The Sherman Economic Development Corp. and Midway Warehouses LLC broke ground Wednesday afternoon on a planned 60,000-square-foot commercial warehouse that will be available for development in Sherman’s Midway Industrial Park, which is east of Midway Mall on Fallon Drive.

The Sherman Economic Development Corp. and Midway Warehouses LLC broke ground Wednesday afternoon on a planned 60,000-square-foot commercial warehouse that will be available for development in Sherman’s Midway Industrial Park, which is east of Midway Mall on Fallon Drive.


SEDCO board Chairman Willie Steele said Midway Warehouses had the idea of partnering with SEDCO to build the spec building ideal for manufacturing as a response to the continued commercial growth in the Texoma region. SEDCO President John Plotnik said the building will provide new opportunities to recruit companies who have an immediate need for manufacturing, distribution or flex space.


"Basically, the way this is going to work is SEDCO is going to lease any unoccupied space for the period of five years," Steele said during Wednesday’s groundbreaking. "Obviously, our hope is that we don’t have any unoccupied space, so SEDCO will never have to be involved."


The SEDCO incentive agreement, which was approved in August, will pay Midway Warehouses $500 per month for 60 months once the building is completed. When the building finds a tenant, Midway Warehouses will begin the process of reimbursing SEDCO at a rate of $2.20 per square foot of leased space.


"So really, it’s a win-win for SEDCO and for Midway Warehouses," Steele said. "We hope this plan works and we can continue to do this, not only with these guys, but maybe some other investors using this same model as we go forward and continue to create some space."


The new building will have 30-foot-high eve ceilings to allow for multiple uses and the developer is open to subdividing the building to allow for office space or additional tenants if the entire space is not used.


"When you live in a city that’s been around for 170 years, it’s not very often you get to celebrate a first," Sherman Mayor David Plyler said. "That’s why it’s especially significant to be standing here today to break ground on what we believe to be Grayson County’s first ever spec industrial building built under a public-private partnership. The fact that we’re here celebrating this project is a testament to the tremendous economic growth we’ve seen in Sherman over the last several years."


Midway Warehouses operations manager Joe Passanisi said his company sees this building as a steppingstone to bring other people to the community.


"With the several hundred thousand square feet that are available in all the different buildings here in Midway Park, we’re almost at complete capacity," Passanisi said. "There’s no empty space anywhere in the park, with the exception of one building that came online this last week. We really believe with all the leads and all the interest we’re getting, it’s not going to be long until we’re talking about the second (building) and third one (building)."