Conroe City Council approved economic development incentive agreements with Sabre Industries and Texas Tissue Converting at a special council meeting on Nov. 25.
“The City of Conroe has an incentive policy that we use from our 4B Sales Tax for our economic developments, that we basically look at the overall net benefit of a project locating to the community, and we can offer an incentive that’s no more than 30 percent of that,” said Conroe Economic Development Council Executive Director Danielle Scheiner. It’s paid out performance based, so it’s after the fact. Once they have created the investment and hired the people they said they would hire, so to speak, then they’ll get reimbursed for that basically, out of that fund.”
Scheiner said the contracts are for seven years, and there were a couple Council approved at their Nov. 25 meeting, that will be paid out over seven years.
One of those incentive agreements approved was with Sabre Industries. Scheiner said they actually purchased the Falcon Steel property that was in Conroe Park North.
“The company was struggling, and so they (Sabre) bought them out, and they do the same type of business. They basically manufacture and sell towers for the communications and electric industry,” said Scheiner. They do some galvanizing and some other things like that at that facility.”
Scheiner said they are revamping and putting a pretty significant capital investment in to revamp as well as add some welding stations.
“They will be hiring quite a few more employees than the previous company had, and they are purchasing another 15 acres adjacent to their building so they can build more improvements for laydown and if they need more storage,” said Scheiner.
Sabre’s plan is to have 165 employees at the new facility, and there are less than 100 currently, according to Scheiner.
“Basically it’s kind of an expansion project, so they’re retaining those jobs and they’re adding new ones. The previous company was struggling, so it was important to get someone in who could take over and continue the work.” They’ve got $3.1 million or so in building and improvements, and about $4.2 million in machinery and equipment that’s going to be going in as a result of this expansion, plus the additional land they’re purchasing, which is over $1 million,” said Scheiner.
Scheiner said Sabre is under contract on the land, so they should be closing soon on that, and they’re gradually building that machinery and equipment into the space. Scheiner anticipates they’ll be fully operational by early next year.
The other economic development incentive agreement Council approved is with Texas Tissue Converting.
“That’s a 400,00 square foot tissue manufacturing facility. They do paper towel, toilet paper, that sort of thing,” said Scheiner. They’ve got contracts with large clients. They serve HEB, Aldi, those kind of folks. They’ll be manufacturing that product here once they have their building complete.”
Scheiner said Texas Tissue Converting is purchasing 30 acres of land in Conroe Park North to construct the facility, initially.
“This is phase one of their project. They hope to continue to add on to that piece, but this is just for the first phase,” said Scheiner. “This project will actually be located on 30 acres in the new section that we just purchased in 2018, the 610-acre addition. Their capital investment is closer to $80 million, between the land, the building and improvements, the heavy machinery and equipment, the furniture and fixtures and the regular machinery and equipment, so it’s a pretty large project.”
Scheiner said Texas Tissue Converting will have 110 employees through the seven-year incentive agreement.
“This is just like the other (company). It will be paid out over a seven-year period as they perform,” said Scheiner.