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Denton council approves incentives and tax abatement for Novartis Gene Therapies expansion
Summary
The Denton City Council unanimously approved an incentive package and a Chapter 312 tax abatement for Novartis Gene Therapies to redevelop a 50,000 sq. ft. site in Denton, a project staff estimates will invest about $280 million and create roughly 150–175 jobs.
The Denton City Council on Dec. 16 approved economic-development incentives and a tax abatement for Novartis Gene Therapies, clearing the way for the pharmaceutical company to redevelop a mothballed 50,000-square-foot facility at 2101 Shady Oaks Drive.
Staff presented a multi-phase plan in which Novartis would remove hazardous materials, complete environmental remediation and renovate existing buildings, followed by upgrades to enable specialized manufacturing. Economic development director Virdi Sotelo said the company estimates roughly $280 million in total capital investment and 150–175 new jobs with an average salary above $124,000.
“The project will serve as a catalyst for additional life science opportunities in Denton,” Sotelo said, arguing the site would return a defunct property to the tax rolls and generate local contracting work. Staff’s recommended local package included a Chapter 312 property tax abatement (50% for 10 years, estimate $2.3 million), a Chapter 380 grant package (construction sales tax rebate capped at $199,688), a job-based grant capped at $300,000 and a remediation grant capped at $395,000 — total estimated incentives about $3.2 million.
Sotelo told council the city’s analysis projects net benefits over 10 years, and staff noted the company had applied for a state Texas Enterprise Fund application that remained under review. Council members repeatedly cited the project’s quick payback estimate (about 3.3 years by staff calculations) and the potential for university partnerships with UNT and TWU.
Council members moved and seconded the ordinances to authorize the incentive agreement and the tax-abatement agreement. Both measures passed on voice votes, 7–0.
Next steps include completion of environmental remediation work and any conditional requirements in the incentive agreements; city staff will continue coordinating with the company and with state agency review tied to the Texas Enterprise Fund application.
