Eight months after its last deal with GlobiTech, the Sherman Economic Development Corp. approved two separate deals with the local silicon-epitaxy manufacturer on Tuesday.
The SEDCO board of directors approved a land purchase contract for GlobiTech to purchase 2.2 acres for $10,000 and a separate performance agreement with the company that will see GlobiTech investing $650,000 in switching equipment and receiving an incentive of $32,500.
SEDCO Executive Vice President Frank Gadek explained the two deals were separate but are related for GlobiTech, as the newly purchased land, which is adjacent to the southwest corner of the company’s current property, will be home to its new switching equipment.
“It’s just dirt that will never be used for anything else — why it was never included with GlobiTech (property) to begin with I don’t know, but they’re purchasing that from SEDCO,” Gadek said. “They’re going to use the site to prepare for a future project that they are not going to do, but may be doing with another company. I can’t give you the details on that right now. So that’s where the performance agreement comes in. I don’t know if it (the switching equipment) will just fit on the two acres they’re buying from us or whether it would be additional land from their existing site.”
Gadek said the incentive agreement is only scheduled to last through the end of the year, so GlobiTech could receive the $32,500 incentive payment in the next seven months.
“It’s real fast and a relatively small deal (for SEDCO), but $650,000 is not a small deal (for GlobiTech),” Gadek said. “The two acres that GlobiTech’s buying from us, that’s going to go on the (city) tax roll, so that’s positive as well.”
SEDCO’s board approved a $487,500 incentive for the local manufacturer last September after GlobiTech said it would be adding 12 new jobs over the following two years as part of a nearly $10 million capital investment in its Sherman plant.
The SEDCO executive vice president said he doesn’t have all the details on the future project that will be constructed on GlobiTech’s land.
“I don’t know if we’ll even get involved with that from an incentive standpoint,” Gadek said. “It’s entirely possible that we will not. So there’ll be more discussion about that down the road.”
Gadek said because of the size and location of the land sold to GlobiTech, there was unlikely to be anything SEDCO could do with it.
“You’ve got to have a minimum of five acres at (the) Blalock (Industrial Park) to do a traditional Type A project on it,” Gadek said of something that would qualify for a SEDCO incentive. “It works out for us and it works out for them as well.”
The agreement comes just over a week after the team from GlobiTech won the first Sherman Industry Showdown Competition at SEDCO’s Industry Appreciation Picnic. Representatives from 12 Sherman industries gathered at Pecan Grove Park on May 5 for the event and GlobiTech’s squad beat out teams from seven other local industries in a three-part competition that included a five-legged race, limbo contest and tug-o-war.