Project seems clear for takeoff

A plan to create an economic development district around a proposed new power plant near Denton Airport seems headed toward approval after it faced no objections Tuesday before the City Council.

The council met during a nonvoting work session to discuss the project, which involves building a combined heat and power plant and creating an economic development zone around it where the city could sell steam, chilled water and natural gas to industries.

A vote is expected next Tuesday.

The Texas Legislature authorized the project last year through Senate Bill 1230, overriding a city charter provision that calls for voter approval of new public utilities.

The Denton Record-Chronicle previously reported that Mayor Mark Burroughs and other city officials pursued the state law rather than call an election because they wanted to work with gas companies operating near the airport to calm fears that the city was becoming a full-fledged competitor.

Former council member Neil Durrance cited the law in an interview Friday announcing his mayoral campaign, calling it an example of the Burroughs-led council bypassing the people.

A third mayoral candidate, marketing director Donna Woodfork, said the issue deserved more study and public input.

Council members mostly steered clear of the controversy during their public session Tuesday. Before the session, they met behind closed doors with attorneys for about 15 minutes after council member Chris Watts said he had legal questions.

Burroughs, who is seeking a third term May 12, repeated his explanation that the city was under pressure to move quickly because Target Co. had expressed interest in the combined heat and power plant.

"I know that put some pressure on us," he said.

Burroughs said it was important to him to consider potential competitors - in this case, Atmos Energy, which has a gas pipeline nearby. Atmos officials had said they would not extend gas service to the area until the customer base was there, he said.

"But they also endorsed us going with Senate Bill 1230," Burroughs said. "And they're the competitor and the one that needs protecting, I guess, in a general sense."

The project has the potential to attract major industries to Denton in part by solving a longstanding problem of a lack of natural gas service near the airport, said Mike Grim, an official with DME, the city-run electric utility.

Also, under the ordinance the council will consider next Tuesday, the city's economic development department and Economic Development Partnership Board would work with DME to develop guidelines for incentives to recruit industries to the district. The guidelines would be presented to the council for approval by July 1.

"Instead of just waiting for somebody to come to Denton, we can proactively develop our marketing strategy and go out and talk to them about Denton and bring them here," Grim told the council.

City officials have long complained they've lost industrial prospects because the airport area lacks sufficient natural gas volume and pressure. Gas companies won't serve the area until more business is there, city officials say, creating a chicken-or-egg situation.

"We've had some incredible manufacturers that … didn't come in here because they didn't have gas in that area," Mayor Pro Tem Pete Kamp said. "They actually wanted to [come]. So it's not just us going out trying to get people. They are coming to us and want to relocate here."

The economic development district would have a 3-mile radius centered northeast of the airport and bordered by University Drive on the north and Interstate 35 on the east.

Combined heat and power, also known as CHP or cogeneration, is when electricity and thermal energy are produced simultaneously from a single fuel source.

A CHP plant is an alternative to the more common practice of customers buying power from a local utility and burning fuel in a furnace or boiler to make thermal energy.

Also Tuesday, council members heard a report from city staffers recommending that they consider requiring apartment complexes to offer onsite recycling for their tenants.

Currently, apartment managers and owners can decide whether to provide onsite recycling, and only five of the city's nearly 400 multifamily properties offer the service, according to information provided to the council. City staffers said requiring recycling at apartments would divert more waste from the landfill and help the city meet its goal of recycling 40 percent of all waste.

Council members wanted more information before making a decision, including an inventory of apartment complexes.

LOWELL BROWN can be reached at 940-566-6882. His e-mail address is lmbrown@dentonrc.com.