Retail Center Set for Denison

'Headin' north' -- Insurance giant CIGNA lands in Denison
By Dwayne Wilder
Jan 30, 2006

The rumors are true.

Denison city leaders, county officials and state legislators joined with leaders of the CIGNA Insurance Company Friday to announce that the insurance giant is moving its Sherman claims processing center to Denison in 2007.

"We are excited that CIGNA continues to grow and we want to ensure that our members continue to receive outstanding customer service," said Bob McVey, senior vice president for the Sherman Service Center. "Additional space and a consolidated facility will enable us to enhance technology and expand infrastructure to support the added service needs of our company."

CIGNA will consolidate its Texas-based service center operations -currently in Sherman - and will be building a 140,000 square foot service center in Denison. The move to Denison includes a new office building, which is scheduled to open May 2007, and will be custom built to meet CIGNA's service needs by CMC Commercial Realty, of Dallas.

The nearly 1,000 employees of the local service center are spread among two locations in Sherman; at the original site on Taylor Street and a newer location in the original K-Mart building on Texoma Parkway. CIGNA also operates a training site in west Sherman.

"We appreciate the opportunity to stay in Sherman/Denison," said McVey. "We're absolutely ecstatic to be staying in Grayson County; in the communities we live." Although the company is leaving its Sherman locations, McVey - who has been the local regional officer for six months - noted CIGNA was "thrilled to be part of the Denison business community.

CIGNA plans to build the two-story, 140,000 square foot office space, which will cost about $15 million to build, at the corner of US 75 and FM 691; just north of where the Sherman and Denison city limits meet. The 15 acre site is between FM 691 and Spur 503 and bounded by US 75 and Pool Road. The selection of Denison involved a wide range of locations in north Texas and southern Oklahoma, according to CIGNA officials. "We worked with county officials and leaders in Sherman and Denison to identify a location that would help us to retain and attract employees," said Jeff Novak, senior vice president of corporate services for CIGNA. "We are pleased that we have a solution that works for CIGNA and our employees in the area."

According to Novak, the company began looking for solutions in 2004 and decided what it wanted to do in February 2005. Once the decision to consolidate operations was made, CIGNA began looking for possible locations. Officials began looking from Allen, Texas to cities in southern Oklahoma but ultimately decided that Sherman/Denison was the place to be, Novak added.

"The Denison site was best suited for our needs," he said. "And it will be an eye-catching site for Denison as well; on the hill as you come into town."

Denison Mayor Bill Lindsay acted as a master of ceremonies for the announcement and was pleased with what had happened for the area job market and development.

"It's a good day for Denison, Grayson County and for everyone," he said.

According to the plan, construction will begin in June with completion and move-in expected 12 months later.

CIGNA, the Denison Development Alliance and local officials worked closely to find an appropriate site for the new CIGNA service facility.

"We're committed to keeping jobs in Grayson County for our citizens," said Lindsay. "We believe this development will provide a great impression for visitors entering our city from the south but also will be a significant catalyst for future development at that corner and along Highway 75. We are extremely appreciative to Tom Johnson for working with us in packaging his land to help develop this project. Tom is and has been a great supporter and partner for the city of Denison."

"We feel great about being part of this; my family and I owned the land and it's great to feel that we've made an economic impact to our community," said Johnson, president of First American Communications Enterprise. "This process has been a learning experience for us and a benefit for Denison. We are extremely pleased and excited about the site."

Other leaders praised and congratulated the hard work that went into the year long process.

"Denison and the Texoma area have a long tradition of attracting and keeping quality employers and I am pleased that CIGNA has chosen to remain in the area and continue with this tradition," said Larry Phillips, State Rep. Dist. 62. "I appreciate that DDA brought to my attention the legislative roadblocks for local areas to recruit back office businesses and retain employers. We were able work together during the last session to pass legislation to help make this project possible."

He added that CIGNA's decision will help the area for a long time.

"We appreciate you (CIGNA) staying in Texomaland," said Phillips. "And providing jobs for our area. We look forward to many more years."

Local leaders agreed and appreciated the process and working with each other.

"Every business has multiple options and we knew that CIGNA was looking to combine its operations into one large facility. Our mission was to work closely with them and the city of Sherman to find the most appropriate and cost effective site for their expansion needs," said Jerdy Gary, DDA board chairman. "In this case, Denison had available property that met their criteria and with the assistance of the DDA, we were able to partner with Grayson County officials, Grayson College officials, and CIGNA to keep current and future jobs in Grayson County."

"Once again the cities of Denison and Sherman - along with the County - have worked together to bring and keep jobs in this area," said County Judge Tim McGraw as he addressed the crowd of about 100 people. "I can't tell you how happy we are to keep an employer like CIGNA in Grayson County; it benefits us all. It is another example of what we can achieve if we all work together."

Anna McKinney, president of the Denison Area Chamber of Commerce, agreed it can work and that the announcement was just the beginning.

"This is a tremendous deal for Denison in retaining jobs for the area," said McKinney. "On behalf of the Chamber, we are pleased with the new business in Denison. We believe that it will be a catalyst for other development here."

Area entities - the Denison Development Alliance, the city of Denison and Grayson County - all approved tax abatements for the Fortune 500 company based on 50-400 additional jobs being created. The DDA entered into a performance agreement with Cigna at $3,000 per job; up to 400 beginning Dec. 31 since it was a local existing company. The agreement will provide up to $1.2 million to bring Cigna to Denison.

According to Scott Smathers, DDA vice president for business development, DDA has also committed $800,000 for infrastructure improvements to the area. He added that the improvements - such as the new waterline - were not just for the Cigna announcement.

"Making these improvements is a big advantage for this community," said Smathers. "We will bring in fiber, gas and new water/sewer to that site as well." In addition, landowner Johnson will pay about $100,000 to bring Pool Road up to city standards by adding curb and gutters and widening to 37 feet. Smathers was congratulatory in his remarks at the ceremony, which was held at the new Center for Workplace Learning at Grayson County College. He thanked CMC Realty, Johnson, County Commissioner Gene Short and city staff including City Manager Larry Cruise, Zoning Director Faye Brockett, Public Works Director David Howerton and City Attorney Tom Akins.

"They are tremendous assets to our community," said Smathers. "This wouldn't have happened without them." He also praised the DDA board of directors for their work.

CMC Realty, a commercial real estate company from the metroplex, will own the new building and provide a 10 year lease to Cigna under an agreement for the new site. Architects Hardy McCullah/MLM Architects, Inc will provide blueprints for the building.

CIGNA Corporation (NYSE: CI), headquartered in Philadelphia, and its subsidiaries constitute one of the largest publicly owned employee benefits organizations in the United States. Its subsidiaries are major providers of employee benefits offered through the workplace including health care products and services; group life and accident and disability insurance. More information can be found on the web site: http://www.cigna.com.

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