Letter from the President

2020. What an unexpected and previously inconceivable year. I’m fairly certain that everyone everywhere would agree on that one statement.

However, the Bay Area Houston Economic Partnership has never backed away from difficult circumstances. Famous auto executive Lee Iacocca once said, “In times of great stress or adversity, it's always best to keep busy, to plow your anger and your energy into something positive.” I believe that BAHEP has lived those words by example time and time again. in large patient studies have renewed hope that this unseen enemy will soon be defeated.

Although 2020 presented more challenges than ever could have been imagined just one year ago, it also offered opportunities to join together as a community, a region, a state, a nation, and a world to solve enormous problems.

Such examples can be found within this annual report. BAHEP worked around obstacles to keep connected to its members. As so many others have done and still do, we held virtual meetings to educate and inform our membership and others in the region about initiatives affecting them all. These included activities by our healthcare systems and educational institutions to serve our communities under extreme circumstances brought about by the pandemic. BAHEP also continued its advocacy work on behalf of NASA, the Houston Spaceport, and the Coastal Barrier System while also supporting our small businesses with critical information about the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) advances. At the conclusion of this report, there is a section titled BAHEP Turns Challenges into Opportunities. Normally, I’m not a big fan of repetition, but I also believe that some things deserve to be emphasized so that they are not overlooked. That’s the case I would like to make for the following four paragraphs. The Bay Area Houston Economic Partnership is incredibly thankful for the contributions of its members and regional partners who have been instrumental in supporting BAHEP’s initiatives throughout 2020. Economic development does not and cannot cease when the way forward is paved with uncertainty. Entering its 45th year of service to the people and businesses of Bay Area Houston, BAHEP remains Resilient in the Face of Adversity continuing its work to strengthen and build upon the firm foundation of the region’s economy. Best regards,

Bob Mitchell President

As this annual report is being written, newly-developed vaccines against COVID-19 have been revealed whose high efficacy rates

Resilient in the Face of Adversity

Local Educational Institutions (page 8)  BAHEP Members Hear Healthcare Panel Discuss COVID-19 Challenges (page 10)  BAHEP Hosts Small Business Panel of Experts for Discus-

Tsions on COVID-19 and Recovery (page 11) he year 2020 will be remembered far into the future as the  Roundtable of Local, State, and Federal Officials Discuss Imyear that we fought a vicious world war. Although extremely pact of COVID-19 (page 11) small, the enemy would soon be recognized as highly dangerous  BAHEP Co-hosts UTMB Medical Experts for COVID-19 Upand often deadly. date (page 12)  BAHEP Distributes White Paper on Importance of Reopening The Bay Area Houston Economic Partnership is a member- Texas for Business (page 13) driven organization. For 44 years, its mission has been centered  BAHEP’s Board Writes Letter to Federal Officials Regarding around vitalizing the economy of the region, utilizing the intellect 501(c)(6) Nonprofits (page 14) and skills of its members and long-term relationships with its  BAHEP Briefs Secretary of Commerce Ross on COVID-19 Impartners at the local, state, and federal levels to achieve the excel- pacts to Bay Area Houston lent quality of life for which the region is known.  Social Media Challenges During COVID-19 Pandemic Discussed

Resilient in the Face of Adversity has always been BAHEP’s  COVID-19 Resource Page Created on BAHEP Website strong suit. Within the first few months of 2020 as the COVID-19  CARES Act Details and Clarification Disseminated to BAHEP pandemic gained momentum, that resilience was put to the test Members as BAHEP harnessed the power of the internet to inform its members and the community about resources available for businesses as well as to provide updates from medical and educational leaders within the community. This annual report highlights BAHEP’s response to the challenges of conducting business during a worldwide pandemic. It also reveals many of the behind-the-scenes initiatives that the organization conducts on a daily basis — pandemic or not.

BAHEP Responds to COVID-19 Pandemic

The following bulleted activities depict ways in which BAHEP responded to the challenges of the pandemic. For some activities, more information within this report can be found on the pages shown in parentheses.  Sen. John Cornyn Addresses BAHEP Members via COVID-19 Webinar (page 7)  Sen. Ted Cruz Addresses BAHEP Members during General Membership Meeting (page 8)  BAHEP Hosts Virtual Meeting on COVID-19 Responses by

Sen. John Cornyn Addresses BAHEP Members via COVID-19 Webinar

On April 9, 2020, the Bay Area Houston Economic Partnership held a virtual General Membership Meeting featuring U.S. Sen. John Cornyn and the federal response to COVID-19 as well as Tim Jeffcoat, district director for the Small Business Administration. M o r e than 180 BAHEP members were in virtual attendance.

Sen. Cornyn reported that Congress had passed three pieces of legislation to date, the latest of which was the bipartisan CARES Act (Coronavirus Aid, Relief, and Economic Security Act) that was signed at the end of March. The senator said that healthcare is obviously the first concern. “We’ve pushed $100 billion out the door of which $30 billion will be going shortly. There’s flexibility on how that money is spent, but the idea is to maintain capacity to make sure the hospitals and professionals are there to take care of those who need them,” he noted.

Sen. Cornyn said that the key to dealing with the pandemic is ultimately developing drugs that can treat COVID-19. He stated, “Individuals and businesses need a lifeline; so, the federal government is providing by direct deposit to your bank account, if you filed a 2019 tax return, up to $1,200 a person, $2,400 for a married couple, and up to $3,400 for a family of four that makes up to $150,000.” The senator also said that it is necessary to make sure jobs are still going to be there for people when this economy starts coming back. He offered, “That’s why we established through SBA certified lenders the Paycheck Protection Program (PPP).” During the meeting, BAHEP President Bob Mitchell expressed his apprehension in regard to financial relief for 501(c)(6) nonprofit organizations. Sen. Cornyn replied that he has had enough feedback from people like Mitchell, chambers of commerce, and others to take another look at the PPP and possibly expanding it to include 501(c)(6)’s. He said that the goal is to allow non-profits to keep their employees on the payrolls, too. Mitchell then questioned if the Economic Injury Disaster Loan (EIDL) advances are available now. Jeffcoat answered, “They absolutely are.” He continued, “In many cases for businesses, it makes sense to pursue both the EIDL, since it is for a much longer period of time and covers operating costs, as well as the PPP, because its emphasis is going to be on payroll.” Jeffcoat continued to answer numerous questions from the audience, clearing up a lot of confusion about the various government assistance programs available to small businesses.

Sen. Ted Cruz Addresses BAHEP Members

BAHEP hosted Sen. Ted Cruz for its May 28, 2020, virtual General Membership Meeting. Sen. Cruz began the meeting by saying he was focused on two priorities: the public health crisis from the COVID-19 pandemic and the economic crisis caused by the 8 pandemic. He said he’s very concerned about the 20 percent unemployment rate, the largest since the Great Depression, and worried about small businesses either going out of business or into bankruptcy. Sen. Cruz fielded questions from the audience of more than 150. The first dealt with the NASA Commercial Crew launch on a SpaceX rocket scheduled for May 30, 2020. In response to the question about the significance of the U.S. regaining human launch capability, Sen. Cruz replied that this is vital to the nation’s economy, since technology from the space program is a driver for the U.S. economy. BAHEP President Bob Mitchell pointed out that non-profit economic development organizations were excluded from the Payroll Protection Program in the stimulus bill passed by Congress, and he asked the senator for his thoughts on including 501(C)(6) non-profits like BAHEP in the fourth recovery bill. Sen. Cruz said that non-profit economic development organizations are vital to small businesses during the economic crisis. He said organizations like BAHEP that are providing information and assistance to help small business through the pandemic should be included in the next bill. Sen. Cruz said he is working with his Senate colleagues to include language in the Senate version of the bill.

Education and Workforce Development

BAHEP Hosts Virtual Meeting on COVID-19 Responses by Local Educational Institutions

BAHEP hosted a virtual General Membership Meeting in May on “How the Region’s Educational Institutions are Responding to COVID-19” featuring Dr. Ira Blake, president, University of Hou-

Dr. Ira Blake

Dr. Warren Nichols Dr. Brenda Hellyer

Dr. Greg Smith Carla Voelkel Lloyd Graham

Thad Roher Dr. DeeAnn Powell

ston-Clear Lake; Dr. Brenda Hellyer, chancellor, San Jacinto College District; Dr. Warren Nichols, president, College of the Mainland; Lloyd Graham, superintendent, La Porte Independent School District; Dr. DeeAnn Powell, superintendent, Pasadena Independent School District; Thad Roher, superintendent, Friendswood Independent School District; and Dr. Greg Smith, superintendent of Schools, Clear Creek Independent School District.

More than 100 BAHEP members attended the meeting to hear how each of the educational institutions was responding to the COVID-19 pandemic. Click the link to view the General Membership Meeting on YouTube: https://www.youtube.com/watch? v=OEPId1mmEVQ

Feasibility Study for Multi-collegiate Academic Collaboration at Houston Spaceport Examined

BAHEP assisted San Jacinto College and the Houston Airport System (HAS) in the scoping of a feasibility study for a multicollegiate academic collaboration at the Houston Spaceport that will address workforce development requirements. BAHEP Executive Director for Economic Development Dan Seal participated in meetings to discuss the development of the Training Center Feasibility Study RFQ. Participants included HAS Director Mario Diaz, Ellington Airport GM Arturo Machuca, and San Jacinto College District Chancellor Brenda Hellyer, Ed.D. BAHEP will assist San Jacinto College in its evaluation of proposals and participate in vendor interviews. This project is worked jointly with HAS and the City of Houston, Chief Development Officer. It is synergistic with the city’s Workforce Development task in the BAHEP Economic Development Services Agreement.

Advocacy

Harris County Office of Economic Opportunity and Equity Working Group Meets

BAHEP participated in a July 8, 2020, meeting of the Harris County Office of Economic Opportunity and Equity Working Group led by TIP Strategies. BAHEP, along with other meeting attendees, provided feedback on the proposed structure of the office, which is comprised of Business Development, Economic Development, Monitoring and Compliance, Engagement and Communications, and Policy. The next steps for the working group are to have an all hands Working Group organizational presentation in late August/ September followed by a presentation of the organizational struc9

ture and implementation timeline to the Commissioners’ Court in the fall of 2020.

Notable Meetings

Pearland; and Gulshan Sharma, MD, MPH, Vice President, Chief Medical & Clinical Innovation Officer, UTMB. BAHEP President Bob Mitchell served as panel moderator. The panelists began the discussion by providing an overview of what was taking place within each hospital system. Although specific actions vary between systems, the hospitals also have BAHEP Hosts Virtual Meeting with ISD Superintendents on much in common. The days Reopening Schools are consumed by temperaBAHEP hosted a virtual General Membership Meeting on Aug. ture checks and screenings 12, 2020, to hear from the superintendents of the region’s Inde- of patients, visitors, and empendent School Districts (ISDs) on the re- ployees. Testing is also a huge opening of K-12 schools for the 2020/2021 priority. Additionally, there are command school year. The BAHEP members heard center conference calls that address personal how local ISDs are facing incredibly com- protective equipment (PPE) on hand and plicated and far-reaching challenges. The what may be needed. There guest panelists were Carla Voelkel, super- are physician calls where intendent, Dickinson ISD; Dr. Walter the medical staff is given an Jackson, newly-named superintendent, La administrative update sharing Porte ISD; Dr. DeeAnn Powell, superin- new policy and procedures that are evolving, tendent, Pasadena ISD; Thad Roher, su- because things constantly change. Strategic pri-

Dr. Walter Jackson perintendent, Friendswood ISD; and Dr. Greg Smith, superintendent, Clear Creek ISD. orities have been put in place across all systems to safeguard employees and the public. BAHEP Members Hear Healthcare Panel Discuss COVID-19 Following the overview and Challenges discussion, members of the panel then anOn Thursday, April 30, 2020, a panel of healthcare professionals swered questions that had been submitted used the power and convenience of the internet to speak to more by virtual attendees such as, “Is it is safe to than 175 BAHEP members of the ways in which regional hospital go to the hospital?” Othsystems have adapted to COVID-19. They also looked to the fu- er questions addressed ture as everyone will be operating under this new normal for the status of the developsome time to come. ment of a vaccine, availability of antibody tests, safety of elective procedures, The panel consisted of Todd Caliva, CEO, HCA Houston and safety surrounding the reopening of busiHealthcare Clear Lake; Stephen K. Jones, Jr., CEO, UTMB nesses. BAHEP President Bob Mitchell ended Health Clear Lake Campus; Dan Newman, CEO, Houston Meth- the meeting by thanking all those who took odist Clear Lake Hospital; Kelly Ochoa, Vice President of Opera- time out of their extremely busy schedules to tions, Memorial Hermann Southeast and Memorial Hermann participate in the panel discussions. 10

Todd Caliva Stephen K. Jones Dan Newman

Kelly Ochoa Dr. Gulshan Sharma

BAHEP Hosts Small Business Panel of Experts for Discussions on COVID-19 and Recovery

The BAHEP virtual General Membership Meeting had an audience of 121 members for the May 14, 2020, panel discussion on COVID-19 impacts to small businesses and what to expect during the recovery process. The panelists were Phil Griffis, president, Law Offices of Phil Griffis; Mark Conrad, BAHEP Small Business Committee chairman and owner of Express Employment Professionals; and Tim Jeffcoat, Houston district director, Small Business Administration.

Griffis focused his discussion on small businesses “keeping business out of the court room.” He advised businesses to work to avoid litigation by entering into a “standstill” agreement with creditors and vendors.

Conrad discussed the issues with a “return to business theme.” Issues included which employees to retain, dealing with employees who do not want to return to work, childcare, and supply chain disruption. Jeffcoat provided an update on the Payroll Protection Program (PPP) and addressed the concern of federal scrutiny or audit of how the PPP funds are utilized. The meeting was a huge success by providing key information to small business owners. Click on the following link to hear the meeting on YouTube: https://youtu.be/yVqBo_BXVaY

Update given by Mark Geyer, director, NASA Johnson Space Center, during virtual meeting

BAHEP hosted Mark Geyer, director, NASA Johnson Space Center, for a virtual General Membership Meeting on May 7, 2020. BAHEP Board of Directors President Robert McAfoos introduced Geyer saying, “Mark Geyer is the right leader at the right time.” Geyer spoke about the role of NASA Johnson Space Center (JSC) in the various human space exploration programs. These included NASA’s returning humans to space on U.S. spacecraft, the status of the International Space Station, and the planned human exploration mission to the Moon. He explained how the return to the Moon will prepare NASA for a mission to Mars. Geyer closed his presentation by addressing how JSC has responded to the COVID -19 pandemic and the preparations in progress that will safely allow the return of employees. Following is the YouTube link to Mark Geyer’s presentation: https://www.youtube.com/watch? v=GfVy0jwayRM

Mark Geyer

Roundtable of Local, State, and Federal Officials Discuss Impact of COVID-19

BAHEP President Bob Mitchell and Membership Director Harriet Pilgrim participated in a Mayoral Roundtable on Aug. 7, 2020, hosted by the City League City’s Mayor Pat Hallisey at the Johnnie Arolfo Civic Center in League City. Mayors in attendance were: Terri Gale, City of Kemah; Jon Keeney, City of Taylor Lake Village; Michel Bechtel, City of Morgan’s Point; Thom Kolupski, City of Seabrook; Mark Denman, City of Nassau Bay; Mike Foreman, City of Friendswood; and Kurt Otten, City of Clear Lake Shores. Also participating were State Rep. Greg Bonnen, M.D.; Jed Webb and Jared Bargas, Office of U.S. Congressman Randy Weber; Mark Williams, Office of State Sen. Larry Taylor; and Michael Jenkins, Office of State Rep. Mayes Middleton. The purpose of the meeting was to bring everyone together to see how everyone was doing in the wake of the COVID-19 pandemic.

The mayors reported on development projects in their respective city, the status of COVID-19 cases for city employees and in the community, how social distancing guidelines were working in the community, and the continued need to drive drainage projects. Rep. Bonnen reported that many students in the State of Texas were unaccounted for following school closures in the spring and that education will be a top priority in the upcoming session. Jed Webb and Jared Bargas stated that much of their time has been devoted to helping constituents apply for the Paycheck Protection Program Loan (PPP) and the Economic Injury Disaster Loan (EIDL). Mark Williams discussed Sen. Taylor’s work in the Sen-

ate to get Texas students back to school and back on track educationally. Mitchell reported on BAHEP’s membership during the COVID-19 pandemic, a major BAHEP project planned for the Houston Spaceport, and the status of the design study for the Coastal Barrier along the Upper Texas Coast.

Ellington’s Col. Barker Speaks of Current Missions, Future Possibilities

BAHEP hosted Col. Matthew Barker, 147th Attack Wing commander, Texas Air National Guard, Ellington Field Joint Reserve Base (JRB), for its virtual General Membership Meeting on July 30, 2020. Barker spoke of current operations of Ellington’s 147th Attack Wing, the exciting MQ-9 Remotely Piloted Aircraft program, and future possibilities.

Col. Matthew Barker

As he began his presentation and throughout it, Barker spoke passionately about the mission of the Texas Air National Guard, the quality and dedication of its personnel, and its ongoing recruitment of talented people to fill openings in its many specialties. At the start of his presentation he emphasized, “The one thing that I need you to come away with today is that this is a family business, and we are your neighbors. We are your 147th Attack Wing.” Ellington Field JRB is home to all branches of the Department of Defense as well as the Coast Guard and NASA, which includes approximately 7,000 full-time and part-time personnel. Barker explained, “We are the only major military presence in the third largest city in the nation – a city of over 80,000 veterans.” Barker then spoke of Ellington’s MQ-9, a remotely piloted aircraft or RPA. He said, “From the operational side, it is flying local training missions and also has the capability to do combat operations anywhere in the world from Ellington Field. The MQ-9 is about the size of an F-16, a regular fighter airplane, and can carry about the same amount of bombs and missiles. It can stay up for upward of 12– 15 hours without having to refuel. That makes a very flexible, a very capable weapon system.” Ellington Field is also the home of another flying asset – RC-26, a reconnaissance aircraft. The colonel related that during Hurricane Harvey in 2017 that the RC-26 handled about 600 infrastructure requests from the city engineers to go to Barker Addicks Reservoir to look for areas that might be problematic.

BAHEP Co-hosts UTMB Medical Experts for COVID-19 Update

On July 14, 2020, BAHEP and the Galveston Economic Development Partnership hosted a joint membership meeting focused on the coronavirus research in progress at UTMB. Experts Dr. Scott C. Weaver, scientific director of the Galveston National Laboratory, and infectious disease physician Dr. Dr. Susan McLellan Susan McLellan, medical director of the Biocontainment Patient Care Unit at UTMB, shared information on UTMB’s initiatives with Covid-19 research and the development of antiviral and antibody therapies as well as current vaccine development efforts. They also discussed patient care and public health strategies that are critical to leading our communities out of this pandemic. Approximately 200

Dr. Scott C. Weaver people joined the update through the virtual meeting.

Media and Public Relations

BAHEP Distributes White Paper on Importance of Reopening Texas for Business

In April, BAHEP wrote a white paper explaining the stark predicament that the national economic shutdown had caused and weighed those elements against the good news factors that were emerging as a justification for positive action to reopen Texas for business.

An abbreviated version of the white paper stated, “The Bay Area Houston Economic Partnership, and its more than 270 member companies, have encouraged Texas elected officials to develop a functional back-to-work plan for Texas. We thank Governor Abbott for the strong leadership he exhibited Friday in moving Texas, and the nation, forward by releasing his plan. “It is right on track and Houston business leaders are ready to assist. The back-to-work plan is aggressive, and yet safe for Texas workers, customers, healthcare suppliers, and citizens. It balances the necessary need for action with the safety and well-being of every Texan. “Why is Texas so important? Texas enjoys America's second largest state economy and produces more than $1.8 trillion of annual economic output -- ranking the Lone Star State as the world's 10th largest economy. Texas leads the nation in new job creation and it’s imperative to get Texas’ massive economic engine back to full production quickly. “Closer to home, Houston’s economy is being doubly harmed –by negative impacts from the shutdown and by the sharp reduction in demand for fossil fuels resulting from global immobility. Business closures in Harris County have caused a 27 percent drop in daily economic output. Economists are projecting that local job losses could reach 300,000 – more severe than the 1980s energy bust and the Great Recession. “Virtually every sector of Texas’ economy is being affected. Restaurants are in a fight for survival. Texas’ major airlines - American, United, and Southwest - are reeling. Texas is projected to lose 44 percent of its hotel jobs. Galveston’s previously thriving cruise industry has been decimated. “Fortunately, local hospitals have not been inundated with COVID-19 cases, but regular hospital admissions have plummeted because of the cancellation of elective surgeries and treatments for non-life-threatening illnesses. Hospital revenues have plunged as a result and the healthcare system is extremely vulnerable. Texas families are hurting. There have been 1,363,224 total unemployment claims in Texas since March 14th, representing 9.5% of the state labor force. People’s schedules are in flux, children are at home, and Texans are suffering. “But good news is emerging. We are beyond the apex of new cases of COVID-19. People are recovering, new cases are dropping, and we are seeing the long awaited light at the end of the tunnel. Improvements in diagnostic testing and vaccine development are very promising. If another flare-up of the disease should occur later this summer, our hospitals are ready to react. We have more ventilators than ever, more therapies, more PPE, more ICU beds, and more knowledge to tackle any situation. “This is just the kind of challenge to which Texans have always risen. We must take bold action NOW before the harm resulting from the COVID-19 cure becomes worse than the disease itself. It’s clear when assessing the damaging results of the national lockdown along with the good news emerging – the case has been made to act now to get Texas, and the rest of the nation, back to work.”

The unabridged version of the white paper can be found in the News Room section of BAHEP’s website.

BAHEP Writes Letter of Support for Staggers Rail Act

BAHEP President Bob Mitchell wrote a letter to the Surface Transportation Board on March 3, 2020, requesting that the board not take any action that would hinder the ability of freight 13

railroads to reinvest in the rail network. The Staggers Rail Act of 1980 primarily deregulated railroads, leading to a freight rail renaissance that continues to provide measurable benefits to businesses, consumers, taxpayers, and the economy.

The Atlantic Interviews Bob Mitchell on Space Exploration Missions

Marina Koren, a staff writer for The Atlantic in Washington, D.C., interviewed BAHEP President Bob Mitchell regarding the NASA return to the Moon mission and related NASA missions. The interview will be incorporated into a future article for the magazine.

BAHEP’s Board Writes Letter to Federal Officials Regarding 501(c)(6) Nonprofits

BAHEP President Bob Mitchell and the Board of Directors wrote a letter to its congressional delegation thanking them for supporting the Cares Act but pointing out the significant oversight of not including 501(c)(6) nonprofits in the legislation. In part, the letter says, “Member organizations of the Bay Area Houston Economic Partnership, including the Clear Lake Area Chamber of Commerce, the League City Regional Chamber of Commerce, the Economic Alliance Houston Port Region, and the Greater Houston Partnership, as well as all organizations that encourage the economic vitality of the country which are 501(c) (6) nonprofits, were excluded from the Coronavirus Aid, Relief, and Economic Security Act or the ‘CARES Act’. Additionally, 501 (c)(6) nonprofits were left out of the ‘Paycheck Protection Program.’ “These are the very organizations that day in and day out support small businesses and economic development and that will be on the front line priming the region’s economic engines to restart the economy. If we allow these valuable organizations to cease operations during this time of crisis, it is our belief that this will have a considerable negative impact on the economy far into the future.”

BAHEP Writes Letters of Support for San Jacinto College Maritime Program

BAHEP President Bob Mitchell wrote letters to Sens. John Cornyn and Ted Cruz requesting their support for the FY2021 Maritime Administration Reauthorization Act. Mitchell wrote, “We respectfully urge you to support the Community College Maritime Career Training Grants Program as an essential effort to reskill and upskill the workforce as the nation prepares to return to the workplace.” The San Jacinto College Maritime Technology and Training Center is partially funded through this grant program. The college’s Maritime Program offers United States Coast Guard -approved and internationally-recognized Standards for Training, Certification and Watchkeeping maritime training and decklevel coursework for all professional mariners from the entrylevel deckhand on an inland towboat to Unlimited Tonnage Masters on the world’s largest ships. Engineering courses are available from engine room fundamentals to Qualified Member of the Engineering Department, Designated Duty Engineer, to Chief Engineer.

Bob Mitchell Explains Importance of SpaceX Launch During KPRC Channel 2 Interview

BAHEP President Bob Mitchell was interviewed by KPRC Channel 2 News on May 27, 2020, regarding the importance of the SpaceX launch of astronauts to the International Space Station. He explained that this was the first commercially built spacecraft to launch NASA astronauts into space and the first launch of American astronauts from U.S. soil in a decade.

Known as NASA’s SpaceX Demo-2, the mission was an end-toend test flight to validate the SpaceX crew transportation system, including launch, in-orbit, docking and landing operations. This was SpaceX’s second spaceflight test of its Crew Dragon and its first test with astronauts aboard, which will pave the way for its certification for regular crew flights to the station as part of NASA’s Commercial Crew Program.

Business Assistance

Project Wins for Bay Area Houston

BAHEP assists Axiom Space in bringing its headquarters campus to Houston Spaceport

From traditional economic development activities – job and wealth creation – to active development of regional, industry, and community partnerships necessary to sustain economic vitality, the Bay Area Houston Economic Partnership (BAHEP) has been the region’s go-to organization since 1976. Very often much of BAHEP’s work is conducted behind the scenes. Such was the case with two successful BAHEP projects – code names Axle 1 and Axle 2.

Until a project is finalized, code names are used in economic development circles to safeguard ongoing negotiations between all parties involved. BAHEP’s two Axel projects carried the code names for Axiom Space. On Dec. 22, 2020, Axiom Space announced plans to build a 14acre headquarters campus at the Houston Spaceport. Axiom Space’s campus will train private astronauts and begin production of its Axiom Station — the world’s first free-flying, internationally available private space station that will serve as a hub for research manufacturing and commerce in low Earth orbit, according to the Houston Airport System. The partnership between Axiom Space and the Houston Spaceport is expected to bring more than 1,000 high-paying jobs. BAHEP President Bob Mitchell joined Houston Mayor Sylvester Turner, Axiom Space co-founder and President/CEO Michael Suffredini, Houston Airports Aviation Director Mario Diaz, and Greater Houston Partnership President and CEO Bob Harvey at the December announcement ceremony held at Houston’s City Hall. Mitchell said, “The same great environment that produced so many technological advancements in Houston’s past is, once again, creating its next successful venture into space – Axiom Station – the world's first commercial space station. The synergies now being realized at the Houston Spaceport between Houston’s dynamic industry partners, its world-class training and academic providers, and its far-sighted community investors are not only benefitting Axiom but will only get stronger over time. We are all in this together, and the best is yet to come!” BAHEP’s role in this major project for the Houston Spaceport began in the spring of 2017 when discussions began with Alicia Woodley, chief counsel and director of Corporate Operations for Axiom Space. Axiom was considering Houston as its initial loca-

BAHEP President Bob Mitchell is shown at the Axiom Space announcement ceremony held Dec. 22, 2020, at Houston’s City Hall. Pictured behind Mitchell is Axiom Space co-founder and President/CEO Michael Suffredini. Houston Mayor Sylvester Turner (far left), Houston Airports Aviation Director Mario Diaz (behind Mayor Turner), and Greater Houston Partnership President and CEO Bob Harvey (not shown) provided comments as well. (Photo courtesy of the City of Houston)

tion and inquired about available economic development incentives.

Communications continued and escalated into the fall of 2019. BAHEP had provided information on incentives and real estate options. Axiom needed assistance in finding qualified candidates to work at its headquarters location. BAHEP connected Axiom with the Texas Workforce Commission and its local Workforce Solutions contacts. The company now has about 100 people working at its headquarters in Bay Area Houston and anticipates hiring another 100 by the end of 2021. Axle 1 was a big win for BAHEP and Houston.

Going forward, Axiom was in search of a location for a major production facility for aerospace structural components. BAHEP assisted the Houston Airport System and Axiom Space in the development of a Memorandum of Understanding which led to land lease negotiations that culminated in the 14-acre lease for Axiom’s headquarters campus at the Houston Spaceport. Axle 2 was a huge win for all involved! BAHEP continues to work with Axiom to assist and advise the company on various incentives and eligibility requirements that would enable Axiom Space to shorten its timeline to full operational capacity. “For 45 years now, BAHEP has worked closely with the aerospace community in Houston to help this very important industry cluster continue to be successful. We watched with pride as the International Space Station was built, and we still marvel at all the great medical research that is being conducted in its zero-G environment today. Axiom Space will take all of those great accomplishments to the next level with its Axiom Station,” Mitchell concluded.

Project 3D (Texas Injection Molding) is Win for Bay Area Houston

Project 3D, a retention and expansion project, is a win for BAHEP. Project 3D is the code name for Texas Injection Molding, which is building a new and larger facility, 65,000 SF, at Gulf 16 Point Business Park in Houston on the Gulf Freeway at Scarsdale. BAHEP started working with the company in 2017 to find a site for a new location. The company was unable to secure additional land for expansion at its current location in the Hobby Airport vicinity and needed to find a new location close to the existing facility for employee convenience. Its business is custom plastic injection molding services for OEM manufacturing and consumer products. The company has 95 employees and will invest $6.5 million on this project.

Project Exe is a Win for BAHEP

BAHEP assisted the Celanese Corporation with an expansion project at its Fairway Methanol facility located in Pasadena by working with the La Porte ISD to provide a tax abatement through Chapter 313 of the Texas Property Tax Code. This project was initiated in October 2018 and has grown over time to see a capital expenditure of approximately $400 million with 25 new jobs created. The project expands capabilities for acetic acid production and increases methanol production to 1.7 million metric tons per year – roughly 125% of the original capacity. “Celanese is pleased to deliver on a historic milestone achievement in methanol production using engineering leadership, manufacturing excellence, and chemical industry expertise,” said Senior Vice President Todd Elliott. “Methanol is a crucial raw material for the production of acetic acid and other key chemical products, and these expansions will enable Celanese to manage future productivity and growth configuration options for the world’s largest acetyl intermediates production facility, as well as the production network of Celanese acetyls plants globally.”

Commercial Space and Aviation Task Force Pursues Opportunities

The mission of the BAHEP Aerospace Advisory Committee is to advance and grow the region’s role in all facets of the aviation and aerospace industries, including NASA Johnson Space Center and human space exploration, through joint initiatives and focused advocacy. The committee decided that there should be a greater focus on recruiting commercial space companies to the

Houston region during its December 2019 meeting. This decision led to the AAC creating the Commercial Space and Aviation Taskforce.

The charge for the taskforce is to aggressively pursue economic development opportunities for the BAHEP service region in the commercial aerospace and aviation industry. Those opportunities would include, but not be limited to, job creation and business recruitment, as well as business creation, expansion, and retention.

Initial actions include the creation of marketing materials, engaging the governor’s office in aerospace marketing efforts, participating in more tradeshows and conferences, sharing information from members regarding prospects and programs that could enhance recruiting efforts, and developing agenda items for the upcoming Texas 87th Legislature in 2021.

Council of Mayors Address Local and State Issues

Local issues and state legislation were the topics of discussion for the Council of Mayors held on Jan. 22, 2020, hosted by BAHEP. At the local level, mayors discussed the need to address the appraisal of industrial sites. State level issues discussed included the erosion of local control, lobbying by state entities, and the sales tax ruling and associated tax collections. The mayors also discussed the critical importance of 2020 census data collection for the state, counties, and cities. The mayors decided that they need to attend select state legislature interim committee meetings as a group when issues are identified. Attendees: Mayors Michel Bechtel/Morgan’s Point, Jon Keeney/ Taylor Lake Village, Louis Rigby/La Porte, Thom Kolupski/ Seabrook, Julie Masters/Dickinson, Pat Hallisey/League City, Terri Gale/Kemah, Kurt Otten/Clear Lake Shores, and Galveston County Commissioner Ken Clark, and roundtable guest Mayor Pro Tem Sally Branson/Friendswood. BAHEP attendees were roundtable facilitator Glen Freedman, Ph.D., President Bob Mitchell, and Membership Director Harriet Pilgrim. Unable to attend: Mayors Mark Denman/Nassau Bay, Donna Rogers/ Webster, John Skelton/El Lago, Jeff Wagner/Pasadena, Jason Tabor/Santa Fe, and Mike Foreman/Friendswood.

BAHEP Participates in Houston City Council District E Initiative to Help Black-owned Businesses

BAHEP participated in a July 15, 2020, meeting of a collaboration between Houston Mayor Pro-Tem Dave Martin’s Council District E office and economic development organizations (EDOs) located in District E to address how the collaboration might help black-owned businesses in District E succeed and grow. This effort may be expanded to include other multi-cultural and minority-owned businesses in the future, but for now the focus will be on black-owned businesses.

EDOs participating, along with the District E staff and BAHEP, were the Clear Lake Area Chamber of Commerce, Lake Houston Economic Development Partnership (EDP), and Lake Houston Chamber of Commerce.

U.S. Space Command Recruitment

BAHEP Co-hosts Gen. John Raymond, USSF, at Civic Leader Breakfast

The Bay Area Houston Economic Partnership co-sponsored a Houston Civic Leader Breakfast, along with USO Houston, featuring Gen. John W. “Jay” Raymond, chief of Space Operations, U.S. Space Force (USSF) on Nov. 5, 2020, at the JW Marriott Houston Downtown.

The attendees included prominent military members, elected officials, business representatives, and civic leaders: Gen. Raymond and his staff; Col. Matt Barker, commander, Ellington Field Joint Reserve Base, and his staff; Capt. Jason E. Smith, U.S. Coast Guard Sector Houston-Galveston commander, and his staff; Congressmen Brian Babin, DDS, Dan Crenshaw, and Randy Weber; Jason Fuller, representing Sen. Ted Cruz; Houston Mayor Pro Tem David Martin; Mario Diaz, Houston Airport System director; and Arturo Machuca, general manager, Ellington Airport and the Houston Spaceport.

Mitchell took the lead in attaining support from Houston Mayor Sylvester Turner’s office as well as Gov. Greg Abbot’s office. The letter was then sent to the Secretary of the United States Air Force for consideration. BAHEP collaborated with the City of Houston, the Houston Airport System, and other stakeholders to develop the self-nomination letter for Mayor Turner. The Space Command headquarters currently resides in Colorado Springs, Col. Other organizations participating in the development of the reShown above (l to r) are: Dan Seal, executive director, Economic Development, Bay Area Houston Economic Partnership; Congressman Dan Crensponse included the City of Houston, Ellington Field military units, the Greater Houston Partshaw; Gen. John W. “Jay” Raymond, Chief of Space Operations, US Space nership, and NASA Johnson Space Center. Force (USSF); USO Houston Director Lorén Westerfield; Congressman Brian Babin, DDS; and Congressman Randy Weber. (Photo by Jason Fuller, office BAHEP Meets to Determine Next Steps for of Sen. Ted Cruz) Recruitment of U.S. Space Command and U.S.

Space Force Assets to Ellington Airport

BAHEP met with Houston Spaceport GM Arturo Machuca and In his speech, Gen. Raymond delivered eye-opening remarks de- Texas Military Preparedness Commissioner Tom Duncavage on scribing the need for, and the mission of, the USSF. He iterated April 7, 2020, to determine next steps in attracting the United that space is a war fighting domain, just like air, land, and States Space Force (USSF) assets to the Houston area. Houston’s sea. The primary mission of the USSF is to maintain, protect, military assets, federal agencies presence, and talented workforce and expand the U.S. fleet of advanced military satellites that form produce a unique synergy that should be attractive to the USSF. the backbone of U.S. global military operations. The USSF further organizes, trains, and equips space forces in order to protect Self-Nomination Letter Sent to Secretary of U.S. Air Force U.S. and allied interests in space and to provide space capabilities Representatives of BAHEP, the Houston Airport System, the to the joint force. Greater Houston Partnership, and NASA Johnson Space Center held a teleconference meeting with a representative from the BAHEP participates in development of response to U.S. Air United States Air Force Office of the Chief of Space Operations Force RFI on May 1, 2020, to discuss the best approach for recruitment of BAHEP, along with other stakeholders, participated in the devel- USSF assets to Ellington Airport. opment of a response to a U.S. Air Force request for information (RFI) regarding the recruitment of the U.S. Space Command and As a result of this meeting, the group agreed to develop an unsoits 1,400 military and civilian employees to Ellington Field. licited proposal and marketing material to attract United States Space Force assets to Ellington Airport. BAHEP, HAS, and GHP The Secretary of the Air Force released criteria for a self- worked on marketing material focused on the available assets nomination process to site the headquarters for the U.S. Space and capabilities in the Houston area and how these contribute to Command and U.S. Space Force assets. BAHEP President Bob meeting key national interests for distribution to entities that may advocate on behalf of Ellington Airport.

Local Congressional Delegation Sends Letter to Secretary of U.S. Air Force

BAHEP was asked by Congressman Brian Babin, DDS, to provide information for a letter that was sent to Secretary of the U.S. Air Force Barbara Barrett on June 19, 2020, by the local congressional delegation that outlines the reasons for Ellington Airport becoming the home of the U.S. Space Command. BAHEP provided information on the Houston region’s educational systems, the available workforce, Ellington Field military assets, NASA Johnson Space Center, and the local aviation and aerospace industry all of which provide a strong rationale for locating the space command in Houston. The letter, organized by Congressmen Brian Babin, DDS, and Pete Olson, was co-signed by U.S. Reps. Sheila Jackson Lee, Kevin Brady, Al Green, Michael McCaul, Lizzie Fletcher, Randy Weber, Sylvia Garcia, and Dan Crenshaw.

Bay Area Houston Advanced Technology Consortium (BayTech)

What is BayTech?

BayTech was formed by BAHEP and has built a network of partners across multiple industries and academia, creating a resource pool which will be drawn on as collaborations are identified and research funding is pursued. BayTech’s goals are to 1) acquire public and private research and technology development funding for the Bay Area Houston region; 2) secure customers for, and provide simplified access to, NASA Johnson Space Center’s capabilities and facilities through its Space Act Agreement; and 3) pursue partnerships to support technology development.

BayTech Supports NASA Johnson Space Center Test Facility

By the end of calendar year 2020, BayTech will have executed approximately $47,000 in agreements with commercial companies for their use of NASA Johnson Space Center (JSC) capabilities. The customers that BayTech is supporting with this work include traditional aerospace organizations and suppliers and oil & gas service companies. NASA JSC was at Stage 3 support (essential personnel only onsite with most working remotely due to the COVID-19 pandemic) until Oct. 19 when the Center returned to Stage 2, allowing some workers to return onsite. This impacted BayTech’s ability to utilize NASA JSC services since mid-March 2020, and as a result, some potential business discussions were put on hold. These included discussions with Samtec Inc., to determine if BayTech can support its component testing needs, and LDARTools about providing thermal vacuum testing for a component. Both of these companies were able to find alternate support for their testing needs. Since late July, NASA JSC has been able to offer some of its electronic workmanship training classes in a virtual, online manner, and since mid-October, JSC has been able to host limited in-person classes. Prior to the pandemic, BayTech was in discussions with the NASA JSC Human Health and Performance (HH&P) Directorate and the University of Texas Medical Branch (UTMB) to identify areas of common research interest in human exploration activities. Due to the pandemic, these discussions are on hold. At a later date, BayTech will return to these discussions to identify common research interest areas and to facilitate research collaborations as well as to discuss the potential for utilization of the HH&P state-of-the-art biomed labs by UTMB bio-technology startup organizations.

BayTech Prepares Proposal for Certified Manufacturing Technician Training

BayTech has prepared a proposal to submit for a Wagner-Peyser grant to offer certified manufacturing technician training to unemployed high school graduates and others. The federal government funds the Wagner-Peyser grant through the Texas Workforce Investment Council of the Texas Governor’s Office, and then it is administered by the Texas Workforce Commission for workforce training and job placement services. The certified manufacturing technician training will be delivered by the San Jacinto College EDGE Center located at the Houston Spaceport. Students who complete the training will be awarded a nationally-recognized certification as a manufacturing technician through the Manufacturing Skills Standards Council (MSSC). The BayTech team will then work with its industry partners to place 19

these individuals into a fulltime job as a certified manufacturing technician. BayTech has not yet submitted the proposal to the Texas Governor’s Office as that proposal solicitation is on hold while the State of Texas deals with the COVID-19 pandemic. It is anticipated that the proposal solicitation will be reopened by the Texas Workforce Investment Council in the spring/summer of 2021, and at that time, BayTech will submit its proposal.

BayTech and its Partners Pursue Collaboration Opportunities

BayTech serves on the Advisory Board for the University of Houston-Clear Lake College of Science and Engineering. The advisory board provides guidance as the college develops new curriculum, programs and labs with a focus on keeping university coursework relevant and up-to-date. BayTech also serves on the College of the Mainland (COM) Advisory Council for Computer Information Systems and Networking. This council will guide the college as it develops an Associate of Applied Science (AAS) degree in Computer Programming and curriculum for a COM cybersecurity program with an emphasis on an organizational risk management approach. Additionally, BayTech serves on the San Jacinto College Aerospace & Aviation Industry Advisory Board which has been advising the new San Jacinto College EDGE Center on the appropriate advanced manufacturing training curriculum and cost.

Space Alliance Technology Outreach Program (SATOP)

The Space Alliance Technology Outreach Program (SATOP) provided free technical assistance to small Texas business owners, start ups, and entrepreneurs during the year with thanks to the Texas Legislature for funding this highly successful program. SATOP, administered by the Bay Area Houston Economic Partnership (BAHEP), provided technical assistance to small business owners seeking solutions to challenges that obstructed progress in the completion of new and innovative products. The Texas A&M Engineering Experiment Station (TEES) recently partnered with BAHEP allowing SATOP to leverage the strengths of TEES’ engineering and academic professionals to resolve technical challenges faced by small businesses. Small business owners and entrepreneurs that struggle to complete the development of their new, innovative products are matched by SATOP with one of its Alliance Partners to provide the needed technical solutions. More than 800 small businesses across the State of Texas have been helped by SATOP since its inception, creating new jobs, capital investment, and facility expansion. SATOP’s Alliance Partners listed below allow their engineers and faculty members to volunteer their time to help small business owners overcome technical challenges. SATOP’s success would not be possible without its Alliance Partners’ participation and the dedication of these organizations to community outreach. Alliance Partners: Barrios Technology, The Boeing Company, College of the Mainland, Design By Analysis, GeoControl Systems, Jacobs, KBR, MEI Technologies, MRI Technologies, NASA Johnson Space Center, New Mexico State University, Oceaneering Space Systems, San Jacinto College District, Texas A&M University at Galveston, and Texas A&M Engineering Experiment Station.

SUCCESS STORIES

SATOP Helps Light Up Aviation Cockpits

David Simeur, FLITELite president, needed assistance in the design and development of a prototype for an innovative removable LED (MOLLE) flashlight for attachment to aviation cockpit tablets which would enable pilots wearing night vision goggles to view other materials with a compatible light source. Simeur had developed a rough prototype of the LED attachment using injected molded plastic components; however, he concluded that the attachment needed to be a softer material such as liquid injected silicone rubber (LSR) to provide additional shock resistance and to increase design flexibility.

The El Paso Hispanic Chamber of Commerce referred Simeur to SATOP for assistance. Yu-Ping Tang, Ph.D., an engineer with SATOP Alliance Partner New Mexico State University, accepted the challenge and provided several different design solutions to Simeur. Tang used 3-D modeling to make design improvements that accommodated the material change to LSR while providing protection to the internal electrical components. Additional design improvements resulted in a more user-friendly device allowing for easier access for pilots that wear gloves to change the battery and operate the on/off switch.

Simeur expressed his appreciation for Tang’s detailed work by saying, “This has allowed FLITELite to develop a prototype that will lead to the manufacture and sale of our new product.”

SATOP Assists in Design of Novel Footwear Insert

Kevin Selva needed assistance in narrowing the selection of the proper material for his novel footwear insert. The material needed to be resilient, elastic, and have a lifetime of five to 10 years for a user weighing up to 250 lbs. Selva sought assistance from SATOP after learning about the program through the Houston Inventors Association.

Yu-Ping Tang, Ph.D., an engineer with Alliance Partner New Mexico State University, developed a 3-D model of the footwear insert designed by Selva and then conducted a series of finite element analyses (FEA) to refine the insert design to keep within the stress and weight constraints of the selected material, an aluminum alloy. The FEAs narrowed the material type to a specific aluminum alloy. Tang refined the insert design to include drilled holes to reduce weight and recommended additional modifications that would ensure comfort for the footwear user. His material selection and design modifications allowed Selva to stay within the cost constraint of the footwear insert. The material recommended will allow for longterm comfort and durability while maintaining a price point that is reasonable for consumers.

Selva summed up Tang’s analyses, material selection, and design modifications by saying, “SATOP did a great job by offering assistance through Dr. Tang, an expert specialized to address the niche technical challenges that we faced. The comprehensive study of our product and offered solutions were instrumental in solving the problems presented.”

BAHEP Turns Challenges into Opportunities

As this annual report is being written, newly-developed vaccines against COVID-19 have been revealed whose high efficacy rates in large patient studies have renewed hope that this unseen enemy will soon be defeated. Although 2020 presented more challenges than ever could have been imagined just one year ago, it also offered opportunities to join together as a community, a region, a state, a nation, and a world to solve enormous problems. The Bay Area Houston Economic Partnership is incredibly thankful for the contributions of its members and regional partners who have been instrumental in supporting BAHEP’s initiatives throughout 2020. Economic development does not and cannot cease when the way forward is paved with uncertainty. Entering its 45th year of service to the people and businesses of Bay Area Houston, BAHEP remains Resilient in the Face of Adversity continuing its work to strengthen and build upon the firm foundation of the region’s economy.