Denton EDP board recommends incentives for Novartis to redevelop 2101 Shady Oaks

The Economic Development Partnership Board voted to recommend that Denton City Council consider an incentive agreement for Novartis Gene Therapies Inc. to locate a radioligand therapy manufacturing facility at 2101 Shady Oaks. Britney Sontelo, the board-recognized presenter, said the company is seeking incentives including a 10-year real property tax abatement (up to $2,337,960), a sales-tax rebate on construction materials (about $199,688), a job-based grant (up to $300,000) and a remediation grant (up to $381,842).

Sontelo told the board the company estimates roughly $280,000,000 in total capital investment and expects to create 150–175 jobs with an average salary of about $124,000. "Total investment for the project is $280,000,000," Sontelo said. Staff reported a net benefit to the city (after incentives) and an evaluation matrix score of 91, which staff characterized as "excellent." The board moved, seconded and approved a recommendation to forward the incentive agreement to City Council for final action.

The staff presentation noted outstanding site issues that remain part of due diligence, including environmental remediation and delinquent taxes. Staff and company representatives said state incentives (including consideration under the Texas Enterprise Fund) and negotiated sale terms remain in process. The board's recommendation is advisory; the formal incentive agreement would require City Council approval and completion of the city's performance-based conditions before city funds would be paid.

Next steps: the board's record shows the item will advance to Denton City Council for consideration and any subsequent negotiations or conditions would be finalized during that process.