san angelo city council 10-15-13 development corporation annual report

COSADC CY 2012 Annual Report

Robert Schneeman, Interim Director of Economic Development

http://www.sanangelodevelopment.com/

Working with economic development partners, COSADC retains, strengthens and diversifies the job base of the community to ensure a vibrant business climate for San Angelo and the region.

Mission Statement

Evolution of COSADC1999 Ballot

Approved ½ cent sales taxApproved uses:

o Lake Nasworthy Dredgingo Coliseum and Fairgrounds projects othe promotion and / or development of new or expanding business enterprises

Term of financing limited to 6 years

Evolution of COSADC2004 Ballot

Approved Uses:oinfrastructure projects relating to the development of water supply facilities for water reuse othe use of fresh or brackish ground watero and the development and institution of water conservation programso Concho River improvementso parks and sports facilities improvements and the maintenance thereofo Fort Concho Museum

Term extended to 20 years

Evolution of COSADC2004 Ballot cont’d

o coliseum and fairgrounds improvementsodevelopment of an Affordable Housing Program

Term extended to 20 years 2010 Ballot

Approved Uses:oVoter approved projectsoAffordable Housing for 30 yearsowater related projects on an increasing basis from a minimum of 21% of total receipts increasing to a maximum of 72% of receipts as voter approved projects are completed.

Evolution of COSADC2010 Ballot cont’d

omaximum amount of total half cent sales tax receipts allocated for job creation and retention projects authorized under the act was set at 28%oCapital improvement and infrastructure projects other than water infrastructure and economic development requiring additional funding must be resubmitted to the voters

Economic Snapshot

Construction

Education & Health Services

Financial Activities

Information

Leisure and Hospitality

Manufacturing

Natural Resources & Mining

Other Services

Professional & Business Services

Public Administration

Trade, Transportation & Utilities

-1,000 -800 -600 -400 -200 0 200 400 600 800 1,000

-100

641

133

-788

731

-41

-44

137

233

313

723

New Jobs in Tom Green County, TX 2007 to 2013 (1st quarter, 3rd month employment)

Difference in employment between 1st quarter, 3rd month, 2007 and 2013

Indu

stry

Sup

erse

ctor

s

Economic Snapshot

Construction

Education & Health Services

Financial Activities

Information

Leisure and Hospitality

Manufacturing

Natural Resources & Mining

Other Services

Professional & Business Services

Public Administration

Trade, Transportation & Utilities

-30 -20 -10 0 10 20 30 40 50

-2

25

-21

-5

38

-14

3

8

38

0

-3

New Businesses in Tom Green County, TX 2007 to 2013(1st quarter, 3rd month establishments)

Difference in number of establishments between 1st quarter, 3rd month, 2007 and 2013

Indu

stry

Sup

erse

ctor

s

Economic Snapshot

Dec 2012 Balance Sheet

Marketing & Business Recruitment

Marketing & Recruitment by San Angelo Chamber of Commence

By Contract with COSADC

Annual Contract $225,000 plus specifically identified reimbursable expenses

Marketing & Business Recruitment

Trade Shows attended - 5 Association events attended – 10 Prospects hosted – 21 Adds placed in trade magazines – 6 Marketing materials sent to trade show contacts –

600+ Requests for Proposals - 49

Recruitment Projects

MedHab, LLC Medical Device Company – manufacturing & sales Job Creation – between 75 & 225 Capital Investment – Minimum $125,000 w/in 2 yrs Capital Investment or lease w/in 6 yrs – up to $2M Incentives include:

o Job creation - $7,929.00 per FTE - $1,800,000 max (must retain 6 yrs from date of incentive)oCapital Investment – 15% - $300,000 maxoReal Property Investment (w/in 6 yrs)- 52% - $575,000 maxoCode Compliance – 25% - $12,500 max

Recruitment Projects

MedHab, LLC Incentives (cont’d)oRent forgiveness – 3 years at 2009 W. Beauregard (CVCED Annex) at $1.00 per year

oAs of December 31, 2012 MedHab had received no incentives

oTo date MedHab has not received any incentives other than rent forgiveness

Recruitment ProjectsEthicon (July 2012) Medical Manufacturer 10th largest employer in San Angelo Expanding existing plant w/ Capital Investment between $16M

& $28M Retain / retrain up to 30 at risk positions Incentives include:

o 4 year City tax rebate decreasing yearly oCounty tax abatement to match City termsoJob retention at $5,000 per position retained and up to $10,000 for retraining - $300,000 max

Recruitment ProjectsHirschfeld Energy Systems (Martifer Hirschfeld) (Dec 2010)

Wind energy plant ( tower manufacturing)Capital Investment - $20M Ph 1 & $20M Ph 2Job creation – up to 225 FTEsIncentives include:

o Land Purchase - $280,000 o Construction Funding Incentive - $500,000oConstruction Funding Incentive 2 - $500,000oJob Creation Incentive - $6,000 per FTE up to 225 or a total of $1,350,000

Recruitment ProjectsHirschfeld Energy Systems (formerly Martifer Hirschfeld) (cont’d )

Incentives paid to dateo2010 – 47 FTEs / $282,000o2011 – added 134 FTEs / $804,000o2012 – added 50 FTEs / *

*Although the total salary paid for the year 2012 yielded the equivalent of 50 additional FTEs, total employment at the end of the year was less than at the height of employment for the year. When the 4th quarter payroll for the year was annualized, the equivalent rate was 155 FTE’s or 26 FTEs less than the total incentivized for the previous year. COSADC and Legal staff are currently working with the company to determine the long range employment goals for the company and a schedule for repayment of any funds due.

Recruitment ProjectsGlazer Wholesale Drugs (May 2010)

Land Acquisition – 10.757 Acres Facility Construction - $7,200,000.00Job Retention - 45 FTEs (FTE = $31,720.00 per year)Job Creation – 79 FTEs (FTE = $33,390.00)Incentives include:

o124 FTEs / $930,000 ($7,500 /FTE)oCity Property Tax Rebate - $204,235.40 to date

Glazers currently have 173 FTEs and have continually performed above their required level

Recruitment ProjectsBlue Cross Blue Shield of Texas (April 2009)

Total payroll of at least $12MIncentive - $37,118 per year for 10 yearsPaid to date - $111,354.00

Business Retention & ExpansionPer the Strategic Plan- “Implement a formalized Business Retention and Expansion Program (BREP) with regular outreach to existing San Angelo businesses”

Develop goals and performance metrics for retention and expansion program administered / conducted by the San Angelo Chamber of Commerce, w/ involvement by COSADC and other E.D. partners Develop an annual retention and expansion report which can be shared with local officials & residentsAddress issues identified by working with city, county, or state officialssurvey existing businesses through online surveys and in-person interviews every six months

Business Retention & ExpansionUse the program to probe supplier opportunities and to better understand and support the growth trends of local businessesVisit corporate headquarters of firms with major local operations that are not headquartered in San AngeloEstablish an Ambassador Program in which Chamber members as Ambassadors play an active role by engaging with new Chamber member businesses to encourage participation

Business Resource Center From Concept

To Completion

Business Resource Center

Description: A one-stop shop for business resourcesMission: To grow and retain local businesses by

providing exceptional business services and to strengthen San Angelo’s appeal as a place to do business

Goals:•Consolidate many of San Angelo’s ED agencies into one facility

•Create an improved environment for small businesses and the recruitment of businesses

•Increase the knowledge sharing, synergy, cooperation, and collaboration amongst the Economic Development Partners

Business Resource Center

Full Time Occupants

COSADC staffASU Small Business Development Center

(SBDC)The Business Factory (Concho Valley Center for

Entrepreneurial Development)

Satellite Offices

Chamber of CommerceDowntown San Angelo, Inc. Concho Valley Workforce Development BoardHoward College

Target Industries

Key Strategies

Goals of the Strategic Plan

Strengthen San Angelo’s infrastructure and enhance connectivity to other regions

Continue to invest in downtown San Angelo and the Concho

Fully capitalize on the unique opportunities provided by Angelo State University and Goodfellow Air Force Base

Tap into San Angelo’s innovative culture and leverage small business resources to support entrepreneurship and minority business development

Key Strategies

Goals of the Strategic Plan (cont’d )

Clarify and formalize the roles of San Angelo’s economic development partners to ensure that economic development is streamlined, transparent, and well-understood by all stakeholders.

Improve San Angelo’s image and ensure that marketing efforts highlight regional assets and focus on target industries

Ensure that workforce development and education programs are connected to the marketplace and support the retention of young professionals

Engage in specific strategies to grow existing and emerging target industry sectors

Development Process

Major Voter Approved Projects

Affordable Housing - $335,000 per year

Helping Hands - $53K, rehab of 25 housing units for elderly homeowners

Blitz - $150K, siding and painting of 48 housing units for low income homeowners

Gap Financing - $202,631, 5 new housing units for first time homebuyers


Concho River Improvement Project

$13.6M including grants


Hickory Aquifer Pipeline

$12M


Rio Vista Park - $636,400

(Now Jaime Pardon Memorial Park)


Livestock Barn- $1M


Municipal Swimming Pool Improvements- $3.2M


Airport Terminal Renovation- $5.9M ($500,000 COSADC funded for non-FAA funded items)


50th Street Extension (Lakeview Heroes Drive)

On the Horizon

Activation of “Advance San Angelo” Web Portal

Development of the Industrial Park

Business & Retention & Expansion Program

Possible Coworking Space in the Business Factory

Completion of the BRC finish out

www.advancesananglo.com

Board of Directors

Board of Directors 2012

left to right: Tony Villareal, 1st Vice President Chris Cornell, Randy Brooks, 2nd Vice President Scott Tankersley, President Larry Teague, Joe Terrazas, and John Bariou

September of 2012 Pedro Ramirez was appointed to the COSADC board with the departure of Joe Terrazas.

Board of Directors

Board of Directors 2013

left to right: Tommy Hiebert, Daniel Anderson, 2nd Vice President Tony Villarreal, President Scott Tankersley, President 1st Vice President John Bariou, Pedro Ramirez, Richard Crisp