Annual Report

2013-2014
Annual Report
2013-2014
Annual Report
Business Attraction-Retention & Expansion
Industrial Development

Intercontinental Potash Corporation (ICP) –ICP received their final
environmental impact statement (EIS) and a Record of Decision from Bureau of Land
Management authorizing ICP to construct and operate its Sulphate of Potash Ochoa Project. ICP is currently
working with the world’s largest banks and industry partners to secure funding for the project. The EDCLC is
working with ICP to coordinate rail development efforts between Lea and Eddy Counties.
www.icpotash.com

Joule Unlimited - Joule completed their phase 1 small scale commercial and they are
beginning to produce product. Joule recently announced that their fuel products meet the
standards of the American Society for Testing and Materials (ASTM) for diesel and jet fuel. The
EDCLC assisted with meetings associated with the State Land Office, IRB’s, and the recruitment of
employees. www.jouleunlimited.com

International Isotopes, Inc. (INIS) – INIS received their NRC licensure during
2012. The EDCLC is working with INIS to extend the dates on their agreements
as they move forward with their project with an altered timeline. www.intisoid.com

Eldorado Bio-Fuels - Eldorado has a demonstration facility in Jal and hopes to commercialize their
production in the near future. The EDCLC has assisted Eldorado in trying to locate loans, grants,
and other opportunities for capital investment for the commercialization of the project as well as
assistance with the IRB process. www.eldoradobiofuels.com

Petroleum Industry Expansions – The EDCLC helped several service
companies of the oil & gas industry to find property or expand their
operations (such as Nova Mud) in Lea County. We actively supported the
efforts to not list the Sand Dune Lizard and Lesser Prairie Chicken as an
endangered species and organized meetings for the industry to present
valuable information to state agencies during various listening sessions.

Site Selector Tours -The EDCLC participated in two tours, Houston and South Carolina, to meet with
project brokers and site selection experts to promote Lea County. These visits are essential for building
relationships and familiarizing project developers with the benefits of Lea County. The site selectors represent
a wide variety of industries including manufacturing, energy, retail, logistics, distribution, warehousing, etc.

New Prospect Development – The EDCLC responded to over 250 requests and/or proposals for
information and hosted more than 20 site visits and project developer meetings, and was selected as a finalist
location for a Moly-99 manufacturing facility, several retail chain locations, hotel developments, and housing
additions.
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2013-2014
Annual Report

Rail Opportunities - Efforts have continued to work towards additional rail service to facilitate the use of the
UP and the BNSF railways to promote industrial development. Additionally, the EDCLC continues to work
with the railroad and potential companies to identify available land with rail access to locate projects
throughout the county.

Retention Efforts– The EDCLC has initiated retention and
expansion visits with local and regional businesses. These visits
allow us to identify potential expansion opportunities and
additional recruitment targets. The EDCLC has conducted
over 30 visits since the beginning of the program in February.
Retail & Housing

Housing Development -The EDCLC has worked to create
housing brochures to provide information for developers that detail the available areas
for building, municipal and county processes and incentive programs, and a list of area contractors. The
EDCLC has fielded numerous requests for data and land from housing developers and financing institutions.
There are several new housing projects, both multi-family and single-family that have opened in the past year
or are in the planning or construction phase.

Retail Development -The EDCLC used the Buxton Retail Study, which provided data to support the
development of national/regional retail and hospitality development. This study and the database provide great
detail about the retail trends and population groups in Hobbs and can be used well beyond retail applications.
The EDCLC attended the International Council of Shopping Centers (ICSC) conference and met with several
retailers. The EDCLC has assisted several new restaurants, retailers, and hotels to locate in the EnergyPlex. A
few of the new retail additions to Lea County include: Family Dollar, CVS, Tokyo Japanese Steakhouse,
Buffalo Wild Wings, Dicky’s, Starbucks, Taco Bell 2, Dollar General, Hilton Garden Inn, Baymont Inn &
Suites, Marriott TownePlace Suites, Zia Park Hotel, Value Place Inn, Tornado Car Wash, Advanced Auto
Parts, and Papa John’s. The EDCLC will continue to promote Lea County to potential retailers and participate
in the ICSC events.
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2013-2014
Annual Report
Marketing
Airline Marketing

A comparison of month over month shows that the
airline service is generally increasing in revenues, ridership, and load factors. Fourth quarter
2013 showed the highest average load factor of 64%.

The EDCLC contracted with a market outreach company to better understand the demand for flights to
Albuquerque, Santa Fe and/or Denver. The results of the study show there is not sufficient demand to support
additional demands at this time. The EDCLC continues to market our existing flights and explore the potential
for additional air service opportunities.

Marketing efforts have been focused on regional advertising in the media, billboards, and special events.
Additional efforts have been made to connect with Houston travel agents and the United call center staff to
inform them of the EnergyPlex and the flight schedule.

The EDCLC continues to market the daily flights between Hobbs and Houston as part of the City Pairs
Government Travel Program. This program is utilized by all Federal employees for travel across the United
States and abroad. Departments utilizing the program locally include FLETC, Department of Energy,
Department of Homeland Security, Department of Agriculture, and any other governmental agency that must
travel to this area.

A steering committee including members from Lea County, City of Hobbs, Lea Regional Airport, and the
EDCLC remains active and provides guidance on issues that impact commercial air service, including working
with the United team to continually improve the service provided at the Lea County Regional Airport.

The EDCLC supports and provides information and promotional items to field trips and other community
groups that tour the Lea County Regional Airport.

The EDCLC launched an aggressive social media campaign to increase awareness. The FlyHobbs website
averages nearly 2,000 visits per week and the FlyHobbs Facebook page has over 550 likes/followers.

The EDCLC started a new radio ad campaign that encourages local businesses to share their positive
experiences with the flights out of the HOB airport.
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2013-2014
Annual Report
EnergyPlex Marketing
EnergyPlex Marketing - The EnergyPlex can now boast projects in the areas of
oil & gas, nuclear, wind, solar, and bio fuels. The EDCLC and FlyHobbs
websites have been redesigned to contain greater information and ease for the
user. As part of the website update, a Building and Land Inventory System
was developed for the EDCLC website to help accommodate companies and
site selectors looking to locate their projects in Lea County. The EnergyPlex
was also marketed at various trade shows specializing in energy sectors throughout

the year.
Live-Work-Play Marketing

Workforce Marketing - The EDCLC began a new marketing
program to target the potential workforce. The first
phase of the Live - Work - Play campaign consists of
using short 45-60 second video clips of workers in Lea
County talking about who they are, what they do, and
why their community is a great place to Live, Work,
and Play. These video testimonials are hosted on the
EDCLC website and are being shared through the
various social media outlets. We will continue to grow
this campaign in the coming year.
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2013-2014
Annual Report
Legislative Relations
2014 NM Economic Development Summit
The EDCLC worked with the New Mexico Economic
Development Department to host the 2014 Economic
Development Summit in Hobbs in April. Nearly 200
community leaders and economic developers attended the
conference. The EDCLC help to organize the logistics,
receptions, speakers, and special tours during the Summit.
The EDCLC also invited a group of site selectors to
participate in a “speed—dating” event with conference attendees. After the
Summit, the group of site selectors were given a tour of the community and had dinner with the EDCLC
Board of Directors and representatives from the City of Hobbs and Lea County.

Involvement with State Departments

The EDCLC has established excellent relationships with NMEDD, the NM State Land Office and Land , and
the Energy, Minerals, and Natural Resources Department & the Oil Conservation Division. The EDCLC
continues to work with these agencies to assist new and existing companies in Lea County.

The EDCLC staff and board serve on a variety of state committees and organizations to support the
EnergyPlex and state-wide economic development efforts.
Interim Committees and Other Meetings

The EDCLC hosted receptions for the Legislative Health and
Human Services Committee, NM Energy Policy Listening Session and the Canadian
Consulate. The EDCLC will host the Education Committee in September. More information will be given
to EDCLC members in later editions of the PowerBytes newsletter and via email.
Data and Information to Legislators

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The EDCLC provided the Lea County legislators with specific data regarding municipal and county
demographics, statistics, key contacts, and marketing materials including an economic impact analysis and
EnergyPlex materials. The EDCLC also provided monthly updates on projects and EDCLC activities via the
EDCLC PowerBytes Newsletter. The EDCLC also met with newly elected officials to inform them of the
strategic direction of the EDCLC and its partners.
2013-2014
Annual Report
Community and Leadership Development
Certified Community Initiative

The EDCLC completed grant applications for the new CCI program for Tatum, Hobbs, Eunice, Jal, and Lea
County and collectively secured $18,000 annually for the next year to be used to market these individual
communities. Some projects include new brochures for Tatum, promotional materials for Eunice and Jal and
representation of all communities at retail and industry conferences.
50th Anniversary Celebration

The EDCLC celebrated its 50th year as an organization and recognized the economic
progress of Hobbs and Lea County through a variety of events. The EDCLC partnered
with SIFE/USW, Lea County Schools, and the Lea County municipalities to teach
children about economic development and city infrastructure systems by having them
create a model city that represents their town 50 years from now. A fall banquet celebrated 50 years of
diversification in the EnergyPlex, with key note speaker, Governor Susana Martinez. The event was attended
by 175 guests.
Staff Development & Training

The EDCLC values training and education to provide the highest quality economic development services for
Lea County. Staff participated in planning sessions for the upcoming year, skill improvement training courses,
Leadership NM, HR management courses and website maintenance training.
Power Hour Networking Events

The EDCLC changed its membership meeting format to be more conducive to networking and allowing local
businesses time to meet with local leaders and explore potential business expansion and partnering
opportunities. These Networking Events are scheduled at least quarterly or as opportunities arise.
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2013-2014
Annual Report
Lea County EnergyPlex Economic Indicators

The EDCLC has created a new Economic Indicator Report that will be updated
quarterly, and placed on the website and distributed to members via the PowerBytes
Newsletter. This report includes the most often requested information about largest
employers, gross receipts taxes, rig counts and more. Selected annual data from the
Economic Indicators has been included in this annual report.
Lea County Total Gross Receipts
$2,473,179,243
$2,396,830,763
$2,314,638,269
$2,223,740,667
$2,169,662,718
$2,020,980,749
$1,945,071,107
QTR 4
QTR 3
QTR 2
2013
QTR 1
2012
Air Passenger Traffic by Month (HOB)
3500
3000
2500
2000
1500
1000
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2011-12
2012-13
2013-14
2013-2014
Annual Report
Top 5 Industry Average Weekly Wages
Labor Market Statistics
2013-2014
2012-2013
33,142
31,672
1,470
4.4%
$940
31,222
30,018
1,204
3.9%
$932
Civilian Labor Force
Total Employment
Total Unemployment
Unemployment Rate
Average Weekly Wages
Industry
Manufacturing
Real Estate, Rental and Leasing
Mgmt. of Companies & Enterprise
Mining
Utilities
URENCO
Lea County
GEO
D&D Pipeline Construction
Workforce
2013-2104
1,193
608
431
423
411
394
389
368
362
302
267
254
Nova Mud
225
Zia Racetrack & Black Gold Casino
McDonald’s Restaurants
Baker Hughes
Willbros
Lin-Mar
WCS
BJ Service Company
216
215
183
181
174
171
168
Source: EDC of Lea County – updated 5/2014
- Data not available at time of printing
$1,619
$1,432
$1,374
$1,343
$1,297
$1,507
$1,365
*
$1,358
$1,314
Lea County Average Rig Counts
Top 20 Largest Employers
Hobbs Municipal School
Halliburton Energy Service
City of Hobbs
Lea Regional Medical Center
Ferguson Construction Company
Nor-Lea Hospital
New Mexico Junior College
Walmart Supercenter
2012-2013
Source: NM Department of Workforce Solutions – updated 5/2014
*Not in top 5 previous year—Transporting & Warehousing $1,314 was included on list
Source: NM Department of Workforce Solutions – updated 5/2014
Industry
2013-2014
Workforce
2012-2103
999
450
413
425
220
290
290
355
325
272
257
248
151
150
-
Month
2013-2014
2012-2013
May
April
34
36
24
25
March
35
20
February
41
27
January
40
29
December
November
October
September
August
July
34
33
35
29
33
31
31
31
33
37
28
25
Source: Baker Hughes – updated 5/2014
City of Hobbs Lodgers’ Tax
2013-2014
2012-2013
March
$128,364.77
$120,461.16
February
$114,198.07
$130,794.75
January
$96,534.58
$135,707.87
December
November
October
September
August
July
$120,548.05
$133,444.71
$118,721.03
$126,208.83
$129,798.14
$126,017.00
$118,601.71
$137,986.28
$121,578.15
$132,698.52
$135,374.97
$135,951.84
YTD
$1,093,835.18
$1,169,155.25
Source: City of Hobbs – updated 5/2014
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2013-2014
Annual Report
EDCLC Members
Certificate
Accounting & Consulting Group
IBEW Local #611
Nuclear Waste Partnership LLC
Bobby Shaw Realty
Intercontinental Potash Corp., USA
Occidental Petroleum Corporation
Color Printer
International Isotopes
PEMCO of New Mexico
Constructors Inc.
Johnson, Miller and Co.
Pettigrew and Associates, P.A.
Daniels Insurance Inc.
Joule Unlimited Technologies, Inc.
RMS Foods, Inc.
Del Norte Heights, Inc.
Lea County State Bank
Robinson and Associates Real Estate
Elliott & Waldron Title Co., Inc.
Lea Regional Medical Center
Schubert Construction
Enrichment Technology US (ETUS)
LEACO
Steel Depot
First American Bank
Leavell Insurance, Inc.
Tate Branch Dodge Chrysler Jeep
Forrest Tire Inc.
Lovington Economic Development Corp
URENCO, USA
Geo Group, Inc.
Maddox, Holloman & Kirskey PC
Wallach Concrete, Inc.
Goff Dairy
McVay Drilling
Watson Truck and Supply
HB Construction*
Me-Tex Oil & Gas, Inc.
Wells Fargo*
Hobbs News Sun
Newman & Company
Western Commerce Bank
Hobbs Rental
Nor-Lea Hospital
Xcel Energy
Hungry Horse, LLC
Nova Mud, Inc.
Zia Natural Gas Company
Zia Park Race Track Hotel & Casino
Associate
Angell Ranch
Lea Power Partners
Richards Energy Compression LLC
Dalco, Inc.
McDaniels & Associates, LLC
Stellar Inc.
Enterprise Rent-A-Car
McFadke
Windscape Apartments
Fairfield Inn & Suites
Noalmark Broadcasting Corp.—Hobbs
Waste Management of New Mexico
Gary Don Reagan, PA
Pioneer Bank
Wells Fargo
Lea Community Federal Credit Union
Rebecca Long Insurance
Youngs Home
Rental Self Service Storage
Public Partners
Lea County
City of Jal
City of Hobbs
Town of Tatum
City of Lovington
New Mexico Junior College
City of Eunice
Hobbs Municipal Schools
*Indicates a new member or increased membership level in 2013-2014
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2013-2014
Annual Report
2013—2014 EDCLC Board Members
Gary Schubert, Schubert Construction
Chair, Executive Committee
Sam Spencer, Lea County State Bank
Past Chair, Executive Committee
Monty Newman, Newman & Company
Vice Chair, Executive Committee
Finn Smith, Watson Truck & Supply
Secretary, Executive Committee
Paul Mason, URENCO, USA
Treasurer, Financial Management & Audit Committee Chair, Executive Committee
Tres Hicks III, Pettigrew and Associates, P.A.
Membership Committee Co-Chair, Executive Committee
Rafael Verde, Zia Park Racetrack Hotel & Casino
Membership Committee Co-Chair, Executive Committee
Bobby Shaw, Bobby Shaw Realty
David Pyeatt, Elliott & Waldron Title Co., Inc.
David Shaw, Nor-Lea General Hospital
Gary Don Reagan, PA, Gary Don Reagan, PA
Robbie Robinson, Robinson & Associates Real Estate
Steve Laflin, International Isotopes
Staff
Melinda Allen, President & CEO
Sally Tomar, Director of Membership & Corporate
Delbert Briones, Coordinator of Digital Media &
Services
Graphic Design
Vicki Roig, FlyHobbs Representative
Mariko Kudo, Administrative Assistant
10
Visit
200 E Broadway St., Suite A201
Hobbs, New Mexico
88240
Mail
P.O. Box 1376
Hobbs, New Mexico
88241
Call
(800) 443-2236
(575) 397-2039
Fax
(575) 392-2300
Email
[email protected]
Web
www.edclc.org
energyplexnm.com
Flyhobbs.com