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A Special Advertising Section of Business Facilities

Everything's Big in Texas

With an economy growing three times faster than the national average, Texas may be the state for your next big move.

By Donna Clapp

Upon receiving the Business Facilities' State of the Year Award in 2007, Texas Governor Rick Perry said, "Part of the overall success of the Texas economy is a result of corporate CEOs choosing to relocate and grow their businesses in our state because we have what they need to succeed: smart people, regulatory certainty, low taxes, and a quality of life unmatched by any other state."

Home to more Fortune 500 companies than any other state in the nation, Texas has created 1.2 million new jobs in the last five years. Astoundingly, more than half of all jobs created in the United States in 2007 were in Texas.

"Just about any way you cut it, Texas is the best place in the country to do business. We have worked hard to create a climate where people can come and risk their capital and know a good return on investment can be expected," Perry says. "We have reasonable regulations, low taxes, a balanced tort system, and an educated workforce-all the ingredients for success."

One of the biggest complaints the governor heard from companies was high property taxes, so two years ago he cut school property taxes by one third. Now Texas has one of the lowest tax burdens in the nation-28% lower than the U.S. average.

On the energy front, Texas is making investments in renewables-in fact, the Lone Star state leads the nation in wind energy production. The state also is investing in clean coal technologies. Texas has nuclear power plants-a significant expansion of an existing plant and entirely new plant-in the permitting process right now.

"Knowledge and capital are rapidly being deployed to parts of the world where the right combination of talent, technology, business climate, infrastructure, and markets converge," says Perry. "I believe Texas is that place, now more than ever."

 

BSL-4 Laboratory at the Southwest Foundation for Biomedical ResearchThe bioscience and healthcare industry is San Antonio's number one economic generator, and the BSL-4 Laboratory at the Southwest Foundation for Biomedical Research is the country's only privately owned maximum-containment laboratory- the safest type of lab in the world. (Photo Credit: City of San Antonio)

San Antonio: Recession Proof and Ready for Business

As the seventh largest city in the United States, San Antonio offers a variety of reasons, such as a thriving economy, affordable utilities, and an excellent quality of life, for businesses to consider expanding or relocating.

Forbes magazine recently ranked San Antonio the second most "recession proof" U.S. city, citing its solid employment figures and growing industries. The local economy is a healthy mix of business services, biomedical technology and research, a diversified manufacturing sector, a growing IT industry, and a thriving military community.

Businesses with corporate headquarters or major regional offices located in San Antonio include H-E-B Food Stores, USAA, Valero Energy, Wachovia, and Citibank. The city also is home to a thriving bioscience and healthcare community; with an annual economic impact of more than $15 billion and 113,000 employees, it is the city's number one economic generator.

In 2006, the manufacturing industry accounted for a $14.4 billion economic impact as local manufacturers employed more than 52,700 people to produce everything from specialty medical products and pharmaceuticals to concrete, steel, and automotive parts.

The city's IT industry is rapidly expanding, with Microsoft scheduled to open a $550 million data center in September. Additionally, Rackspace's 1,470 employees will settle into a new headquarters at the renovated 1.2 million-square-foot Windsor Park Mall building by 2009.

The city also has a strong military presence with a $13.3 billion annual economic impact and jobs for more than 190,000 people across Lackland Air Force Base, Randolph AFB, Port San Antonio (formerly Kelly AFB), Brooks City-Base (formerly Brooks AFB), and Fort Sam Houston, which is slated to be transformed into a hub for all military medical and training research by 2011.

San Antonio's locally owned and operated utility companies, CPS Energy and San Antonio Water System (SAWS) offer reliable and affordable electricity, gas, and water with rates among the lowest in the nation. The city's low energy costs are one of the key factors that led the Boyd Co. to select San Antonio among the top 10 U.S. cities to locate a secure corporate data center. Both utilities offer innovative resources to help businesses operate efficiently and remain competitive. SAWS recently announced that Microsoft will participate in its recycled water program to help cool down its computer servers. In addition, CPS Energy ranks number one in wind energy capacity among the nation's municipally owned utilities, according to the American Wind Energy Association's 2008 rankings of wind power leadership in the United States.

San Antonio offers a qualified workforce of more than 900,000 people. In addition to this labor pool, more than 126,000 students are preparing to enter the workforce from the 13 colleges and universities in the San Antonio area. Businesses also may benefit from the many services available to them at no cost through Workforce Solutions Alamo, the region's state-funded workforce partner. Some of these services include recruitment, screening and training of qualified applicants, participation in job fairs, and assistance in accessing tax incentive programs.

According to the National Association of Realtors, the median sales price of a single-family home during the first quarter of 2008 in San Antonio was $149,800. And, according to the Council for Community and Economic Research, San Antonio has a cost of living that is well below the national average.

San Antonio has an excellent quality of life, offering everything from professional sports, theme parks, and museums to nationally acclaimed arts and cultural organizations. The city is Texas' number one tourist destination with more than 20 million people visiting annually. Spectator sports include men's and women's professional basketball, minor league hockey, minor league baseball, a professional golf tournament, and a Class I thoroughbred and quarter horse racetrack. Other major attractions include the Alamo, Sea World, Six Flags Fiesta Texas, El Mercado, the Tower of the Americas, and the San Antonio River Walk. With its variety of incentives and world class charm, San Antonio continues to be an appealing place for companies to do business.

The 9,700-acre McGregor Industrial ParkThe 9,700-acre McGregor Industrial Park (Photo Credit: McGregor EDA )

McGregor: Central Texas at its Best

McGregor, TX, a central Texas community adjacent to Waco, is a thriving community of 5,500 residents. Founded in the late 1800s at the crossroads of the Cotton Belt and Santa Fe rail lines, McGregor has all of the attributes anyone could wish for: great weather, great resources, and friendly folks.

McGregor's school system boasts one of the best in Texas, and students have tested above average for the state and nation for the SAT and ACT exams. You can find branches of McLennan County Community College and Texas State Technical College, while Baylor University is just down the road in Waco. Six more colleges and universities are within easy commute and they all offer standard and advanced courses, plus specialized training. The Heart of Texas Workforce Board also offers special training and funds for individual corporate specialties.

The BNSF and Amtrak mainline runs through, with a downtown depot (the Cotton Belt is no longer running). Interstate 35 is just 10 miles from McGregor via U.S. Highway 84, a four lane divided highway that runs east and west. Waco Regional and Killeen Regional Airports service the area with direct flights to Dallas, Houston, Austin, and Atlanta.

The local labor force of 250,000 is ready and willing to work. Fort Hood produces approximately 1,500 veterans per month, most of whom desire to stay and work in the Central Texas area.

Recently, McGregor took a blow to its economy with the closing of a Naval Weapons Reserve Base, but looked upon it as an opportunity to reinvent itself, turning the entire 9,700 acres into an industrial park. With full utilities, paved streets, and a number of buildings, they began marketing the new McGregor Industrial Park for diversification of its industrial base. In a few short years it has attracted firms like Dell McGregor Business Center, Ferguson Enterprises, Insituform Technologies, Trane A/C, Smead Manufacturing, and Space Exploration Technologies.

A major part of McGregor's ability to attract Fortune 500 and other firms is its sincere dedication and willingness to assist in a company's needs. Incentives aside, and there are lots of them, the city of McGregor is ready and willing to listen to companies' desires and try its best to fulfill them. Hence they have over 1,200 employees in their industrial park with 12 companies and 25 manufacturers in the city. Not too bad for a small town in central Texas!

WaterLights DistrictThe new WaterLights Districtª is a planned $600 million, 1.9-million-square-foot, next-generation urban development. (Photo Credit: Griffin Integrated Marketing)

Pearland's Strategic Location Benefits Business

Location is everything and Pearland, TX is the prime location for business. Now the fastest growing suburb of Houston and 34th fastest in the nation, according to Forbes, Pearland spans 72.63 square miles.

Located along Highway 288, Houston's major transportation corridor to the south, Pearland is the perfect blend of big city business and small city living. Situated in both Harris County and northern Brazoria County, Pearland is ideally positioned minutes away from downtown Houston, the world-renowned Texas Medical Center, two major ports, and numerous airport systems.

Perhaps most impressive is Pearland's strategic proximity to the Texas Medical Center, said to be the largest concentration of medical facilities in the world. A mere eight freeway miles away, Pearland offers a degree of convenience that's proven to be a magnet for a growing number of health care suppliers, biotech organizations, support operations, and the thousands of skilled professionals they employ.

Among the many new developments choosing to call Pearland home are Pearland Town Center-a 750,000-square-foot, open-air shopping mall being developed by CBL & Associates; a Hilton conference center; a premier Class A office development; and the WaterLights District mixed-use development that will feature 42 larger-than-life statues of all the U.S. presidents.

During the past seven years, Pearland has doubled its population and added millions of feet of retail space. The city's leadership strategically managed growth with zoning and bond issues to pay for roads, parks, sewer lines, and other needs to keep up with the population surge. Last year, voters approved a $163 million bond to support new infrastructure and green space.

Pearland's growth attracts retailers that see an affluent base of shoppers in the city. Expected to have a population of nearly 96,000 in 2011 and 400,000 people within a 15-minute drive, Pearland has the coveted household demographics developers need to secure project financing.

A growing community means companies have access to Pearland's diverse and plentiful workforce. With the expanding business opportunities available, the prospect of working in and enhancing their community will be a compelling incentive to many future employees.

Pearland's new Bass Pro ShopsPearland's new Bass Pro Shops opened in October 2007.

To ensure the continued growth of a well-trained populace, the City of Pearland participates in the Northern Brazoria County Education Alliance. This partnership provides state-of-the-art training to students to meet the increasing needs of the diverse industries that support the region.

And, in 2009, the University of Houston-Clear Lake plans to open a campus in Pearland. The new campus will offer a convenient location for those looking to continue their college education and increase their professional development in subjects such as business and education.

As the preeminent suburb community to Houston, Pearland offers the convenience of a 15-minute drive to all of the benefits Houston has to offer. Pearland's corporate citizens benefit from Houston's vibrant economy, which spans a broad spectrum of industries including health care, technology, oil and gas, aeronautics, and manufacturing.

Second only to New York City, Houston is headquarters to 23 Fortune 500 companies. Commercially, Houston is ranked as a world city, and the area is a leading center for building oilfield equipment. Due to its large concentration of oil and gas expertise and experience, Houston is the energy capital of the world.

With a growth curve that extends well into the 21st century, abundant land and business facilities, a sound infrastructure, three foreign trade zones, and an ample and diverse workforce supported by educational programs, Pearland features all of the resources needed to operate a successful and profitable business.

Port Freeport Managing Director Phyllis SaathoffPort Freeport Managing Director Phyllis Saathoff (left) and Port Freeport Supervisor of Marketing and Public Relations Nancy Stephens.

Port Freeport: A Catalyst for Growth

Port Freeport currently ranks 13th among U.S. ports in international cargo tonnage handled. With a current channel depth of 45 feet, which soon will be widened and deepened, and just three miles from the Gulf of Mexico's open waters, Port Freeport offers more than 7,500 acres for future development. The port serves its customers through development and marketing of competitive world class navigational capabilities, technically advanced marine and multimodal terminal services, and port-related industrial facilities while achieving profits and creating jobs as an economic catalyst for the Texas Gulf Coast.

Port officials have embarked on their first major terminal development endeavor in four decades. "This new project is a direct product of Port Freeport's master planning effort and comes at a critical time in our port's history in which unprecedented growth is taking place," said Port Commissioner J.M. "Mike" Lowrey at the groundbreaking. "The Velasco Terminal will facilitate Port Freeport having a still greater positive economic impact upon the community we serve."

Executive Port Director A.J. "Pete" Reixach Jr. says the Velasco Terminal, which is to include the port's seventh cargo berth, involves the completion of an initial 800-foot backland development. The entire Velasco Terminal project is planned for a total of 2,400 linear feet of berth space with approximately 100 acres of backland development that could handle as many as 800,000 to 1 million 20-foot equivalent container units each year. The Velasco Terminal plan already has attracted substantial interest from throughout the world.

Culminating more than seven years of effort, the Freeport LNG (liquid natural gas) terminal on Port Freeport's Quintana Island property is in operation, having received its first vessel shipment of liquefied natural gas in April.

The $750 million project, developed by Freeport LNG Development L.P. and ConocoPhillips, already has been a generator of more than 1,500 construction jobs and will maintain a role as a significant force in the economic well-being of Port Freeport and Brazoria County, as well as in providing a ready source of eco-friendly energy.

The Freeport LNG receiving terminal and regasification facility, which entered planning stages in early 2001, now is in service on 172 acres on Quintana Island, where its twin white tank domes have quickly become a landmark for mariners and fishermen alike.

The terminal's first vessel call came on April 15 when a 908-foot tanker arrived from Trinidad and Tobago carrying 133,000 cubic meters of LNG. On May 9, a second vessel brought a similar shipment, with enough combined offloaded cargo to fill the two tanks to 80 percent of storage capacity.

"We're delighted to see these ships come in and the commissioning of our plant," says Bill Henry, vice president of Freeport LNG Development L.P. "We're really excited about bringing additional ships and LNG into Port Freeport."

By the end of 2008, wind energy units capable of producing enough electricity to power 2 million U.S. homes are anticipated to have moved through Port Freeport, according to officials from RBC Projects LLC.

Since April 2007, Houston-based cargo specialist RBC Projects has imported into Port Freeport wind turbines able to generate power for nearly 700,000 homes. The units have included 200 turbines of 2.1-megawatt capacity and 31 with 1.25-megawatt capacities, all made in India by Suzlon Energy Ltd., a major manufacturer of wind turbines.

"We are hoping to increase the shipments to nearly 500 turbines in 2008," says RBC President Prasad Menon. "In order to accommodate the increasing shipments, Suzlon has increased its acreage at Port Freeport from 15 acres to 25 acres.

"We are also anticipating an increase in ship calls from 12 ships presently to about 25 ships in 2008," Menon adds. "This increase in imports and terminal activity will result in more labor employment at Port Freeport." "It is truly exciting to play a role in the nation's efforts to utilize alternative, environmentally friendly energy," says Port Freeport Managing Director Phyllis Saathoff.

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