FINANCIAL_SERVICESRECOMMENDED

City of Denton Economic Development Partnership Board Meeting Agenda April 2026

Denton proposes incentive package for KrateoSky facility

Not to exceed $870,064 (sales tax rebate up to $94,500; job-based grant up to $227,000; ad valorem rebate up to $498,564; headquarters grant up to $50,000)Sanctuary Mud 2 Of Denton CountyKRATEOSKYApril 15, 2026

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Description

The City of Denton Economic Development staff proposed a Chapter 380 incentive agreement with KrateoSky worth up to $870,064 to support a new autonomous aerial robotics manufacturing facility and future headquarters. The package includes sales tax rebates on construction materials, an eight-year ad valorem rebate on improvements and equipment, a jobs-based grant, and a headquarters grant tied to a $23.5 million investment and 258 new jobs.

Contract Details

Contract Amount

Not to exceed $870,064 (sales tax rebate up to $94,500; job-based grant up to $227,000; ad valorem rebate up to $498,564; headquarters grant up to $50,000)

Vendor

KRATEOSKY

Agency

Sanctuary Mud 2 Of Denton County, TX

Contract Type

FINANCIAL_SERVICES

Document Date

April 15, 2026

Contract Term

10-year economic impact horizon; ad valorem rebate for 8 years

Renewal Info

Performance-based ad valorem rebate at 65% for eight years on new real property improvements and business personal property; sales tax rebate on construction materials limited to two years and contingent on a Texas Direct Pay Permit; headquarters grant allows two years for the company to select a headquarters site. No automatic renewals beyond these terms are described.