The Denison Development Alliance completed the first steps in securing financing for the a new natural gas line, which will fuel the new Denison High School, as it accepted a banking bid on Thursday to pay for the project.
The DDA accepted a financing bid for the $725,000 project, from Woodforest National Bank, based in Spring, Texas. The 12,000-foot pipeline is needed because of the increasing demands of the Ruiz Foods plant expansion, which is expected to open within the next two months, and the the new Denison High School.
“The current cap of those gas lines is not enough to handle both loads,” said Tony Kaai, president of the DDA.
Atmos Energy requires that cities and other institutions pay for the infrastructure upgrades to existing gas lines. As the DDA was required to pay the costs upfront, the loan will keep it up to date with other financial obligations as it uses its tax funding to recoup the expenses on the project.
Besides Ruiz Foods and DHS, the pipeline will also fuel the Kwikset facility on Highway 91, and the Denison Development Foundation Business Park. The pipeline will provide enough natural gas to support future residential, business, and industrial development, said Kaai.
“We will have enough (natural gas) capacity for expansion of any business, or future business,” said Kaai.
Before the loan is accepted fully, it must be approved by the Denison City Council at its next meeting. Construction on the pipeline has already commenced, and the project is expected to be complete within 45 days, said Kaai.