The Economic Development Division promotes growth in Denton through business expansion recruitment and retention, small business/entrepreneur support, strategic redevelopment, and international business and sister cities programs. The division works to build the tax base, generate increased sales tax revenue, and increase employment opportunities.
Since its inception in 1999, Denton has invested $13.6 million in tax-related incentives, and in return has benefited from a $40.7 million net increase in property and sales tax revenues and the creation of more than 6,100 jobs. The return on investment for all of the incentives awarded is 300%. The division is the liaison to the Economic Development Partnership Board and two Tax Increment Reinvestment Zone Boards. Additionally, the division manages economic development programs specific to downtown Denton, the Co-Denton/technology initiative, and S.H.O.P. Denton.
The Denton Economic Development Partnership promotes growth by encouraging targeted development and redevelopment. Economic development incentives are negotiated with new and expanding businesses on a case-by-case basis subject to the qualifications, conditions, and requirements of the City of Denton Tax Abatement and Incentive Policy and the approval of the Denton City Council. Qualifying criteria:
- New or expanding businesses
- Minimum capital investment of $5 million
The history and philosophy of the firm, project specifications, and the potential impact on the community are factors that are considered during the application approval process.
Powering Growth: Denton Municipal Electric Economic Growth Rider
Denton’s electric utility service provider is Denton Municipal Electric (DME). New and expanding industrial and commercial service customers may receive a reduction from DME in their demand billing. Qualifying criteria:
- New and expanding industrial and commercial service customers
- Customers whose electric service represents demand not previously served by the City at any location in the City’s service area in the last 12 months
- Metered demand is in excess of 1,000 kVa per month. The monthly demand billing will be adjusted in accordance with the system demand.
Triple Freeport Tax Exemption
The City, Denton County and Denton Independent School District passed the Freeport Amendment, which exempts certain business personal property from ad valorem taxes. Goods, wares, merchandise, other tangible personal property, ores (other than oil, natural gas and other petroleum products) are exempt from ad valorem taxation if the property is (1) used for assembling, storing, manufacturing, processing, or fabricating and (2) is shipped outside the state no longer than 175 days after it is acquired.
Industrial Revenue Bonds
The City has established a nonprofit industrial development corporation authorized to issue tax-exempt or taxable revenue bonds. Eligible projects must promote the development or expansion of manufacturing facilities in Denton. Bond proceeds may be used for land, depreciable property, inventory, raw materials, finance charges, and research and development costs.