Commissioners Court approves reinvestment zone, tax abatement

SMITH COUNTY — The Commissioners Court on Tuesday approved the creation of the Smith County Reinvestment Zone No. 1 for the area which includes a 412-acre property that will be developed as a new business park and adjacent properties. According to a news release, Tyler Economic Development Council President/CEO Scott Martinez requested that the reinvestment zone be created to encompass an area that includes the new business park planned by TEDC, just south of Interstate 20 and west of Highway 155. Martinez said creating a reinvestment zone would give TEDC a lot of latitude in what it can do with the 412 acres it has bought for an industrial park that will attract new businesses and hundreds of jobs to the community. “We are expecting a lot of growth in the next few years,” he said. “We are expecting lots of industry and lots of jobs being created there from private business, and that’s a good thing.”

In October, the Commissioners Court approved using up to $4.5 of its ARPA (American Rescue Plan Act) funding to build a new county road (CR 3344) going to the business park connecting Highway 155 and CR 336. At that time, Martinez said they already had an interested company wanting to be the park’s anchor tenant. The business will require 150 acres, could bring in more than $40 million in capital investment, and create more than 100 jobs, Martinez said.

On Tuesday, the Commissioners Court also approved a five-year tax abatement for Averitt Express to construct a new regional logistics hub near TEDC’s planned industrial park. Martinez said the company currently has a small facility off of Highway 155, but they want to add a 20,000-square-foot regional office facility — resulting in an estimated $10 million investment — next to it. The investment would add 25 new jobs over the next three years, with an average salary of $71,000, with benefits. Averitt Express currently has about 20 employees in Smith County, he added. “Averitt Express is a leading freight transportation and supply chain management provider with international reach. Based in Cookeville, Tennessee, our company plans to expand operations in Smith County to include the construction of a new, state-of-the-art service center. This investment will allow for a greater depth of services for customers and associates throughout the state, as well as the creation of additional jobs for the community. Averitt looks forward to expanding our presence in this region of Texas” said Barry Blakely, Averitt Express Executive Vice President and Chief Operating Officer. The project is expected to be completed by the first quarter of 2024.

The Smith County tax abatement agreement is for 80 percent for the first two years, 60 percent for the following two years, and 40 percent for the fifth year. TEDC estimates that Smith County would forego up to $107,000, at the current tax rate, and collect taxes up to $76,000 over the five-year abatement period.