Lake Granbury Area Economic Development Corporation Annual

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2012
Lake Granbury Area
Economic Development
Corporation Annual Report
“PICTURESQUE LANDSCAPE WHICH NATURE SEEMS TO HAVE LAID OUT AND PLANNED AS THE MOST
HEALTHFUL AND APPROPRIATE HOME. . .” - THOMAS T. EWELL DESCRIBING HOOD COUNTY AREA
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TABLE OF CONTENTS
3 Letter from Randy Pearson, Board Chairman
4 Letter from Joey Grisham, Director
5 EDC Objectives and Metrics
7 2012 Highlights
8 EPA and Attainment
9 Why Primary Jobs?
17 Thanks to our Partners
MISSION STATEMENT: The Lake Granbury Area EDC is a public-private partnership that is
dedicated to attracting new jobs and businesses, working with existing companies, and serving as an information clearing house for prospects and the local business community. Our
ultimate goal is to help diversify the local economy and enhance the tax base.
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Dear Hood County Community Member:
On behalf of the Lake Granbury Area EDC Board, it gives me great pleasure
to present the 2012 EDC Annual Report. The EDC Board of Directors and
staff continue to develop and implement programs and activities that will
have a positive long-term effect on our community. And as you will observe
throughout this report, we are helping to diversify our local economy by
attracting more primary jobs that keep people in Hood County.
Economic Development is a very competitive game that has been made more
difficult with a challenging economy. That’s why we must continue to be
aggressive by giving our staff the tools and resources to be successful and
encouraging business attraction, retention, and expansion. Please note on
page 17 the many local entities and individuals that have chosen to support
EDC efforts of the past year. Their contributions and sponsorships helped
underwrite several important programs.
Our work would not be possible without our public and private supporters and
hard-working staff. I again ask each of you to get involved because Economic
Development is a team sport, and success only follows if we work together.
Please consider how you might help and give Joey Grisham a call to discuss
sponsorship and partner levels for the coming year. Together, we can.
Sincerely,
Randy Pearson, Chairman of the Board
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Dear Hood County Community Member:
I appreciate your support for the EDC and have thoroughly enjoyed my first
year back as Director. 2011-2012 has truly been a busy and prosperous year.
First, the EDC stepped up to the plate by lobbying the EPA to remain in the
Ozone Attainment status, saving Hood County citizens millions of dollars
in compliance costs. Hood County was one of only 2 U.S. Counties out of
47 that was successful in this effort. Staying in attainment also means that
Hood County will be in the mix for more economic development projects.
Second, we are close to landing a Short Take-off and Landing (STOL)
aircraft manufacturer in Hood County. They will initially create 50 jobs
and invest $10 million. Third, we developed new marketing materials and
updated our website for a fresh new look. Fourth, we added new programs
like the Workforce Development Luncheon to connect local industries with
available training resources at Weatherford College and the Texas Workforce
Commission. Lastly, we hired the Janus Economics Group to update our
target industry report and provide an economic development assessment that
will be the impetus for our new marketing plan.
You will see an even more aggressive campaign this next year to recruit new
industries and market Granbury-Hood County as a place to do business. Many
people only look at our area as simply a weekend destination or retirement
community, but we want them to look at us also as a place to do business!
We are well-positioned for more development and are on the cusp of great
things! Thanks again for your support—we cannot do this without you.
I would be remiss if I didn’t recognize the hard work and dedication of my
assistant, Marie Ferguson. Marie has been with the EDC since its inception in
2005 and represents us with class and professionalism. She has been critical
to our success and I appreciate her diligence and loyalty in good times and
bad. Thanks again for your work.
Best Regards,
Joey Grisham, Director
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WHAT WE DO:
•
BUSINESS RECRUITMENT- Attend targeted trade shows to attract
new businesses and market the community strategically to promote our
strengths.
•
BUSINESS RETENTION & EXPANSION- Work with our existing
companies to keep them here and hopefully see them expand their
operations and create new jobs.
•
MARKETING/NETWORKING- Attend targeted local, regional,
state, and national events to market Hood County and network with
allies, site location consultants, and business prospects.
•
INFORMATION CLEARINGHOUSE- Provide useful data and
information including demographics, maps, and business information.
•
LOCAL EVENTS/PROGRAMS- Partner with groups like the
Granbury CVB and Granbury Chamber of Commerce to offer programs
and information to businesses. The EDC also hosts an annual Economic
Outlook Conference in September.
EDC BOARD AND EXECUTIVE DIRECTOR
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2011-2012 METRICS
1,000
300
100
5,000
GIVEN OUT OVER 1,000 AERIAL MAPS
PROVIDED DEMOGRAPHIC DATA TO OVER 300 PEOPLE
RESPONDED TO MORE THAN 100 BUSINESS LEADS
FIELDED OVER 5,000 PHONE CALLS THIS YEAR
NEW AIRPORT RUNWAY WILL CREATE NEW
OPPORTUNITIES FOR GRANBURY-HOOD COUNTY
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2011-2012
At-a-Glance
OUTLOOK CONFERENCE —EDC hosts
an Annual Outlook Conference that features local, state, and
regional issues affecting the economy
TOURISM DAY —EDC partnered with City of Granbury and Chamber on this event that highlighted importance
and impact of the tourism sector on our local economy
WORKFORCE LUNCHEON —EDC will be
working with the Granbury Chamber of Commerce, Weatherford College, and the Texas Workforce Commission to host a
luncheon educating local employers on available resources
TARGET INDUSTRY ANALYSIS -EDC
retained the Janus Economics Group to update our target
industry report and make Economic Development recommendations
ICSC - EDC has a booth at the Annual International Council
of Shopping Centers Show to target retailers for the Granbury-Hood County market
HOOD COUNTY CLEAN AIR
COALITION - EDC initiated this coalition in response
to the EPA attainment issue. This group will be proactive in
finding common sense strategies and solutions
LADY’S DAY OUT - EDC spent funds to include
Granbury in this publication that highlights businesses on the
Granbury Square
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EPA VICTORY
One of the biggest victories for the EDC and community was remaining in the EPA’s Ozone
Attainment category. Back in December 2011, the EDC and Fort Worth & Western Railroad
were courting a $70 million shingles plant looking at Hood County and were close to being
named the finalist, however, the EPA announced its decision to place Hood County in nonattainment (meaning that Hood County did not meet the Clean Air Act guidelines). Facing
the holidays and only 30 days to respond to the EPA, the EDC quickly assembled a publicprivate partnership and hired Ray Clark
of The Clark Group. Ray was President
Bill Clinton’s Director of the White House
Council on Environmental Quality and
former Acting Assistant Secretary of the
Army.
Over the course of four months, Joey
Grisham and County Judge Darrell
Cockerham attended several meetings in
Dallas, Austin, and eventually Washington
D.C. where they landed a meeting with
Gina McCarthy, who is the #2 person with the EPA. After meeting with Dr. Al Armendariz,
former Administrator of EPA’s Region 6, it was apparent that Region 6 had recommended
Hood County for non-attainment, so a trip to D.C. was our last hope. At that meeting, Joey
Grisham and Judge Cockerham made the case that Hood County was not a big contributor to
the DFW ozone issues and stressed the negative economic impact on Hood County.
On May 1, Gina McCarthy called us to say that they kept Hood County in Ozone Attainment
and appreciated our positive and professional approach to the process. Just to put it into
perspective, the EPA only reversed its decision on 2 U.S. Counties out of 47—Hood and
Matagorda Counties. There is still much to be done, though. We created the Hood County
Clean Air Coalition and were one of the first counties in the U.S. to commit to the Ozone
Advance program, which is a proactive strategy to help reduce emissions. There are common
sense steps we can all take and you will be hearing more about this soon.
WE APPRECIATE THE SUPPORT OF EVERYONE INVOLVED—
IT WAS TRULY A TEAM EFFORT.
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WHY DOES THE EDC
FOCUS ON ATTRACTING
“PRIMARY JOBS?”
• More primary jobs would keep people here and they would spend more
on retail. Currently, half of Hood County’s workforce commutes out of
the county to work
• Manufacturing contributes 62% of the Research &
Development in the U.S.
• National average of 2.34 multiplier effect
• Creates spin-off and supplier jobs
• Manufacturing jobs pay about $54,000 a year, with benefits, 20 percent
more than the average compensation in the United States
• There are over 20,000 manufacturing enterprises in Texas
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WHAT ARE PRIMARY JOBS?
“Primary” or, as they are sometimes called, “export income” jobs are defined
as jobs which produce goods and services in excess of what can be consumed
in the local marketplace. This is what creates the flow of new wealth into the
community. An example of a business sector which does not create export
income is the retail sector. This is because the shopping centers located within
an area are typically spending money that has already been “created” by
primary employers in that area. It is not “new money.” However, the definition
of “primary or export income” employment changes depending on the
definition of the market.
WHAT ARE THE INDIRECT
IMPACTS OF NEW JOB
CREATION?
As a result of creating new jobs, the demand for goods and services generated
by the primary employer is increased and “indirect” or “spin-off” jobs are
created. These jobs do not create wealth. They are the product of “wealth”
created by primary employment. Generally, they are jobs like retailing,
lawyers, doctors, government workers, non-profit employment, etc. These
occupations provide services to primary jobs. They may also include jobs that
meet the required “input” needs of primary jobs.
NORTHEAST LOOP CONSTRUCTION
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DR. GAINES SPEAKING AT 2011 OUTLOOK CONFERENCE
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WHAT IS A MULTIPLIER?
Spin-off or indirect jobs are typically associated with the term “multiplier.”
The term “multiplier” comes from a series of economic calculations that
estimates the number of jobs required to meet the needs of one primary job.
The larger the multiplier, the greater the economic impact of the primary
job. Two things determine the size of the multiplier: average wage paid to
the primary employee and the amount and cost of “inputs” required for the
primary employee to accomplish his or her work.
A mature regional economy that offers a wide array of goods and services for
purchase by the primary job will also have a larger multiplier than a smaller
market. In other words, a diverse economy “holds on” to the primary worker’s
income longer. In an immature market the dollar exits more quickly, thereby
reducing the multiplier lacking many of the goods and services demanded by
the primary job.
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ECONOMIC IMPACT
OF NEW JOBS.
Company expands or
relocates manufacturing
facility to Hood County.
$10 Million Investment
and 50 new jobs.
Average Annual Payroll of
$3 Million Dollars
x 2.34
multiplier effect
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HOW DOES EDC WORK TO
ATTRACT NEW JOBS AND
FIRMS TO HOOD COUNTY?
WEB SITE | WWW.GRANBURYEDC.COM
PRINT ADVERTISING
RECRUITMENT TRIPS / TARGETED TRADE SHOWS
ECONOMIC BRIEFINGS
SITE SELECTION / FAMILIARIZATION TOURS
STATE OF TEXAS AND REGIONAL LEADS
COLLABORATION WITH EXISTING INDUSTRIES
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WHAT ARE THE MOST IMPORTANT THINGS THAT NEW
COMPANIES ARE LOOKING FOR IN A COMMUNITY?
ACCORDING TO DATA RELEASED IN 2012 BY AREA
DEVELOPMENT MAGAZINE, THE TOP 10 SITE SELECTION
CRITERIA ARE:
1
Labor
costs
2 State and local incentives
3 Highway accessibility
4 Availability of skilled labor
5 Energy availability and costs
6 Proximity to major markets
7 Tax exemptions
8 Occupancy or construction costs
9 Corporate tax rate
10 Availability of buildings
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2012-2013 PLANS
SOME OF THE TRADE SHOWS THE EDC WILL
BE ATTENDING INCLUDE:
• Aviation & Aerospace Manufacturing Show, October 8-10 , Alliance, Texas
• Permian Basin International Oil Show, October 16-18, Odessa, Texas
• International Council of Shopping Centers Texas Show, November 8-9, Dallas, Texas
• Well Intervention & Coil Tubing Conference, March 26-27, 2013, The Woodlands,Texas (Attending with Total Equipment & Services)
OTHER PROJECTS
• Updating aerial maps
• Retail Round-Up, March 2013
• Workforce Development Luncheon
• Annual Economic Outlook Conference
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THE LAKE GRANBURY AREA EDC IS A 501C3
ORGANIZATION THAT IS DEDICATED TO THE ATTRACTION,
RETENTION AND EXPANSION OF BUSINESSES AND
ENHANCING THE QUALITY OF LIFE AND STANDARD OF
LIVING FOR HOOD COUNTY CITIZENS.
THANKS AGAIN TO THOSE WHO SPONSORED OR
PARTICIPATED WITH THE EDC THIS LAST YEAR INCLUDING:
City of Granbury
Devon Energy
Hood County
First Financial Bank
Jerry Durant
First National Bank
Lake Granbury EDF
HEB
Granbury Chamber of Commerce
United Cooperative
Luminant
Central Texas Title
Jon Brumley
BBVA Compass Bank
Total Equipment and Services
Southwest Securities Bank
Diamond C
Envision Creative Services
Lake Granbury Medical Center
David and Nancy Gibson
Fort Worth & Western Railroad
Community Bank
Clark Real Estate Group
Town & Country Bank
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“THE WHOLE IS GREATER THAN
THE SUM OF ITS PARTS.”
- ARISTOTLE
LAKE GRANBURY AREA ECONOMIC DEVELOPMENT CORPORATION | GRANBURY, TX
JOEY GRISHAM, DIRECTOR
132 N HOUSTON, GRANBURY, TX 76048
WWW.GRANBURYEDC.COM
(817) 279-9991
JGRISHAM@GRANBURYEDC.COM