| COVER STORY, APRIL 2009
RAISING THE BAR
Economic development agencies in the Bay Area of Houston and Dallas/Fort Worth Metroplex work hard to stand out.
By Coleman Wood
In response to the hard times experienced by many, economic development agencies across the state of Texas are ramping up their efforts to attract new business and new development projects. This month, Texas Real Estate Business focuses on the Bay Area of Houston to see how a corridor already known for its thriving medical and aerospace sectors is raising the bar even further. In addition, we take a look at the Fort Worth suburb of Keller and what it is doing to stand out in the already bustling D/FW Metroplex.
FRIENDSWOOD
The economic development office for the city of Friendswood, Texas — located halfway between Houston and Galveston — was created in July 1999 to pursue a diversified tax base in the city, which is mostly residential. Now, having been established for almost a decade, the goal of the office still lies in the idea of diversification — working to achieve a tax base consisting of 80 percent residential and 20 percent commercial. In fact, the city’s Comprehensive Plan was recently updated and approved by the city Council to facilitate this goal.
With a population of 36,000, the city would like to attract more mixed-use developments, as well as business parks that include wholesale, service-related business and light manufacturing. The city is targeting certain businesses with its efforts, including professional office development, medical facilities (minor care/outpatient), aerospace, hotels and more retail that caters to an affluent residential base.
The mayor, the city council, city staff and the Community and Economic Development Committee are focusing on areas of business recruitment for new primary business, retention, growth and development.
The city has adopted new incentives over the last year to help attract and retain these businesses. A neighborhood empowerment zone was approved for the downtown area that waives all city development, water and sanitary sewer impact fees, in addition to other incentives. The city also has a municipal grant program that has approved three grants totaling $180,000 over the last year that will produce over $16 million in additional taxable values, 111,330 square feet of new development and create/retain 100 jobs. The city is also updating their tax abatement policy to include special incentives for green building development.
Friendswood’s Community and Economic Development Committee (CEDC) recently launched a “Live Here Work Here” campaign in the city. The city is using billboards, our e-newsletter and our web site to remind residents and commuters that Friendswood is a great place to live and work. The city is also profiling local residents who live and work in the city within our e-newsletter and web site. As the campaign components launch and update, the CEDC anticipates increased interest in business relocations and openings in the city.
— Karen Capps is the economic development coordinator with Friendswood’s Community and Economic Development Committee.
Friendswood’s first green office building recently celebrated its grand opening. Jacob White Construction Company’s nearly $2-million project has a grass roof and water catchment system. The Leadership in Energy and Environmental Design (LEED) Green Building Rating System, the nationally accepted standard for design, construction and operation of green buildings, deemed this a Gold project – the second highest level of certification. |
WEBSTER
The City of Webster is small in terms of square miles (6.7) but mighty in terms of its position as the central business district of Bay Area Houston. It shares many things with other Bay Area cities, including a location midway between downtown Houston and Galveston, a thriving medical sector and the title of aerospace capital of the Southwest (due to NASA’s Johnson Space Center being located nearby). Webster itself also features the retail, dining, and entertainment capital of Clear Lake, which contains over 30 retail centers and 130 restaurants and entertainment venues.
The City of Webster created the Webster Economic Development Corporation (WEDC) in 1999 to grow the city’s commercial tax base. As a 4B city, the city retains a half-cent sales tax to promote initiatives designed to stimulate new and expanded commercial development.
One of the tenets of the WEDC’s economic development plan is to fund necessary infrastructure to foster commercial growth, and this principle is evidenced by the number of corridor projects undertaken by the WEDC since its inception. NASA Parkway, Texas Avenue, Live Oak and Orchard Street Extensions, and Rice Creek Lane constitute major roadway projects, while Magnolia Avenue Drainage, Bay Area Boulevard Mobility, and NASA Road One are additional projects that have served as catalysts for commercial development and economic sustainability.
The current economic downturn is a time when Webster’s Economic Development Team becomes more creative and innovative. Webster has many opportunities in retail, medical, bio-tech, office, hospitality, entertainment and especially aerospace.
Very exciting, cutting-edge aerospace development is occurring in Webster, as this city is home to Ad Astra Rocket Company, which is revolutionizing space exploration and transportation with its plasma technology and advanced electric propulsion systems. Further, Lockheed Martin’s Exploration Development Laboratory calls Webster home. The division is making history in the Constellation Program in the design, development, and testing of the Orion crew exploration vehicle.
— Betsy Giusto is the economic development director for the City of Webster.
The 251 and 253 Medical Center Boulevard buildings, located in Webster’s medical center, contain 48,000 square feet of medical and biomedical space each. These LEED-Gold certified facilities feature the largest living roofs in Texas. Currently, construction of 253 Medical Center Boulevard is under way with IDEV Technologies already signing a lease. The 251 Medical Center, which is complete, has won sustainability awards, and 253 Medical Center Boulevard received Webster and Harris County’s Green Commercial Building Tax Abatement Program in 2008. |
KELLER
Like many other cities in Texas, Keller established an economic development department several years ago to help attract business and work with existing businesses. Keller has about 40,000 residents and is located just northeast of Fort Worth in a strategic location near Alliance Airport and DFW Airport.
The current economy has affected Keller like other places — very few retailers and businesses are expanding. This downturn has allowed the city to focus on planning and getting its ducks in a row so we are prepared once things turn around. The Keller City Council and Keller Economic Development Board are very proactive on economic development.
One of the city’s most notable ongoing projects is the 340-acre Keller Town Center mixed-use development. Through a public-private partnership, including the creation of a tax increment financing district, the City of Keller and TriWest Enterprises developed the infrastructure, including streets, pedestrian trails, lakes and water features, and greenbelts. Keller Town Hall and Town Hall Plaza are both located within the project, as is Keller Pointe, the city’s aquatic and recreation center. When completed, Keller Town Center will incorporate municipal services and public gathering places with private uses in the forms of detached villas, luxury rental housing, ground-floor retail with office lofts above, restaurants, and entertainment venues that together will create a unique sense of community.
— Joey Grisham is the economic development director for the City of Keller.
Arthouse is a $30 million mixed-use development that is located within Keller Town Center. Nashville, Tennessee-based Southern Land Company developed the project, which includes 177 apartments above more than 37,000 square feet of street-level retail and 16 artist spaces. The building’s architecture complements the existing Keller Town Center, yet has an artistic flair with walls of glass and mixed mediums not typically found in this area. It has already garnered several national design awards. |
SEABROOK
The city of Seabrook is approximately 12 square miles with a population of approximately 11,000 people located 30 miles southeast of Downtown Houston in the Bay Area. Seabrook’s industries include hospitality, eco-tourism and marine. This region is home to the third largest concentration of pleasure boats in the United States, many of which are located in Seabrook marinas.
While the city does not have an all-encompassing economic development plan, it adopted the Seabrook Waterfront Development Plan, also known as the JJR Study, in 2006 in an effort led by the Seabrook Economic Development Corporation. The Plan addresses the redevelopment of the waterfront and details recommendations for the following five character districts: Old Seabrook, Todville Road, The Point, Marina District and NASA Parkway.
Some of these recommendations are already being implemented. Recently, the plan provided the foundation for the city to approve incentives for a developer to buy and consolidate waterfront parcels on Clear Lake for a mixed-use development with a public boardwalk. The rebuilding of Waterfront Drive at the Point, a location known for its seafood markets, is moving forward. Additionally, Seabrook has completed a Waterborne Transportation Feasibility Study and is ready to move forward with the restoration of a habitat island in Galveston Bay.
The current economic development downturn has caused a delay in projects until financing terms improve. Seabrook has taken steps to overcome this challenge such as the recent approval of a 1-year, no-interest loan to cover permit and impact fees for the purpose of encouraging immediate construction.
— Teresa Vazquez-Evans is the economic development director for the Seabrook EDC.
LEAGUE CITY
League City is located near the Texas Gulf Coast, just 20 minutes southeast of Houston. It is situated on the south shore of Clear Lake, directly on Interstate 45, and it is located in Galveston and Harris Counties. It is a rapidly growing city, with a present day population estimated at 68,504. Major sectors of the area’s economic base include aerospace (League City also features close proximity to Johnson Space Center), petrochemicals, healthcare, boating and visitor attractions.
City leaders created a formal economic development agency in order to diversify the tax base and attract companies that would encourage residents to work near their homes.
Over the past few years, the League City Economic Development Corporation has been responsible for attracting over $60 million in new investment and almost 400 new jobs. Its current economic development plan emphasizes recruiting corporate employers, business retention and expansion, recruiting regional retail businesses and visitor attractions.
The economic downturn has not significantly affected development efforts of the city. the city is increasing its marketing efforts and working on developing a dedicated source of funding. The greatest difficulty at this time is how the lack of financing has affected business wishing to expand.
— Doug Frazior is the economic development coordinator for the League City Economic Development Corporation.
In spring 2008, construction was completed for Marina View Building, a 120,000-square-foot, Class A, speculative office building. The city was using the project, along with generous tax abatements, as a way to attract corporate office users to League City. Meanwhile, BP America had been looking for office space in the region. Earlier this year, INEOS (which acquired several BP America assets in 2005) announced it had selected League City as the location for its newly formed Nitriles and Oligomers businesses, and leased approximately half of Marina View Building (the building is now fully occupied). Combined, these businesses created approximately 153 new jobs. In terms of measured objectives, the three INEOS companies will create a total of approximately 300 new corporate jobs. The value of the jobs, secondary jobs and new investment will generate an annual economic impact of over $46 million. |
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