Denton Seeks $280M Investment From Novartis To Grow Life Sciences
A Swiss pharmaceutical company has zeroed in on an empty facility in Denton, which it wants to turn into its latest U.S. manufacturing facility.
The Denton City Council approved a $3.2M incentive package this week to entice Novartis to invest $280M in the 51K SF facility at 2101 Shady Oak Drive. Denton Economic Development Director Brittany Sotelo said the location is the preferred choice for Novartis’ planned Texas facility but noted the company has backup options in other cities and states.
Denton officials have explored recruiting life sciences companies but determined the city was years behind the sector's development in other North Texas municipalities, Sotelo said. However, Novartis' decision to choose Denton could serve as a catalyst for further expansion.
“This is going to generate additional opportunities for the city of Denton,” Sotelo said to the council.
Novartis intends to add $200M worth of equipment, create at least 150 jobs and spend $71M on three phases of improvements to the facility, which has been empty since 2009. The company plans to manufacture cancer and tumor treatments at the three-building factory.
The 20-acre site’s previous tenant was U.S. Radiopharmaceuticals. The property is currently owned by Kensington Title-Nevada LLC.
The incentive package offered to Novartis includes a 50% tax abatement for 10 years on new improvements and a Chapter 380 agreement that would provide grants for job creation, remediation and a sales tax rebate on construction materials.
Novartis has also applied for state incentives such as a grant from the Texas Enterprise Fund that Sotelo said is known as a deal-closer for projects competing with out-of-state sites.
The project could generate $4.8M in revenue for Denton over 10 years, city officials estimated.
Novartis stated in its April announcement that it intends to open a radioligand therapy manufacturing facility in the state. Company officials reached by Bisnow declined to comment on the company’s plans in Texas.
The Texas location would be one of seven new facilities Novartis announced it would open as part of a $23B investment to boost its U.S. research and manufacturing presence.
North Texas trails life sciences heavy-hitters like Boston and San Francisco, but its 4M SF of facilities offers plenty of space for startups to scale and partner up.
Novartis isn’t the only life sciences company aiming to grow in the region, as Abbott Laboratories announced a $500M expansion of its manufacturing and research and development facilities in Irving, as well as the Chicago area, in April.
Denton’s population and economy are expected to grow in the years to come. A 3,200-acre master-planned community from Ross Perot Jr.'s Hillwood could add more than 20,000 residents to the city and be valued at $10B upon completion.
