Sherman has taken the first steps toward offering tax abatements to local industry. The City Council recently approved the creation of an industrial reinvestment zone for property used by SunnyD.

The move by the city comes as the beverage producer considers moving forward with a $30.06 million expansion of its facilities at 300 W. FM 1417 that would add two production lines to the facility.

“Sunny Delight has approached the city about a tax abatement project to add two additional manufacturing lines at their existing plant,” Sherman Finance Director Mary Lawrence said.

In order to offer abatements for the project, the city must first designate the property as an investment zone. Once established, the zone — the 13th within the city — would allow the city to move forward with the creation of abatement packages for the project.

In the case of SunnyD, the city will likely be offering two abatements — one for Sunny Delight Beverages Company for the equipment and a second for Harvest Hill Holdings, Inc., who owns the facility that SunnyD uses.

This is the second incentive that has been offered for the project by the city and its partners. The Sherman Economic Development Corp. approved a $900,000 incentive in June for the expansion of the facility.

Documents from the SEDCO incentive note that $11.93 million of the project represents packaging equipment additions to the plant. An additional $6.36 million represents mechanical and electrical equipment.

The new expansion will nearly double the taxable value of the plant for the city. The facility currently has a taxable value of about $33 million, but the expansion could add another $30 million to that value.

The expansion could also increase the workforce for SunnyD in Sherman, the facility currently maintains 114 employees, but the company hopes to expand this by 74 over the course of two years.

While no formal abatements have been approved, city officials expect to have formalized agreements on the Oct. 3 city council agenda.