2018
ANNUAL REPORT
BROWNWOOD MUNICIPAL DEVELOPMENT DISTRICT www.brownwoodbusiness.com
It is the mission of the Brownwood Municipal Development District (BMDD) to aid the City of Brownwood and private or public entities in making the community a better place to live, work, visit and do business. In so doing, the BMDD may help develop and finance permissible projects that benefit, strengthen, and diversify the economic base of Brownwood. The BMDD maintains focus on both economic and community development, as these elements must work together for the community to thrive and grow.
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Table of Contents p.
04
OUR VALUE
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08
ECONOMIC INDICATORS
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EMPLOYMENT STATISTICS
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17
ANNUAL BUILDING VALUATION
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21
MARKETING & PROMOTION
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05
KEY SERVICES
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10
SALES TAX
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15
REAL ESTATE & CONSTRUCTION
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18
COMMUNITY PARTNERS
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22
OVERVIEW
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06
BOARD OF DIRECTORS AND STAFF
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12
NEW BUSINESS ACTIVITY
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16
HOTEL OCCUPANCY
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20
BUILDING IMPROVEMENT INCENTIVE PROGRAM
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CLOSING
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Our Value The Brownwood Municipal Development District (BMDD) dedicates resources to several priorities to help maintain sustainable growth in the community. These priorities work together for overall local economic growth.
Industrial Development
The BMDD offers help to new industry entering the local market and works closely with existing industry to help with business retention and expansion. The BMDD can assist with workforce development, infrastructure improvements, job creation or retention and major expansion or development projects.
Priorities
Commercial Development
With the help of several programs, the BMDD can help new businesses enter the market or existing businesses to expand. Programs such as the Building Improvement Incentive Program, Downtown Revitalization Initiative, development and infrastructure incentives, entrepreneurship and small business support and more can assist a wide variety of businesses.
Community Development
The BMDD continues to support multiple community development projects to help improve quality of life and the economy of Brownwood. Development of a new event center is a current priority. Resources are also being allocated for the development of new residential areas, parks improvements, beautification projects and downtown redevelopment.
Marketing/ Promotion
The BMDD works closely with partner organizations to help market Brownwood as a great place to live, work, visit and do business. Development of the Visit Brownwood campaign, sporting event recruitment and retention program, retail recruitment, and relocation assistance all help to tell the great story of Brownwood, Texas.
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Missions
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Continue to be the central contact for
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Invest in new residential developments.
economic development activities in
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Retail recruitment.
Brownwood.
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Continue to market Brownwood to
Offer support to existing industry for
industrial, retail, and other prospective
business retention and expansion. •
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Explore and expand workforce
businesses. •
of Commerce to continue the Visit
Brownwood.
Brownwood campaign.
Continue to support entrepreneurship and
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enhance small business resources. •
Look for opportunities to create and retain Continue to support sporting event recruitment and retention.
Expand the Building Improvement Incentive Program.
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jobs. •
Partner with Brownwood Area Chamber
development and skills training in
Promote and revitalize Downtown Brownwood.
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Explore new community development opportunities.
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Annual Report 2018
Key Services The Brownwood Municipal Development District provides key services to promote economic growth and sustainability.
Loans & Incentives
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We offer assistance to many sizes and types of businesses looking to grow and expand their
Consultation & Education
2
We can walk through the process of starting or expanding a business
operations in Brownwood,
and connect anyone with
Texas.
an array of business resources.
Marketing & Promotion
3
Promoting the community successes to new
Site Selection
4
Finding the perfect location for a business is a key step to success.
businesses, residents and
Our real estate resources
visitors is an important
and expertise can help.
component of economic development.
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Board of Directors The Brownwood Municipal Development District is governed by a 5-member Board of Directors who are appointed by the City Council. BMDD board meetings are held on the third Tuesday of each month at 1:30 p.m. in the City of Brownwood Council Chambers located 501 Center Avenue.
DANIEL HUDSON President
MARK BESSENT Vice President
MARISHA STIDOM Secretary
Vice President, Texas Bank
Attorney and CPA, Mark T. Bessent Law Firm
Human Resource Manager, Superior Essex
TIM JACOBS Board Member
RYAN REAGAN Board Memeber
Owner/Pharmacist, Jacobs Pharmacy
Financial Advisor, Edward Jones
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Annual Report 2018
Staff
Ray Tipton Executive Director
Marshal McIntosh Assistant Director
Ashley Jaynes Executive Assistant
rtipton@brownwoodtexas.gov
mmcintosh@brownwoodtexas.gov
ajaynes@brownwoodtexas.gov
325.646.9600
325.641.3745
325.646.1637
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ECONOMIC INDICATORS
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Sales Tax $ 5,397,478
$1,725,504 ECONOMIC DEVELOPMENT
CITY OF BROWNWOOD
The City of Brownwood receives 1.5% of the 2% local sales tax for the city budget.
The Brownwood Municipal Development District receives .5% of the 2% local sales tax for economic development.
City Collection
BMDD Collection
Total
January
$412,647
$130,941
$543,588
February
$591,569
$184,870
$776,439
March
$382,038
$124,092
$506,130
April
$350,685
$120,626
$471,311
May
$559,252
$173,632
$732,884
June
$452,510
$134,320
$586,830
July
$400,503
$137,306
$537,809
August
$518,831
$162,737
$681,568
September
$414,445
$138,748
$553,193
October
$413,272
$135,831
$549,103
November
$486,117
$149,892
$636,009
December
$415,609
$132,509
$548,118
$5,397,478
$1,725,504
$7,122,982
TOTALS:
The Texas Comptroller reports monthly sales tax. Monthly reports reflect activity from two months prior, meaning that January numbers represent November sales activity.
$ 7,122,982
Total sales tax collections for City of Brownwood and Brownwood Municipal Development District in 2018
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Annual Report 2018
2018 Sales Tax Collections - Economic Development
2018 Sales Tax Collections City & BMDD Sales tax base continues to grow. Since 2013 sales tax colletions have increased approximately $1,000,000.
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New Business Activity Certificates of Occupancy (CO) for commercial properties are issued for new buildings or after a remodel, expansion, or a change in classification. In 2018, 37 commercial COs were issued, of which 23 were for new businesses. Sales tax permits are issued by the State Comptroller’s office to individuals or businesses engaging in sales. The difference in sales tax permits over COs indicates the large number of “home based� or non store-front businesses applying for permits. Sales Tax Permits Inactivated represents businesses that are no longer in business due to either it changing ownership or closing down the business completely. Historically, a slow economy encourages entrepreneurism and small business start-ups.
Commercial COs & Sales Tax Permits
Annual Report 2018
BROWNWOOD, TEXAS RETAIL MAP
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Employment Statistics A major indicator of employment data is unemployment claims. In 2018, Brown County’s unemployment rate was once again lower than state and national figures. The 2018 average unemployment rate for Brown County was 3.74%, which was lower than the Texas average of 3.86%, and lower than the national average of 3.9%. A low unemployment rate is a positive indicator of a stable economy.
Businesses and Jobs Brownwood had a total of 1,564 businesses. In 2018, the leading industries in Brownwood were Manufacturing (2,667 jobs), Health Care / Social Services (2,661 jobs), Retail (2,100 jobs), and Education (2,081 jobs).
The Texas Workforce Commission reports Brown County employment information monthly, based off of data from the Bureau of Labor Statistics.
Annual Report 2018
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Real Estate & Construction There 413 residential real estate sales in 2018. Resulting in a 5.32% increase compared to real estates sales in 2017. Residential sales are tracked by the Heartland Association of Realtors.
Closed Real Estate Sales
Residential Certificates of Occupancy Certificates of Occupancy (CO) for residential properties are issued for new residential construction or substantial renovation. In 2018, 27 residential COs were issued inside the city limits, 15 of which were new construction. Certificates of Occupancy are issues by the City of Brownowod Development Services Department, and represent activity inside the city limits.
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Hotel Occupany Local Hotel Occupancy Tax is 7% in the City of Brownwood and reflects leisure and business travel in the area. The local Hotel Occupancy Tax collected in 2018 totaled $328,115.16. The local Hotel Occupancy Tax is collected by the City of Brownwood for hotels and motels indside the city limits.
Sports Tourism generated $862,744 in estimated economic impact and accounted for 2,071 hotel room nights. Events brought in over 13,000 visitors/spectators to various sporting events.
Annual Report 2018
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Annual Building Valuation Annual Building Valuation is tracked by the the City of Brownwood Development Services Department and represents residential, commercial, and infrastructure construction inside the city limits. In 2018, The City of Brownwood Annual Building Valuation totaled $10,097,289.
Indian Creek Townhomes recieved their final COs for their 122 unit townhome development. Hendrick Medical Center held a ground breaking ceremony in April, an $11 million development in our medical district located next to their newly built surgery center.
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COMMUNITY PARTNERS
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Local Partners Brownwood ISD Brownwood Area Chamber of COmmerce Brownwood Arts Council Brownwood Lyric Theatre Brownwood Industrial Foundation Contral Texas Opportunities (CTO) Small Business Development Center City of Brownwood Brown County Howard Payne University Texas State Technical College (TSTC) Ranger College
Partnerships and collaboration are the backbone of success in economic development. One thing that sets Brownwood apart from other communities is the strong community partnerships, which gets noticed when dealing with out-of-town developers and companies. Strong ties with the local chamber of commerce, school districts, community groups and nonprofit corporations all help to grow the economy and make Brownwood a great place to live, work, visit, and do business. ________________________________________ Regional: West Texas Energy Consortium, Texas Midwest Community Network, Workforce Solution of West Central Texas, Central Texas Council of Governments State and National: Texas Economic Development Council, International Convention of Shopping Centers
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Building Improvement Incentive Program The purpose of the Building Improvement Incentive Program is to provide an incentive to business and/or property owners to encourage renovation and rehabilitation of commercial buildings in the City of Brownwood. Funding for the program is provided by the Brownwood Municipal Development District (BMDD). This program aims to improve the aesthetics within the City of Brownwood since attractive and updated commercial buildings positively impact the marketability and perception of the city. Thus, the Building Improvement Program consists of a match of up to $20,000.00 for approved improvements. Incentives will be awarded for commercial building improvements that restore, rehabilitate, enhance or beautify a structure. The program does not include residential housing of any kind whether owned or rented. The program will be administered by the Brownwood BMDD. An application form is to be submitted with a description of the work to be completed. Applications will be reviewed by the BMDD Board of Directors.
Funded 9 BIIP projects in 2018 calendar year totaling $127,146 in BMDD funding resulting in $513,425 in private investment. PROJECTS INCLUDED:
The Vault Jennifer Broughton Edward Jones Echo Wireless Glamour Shop Blevins Body Shop Crossfit Brownwood Jack-a-Don Teddy’s Brewhouse* (still in progress)
Program Goals
Additional projects have been submitted and are in the early phase of renovation and have not been included in calculations.
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Revitalize and improve the appearance of Brownwood commercial buildings to positively impact the aesthetics, marketability, and perception of the City of Brownwood while revitalizing downtown and major thoroughfares.
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Serve as a catalyst for continued private sector investment through visible improvements
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Offer the private sector an incentive program to invest in Brownwood commercial buildings
Annual Report 2018
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Marketing & Promotion •
Attended the International Convention of Shopping Centers (ICSC) trade show in Dallas with the Brownwood Area Chamber of Commerce as well as year-round retail recruitment efforts with site selectors, brokers and developers.
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Attended Retail Live, in Austin Texas to meet with brokers, landlords, developers, and other related retail industry professionals who attend the program to present their projects. This allows us to network directly with retailers actively expanding in Texas and to continue to promote retail growth in Brownwood.
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Redesigned our economic development website, www.brownwoodbusiness.com, to be more user friendly, and mobile responsive. Our website serves as our visual gateway to promote the business advantages in Brownwood, Texas.
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Continued to utilize Facebook, YouTube, Twitter, Instagram and LinkedIn Business Page as social media communication platforms.
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Improved communication by continuing to grow mass e-mail campaign via MailChimp.
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Heavily focused on Downtown promotion, layering economic incentives with visual marketing to help change perception, and promote the rebirth of downtown.
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Half page ad in Texas Wide Open for Business magazine, the official Economic Development magazine of the State of Texas and quarter page ad in Brown County Living magazine.
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Lead for new tourism website, Facebook, and Instagram for Visit Brownwood campaign to attract additional tourism, and promote Brownwood as a tourism destination at the top of the Texas Hill Country.
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Began launching a series of videos to promote shopping local, economic development highlights, and tourism.
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OVERVIEW Brownwood Municipal Development District (BMDD), a political subdivision of the State of Texas and of the City of Brownwood, Texas is funded by a ½-cent sales tax for the purpose of financing economic development, diversifying the economic base of the community, and improving quality of life. The BMDD was created under Local Government Code Chapter 377, Municipal Development Districts. The past year was the second full year of operation for the BMDD. Sales tax revenues performed above the previous year and budget projections because of reinstatement of sales tax for communications and increased sales in the retail sector. The BMDD continues the maintenance of several loans assumed from the former Brownwood Economic Development Corporation (BEDC) as well as the continued administration of incentives assumed from BEDC, but several of these are coming to an end. The BMDD has seen success with the Sports Coordinator position and the Building Improvement Incentive Program and looks to expand each as well as infrastructure incentives for the development of new residential subdivisions. The BMDD is continuing to budget for and anticipate support for major employers and workforce training in the community. Early stages of
FY 17/18 Financials
planning for new event facilities are also being explored.
• The District’s net position was $7,675,214. • The District’s total revenues were $1,882,667 while total expenses were $893,473. • The District’s net position increased by $989,194.
Brownwood, Texas
Welcome to the best of both worlds - high tech manufacturing and hamburger joints; international business and Friday night football; multimillion dollar deals and downtown parades; excellent logistics and easy access. Centrally located to major markets, we invite you to discover what makes Brownwood a place you and your business can call home.
Annual Report 2018
In Closing In 2016, the voters of Brownwood elected to convert their economic development organization to a Municipal Development District. This allows a more flexible and well-rounded approach to economic development. Part of the promise to the public during this conversion was to focus on new areas such as housing, downtown re-development and solutions to an event center. The Brownwood Municipal Development District has made some great progress in these areas as well as maintaining focus on traditional economic development needs such as manufacturing jobs, workforce development, targeted infrastructure projects and more. We are committed to growing the Brownwood economy in all of these areas to help further improve the community.
Brownwood Municipal Development District 501 Center Avenue Brownwood, Texas 76801 Phone: 325.646.9600 bmdd@brownwoodtexas.gov www.brownwoodtexas.gov
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Brownwood Municipal Development District
Annual Report
Year 2018
www.brownwoodbusiness.com