Sanderson Farms picks Mineola, ETexas area: now what happens?

Posted 3/29/17

As the news began to travel on the information superhighway a couple of weeks ago, it became clear Sanderson Farms, a Laurel, Mississippi-based poultry producer, was planning an expansion in Mineola …

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Sanderson Farms picks Mineola, ETexas area: now what happens?

Posted

As the news began to travel on the information superhighway a couple of weeks ago, it became clear Sanderson Farms, a Laurel, Mississippi-based poultry producer, was planning an expansion in Mineola and East Texas.

Bits of news eventually became fully formed stories and finally, on March 20 in the Smith County Commissioners Courtroom, county officials confirmed the arrival of Sanderson Farms with the expansion covering three areas – Lindale, Mineola and Winona.

In economic development terms, the dollar figures are impressive: a $200 million complex, $135 million for associated contract growers, some 1,700 new jobs and an estimated return of $1.4 billion after the first 10 years.

The ripple effect is expected to be significant as well. The company plans to contract at least 80 farmers who, of course, will need lots of acreage to raise birds according to Sanderson’s specifications.

All in all, that’s a lot of scratch.

Lindale Mayor Jeff Daugherty understands that until that dotted line has signatures, nothing can be said to be official.

However, since there is a shovel-ready site in place at the Lindale Industrial Park which is close to Interstate 20 and Loop 49 (as well as the Lindale Relief Route currently under construction), the mayor feels once everything is confirmed, Lindale will indeed be one of the three Sanderson sites.

“Over the years, the Lindale Economic Development Corporation and its board have worked to make sure our industrial park is shovel ready for any company wanting to locate there,’’ Daugherty said. “(The site) is ready… it has all the hookups and has access to the interstate.’’

In fact, during the press conference Tyler Economic Development Corporation President Tom Mullins noted Sanderson officials were impressed with Lindale’s easy highway access and how rapid travel would be from the Lindale site to the Mineola site.

Daugherty also pointed out a business of Sanderson’s size will create a large number of related jobs.

“Another exciting thing about this is the investment in the entire region,’’ he said. “This will mean a lot of employment for Smith and Wood counties.’’

City and county entities still have to approve tax abatements, which would seem a foregone conclusion. Tom Mullins estimated the abatement figure to be approximately $18 million.

Obviously, when the third largest poultry producer in the U.S. plans an expansion of this magnitude, there will be plenty of moving parts.

During the press conference, Mullins - along with Smith County Judge Nathaniel Moran and Tyler Mayor Martin Heines - addressed some of the needed components to make the new facility successful.

Land in and around Mineola, while plentiful, still has to be secured. Possible locations in Winona also remain in flux.

“This has not been an easy project to finalize because it involves three segments,’’ Mullins said. “But it will be a game changer for the area.’’

Sanderson, Mullins said, received a favorable recommendation from a familiar East Texas business – John Soules Foods, located on FM 14 in Smith County.

“They (John Soules Foods) knew Sanderson was looking for a fourth location in Texas and they recommended our area highly,’’ Mullins said.

Of course, one of the first things to come to mind when discussing chicken production facilities is the effect on the environment, and specifically, will it pass the smell test?

“When we learned of Sanderson’s interest, we took a dozen or so people to their plant in Palestine,’’ Mullins said. “There was no odor whatsoever. It is environmentally friendly and absolutely clean. Sanderson insists on doing business this way.’’

Daugherty said Lindale representatives have been invited to tour the Palestine facility in the near future and will report on their findings.

With three different facilities located several miles apart, road usage could become a problem.

“The beautiful thing in this regard is how the Lindale folks have been so supportive of Loop 49,’’ Mullins said. “(Sanderson) saw the construction going on and knew this would be a great benefit to their project.’’