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Right, image of a Gap distribution center. Courtesy Photo
$140M Gap facility
‘Historic’ Moment for Longview Economy
BY JO LEE FERGUSON AND CHRISTINA CAVAZOS
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4 ©2021, M. ROBERTS MEDIA
SECTION B | FRIDAY, OCTOBER 15, 2021 QUARTERLY | 4 OF 4
jferguson@news-journal.com ccavazos@news-journal.com
Longview Economic Development Corp. celebrated many milestones in 2021, most notably a project that many described as “historic” and a “game changer.” Those words were used this year to describe news that Gap Inc. will begin building an e-commerce fulfillment and distribution center in Longview’s North Business Park off U.S. 259. The 850,000-square-foot facility will be constructed on 142 acres, with a goal that it will be fully operational by August 2022. Gap Inc., which serves as the parent company for retail brands including Gap and Old Navy, announced its plans in February. The company said it will invest $140 million in the facility by 2023. The new center, which will initially serve Old Navy’s growing online business, will create more than 500 full-time jobs in Longview by the end of 2023 and will grow to more than 1,200 full-time jobs over the next five years. Additionally, the company expects to create more than 1,000 part time seasonal jobs by 2026, Gap Inc. said in a statement. Full-time hourly salaries will be $15 to $16 an hour with benefits, according to information from Longview Economic Development Corp. “This is a big day for Longview,” Gregg County Judge Bill Stoudt said earlier this year. “This is a game changer as we say in this business when you get the type of company that Gap Inc. is.”
LEDCO agreed to a forgivable promissory note for $11.42 million for the purchase/sale of 142 acres in the North Longview Business Park, with forgiveness based on completion of the investment and employment goals over five years. LEDCO will hold a first lien deed of trust on the property where Gap Inc. will locate. LEDCO also will pay to relocate certain water, sewer and gas lines that cross the property, at an estimated expense of $997,000. In return, starting in 2022, the distribution center would be required to have an average of 255 full-time employees, ramping up to 1,222 by 2026. That would make the center Longview’s fourth-largest employer by today’s rankings, behind Christus Good Shepherd, Longview ISD and Eastman Chemical Co., according to LEDCO. Gap Inc, would make a capital investment of $110 million in 2022 and $30 million in 2023 to complete the 850,000-square-foot building, with the first certificate of occupancy issued by Aug. 2, 2022. Also, the city and Gregg County each agreed to 25-year tax abatements that would see those entities reimburse the company for its real and personal propSee GAP, Page 8B
1. Kevin Kuntz, senior vice president of global logistics for Gap Inc., 2. LEDCO President and CEO Wayne Mansfield, 3. Gregg County Judge Bill Stoudt and 4. Mayor Andy Mack speak during a press conference announcing the addition of a new Gap Inc. distribustion center in Longview. (Les Hassell/News-Journal Photo)
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Longview Business Park
Aviagen plans new hatchery Poultry Breeding
“Aviagen offers specialty breeding stock to customers in more than 100 countries worldwide under the Arbor Acres, Indian River and Ross Brand names.” Longview Economic Development Corp. BY JO LEE FERGUSON
jferguson@news-journal.com
Poultry breeding company Aviagen North America is expected to make an investment of more than $24 million in the Longview Business Park and create at least 69 jobs in the next couple of years. The Longview Economic Development Corp. board in May approved a package of incentives for the Huntsville, Alabamabased company that has locations across the globe. LEDCO Chief Executive Officer and President Wayne Mansfield said at the time that the company will build a “high-tech” 50,000-to 60,000-square-foot facility on 15.7 acres in the Longview Business Park off Eastman Road. He said it’s been about five years since an economic development project located in the business park, and
Longview Business Park. (File Photo/News-Journal Photo)
LEDCO is “excited” to bring the facility to South Longview. “This is essentially a genetics lab,” that incubates and hatches breeder chicks that are then shipped all over the world when they are a day old. The chicks are not for consumption, he said, and there is no odor associated with the facility. It’s a “unique” project for Longview, Mansfield said, because it’s in the agricultural sector. “Aviagen offers specialty breeding stock to customers in more than 100 countries worldwide under the Arbor Acres, Indian River and Ross Brand names,” according to information from LEDCO. The facility is a response to “strong demand for boiler breeding stock” in North America and around the world, Aviagen reported. “With the ability to set 1.1 million eggs
per week, the parent stock hatchery will supply customers both domestically in North America and internationally,” the company reported. Aviagen North America President Marc DeBeer said strong demand for “healthy, affordable chicken meat” was consistent throughout the pandemic. “We are committed to securing the supply of quality parent stock to help our customers put food on the tables of families throughout North America and around the world,” DeBeer said in a statement. “The new hatchery in Longview will play a big part in this goal.” Aviagen said the Longview hatchery will be its ninth in North American and first in Texas, with construction expected to begin in September and be completed in July 2022.
We have made great strides in our community, for which we should all be thankful, and have many wonderful projects underway.
Letter from Mayor
Andy Mack It’s easy to forget in our modern lives, but for most of history Fall was a time of celebration as the hard work of Spring and Summer gave way to a bountiful harvest to feed the community through the cold Winter months. Those harvest symbols are still woven into our shared understanding of the season. We decorate our homes with pumpkins and gourds. We gather with friends and family to be thankful. We go for rides on bales of hay. In short, we celebrate the harvest without putting in the work. But ask any farmer or backyard gardener and they will tell you what it takes to grow crops. They’ll tell you about preparing the soil, planting the seeds, tending the plants as they grow, fighting off pests, and harvesting. And, they’ll tell you how much sweeter it is when the vegetables on your plate came from your hard work. The lesson of the harvest is clear. Hard work pays off. Given enough time, consistent and dedicated effort brings about results. The work isn’t always pleasant, but the end result is always worth it.
Progress continues on the completion of the Guthrie Creek Shared Use Path, which will connect the Paul G. Boorman Trail and the Cargill Long Park Trail and form 10 consecutive miles of trails in Longview. Crews are working to build an underpass for the trail at McCann Road, which will ultimately help ensure the safety of drivers, bikers, and pedestrians. Across town, the City’s Broughton Recreation Center remains closed as renovations continue in the $5.7 million reconstruction project of the facility and adjoining park. After completion, the recreation center will contain a new gymnasium, new Broughton Branch of the Longview Public Library, additional parking, and much more. The park will have replaced pavilions and an extended trail. The work was approved as part of the 2018 voter-approved bond package and should be finished next year. Other park projects included in the bond package are also moving forward. Improvements are underway at Lois Jackon, McWorter, Spring Creek, and Stamper parks and at Womack Field.
As you see the signs of the harvest this Fall like hay bales, cornucopias, and pumpkins, I invite you to remember this lesson in your personal life.
It’s not just our parks that are seeing improvements. Our public safety facilities are being prepared to serve citizens for the coming decades.
And, as you see signs of work in our community like closed parks, redirected roadways, and new buildings being constructed, I hope you will look forward to the good fruit it will ultimately bring about.
If you drive down South Street, you’ll see that progress is well underway for the new Police building, and across Longview renovation and new construction is beginning at several of our fire stations.
Hard work doesn’t only come in the form of large construction projects. Just ask the more than 600 residents who volunteered on Sept. 18 during Keep Longview Beautiful’s Love Longview event, which was the first of its kind since the start of the pandemic. Volunteers fanned out across the city collecting nearly 7 tons of litter and spending nearly $55,000 worth of volunteer hours benefitting our community. Keep Longview Beautiful will hold its next Love Longview event in the Spring on Saturday, March 5, 2022, and is hoping to have 1,000 volunteers participate. Appreciating the lesson of Fall helps us in two ways. It strengthens us for the hard work to make our community great, and it makes us appreciative of the labor that has come before to give us the many gifts we now enjoy. We have made great strides in our community, for which we should all be thankful, and have many wonderful projects underway. We also have much work left to be done. It’s good to pause, celebrate, and be grateful, but then we must all get back to work, knowing that our efforts today will make an even brighter tomorrow.
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Instructor Steve Henderson speaks about a manual mill at the East Texas Advanced Manufacturing Academy and student Colton McCartney listens. (Michael Cavazos/ News-Journal Photo)
East Texas Advanced Manufacturing Academy adds adult education class There is a demand for people with these skills . . . as companies such as Komatsu and STEMCO in Longview need employees with machine skills. Steve Henderson, lead instructor
FROM STAFF REPORTS The East Texas Advanced Manufacturing Academy in Longview no longer just serves area high school students as the campus added an adult education class to its catalog this year. A basic, 96-hour machine shop course started in February. Lead instructor Steve Henderson said at the time the class will teach skills such as reading blueprints and how to set up and operate manual machine tools. Students will learn how to work mechanical machines, not computer-controlled ones. There is a demand for people with these skills, Henderson said, as companies such as Komatsu and STEMCO in Longview need employees with machine skills. Registration for the course is available through Kilgore College. The class is a partnership with the college’s continuing education offerings. The manufacturing academy is a partnership with local high schools that allows students to go to the campus on West South Street for manufacturing classes. The academy also is run by the nonprofit organization Longview Educates and Prospers, which is a Senate Bill 1882 charter partner with Longview ISD. SB 1882 gives financial incentive to public schools that partner with outside entities to run campuses as charter schools. The course also is in collaboration with the Longview Chamber of Commerce, according to Kilgore College. The course is part of efforts to fill in gaps with employers and academics. “These are skillsets that will enable graduates to be qualified for good-paying jobs enabling a good life in our community,” Kelly Hall, president and CEO of the Longview Chamber of Commerce Kelly Hall, said in a statement. “The objective of this collaboration is to grow manufacturing skills to supply capabilities for the existing East Texas industry base, attract new industry and provide students with pathways to industrial jobs that will earn competitive wages.”
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Home is more in 2021 than it ever was. “We used to think about going out as our source of entertainment, for recreation, for eating, and now we’re seeing that transition to where people are in their homes more.” Mindy Hamilton, President East Texas Builders Association
Building Trends
Higlight interest in specific areas of the home
BY JO LEE FERGUSON
jferguson@news-journal.com
Home is more in 2021 than it ever was. It’s a place where people work and log into school. It’s a place where people are enjoying cooking at home more. It’s a place where people are looking for entertainment and recreation in their back yards or inside their homes. “With COVID, it’s been a little interesting as far as what people’s wants and desires are for the home,” said Mindy Hamilton, a third generation home builder with the Hamilton Group in Longview. She’s also president of the East Texas Builders Association. “We used to think about going out as our source of entertainment, for recreation, for eating, and now we’re seeing that transition to where people are in their homes more.” That has translated into an emphasis on specific areas of the home when it comes to new construction and remodeling. Although the pandemic pushed prices higher, home building has remained strong in East Texas and home builders have noticed new trends emerging. Hamilton said there is a renewed interest in studies or home offices, along with an emphasis on technology and integration of smart home technology. More people are using the internet at the same time for working and partici-
pating in online school at home. Hamilton said that means ensuring the technology can support the necessary Wi-Fi network in a home with Wi-Fi repeaters throughout the house. Hardwire connections also are requested to accompany Wi-Fi, she said. Additionally, Hamilton said builders are seeing customers focusing on outdoor spaces — outdoor kitchens, backyard space for children to play and pools. “Anything that is entertainment at home,” Hamilton said. Bigger kitchens, where parents can cook while children sit around an island working on homework, are another building trend resulting from the pandemic. “Flexible spaces” are too, where a game room might become a home school room instead. “We’re seeing spaces that are more flexible and that are more in keeping with family time,” Hamilton said. Other trends include a push for more farmhouse style homes, hardwood floors are still desired, and clean lines and less trim work are popular. Lighting is a mixture of recessed, chandeliers and hanging fixtures that serve as artwork in the room, Hamilton said. Overall energy efficiency has become more important for homes, she added, with people gravitating toward spray foam in the attic and also using what’s known as freeze resistant PEX piping.
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New housing development Crews work on the construction of Gap Inc.’s e-commerce fulfillment and distribution center in the Longview North Business Park. (Michael Cavazos/News-Journal Photo)
GAP
planned off Judson Road in Longview The property will consist of 12, two-bedroom units, nine one-bedroom apartments and three, three-bedroom units. BY JO LEE FERGUSON
continued from page 1B
erty taxes so long as the company maintained the employee and capital investment goals each year of the 25year agreement. They also agreed to reimburse Gap Inc. for up to 40% of local sales tax revenues associated with sales from the fulfillment center over the 25-year period. Wayne Mansfield, president and CEO of LEDCO, said in February that while the length of time for the abatements is different from many projects, there are no projects of this magnitude in this area considering the sales tax revenue that will be generated. Those revenues are expected to pay back the community’s investment in the project within five years, he said, with a rate of return on investment of 29%. County officials said Gregg County would see $27 million in revenues over the course of its 25-year agreement with Gap Inc. Gap Inc., which has retail brands Old Navy, Gap, Banana Republic, Athleta, Intermix and Janie and Jack, said the new center will become its latest facility to feature industry-leading technology and, when completed, will be able to process up to 1 million units per day. “As we look to deliver on our threeyear strategy and double our online business, we needed to expand our fulfillment network to provide a great experience for our customers today and ensure we have the ability to grow in the future,” Shawn Curran, chief operating officer of Inc., said in February in a statement. “We are thrilled to join the Longview community and look forward to developing a facility that will provide employment opportunities and job training to work alongside cutting-edge technology.” Though the center will initially serve Old Navy’s online business, the company said many of its customer
experience centers have the capability to seamlessly serve both online and retail orders in one facility. Kevin Kuntz, senior vice president of global logistics for Gap Inc., said in February that the company’s e-commerce business is doubling as consumer shopping trends have changed during the COVID-19 pandemic. The company needed space quickly and became interested in Longview as it strives to more quickly reach its customers who live in the Southwest, Kuntz said. The center, which is the first that Gap Inc. is building from the ground up, will use state-of-the-art technology, Kuntz said. The center, while ultimately employing more than 1,000 people, will use a significant amount of “crane technology,” Kuntz explained. The technology is capable of placing boxes on shelves, pulling boxes and using robotic arms to pick clothes and sort them for customers, he said. At peak times, such as during the holiday season, the center will be capable of shipping as many as 1 million garments per day, Kuntz said. Employees will work shifts for about 20 hours per day, seven days a week, as the company strives to fulfill orders quickly for customers who shop at all hours. In June, Gap Inc. closed on the transfer of 142 acres in the North Longview Business Park from the Longview Economic Development Corp. That, in turn, triggered a $5.2 million payment from LEDCO to Gap as part of an incentive package local officials approved to help lure the company to Longview. Gap, must meet the goals of the performance agreement with LEDCO or it will be required to repay the cash and land value.
jferguson@news-journal.com
A new apartment complex that will be constructed at 1201 N. Eastman Road across from Forest Park Middle School will feature energy efficient units, a dog park and walking trails. Greg Jones, head of Beechwood Construction and Development in Longview, said in September the three-story complex will have 24 units and will be on 1.7 vacant acres next to another property he developed, Forest Park Village where Legacy Doughnut is located. “It’s going to be kind of a modern look
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Longview News-Journal, Friday, October 15, 2021
BY JO LEE FERGUSON
jferguson@news-journal.com
A development of 59 single-family rental homes could be built on the backside of property along the 2100 block of Judson Road in Longview. The Longview Planning and Zoning Commission recently gave its approval to a zoning change for 9.68 acres from general retail to a single family zoning that would clear the way for construction of The Villas at Judson Road, which would be just south of the Longview Mall. The City Council also will conduct a public hearing on the matter and consider the request at its Oct. 21 meeting. Dallas-based developer NDC Holdings has a contract to purchase the property, which includes land that fronts Judson Road and would remain zoned for general retail. Brent Conaway of Conaway Homes addressed the commission in September
about the property, saying he’s been working with NDC Holdings. “We plan to build those as rental homes and hold them for ourselves,” Conaway said, adding that his company has staff who will maintain the development, including the yards, irrigation and landscaping. Conaway is planning to build one-story homes that are larger than 1,000 square feet, with three bedrooms, two baths and two-car garages. Homes would be 10 feet apart. The zoning request was submitted for a new single-family district called SF6 that was created as part of the city’s new Unified Development Code. Sidewalks would be required on one side of the roads in the development. Lot sizes are required to be at least 4,000 square feet, and homes must be at least 1,000 square feet, among other requirements. “(SF6) is a very new zoning category,” said City Planner Angela Choy. “It’s a very good transitional district.”
Housing develpment lots.
New Apartments set on Eastman Road with black windows,” and colored a white-gray, Jones said. It will have stairs but no elevator, and each unit will have a balcony. The property will consist of 12, twobedroom units, nine one-bedroom apartments and three, three-bedroom units. The first floor will feature three units considered accessible under the Americans with Disabilities Act, Jones said — a one, two and three bedroom unit. The project’s construction value is listed at $1.5 million in a building permit application to the city of Longview. Jones said there are 800 apartment units along the Eastman Road area that
were built in the 1970s and 1980s. They’ve been renovated, but his new complex will have all the “modern conveniences,” with granite countertops and tile backsplash and insulation and wiring to today’s standards. Rents haven’t been set yet, but he said they shouldn’t be much higher than the existing apartments in that area. He said, though, that he expects utility bills will be less than what residents are paying in the older units along Eastman Road. The units also will have sprinkler systems under updated city guidelines. “That’s a big safety item that’s not on the older units,” Jones said.
A new three-story apartment complex will have 24 units and be on 1.7 vacant acres next to Forest Park Village where Legacy Doughnut is located. (Photo by Jo Lee Ferguson)
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