SHERMAN, TX - Sherman may be on the brink of its next multi-billion dollar production development deal.
The Sherman Independent School District Board of Trustees voted unanimously to accept an application from Globitech that would limit its property taxes related to a new $5 billion production facility investment.
The application comes about seven months after SISD accepted a similar agreement with Texas Instruments for value limitations related to its proposed $30 billion facility. TI announced in November that Sherman had been selected for the facility after SISD and other partners approved a series of incentives.
"What you have, trustees, before you today is a number of items to consider a 313 application from Globitech for a project broken into four phases," SISD Superintendent David Hicks said Wednesday. "What is before you today is to accept the application from the company."
The agreement that was proposed by Globitech falls under tax code Chapter 313, which allows districts to put a 10-year cap of property tax revenues for major capital investment for prospective businesses that are looking to locate or expand within the community. These agreements generally are valued at $1 billion or more.
The application, which was obtained Wednesday by the Herald Democrat, showed the scope of the project, which will be pursued by Globitech through four phases with construction expected to run through 2040. If ultimately approved, the agreement would limit the valuation of each of the four phases of the project at $80 million for 10 years.
"Applicant, GlobiTech Incorporated, proposes to invest in a semiconductor wafer fabrication facility which would include multiple industrial buildings, tools, machinery and equipment used to fabricate 300-millimeter silicon wafers, an integral component of the semiconductor supply chain," the company said in the application. "One contemplated site for the proposed project is in Sherman, Grayson County, within the boundaries of Sherman Independent School District."
The 300-millimeter wafers are similar to the products that will be made at TI's facility and are used in the production of semiconductors and other electronics. The project will upgrade the site to allow for the production of these wafers and a transition away 100-millimeter wafers, which have become outdated.
"The proposed project site in Sherman ISD must be competitive with alternative proposed site locations across the globe in order for applicant to select the location for capital investment and commitment to jobs and long-tern operations," the company said in the application."
A third site in Ohio is being supported by Intel, who plan to develop an eight-site production hub in the state.
The project would take place on nearly 120 acres of land owned by the company. The project would include two 1.64-million-square-foot production buildings with each phase taking up half of a facility. Each phase comes with an expected investment of $1.25 billion and the creation of 375 jobs.
Each phase would include the creation of 25 qualifying jobs under the Chapter 313 guidelines with a minimum estimated salary of about $81,000. The remaining positions would be based off of local average wages for the industry.
The first phase of the project would start construction in 2026 with operations scheduled to begin at the facility in 2029. Construction on phases two, three and four would begin in 2028 with operations expected to begin in 2033, 2038 and 2039, respectively.
Hicks said the next step in the process will be to submit the application to the state comptroller, who would then decide if it can be approved. This process could take about 150 days, but Hicks said the district will work to expedite this.
Representatives for Globitech declined to comment on the project, but said the Sherman facility is preparing a proposal for the group company that should be ready by the end of the month.
Sherman city officials declined to comment on the project, citing an ongoing non-disclosure agreement. However, they did confirm that officials have been in talks with the manufacturer.
County Judge Bill Magers said county officials have not had formal conversations with Globitech regarding specific abatements.
Michael Hutchins | Herald Democrat | FULL STORY HERE
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