In April 2026, Denton City Council voted to approve nearly $1 million in tax incentives for the company KrateoSky, backing the company's plan to establish an AI Drone Factory in Denton, Texas. KrateoSky intends on signing a lease to occupy a 167,000 sq ft warehouse at 3411 Mingo Road. KrateoSky (founded in 2025) has no previous operations, making the AI Drone Factory in Denton the company's first venture. City of Denton's agreement to provide substantial support to an inexperienced company producing a new technology is a risky decision. Even worse, KrateoSky is estimating 60% of its drone production will be geared toward military contracts. If the City of Denton allows this project to develop and operate, it will stain our hands with the blood of innocent people, whose deaths will be subsidized by our tax dollars. The cost of this facility is far greater than any projected economic benefit.
Furthermore, KrateoSky’s planned operations do not qualify as “Light Industrial (LI)” use, which is the zoning designation for the warehouse at 3411 Mingo Rd. We understand that as a massive, at-scale drone weapons factory with AI manufacturing, KrateoSky’s planned operations align with “Heavy Industrial (HI)” use zoning. There is precedent for drone factories being zoned for HI use, and for City Councils in the United States approving resident rezoning requests to change drone factories from LI use to HI use, to align with industrial production capacity. The factory’s approval for LI use was a mistake we should reverse to avoid pollution next to residential, worship, and small business areas.
KrateoSky’s Sr. VP of Global Government Affairs Ellen McCarthy is on record saying “it’s important that if [KrateoSky] come[s] to Denton, [they’re] wanted here.” If the feelings of Dentonites matter to KrateoSky in deciding to come to Denton, they should know residents do not want them here in any capacity. KRATEOSKY OUT OF DENTON!
OUR DEMANDS
We the undersigned demand
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The newly formed Denton City Council vote to reconsider the zoning designation of KrateoSky’s planned operations at 3411 Mingo Rd. Councilors should determine KrateoSky’s planned operations as Heavy Industrial (HI) use.
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The newly formed Denton City Council vote to reconsider KrateoSky’s tax incentives. Councilors vote to revoke all tax incentives designated to KrateoSky.
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If and when KrateoSky’s AI drone factory’s zoning requirement is changed to HI, Councilors should refuse Special/Specific Use Permits, rezoning requests, and Preliminary Service Agreements from KrateoSky and any affiliates.