Sherman will repay Modular Power Solutions for completing sewer system improvements needed for the company’s new facility on Fallon Drive. City Council formally approved an agreement with MPS Monday night that will allow the city to repay the company an estimated $15,000 for a sewer line extension to its new 11-acre facility in the Midway Industrial Park.

The agreement is the latest in a series of moves by the city in support of the expansion of MPS facilities in Sherman which include water and sewer system expansions and improvements. Sherman Community and Support Services Manager Nate Strauch said the agreement will allow the developer to move forward ahead of the city’s improvements.

“Basically, they need to get the sewer line in so that they can get their driveway in,” Strauch said. “This is before we were ready to go in and do the bulk of the work.”

The agreement will leave in place a $6,346 testing and inspection fee for the public utility, Sherman Engineering Director Clint Philpott said.

Earlier this year, the company, which specializes in pre-fabricated modular buildings, announced plans to build a second facility in Sherman near its existing site. The facility, located at the current end of Fallon Drive, is expected to include nearly 170,000 square-feet of space.

The city and the Sherman Economic Development Corp. have supported the expansion of the local business through infrastructure improvements that will be needed for the significantly larger site.

In early October, the SEDCO board approved an agreement in which the development corp. would contribute up to $750,000 toward extending Fallon Drive. The project will see the roadway expanded by about 500 feet to connect with Dripping Springs to the south. This will provide additional access to the site, which otherwise would only be accessibly through Fallon Drive itself.

The city separately awarded a $741,000 contract to Vessels Construction for the extension of water and sewer services alongside the roadway expansion.

Despite construction delays earlier this year, Philpott said MPS planned to have the new facility partially operational by mid-December, making the driveway a timely need for the company. Officials with MPS previously said the construction project could be expedited in part by internalizing part of the construction utilizing the company’s own modular assets.