment or employment targets.

Councilmembers discussed workforce-development opportunities tied to the expansion and asked staff to pursue stronger linkages with DeSoto ISD, Dallas College and other workforce partners so local residents can access training and hiring pathways. Staff said the company has expressed interest in workforce partnerships and that the city would continue to coordinate with training partners and the employer to support local hiring.

The motion to authorize the agreement and delegate authority to the city manager to finalize terms, including compliance reporting and clawbacks, was made by Councilmember Andre Byrd and seconded by Mayor Pro Tem Leticia Hughes. The vote was unanimous.

Staff said the final agreement will return to the city for signature after negotiations and that incentive disbursements will be contingent on documented compliance with the investment and hiring commitments spelled out in the Chapter 380 agreement.