San Diego-based CAT dealer Hawthorne Machinery Co. is expanding its operations into Decatur’s industrial park.
The Decatur City Council unanimously approved a Decatur Economic Development Corp. performance agreement and real estate sales contract with Hawthorne on Monday night to build and open a facility in Decatur that will bring at least 10 full-time equivalent positions to the city by 2031.
The Caterpillar Inc. dealer’s market is primarily on the West Coast, serving San Diego, Hawaii, Guam, Saipan and American Samoa. The company is expanding into Texas for a more centralized testing facility, said Hawthorne CFO Brian Verhoeven, who participated in the City Council meeting remotely.
“We’re a Caterpillar dealership, similar to HOLT CAT, but the business we’re operating in Texas is a subset that deals with testing equipment, power generation equipment and some other business line items,” Verhoeven said. “We were looking for a more central location to serve our customers throughout the United States.” The deal between the DEDC and Hawthorne provides a $170,000 discount on the purchase of 5.51 acres in Eagles Landing Business Park in exchange for meeting a series of construction, hiring and investment benchmarks. The cost per acre, per the contract, will be $100,000, compared with the mutually agreed-upon fair value of $130,680 per acre. The sale must be completed within 90 days.The agreement requires a minimum capital investment of $4.325 million by July 1, 2027, followed by an additional $250,000 by July 1, 2031. The developer must provide paid receipts or invoices to the EDC and begin construction by July 1, 2026. A certificate of occupancy from the city of Decatur must be obtained by June 30, 2027. The developer is required to open the facility by July 1, 2027.The agreement sets a tiered hiring schedule for full-time equivalent positions:
July 1, 2027: Three positions
July 1, 2028: Four positions total
July 1, 2029: Six positions total
July 1, 2030: Eight positions total
July 1, 2031: 10 positions total
The business must submit annual compliance reports to the EDC, including tax documentation and average wage disclosures, starting Sept. 1, 2027.
Hawthorne National Strategy Manager Steven Bacon attended the meeting as well as the developer for the project, Gary Pickens, president of United Properties Southwest.
Pickens shared current design plans for the 24,000-square-foot facility in Eagles Landing Business Park, located off Farm Road 2264.
The building will be a pre-engineered steel-frame structure that’s partially enhanced with masonry.
“We’re excited to get going with this and ready to proceed right away,” Pickens said.
“I must say the staff has been extremely helpful, cooperative and thorough. We’re very grateful, and working with Kevin with the EDC has been a pleasure. We appreciate their efforts to bring us to Eagles Landing,” he added.
Hawthorne has operated since 1956, supplying equipment and services to several industries, including general and heavy construction; quarry and aggregate; landscaping; marine; paving; waste management; backup power; and power generation, according to its website.
After approving the deal, council members praised Holzbog’s impact, prompting an ovation for the outgoing DEDC executive director, who has accepted a job with the Waggoner-Sauder family. Holzbog’s last day with the DEDC is March 31.