Progress16: Business & Industry

BizINDUSTRY Section:Layout 1

2/23/16

11:21 AM

Page 1

Saturday, February 27, 2016

Business and Industry

Bring on the expansion Athens Industrial Park expanding, bringing more jobs to city

By Rich Flowers NEWS EDITOR

You may not notice while going about your everyday routine, but some pretty ambitious companies are doing business in Athens.

At the forefront are manufacturers that have sprung up over the past few years in the Athens Industrial Park.

The Athens Industrial Park, located not far from State Highway 31 on the eastern edge of the city has been the scene of innovative businesses in recent years.

The park is currently the home of Schneider Electric, FutureMatrix, Med-Logics, Howard Measurement, Steritec, Med Tex Converters and West Pharmaceutical.

Now, with the original Industrial Park developed, work is under way on Industrial Park Phase 2.

In 2013, Athens Economic Development Corporation was faced with a lack of suitable

Industrial Park Tenants • Schneider Electric • FutureMatrix • Med-Logics • Howard Measurement • Steritec • Med Tex Converters • West Pharmaceutical properties to attract businesses seeking to locate into the city.

A strategic plan was devised to help guide the AEDC going forward.

“This was part of the strategic plan, going forward, to be able to have control of property.” Economic Development Corporation Executive Director Lisa Denton said. “It is vital, because in this area we do not have a lot of existing buildings to offer clients.”

See PARK, Page 4

Schneider Electric is just one of several major employers housed in the Industrial Park.

Petroleum exploration has great future, despite dip

Inside

By Jeff Riggs ASSOCIATE EDITOR

Oil and gas production is strong in the county.

Within about half a decade, Henderson County has grown in certain areas of endeavor. Many new businesses have come into town, and manufacturing has continued at a favorable rate.

Something that is a surprise to some residents, which has made its mark in different parts of Henderson County, has been the production of petroleum products, including oil and gas. Several wells have been established over the county, but there has been a noticeable mass in the area on both sides of Farm-to-Market 1615, southeast of the city of Athens.

In that area, Precinct 4 County Commissioner Ken Geeslin said that just last year, a massive collection point for petroleum gas

“We are pleased and satisfied with the results we have had with oil, natural gas and natural gas liquids.”

– Carl Pendley, O’Brien Energy Co. has been built on County Road 4402, just off Farm-to-Market 2588.

“They installed road bores last year, with boring under the road with pipeline. There was a lot of flaring on 1615,” Geeslin said.

“They went ahead and put in Geeslin a pipeline from 1615 from all those locations that were flaring, and captured that gas. They put in the pipeline and

took it over to 4402.”

Geeslin said the great project bringing money into the county also has had residents of the area concerned about road problems caused by large, heavy 18-wheel tankers transporting petroleum over their roadways, along with other problems.

“One of the issues we have had is road problems, but we weren't going to go out there while they are working. When they are finished, we will do it,” Geeslin said.

Real estate markets in Henderson County are rebounding • Page 3

See PETROLEUM, Page 6

Chandler is booming with growth, both retail and residential • Page 10

County agribusiness on the move

By Rich Flowers NEWS EDITOR

In the frontier days of Henderson County, agriculture meant raising a few hogs, chickens and crops to raise the family.

Today, agriculture has grown into big business in the county.

Most years, the earnings collection of beef cattle, nursery crops, fruits and vegetables, hay production, timber and horses top $100 million.

Even so, more than 95 percent of Henderson County farms are

“There continues to be a movement back toward truck farming, small scale farming and families that want to get back to agriculture.”

– Rick Hirsch, Agrilife Extension Agent owned by a family or individual.

Several have been in possession of the same family for more than a century.

Henderson County Agri-Life Extension Agent Rick Hirsch said the production of beef cattle con-

tinues to lead the way. Forages, like hay and silage are also longtime cash crops.

Today Hirsch sees the poultry industry making gains in the county.

“The new thing is going to be

poultry,” Hirsch said. “We have quite a few poultry producers that are building in the county because of the Sanderson complex.”

Sanderson Farms has major poultry facilities in the Anderson County area. To supply their operation, the company needs hundreds of poultry houses within a 50 mile radius of Palestine.

“I think we're going to get more producers as time goes on,” Hirsch said. “Those will be in the

See MOVE, Page 6

Like extreme sports?

Check out what is made right here in Athens.

• Page 7

Special Section

BizINDUSTRY Section:Layout 1

2

2/23/16

11:22 AM

Saturday, February 27, 2016

Page 2

Business & Industry

BizINDUSTRY Section:Layout 1

2/23/16

11:23 AM

Page 3

Business & Industry

Saturday, February 27, 2016

3

Real estate markets

rebounding Homes in Texas, Henderson County in demand as trend is expected to continue

By Kathi Nailling STAFF WRITER

In 2012 the real estate market seemed to have bottomed out for Henderson County. The market continued to fall in 2013, but in the beginning of 2014 local realtors were sighing relief that the market could possibly be turning around. The hope was it was bouncing back from the recession the market had been suffering from.

According to the Texas Association of Realtors website, Texas homes were in demand statewide in 2015, and even though the number of homes on the market is rising, it’s still relatively low at only 4.0 months’ worth of housing inventory.

There may be increased competition among homebuyers in markets with fewer homes for sale, which means sellers could see multiple offers or offers above their asking price.

This news is a far cry from three years ago, even with some positive signs in 2012, the overall market remained over-saturated

and underperforming.

Some of the real estate news from 2010 include a record year for foreclosures. Roughly 1 million homes were foreclosed during that year – that's one in every 45..

In 2011 the real estate market was not much better. Data released indicated U.S. home owners had a massive $750 billion in negative equity.

Mortgage interest rates fell to new lows through the fall of 2011, but reached a record low in October 2011.

Now in 2016 the accolades just keep piling up for the Dallas-Fort Worth region. It was one of the top real estate markets in 2015, which comes as no surprise to area home owners who have watched this region gain momentum with its top-rated local economies and potential for growth and expansion.

Here in Henderson County there have been ups and downs in the market. Real estate sales in the county have now finally come full circle. After a declining mar-

Home sales volume increased 26.7 percent from 2014 to 2015 in Henderson County. Realtors expect that number to climb again in 2016 with several cities witnessing an increase in the amount of new homes being constructed. ket, local realtors can now see an opening at the end of the tunnel.

The fourth largest lake in Texas, Cedar Creek Lake is 32,623 acres, 18 miles long and offers 320

miles of shoreline. The widest point of the lake is 8.5 miles and the deepest is 53 feet. And real estate seems to be booming.

Selling real estate at Cedar

Creek Lake has always depended primarily on lake levels. And for the first time in three years the lake is full.

Angie Tulley, past president of the Henderson County Board of Realtors and a agent with McAtee Real Estate in Gun Barrel City said, “The Cedar Creek Lake area is currently experiencing more activity than we have seen the past 5 years primarily due to the lake being full (coming out of a prolonged drought).

“I anticipate this trend to continue through 2016 and depending on the lake level, several years in the future, after that it becomes harder to forecast.

“If you look back in time say 5 years ago to 2010 there was $139,231,516 total sales volume of waterfront residences per the Henderson County Multiple Listing Service compared to 2015 waterfront residences sales volume of $196,575,710 or roughly 41 percent increase in sales volume. In that

See TREND, Page 8

BizINDUSTRY Section:Layout 1

4

2/23/16

11:24 AM

Page 4

Saturday, February 27, 2016

Business & Industry

Park development set in two phases, businesses still needed Continued from 1 After about a year of searching and evaluating land, the AEDC found an ideal solution in two tracts of land, totaling about 98 acres just west of the existing industrial park.

At a cost of $859,500 a deal was struck for the property.

AEDC President/CEO at the time, Brian Malone said the pieces of land were attractive for a number of reasons.

Athens has its share of rolling hills and a large company needs plenty of space.

The relatively flat terrain of the land can be an asset for a manufacturer wishing to relocate to the city, or an existing plant to expand.

Another huge advantage of the tracts was the availability of utilities running up to the property.

“In my years of economic development, we’re blessed to have more utilities on line, more utilities next door than you can imagine,” Malone said.

“I’ve developed sites of 350 acres that had no utilities and those can be quite challenging.”

The AEDC decided to approach development of the property in two phases.

The north portion, covering about 20 acres, was chosen to be prepared first.

The board approved $409,632 from Timberline Construction of Lufkin for the streets, and a bid of $227,223 from Duplichain Contractors of Alto to construct the water and sewer lines.

“It gives us some good assets to go out and let them know that we do have areas for them to locate their business,” Denton said.

“That's kind of our raw land inventory, aside from at the airport.”

Denton said it's important for AEDC to have the property ready to go when a potential business is located for the park.

“Consultants and businesses really want to see the EDC having control of it, so they know they're not going to go through the phase one environmentals.

Those are done,” Denton said.

Enterprise Drive, which connects the original Industrial Park to Farm-toMarket Road 1616, has been extended to the west to access the north part of Phase 2.

“The future plan was intended to finish that road and eventually bring it on back around to 1616,” Denton said. “We're going to have to get some businesses in and sell some property to be able to fund that. We would also come in later to access the south property with another road that can be extended out to Old Tyler Highway.”

The roads would provide additional entrance and exit points for the Industrial Park, which has been an issue,” Denton said.

Industrial Park is home to Foreign Trade Zone No. 269 The Athens Foreign Trade Zone No. 269 was created as a General Purpose Foreign Trade Zone in April 2006 by the United States Department of Commerce's Foreign Trade Zone Board.

This zone is located inside the Athens Industrial Park.

The Athens Economic Development Corporation serves as the Zone's Grantee and is responsible for its general management and the marketing of the zone.

The Foreign Trade Zone (FTZ) program was created by the U.S. government to facilitate international trade and increase the glob-

al competitiveness of U.S.-based companies. The program, which has existed since the 1930s, continues to thrive and change to better meet the needs of American companies in the global economy.

What is an FTZ? An FTZ is an area within the United States, in or near a U.S. Customs port of entry, where foreign and domestic merchandise is considered to be outside the country, or at least, outside of U.S. Customs territory.

Certain types of merchandise can be imported into a Zone without going through formal Customs entry procedures or paying import

duties. Customs duties and excise taxes are due only at the time of transfer from the FTZ for U.S. consumption.

If the merchandise never enters the U.S. commerce, then no duties or taxes are paid on those items.

Activities Permitted in a Foreign-Trade Zone Merchandise entering a Zone may be: • Assembled • Tested • Sampled • Relabeled • Manufactured* • Stored

• Salvaged • Processed • Repackaged • Destroyed • Mixed • Manipulated *The user must receive special approval from the FTZ Board for manufacturing.

Operating within an FTZ carries numerous benefits: •Deferral, reduction and possible elimination of duties.

•Tighter inventory control that may virtually eliminate year-end inventory loss adjustments.

•Potential direct delivery benefit reduces long hold times at crowded ports of entry.

BizINDUSTRY Section:Layout 1

2/23/16

11:24 AM

Page 5

Business & Industry

Saturday, February 27, 2016

5

BizINDUSTRY Section:Layout 1

6

2/23/16

11:25 AM

Page 6

Saturday, February 27, 2016

Business & Industry

Petroleum producing leases in county top 400 Continued from 1 “And, if you do approach them about it, and fix the roads, it will tear up again. With all the rain, we couldn't start road upgrade projects at the time we were going to do it.”

Geeslin said that one of the worst damages to roads was on CR 4524. One landowner residing on that road has sold their property and moved away.

“They were upset with flaring and smell,” Geeslin said. “It involved about three different properties in the 2014 time frame.

Folks are also sad about 4528 and 4600. I called them, and basically demanded companies fix what they had torn up. They sent a crew out, and assisted us in repairing it. They had destroyed the base of the road with their overweight trucks, and there were those heavy rains.”

Geeslin said that one of the companies that has done well with the county is O'Brien Energy Company, based in Shreveport, Louisiana.

“O'Brien has been pretty good to work with, as they have paid some money to the county for 4528, $60,000 and for 4600, $50,000,” Geeslin said. “The projects will improve income of a lot of landowners. If oil prices go back up, with minerals taxed, there would be money coming into the county. About 15 years or so ago, when they discovered oil in the Poynor area, the pump oil fields had been a pretty good revenue generator for Poynor and LaPoynor ISD. There is benefit to property owners and to the county and the ISD and ESDs and the community college. It has a positive effect to the tax base. I haven't seen any sizable increase yet, but I do anticipate it. Again, I can't stress it enough that the tax impact will be based on the price of oil. If you look at the negative side, it's currently tearing up county roads, and there is deterioration. Those things can be fixed. And in the long term, there are tax benefits for the county.”

O'Brien Energy Company, the company Geeslin mentioned in the interview, was contacted by the Athens Daily Review.

Director of Communications Carl Pendley said the company has been drilling in Henderson County since 2013.

“We were approached with a gas prospect from our geology,” Pendley said. “It looked attractive to us for a developmental activity.

There was a prior landowner who approached us.”

Pendley said that his company alone installed five vertical wells between 2013 and 2014.

“I wish our fathers would have seen this. My father would have taken a chair out and sat and watched them drill. It is so interesting, and it has helped a lot of people. If oil goes back up in price, it will continue to help the community, because of the drilling.”

– Jerry Nell Wilbanks

JEFF RIGGS/STAFF

A producing well in Henderson County is located on County Road 4600 between Farm-to-Market Road 1615 and Highway 19.

“And then in 2014, we shifted to all horizontal program,” Pendley said. The reason he stated for horizontal wells, versus vertical wells is that verticals only go for one reservoir of underground petroleum. However, with a horizontal, the well can be drilled to several reservoirs with only one drill, thus cutting down the costs of exploration.

“We are looking over our landholders, and we are with three years under our belt there, with no (negative) incidents whatsoever,” he said. “We have had production. We are pleased and satisfied with the results we have had with oil, natural gas and natural gas liquids.”

Pendley said his company could not go into actual numbers paid to landowners, or how much petroleum was extracted.

Online numbers supplied by the Railroad Commission of Texas indicate there are currently 35 producing companies, or “operators” in Henderson County. Also in the county, there are currently 405 producing leases on file, with a total number of leases numbering 1,080. There are also 2,137 total wells on file.

The website goes on to indicate that 42,572 barrels of oil were pro-

Henderson County Oil Well Count Railroad Commission of Texas - September 2015

157

20

Regular Producing

Shut-In

28

17

Shut-In 14(B)(2)

Injection

222 Total REGULAR PRODUCING - WELL THAT IS CAPABLE OF PRODUCING OIL. SHUT-IN - INACTIVE WELL. SHUT-IN 14(B)(2) - INACTIVE WELL WITH VALID 14(B)(2) EXTENSION. INJECTION - WELL USED TO INJECT FLUID (WATER, AIR, CO2) INTO A PRODUCTIVE FORMATION. MISC. - OBSERVATION, MONITORING, ETC. • REPORT DOES NOT INCLUDE WELLS THAT HAVE BEEN PLUGGED/ABANDONED.

duced in Henderson County in 2015 and 863,902 MCF of gas were produced in October 2015.

Figures on the website also indicate that from January 2015 to November 2015, the county produced 538,192 barrels of oil, 3,259,980 of casinghead, 8,555,006 GW gas (MCF) and 21,273 of condensate (BBL).

The website lists top producers as O'Benco, Inc., which is associated with O'Brien Energy

JEFF RIGGS/STAFF

Holley Hills Ranch is just one of the well locations near Farm-to-Market Road 1615.

Company, along with XTO Energy, Inc. and Vanguard Operating, LLC. Wayne Mitchell, who has storage tanks on his property fed by drills on his sister's property next door to him, said it's been a “Godsend.”

“We have tanks on my land, and they have paid the rental price for putting the tanks there,” he said. “Our family has been on this land for the past 100 years.

O'Brien is doing this, and I feel good. It doesn't bother me at all.

It's been nothing but a Godsend for us.”

Wayne Mitchell's sister, Jerry Nell Wilbanks, shares the family land.

“I have two drills, and they are planning a third one,” Wilbanks said. “They are going into this same pad with a new drill. They came in last year.”

Wilbanks said petroleum production changes the landscape, but it doesn't hurt it.

“We're not running cattle or anything now,” she said. “And with wildlife things we do, doesn't interfere with that. We try to protect our deer, and we did ducks a

few years ago.”

She said drilling for petroleum on properties helps the community monetarily.

“It helps the community, because there is more income,” she said. “It especially helps the church with tithes and offerings and things like that.”

Wilbanks and Wayne Mitchell both attend Carroll Springs United Methodist Church, located on CR 1400, as do many of the people who are enjoying the advantages of drilling in the area.

Wilbanks remembers her earlier years on the property without oil and gas being sought.

“I wish our fathers would have seen this,” Wilbanks said of her father, Clarence Mitchell, who passed away in his late 60s in 1978.

“My father would have taken a chair out and sat and watched them drill. It is so interesting, and it has helped a lot of people.

If oil goes back up in price, it will continue to help the community, because of the drilling.”

Henderson County has historically been recognized for its production of oil, but has seldom been near the top. A newspaper article from Nov. 27, 1964 in The Malakoff News indicated that Henderson County ranked 86th in the state as total value of oil and gas production.

The article stated, “It is estimated that royalty payments to Henderson County landowners who are fortunate enough to have producing wells on their property create a 'crop' of about $1.4 million annually.”

The Oil and Gas Journal reported that 24 wells were drilled in the county in 1963, resulting in 11 oil wells, three gas wells and 10 dry holes, making this a record for the county. Then, there was a steady slope, that appears to have taken another direction in the past five years in different parts of the county.

Move towards farmers markets shifts county’s agribusiness Continued from 1 south and east part of the county for the most part.

Henderson County is going to be raising a lot of birds.”

Hirsch points out that the agriculture industry doesn't only include those raising the animals or crops.

Many businesses cater to the producers. Farm and ranch supply stores are needed to keep pace with the demands of the farmers and ranchers.

Equipment dealers also support the industry, with the latest tractors and implements. Expansion to farm equipment dealers has been seen in Henderson County during the last few years.

“That continues to grow,” Hirsch said. “We have at least three large tractor and implement dealers in the area.”

Hirsch said not only feed stores and fertilizer stores are needed, but veterinarians, agricultural fuel dealers and Ag commission

From watermelon farms to wildlife management, Henderson County is home to various agriculture businesses. companies where the animals are sold are tied to the industry.

“There are also people who manage the land for them,” Hirsch said. “Not necessarily cowboys, but people that know about gardening, people who know about building fences.

There's a need for that.”

Many of the agriculture producers in Henderson

County are well known, but others may be in operation for years out of the eye of most people.

They can be hidden by the blanket of trees that covers much of the county.

In fact the trees themselves might be the business.

For example, Athens Tree Farm in LaRue, has about 350,000 trees cover its 300 acres.

Recent information on livestock in Henderson County places the average size of farms at 190 acres, with that farm selling $24,037 in agriculture produced.

Livestock, poultry and related products dominated the sales with 68.52 percent.

Nursery, greenhouse and related products ac-

counted for 23.35 percent of the sales.

“There continues to be a movement back toward truck farming, small scale farming and families that want to get back to agriculture,” Hirsch said. “There's been an increase in farmers markets. A lot of people want to be able to grow their own food or buy their food locally. That trend con-

tinues to be more popular.”

Wildlife management is also on the rise as more land users see the economic value and conservation importance of wildlife.

Fish and game are plentiful in parts of Henderson County.

“We have a lot of aesthetically pleasing country,” Hirsch said.

BizINDUSTRY Section:Layout 1

2/23/16

3:04 PM

Page 7

Business & Industry

Saturday, February 27, 2016

7

Totally extreme Athens company an award-winner roller coaster developer

By Joe Elerson STAFF WRITER

The fascination of climbing walls, roller coasters and trams at amusement parks has propelled Extreme Engineering to one of the top businesses in the area since 2012.

Led by founder and chief executive officer Jeff Wilson, the company made a move from Newcastle, California to Athens in the summer of 2012.

With the company located at 1391 Flat Creek Road in Athens, Wilson said making the move was one of the best decisions he has made for the future of the company.

“As far as timing, I underestimated the resources of moving from one state to another. I was certainly naïve on the cost of what

“Without Athens, we would not have won our last big international award on a roller coaster that we developed.

It was mostly built and completed in Athens.

It just turned out we were going to do the product development stages in California.”

– Jeff Wilson, CEO

that would take plus emotionally, financially and other resources from the company,” Wilson said.

“Managing a company culture like this that moves you to bring new people in from a different subculture, you have to find ways to maintain the company culture while you are doing it and that really strains the ship. If I was talking to somebody that was doing it again, I would have a different perspective about how to manage through that.”

He said in the 21-year history of the company, coming from a population of 900 people to 15,000 people in Athens was beneficial in them winning awards for the development of roller coasters.

“Without Athens, we would not have won our last big international award on a roller coaster that we developed. It was mostly built and completed in Athens and it just turned out we were going to do the product development stages in California,” Wilson said. “At the last minute, we moved it to Athens and it was the absolute correct choice and we leapt forward because of that. It confirmed our decision to go to Athens was correct.”

When it comes to the size of Athens, Wilson said he thinks it is funny when we compare it to a small town atmosphere.

“It is funny, I hear folks from Athens continually refer to it as a small town. You are 15,000 people and the town that we came from is 900 people,” Wilson said. “You are

See EXTREME, Page 8

JOE ELERSON/STAFF

Extreme Engineering showcases climbing walls at it's facility in Athens for companies to purchase. The climbing walls have challenging obstacles for extreme athletes.

BizINDUSTRY Section:Layout 1

8

2/23/16

3:05 PM

Page 8

Saturday, February 27, 2016

Business & Industry

Trend in real estate growth expected to continue Continued from 3 same time period off water homes sales volume only increased a little over 10 percent from $35,715,424 to 39,490,788. I am anticipating a banner year for waterfront residences in 2016 and a modest increase in sales for off water homes.”

Real estate agents in the Athens area are seeing some of the same as their Cedar Creek Lake counterparts.

Becky Anding, broker/owner of Century 21 Anding Real Estate commented on the current real

estate market in Henderson County, “Often, between the time frame of about Thanksgiving and mid-January, (during the holiday season), realtors see a “slow down” in interest of potential buyers.

That was not the case this past holiday season. Century 21 Anding Real Estate saw an increase of 23.6 percent in overall sales in 2015. Because of low inventory of number of properties listed and available for sale, if you have been thinking of selling, now is an excellent time to list your property. Interest rates are

still low and the options of USDA, FHA and VA loans for consumers are excellent.”

According to comparison reports from the Henderson County Board of Realtor Market there were 1,316 reported sales in 2015 compared to 1,137 reported in 2014.

The HCBR 2015 numbers indicated a total sales volume of $239,916,173 compared to the 2014 sales of $189,348,523 – this is an overall increase of 26.7 percent for the county.

The largest increase in category came at property sold between

$300,000 and $399,999 with a 68.25 percent in units sold.

The second largest increase with a 44.44 percent was property sold between $250,000 and $299,999.

Spanning the width of all sales – whether it is small lot sales, homes, farms and ranches or commercial, the average sale of a property was $182,307.

The largest reported sale for an individual property for the area covered by HCBR was in excess of $4.4 million.

Brad Rummel, a real estate agent with McAtee Realty in

Athens said, “For me personally the market has been picking up and getting back to normal. The past two years has seen a decent recovery.”

Rummel, like many realtors in Henderson County, handles many different kind of sales. “I sell commercial, farm/ranch, Lake Athens and some of Cedar Creek Lake. Working in Athens you have to be able to do it all.”

More and more people have moved to Texas in recent years.

There are advantages to moving to Texas - affordable housing and no state income tax.

Extreme Engineering brings big dreams to Athens Continued from 7 10-to-15 times bigger than where we came from. To us, it is not a small town and I am glad that we made the move. A lot of things came along the way that were gifts and helped us get through some tough times.”

In a 2012 article printed in the Athens Daily Review, Wilson said working with the Athens Economic Development Corporation was great.

“AEDC has been very helpful in getting us started. AEDC was persistent but not intrusive,” he said of the Athens economic development team.

He said when he looks at the current progress of the company, he knows they have bigger goals for the future of Extreme Engineering in Athens.

“I am far from where I want to be. I would love to have a program where TVCC for example would have us involved in part of the education,” Wilson said. “Today, it seems like there is a huge Grand Canyon size gap in California between academia and commerce. It seems to be ever widening rather than getting closer. I would like to avoid that in Texas and see what we can

JOE ELERSON/STAFF

An employee of Extreme Engineering is seen working on a piece of metal for an upcoming project. The employees are able to work on roller coasters, climbing walls and other projects at their facility on Flat Creek Road. do to help that.”

He said with their current building, they are starting to outgrow the space they have since they are working on roller coasters.

“One of the big areas we have moved into in 2015 is roller coasters. It is a particular segment within the roller coaster market. The real challenge we have is we have outgrown the

building that we have moved into in a short period of time,” Wilson said.

“We are now renting additional space from adjoining buildings which will probably always be the case. That is a good way to deal with some of the growth. We will probably get to the point within the next quarter or first half of the year where we will have to build an additional building to

deal with some of the new business.”

He said along with roller coasters, Extreme Engineering is working on tramways, climbing walls and zip lines.

“One of our goals is to become the premier supplier of roller coasters in the segment under $1.5 million dollar range,” Wilson said.

“Another one is to create and manage trams that go

up and down hillsides throughout the world. My first project is working to be in Bali and to solidify our design for a tram that will be on the Indian Ocean.”

Even with the projects they are building in their facility, the employees of the company want to make sure that customer satisfaction is at the top of their goals in the future.

“If you are looking at the main areas of our company, customer satisfaction is our focus. We want to make sure that the customer is happy with what they get and it is at a value,” Wilson said. “If I am thinking anything that regards our focus, we want to make sure they have a value. The products come and go and that is true with any company. What you produce does not define you. It is really about your customer and satisfying customer needs and giving them a value is what we do.”

He said when it comes to thinking about the future of the company, they have to make sure they are following goals which are attainable to the company.

“I think what you are asking about in those future milestones is sustainable. Having fundamental metrics based on customers and not on product allows for sustainable. That way you can mold yourself to the products needs. I think we have to make sure those milestones are fine and those are what we call wild goals that we are trying to achieve. If we are not out there trying to achieve wild, audacious goals, then you are not challenging yourself.”

BizINDUSTRY Section:Layout 1

2/23/16

11:25 AM

Page 9

Saturday, February 27, 2016

Business & Industry

9

AEDC helps Athens move forward

By Rich Flowers NEWS EDITOR

If you list the things that will keep a city or area thriving, jobs just might be on top.

Athens Economic Development Executive Director Lisa Denton sees that as a task that requires bringing in new businesses and helping the ones already on hand to keep growing.

The AEDC has projects underway to achieve both goals.

Denton arrived in Athens from Kilgore in late 2014, just in time for a roller coaster ride.

“In 2015, we had our ups and downs, but things have worked out for the better,” Denton said.

During 2015, Biotech Manufacturing Center closed after a decade. The building that housed BMC became vacant, except for a portion occupied by West Pharmaceuticals.

The timing turned out to be just right for a business already in town and in need of space to expand into the space vacated by BMC. FutureMatrix signed a 10-year lease for the facility.

Meanwhile, a long vacant building that had been the home of Cade's Building Supply proved to be a suitable location for a company making the move from California.

AEDC officials had traveled to California on multiple occasions and was able to attract HVAC Manufacturing of California, which develops and manufactures products used in the heating, ventilating and air-conditioning industry.

HVAC had set up offices in the Cade's location at 1010 W. Corsicana St. by the end of January, while the remainder of the building was being reworked for HVAC's needs. The company expects to add 25 jobs to the Athens economy over the next five years.

More than 20 years ago, Steritec went into business in what is know known as Athens Industrial Park.

Last year, AEDC helped with $42,000 for some major upgrades to the company. The work included $200,000 to renovate their facility in order to acquire and install a state-of-the-art sterilizer for

An AEDC program to boost business curb appeal was started in 2014. Both Athens Army Navy & Pawn, above, and Athens Screen Printing, right, participated in the grant program. $800,000.

In 2006, Athens applied for status as one of the first certified retirement communities under a newly implemented program under the Texas Department of Agriculture’s Rural Economic Development Division.

Today retirement and nursing home companies continue to favor Athens as a location for their facilities.

In 2015, AEDC, the city and Athens Municipal Water Authority worked together to bring a new skilled nursing facility to a property at State Highway 19 and Loop 7 south.

The property owner, PATDAV LTD, asked the city and the water authority to annex 30 acres of land, located south of East Texas Medical Center into the City of Athens.

The parties agreed to run sewer to the location and AEDC agreed to pay more than $50,000 for the project.

Denton said the developer plans to use about 10 acres of the land for a 120-bed retirement facility.

In the future, the other 20 acres

might be used for a gasoline station-convenience store, restaurant and an office complex.

When a number of businesses closed on the W. Corsicana Street corridor and others were showing their age, AEDC began a program to make that end of the city more attractive to those driving into the city.

In 2014, AEDC began a grant program for businesses improving the “curb appeal” of their lo-

cations.

You can see the difference at Athens Army Navy Pawn, Moonshiner's, Athens Screen Printing and other locations.

Denton said the AEDC board put the grant program in the budget again this year.

Businesses can apply for up to $10,000 reimbursement for improvements to things like signage and parking lots.

“This is for the outside of the

businesses,” Denton said. “What people see when they drive into town.”

Even as efforts are made to make the city more attractive to businesses, AEDC has been upgrading its website to make it more attractive to companies interested in a more suitable location.

They are also having three short videos produced to promote Athens.

A medical community Consistent, quality balloons are a hallmark of manufacturing with FutureMatrix.

By Jeff Riggs ASSOCIATE EDITOR

With the growth of Athens, and the proclamation of Athens becoming a certified senior community, health issues tend to grow.

With that in mind, at least two companies have been formed or expanded over the years to accommodate the need for medical device demands.

FutureMatrix Interventional, Inc. and Argon Medical Devices, Inc. are among them.

FutureMatrix General Manager David Nichols said his company is expected to expand due to the increased demand for his products.

The journey and growth of FutureMatrix has carried it to various locations around Athens over its 23year history.

“We began in April of 1993. There was funding from various sources and the City of Athens,” Nichols said. “The first location was where Tilo's restaurant is now.”

FMxl moved to a facility on South Highway 19 for three years and in 1996 moved to its current location at 1605 Enterprise Drive.

“We have seen some exceptional growth over the years. What started as a small company with about 10-15 employees has grown to over 350 today."

Recent facility expansions were made possible by the acquisition of the former Biotech equipment and facility which has given FMxl approximately

Argon Medical Devices, located in Athens, employs more than 300 people.

Athens attracts key companies in the medical device industry 58,000 square feet of inhabitable space.

Nichols said that on March 9, James Passmore, founder of the company, officially retired and the company was purchased by longtime board member, John Feltman.

John Feltman is the CEO of the new FutureMatrix parent company, Brookhaven Medical located in Atlanta, Georgia.

Jim Passmore still resides in Athens.

The main scope of their business is built around the disposable medical device industry.

FutureMatrix has developed and currently manufactures several innovative products that are used in vascular and urological procedures.

“We're going to expand on our strengths,” Nichols said. “There's a lot of opportunities through new product development and emerging markets that will factor into the expansion of our marketplace. There's huge opportunities to expand domestically and worldwide. We also do a lot of work with clinicians and thought leaders in our field to develop new products that will meet the growing demands of our healthcare providers. We already have

“We are in Athens, in part because of the access to a labor pool that is good for the type of manufacturing that we do.

Our customers can easily access our facility due to the close proximity to the Dallas and Tyler airports. The Henderson County area is a great place to live and raise a family which helps in the recruitment of professional talent that is critical to our desire for growth and investment in new medical device technology development.”

– David Nichols, FMxl General Manager it on the books to add a new 20,000 sq. ft. facility this year on our 1605 campus.

We are committed to the expansion of our business and the investment in new equipment and people.”

According to public records, the industrial property has an estimated value of $1.33 million, which is slightly above average for industrial properties in the area.

When the building was last assessed in 2012, the assessment value was $1,321,290.

“We are at 350-plus employees now. Based on our schedule for new product launches and growth of ex-

isting product lines we expect our head count to push closer to the 400 person level by the end of this year.

We are currently hiring employees for a second shift in some of the production areas,” he said. “We are in Athens, in part because of the access to a labor pool that is good for the type of manufacturing that we do. Our customers can easily access our facility due to the close proximity to the Dallas and Tyler airports.

The Henderson County area is a great place to live and raise a family which helps in the recruit-

See KEY, Page 12

BizINDUSTRY Section:Layout 1

10

2/23/16

11:36 AM

Saturday, February 27, 2016

Page 10

Business & Industry

CHAD WILSON/STAFF

Vacant lots are being snatched up along Highway 31 in Chandler as the city is experiencing record business growth. Pictured, a house that was once home to a pizza shop is demolished to make room for a Bush’s Chicken. The adjoining empty lot was also purchased for the construction of the new eatery.

Progressing at a rapid rate With comprehensive plan in place, Chandler's growth spikes

By Chad Wilson EDITOR

One of the fastest growing cities, both in population and business development, in Henderson County is the City of Chandler.

Chandler Economic Development Corporation Executive Director Jim Moffeit said one of the biggest factors in the city's recent growth is planning.

“The comprehensive plan we adopted in 2011 really launched a lot of the growth you see now. Like any major plan, it took a lot of preplanning to get it rolling. The plan has given us a clear vision for the future,” Moffeit said.

Moffeit served as Chandler's city administrator during the development of the comprehensive plan.

He was the first full-time city administrator hired by the city.

When it was clear a plan

was needed for future development, the city council approved the hiring of John Taylor as an assistant to Moffeit.

Taylor's top priority upon being hired with the city was to develop the comprehensive plan and improving the city ordinance structure.

“A lot of what you see right now is a direct result of updating our ordinances that have been passed prior to the plan,” Moffeit said.

“For example, we passed a trash ordinance and burn ordinance that helped improve our city.”

The trash ordinance called for one company to service all the residential pick-up in the city instead of multiple trucks driving past the same house on any given day. This ordinance limited the number of big trucks on the city streets and thus allowed the streets to stay in good con-

CHAD WILSON/STAFF

The vacant property between the Valero Kidd Jones station and Family Dollar along Highway 31 in Chandler is part of a special tax financing district. A hotel is soon expected to be built in the area behind Valero. The facility is expected to spark more growth, including a extension of Sawmill Road. dition for a longer period of time.

“We passed a bond to finish a section of our sewer system. When we did that we got extra money that went toward resurfacing almost every inch of the city's roads,” Moffeit said.

“By securing our infrastructure, we were able to

sustain the growth seen today.”

The economic depression of 2008 slowed growth across the state. As the economy started to recover, Chandler's comprehensive plan was in place giving the city ample room to grow.

“There was a built up need for a lot of the devel-

opment you see now and when the economy turned around it really helped having our plan in place,” Moffeit said. “It doesn't hurt that we also have some very good builders here in town building houses. Our population has grown and I guarantee you it is over 3,000. We were around 2,700

at the last census.”

Based on sales tax allocation data, Chandler’s 59.15 percent growth in allocation since 2011 ranks third in Henderson County.

From 2006 until 2010 the city received an estimated $400,000 a year in sales tax

See SALES, Page 12

BizINDUSTRY Section:Layout 1

2/23/16

11:37 AM

Page 11

Business & Industry

Saturday, February 27, 2016

11

A city as unique as its name GBC is the second largest municipality in Henderson Co.

By Kathi Nailling STAFF WRITER

Despite having a name that evokes images of the Texas frontier, Gun Barrel City is only 46 years old. Not what you would consider the western days.

The town began as an unincorporated community known as the "Old Bethel Community" in the 1960s after completion of Cedar Creek Reservoir.

Gun Barrel City was incorporated on May 26, 1969.

It was incorporated in the late 1960s so it could legally sell beer and wine. The city takes its name from a former road, Gun Barrel Lane (which is now State Highway 198) as well as its motto, "We Shoot Straight with You" and its symbol – a rifle with two crossed antique pistols.

According to legend, Gun Barrel Lane got its name during the 1920s and 1930s when outlaws frequented the area.

It was considered a safe backwoods place during prohibition when the likes of Clyde Barrow and Bonnie Parker hung out in the area.

Despite its obstacles and growing pains, Gun Barrel City has emerged as the second largest city in Henderson County.

The city in the middle of the Cedar Creek Lake area is considered by some to be the central hub and access point for the waters at Cedar Creek Lake.

Gun Barrel City's central location has led visitors from around the region to use Gun Barrel City as the gateway to to the lake.

What makes a particular city special? It's the job opportunities vs. the cost of housing, transportation, food, clothing, household goods, education facilities and entertainment.

Gun Barrel City has a relative-

Above, Gun Barrel City City Hall proudly displays the city logo along Highway 198.

Right, a map of the Cedar Creek Lake area shows GBC centrally located. ly low cost of living and is in close proximity to larger cities such as Dallas and Tyler. And of course there is the lake for your entertainment value.

The growth of the city took off when Farm-to-Market Road 85 was increased to a four lane highway which is now State Hwy. 334.

With the construction of the new road came new business opportunities, traffic increased and people found Gun Barrel City as the shopping and dining mega area for Cedar Creek Lake.

The city relies on visitors to the lake for its survival. The city, like most cities surrounding Cedar Creek Lake, depends on the lake levels for visitors on weekends.

Gun Barrel City is one of the few cities in Texas that does not have an ad valorem tax. The city relies on sales tax to support its city departments and additional

projects.

Even with the limited resources, the city has been able to provide a professional atmosphere for new businesses think-

ing about opening a location near Cedar Creek Lake.

City Councilman Rob Rea said, “The city has grown tremendously over the last 22 years that I have lived at the lake. We have had some very high profile national chains recognize the opportunity that Gun Barrel has to offer. One of the most visible improvements in our city in recent years is the construction of the new city hall.

At the time that project was being discussed, I myself had reservations about spending that money.

But after serving on the EDC, I now realize what an advantage having an impressive city hall is when courting new businesses.”

Gun Barrel City is already designated a GO TEXAN Certified Retirement Community. The GO TEXAN Certified Retirement Community Program is a certification and promotion program provided by the Texas Department of Agriculture.

With the designation of a retirement community the city leaders would like to see Gun Barrel City become a destination point for other activities, such as fishing tournaments, softball tournaments and skateboard tournaments.

With the purchase of Big Chief Landing the city hopes to have a civic-type center to host boat shows, gun shows, concerts and private gatherings.

The city council and the economic development corporation were not immune to past issues.

Currently the two entities are in the process of working together to bring visitors and new businesses to the city.

“As mayor pro-tem and as a former EDC board member, what I'm really excited about is what is coming in the very near future,” said Rea. “We have a skatepark under construction, for the benefit of our youth. And the purchase of the Big Chief property, in my mind, is a game changer for our city. This give the citizens ownership of a part of our most valuable asset which is the lake.”

GBC EDC President Steven Schiff said, “The Gun Barrel City

See GBC, Page 12

BizINDUSTRY Section:Layout 1

12

2/23/16

11:38 AM

Page 12

Saturday, February 27, 2016

Business & Industry

GBC recent accomplishments include Big Chief Continued from 11 EDC is accomplishing more today than over the past several years.”

Rea said, “I am very excited about the recent cohesive attitudes of city council and EDC. And I'm ecstatic about the current projects that are under way.”

Schiff highlighted some of the most recent accomplishments of the EDC, including: • new street light on Heritage Parkway; • GBC Medical Associates; • Domino's Pizza; • Skatepark expects to open in the spring of 2016; • The city will own a piece on Cedar Creek Lake with the purchase of Big Chief Landing.

Schiff said, “The EDC is working to bring additional healthcare

KATHI NAILLING/STAFF

Big Chief Lodging was purchased by the Gun Barrel City EDC for future growth, likely a civic center on Cedar Creek Lake. services,, manufacturing and retail to the town, as well as entertainment.”

The city recently surveyed its citizens about what they would like to see in their city. Most citizens said more retail clothing

stores, restaurants and opportunities for employment.

For the first time a rural community can become a tourist destination for being just who they are.

In the past five years tourism

has seen some big changes. Large numbers of travelers have lost interest in cookie cutter restaurants, lodging and attractions.

Gun Barrel City already has one thing going for it – recently featured as a top 20 of the oddest

named cities in the United States.

Yes, it is the only city in the U.S. named Gun Barrel City.

City council members along with the EDC Board members say the future of Gun Barrel City looks bright.

Key to the growth of the business community Continued from 9 ment of professional talent that is critical to our desire for growth and investment in new medical device technology development. The City and the AEDC has been a great partner, and we are looking forward to what the future has in store for our company.”

Nichols said the company takes applications on a daily basis. About 90 percent of the hiring will be hourly production workers with technical and administrative positions periodically needed to support their expected growth.

Also accommodating the need for medical devices in the Athens area is Argon Medical Devices, Inc., located at 1445 Flat Creek Road, Athens, which, according to its website, manufactures medical products and devices for interventional radiology, vascular surgery, interventional cardiology, critical care and oncology procedures.

It offers cardiology products, such as jawz endomyocardial biopsy forceps, percutaneous introducer sheaths, drapes and equipment covers, arterial needles, guide wires, vessel

“The community supports its businesses. As far as the city's EDC, I can't say enough good about them. Athens is fortunate to have leaders in the community who understand businesses, and what their needs are. It's that kind of community support that adds to longevity of operations. That's one of the big reasons we are here.

It's the community support, that's what makes Athens unique.”

– Bill Morgan, Argon VP Operations dilators, manifolds, syringes, fluid management tubing and accessories, pressure transducers, pressure transducer accessories, arterial catheter kits and trays, thermodilution and pulmonary artery catheters and temporary pacing electrode trays.

Vice President of Operations for the company's American operations Bill Morgan, and who has been employed by the company since 2004, said the Athens facility employs about 360 people.

They are currently hiring for entry-level positions primarily. These include light manufacturing, assembly work.

“At the Athens facility, there is lots of emphasis on internal promotions,” he said.

He views the future of the Athens facility as growth oriented.

“I see a continuation of what we are doing,” he said. “In 2013, we made a major acquisition of a business named Angiotech. It included plants in Denmark and in Florida.

These were closed and moved here. That meant significant growth for the Athens plant, and included in that is a lot of hiring.

That integration is complete, and there has been a lot of organic growth locally. Our goal is to grow business.”

Morgan said there are a lot of reasons for locating in Athens. One is its access to the labor force and low overhead costs.

“The community supports its businesses,” he said. “As far as the city's EDC, I can't say enough good about them. Athens is fortunate to have leaders in the community who understand businesses, and what

their needs are. It's that kind of community support that adds to longevity of operations. That's one of the big reasons we are here.

It's the community support, that's what makes Athens unique.”

Argon was founded in 1972 in Garland, and focused on stainless steel guidewires.

Over the next decade, additional products were added to Argon’s portfolio.

In 1981, it was relocated to Athens, and sold to Bristol-Myers Squibb.

The company grew through the addition of a custom packing operation.

Henley International bought the company in 1991, and in November 2003, RoundTable Healthcare Partners, a premier private equity firm located in Lake Forest, Illinois, bought Argon.

At this time Argon had

350 employees.

RoundTable’s exclusive focus is medical devices and specialty pharmaceutical businesses.

In October of 2010, Argon purchased the Critical Care and Extended Dwell Catheter product portfolios from Becton Dickinson, becoming a global operation with sales offices in eight countries in Europe, Japan and China and manufacturing plants in Singapore and Athens, increasing its headcount to over 700 employees.

In 2010 and 2011, Argon entered into exclusive licensing agreements with Rex Medical to add the Option Vena Cava Filter, Cleaner Rotational Thrombectomy System and UltraStream Dialysis Catheters to its product line.

In April of 2013, Argon acquired the

Interventional business from Angiotech Pharmaceuticals, augmenting Argon’s business strategy to grow the company into a leading player in the interventional medicine space worldwide.

This significantly expanded Argon’s global sales organizations, increasing its reach and providing the opportunity for rapid growth.

With the Angiotech Interventional acquisition, Argon added additional offices in Europe, and manufacturing plants in Wheeling, Illinois and Rochester, NY. In December 2015, Argon acquired the three products it had previously licensed from Rex Medical.

Argon Medical Devices, Inc. now wholly owns The OptionELITE Retrievable Vena Cava Filter, the Cleaner Rotational Thrombectomy System, and the UltraStream Chronic Dialysis Catheter.

Today, according to the website, Argon employs about 1,200 employees worldwide, and is committed to continuing its growth as a world-class medical device business.

CHAD WILSON/STAFF

Two of the newest buildings in Chandler are businesses that have long been part of the city. Family Dollar moved east on Highway 31 into a new facility in 2015 while Taco Bell tore its old building down to rebuild a more modern facility. Both are located in an area of the city that is expected to see the most growth over the next two years, thanks in large part to the tax financing district.

Sales tax allocations place Chandler third in county Continued from 10 allocations. In 2011 the city received $447,491.30 before the number spiked 59.15 percent to $712,193.75.

Part of the big increase was the fact that Chandler was one of the first cities on the eastern side of the county to allow the sale of beer and wine. That change was a driving force behind the expansion of the Brookshire's grocery store and the new Kidd JonesWhataburger development.

Current development in the city calls for an O'Reilly Auto Parts to be built near the Family Dollar and a Bush's Chicken to be built nearly across Highway 31 next to Pit Stop Oil and Lube.

The two new developments, both expected to be open by the end of 2016, are inside the Tax Increment Reinvestment Zone that was recently approved by the Henderson County Commissioner's Court, Trinity Valley Community College and the city.

“The Tax Increment Reinvestment Zone that is in

place and covers a large amount of open land in the city along Highway 31 will fund some much needed infrastructure. We are aware of two businesses that will hit the tax roll in that zone next year,” Moffeit said. “If we can get a hotel, which is another $4 million a year on the tax roll, it will expand the TIF and get it rolling and going.”

Part of the plan for the reinvestment zone is to extend Sawmill Road, currently a short stretch of roadway between Brookshire's and Brookshire's Fuel Station, that would connect Hwy 31 to Old Tyler Road which runs near the Chandler cemetery.

“By getting that open, we will have 47 acres over there that the road will start opening up. That should spur some additional growth,” Moffeit said. “We have had some talks with various companies, including medical facilities, about the opportunity ahead.”

The Tax Increment Finance District establishes a zone or district in which the taxing jurisdictions continue to receive all the

“That hotel will stimulate more growth in Chandler than anything else that we could do. Once people are able to stay here, they will spend money here.”

– Jim Moffeit, Chandler EDC

taxes that they have been getting on those properties. But taxes due on any appreciation of those properties, from the date the zone is created, go into the TIF fund that is used to repay a bond for new infrastructure. The Zones are to be used for projects that are not likely to occur without public assistance.

According to Chandler City Council minutes from Dec. 8, the TIF will exist for 25 years, but can

be ended early once the bond has been paid off. After the TIF has paid off the bond, the taxing jurisdictions will go back to capturing 100 percent of their taxes on the full value of the properties.

The Commissioners Court agreed for the county to partner with Chandler to facilitate the development in the area. The more taxing jurisdictions participate in the TIF, the quicker the bonds can be paid off, and the TIF closed. TVCC also voted to participate in the TIF. The Chandler “zone” includes the property located behind the Valero Station on State Highway 31 across from city hall. It is bordered on the south by Old Tyler Road. Sawmill Road, between the Brookshire's supermarket and the Brookshire's gas station, will extend south along SH 31 before

connecting to Old Tyler Road.

In early February the city council approved entering negotiations to bring a 58-room hotel to the city that will be located behind the Valero station inside the tax district.

Moffeit said he expects the hotel to be ready to rent rooms by March 2018 while the development of the facility is likely to spur future growth inside the city.

“The hotel deal is as close to getting done as we have ever had it,” Moffeit said. “That hotel will stimulate more growth in Chandler than anything else that we could do. Once people are able to stay here, they will spend money here.”

As Tyler continues to grow, more people seek outlying areas like Chandler to raise a family while driving the 10-15 miles into Tyler to work.

The proximity to a growing Tyler, the tax district and the city's comprehensive plan has Chandler on pace to continue its progressive development for the foreseeable future.