center ECONOMIC DEVELOPMENT CORPORATION

center ECONOMIC DEVELOPMENT CORPORATION
ECONOMIC DEVELOPMENT ANNUAL REPORT
FY 2012
INTRODUCTION
Welcome to the initial Center Economic Development Comprehensive Annual Report. This document will capture all the
measurable activity of the Center Economic Development Corporation (CEDC) and report on the effect and outcomes of
those activities.
City of Center
4B EDC
4A EDC
Property Tax Relief
City of Center Sales Tax Allocation
The City of Center operates two independent sales
tax supported EDC’s. The CEDC collects 1/8 of the
City’s 2% local sales tax option and uses that money
in accordance with the laws of the State of Texas.
Essentially, the law states that this money must be
used for those projects that create primary jobs in the
community. One of the few exceptions to the jobs
creation requirement is targeted infrastructure.
The voters authorized the collection of this sales tax in
1996, by means of an election. The CEDC is governed
by a five member Board: Board President John Snider,
Mark Ivey, Bill Lloyd, David Chadwick, and Jim Forbes.
The day to day operations of the CEDC are managed
by City Manager, Chad Nehring and Economic
Development Coordinator, James Gibson.
The Board meets on an as-needed basis to adopt the budgets, approve contracts and projects and provide general
direction for City staff.
The following sections will describe the different projects, initiatives, and accomplishments of the CEDC in FY 2012.
ECONOMIC DEVELOPMENT AGREEMENTS
The CEDC negotiated, authorized, and signed two economic development agreements with local companies in 2012.
City staff developed a standard short form contract for assistance for these types of agreements. The first agreement was
with MONCO Motors. The CEDC reimbursed MONCO 50% of the cost to relocate overhead utility lines. MONCO was
making façade improvements to their building and the overhead electric line was blocking an architectural feature which
necessitated the relocation. In return, MONCO agreed to create and maintain two new full time positions over a two year
period.
The second agreement was with Dr. Mark Cline who started construction
of a large medical clinic on US Hwy 96 in 2012. Dr. Cline agreed to create
10 new positions upon completion and opening of the clinic. The CEDC
agreed to pay 100% of the costs of installing a public drainage pipe, plus
provide a rebate of the water and sewer tap fees plus the inspection and
permit fees and contribute to the cost of additional work to provide sewer
service.
Finally, the City completed the agreement with MURCO in conjunction
with the Center Industrial Park. The CEDC agreed to pay for 1/3 of the cost of the installation of the street and some on
the on-site utility extensions. The CEDC also paid 100% of the costs to extend water and sewer to the site. Finally, the
CEDC agreed to pay up to 5% of the increase in appraised value at the industrial park based on job creation. In sum, the
Industrial Park has 5 new businesses and has generated over 20 new jobs and added nearly $1.5 million of taxable value
onto the City property tax rolls.
TARGETED INFRASTRUCTURE
The CEDC is allowed by law to complete targeted infrastructure projects for
businesses which are not tied to job creation. The CEDC engaged in four
different targeted infrastructure projects in FY 2012. The first is the widening
of the intersection at Cotton Ford Road and Logansport Street.
The second project is very similar in that the intersection of FM 699 and FM
2468 will also be widened. These two projects will allow truck traffic a larger
turning radius coming to and from the Port-A-Cool, Center Fixture Operations
and the former Armstrong Industrial Complex plants.
The third project is in conjunction with the expansion of Shelby Savings Bank near Downtown Center. The building
expansion was going to encroach on Austin Street. Shelby Savings proposed the CEDC consider relocating Austin
Street to match up with the intersection of Elliot Street which would provide enough room for their expansion. Work was
completed on the street relocation in April 2012.
Finally, the CEDC agreed to contribute $1 million to the construction of the extension of Loop 500. Since the original
committment in 2003, the CEDC accumulated enough cash to meet that commitment. In 2012, TxDOT secured
state funding for the project and was ready to move forward. In June 2012, the CEDC issued the payment to TxDOT;
construction is scheduled to begin by November 1, 2012.
BUSINESS NETWORKING
One of the important elements of economic development is to create an
environment where business owners and managers can communicate about
common concerns. Staff was directed to resume the Quarterly Industrial
Breakfasts to facilitate that level of communication. The first breakfast occurred
in August 2011 and have continued each quarter since. Some of the topics
of the breakfast have included a panel discussion of the oil and gas activity in
Shelby County; the new Loop 500 extension; and workforce development issues
and assistance programs.
City staff also developed a partnership with the Shelby County Chamber of
Commerce to institute the annual East Texas Energy Expo held at the Windham Civic Center. The purpose of the Expo is
two-fold: to create a forum for local businesses to showcase their products and services to the oil and gas industry and to
showcase Center to the industry as a place to do business. As such, the CEDC is the primary underwriter of the Energy
Industry Appreciation Dinner, an event held the evening before the Expo.
MARKETING EFFORTS
The CEDC Board has directed staff to engage in additional marketing and outreach efforts to try to diversify the local
industrial base and to let the world know that Center, Texas, is a great place to live, work, and start a business venture.
In October 2011, the City contracted with Dave Masterson to develop a promotional video for the City. The CEDC
contributed half the cost of the project. The video can be viewed by visiting
http://www.youtube.com/user/Centertexas or by clicking on the QR code.
The CEDC Board approved the use of a tag line for all
CEDC marketing materials. The Board adopted “Texas
Sized Opportunities” as its marketing slogan.
Also the Board authorized the execution of a direct mail
campaign. City staff developed a database of those companies which may
be large users of locally produced natural gas and site selector consultants.
One mail out project presented the Board’s business philosophy that Center, Texas, is “One Big Business Park”. The
CEDC does not own any real estate OR developed industrial park. However, if an industry wished to locate here then the
EDC would be willing to negotiate assistance to provide utility service and perhaps land acquisition assistance. Hence
the entire City is, in essence, the Business Park.
From time to time, staff receives emailed prospect leads from the Governor’s Office, in conjunction with the Chamber,
asking if a community meets certain criteria that a business or site selector is searching for. Sometimes Center does
not match well with the key criteria and sometimes Center matches very well. In FY 2012, City staff responded to the
following prospect leads: Project Parts, Project Tree Tank, Project Slip N Slide, and Project Independent.
The Board has also directed City staff to engage in retail recruitment efforts to enhance the local retail base and solidify
Center’s position as a regional retail hub. Staff attended the ICSC retail trade show in San Antonio in October 2011 to
generate retail and developer prospect leads. Due to the slowdown in the oil and gas activity starting in early 2012, new
retail expansion in Center has waned. It is anticipated that once the price and/or demand of natural gas increases, then
retail investment interest in Center will also increase.
STAFF PROFESSIONAL DEVELOPMENT
City staff engaged in assorted professional development activities. Staff attended the Basic Economic Development
Course presented by TEEX in Austin in October 2011. Staff also attended the Texas Rural Challenge held in San Marcos
in June 2012. The City has also become a member of the Northeast Texas Economic Developers Roundtable where
regional economic development professionals gather to network and share ideas.
Finally, staff began an online economic development course in Entrepreneurship
and Small Business Development presented by the University of Oklahoma’s
Economic Development Institute. The Basic course and the Entrepreneurship
course are steps in the goal of attaining the Certified Economic Developer
credential.
BUSINESS VISITIATION PROGRAM
In 2012, staff began a program of systematically visiting the local major industrial partners in order to learn more
about their operations, develop relationships, listen to their concerns and see if there is a way for the EDC to provide
assistance. The businesses visited were: General Shelters, OMNI/EPIC, Tyson, Port-A-Cool, and Center Fixture
Operations.
The City listened to input received from the businesses and began work
on the intersections listed above. Also Center Fixture Operations wanted
to explore options of removing existing rail spurs and the City assisted by
making contacts with the rail company.
LOCAL ECONOMIC MEASURES
Population
2011 Estimate
2010 Census
5,229
5,193
Unemployment Rate
April 2009
(Not Seasonably Adjusted)
Shelby County
Region
(Nacogdoches, Panola, Rusk, Sabine, San Augustine)
State of Texas
Per Capita Income
2008
2009
2010
Shelby County
26,976
27,960
31,024
2007
2008
2009
2010
2011
April 2011
April 2012
6.4
8.4
7.7
6.3
6.5
7.6
7.3
6.3
6.8
8.1
7.7
6.5
Educational Attainment
Source: Bureau of
Economic Analysis
Annual Average Weekly Wages
Year
Shelby County
April 2010
Source: Census Bureau
High School Diploma
Bachelor’s Degree
2000
29.2
7.2
2009
2010
37.5
5.1
4,000,000
$535
$560
$577
$600
$605
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
Year
Total Number of Businesses Shelby County
2006
473
2007
493
2008
490
2009
483
2010
506
1,000,000
500,000
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
Total Annual Sales Tax Receipts
City of Center 2% Local Option
FY 2012
58.7
9.1