In a recent decision, the Denton City Council approved approximately $870,000 in economic incentives for KrateoSky, a drone manufacturing company planning to establish a facility in Denton. The measure passed with a 4-3 vote, reflecting a divided council on the issue.
Details of the Agreement
KrateoSky intends to lease a 168,000-square-foot building at 3411 Mingo Road to house its manufacturing, testing, and research operations. The company projects the creation of about 260 jobs, with average salaries around $79,000 annually. Positions will range from production technicians and warehouse staff to human resources personnel and production engineers.
The planned capital investment for the facility is approximately $23.5 million, covering office space buildout, climate control system installation, manufacturing floor construction, power distribution upgrades, tooling and assembly fixtures, and testing equipment.
Incentive Breakdown
The approved incentives include:
- An eight-year, 65% rebate on new improvements, totaling $498,564.
- A 50% sales and use tax rebate on construction materials, amounting to $94,500.
Council Deliberations
The council’s decision was not unanimous. Council members Brian Beck, Brandon McGee, and Mayor Pro Tem Suzi Rumohr voted against the incentives. Concerns were raised about the ethical implications of military drone production, as KrateoSky anticipates that at least 60% of its revenue will come from federal contracts for military applications.
McGee expressed reservations about the ethical use of drones by federal and state agencies, stating, “I don’t have the confidence in our federal or state government.” Beck echoed these concerns, emphasizing his opposition to the plant producing military drones.
Company’s Perspective
Ellen McCarthy, KrateoSky’s senior vice president of global government affairs, highlighted the company’s mission to build a robust American manufacturing base for military drone production. She noted the urgent need for a sovereign American unmanned aircraft system base and expressed the company’s commitment to establishing operations in Denton.
Looking Ahead
KrateoSky plans to commence operations at the Denton facility by late fall 2026. The company is in the process of finalizing the lease for the building, a step that may take several months.
This development marks a significant investment in Denton’s economy, promising job creation and technological advancement. However, it also brings to the forefront discussions about the ethical considerations of military manufacturing within the community.