Small Cities, Big Business

Sherman-Denison’s work force, abundant utilities attract industry giants.

by Tracey Lamphere

Editor’s Note: The following article appeared in the January/February 2009 issue of Texas Rising.

Household names such as Tyson Fresh Meats, Folgers and Sunny Delight are staples in Sherman-Denison’s economy.

Boasting aggressive tax incentives, a well-educated work force and an abundance of utilities, these relatively small cities – located just north of Dallas-Fort Worth and with a combined population of about 60,000 – continue to be a choice location for industry giants.

While 2008’s economic climate may have been tough for much of the nation, it brought 466 full-time jobs and $337 million in new projects to Sherman.

“This commitment is the largest expansion of new capital improvements in Sherman’s history,” says John Boswell, Sherman Economic Development Corp. (SEDCO) president. “The expanded tax base will allow all taxing entities to continue to provide the types of government services that the citizens in our area have come to expect without raising tax rates.”

Dallas-based Panda Energy selected Sherman as a site for its 500-megawatt power plant, which is expected to bring more than $248 million into the economy during the next decade. Another company, Capio Partners LLC, has said it will bring 168 jobs to its new Sherman call center. SEDCO officials offered Capio $336,000 in incentives during the next three years, provided the company meets job creation and wage requirements.

Sherman’s economic development officials also negotiated incentives with four existing companies that created 298 full-time jobs and $37 million in new capital investment to the property tax base.

In addition to incentives, Sherman officials tout another advantage.

“We have an abundance of surface water here,” says Robby Hefton, Sherman’s assistant city manager.

As competition increases for recruiting businesses, providing a plentiful supply of water and electricity gives Sherman an edge, Hefton says.

The Denison City Council and Denison Development Alliance, meanwhile, created a public-private partnership with Second Century Investments and Gateway Hospitality Group to build a 150-room hotel and 17,500-square-foot conference center. The hotel and conference center, which will receive about $2.73 million in property tax abatements and hotel tax rebates, are expected to create 50 new jobs and boost the city’s growing tourism industry. Other projects on the horizon include the new Texoma Medical Center, which will create 4,000-5,000 jobs when it opens in 2010.

The key to Sherman’s transformation from college town to a center of industry began decades ago, when city leaders made the deliberate decision to grow business. Home to five colleges, the city already had an educated work force, which helped it attract Johnson & Johnson in 1961. For more than 40 years, the company provided an industry anchor for the city to build on. Five years after Johnson & Johnson arrived, Texas Instruments established operations there and still operates today with 750 employees.

SEDCO leaders believe education is the foundation for economic growth. In 2003, they approved an agreement with Grayson County College for the development of the Center for Workplace Learning (CWL). The CWL opened in 2006, in time to train 1,100 new Tyson employees.

South Dakota-based Tyson Fresh Meats, a subsidiary of Tyson Foods Inc., began operations in Sherman in 2006. The company employs about 1,200 people and spent $100 million to renovate the former Oscar Mayer facility, which closed in 1998.

Tyson officials say the state’s strong business climate put Texas in the running for its largest production plant specializing in prepackaged meats. The $7 million from the Texas Enterprise Fund and $3 million in support from SEDCO clinched the deal. TR