Following an executive session Tuesday morning, the SEDCO board of directors voted unanimously to agree to contribute up to $750,000 to extend Fallon Drive to the south to Dripping Springs Road. The organization announced that it will be partnering with the city for the upcoming expansion of Fallon Drive amid growing industrial use in the Midway Industrial Park.

The roadway project stems from the expansion of Modular Power Solutions, which is outgrowing its current facilities on Fallon Drive and is currently constructing a new 170,000 square-foot building at the end of Fallon. The intent is to provide adequate access to the site.

“It is just an estimate on what it will cost, but if it comes in higher than that obviously the city would pick up the remainder,” SEDCO President Kent Sharp said.

The extension will also allow MPS to consolidate its resources from several facilities into a single location, Douglass said. This will allow the newly emptied locations to be added back onto the market and provide space for new or smaller businesses.

“What we have on Fallon Drive is the opportunity to support a significant employer on that side of town,” SEDCO Board Chair Brad Douglass said Tuesday.

Douglass said many of the other businesses along Fallon outside of MPS will also make use of the new extension as a eastern ingress and egress to the industrial park. This is a part of larger connectivity plans in this part of the city, but currently this is the only project that SEDCO is involved with, Douglass added.

While this isn’t the first public works project that SEDCO has assisted with, Douglass said there are certain guidelines and criteria that it must follow in order to contribute. As an example, the project must primarily be in support of local industry or in a heavily industrial district.

This is only one of several related projects that the city has pursued in recent weeks related to the extension. In September, the city awarded a $741,000 contract with Vessels Construction to extend water and sewer services along the roadway extension.

“This projects accomplishes a number of goals for the City of Sherman – namely, eliminating the need for a sewer lift station, extending a major thoroughfare, and providing connectivity for a fantastic new employer,” Sherman Community and Support Services Manager Nate Strauch said. “SEDCO’s financial participation will allow the City to focus its financial resources elsewhere while ensuring this project gets completed in a timely manner.”

In August, the city council authorized the city manager to “take all steps necessary” to acquire land for the extension project following stalled negotiations on the final piece of property needed for the project. However, Strauch said the situation has since been resolved.