Denton economic development board backs incentives for Novartis gene‑therapy facility

The Economic Development Partnership Board voted on Nov. 25, 2025 to recommend that Denton City Council consider an incentive agreement for Novartis Gene Therapies Inc. to locate a radioligand therapy manufacturing operation at 2101 Shady Oaks in Denton.

Board members voted by voice after a staff presentation on the project and a question-and-answer period. The board’s recommendation forwards a package of local incentives — including a 50% real property tax abatement for 10 years (capped at about $2.3 million), a 50% sales tax rebate on construction materials (about $199,688), a job‑based grant (cap $300,000) and a remediation grant for $381,842 — to city council for final consideration.

Staff presenter Britney Sontelo, representing economic‑development staff, said Novartis plans a major investment and multi‑phase site remediation. “The total investment for the project is $280,000,000,” Sontelo said, with about $71,000,000 in site improvements and roughly $200,000,000 in business personal property. Staff estimated the company would create 150–175 new jobs and cited an average salary for about 40 technical roles of $124,000.

Company representatives described the medicines to be made at the site and why local production matters. Jennifer Duarte, identified as a strategic program lead with Avaris Oncology, said radioligand therapies are targeted, patient‑specific medicines with short shelf lives: “Pluvicto has a shelf life of only 120 hours,” and Lutathera about 72 hours, she said, noting that shorter delivery distances improve reliability.

Kelly Cloud of the Dallas Regional Chamber, vice president for life‑sciences economic development, said the project could act as a regional catalyst for high‑wage jobs and research partnerships with local universities including UNT and TWU. “This is a catalyst project, not only for the city of Denton, for the region, for the state,” Cloud said.

Board members pressed staff and company representatives on site challenges, remediation costs and tax liens. Staff reported an estimated remaining remediation cost of $4,000,000 and pending litigation between the Department of State Health Services and Kensington Title over a radioactive‑materials fine; delinquent taxes on the property were reported as $1,830,000 across taxing entities. One board member described the remediation grant amount as “pretty minimal” compared with the estimated cleanup cost. In response, staff and counsel said the proposed local incentives are performance‑based: for the city’s remediation grant to be paid, the property must be purchased, remediated and the city’s portion of back taxes collected.

Consultants with Ryan (site‑selection advisers) said the proposed local package is competitive despite the site’s challenges and noted the company is also pursuing state incentives, including the Texas Enterprise Fund and a state tax exemption for pharmaceutical equipment that staff estimated could yield an 85% BPP (business personal property) exemption over 10 years (staff estimated that exemption’s value at about $5.9 million).

At the conclusion of discussion, board member Rick Wolfen moved to recommend approval to city council; Vicki Byrd seconded. The chair called for the voice vote; the ayes were recorded and no members voiced opposition. The board directed staff to transmit the recommendation to Denton City Council for consideration.

Next steps: the board’s recommendation will go to city council; staff said they are still negotiating final incentive performance metrics with the company and working with other taxing entities on tax collection and remediation structuring. The board’s next EDP meeting is scheduled for Dec. 10, 2025, at 11 a.m.