Pecos Economic Development Corporation Building Upon Pecos’ Comparative Advantages April 2010 Rediscover Pecos Board of Directors Danny Rodriguez - President Leo Hung - Vice President Barry Naude -

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Transcript Pecos Economic Development Corporation Building Upon Pecos’ Comparative Advantages April 2010 Rediscover Pecos Board of Directors Danny Rodriguez - President Leo Hung - Vice President Barry Naude -

Slide 1

Pecos Economic Development
Corporation
Building Upon Pecos’ Comparative Advantages
April 2010

Rediscover Pecos


Slide 2

Board of Directors
Danny Rodriguez - President
Leo Hung - Vice President
Barry Naude - Secretary/Treasurer
Directors
Venetta Seals
Hugh Box
Wally Moon
Joseph Torres

Bill Oglesby- Executive Director
Esperanza Garcia – Executive Assistant


Slide 3

Executive Summary
Pecos is focused on 4 comparative advantages that build
upon Pecos’ strengths.
 Pecos will focus on building upon its
logistical/transportation advantages.
 Pecos will focus on attracting the renewable energy
industry (solar/wind/biofuels).
 Pecos will focus on supporting its TAMU centers of
influence via Texas AgriLife and Pecos Research & Testing
Center (PRTC).
 Pecos will focus on creating a Small Business Technology
Center to assist existing businesses and offer the
community a number of technology services.



Slide 4

Pecos is emerging as a logistics center anchored by
the 500-acre Montane Logistics rail-served industrial
park and the emerging industrial corridor west of
Pecos.
 Pecos will partner with the Pecos Valley Southern
Railway shortline to facilitate their growth and
expansion.
 Pecos is emerging as a prime site for the solar power
generation industry and algae-based, biofuels research
projects.
 Pecos is realizing significant investments by affiliates of
the Texas A&M University System in renewable energy
and federal government programs.



Slide 5

Pecos’ location at the intersection of IH-20 and US-285,
coupled with a Union Pacific main rail line, builds upon
our base of existing transportation infrastructure.
 Reeves County Commissioners Court has approved the
creation of a Rural Rail Transportation District (RRTD)
that will contribute to developing the transportation
infrastructure required to facilitate the development of
the 500-acre Montane Logistics Industrial Park and the
expansion of Pecos Valley Southern Railway.



Slide 6


Slide 7

The creation of a Rural Rail Transportation District (RRTD)
will facilitate the development of transportation
infrastructure to support emerging industrial corridors
throughout the City and County.
 The creation of a new tax increment financing (TIF) district
will entice Developers to invest along our gateways and
serve to enhance the aesthetics of IH20.
 The emerging Comprehensive Plan will facilitate the
prioritization of our limited financial resources and outline
clear plans for the future of the city.
 The emerging Historic District Redevelopment Plan and
Charrette being coordinated by the UTSA Institute for Rural
Development and the Department of Architecture &
Planning, should enhance the coordination and uses of HOT
tax in this strategic corridor of the City.



Slide 8

Logistical/Transportation Advantages












Pecos offers some comparative advantages due to its
transportation infrastructure—IH-20, US-285, Union Pacific
mainline.
TXDOT and Union Pacific are collaborating and investing almost
$500,000 on improving the rail crossing at IH-20 and County Road
(CR) 408 to begin in June 2010.
PEDC contracted with Parkhill Smith Cooper to create preliminary
design and cost estimate for proposed diamond interchange at IH20 and CR 408.
Reeves County is finalizing contract with Raba Kistner
Infrastructure to create a Rural Rail Transportation District (RRTD)
and to provide counsel on its planning and development.
PEDC considering recommending the creation of a Transportation
Reinvestment Zone (TRZ) to serve as one of the funding
mechanisms for the RRTD operations.
Other funding sources for the RRTD will be grants, rail user fees,
and loans.


Slide 9

IH-20/CR 408 Proposed Interchange


Slide 10

Attracting Renewable Energy Industry
~Biofuels
The PEDC is collaborating closely with the Texas A&M
University and its affiliates and partners, to attract new
research, investments and jobs to Reeves County.
 Reeves County is the site of ongoing algae-based
biofuels research and continues to be considered for
federal projects.
 State leaders are being encouraged to entice Texas
corporations to invest into biofuels research in Texas,
rather than outside the State (Colorado, California).



Slide 11


Slide 12

~Solar Power Generation





Reeves County is under consideration on a
number of solar power generation projects.
PEDC collaborating with Public Utilities
Commission (PUC), ERCOT and other State
agencies, to position Reeves County to
compete in attraction of this emerging
industry.
Existing electric transmission lines will
require some enhancements and the
extension of the existing grid to move
electricity to the urban markets.


Slide 13

Enhance TAMU Centers of Influence












TAMU has significant presence in Reeves County in Texas AgriLife campus
west of the City and in the Texas Transportation Institute (TTI) research
being conducted at the Pecos Research & Testing Center (PRTC).
TTI has teaming agreement with Applied Research Associates (ARA), a
premier research and engineering consultant conducting transportation
and US Department of Defense (DOD) research.
TTI also encouraged Tubular Rail, a Houston group developing commuter
and High Speed Rail systems, to consider 2-mile test track at PRTC.
Tubular Rail systems are under consideration by US DOT, TXDOT and
other transportation groups.
Tubular Rail technology, if proven, could lead to major testing facility at
PRTC and be impetus for creating a new transportation industry in US.
PEDC is also collaborating with a New York company to conduct some
radar research via at the PRTC a Federal earmark.
This research could generate some significant activities at the PRTC and
would encourage additional research.
PEDC will be enhancing partnership with each of these entities to
encourage greater coordination and collaborations with TAMU.
TAMU centers of influence lay the foundation for greater investments,
research and high quality job creation.


Slide 14

~Pecos Research and Testing Center
 PRTC Collaborations continue with the Texas Transportation
Institute (TTI), an affiliate of TAMU, and Applied Research
Associates (ARA), to grow high quality, technology jobs at the
Pecos Research & Testing Center (PRTC).
 A number of grants and other funding opportunities are being
actively pursued to facilitate the attraction of scientific and
engineering jobs to Pecos and the region.


Slide 15


Slide 16

Create Small Business Technology
Center (SBTC) in Historic District










Pecos was recipient of $98,257 Federal earmark from
Congressman Ciro Rodriguez in 2009.
Earmark designated funding to increase the presence of the Sul
Ross SBDC and the acquisition of office equipment to significantly
enhance the scope and quality of technology services available in
Pecos.
UTSA Institute of Rural Development is also intimately involved in
developing and assisting in the implementation of this small
business initiative.
Sul Ross SBDC in process of recruiting full-time Rural Business
Advisor (RBA) to be officed in Pecos to better serve small
businesses throughout Reeves County.
PEDC is pursuing Federal and State grants to redevelop a property
in the Historic District that would house the RBA, Main Street, a
FedEx Office style copy/mail center, and possibly a small business
incubator at this facility.
UTSA Department of Architecture & Planning in process of
coordinating a Historic District charrette that will provide further
impetus to this SBTC initiative.


Slide 17


Slide 18

Accomplishments


Over 20 new homes have been completed, adding $3 million to the
property tax base.



Many existing residences have also made improvements to their homes,
adding over $1 million to the tax base.



PEDC role in Offers to Purchase realizing greater returns on sales and
redevelopment of both residential and commercial properties.



Other housing development initiatives are under consideration to include
single-family and multi-family housing.



Collaborations on the development of the Montane Logistics Industrial
Park continue.



Reeves County has approved the creation of a Rural Rail Transportation
District (RRTD) that will provide impetus to the Montane Logistics
Industrial Park, Pecos Valley Southern Railway, and other rail and
transportation initiatives throughout Reeves County.


Slide 19










Texas Agrilife biofuels research under consideration by DARPA
(Defense Advanced Research Projects Agency), a Federal agency for
DOD research.
Pecos under consideration on a number of major renewable
energy projects that would attract hundreds of millions of dollars
of new capital investment and higher-skilled, higher paying jobs.
UTSA Institute of Rural Development investing substantial
resources into PEDC and is using City as example of successful
rural development.
Sul Ross SBDC is serving significantly more clients from Reeves
County, that will assist small business growth and development.
The PRTC is realizing significantly greater research activities,
increasing its presence as a research center.


Slide 20

Pecos Economic Development Corporation
Sul Ross SBDC Client List
May 2010

#

Company

Business Type

Contact

E/S

Proj Sales

P, UC, Comp

# BRE

1

West Texas Dream Homes

Residential, commercial contractor

Tony Briones

E

$1,000,000

Completed

2

Start up

Commercial laundry

Lupe Michaelis

S

$100,000

P

3

Start up

Soda/ice cream shop

Gene Pimm

S

$50,000

P

4

Keller Williams Realty

Real estate office

Linda Tobias

E

$100,000

P

5

Start up

Gym workout center

Gabriel Rodriguez

S

*

P

6

Merle Norman Cosmetics

Services

Marcia McCormick

S

$100,000

UC

7

Pecos Marketing

Promotional items

Toni Tillis

E

$50,000

Completed

8

Pecos Café

Coffee shop/restaurant

NA

S

$75,000

P

9

Donut Shop

Restaurant

Flores

E

$50,000

Closed

10 Pecos Arts/Loft

Art Gallery

Sandra Renteria

S

$250,000

Completed

11 Community Ventures Group

Community Development

NA

S

$500,000

UC

12 Start up

Hair Salon

Lorena Estrello

S

*

P

13 Texsand

Logistics

Farrell Arceneux

E

$15,000,000

UC

14 Gunther Salt

Manufacturer

Peter Gunther

E

$10,000,000

P

15 Start up

Personal services

Jessica Anaya

S

$50,000

Completed

16 SBTC

Business development services

Rob Tobias

S

$98,257

P

17 Crazy Lady Beads

Crafts

Kerry Santisteban

S

$100,000

Completed

18 Border Melons

Agriculture

Darin Borders

E

$1,000,000

P

19 Budget Inn

Hotel restaurant

Juliet Tien

E

$100,000

P

20 Juliet Tien

Retail shop in Historic District

Juliet Tien

S

$250,000

P

21 Start up

Landscaping

Santiago Garcia

S

$25,000

P

22 Crystal Reyes

Daycare

Crystal Reyes

S

$100,000

P

23 Eagles Daycare

Daycare

Tammy Ortega

E

$100,000

P

24 Start up

Downtown redevelopment

Olga Lopez

S

$100,000

P

25 Start up

Restaurant

Yolanda Hinojos

S

$100,000

P

6

26 Emma's Varieties

Retail shop in Historic District

Emma Gonzalez

E

$50,000

UC

7

27 Casas Construction

Residential, commercial contractor

Johnny Casas

S

$500,000

UC

8

28 Dale Finley

Public storage facility

Dale Finley

S

$250,000

P

29 Steve Valenzuela

Sports Bar

Steve Valenzuela

S

$1,200,000

UC

30 Jackson Shaw Development

GSA Development

Jason Nunley

S

$3,000,000

P

31 Barry Lewis

Gas/convenience store

Barry Lewis

S

$750,000

P

10

32 Custom Mufflers

Auto services

Jason Lopez

E

$200,000

P

11

33 Pecos Café

Café/bar

Jason Lopez

S

$100,000

P

12

34 Rita's Flowers

Flower shop

Mario Payen

E

$50,000

P

35 Party Things

Retail shop in Historic District

Elisa Lujan

E

$50,000

P

36 Artist

Retail shop in Historic District

Joe Swenson

E

$50,000

P

Existing

14

39%

Start up

22

61%

36

100%

$35,498,257

1

2

3

4

5

9

12 new clients


Slide 21








A number of small businesses have purchased and are
redeveloping properties in the Historic District.
A number of small businesses are considering business
locations in the Historic District, but will require
assistance in the reparations of the roofs.
UTSA Institute of Rural Development and Department
of Architecture & Planning should have finalized Historic
District Redevelopment Plan and Charrette by years’
end.
Greater regional, state and national collaborations and
partnerships with Federal, State and regional resources
are in place and providing greater resources to Reeves
County.


Slide 22

Sandra Renteria, Winking Owl Art Gallery

Emma Gonzalez, Emma’s Varieties

Weldon Brookshire, Classic Car Museum


Slide 23

Accomplishments
Pecos Economic Development Corporation May 2010

Projects Under Construction, Completed
Jobs
#

Project

Industry

Cap Inv

Ret/Created

Status
Completed

1

Best Western, Swiss Chalet

Tourism

$5,000,000

15

2

Comfort Suites

Tourism

$5,000,000

10

UC

3

Sandra Renteria

Retal/services

$50,000

2

Completed

4

Holiday Inn Express

Tourism

$5,000,000

10

Completed

5

Hampton Inns

Tourism

$5,000,000

15

Completed

6

Oak Tree Hotel

Tourism

$1,000,000

2

Completed

7

Single-family housing

Housing

$3,000,000

5

Completed

8

Rural Health Clinic

Healthcare

$5,000,000

20

UC

9

Pecos Economy Inn

Tourism

$1,000,000

8

Completed

10

TTI/Applied Research Associates

Research

$1,000,000

2

Completed

11

TAMU Biofuels grant

Renewable Energy

$1,000,000

2

Completed

12

Pecos EDC

Services

$100,000

1

Completed

13

Rural Rail Transportation District

Transportation

$25,000

*

Completed

14

TXDOT/UP Railway Improvements

Transportation

$500,000

*

UC

15

Texsand

Oil/gas

$100,000

1

Completed

16

Emma Gonzalez

Retail

$50,000

2

UC

17

Weldon Brookshire

Tourism

*

*

UC

18

Wal-Mart

Retail

$1,000,000

25

Completed

$33,825,000

120

19
20
Proposed Capital Investment

Taxing Entity

Existing Tax Base

$750,000,000

% Increase

5%

Tax Rate

Cap Inv

City

$0.73460

$248,478

County

$0.35325

$119,487

School District

$1.37000

$463,403

Hospital District

$0.38602

$130,571

Other

$0.00000

$0

$2.84390

$961,939

Total Tax Rate


Slide 24


Slide 25

Short Term Challenges
The City’s visual appeal and appearance along the key
gateways and Main Street.
 The lack of shopping, dining options producing
significant retail leakage to neighboring communities.
 The lack of multi-family housing options.
 The lack of workforce skills in the existing and emerging
workforce.
 The lack of a broad base of community leadership.



Slide 26

Long Term Challenges
Enhance workforce programs and the skill set of the
existing and emerging workforce.
 Create regional destination venues to complement and
build upon our existing and expanding tourism industry.
 Consider the development of new and innovative
financing mechanisms to facilitate the quality growth of
the city and region.
 Develop a business park focused on logistical services.
 Identify, develop, nurture leadership development
opportunities.



Slide 27

2008 – 2009 Midyear Budget Adjustments
2009 - 2010 Budget Amendments
As of May 1, 2010
2009

2010

2010 Chgs

% of Total

ED sales tax

$225,000

$180,000

$180,000

57%

PRTC lease

$40,000

$40,000

$40,000

13%

SBA grant

$0

$98,257

$98,257

31%

Property sales

$0

$0

$0

0%

Community Facilities grant

$0

$0

$0

0%

Reeves County interlocal

$0

$0

$0

0%

Rural Rail District/rail user fee

$0

$0

$0

0%

Special projects

$0

$0

$0

0%

Other sources of revenue

$0

$0

$11,000

3%

$265,000

$318,257

$329,257

103%

Projected Revenue

Increase admin hours from SBA grant

Sale of PEDC properties, interest, other

20%
Advertising
Local event sponsorships
Website, CGI video
Aerial maps

$1,000

$0

$500

$0

$0

$0

$0

$0

$0

$3,000

$1,500

$2,500

$4,000

$1,500

$3,000

Medical benefits

$9,000

$9,000

$9,688

TMRS retirement

$7,000

$7,000

$7,000

Taxes-payroll

$4,500

$6,250

$6,250

$0

$0

$0

$20,500

$22,250

$22,938

$15,000

$0

$0

$0

$0

$0

$15,000

$0

$0

Promotional items

Mugs, coasters, other marketing, branding
0%

Benefits

Payroll expenses
Sub-total

Increased costs

7%

Business Retention Expansion
SBTC rehab loan
Business Appreciation Mixer

0%

Business Development
Special projects
SBA grant
Community facility

$500

$2,500

$2,500

$0

$98,257

$98,257

$0

$0

$0

$500

$100,757

$100,757

32%


Slide 28

2008 – 2009 Midyear Budget Adjustments cont.
Business Attraction
Commercial incentives

$7,000

$7,000

$7,000

WTNB loan for PHA prop

$40,000

$32,000

$25,000

$47,000

$39,000

$32,000

$7,200

$7,200

$7,200

$7,200

$7,200

$7,200

IEDC

$350

$0

$350

ICSC

$100

$100

$100

TEDC

$350

$350

$350

$1,000

$500

$500

$1,800

$950

$1,300

Office supplies

$2,000

$2,500

$2,500

Office furnishings

$5,000

$0

$0

Misc office

$1,000

$0

$0

Car allowance

Refi via TLF

13%

2%

Dues and subscriptions

Other (Lions, Rotary)

0%

Office supplies

Tile work

Office rent
Office utilities

$5,000

$0

$0

$13,000

$2,500

$2,500

$6,000

$6,000

$6,000

1%

$6,000

$6,000

$6,000

$12,000

$12,000

$12,000

4%

$300

$500

$250

0%

$0

$0

$0

0%

Accounting

$4,500

$5,000

$5,000

Audit

$3,500

$3,500

$3,500

Legal

$12,500

$5,000

$7,500

Increased activity

Surveying

$3,500

$0

$5,000

ROW dedications, other

***

$0

$5,000

Structural assessments

Postage
Printing & publications
Professional services

Architect/engineering
Other prof svcs

$0

$0

$0

$24,000

$13,500

$26,000

4%


Slide 29

2008 – 2009 Midyear Budget Adjustments cont.
Repairs & maintenance

$2,000

$200

$1,000

0%

Increased activity

Telephone

$4,800

$4,800

$4,000

2%

Office

*

*

*

Cellular

*

*

*

IEDC (ED)

$0

$0

$0

ICSC (Retail)

$0

$0

$0

TEDC (ED)

$6,000

$3,000

$3,000

Other (CDFA, special projects)

$6,000

$5,000

$5,000

$12,000

$8,000

$8,000

$1,300

$1,200

$1,000

Board training

$0

$0

$3,763

IEDC conference

Board travel

$0

$0

$3,656

IEDC conference

$1,300

$1,200

$8,419

Executive Director

$82,000

$82,000

$82,000

Admin Asst

$15,000

$15,000

$15,000

$97,000

$97,000

$97,000

31%

Total Expenses

$262,400

$311,357

$326,364

100%

Surplus/deficit

$2,600

$6,900

$2,893

Travel & training

3%

Board meeting expenses
Board meetings

0%

Wages

Total Wages


Slide 30

Summary








Pecos is emerging as a leader in attracting new capital
investment and job growth in the TransPecos region.
There are many opportunities for expansion and
diversification of the economy.
Community must create a vision and prioritize these
opportunities, as a broad base of funding sources will be
needed for effective implementation and to assure
quality.
Focus will be on 4 key industry sectors and on creating
high quality, high paying jobs, creating community wealth,
and on investing into the enhancement of our quality of
life.
The PEDC is working to create a broad base of
business and community leadership.