Tyson Foods

Denton County officials on Tuesday approved a request from Tyson Foods for thousands of dollars in financial incentives to build its warehouse facility in Denton.

Springdale, Arkansas-based Tyson Foods, a processor and seller of chicken, beef and pork, is building a $30.6 million, 350,000-square-foot automated and refrigerated warehouse along Western Boulevard in west Denton.

The county is giving the company a 25% tax abatement over a six-year term beginning in 2022. The county’s incentives are worth nearly $95,000.

Tyson will first have to spend about $18 million building out the warehouse and an additional $27.9 million on property within the warehouse, for an investment of about $45.9 million, before activating the county’s abatement.

The five Denton County commissioners approved the agreement in a unanimous vote during their weekly meeting Tuesday morning. The property is located within Commissioner Dianne Edmondson’s Precinct 4.

“It’s a really good investment,” Edmondson said, “which is why you have to look at these requests. We will definitely get a good return on our investment.”

The county projects it will collect about $283,766 over the six-year period, said Michael Talley, Denton County’s economic development director.

Tyson projects the warehouse will be staffed by about 100 full-time employees. They’ll earn an average of about $25 an hour, Tyson said in its abatement application. About 150 people will be needed for the warehouse’s construction, the application shows.

Tyson’s application to the county indicates the warehouse will rely heavily on automated logistics technology, such as robotics and automated storage and retrieval systems.

The Denton City Council agreed to an abatement with the company in early February. The city will provide a 25% abatement, worth about $269,000, over six years. Much of that deal will come through electricity discounts to the company. The company originally asked for $750,000 in incentives.

The warehouse will sit alongside other refrigerated warehouses in the Western Boulevard area, which already includes refrigerated facilities for Target, U.S. Cold Storage and WinCo. Tyson projects about 70 trucks will be in and out of the warehouse each day, its application shows.

DALTON LAFERNEY can be reached at 940-566-6882 and via Twitter at @daltonlaferney.

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