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Denton approves incentives, tax abatement for Novartis Gene Therapies expansion
Summary
The Denton City Council approved economic incentives and a chapter-312 tax-abatement agreement for Novartis Gene Therapies to expand at 2101 Shady Oaks Drive; staff said the project could bring about $280 million in investment and 150–175 jobs, and council voted unanimously.
Denton City Council voted 7-0 to approve economic development incentives for Novartis Gene Therapies and a related tax-abatement ordinance for a proposed expansion at 2101 Shady Oaks Drive.
Economic development director Verity Sotelo told the council the site is a 50,000-square-foot facility on roughly 20 acres that the company plans to rehabilitate in three phases, beginning with hazardous-material removal and environmental clearance. "They estimate they will generate $280,000,000 in total capital investment," Sotelo said, and staff projected the expansion would create about 150 to 175 new jobs with an average salary of more than $124,000.
The staff-recommended incentive package includes a chapter 312 property-tax abatement at 50% for 10 years on new improvements (estimated at $2,300,000), a chapter 380 grant with a capped sales-tax rebate ($199,688), a job-based grant capped at $300,000, and a remediation grant capped at $395,000 — total estimated city incentives about $3,200,000. Sotelo said staff estimated net fiscal benefits to the city of about $4.8 million over 10 years and a payback period of approximately 3.3 years.
Councilmembers said they welcomed the project as a reuse of a long-dormant site and an opportunity for local student partnerships. The council approved the incentive agreement and later a tax-abatement ordinance, both by unanimous votes.
What happens next: staff and company representatives said they are awaiting final state-level review for a Texas Enterprise Fund application and will proceed with environmental remediation and phased improvements if the incentives and funds align.
