As Denison’s Main Street Lumber moves forward with its $400,000 expansion, it will receive a little help from the Denison Development Alliance.
The DDA board of directors voted unanimously Thursday to approve offering the lumber company a nearly $10,000 incentive for consulting work on the new 10,000-square-foot expansion of its door unit manufacturing facility. Through this grant, Main Street Lumber will be able to bring in consultants with the Texas Manufacturing Assistance Center to help increase efficiency and productivity, while setting up and designing the new space.
“They work with organizations, both large and small, to maximize plant production efficiency,” DDA President Tony Kaai said of TMAC.
Kaai said the organization provides services at a rate that is often cost effective for smaller businesses and has worked with the DDA in the past.
Earlier this spring, the city of Denison approved a special exception for Main Street Lumber that would allow it to expand its current 10,000-square-foot door manufacturing facilities, effectively doubling the production space. Robert Pool, co-owner of Main Street Lumber, said the change comes as the company has seen significant demand from residential development in recent years.
“We’ve had great growth in recent years,” Pool said. “We weathered the recession and came out stronger on the other side. Right now, we are just booming.”
Pool attributed the demand for doors to residential growth throughout the region, specifically in areas closer to the Dallas-Fort Worth Metroplex.
“The saying is that if you are in the rest of the country, you want to be in Texas,” Pool said. “If you are in Texas, you want to be in North Texas.”
Pool said he and his brother, who co-own the business, started talks about the expansion about two years ago. The expansion was needed due to the demand in door and mill products.
“Basically, if you were to come in right now, we would be working on top of each other,” he said.
Currently, the project is still in the early stages with work happening on the foundation slab, he said.
In anticipation of the expansion, Pool said he has recently hired three additional workers, bringing Main Street Lumber to nine employees in the door unit division. This will allow the new portion of the facility to go into production quickly. Once production is in full scale, Pool said he does plan to hire additional employees, but said he was unsure of how many at this time.
Pool added that the consulting agreement with TMAC would affect both the new construction, and the current facility, which will be reformatted and designed once the expansion is put into place.
Kaai said this is the second time the DDA has assisted the lumber company with incentives. In 2004, DDA approved a $14,000 incentive related to the construction of the current door unit facility. In addition to the DDA, the project also received a five-year, declining tax abatement from the city itself.
While a lot of attention is placed on the DDA’s efforts to recruit new businesses to the area, Kaai said it is equally important for the organization to support the existing businesses in the area. It is these businesses that make up roughly 80 percent of job growth in the area, he said.
“They are an existing industry who has been a great community partner,” Kaai said. “It is our job to help them keep growing.”