Sadler Powder Coating is a local family business that wanted to grow. HEDCO agreed to help. The public record shows the money going out, but not the full terms of what the company promised in return.
This story is part of our review of every performance agreement the Henderson Economic Development Corporation has made. A performance agreement is a contract: HEDCO puts up sales tax money, land or work, and a business promises something in return, usually investment and jobs. We are not suggesting anyone did anything wrong. We are asking whether the public can see what was promised and whether anyone checks.
| The deal at a glance | |
|---|---|
| Recipient | Sadler Powder Coating, LLC |
| HEDCO project number | 2025-05-18 |
| HEDCO approval | On the July 15, 2025 agenda |
| City Council approval | November 18, 2025 (item 20) |
| Paid so far | $35,000 in 2025-26; “next and final payment” due in 2027 |
| Promised in return | Job creation and retention for 24 months, per council presentation |
| Agreement text public? | Not in the records we hold |
What the record shows
Sadler first came to HEDCO for an industrial matching grant, on the February 18, 2025 agenda. The performance agreement followed on the July 15, 2025 agenda.
At the November 18, 2025 City Council meeting, HEDCO Executive Director Bret Gardella described Sadler as a local family business whose owners and most employees live and shop in Henderson. The plant sits in Rusk County, outside city limits. He said HEDCO checked with the state before agreeing to help, that HEDCO’s commitment is “less than 10%” of the company’s project, and that it is based on creating and keeping jobs for 24 months. The council approved it.
HEDCO’s year-end report through August 31, 2026 shows $35,000 paid under the line “Sadlers Performance,” which had a budget of $0 for 2025-26. The report notes the final payment is due in 2027.
What’s missing
What the public record leaves out
- The total incentive. “Less than 10%” of a project is not a dollar figure.
- How many jobs, at what pay, and how HEDCO verifies them.
- Why a $35,000 payment went out of a line with no money budgeted, and whether the budget was amended. State law makes the city responsible for HEDCO’s spending. The City Council must approve all of the corporation’s programs and expenditures (Local Government Code 501.073).
- Whether the industrial grant and the performance agreement are separate awards, and the total of both.
- How the city benefits from a plant outside city limits, which pays no city property tax.
Our ask
What would make this deal easy to check
- Post the signed agreement and any amendments on HEDCO’s website.
- State the total incentive, the job count and the wage floor.
- Show the job verification that supported the 2025-26 payment.
- Bring a budget amendment to the council for the payment, if one was not approved.
Sources: HEDCO agendas for February 18 and July 15, 2025; Henderson City Council meeting, November 18, 2025 (recording); HEDCO financial report through August 31, 2026 (line 6101), printed in the October 20, 2026 City Council packet; HEDCO financial report through March 31, 2026.