2019 Annual Report
Building Foundations for Generations The work of the Bay Area Houston Economic Partnership cannot be measured in days, weeks, or months. Its efforts often reach across generations as you will read in this annual report. Initiatives created in Bay Area Houston are wide-ranging, and their effects are felt, and acted upon, in Washington, Austin, and throughout the region. BAHEP invites you to take a journey through the pages of this report to learn of its diverse activities that will positively affect the region, impacting you, your children, and your children’s children. You will also learn that economic development does not happen by itself. BAHEP is truly grateful for its members, community partners, and local, state, and federal officials without whose support our work would not be possible.
Table of Contents
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Bay Area Houston Economic Partnership 2020 Board of Directors
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Letter from the Outgoing Chair
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Letter from the Incoming Chair
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Letter from the President
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Building Foundations for Generations
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2020 Executive Committee
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egis la
tive
Trip
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Ex Officio Members of the 2020 Executive Committee
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BAHEP White Paper Delivers Urgent Message to Members of Congress on Impact of 2019 Federal Shutdown
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Current Members of BAHEP Board of Directors Proudly Sponsor Publication of 2019 Annual Report Membership
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Region Supported by the Bay Area Houston Economic Partnership
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Grand Parkway Initiative
Citizens for Space Exploration Washington, D.C., Trip 1
Bay Area Houston Economic Partnership 2020 Board of Directors BOARD OF DIRECTORS OFFICERS Chairman: Robert McAfoos, President, Barrios Technology Vice-Chairman: Charlie Stegemoeller, Vice President, Program Management, SAIC Secretary: Kenny Koncaba, CEO, Texan Bank Treasurer: Jennifer Bowers, Partner, Bowers and Sadler, LLP EXECUTIVE COMMITTEE Gale E. Burkett, President / CEO, GB Tech, Inc. Fernando De La Peña, President / CEO, AEXA Aerospace, LLC Mark Gittleman, P.E., President / CEO, Alpha Space Test & Research Alliance, LLC Dick H. Gregg, Jr., Attorney-at-Law / President, Gregg & Gregg, P.C. Marc Havican, President, Space City Films, Inc. W. Michael Hawes, D.Sc., Vice President / Orion Program Manager, Lockheed Martin Space Systems Company Kenny Koncaba, CEO, Texan Bank Robert McAfoos, President, Barrios Technology Mark Mulqueen, ISS Program Manager, The Boeing Company Victor Pierson, President / CEO / Chairman, Moody National Bank Greg Smith, Ph.D., Superintendent of Schools, Clear Creek Independent School District Charlie Stegemoeller, Vice President, Program Management, SAIC John Wilkins, CEO, CLC Properties EXECUTIVE COMMITTEE HONORARY CHAIRMAN Frans Gillebaard (1939 - 2013)
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EXECUTIVE COMMITTEE EX OFFICIO MEMBERS Jennifer Bowers, Partner, Bowers & Sadler, LLP Todd Caliva, CEO, HCA Houston Healthcare Clear Lake Mark Geyer, Director, NASA Johnson Space Center Fred B. Griffin, Founder & Chairman, Griffin Partners, Inc. Brenda Hellyer, Ed.D., Chancellor, San Jacinto College District Tim Kropp, Executive Vice President, MRI Technologies Ron W. Masters, President, AssuredPartners Lon F. Miller, Senior Vice President / General Manager, Jacobs Bernard A. Milstein, M.D., President, The Eye Clinic of Texas BOARD OF DIRECTORS Jamie Ballard, Senior Vice President, Veritex Community Bank Ira K. Blake, Ph.D., President, University of Houston-Clear Lake Jennifer Bowers, Partner, Bowers and Sadler, LLP Gale E. Burkett, President / CEO, GB Tech, Inc. Todd Caliva, CEO, HCA Houston Healthcare Clear Lake Nellie Chappell-White, President / CEO, JES Tech Mark Conrad, Owner, Express Employment Professionals David Dean, Senior Program Manager, S&K Global Solutions Fernando De La Peña, President / CEO, AEXA Aerospace, LLC Glenn Freedman, Ph.D., President, EduSafe Systems, Inc. Mike Furin, Vice President, My FlooringAMERICA Mark Gittleman, P.E., President / CEO, Alpha Space Test & Research Alliance, LLC Dick H. Gregg, Jr., Attorney-at-Law / President, Gregg & Gregg, P.C. Karen Gregory, Economic Development Regional Manager, CenterPoint Energy Gwen Griffin, President / CEO, Griffin Communications Group
Phil Griffis, President, The Law Office of Phil Griffis Trey Hall, III, Vice President / COO, The Rothe Companies: Houston Operations Darrin Hall, Director, Corporate and Community Affairs, United Airlines Marc Havican, President, Space City Films, Inc. W. Michael Hawes, D.Sc., Vice President / Orion Program Manager, Lockheed Martin Space Systems Company Brenda Hellyer, Ed.D., Chancellor, San Jacinto College District Jorge Hernandez, President / CEO, Bastion Technologies, Inc. Kenny Koncaba, CEO, Texan Bank Tim Kropp, Executive Vice President, MRI Technologies Leonard Levine, Technical Director, Gulf Coast Authority Arturo Machuca, General Manager, Ellington Airport & Houston Spaceport, City of Houston, Houston Airport System John Martinec, President, AeroSys, LLC Ron W. Masters, President, AssuredPartners Robert McAfoos, President, Barrios Technology Vernon McDonald, Ph.D., Senior Vice President, Government Services, KBR Brandon Michaels, President / CEO, JSC Federal Credit Union Lon F. Miller, Senior Vice President / General Manager, Jacobs Bernard A. Milstein, M.D., President, The Eye Clinic of Texas Mark Mulqueen, ISS Program Manager, The Boeing Company Sergio (Checo) Muniz, President, CYFOR Technologies, LLC Denise Navarro, President, Logical Innovations, Inc. Dan Newman, CEO, Houston Methodist St. John Hospital Douglas H. Owens, Lt. Gen., USAF (Ret.), CEO, Lone Star Flight Museum Laura Pennino, CEO, Pennino & Partners Victor Pierson, President / CEO / Chairman, Moody National Bank Ashlea Quinonez, Director of Government Relations, Memorial Hermann Health System Kevin Repa, Vice President / General Manager, All Points
Logistics, LLC Elizabeth Smith, Owner/Agent, Elizabeth Smith Life and Health Insurance Greg Smith, Ph.D., Superintendent of Schools, Clear Creek Independent School District Charlie Stegemoeller, Vice President, Program Management, SAIC John Wilkins, CEO, CLC Properties BOARD EX OFFICIO MEMBERS Chad Burke, President / CEO, Economic Alliance Houston Port Region Mary Alys Cherry, Editor and Publisher, Bay Area Houston Magazine Ruby Cubley, Individual Member Cindy Harreld DeWease, President / CEO, Clear Lake Area Chamber of Commerce Marcy Fryday, Marketing Director, Lakewood Yacht Club Mark Geyer, Director, NASA Johnson Space Center Fred B. Griffin, Founder / Chairman, Griffin Partners, Inc. Mike Shields, Executive Director, Baytown/West Chambers County Economic Development Foundation Jeff Sjostrom, President, Galveston Economic Development Partnership Steven Skarke, Vice President, Kaneka North America, LLC Mike Sullivan, Director of Governmental and Public Affairs, Group 1 Automotive, Inc. Hajime “Sam� Suzuki, Vice President, Administration, Kuraray America, Inc.
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Letter from the Outgoing Chair Now that my year as chair of the Board of Directors is drawing to a close, I am even more convinced that economic development has much in common with the healthcare industry as I wrote in my incoming chair letter one year ago. I have seen over and over again in my nearly 28 years in the field of healthcare that an effective leader must place the needs of people first. In economic development, decisions made on behalf of economic growth are not just about new chemical plants or retail centers, toll ways or townhomes. Every decision made affects people — their jobs, their families, their way of life now and in the future. Just as in our personal lives, however, fiscal responsibility and sound management practices form the foundation upon which all else is built. A child, a family, an organization, an institution, a company, or a community can only flourish when acting from a sound base. The Bay Area Houston Economic Partnership has been working for 43 years to help provide a sound economic base for this region. BAHEP can be found in the halls of Congress and in the Capitol Rotunda in Austin, at City Hall in Houston, in meeting after meeting with site selectors, its members, including the Council of Mayors representing our 14 member cities, elected officials, and media representatives. Economic development could reasonably be called a team sport, and it takes expert teams with dedicated players to determine the best way forward. I believe that BAHEP’s ability to achieve results can be attributed not only to its own skilled players but also to the many invaluable relationships it has 4
formed with the players on other teams at the local, state, and national levels. Economic development, just like healthcare, must evolve to meet the needs of the community. BAHEP’s decades-long support of human space exploration continues, and its work on behalf of commercialization of space is gaining momentum. Its efforts surrounding education and workforce development, in partnership with San Jacinto College, Houston Airport System, Port Houston, College of the Mainland, Texas A&M University at Galveston, University of Houston—Clear Lake, University of Texas Medical Branch at Galveston, and Texas Chiropractic College, have provided pathways to a stable and promising future for people of all ages in our region. For nearly a decade, BAHEP, in partnership with Texas A&M University at Galveston, has advocated to protect the region from the devastation of storm surge through the construction of a coastal spine system which has been used so effectively in the Netherlands and elsewhere around the world. BAHEP will continue this work, because it is in the best interests of the people, the industries in which they work, and the nation’s welfare. I am very proud and honored to have served on such an outstanding board as its chair for 2019 and to be associated with all the amazing people of BAHEP. Sincerely,
Todd Caliva CEO, HCA Houston Healthcare Clear Lake
Letter from the Incoming Chair The Bay Area Houston Economic Partnership provides the leadership and direction to stimulate economic development in our region. BAHEP improves the lives and well being of all of us living in the Houston/ Galveston region. I’m proud to have the opportunity to serve the region in the capacity of chairman. I look forward to 2020. As the incoming BAHEP chairman and the president of Barrios Technology, it is an exciting time. Johnson Space Center is the home to the ISS, Orion, and Gateway programs. Those programs have developed extensive commercial and international partnerships, and with them, many opportunities are created for economic development of our regional space economy. The International Space Station is providing the foundation for NASA’s space exploration initiatives. Commercialization of low earth orbit may be in its infancy, but our region is home to both global corporations and new startups that are expanding the space economy. The Houston Spaceport creates even more diversity for expansion. The region’s worldwide leadership in aerospace is a prime example of BAHEP’s ability to develop partnerships at the regional, state, and national level. BAHEP committee volunteers are the strength of the organization. Members engage in the organization and contribute their time and resources to our quality of life. Economic advancement across the focus industries of Healthcare, Maritime, Specialty Chemicals and Aerospace has improved the living standards throughout Bay Area Houston. BAHEP’s focus on the advancement of education has built a sound foundation for the continued development of our community.
BAHEP’s commitment to the improvement of our region is infectious. For a relatively small organization, I’ve been repeatedly amazed at how much gets accomplished. Bob Mitchell and his staff are able to motivate and empower a wide range of volunteer committees where members tackle initiatives relating to regional industries, small businesses, education, workforce development, legislative agendas, and more. The success of BAHEP is founded on the dedication and leadership of Bob along with his exceptional and equally dedicated staff. The organization is supported and advised by a Board of Directors whose expertise and achievements further contribute to the advancement of our region. Volunteers give freely of their time and talents to make this the ideal place to live, work, and raise our families. BAHEP’s work ethic and values reflect those of our communities – Bay Area Houston is truly a great place to be. As you read through this annual report, you can be proud of the accomplishments of BAHEP. Economic development is a race that is won with steady, consistent efforts over many years that result in solid partnerships and align the interests of diverse groups. Our 2019 chairman, Todd Caliva, had a great year. Let’s move forward together into another great year and continue to advance our region into the future. All the best,
Robert McAfoos President, Barrios Technology 5
Letter from the President When I officially joined the Bay Area Houston Economic Partnership and the world of economic development in June 2001, I had no idea how farreaching — both in distance and time — our work would be.
port and its work and that of our members surrounding the commercialization of space.
I became the organization’s president in January 2008, and I felt fairly confident that I had a pretty good handle on the ins and outs of economic development. Then Hurricane Ike hit this region that September, and I got a crash course in how to help the people and businesses of Bay Area Houston recover what had been lost.
As stated on the inside of the front cover of this annual report, the work of the Bay Area Houston Economic Partnership cannot be measured in days, weeks, or months. In any given year when we have a “win” or an initiative reaches the desired conclusion, very often the wheels on that particular action item have been turning for a very long time.
The following year we partnered with Texas A&M University at Galveston to promote storm surge protection for the upper Texas Gulf Coast. This is one of those initiatives whose completion is crucial for the health and well being of the region. We will continue our efforts to build the foundation of this important project knowing that the protection it will provide will safeguard generations of Texans. In the past decade we’ve also faced federal government shutdowns, massive flooding from storms, workforce development concerns as a large segment of the population enters or is about to enter retirement, education reform, and much more. We’ve continued to advocate for a fully-funded human spaceflight program for NASA while also supporting the Houston Space6
BAHEP has also worked many projects in support of the region’s chemical and manufacturing industries. We continue our years-long efforts on behalf of the maritime industry which have been incredibly successful.
Of course, we at BAHEP have formed many important and productive relationships over a number of years with industry partners and officials at the local, state, and federal levels. These partnerships have provided critical support for BAHEP’s foundational work. This work and these partnerships serve the best interests of the people, communities, businesses, institutions, and industries of Bay Area Houston. We are building foundations for generations to come. Best regards,
Bob Mitchell President Bay Area Houston Economic Partnership
2019 Annual Report
Building Foundations for Generations Opened in 1917, Ellington Field was one of 32 Air Service training camps established after the United States entered into World War I. Forty-six years later, the doors of NASA Johnson Space Center opened for business in September 1963. Aviation and aerospace have been foundational industries for this region for a very long time. When the Bay Area Houston Economic Partnership was founded in 1976 (known then as the Clear Lake Area Economic Development Foundation—CLAEDF), it soon recognized the importance of working to support these industries that are vital to the economic base of Bay Area Houston.
Preparing for the 21st Century and Beyond
City of Houston Council Member Mike Knox; Steve Altemus, president and CEO, Intuitive Machines; Bob Mitchell, president, Bay Area Houston Economic Partnership; Brenda Hellyer, Ed.D., chancellor, San Jacinto College District; Mario Diaz, director, Houston Airport System; Arturo Machuca, general manager, Ellington Airport; and Rob Lowe, Federal Aviation Administration (l to r), participated in the ground-breaking ceremony held June 26, 2019, to celebrate work on Phase 1 of the Houston Spaceport at Ellington Airport. The project scope includes providing streets, water, wastewater, electrical power distribution facilities, and fiber optic and communications facilities necessary to attract future development.
BAHEP has been working with Houston Airport System, San Jacinto College, and the City of Houston to develop the Houston Spaceport as a focal point for aerospace and aviation innovation that will lead the nation in the transition from a governmentdriven to a commercially-driven space program. To achieve this goal, valuable feedback from industry advised that there is a fundamental need for more local workforce development and training programs in advanced manufacturing methods. Throughout 2019, BAHEP Executive Director for Special Initiatives Dan Seal and Marketing Manager Jimmy Spence held meetings with Houston Spaceport General Manager Arturo Machuca, San Jacinto College Chancellor Brenda Hellyer, Ed.D., San Jacinto College Associate Vice Chancellor Sallie Kay Janes, Ph.D., and other members of the San Jacinto College leadership team to advance the idea of developing a workforce training center to be located at the Houston Spaceport. BAHEP assisted San Jacinto College in the selection of members to serve on its Aviation and Aerospace Industry Advisory Com7
mittee. The committee was empaneled to discuss feasibility factors, to determine curriculum priorities, and to calculate cost models. The result – San Jacinto College created its newest training center – the EDGE Center at the Houston Spaceport. Designed to offer the nation’s leading edge curriculum in advanced manufacturing training, the San Jacinto College EDGE Center is now the official education training partner for the Houston Spaceport. Online classes, beginning in January 2020, will offer these certification tracks: Aerospace Mechanical Technician, Aerospace Quality Technician, Composites Manufacturing Technician, Electrical Technician, Manufacturing Technician, Mechatronics and Industrial Automation Technician. Mechatronics focuses on the engineering of both electrical and mechanical systems and includes a combination of robotics, electronics, computer, telecommunications, systems, control, and product engineering. In addition to these programs, the college offers customized and individualized training based on industry needs. Finally, it is important to note that these advanced training disciplines create opportunities for cross-training into other industries, like oil and gas, which also require the latest in advanced manufacturing materials and technologies.
ture. The 86th Texas Legislature found BAHEP making multiple trips to Austin to advance support of the region’s interests. (In order to highlight BAHEP’s many activities throughout 2019 as succinctly and meaningfully as possible, portions of the report offer bulleted actions taken by the organization and brief paragraphs explaining a select number of the issues.) BAHEP Partners with Industry for Chemistry Technology Day at State Capitol BAHEP joined the Texas Chemical Council, the Association of Chemical Industry of Texas, and the Economic Alliance Houston Port Region for Chemistry Technology Day at the State Capitol on Feb. 26-27, 2019. More than 150 industry representatives from across the state went to Austin to meet with state legislators to discuss the importance of the chemical industry in Texas. BAHEP Assists Mayoral Delegation in Taking Its Message to Austin On Feb. 27, 2019, a Bay Area Houston group of mayors, a council member, a county commissioner, and presidents of two companies gathered in Austin to present its legislative agenda to mem-
We are very proud of this effort which has now created a win/win/win training equation for our resident students, for our valuable industry sectors, and for the San Jacinto College. This successful outcome represents the very epitome of ‘Building Foundations for Generations’ to come!
BAHEP Highly Active During 86th Texas Legislature BAHEP, its committees, and its community partners spend months preparing a regional legislative agenda prior to each session of the Texas legisla8
Members of BAHEP’s Council of Mayors met with Texas Sen. Larry Taylor, Rep. Mary Ann Perez, Rep. Greg Bonnen, M.D., Rep. Dennis Paul, and Rep. Mayes Middleton to discuss issues in relation to the 86th Texas Legislature.
bers of Texas’ 86th Legislature. This was an unprecedented initiative in the 42-year history of the organization to deliver a unified message on behalf of Bay Area Houston’s cities. BAHEP Leads Delegation to Austin to Advocate for Region’s Priorities BAHEP, along with its partners the Clear Lake Area Chamber of Commerce and League City Regional Chamber of Commerce, led a delegation of 91 travelers to Austin, Texas, on March 5, 2019, and held 140 meetings with state legislators, the lieutenant governor and governor to advocate for the surrounding area’s priorities. The meetings were a huge success, especially meetings related to public education, higher education, the Spaceport Development Corporation, and the Space Alliance Technology Outreach Program / Texas Aerospace Scholars Program. BAHEP Advocates for Creation of Taxing Authority for Coastal Spine Another important legislative agenda item that BAHEP took to Austin on March 5, 2019, was the need for the 86th Texas Legislature to create a taxing authority that can receive funds for the construction and maintenance of the Coastal Spine. BAHEP Participates in Galveston County Day at the Capitol BAHEP President Bob Mitchell and Executive Director for Special Initiatives Dan Seal led teams that held 10 meetings with legislative offices during Galveston County Day during the 86th Texas Legislature. The meetings, held on March 6, 2019, covered the legislative priorities for the county. Space Alliance Technology Outreach Program / Texas Aerospace Scholars Program Receive Funding Advocacy initiatives, led by BAHEP, resulted in the Texas 86th Legislature funding the Texas Aerospace Scholars (TAS) program and the Space Alliance Technology Outreach Program (SATOP)
Attending a reception at Space Day Austin were (l to r): Reps. Greg Bonnen, M.D., Briscoe Cain, Dade Phelan, Dennis Paul, Sen. Carol Alvarado, Rep. Charles “Doc” Anderson, BAHEP President Bob Mitchell, and Sen. Larry Taylor.
for the biennium 2020 – 2021 to the highest funding level in eight years. BAHEP President Bob Mitchell, Executive Director for Special Initiatives Dan Seal, SATOP Director Bob Payne, and Marketing Manager Jimmy Spence traveled to the State Capitol on Feb. 2526, 2019, along with City of Houston District E Council Member Dave Martin and NASA Johnson Space Center (JSC) officials, to hold 27 scheduled meetings with legislators, the governor, lieutenant governor, and speaker of the House, to explain the importance of SATOP and TAS to the state’s economy and educational system. State Rep. Greg Bonnen, M.D., was instrumental this legislative session in getting these two important programs placed into the Texas A&M University system as part of the Texas Engineering Experiment Station (TEES). For 100 years, TEES has performed groundbreaking engineering research and developed technology to address state and national problems. This provides a stable source of funding for SATOP / TAS into the future. 9
Bob Mitchell Testifies before House and Senate in Support of Spaceport Development Corporation Legislation BAHEP President Bob Mitchell testified before the House International Relations and Economic Development Committee on March 4, 2019, on the importance of the proposed legislation, HB 303 sponsored by Rep. Dennis Paul, authorizing the creation of a spaceport development corporation, specifically, amending Sec. 507.003 Authority to Create Corporation by Eligible Entities, to make municipalities with a population greater than 2,000,000 eligible to authorize the creation under this subtitle of a spaceport development corporation. Mitchell said, “The approval of HB 303 will facilitate and accelerate the continued development of one of our most important regional assets – the Houston Spaceport at Ellington Airport. … Being a spaceport development corporation brings many benefits including the ability to issue bonds for future development, the ability to tap into the Texas Spaceport Trust Fund, to charge for spaceport services, and to enter into contracts, just to name a few. … Having HB 303 in place will certainly expedite many exciting projects for Texas.” Subsequent to Mitchell’s testimony, HB 303 was passed out of committee on March 8 and approved by the House on April 4. Mitchell then testified before the Senate Natural Resources & Economic Development Committee on May 1, 2019, on the importance of the proposed legislation, HB 303. Subsequent to Mitchell’s testimony, HB 303 was passed out of committee, followed by a Senate vote of 30-1 on May 9, and signed into law by the Texas governor.
Media Interest and Public Relations Initiatives Work Together to Get Results Over the years, BAHEP has incorporated media campaigns, opinion pieces, letters of support, and white papers in its economic development initiatives. The following are representative of the media/public relations activities during 2019. 10
BAHEP Leads Media Campaign and Advocacy for 2020 Funding of Grand Parkway Letter to TxDOT BAHEP President Bob Mitchell wrote a letter on July 22, 2019, to the Texas Department of Transportation (TxDOT) Unified Transportation Program, stating, “I am writing this letter due to my overwhelming concern about the possible delay of the construction of the segments of SH 99 (Grand Parkway’s Segments B and C) which extend from I-45 South to Hwy 69 (59). Construction of Grand Parkway’s Segments B and C is essential as an evacuation route, a critical corridor for citizens’ daily use, an essential means to reduce traffic congestion, and to support on-going economic development in Galveston, Brazoria, and Fort Bend counties. I am urging you to take appropriate action to ensure that Grand Parkway’s Segments B and C, as well as the entirety of the Grand Parkway, are completed as quickly as possible. To not do so would be a great detriment to the well-being of a huge segment of the citizens who live and work in this region of Texas.” Media Campaign News outlet i45NOW held a telephone interview with BAHEP about the SH 99 issue on July 25, 2019. BAHEP had previously conducted a Facebook and Twitter campaign to encourage the public to write TxDOT in support of completing construction of the entire Grand Parkway. Its July 19th Facebook post reached 2,566 people on the first day alone. Within the first week, the post reached 7,278 people and had 1,249 engagements. TxDOT Public Hearing on 2020 Budget Mitchell, along with local elected officials and more than 200 citizens, attended the TxDOT Public Hearing on the 2020 Unified Transportation Program (UTP) in Austin, Texas, on Aug. 6, 2019. Mitchell and others testified on the need and rationale for TxDOT to keep funding in the UTP 2020 budget. Others providing testimony were Galveston County Judge Mark Henry, Galveston County Commissioner Ken Clark, and League City Mayor Pat Hallisey. The public hearing was the largest on record for TxDOT.
BAHEP President Bob Mitchell testifies at the TxDOT Public Hearing on the 2020 Unified Transportation Program. The Aug. 6, 2019, public hearing was the largest on record for TxDOT.
Letter of Support for Houston Spaceport Legislation, HB 303 A letter describing BAHEP’s support for Texas House Bill 303, allowing the creation of a spaceport development corporation at the Houston Spaceport, was written by BAHEP President Bob Mitchell to the House of Representatives International Relations and Economic Development Committee on March 1, 2019. Mitchell wrote, “Approval of HB 303 will facilitate, and accelerate, the development of one of the region’s most valuable assets, the Houston Spaceport.” Halting a Tank Farm BAHEP President Bob Mitchell’s 2018 op/ed in several local newspapers outlining the rationale for Magellan Midstream Partners, L.P., not locating its large hydrocarbon storage tanks on a site along Clear Lake City Boulevard between State Highway 3 and the Gulf Freeway paid dividends in 2019 with the company’s decision not to pursue this project. Mitchell cited the risk of having oil storage tanks directly beneath the final approach to Ellington Airport’s main north/south 35-L runway. The editorial further explained that the proposed tank farm is not compatible with this section of the Gulf Freeway that is being branded as the ‘Innovation Interstate’ where technology companies are rapidly being created to compete in the new digital, life science, and advanced manufacturing sectors.
Mitchell later stated that the support of Houston City Council Member Dave Martin was instrumental in Magellan’s eventual withdrawal from the project.
Op-Eds / Letters of Support BAHEP Sends Letter to Editor of Houston Chronicle on Cost of Coastal Spine Houston Business Journal Publishes BAHEP Op/Ed on Impact of Federal Shutdown Letter of Support Sent to Department of Commerce for Texas A&M University at Galveston Grant Proposal Letter of Support Written for Girls STEM Career Conference at UTMB Letter Sent to Texas General Land Office Regarding Additional Funding Sources for Grant Letter to Sen. John Cornyn States On-going Support of the U.S. Export-Import (Ex-Im) Bank Letter of Support Written for U.S. Tariffs on EU for World Trade Organization Violations United Airlines Receives Support from BAHEP for Increased Flights to Japan White Papers BAHEP White Paper Delivers Urgent Message to Members of Congress on Impact of 2019 Federal Shutdown (see page 23) Artemis Program - Establish the proven approach of a centralized Lunar Program Office and a dedicated, experienced Program Manager at the Johnson Space Center Initiatives Bay Area Houston Economic Partnership: Facilitates Governor’s Letter to President to Locate Space Force at Ellington 11
Encourages Members to Voice Concern to Congress on Government Shutdown Helps Publicize Open House for Furloughed NASA Employees Leads Media Campaign and Advocacy for 2020 Funding of Grand Parkway Serves on Panel on GHP’s Regions and Neighborhoods Program with NASA Focus Provides Letter of Support for Houston Spaceport Legislation, HB 303 Writes Letter to Texas House Speaker on High-Speed Passenger Train Line Facilitates ABC13, KTRK Television, with Shining Light on Bay Area Houston Speaks with KHOU Television about Impact of Government Shutdown Provides Input to Community Impact Newspaper for Article Regarding the New EDGE Center
Local, State, and Federal Meetings Build Relationships that Build Foundations The Bay Area Houston Economic Partnership hosted or sponsored many notable meetings during the year. These meetings inform, form and strengthen relationships, and create opportunities not only for the organization but for the entire region. Let’s journey through the meeting maze that 2019 offered. BAHEP Participates with U.S. Corps of Engineers and Texas General Land Office in Storm Surge Protection Meetings BAHEP President Bob Mitchell participated in the Galveston and Houston Community Working Group (CWG) meetings at Morgan’s Point City Hall on April 30 and June 5, 2019, to provide advice and guidance on the design of the coastal storm surge protection system. Members of the Texas General Land Office (GLO) heard comments from interested parties on the U.S. Army Corps of Engineers’ (USACE) tentative design. The GLO is using the 12
Congressman Brian Babin, DDS, of Texas speaks to the Citizens for Space Exploration travelers during the Congressional Reception held during the CSE trip in May. BAHEP held 391 scheduled meetings with members of Congress over two very long days.
CWG to communicate information to the public on the USACE Coastal Texas Study. Mitchell and BAHEP Executive Director for Special Initiatives Dan Seal also participated in the July 24, 2019, meeting of the CWG hosted by BAHEP. Attendees included the GLO, USACE, Morgan’s Point Mayor Michel Bechtel, Harris County Precinct 2 representatives Milton Rahman and Jacque Darbunne, and various other stakeholders. Topics for discussion included a San Luis Pass closure, the proposed Galveston Ring Barrier, sand only dunes, the size of the sector gates and width of the vertical gates, the salinity of Galveston Bay with the proposed gate structure, and the species chosen for the Habitat Evaluation Model. CSE Trip to Capitol Hill to Advocate for NASA Mission and Budget is Success BAHEP led a multi-state delegation on its 28th annual Citizens
for Space Exploration (CSE) trip to Capitol Hill on May 20 -23, 2019, to advocate for NASA’s missions and budget. The economic impact of the NASA Johnson Space Center (JSC) to the State of Texas is $2.34 billion; the majority of this spending is in the greater Houston region. NASA JSC directly employs 10,608 people, including civil servants and contractors, in Harris County. BAHEP held 391 scheduled meetings with members of Congress. This trip followed the February CSE trip to meet with freshman members of Congress reported below. By request of Sen. John Cornyn (far right), BAHEP President Bob Mitchell
BAHEP Leads Delegation to Meet with Freshmen (second from right) organized a roundtable discussion at Space Center Houston to discuss the importance of extending the funding for the InterMembers of Congress about NASA national Space Station to 2030. Also shown are Vernon McDonald, Ph.D., BAHEP’s Citizens for Space Exploration (CSE) Committee Senior Vice President, Government Services, KBR (far left), and Alessantraveled to Washington, D.C., on Feb. 11-12, 2019, to hold dro Grattoni, Ph.D., professor of Nanomedicine, Institute for Academic scheduled meetings with new members of Congress to ex- Medicine at Houston Methodist Research Institute. plain the importance of NASA to the nation’s economy and national security. The CSE met with 73 of the 111 freshmen their roles in the mission of the ISS, which brings great value in members or their staff members, which included members of imterms of research and discoveries to the nation. The roundtable portant science and appropriations committees. All meetings was organized by Bob Mitchell, president of the Bay Area Houswent very well with freshmen offices being more familiar with ton Economic Partnership, who also facilitated the discussion. NASA or were excited to learn more about human spaceflight Roundtable participants included Mark Mulqueen, ISS Program than in past years. BAHEP makes this trip to Capitol Hill every Manager, The Boeing Company; Greg Stonesifer, EVA Program other year to educate the incoming congressional members about Director / General Manager, Collins Aerospace Systems; Vernon NASA. McDonald, Senior Vice President Government Services, KBR; Alessandro Grattoni, Ph.D., professor of Nanomedicine, Institute BAHEP Facilitates Sen. Cornyn’s Roundtable on Extending for Academic Medicine at Houston Methodist Research Institute; Funding for Space Station Robert McAfoos, President, Barrios Technology; and Jeffrey Texas Sen. John Cornyn wants to extend the authorization for the Manber, CEO, NanoRacks. operation of the International Space Station from 2024 to 2030. He believes that the extension will help assure America’s international partners, as well as commercial partners, of the continued viability of the International Space Station (ISS) past 2024. In support of this, he held a roundtable discussion on Feb. 22, 2019, at Space Center Houston to hear from leaders in the aerospace industry as to how such legislation would help them to continue
Mulqueen said that Boeing and SpaceX are on the cusp of having commercial spacecraft ready to fly. Since NASA ended its Space Shuttle Program in 2011, NASA has relied on the Russian Soyuz spacecraft to get astronauts to the ISS. According to an article dated Oct. 15, 2018, by Jason Davis of NBC News MACH, “Russia
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has been steadily raising the price of S o y u z seats ... The agency last p urch a s ed Soyuz seats for $75 million apiece in 2017. NASA hopes to end its reliance on Russia in 2019, when Boeing’s Starliner and SpaceX’s Crew Dragon capsules begin ‘taxi’ flights to the ISS. Seats on those spacecraft are expected to cost about $58 million.” That timeline has been extended into 2020.
BAHEP’s members look forward to the organization’s informative General Membership Meetings. Shown left, Texas Railroad Commissioner Ryan Sitton speaks of Texans’ Opportunity to Lead. Next, Ric Campo, chairman of the Port Commission of the Port of Houston Authority, spoke to BAHEP’s members about the State of the Port. Shown below, BAHEP President Bob Mitchell visits with Pedro Garcia prior to Campo’s address. Garcia is manager of Port Houston’s Outreach Program.
Advancing Human Spaceflight Act Introduced On Feb. 27, 2019, U.S. Senators John Cornyn (R-TX) and Gary Peters (D-MI) introduced the Advancing Human Spaceflight Act, which would extend the International Space Station through 14
2030, direct NASA to develop a next-generation spacesuit to enable human exploration beyond low earth orbit, and establish the goal of permanent human presence beyond Earth as national policy. According to an article posted on his website, Sen. Cornyn said, “The only way to continue learning about the universe around us is to aim high and dream big. I’m grateful for the continued work of and input from Houston’s space community as we drafted this bill, which sets the stage for a new era of space exploration and to reassert American leadership in space discovery.” And additionally … LOCAL
BAHEP Sponsors Harris County Precinct 2 Public Forum on Storm Surge Protection BAHEP Co-hosts Houston Ship Channel Reverse Trade Show State of the Port General Membership Meeting with Port Commission Chairman Rick Campo Offers Insight into Port’s Many Functions State of the Counties General Membership Meeting with Harris County Judge Lina Hidalgo and Galveston County Judge Mark Henry Highlights Counties’ Activities
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Texas Land Commissioner George P. Bush Honored with Quasar Award for Coastal Spine Support Texas Railroad Commissioner Ryan Sitton speaks of Texans’ Opportunity to Lead BAHEP Hosts Texas 86th Legislative Update BAHEP Hosts Comptroller Glenn Hegar for Space Industry Economic Impact Study Presentation BAHEP’s Annual State of the Economy Luncheon Features Dr. Harold Hunt, Research Economist, Real Estate Center, Texas A&M University
FEDERAL Congressman Brian Babin Speaks about his Work on Behalf of Johnson Space Center BAHEP’s Council of Mayors Discusses Regional Issues with Congressman Babin BAHEP Hosts Sam Black, OMB Program Examiner, for Discussion on Space Exploration
BayTech Completes Wagner-Peyser Grant BayTech, the Bay Area Houston Advanced Technology Consortium, was formed by BAHEP and has built a network of partners across multiple industries and academia. George P. Bush Texas Land Commissioner
BayTech completed its 2019 followon Wagner-Peyser grant awarded through the Texas Governor’s Office, to provide fiber optic technician training to unemployed military veterans located primarily in the greater Houston region followed by placement into the telecommunications industry. Through BayTech’s training partner, Tejas Fiber, LLC, five 40-hour fiber optic technician courses were completed, and a total of 51 military veteran students were trained during 2019. Approximately 70 percent of the students were minority. On the last day of each Judge Lina Hidalgo training session, the students took Harris County
the Fiber Optic Association industry certification exam, and all 51 students passed the exam. Of the 51 students trained, the Wagner-Peyser grant funded 50 students within the grant funding, exceeding the contract goal of training 47 students, thereby reducing the cost per participant. The remaining student was selffunded.
Other Initiatives with Long-Term Effects
Judge Mark Henry Galveston County
Aerospace Advisory Committee For the first time in over 40 years, the mission statement of BAHEP’s Aerospace Advisory Committee (AAC) has changed to reflect the expanded interests of the region’s aerospace and aviation industries. The mission of the AAC has always been to support activities at NASA Johnson Space Center. The committee decided that, while continuing its support for JSC, it would broaden its scope to include growing the region’s role in commercial space and aviation. The AAC’s new mission statement says that “The Aerospace Advisory Committee’s mission is to advance and grow the region’s role in all facets of the aviation and aerospace industries, including human space exploration, through joint initiatives and focused advocacy.” BAHEP’s Council of Mayors BAHEP formed its Council of Mayors in order to provide an opportunity for mayors of Bay Area Houston cities to discuss issues 15
affecting their constituents and to formulate a regional approach in addressing them. During 2019, the Council presented its unified message through resolutions and letters that were sent to Texas legislators and signed by 13 of the region’s mayors: Unanimously SUPPORT - Senate Bill 2212 relating to partnership agreements between drainage districts and the Army Corps of Engineers that address critical drainage and flooding issues. Segment B of the Grand Parkway - The region’s mayors support TxDOT in taking any and all actions to complete its traffic revenue study, land acquisition, design, and construction of the Grand Parkway (SH 99). Unanimously oppose - SB 1152 and HB 3535 mandating that cities reduce use of public right of way fees levied on cable and telecom companies. Unanimously oppose - SB 29 and HB 281 which prohibit cities from spending city funds on issues of importance to local governmental entities. Unanimously oppose - Senate Bill 2 and House Bill 2 proposing a property tax revenue increase cap of 3.5%. Unanimously oppose - Bills related to a uniform election date and the elimination of May elections.
BAHEP Brings Home Four WINS During 2019 The continuing efforts of BAHEP to bring economic diversity and growth to the region resulted in four WINS during 2019: NanoRacks NanoRacks is the world’s first operational space station company providing goods and services in low-earth orbit — 22,000 sf expansion — 25+ full time jobs. BAHEP first started assisting in 2012 when the company was working out of a garage with three employees. The EDGE Center The San Jacinto College EDGE Center offers training and a pathway to careers in aerospace, aviation, and other industries. San Jacinto College is the official education training partner for the 16
Houston Spaceport. It is co-located within the Houston Airport System building with Intuitive Machines at Ellington Airport. True North Marine True North Marine has a full range of yacht sales & support services, dockside preventive maintenance, troubleshooting & repairs, equipment upgrades and installations — $4.5 million capital expenditures, 30 jobs — 1st maritime winner announcement since Texas legislature approved 2019 Texas Maritime Jobs Preservation Bill. Flight Safety International Houston Spaceport inks deal with its third tenant – a Berkshire Hathaway company — a world-class, global leader in pilot and maintenance training — investing $16 million, in expanded 125,000 sf facility — 80+ new jobs — up to 16 flight simulators.
Foundations Require Support Types of foundations are plentiful — building foundations, relationship foundations, charity foundations, foundations of civilization — and they all have one thing in common. Each will crumble without the proper support. As the Bay Area Houston Economic Partnership strives to Build Foundations for Generations, we recognize our valued BAHEP members, our member cities of Clear Lake Shores, Dickinson, El Lago, Friendswood, Houston, Kemah, La Porte, League City, Morgan’s Point, Nassau Bay, Pasadena, Seabrook, Taylor Lake Village, and Webster, and Harris County, Galveston County, the Houston Airport System, Port Houston, CenterPoint Energy, Southwest Airlines, and United Airlines whose ongoing support of BAHEP’s work on behalf of the region ensures that our efforts will continue. It is our hope that your journey through the pages of this report has shed some light on the world of economic development — our world — and that this furthers your understanding of just how interconnected we all are.
2020 Executive Committee Gale E. Burkett is the founder and CEO of GB Tech, Inc., which provides science and engineering professionals to government and industry. GB Tech serves clients in the aerospace, energy, homeland security, healthcare, and education sectors. In his role as chief executive officer, Burkett oversees new market development, acquisitions, longterm strategic direction, and the overall vision of the company. Under his leadership, GB Tech has earned numerous awards and recognition. Burkett devotes a large portion of his time and energy to civic and community affairs. He currently serves on the board of directors of several organizations including privately held and non-profit organizations.
Fernando De La Peña is president / CEO of Aexa Aerospace, LLC. He has 20 years of successful leadership in technology and engineering companies. A United States citizen, his lifelong passion for space exploration, combined with Aexa’s leading-edge expertise, plays a key role in his support for NASA. As an undergraduate engineering student, De La Peña completed and patented a spacecraft engine propelled by anti-matter, and received additional patents, for example, a space launcher employing magnetic levitation. He received a Discovery Channel Prize in 2010 for his work developing the Mexican Space Agency. De La Peña is the former president of the National Contract Management Association, NCMA Space City Houston chapter at NASA Johnson Space Center. NCMA is the world’s leading professional resource in the field of contract management. He is the former chairman of the Johnson Space Center Small Business Council. De La Peña also is the former chair of the Communications Committee of the Johnson Space Center National Management Association. He serves on the Bay Area Houston Economic Partnership Board of Directors, and he also served as the aerospace liaison of the Clear Lake Area Chamber of Commerce. De La Peña was elected this year as chief of the Infragard Defense Industrial Base SIG, a partnership between the FBI and members of the private sector. Mark M. Gittleman, P.E., is president and CEO of Alpha Space Test & Research Alliance. Alpha Space owns and operates MISSE, the first commercial test lab operating in the vacuum of space and the first woman-owned facility in space. Alpha Space provides commercial, turn key testing services on-orbit with MISSE and also develops custom space payloads, including a new lunar payload for NASA. Prior to joining Alpha Space, Gittleman was the executive vice president of Intuitive Machines, LLC, a product development think tank and lunar lander company, and before that he was a long-time executive with Oceaneering International, Inc. (NYSE: OII). He was the division vice president and general manager of Oceaneering Space Systems (OSS) and was instrumental in that division’s long-term success, starting with its founding. He later led OII’s world-wide subsea controls business. Gittleman serves on several advisory boards, including the Subsea Valley Technology Cluster in Oslo, Norway; the University of HoustonClear Lake College of Engineering and Computer Science; and BAHEP. Gittleman holds a BS in Ocean Engineering, a BA in Political Science, and is a registered professional engineer in the State of Texas. 17
2020 Executive Committee Dick Gregg, Jr., is president of Gregg & Gregg, P.C., a law firm which represents and advises clients in the areas of municipal, governmental, corporate, employment, real estate, and business litigation law. The firm acts as legal advisor or city attorney for multiple local governments. The firm’s attorneys also represent numerous homeowner associations, condominium associations, and town home associations. Gregg received a bachelor’s degree in government from the University of Texas at Austin where he also earned his law degree. Gregg’s areas of practice include public law, contracts, real estate law, business organizations, condominiums and cooperatives.
Marc Havican is an Emmy award-winning filmmaker and the founder and Chief Storytelling Officer of Space City Films, a nationally-recognized digital film, media, and live event production company. He has been a member of the BAHEP organization since 1995 and has produced the annual BAHEP Quasar Award Banquet for 19 years. Havican earned a BA in Communication from the University of Houston and began his career in the NFL as a video assistant on Coach Jerry Glanville’s Houston Oilers staff. He spent six years as a producer/director at NASA Johnson Space Center before leaving to build Space City Films into an industry leader in aerospace film and live event production. In 2002, the Houston Texans hired Havican to lead their NFL Instant Replay team. He has worked dozens of NFL playoff games and a Super Bowl.
W. Michael Hawes, D.Sc., is the vice president Human Space Exploration and Orion Program Manager for Lockheed Martin Space Systems Company. Dr. Hawes joined Lockheed Martin in July 2011 after concluding a 33-year career with the National Aeronautics and Space Administration (NASA), and was selected to head up Lockheed Martin’s Orion Program Office in 2014. Prior to joining the Orion Program, he served as the director for Human Space Flight Programs with Lockheed Martin’s Washington Operations organization. In this role he was responsible for representing the Human Space Flight/Space Systems Company organization with the Administration and the Congress. Dr. Hawes received a Bachelor of Science degree in Aerospace Engineering from the University of Notre Dame in 1978 and Masters and Doctor of Science of Engineering Management degrees from the George Washington University in 1996 and 2006 respectively. He is also a graduate in Program Management from the Defense Systems Management College, Ft. Belvoir, Va.
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2020 Executive Committee Kenny Koncaba is the CEO of Texan Bank, and co-founder, director, and CEO of Friendswood Capital Corporation. Kenny’s previous experience includes being the co-founder, chairman, CEO, and president of Family Bancorp, Inc., and its subsidiary bank, now known as Vantage Bank Texas. In addition, he served as a director, president and chief operating officer at First Community Bank, Houston, a National Bank which was sold to Wells Fargo Bank in 2005. Prior to his banking career, Kenny was employed for more than twenty years with the Texas-New Mexico Power Company, where he served in numerous management roles. Other business positions include being the founder/ CEO of Friendswood Energy Generation Company in 2011, a company which was sold to Quantum Energy in 2015. Kenny is currently a partner for HC Industrial Partners, a firm he co-founded in 2015, and also serves on the Texas State Securities Board. He is a graduate of the University of Houston—Clear Lake, where he was recently honored as a Distinguished Alumni. Robert McAfoos, president, Barrios Technology, has been with Barrios since 2001 and was named president in April 2016 after serving as a program manager for Barrios’ largest contracts. Prior to assuming the role of president, he was Barrios' Mission and Program Integration (MAPI) program manager, supporting the International Space Station (ISS) Program office. His role prior to MAPI was as the leader of a Barrios initiative which successfully established a business base in the Houston oil and gas market. He previously managed programs and contracts in the Mission Operations Directorate (Space Program Operations Contract), ISS Program Office (Mission Integration Contract), and the Crew Exploration Vehicle (Orion Project Integration Contract) with employees working in the technical disciplines of engineering, operations, flight control, training, configuration management, data management, and program planning and control. McAfoos has a Bachelor of Science, Electrical Engineering, from the University of Tennessee and a Master of Science, Electrical Engineering, from the University of Minnesota. He holds Project Management Professional and Lean Six Sigma Black Belt Certifications. Mark Mulqueen, The Boeing Company, is the program manager for the International Space Station (ISS) program, leading overall integration and operations of NASA’s orbiting laboratory. The ISS is the largest, most complex international scientific and engineering program in history. Mulqueen is responsible for providing sustaining engineering, expanding on-station scientific and technical research, and implementing vehicle enhancements. Prior to this role, Mulqueen served as deputy program manager for the Commercial Crew Program that is building Boeing’s Starliner spacecraft to take crews from United States soil to the ISS and other low Earth orbit destinations. Mulqueen’s previous positions include ISS deputy program manager; ISS Vehicle Program director; ISS Mechanical, Structural Extra-Vehicle Activity and Robotics director; Mechanical Design associate director; and ISS Power Module deputy director. Mulqueen joined Boeing in 1985 as a structural engineer on the Rockwell North American B-1B Bomber program. He has received NASA’s Distinguished Public Service Medal and a Rotary NASA Stellar Award for Space Achievement. Mulqueen has a Bachelor of Science degree in structural engineering from California Polytechnic University-Pomona, a Master of Science degree in applied mechanics from California State UniversityNorthridge, and a Master of Business Administration from the University of Phoenix. 19
2020 Executive Committee Victor Pierson is president, CEO, and chairman of Moody National Bank, a former mayor of Jamaica Beach, Texas, a past chairman of the Texas Bankers Association, and a director of the Independent Bankers Association of Texas. He serves on the board of directors of Moody National Bank, Moody Bank Holding Company, Moody Bancshares, Inc., Texas Independent Bancshares-Dallas, and Gal-Tex Hotel Corporation. Pierson is a past chairman of the United Way of Galveston, a past chairman of the Galveston Chamber of Commerce, a past chairman of the Galveston Economic Development Partnership, and chairman of the Southwestern Graduate School of Banking Foundation at Southern Methodist University. He is also a member of the Texas A&M University at Galveston Board of Visitors. Pierson previously taught accounting at Galveston College for over 16 years.
Greg Smith, Ph.D., became the Clear Creek Independent School District superintendent of schools in January 2008. He was named the Superintendent of the Year by the Texas Association of School Boards in 2012, named the top administrator by the Texas Classroom Teachers Association, Superintendent of the Year for the Texas PTA, and named the Galveston County Daily News Community Champion in 2013. Dr. Smith has led the Clear Creek Independent School District and its 5,000 employees on a journey to transform education in the 21st Century. Dr. Smith earned his bachelor’s degree in Elementary Education from Oakland University, master’s degree in Education Administration from the University of Houston-Clear Lake, and his doctorate in Education Administration from Texas A&M University.
Charlie Stegemoeller is a senior director with Science Applications International Corporation (SAIC). He serves SAIC across the NASA account including business development, strategic alignment, and program performance. Stegemoeller began his career as a civil servant at NASA in 1985 and supported Space Shuttle, Space Station, human exploration research and technology, and served as deputy program manager for the Constellation Program. He graduated from Texas A&M University and serves on the Texas A&M College of Engineering Advisory Councils for Entrepreneurship and the Industrial and Systems Engineering Department.
S. John Wilkins, III, has been a member of the BAHEP / CLAEDF team since 1991, representing Loral and Lockheed Martin. He is a former vice president of both companies. Wilkins retired from Lockheed Martin in 2010 and is presently the CEO of CLC Properties. He is a cum laude graduate of Ohio University, with a BS in math-computer science and an MBA. John’s wife, Shari, is an attorney and a graduate of the University of Houston Law Center. Their daughter, Nicole Rose, recently graduated from Concordia University in Southern California, and their son, S.J., attends Texas A&M University's College of Engineering. Wilkins has served on numerous boards in the community and attends Clear Creek Community Church. 20
Ex Officio Members of the 2020 Executive Committee Jennifer Bowers is a partner with the law firm of Bowers & Sadler, LLP. The firm specializes in a variety of legal services aimed at assisting closely-held businesses and their owners with their tax planning, business organization matters, estate planning, and probate matters. Bowers is board certified in tax law by the Texas Board of Legal Specialization. Todd Caliva serves as chief executive officer of HCA Houston Healthcare Clear Lake. He has nearly 28 years of experience, including a decade at the multi-facility level. He has been with HCA in Houston since 1997. In prior roles, Caliva served as chief executive officer of HCA-affiliated West Houston Medical Center and East Houston Regional Medical Center and chief operating officer of HCA-affiliated The Woman’s Hospital of Texas. His robust community involvement includes co-chairing the Southeast Texas Regional Advisory Council (SETRAC) Cardiac Care Committee, an organization that is committed to improve the overall care for heart attack patients across the region; serving as the president/chairman of the Educational Foundation of the Southeast Texas Chapter of the American College of Healthcare Executives, as well as currently serving as regent of the Southeast Texas Chapter. Caliva earned a master’s degree in business administration and a bachelor’s of science in marketing from the University of Houston. He is the proud parent of two daughters, Sophie and Cara. Mark S. Geyer is the 12th director of NASA’s Johnson Space Center in Houston, a position he assumed on May 25, 2018. In this role, Geyer leads a workforce of approximately 10,000 civil servant and contractor employees at one of NASA’s largest installations and the White Sands Test Facility in Las Cruces, New Mexico. Geyer began his NASA career in 1990 at NASA JSC in the new business directorate. From October 2017 to May 2018, he served as the acting deputy associate administrator for technical for the Human Explorations and Operations Mission Directorate at NASA Headquarters in Washington. Born in Indianapolis, Geyer earned both his Bachelor of Science and Master of Science degrees in Aeronautical and Astronautical Engineering from Purdue University in Indiana. Geyer is the recipient of the NASA Distinguished Service Medal, Meritorious Executive Rank Award, and the Distinguished Executive Rank Award. He and his wife, Jacqueline, have three children. Fred B. Griffin is founder and chairman of Griffin Partners, Inc., and its related affiliates. Griffin joined Exxon Company USA in 1969. It was there that he began his real estate career with Friendswood Development Company, a subsidiary of Exxon Corporation. As an integral part of Friendswood’s growth, he played a key role in the purchase, planning, and development of Kingwood, Woodlake, Greenspoint, Copperfield, Clear Lake City, and other substantial projects throughout the greater Houston area. In 1980, Griffin, with Conley Juban, formed Griffin/Juban Companies, the predecessor to Griffin Partners. The Griffin/Juban Companies – and subsequently Griffin Partners – have built or acquired projects encompassing approximately 11.2 million square feet space with an aggregate value of $1.5 billion. In addition to serving as chairman of Griffin Partners, Griffin’s other appointments include: Board of Directors, BAHEP; Board of Directors, Houston Grand Opera; and Board of Directors, Sweet Briar College. He is also the recipient of the 2013 Quasar Award for Exceptional Leadership in Economic Development presented by BAHEP, and the recipient of the NASA Exceptional Public Achievement Medal at Lyndon B. Johnson Space Center. 21
Ex Officio Members of the 2020 Executive Committee Brenda Hellyer, Ed.D., is the fifth chancellor of San Jacinto College (SJC), the eighth largest community college in the state of Texas and a national Top-Ten College. She began her career at SJC as an inaugural director of the SJC Foundation. In 2000, she was appointed executive vice president for Resource Development and in 2003 vice chancellor for Fiscal Affairs. She served as chief financial officer for five years before serving as executive vice chancellor before assuming her role as chancellor in 2009. Prior to joining SJC, Dr. Hellyer worked in the corporate world in accounting. She holds a bachelor’s degree in accounting from Fort Hays State University, an MBA and an Ed.D. in Community College Leadership from the University of Texas at Austin. Timothy C. Kropp is the executive vice president of MRI Technologies. He guides MRI in strategic development and implementation. Kropp came to Houston in 1984 to support the Space Shuttle program and held program responsibilities in the energy industry during his early career. He has served on the Clear Creek Education Foundation, League City Parks board, and undertaken special assignments for League City and Galveston County. He is currently serving on the Tax Reinvestment 3 board for League City, RNASA Foundation board, and several privately held companies board of directors. He has been involved with BAHEP since 1996. Community involvement includes several local assisted living establishments, charities and local schools. Kropp graduated from Florida State University. Ron W. Masters, CIC, is president of AssuredPartners, an insurance and financial services company based in Houston. Masters oversees all of the company’s operations, including providing commercial insurance, risk management, employee benefits, and other financial services to more than 5,000 clients. A licensed risk manager and Certified Insurance Counselor, Masters serves on the boards of BAHEP, the Myron F. Steves Advisory Council, and the Bay Area Houston Transportation Partnership. He has previously served as president of the Galveston County Independent Agents Association, chairman of Clear Lake Regional Hospital and board member of Devereux Texas Treatment Network. Lon F. Miller, senior vice president and general manager for the Jacobs Clear Lake Group, is responsible for all aspects of technical and business leadership of the local Houston workforce numbering more than 1,000 employees involved in almost all aspects of America’s human spaceflight program. Over the span of his 38-year career with NASA or as a NASA contractor, he has been involved in nearly every major NASA program and has led activities for Jacobs in Huntsville and Houston that resulted in winning the NASA George M. Low Award two times. Bernard A. Milstein, M.D., is a nationally recognized ophthalmologist, specializing in laser vision correction, cataract surgery and diseases of the eye. Dr. Milstein has performed approximately 15,000 LASIK procedures and has been included yearly in “Best Doctors in America” since 1996. He is a fellow of the American Academy of Ophthalmology and a past president of the Texas Ophthalmological Association. Dr. Milstein is also a community leader and has served as chairman of the boards of BAHEP, the Galveston Wharves, and the Galveston County Health District, as well as on many other boards, committees and associations. 22
BAHEP White Paper Delivers Urgent Message to Members of Congress on Impact of 2019 Federal Shutdown
Could the collateral damage caused by federal shutdowns affect our children’s future career choices? Local area school children are seen during a NASA event announcing the astronauts assigned to crew the first flight tests and missions of the Boeing CST-100 Starliner and SpaceX Crew Dragon, Friday, Aug. 3, 2018, at NASA’s Johnson Space Center in Houston, Texas. Photo Credit: (NASA/Bill Ingalls)
This shutdown is not like others. The shutdown’s duration, the partisan political divides, the seeming national lack of urgency, and the fact that only segments of government are closed, all contribute to a sense that somehow the nation can just float along. We cannot. While the national discussion about the government shutdown has been rightly focused on the plight of 800,000 federal work-
ers, in reality, with every passing day, the impacts on the private sector and our local economies are more pronounced. Specifically, increasing numbers of employees from both large and small businesses are laid off or furloughed daily as federally contracted work ceases. Federal employees will be held harmless financially, yet the same is not the case for employees of federal contractors or for the thousands of employees whose jobs are 23
threatened because so many people are not dining out, buying goods and services, or paying their bills. Thus, by extension, whole communities suffer. Indeed, the situation is getting worse daily. One example, from our community, illustrates the point. NASAJohnson Space Center (JSC) is a microcosm of what is being played out nationally. JSC employs about 3,000 civil servants, none of whom are being paid, and some of whom are expected to work without pay to keep the International Space Station flying and other vital services running. Less obviously, there are over 8,000 contractor employees who are either not being paid or who will soon be without checks. Thus, just looking at one agency in one community, there are 11,000 people with no pay or will soon have no pay. But, that does not tell the whole story. For the aerospace industry, the employment multiplier is typically estimated to be about 2.5. That means that when we consider the suppliers, daily services, restaurants and other businesses impacted by this shutdown, there are actually about 27,500 jobs affected. To be clear, dozens of companies – large and small – are weakened, and an entire support system of small service businesses are damaged as their customer base erodes. Looking at dollars, we see that the Johnson Space Center budget is just over $4.6 billion. For aerospace, the economic multiplier is approximately 1.85, meaning JSC’s economic impact is over $8.5 billion. Right now, local property taxes are due, federal income taxes are coming due, and sales taxes will decline as thousands are unable to buy goods and services. For families and businesses, credit ratings fall; bank loans dry up, bills go unpaid, and demands on 24
local services sharply increase. In short, locally, fewer dollars will be generated at the local and state levels, just as service requirements will be ramping up. Small businesses have no way to recoup their mounting costs. At some point, the company has to decide whether to lay people off rather than sustain furlough costs, and this scenario creates obvious new problems for the companies. For skilled workers, the brain drain has begun, leading to a new set of issues. Can it get worse? Yes. For companies, especially smaller ones, the shutdown creates a cash flow problem, with continuing expenses, with no revenues, and with commitments to rigid contracts that specify what is to be done and when. The companies’ management must go back to their banks seeking funding to carry them through the shutdown, which has no end in sight, hence further weakening their corporate viability. The present shutdown means that a company continues to hemorrhage dollars with no way to recover them. Added to the misery is the fact that schedules for contracted services are rendered meaningless, and with costs to the government increasing in the long run. The shutdown’s impact on the private sector is real – jobs are lost and the economy suffers. Again, this example is simply one small part of the entire federal budget and array of federal agencies, but the impact is profound, far-reaching and urgent. Protracted disruption hurts the dedicated men and women of our nation, the companies for which they work, and the communities they call home. Every day the shutdown lasts, things get worse. Bob Mitchell President Bay Area Houston Economic Partnership
Current members of BAHEP Board of Directors Proudly Sponsor Publication of 2019 Annual Report
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Current members of BAHEP Board of Directors Proudly Sponsor Publication of 2019 Annual Report
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Membership Bay Area Houston Economic Partnership owes much of its success to the active participation of its members. Following is a current list of BAHEP members: New in 2019
Acadian Ambulance Service ACU of Texas Advantage BMW Mini of Clear Lake AECOM The Aerospace Corporation AeroSys, LLC Aexa Aerospace, LLC Aggreko Airbus DS Space Systems, Inc. All Points Logistics, LLC Allegiance Bank Texas Alpha Space Test & Research Alliance, LLC Al-Razaq Computing Services The AM Agency Amazon Web Services Amegy Bank of Texas American Acryl American Heart Association AMOCO Federal Credit Union Anadarko Industries, LLC Archer Group ARES Aerospace and Technology Services AssuredPartners AVERA Companies Ayrshire Corporation Bay Area Coastal Protection Alliance Bay Area Commercial Real Estate Network (BACREN) Bancorp South Bank Barlow Jones, L.L.P. Barrios Technology Bastion Technologies, Inc. Bay Area Houston Ballet & Theatre Bay Area Houston Magazine Bay Area Houston Transportation Partnership (BAYTRAN) Bay Area Surgicare Center
Bay Area Turning Point, Inc. Bay Oaks Country Club Bay Area Houston Advanced Technology Consortium Branch Banking & Trust Company (BB&T) Boatman Realty, LLC The Boeing Company Booz Allen Hamilton Bowers & Sadler, LLP Brewer Construction Services The Bridge Over Troubled Waters, Inc. Brookfield Properties Brown Leadership Consulting, LLC Capital Bank - Pasadena CDS Community Development Strategies CenterPoint Energy Charles Schwab & Co. Chemical Process and Production, Inc. CHI St. Luke's Health Patients Medical Center Cimarron City of Clear Lake Shores City of Dickinson City of El Lago City of Friendswood City of Houston City of Houston, Houston Airport System City of Kemah/KCDC City of Kemah City of La Porte City of League City City of Morgan's Point City of Nassau Bay City of Pasadena City of Seabrook City of Taylor Lake Village City of Webster CLC Properties Clear Creek Independent School District Clear Lake Area Chamber of Commerce Coldwell Banker United Realtors College of the Mainland Colliers International
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Collins Aerospace Comcast Business Communities In Schools - Bay Area, Inc. Community Impact Newspaper Courtyard By Marriott Houston NASA/Nassau Bay Coventry Development Corporation - Houston Craig Technologies Criss Cross Commercial Group Crowder Funeral Homes Ruby Cubley Curran Investment Group of Wells Fargo Advisors CYFOR Technologies, LLC Cypress Bay Subdivision/Marina Bay Village DB Consulting Group Del Papa Distributing Company Deloitte Devereux Advanced Behavioral Health Dickinson Independent School District DRDA, PLLC Economic Alliance Houston Port Region EduSafe Systems, Inc. Edward Jones – Roy Salas Elizabeth Smith Life and Health Express Employment Professionals The Eye Clinic of Texas Fast Signs - Clear Lake Friendswood Chamber of Commerce Friendswood Independent School District Frost Bank Galveston Bay Foundation Galveston County Galveston County Daily News Galveston Economic Development Partnership Galveston Regional Chamber GB Tech, Inc. GeoControl Systems, Inc. Greater Houston Partnership Greer, Herz & Adams, LLP Gregg & Gregg, P.C. Griffin Communications Group Griffin Partners, Inc. Guardian Anesthesia Services, PLLC Guidry News Service Gulf Coast Authority Gulf Coast Educators Federal Credit Union Gulf Coast Limestone, Inc. Ham, Langston & Brezina, LLP
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Harris County Summit Management Group Haute Flowers & Events HCA Houston Healthcare Clear Lake HCA Houston Healthcare Southeast Highpoint Insurance Group, LLC Hilton Houston NASA Clear Lake HomeTown Bank, N. A. Houston Area Safety Council Houston Association of Realtors Houston Chronicle Media Group Houston First Corporation Houston Methodist Clear Lake Hospital Houston Pediatric Specialty Group, LLC Houston Precision Fasteners ImageNet Consulting Intuitive Machines, LLC J&P Technologies J. A. Billipp Company Jacobs JES Tech Joiner Architects, Inc JSC Federal Credit Union Kaneka North America LLC KBR Keller Williams Realty Clear Lake Kemah Boardwalk Kuraray America, Inc. La Porte Independent School District Lakewood Yacht Club The Law Office of Phil Griffis League City Regional Chamber of Commerce Leidos Lexus of Clear Lake Lockheed Martin Space Systems Company Lockwood, Andrews & Newnam, Inc. Logical Innovations, Inc. Lone Star Flight Museum LoveWell Creative MadisonMarquette Marina Bend at Clear Creek Marsh Darcy Partners, Inc. MD Anderson Cancer Center MDT Financial Advisors, LLC Meador Staffing Services, Inc. Media Riders, Inc. Medistar Corporation
MEI Technologies, Inc. Memorial Hermann Southeast Hospital Merrill Lynch Minuteman Press - Bay Area Moody Bank Mori Associates MRI Technologies My FlooringAMERICA NanoRacks, LLC NASA Alumni League - JSC Chapter NASA Johnson Space Center National Space Biomedical Research Institute Nestle Waters N.A. Norman Frede Chevrolet Northrop Grumman Innovation Systems Oceaneering Space Systems, Inc. One Stop Tents & Events PAE Pasadena Economic Development Corporation Pasadena Independent School District Pasadena Texas Chamber of Commerce Payne’s Plants PBK Pearland Economic Development Corporation Pelican View Drone Services Pennino and Partners Peraton Perry's Restaurant Group Port Houston PrimeLending A PlainsCapital Company Raytheon Intelligence, Information and Services REMAX Space Center The Rothe Companies - Houston Operations S&K Global Solutions SAIC San Jacinto College District Savills, Inc. Schaumburg & Polk, Inc. Stinger Ghaffarian Technologies Sierra Nevada Corporation Signature Flight Support Sonesta ES Suites Houston - Clear Lake/NASA South Belt Ellington Leader South Shore Harbour Resort & Conference Ctr. Southwest Airlines Company Space Center Houston Space City Films, Inc.
SSCI Environmental & Consulting Services Stantec Consulting Services, Inc. Star Service, Inc. Staybridge Suites NASA Clear Lake Steele Media Services TechTrans International (TTI) Teledyne Brown Engineering Terracon Consultants, Inc. Texan Bank Texas A&M Engineering Experiment Station (TEES) Texas A&M University at Galveston Texas Central Texas Chiropractic College Texas Citizens Bank Thrivent Financial tommy's Restaurant Oyster Bar Trustmark National Bank, Texas TXU Energy UHCL Center -Economic Development & Research United Airlines United Equities, Inc. Universities Space Research Association-USRA University of Houston-Clear Lake Uprite Services UTMB Health Veritex Community Bank Welcome Group, LLC Wells Fargo Business Banking Whitley Penn Wendell Wilson & Dr. Pat Potter Wilson Wings Over Houston Air Show YMCA of Greater Houston Zann Commercial Brokerage, Inc.
Region Supported by Bay Area Houston Economic Partnership which includes its members Clear Lake Shores, Dickinson, El Lago, Friendswood, Houston, Kemah, La Porte, League City, Morgan’s Point, Nassau Bay, Pasadena, Seabrook, Taylor Lake Village, Webster, Galveston County, Harris County, Houston Airport System, and Port Houston.
Bay Area Houston Economic Partnership 18045 Saturn Lane Houston, Texas 77058 832.536.3255 www.bayareahouston.com Facebook: BayAreaHoustonEcon Twitter: @BAHEP