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SLDC approves 10-year, $1.3M performance agreement for Delivre Outsourcing and Solutions
Summary
The Sugar Land Development Corporation approved a 10-year, performance-based incentive of $1,300,000 and up to $140,085 in permit-fee reimbursements for Delivre Outsourcing and Solutions to expand a 60,000 sq. ft. FDA-registered 503B sterile pharmaceutical facility that staff says will create 55 jobs.
The Sugar Land Development Corporation voted to approve a 10-year performance agreement with Delivre Outsourcing and Solutions LLC that authorizes up to $1,300,000 in direct incentives and reimbursement of permit fees not to exceed $140,085.
Jennifer Alexander, business development manager, told the board the company plans a $11,850,000 capital investment to build a 60,000-square-foot Good Manufacturing Practice (GMP) pharmaceutical facility registered as a 503B outsourcing facility. Alexander said the expansion would create 55 new jobs with an average annual salary the staff cited as $61,240 and that the project’s anticipated completion timeline is 15–18 months plus FDA inspection and oversight periods.
Alexander described the incentive as performance-based: an initial payment of $300,000 would be released after the company documents the early spending threshold and creation of 16 jobs, with the remaining payments distributed over the 10-year term as performance obligations are met. Permit fees would be reimbursed upon receipt of a certificate of occupancy, Alexander said.
Dr. Ehab (identified in the meeting as CEO of Delivre) and company representatives addressed board members’ questions about why they chose Sugar Land, local hiring and training partnerships, and future expansion plans. The company representatives said they expect community benefits including local hiring and training collaboration with area colleges.
Board members asked staff whether the project generates sales tax on shipped medications; Alexander said the medications shipped would not generate sales tax, but added that new employees and the property-tax assessment on the new building would likely increase local tax receipts. Staff estimated annual property tax revenue from the stated investment at roughly $150,000.
Rob (board member) moved to approve the agreement; a board member seconded the motion and the chair announced the motion passed, announcing the result as "passes 7-0." The agreement includes standard clawback provisions that reduce incentive payments if performance obligations are not met; staff noted permit reimbursement is separate and would not be reduced by clawbacks applied to direct incentive payments.
Votes at a glance - Approval of minutes (June 2, 2026): motion carried by voice vote. - Delivre Outsourcing and Solutions performance agreement: motion passed, chair announced "passes 7-0."
The board did not take further action beyond approving the agreement at the July 7 meeting; the contract payment schedule and compliance monitoring will be handled by staff under the terms presented.
