COVER STORY, AUGUST 2007

STICKING TO THE PLAN
Across the state, economic development organizations are coming up with new ways to bring business to their cities.
Stephen O’Kane

The growth in Texas continues, and economic development organizations are figuring out ways to attract and retain business in order to satisfy the boost in population and jobs. These groups have clear-cut goals that include specific measures to increase awareness of each city’s potential. While each organization has its own way of reaching its set goals, the purpose is the same — to provide support and aid in attracting new commerce to the area.

Copperas Cove Economic Development Corporation

Located a little more than 80 miles north of the state’s capital city, Copperas Cove continues to grow with the rest of the state. As a result, the Copperas Cove Economic Development Corporation (Copperas Cove EDC) was created in 1990 by the voters of the city to establish a tangible avenue to bring in and retain new business to the area.

While some EDCs are responsible for an area that expands well beyond its city limits, Copperas Cove EDC is significant in that it only covers the city of Copperas Cove. The corporation can focus its sight more clearly than other larger EDCs, and the result is a specific and tailored plan.

Copperas Cove EDC has established five goals. The first is to enhance economic opportunities with Fort Hood, a military facility that houses the 1st Cavalry Division and the 4th Infantry Division, making it the country’s only two-division post. In addition to this, the corporation creates programs to solicit its target industries, support small business development, market the city’s image both internally and externally, and seek out ways to retain and expand business.

“We have a very aggressive business retention program, which involves one-on-one counseling and workshops in areas such as obtaining government contracts, marketing, customer service and merchandising,” says Monica Hull, marketing director for Copperas Cove EDC.

The company’s current marketing program focuses on retail recruitment through exposure in commercial real estate magazines and an extensive involvement with the International Council of Shopping Centers (ICSC). Copperas Cove EDC seeks out several types of retail, with everything from building material and garden-supply stores to ethnic and cultural food stores.

Currently, the largest project in the area is a 1 million-square-foot retail development, but no tenants have been named as the project is still in the planning stages. Also planned for the area is a 60,000-square-foot entertainment development, which will house several retail uses including bowling, theaters and arcades. In addition to the opportunities currently being planned, other retailers are taking root. A new coffee and smoothie shop, Cuppy’s, recently opened along Highway 190, as well as a 2,000-square-foot French Jeweler’s. Also along Highway 190 will be a 15,000-square-foot Walgreens, which is currently under construction.

While the retail industry is growing significantly in Copperas Cove, the Copperas Cove EDC’s primary targeted industries include military contractors, administrative facility and general office, as well as plastics, architectural and structural metals, and machine shops. The corporation applied for a federal Economic Development Administration grant last month to assist with the development of infrastructure in its business and industrial parks in order to increase their market viability.

“From a traditional economic development standpoint, our biggest attraction is the availability of relatively young, skilled and educated labor pool as well as a tremendous supply of available part-time and shift labor,” says Hull.

Odessa Development Corporation

Nearly 10 years ago, the Odessa City Council created the Odessa Development Corporation to manage new economic development sales tax funds and to aid in the process of attracting commerce to Odessa.

Odessa, a town positioned near Midland off Interstate 20 in western Texas, also is catering the growth in its area. Like Copperas Cove, Odessa has established an EDC to focus on bringing business to its area. Odessa Development Corporation (ODC) is similar to Copperas Cove’s EDC in that it covers one municipality. Achieving a similar result, ODC is able to set precise goals and take specific measures to reach those objectives.

Near the end of 1997, the Odessa City Council created the ODC to manage the new economic development sales tax funds and also to aid in the process of attracting new commerce. The corporation has devised several goals, all of which help bring this plan to fruition. One of the company’s goals is to create an expanded thriving economy that increases the number of jobs and provides investment opportunities through diversification of the economic base. The ODC also organizes and manages a comprehensive economic development process by developing an organizational structure that coordinates and supports economic growth efforts.

“An aggressive retention/expansion program has been in place from the beginning that realizes economic benefit for the city of Odessa, and the promotion of Odessa as a location for manufacturing,” says Neil McDonald, director of economic development for ODC.

The Odessa Development Corporation arranged a customized incentive package for Coca-Cola Enterprises, which opened a new regional distribution center in Odessa in February.

Two significant projects have taken root in Odessa due to the successful execution of its plans. Coca-Cola Enterprises opened a new regional distribution center in the area in February. The ODC arranged a customized incentive package for Coca-Cola, which included providing land in a business park, an economic development grant for the company’s relocation and an employee incentive to add new jobs. Also coming to Odessa this year is Quail Run Energy Center, an 825-megawatt, gas-fired combined cycle power plant that will be built in three separate phases. Ground broke last May and the first 275-watt phase came on line this spring. And Odessa is on the map for another possible power plant. The Department of Energy/FutureGen Alliance included Odessa on the list of possible sites for its $1 billion coal-fueled power plant.

According to McDonald, a slew of incentives make Odessa an attractive place for new and expanding business. Workforce training programs, abundant land and site section, access to Mexican markets, an international airport and Freeport exemptions are among the list of reasons why businesses are coming to Odessa.

“Odessa proudly boasts of high quality cultural and recreational facilities as well as healthcare and transportation often associated with larger cities,” says McDonald. “From manufacturing to retail, cultural activities to sporting events, big business to businesses that want to get bigger, Odessa now has it all.”

Little Elm Economic Development Corporation

Currently under development in Little Elm is Little Elm Town Crossing, a 23-acre, 150,000-square-foot center.

Little Elm is positioned just north of Dallas on Lewisville Lake and is experiencing the outflow of growth from its southern neighbor. Nearly 15 years ago, Little Elm’s City Council established the Little Elm Economic Development Corporation (Little Elm EDC) to satisfy the large growth that was taking place.

During the past 7 years, Little Elm’s population has grown 500 percent to 22,000. Jobs are on the rise as well in Denton County, with construction expected to grow annually at around 4 percent, educational and healthcare at 4 percent, leisure and hospitality at 5.45 percent and professional and business services at 5.4 percent, according to Pam Mundo, consultant to the Little Elm EDC.

Over the past 4 years, Little Elm has experienced approximately $97 million in new retail development. Currently under development is Little Elm Town Crossing, a 23-acre, 150,000-square-foot center, which will house 24-Hour Fitness, Hobby Lobby and other retailers.

Little Elm EDC recognizes the need to make its citizens aware of the potential of their city. But it doesn’t stop there. Little Elm EDC wants to share the city’s potential with a larger market in order to bring in new business. Therefore, the company has a precise set of goals and a plan to execute them.

According to Mundo, marketing Little Elm’s strengths and increasing the citizen’s awareness of the city’s potential is atop the list of goals for Little Elm EDC. In addition, the corporation implements programs to bring in tourism and capitalize on Little Elm’s convenient location as well as attract job-creating entities to provide new opportunities in light industry, office park development, planned mixed-use developments and tourism.

Galveston Economic Development Partnership

In 1999, as a response to the need for a community-based economic development effort, the Galveston Chamber of Commerce created The Galveston Economic Development Partnership (GEDP). The GEDP is a separate non-profit organization from both the city and the Chamber of Commerce, but continues to grow and thrive due to the area’s industry boost.

“The GEDP’s mission is to utilize broad-based community support to expand and diversify Galveston’s employment and tax bases,” says Lisa Elikan, vice president of project development for the GEDP. “Its primary responsibility is to handle business prospects with services such as site selection, incentive program analysis and assistance with zoning or permitting issues.”

The partnership, which solely covers the city of Galveston, is tracking approximately $2.4 billion in new investments on Galveston Island, which includes those projects currently under development. Retail accounts for nearly 53 percent of new businesses in the area and hospitality is not too far behind with 40 percent.

However, the organization is attracting lot of attention with regards to biotechnology due to the presence of the University of Texas Medical Branch (UTMB), the oldest medical school in the state featuring an 84-acre campus that houses more than 70 major buildings. According to a 2005 survey conducted by the GEDP, the UTMB is the largest employer in the city, providing more than 10,000 jobs and thousands more than any other company on the island.

The city is positioned on an island just southeast of Houston, giving it convenient access to the Gulf of Mexico. This makes the city a prime location for companies that service the off-shore oil industry. During the past 6 months, approximately 25 percent of Galveston’s expansion investment value falls in the maritime/port category, leading all other categories by at least 7 percent.

According to Elikan, the city’s location plays a major role in the industry boost it is currently experiencing. And by focusing on Galveston’s geographical strengths, the GEDP is following the right plan to keep industry on the rise.


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