City Council approves incentive to draw ThermaSol to Round Rock
California company will relocate headquarters here, brining 45 jobs and $3.5 million facility investment
The Round Rock City Council has approved a $400,000 incentive package for California company ThermaSol, a subsidiary of D.M.A. Enterprises, to develop a 27-acre upscale business park anchored by a new world headquarters facility.
ThermaSol, which closed on the property earlier this month, will build its headquarters on one of the five parcels being replatted in the property. The 55-year-old company is the inventor and leading global manufacturer of steam bath equipment for homes, hotels, spas and resorts. ThermaSol is currently located in Simi Valley, Calif.
"We looked at most places in central Texas, and found that Round Rock gave us the most comfortable feeling," ThermaSol CEO Mitch Altman said. "We liked the bigger town amenities combined with the small town feeling and warmth of the people."
Mayor Alan McGraw said the project is a "win-win" for Round Rock.
"Getting a new world headquarters facility and business park in the same project doesn't happen every day," McGraw said. "We are very excited to have them join our community."
The property, located just north of the City police station on North Mays Street, will be replatted into five parcels. Four of the parcels will be between 3.5 to 4.5 acres and developed for build-to-suite or sale opportunities. The fifth parcel will measure 11 acres and be developed last.
"We are excited for this project not only because of the new world headquarters for ThermaSol, but also for the additional investment they will be making to develop the surrounding parcels into an upscale business park," said Bryant Smith, Chairman of the Round Rock Chamber of Commerce and Economic Development Partnership. "This will make a property that has been historically slow to develop into a shovel-ready gem of a site for future business opportunities."
Said Jim Boles, chairman of Round Rock Economic Development Partnership's Momentum Committee: "The business park development is a huge step forward for Round Rock. Nowadays when companies are looking to move they are on a much shorter timeline than they used to be. This will give us shovel-ready sites that they can come straight in to and begin development. That's huge."
The company's new world headquarters will open the fourth quarter of 2014 with a 37,000-square-foot manufacturing facility covering nearly 3.5 acres. It will employ a minimum of 45 people including factory personnel and the upper management team, but could create as many as 60 new jobs in the community.
Total investment by ThermaSol for this project will be at least $3.5 million, per the incentive agreement with the City. The investment and job creation of 45 net jobs to the community gives the City of Round Rock a payback of 6.8 years, not including the anticipated development on the remaining lots once they are shovel-ready. The $400,000 cash incentive will be paid at the completion of the headquarters facility.
The Round Rock Chamber of Commerce and Economic Development Partnership received the lead for the project through Opportunity Austin, the regional economic develop group staffed by the Austin Regional Chamber. ThermaSol considered locations as far south as San Marcos and as far North as Georgetown before ultimately deciding on Round Rock.
"The Round Rock Chamber is awesome," Altman said. "I can't say enough about how easy and welcoming Ben White and Kyle Shulz made it for us to reach an exciting agreement! (City Manager) Steve Norwood and (Planning Director) Brad Wiseman from the city also played a major role working with us on some special issues to make this all happen. In addition, the Chamber provided us with banking and realty references that where outstanding. Frances Crossley and Harry Gibbs with KW Commercial worked magic on our land deal, and Mike Doss of Independent bank took care of us on the financing."
Posted: Friday, November 15, 2013