Retail Center Set for Denison

It’s been official since January that CIGNA would build a new facility in Denison and consolidate its Texas-based service center operations.

Wednesday brought the project out of the planning stages and into reality as dirt was turned in the official groundbreaking ceremony and large construction equipment worked to move dirt and prepare the site for development.

CIGNA’s new campus will be just north of the FM 691 intersection with U.S. Highway 75 and is described by company officials as a 140,000-square-foot building which should be ready to go in May of 2007.

One of those on hand for the celebration was local business owner, Tom Johnson, who donated the 15 acres to the city of Denison for the CIGNA project. “I can’t say enough good things about Denison,” Johnson said in an interview after the groundbreaking event. “I really believe in this location. I call it Gateway because it will be the new southern gateway into the city.”

Johnson, who brought KTEN-TV to Denison in 1988 and sold it in 1998, said he considers his donation an investment in Denison’s future. “I think this is a great project for Denison,” he said.

Johnson’s donation to the city made a difference on the incentive package Denison Development Alliance was able to offer the insurance claim processing company. CIGNA was already looking for a new location to move from Sherman, where it has a long history. Company officials said the search went through a wide range of locations in North Texas and Southern Oklahoma before settling on the Denison site.

To entice CIGNA to move within Grayson County, DDA offered CIGNA an incentive package that includes $3,000 per job for up to 400 new jobs created in Denison, above its current level of 800 employees in Sherman. DDA will offer other sales-tax funded incentives of up to $900,000 for infrastructure improvements. CIGNA must build Pool Road to city of Denison specifications to receive $100,000 of that amount.

DDA has also guaranteed the infrastructure will be at CIGNA property by Jan. 15. CIGNA will also receive a five-year, 100-percent ad valorem tax abatement for both the building and the personal property.

Jeff Novak, CIGNA’s senior vice president for corporate services, told Wednesday’s crowd he credits city leadership like that found in the DDA for getting the corporation to the point of breaking ground. “Whatever problem came up, they made it go away,” he said. “This is an exciting venture for CIGNA. I can’t wait to see the final site.”

General Manager of the South Operation David Toomey told the crowd Denison was chosen for CIGNA to stay in the Grayson County area because of the people. “The life blood of our company is the employees,” Toomey added.

Denison Mayor Robert Brady said the CIGNA project has the cooperation of both Sherman and Denison. He said both cities recognized the most important thing was to keep CIGNA in the area.

In an interview later in the day, Brady said he hopes to see the CIGNA project be the key to open up the northeast and northwest corners of that intersection to begin the development that will attract retail concerns. That will help the city’s tax base.

Throughout all the accolades that were shared in the groundbreaking ceremony, Scott Smathers, vice president of DDA, seemed to be the man of the hour. While Denison city personnel were praised by CIGNA administration for their willingness to help through all odds, Smathers was the man they said persevered to work out all the obstacles.

Subash Gaitonde of CMC, the developers on the project, went so far as to say Smathers “can walk on water.” While that got a laugh from the gathered crowd, his meaning of respect for Smathers’ work was conveyed. Smathers was credited by several speakers of the day for his hard work at overcoming obstacles as they arose.

Smathers said later, the project has been challenging because there have been so many entities to bring together. “What makes it work well is the people working together,” Smathers said. “City people and others willing to do whatever necessary to make the project work.” Smathers deflected some of the lavish praise he received to people like Faye Brockett, director of planning and zoning, and David Howerton, director of public works. He also said it wouldn’t have come together without the hard work of the DDA Board of Directors headed by Jerdy Gary and Tony Kaai, DDA president. He said it took a whole team to get the job done.

The Denison Development Alliance provides economic support and business development for the City of Denison, Texas.