Denison, Texas

Railroad Heritage City Rebuilds Around Semiconductor Manufacturing Supply Chain

Where trains once connected America’s commerce corridors, a historic Texas city now positions itself as the critical link in the nation’s semiconductor supply chain renaissance.

In the rolling hills of North Texas, a 152-year-old railroad town is positioning itself at the center of one of America’s most dynamic economic transformations. Denison, Texas, sits just a few miles from where Texas Instruments is constructing a massive semiconductor complex with investment of up to $40 billion that will employ 3,000 workers, while the city itself prepares to nearly double in size through a massive lakeside development. “We are a 152-year-old city in a very actively growing North Texas environment, and we offer the greatest lifestyles and professional positions to the businesses in our communities,” says Mayor Robert Crawley.

The timing juxtaposes broader shifts reshaping the American economy. As semiconductor manufacturing returns to domestic soil and companies seek alternatives to coastal markets, mid-sized cities like Denison are becoming unexpected winners. The city’s proximity to Lake Texoma, an 89,000-acre recreational destination that draws nearly six million visitors annually, further accentuates its appeal. “We are a lakeside community to Lake Texoma,” notes Tony Kaai, President of the Denison Development Alliance, highlighting how the city balances industrial growth with quality-of-life amenities.

Recent recognition validates the city’s strategic approach. Denison won the 2025 Great American Main Street Award after three decades of downtown revitalization efforts, while regional semiconductor investments totaling $34 billion over the next decade promise to transform the entire Sherman-Denison metropolitan area into a major technology hub. For business leaders evaluating expansion opportunities, Denison represents a convergence of established infrastructure, emerging industry clusters, and small-town accessibility that larger metropolitan areas struggle to match.

Downtown Revival of The Great American Main Street

Denison’s downtown transformation began with a simple observation about decay. “A lot of our buildings were still covered in metal facades and coverings, and we wanted to get those off and get those buildings restored back to their historic look,” explains Kaai. The city launched its Main Street program over thirty years ago, implementing matching facade grants that leveraged public investment with private capital. “As of about thirty days ago, the very last two buildings on Main Street that had  metal coverings on it were completed.”

The program’s scope was more than just cosmetic improvements. “We’ve invested millions of matching public monies to private money to get all those buildings redeveloped and taken back to historic look,” Kaai notes. The city simultaneously established a historic preservation board to ensure developments met appropriate standards for buildings listed on the historic register. Property values show the sustained effort, rising from $50,000 to $60,000 seven or eight years ago to $450,000 today across the seven-block corridor.

Strategic zoning changes supported the economic foundation. The city modified ordinances to allow walking with alcoholic beverages and hosting outdoor events, transforming Main Street into an entertainment district. “We determined fifteen years ago that we wanted Main Street to be a destination location,” says Kaai. “We put together a target list of those entertainment type venues, and then we put a grant to loan program together,” Kaai explains. “So, if you came into a vacant building, built it out as a brewery, then we’re going to reimburse you fifteen percent of your total cost of the build out and your furniture fixture and equipment.”

The results validate the targeted approach. Say When Brewing Company, Ivanhoe Ale, Landon Winery, and Stafford House Provisions now anchor what Kaai describes as a collection of “unique, entrepreneurial type family restaurants, not chains.” The seven-block corridor, reportedly the longest main street district in Texas, has attracted multiple developers who recognized the city’s financial backing as a signal of long-term viability. “If I’m going to put my money in Main Street, I want to make sure the city is putting their money in it,” Kaai notes, explaining the psychology behind private investment decisions.

The Preston Harbor Game Changer

Twenty-five years in the making, Preston Harbor development is the largest single investment in Denison’s modern history. “The Preston Harbor development is a 3,100-acre planned development,” explains Mayor Crawley. “We expect that ribbon to be cut on the project within the next couple of months. It will comprise up to 7,500 to 10,000 new homes.” The project’s centerpiece, a Margaritaville hotel, places the development as both a residential community and tourist destination on the shores of Lake Texoma.

The scale could fundamentally alter Denison’s demographics and economy. With the city’s current population around 26,000 across 9,588 households according to the 2020 census, Preston Harbor’s planned 7,500 new households has a potential population growth of nearly 80 percent. Developer David Craig, whose Craig International successfully developed the master-planned Craig Ranch community in McKinney, brings proven expertise to the $6 billion project.

The development leverages Lake Texoma’s established appeal as a recreational destination. The 89,000-acre lake already attracts millions of visitors annually and ranks as one of the most popular federal recreation facilities nationwide. “There will be other amenities out there that obviously we don’t have downtown lakeside,” notes Kaai. “We’ll have a marina out there. Margaritaville is going to be a big tourist attraction.” The project includes two golf courses and extensive retail components, creating what planners envision as a self-contained community that complements rather than competes with downtown Denison’s entertainment district.

Infrastructure Investment and Team Denison

Supporting the Preston Harbor development requires massive infrastructure upgrades that provide benefits throughout Northwest Denison. “We don’t have water and sewer to this site,” explains Kaai. “To properly infrastructure these 3,100 acres, we need two 24-inch water lines so we have a loop and then we need a sewer line.” The community is investing approximately $80 million in water and sewer infrastructure, with the project already fifty percent complete according to Mayor Crawley.

The infrastructure investment creates multiple opportunities. “In doing so, we’ll also light up another 1,500 acres that are on that same corridor, Highway 84 that serves the Preston Harbor development,” Kaai notes. The strategic approach addresses current needs and future growth potential across the entire northwestern quadrant of the city. Developers expect to deliver the first homes with complete utilities by late 2026 or early 2027.

Downtown infrastructure receives equal attention through the Main Street revitalization program. “A huge part of the Main Street project is actually rebuilding the infrastructure that’s underground there,” explains Emily Agans, the city’s communication and media manager. “A large part of it is also redoing the water and sewer that runs along Main Street as well to improve that service for downtown Denison as a whole.” Some discovered infrastructure dates back 150 years, requiring complete replacement during the streetscape improvements.

The collaborative approach that Mayor Crawley calls “Team Denison” encompasses all city departments, the school district, and local businesses. “It takes all of us working together closely to make our community great,” he emphasizes, describing how coordinated planning allows the city to address both legacy infrastructure needs and rapid growth simultaneously.

Safety, Healthcare, and Recreation

Denison’s approach to public safety has produced measurable results that directly impact business operations and insurance costs. “We were named an ISO one rating by the insurance companies, which is the highest and best rating that we can get, which effectively helps lower the insurance cost of each of our citizens,” says Mayor Crawley. The ISO-1 fire rating places Denison among an elite group of communities nationwide, while the police department has recorded declining crime rates for three consecutive years.

Healthcare infrastructure anchors the city’s quality of life proposition. Texoma Medical Center, now operated by Universal Health Services, employs over 3,500 people as Denison’s largest employer. “That hospital now has almost any specialty you can imagine represented on the hospital staff,” Mayor Crawley notes. The facility’s growth from a city-owned hospital to a comprehensive medical center occurred through a strategic partnership that generated $42 million in profit for the city, funds used to create the Texoma Health Foundation.

Recreation amenities support residents and economic development goals. The $14 million Texoma Health Foundation Park hosts tournaments that generate tourism revenue, while nearby entertainment venues create synergies. “We brought two to Denison adjacent basically to the park,” explains Kaai, describing Heyday Entertainment and Urban Air. “In total, that entertainment push from this community we’ve recruited or invested in, there’s been about close to $40 million invested in those three amenities being built.” The facilities cater to different age groups, with Urban Air serving toddlers through elementary ages and Heyday offering bowling, laser tag, and arcade facilities for teenagers and adults.

Looking Ahead: Tech Industry and Vision 2040

The regional semiconductor boom allows Denison to capitalize on supply chain opportunities that could reshape its industrial base. “There’s about $34 billion worth of investment that are going to be made over the next ten years,” notes Kaai, referencing major facilities from Texas Instruments, Global Wafers, and Coherent in nearby Sherman. “Our main focus is to recruit the suppliers to the tech industries. We have two industrial properties, totaling about 500 acres, right on Highway 75 with infrastructure.”

Existing industry relationships provide a foundation for expansion. Ruiz Foods, the largest frozen Mexican food producer in the United States with 1,100 employees, relocated from California seventeen years ago. ACS, a local entrepreneur-founded company serving data centers, employs 350 people, while Caterpillar maintains 300 workers locally. “We have bimonthly meetings with all the plant managers,” Kaai explains. “They all know me; they all know my staff. If they have questions or issues about doing business, they know they can call me or my staff if we can get them an immediate answer.”

Long-term planning guides decision-making through structured goal-setting processes. “About 22 years ago, we got together and set up twenty goals for our community, and we call that Vision 2020,” says Mayor Crawley. “We have accomplished each and every one of those goals.” The recent Vision 2040 process established twenty new objectives for the next two decades, with infrastructure improvements ranking as the top priority.

The convergence of historic preservation, strategic development, and regional industrial growth creates a compelling proposition for businesses evaluating expansion opportunities in markets where costs remain manageable and community support structures are well-established.

AT A GLANCE

Name: City of Denison, Texas

What: Historic railroad city transforming into a tech industry supply chain hub through strategic economic development, downtown revitalization, and the $6 billion Preston Harbor lakeside development

Where: North Texas

Website: denisontx.gov