| COVER STORY, AUGUST 2006
GETTING WHAT YOU WANT
Economic development organizations are finding ways to attract and retain the companies they seek.
Stephen O’Kane
With the population and job market growing throughout the state of Texas, many economic development corporations are taking the appropriate measures to keep up with the surge of development. Texas Real Estate Business spoke with leaders in Pearland, Weslaco, Sugar Land, Mansfield and Wichita Falls to find out how the organizations in these cities are handling the recent boost in the industry.
Pearland Economic Development Corporation
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The Pearland Economic Development Corporation has helped to bring new businesses to Pearland, Texas, during the past year. The Promenade Shops at The Spectrum, for example, is currently being developed as part of a 1,000-acre master-planned community in Pearland.
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Pearland, Texas, is a prime location for any business. It is located just minutes from Houston, which is the fourth largest city in the U.S. and has the nation’s second largest port. The Pearland Economic Development Corporation (PEDC) is right in the middle of the massive growth in this area and is taking the appropriate measures to reach its primary goals as an economic development company in greater Houston.
Established in 1995 through a half-cent sales tax referendum by the residents of Pearland, PEDC is focused on promoting, assisting and enhancing business growth by working with new and existing businesses. “The three primary goals include programs to attract capital investment and increase the tax base, increase and maintain the number of primary jobs within the city, and work to attract higher paying jobs for our residents, and continue to address the needs and interests of existing business,” says Fred Welch, executive director of PEDC. “To reach its goals, the PEDC developed BizConnect, a business retention and expansion program, to improve the city’s business climate by focusing on the needs of existing business.”
With Houston ranking Number 8 in the country for job growth, it is no surprise that the PEDC has attracted several new businesses to neighboring Pearland during the past year. “In Pearland, more than 450,000 square feet of new retail and service space was constructed in 2004 within the city limits and extra-territorial jurisdiction area of the city; sales tax revenues grew more than 15 percent in 2004; and there was a 7 percent increase in new jobs in 2004,” Welch says. Among the new companies that now call Pearland home are R&D Propeller, occupying 6,000 square feet of space, Houston Aircraft Instruments with 3,500 square feet and ShawCor, which moved its 25,000-square-foot plant to Pearland from Mobile, Alabama.
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Positioned less than 20 miles away from Houston, the city of Pearland, Texas, is seeing the results of the massive job growth in the area. As a result, Pearland is attracting many new businesses.
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The manufacturing industry, in particular, has been bringing many jobs to the area. PEDC has taken note, and it is focused on attracting certain business types such as plastics, food processing, packaging and the manufacturing and service sectors of oil field industries.
“Pearland is a thriving business-friendly community, offering competitive incentives for new business and support programs to address the needs and interests of existing companies,” Welch says. “With a growth curve that extends well into the 21st century, abundant land and facilities, a sound infrastructure, a foreign trade zone, an explosion of retail development, and a skilled workforce supported by educational programs, Pearland has all the resources to operate a successful and profitable business.”
The Economic Development Corporation of Weslaco
The population of Weslaco, Texas, measures only 30,000 strong but the trade area population, which is about 200,000, shows just how successful the city’s economic development efforts have become. The Economic Development Corporation of Weslaco, which was started in 1990 by voters, was created to help the surrounding community diversify its economy.
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The Economic Development Corporation of Weslaco assists new businesses by creating jobs, attracting investors and creating wealth.
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The Economic Development Corporation of Weslaco is successful in diversifying its economy by assisting businesses in creating jobs, attracting investors, creating wealth and making the community attractive to developers and investors. “The city of Weslaco is in the geographic center of an emerging market that is growing and expanding daily,” says Hernan Gonzalez, executive director of The Economic Development Corporation of Weslaco. “Weslaco is a clean, well-run community. Among its assets are a major healthcare cluster, a 4-year college, an excellent general aviation airport and a very welcoming and business-friendly community.”
This business-friendly community can be seen through the work that the Economic Development Corporation of Weslaco is currently involved with. “We try to attract businesses that serve the regional market,” Gonzalez says. “There are key logistics advantages in Weslaco to serve the Rio Grande Valley of Texas.” The companies that Gonzalez and the Economic Development Corporation of Weslaco have retained during the past year include Woodcrafters, a cabinet and vanity manufacturer, which created 350 jobs; International Wood, a wood finishing company that created 125 jobs; and Southern Mechanical Air Conditioning, a commercial Air Conditioning, Heating and Ventilation contractor that created 40 jobs.
“The Economic Development Company of Weslaco has a marketing plan and has created several sites that are shovel-ready for light industry,” say Gonzalez. “The marketing effort touts the economic advantages of the community’s central location to the regional market.”
Mansfield Economic Development Corporation
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Mansfield Economic Development Corporation has attracted Forest City Enterprises to Mansfield, Texas, where the company has slated nearly 1.2 million square feet of retail space for its Shops at Broad Street development.
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In 1994, the economic development department for the city of Mansfield was created, but it wasn’t until 1997 that the department spun off into its own corporation known today as the Mansfield Economic Development Corporation (MEDC). With the city having a population of 55,000 and a population increase of 11 percent to 14 percent each year, the MEDC is busy attracting industries and commercial developments to Mansfield.
“The MEDC focuses its efforts on the economic growth for the city of Mansfield, located in Tarrant, Johnson and Ellis counties in North Central Texas,” says Melissa Woodall, director of the MEDC. “Our goal is to attract desirable industries and commercial developments to the city of Mansfield, while retaining and assisting in the expansion of existing businesses.”
While the MEDC welcomes the development of medical, retail and industrial properties, due to the population growth and development currently taking place in Mansfield, the MEDC is narrowing down what it is looking for.“ Currently, there is a focus on attracting retail developers to support the growing population in Mansfield,” Woodall says. “In addition, the MEDC has placed an emphasis on attracting industrial and office parks that are primed to support any of the three medical centers that Mansfield has on the drawing boards.”
During the past year, the MEDC has retained several major companies in these areas, including Mouser Electronics and Forest City Enterprises as well as the three medical facilities. “Mouser Electronics has been located in Mansfield for many years, and within the last year has expanded its facilities from 173,000 square feet to 432,000 square feet. Mouser has also doubled its workforce,” Woodall says. “Mansfield has also attracted Forest City Enterprises, which has slated nearly 1.2 million square feet of retail space for its Shops at Broad Street development.” While the MEDC has recently focused on retail and office parks, it is still reaching out to the medical community. “The MEDC has attracted three state-of-the-art medical facilities, with the first, Methodist Mansfield Hospital, which will employ an estimated 700 healthcare professionals, scheduled to open in December,” says Woodall.
The availability and affordability of land throughout the city is one of the main attractions in Mansfield. This unique attribute is ideal for businesses looking to start from scratch as well as those looking to expand. In addition, with the close proximity to interstate highways and major airports and a strong job market, Mansfield is a natural choice for up-and-coming and existing companies.
Wichita Falls Board of Commerce and Industry
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The Wichita Falls in Lucy Park is one of the many attractions in Wichita Falls, Texas, that is drawing businesses and residents alike to locate in the area.
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In 1986, the Wichita Falls, Texas, chamber of commerce merged with an economic development organization to establish the Wichita Falls Board of Commerce and Industry. The economic development activities, however, began about a decade prior to that when Ray Clymer, a local Wichita Falls businessman, was sitting on an airplane and met a large manufacturing prospect that needed somewhere to relocate his business, Howmet Castings/Alcoa. “That is what really kicked off the economic development activities here,” says Kevin Pearson, vice president of economic development for the Wichita Falls Board of Commerce and Industry. “Howmet Castings/Alcoa is now one of our largest employers.”
Positioned almost equidistant bet-ween Dallas/Fort Worth and Oklahoma City, Wichita Falls contains a 13-county retail trade area for the surrounding region. Location and convenience are what Pearson believes make Wichita Falls attractive to businesses. “The biggest attraction is our location,” he says. “We have an excellent transportation infrastructure. We have four-lane highways going in and out in every direction — north, south, east and west.”
The Wichita Falls Board of Commerce and Industry recognizes the needs of the growing area and is prepared to address them. “Because we are a chamber of commerce coupled with an economic organization, we have three major functions that we serve,” says Pearson. “The first is economic development (business attraction and retention). We also have chamber functions. And then we have a large Air Force base here, Sheppard, that has about 14,000 permanent party personnel and civilian contractors. One of our main functions, because it is the largest employer in town, is to take care of Sheppard.” During the past year, the Wichita Falls Board of Commerce and Industry has also attracted the companies such as ATCO Structures, Metrotax and PPG.
But that is not all that the organization is accomplishing. A couple of years ago, Wichita Falls Board of Commerce and Industry purchased 550 acres of land that it is currently developing into a first-class business park. “What we’re doing is marketing our business park as having the highest amenities and the lowest cost of any second-tier market surrounding the metro area,” Pearson says. “We’ve got Phase I of the business park complete and it is selling very well.”
Due to the types of natural resources in the area, the Wichita Falls Board of Commerce and Industry knows exactly what kinds of businesses to attract. “We’re right in the heart of the oil patch in Texas,” Pearson says. “We have quite a bit of natural gas and for any company that needs processed natural gas in large quantities, we’ve got that. The other thing we have here in north Texas that a lot of other Texas, Oklahoma and New Mexico communities do not have, is water. We have invested heavily in a new reverse osmosis plant, and when it comes online in 2007, we’ll have 54 billion gallons per day access capacity. Anyone needing a reliable source of water is one of our target customers.”
Economic Development Department, City of Sugar Land
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Sugar Land Town Square, which offers outside dining, shopping and entertainment, is a popular shopping destination in Sugar Land, Texas.
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Boasting more than 3 million square feet of Class A office space, a population of more than 75,000 and an aggressive economic development program, the city of Sugar Land is an attractive location for businesses. Leading this aggressive effort is the city’s economic development department, which was created in July 1999 by the city manager at the time. “The department was created due to the city’s desire to provide services that developed and expanded our business enterprises and commercial tax base,” says Regina Morales, economic development director for the city of Sugar Land.
“The mission of the economic development department is to facilitate, through the use of appropriate resources, the creation of a sustainable business environment that promotes a consistent, quality economy that enhances the standard of living for our residents, and to provide the necessary financial resources for the city of Sugar Land through an expanded and diversified tax base,” Morales says.
The department is able to achieve this due to the marketing programs currently set in place. The responsibilities of these programs include business recruitment, business retention, new business development and business and community information, collection and distribution. The industries the department is trying to attract include energy, bio/nano technology, specialty electronics and financial services. This can be seen through the companies that the economic development department has retained during that past year: Thermo Electron, which occupies 150,000 square feet; Industrial Information Resources, occupying 20,000 square feet; Sunoco Logistics, which occupies 46,000 square feet; Unique Industrial Products, which occupies 100,000 square feet; and Advance Polybag Texas, occupying 150,000 square feet. “These business types were identified through a strategic study and plan for the city that fit with the city’s vision and location opportunities,” Morales says.
With a clear direction, the economic development department of Sugar Land is taking the appropriate action to cater to the existing and upcoming developments in the surrounding area.
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