The Denison Development Alliance has approved a sales agreement with Reliable Redi Mix for the purchase of 14 acres of land in its Foundation Business Park. The agreement will allow the company to invest more than $3.7 million in the construction and development of a new concrete batch plant at the site.
Under the terms of the agreement, the DDA will sell the 14 acres of land for $200,000, with the majority of the cost coming in the form of a forgivable loan. During the terms of the agreement, the DDA will forgive the amount of sales tax received by the city from the development, up to $50,000 a year. However, DDA President Tony Kaai said, in total, the company could pay as little as $50,000 for the land.
“They are a local business that needed a location for their plant, and we have an industrial park that suited their needs,” Kaai said. “It’s a good fit for Denison because they will be another supplier in the area for concrete, and with the growth we are having in our region, their production will be needed. It will also create new jobs, new taxable investment and concrete sales are sales taxable, so that benefits our city.”
The agreement is contingent on the city approving a final site plan and other planning documents for the project.
In the approved agreement, Reliable Redi Mix plans to build a new four-silo site on the land for the mixing and distribution of concrete. The project will also include the purchase of eight new concrete trucks, and a loader to service the plant. The document also states the company plans to hire 13 employees with an annual payroll of $536,000.
As an additional part of the agreement, Redi Mix will provide concrete to the city of Denison and Denison Independent School District at a 10 percent discount as long as it operates within the city. If the mix plant ceases operations within the next five years, it will deed back the property to the DDA and the DDA will retain all payments it has received.
“COMPANY recognizes the growth occurring in the North Texas area and wants to be a quality provider of concrete to aid in the continued growth of the construction business,” the agreement says, referring to Reliable Redi Mix. “COMPANY wants the City of Denison and DDA to be direct benefactors of the sales tax generated from the sale of concrete.”
The proposed concrete plant was first discussed in late 2017 as the DDA was looking to fill the remaining land in its industrial park.
In December, representatives for the project went to the Denison Planning and Zoning Commission to have the land formally platted for the project. The city council then approved a conditional use permit for the site in February following concerns on the project’s impact to the nearby Denison High School.
The council initially tabled the request until a future meeting in order to address concerns. When the item was brought back before the council, members included a number of requirements and guidelines in the conditional use permit. The council required that all traffic must not travel to or come from the north on State Highway 91, effectively avoiding the area surrounding the school.
Additionally, the permit would be rescinded if the site received two or more citations within one year from the Texas Commission on Environmental Quality.