BY KATHY WILLIAMS
HERALD DEMOCRAT
Sherman Economic Development Corp. gave Sherman Panda Energy another year's option on 204 acres in Northpark III industrial park. SEDCO's Board also learned the city's and Grayson County's economic states are still sagging along with the rest of the country's.
SEDCO offered Panda the land, valued at $3,600 per acre in Northpark III, on the west side of FM 1417 just north of Blalock Industrial Park, plus $2 million. Panda estimates it will create 300-400 temporary jobs to build the plant and will require 25 full-time permanent workers. The plant will produce 500 megawatts of electricity. Feb. 23, Panda got its air permit to operate the plant from Texas Commission on Environmental Quality and is now pursuing long-term energy sales contracts and financing to build the gas-fired plant.
SEDCO Vice President Frank Gadek, in presenting the Economic Barometer, said the city of Sherman issued five building permits for new residential homes in February, the same as in February 2009. There were 24 other permits issued, compared with 33 in 2009. However, the value of those new homes was off by a factor of 35.9 percent. The value of "other permits was up nearly 164 percent. The city did not issue any permits for new multi-family, commercial or industrial building in February in either 2009 or 2010.
The unemployment picture also is dim, with the rate for Sherman rising to 8.8 in January, up from 8.3 in December. Sherman's rate was higher than that of Texas (8.6) but a little lower than Grayson County's as a whole (8.9.) SEDCO's February sales tax receipts were up by 6.97 percent, and the city of Sherman collected 0.29-percent more than in February 2009. Denison's sales tax was down by 5.66 percent for the month over 2009's figure.
During a closed, executive session, the Board considered the Panda matter as well as pending litigation against Air Safety Flight Academy. SEDCO, Denison Development Alliance and Pottsboro cooperated on incentives to draw Air Safety Flight Academy to the area. The Flight Academy closed suddenly several months ago. In closed session, the Board also discussed incentives for Project Frontier and an oil and gas lease with E&G Energy Inc.
SEDCO President John Boswell reported that the opening of State Highway 289 extension will help future development, particularly on the west side of North Texas Regional Airport. Boswell said that Gadek attended the "PLASTEC West" trade show in February along with Oncor and got 36 contacts with industries.
Boswell also applauded the city of Sherman's addition of the Blalock Retail Overlay Zone at the intersection of FM 1417 and U.S. Highway 75. He said almost all of the industries in Blalock Industrial Park were pleased and that GlobiTech had dropped its objection to the retail area when the city agreed to delay the effective date of the zone until October. He said SEDCO staff are all busy on marketing to help recruitment when the economy picks up.
"Although the economy is still sluggish, we have some things we believe will pan out," Boswell said.
Board Member Rad Richardson reported on the joint marketing committee through which his organization, DDA and Grayson County market North Texas Regional Airport and other common interests.
Richardson said the committee has two major projects it hopes to attract. One, Project Trident, is the least likely because it requires a 10,000-foot runway and NTRA's longest runway is 9,000 feet long. The Trident project is an aircraft maintenance modifications company that would bring approximately 200 jobs and $2 million in machinery plus $500,000 in inventory.
Project LT is seeking hangar space and is looking to purchase another company.
He said, Retz and Associates, (project manager at the airport) and the committee has "gone back with Becky Powell and will continue that authorization through October."
Retz attended the North Texas Council meeting in Feb. 18. Richardson said the joint committee is working on the two prospects and has three other leads.
The city of Sherman's chief financial officer, Robby Hefton reported that SEDCO's bank time deposits are doing better than the 0.2-to 0.3-percent rate of return with TexPool and the portfolio of investments gained 0.8-percent, outpacing benchmarks set by treasury notes. Hefton reviewed the statements of revenues and expenditures for January and December and reported everything seems to be in order. Some expenses and revenues are a little higher or lower than budgets for the year, but that's just the nature of billing and payment cycles.