EDINBURG Monthly Economic Development Report
EDC
Volume two, Issue two
INFORMATION - INSIGHT- ANALYSIS
President Vice-President Secretary/Treasurer Director Director Executive Director Assistant Executive Director Project Manager Administrative Assistant EEDC is a non-profit company and is responsible for economic development in the City of Edinburg. This newsletter is produced monthly to update the business community and stakeholders on EEDC’s key initiatives. For more information visit the Edinburg EDC web site at www.edinburgedc.com
EEDC Monthly Newsletter I February 2008
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Planning...Growth...Partnerships. These concepts are woven deep into the fabric of our community and form the core values of what has made the Edinburg Economic Development Corporation (EEDC) a performance driven leader in growing our economy. This year, Edinburg’s population crested over 68,000 and our economy shows no signs of slowing. Edinburg’s retail economy in January 2008, as measured by the amount of local and state sales taxes generated by a wide range of local businesses, was up 2 percent over the same month period in 2007. Edinburg’s economy for 2007 was averaged at 4.74 percent jobless rate, an increased from the 5.3 percent averaged in 2006. The latest statistics compiled by the Texas Workforce Commission also showed that Edinburg had the second lowest jobless rate among major Valley cities for December 2007. The state’s jobless rate in December 2007 average 4.5 percent. The U.S. Unemployment rate was 5.0 percent for that same month. On January 29, 2008, the Edinburg Economic Development Corporation (EEDC) hosted its quarterly Commercial Real Estate Roundtable, bringing in local industries encouraging insightful comments about Edinburg’s current business and economic environment. As part of a concentrated effort to propel the community’s pro-business attitude toward business attraction, the EEDC invited real estate brokers, developers, city department directors, and other industry professionals to attend to discuss the city’s development activities. The EEDC took part in the Texas Economic Development Council Winter Meeting at South Padre Island on January 16 - 18. Sessions that EEDC participated in included: Update , , and a session with a special guest speaker Thomas Klier, Federal Reserve Bank of Chicago. Within these pages, we hope to provide a snapshot of our major economic development initiatives and keep you informed of what is yet to come in Edinburg. Best Regards, Ramiro Garza, Jr.
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EEDC Monthly Newsletter I February 2008
City of Edinburg Residential Building Permits $45,100,000 $40,100,000 $35,100,000 $30,100,000 $25,100,000 $20,100,000 $15,100,000 $10,100,000 $5,100,000 $100,000
2008 2007 2006 2005
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2004
City of Edinburg Commercial Building Permits $60,100,000 $50,100,000 2008 $40,100,000
2007
$30,100,000
2006 2005
$20,100,000
2004 $10,100,000 $100,000 Jan
Feb March April May June July
EEDC Monthly Newsletter I February 2008
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Aug Sept
Oct
Nov Dec
C ity o f E din burg L oc a l S ale s Ta x
$1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0
2004 2005 2006 2007
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2008
City of Edinburg Bank Deposits
$1,200,000,000 $1,000,000,000 $800,000,000
2005
$600,000,000
2006
$400,000,000
2007
$200,000,000
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C it y o f E d in b u r g U n e m p lo y m e n t R a t e 7.0% 6.0% 5.0%
2 005
4.0%
2 006
3.0%
2 007
2.0% 1.0%
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EEDC Monthly Newsletter I February 2008
City of Edinburg Hotel Occupancy 80 70 Percentage
60
Q1
50
Q2
40 30
Q3 Q4
20 10 0 2002
2003
2004
2005
2006
Year
City of Edinburg Hotel Revenue(in thousands) $5,400 $5,200
$5,236
$5,333
$5,317
$5,000 $4,885
$4,800
$4,688
$4,600 $4,400 $4,200 2002
2003
2004
2005
Source: Texas Tourism EEDC Monthly Newsletter I February 2008
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INTERNATIONAL Economic Development Council While attracting a new company to a community gets lots of press attention, an even more important economic development strategy is the retention and expansion of a community’s existing businesses. A strong business retention and expansion program ensures that the needs of local businesses are being not only heard, but addressed.
Covering both key topics and specialized issues, courses are designed to be interactive and provide a national perspective with a focus on real life experiences, best practices, and tools you can use in your community.
The Edinburg Economic Development Corporation staff attended the Business and Retention course in San Antonio on January 7-8. In this course, attendees learned the “red flags” that may indicate a company is looking to move elsewhere. Attendees also learned how to structure an effective system to respond to business concerns. Course highlights include: * * *
Establishing and organizing a Business Retention and Expansion program Creating effective models visitations and surveys
for
business
Tracking feedback and response
The International Economic Development Council (IEDC) is a non-profit membership organization dedicated to helping economic developers do their job more effectively and raising the profile of the profession. When we succeed, our members create more high-quality jobs, develop more vibrant communities, and generally improve the quality of life in their regions. With courses offered throughout the year and around the country, IEDC’s training courses are the leading source of education for professionals at all levels.
Edinburg will be celebrating 100 years, and we will celebrate Edinburg’s birthday this fall. The Edinburg Chamber of Commerce, the city of Edinburg, the Edinburg Economic Development Corporation and other various organizations such as the Edinburg Public Library, the Edinburg Fire Department, and the Museum of South Texas History are collaborating efforts to celebrate a once in a lifetime opportunity in recognizing 100 years of our great city. We are inviting you to be a part of our committee, and encourage you to bring your ideas to share for the October celebratory affair. Join us every Friday at The Depot at 8:30am.
EEDC Monthly Newsletter I February 2008
TEXAS Economic Development Council The Edinburg Economic Development Corporation took part in the Texas Economic Development Council Credit Analysis Training. The training took place February 11-13 in San Antonio. In this course, economic developers often need to learn how to work with business owners to assess a small business’s financial strengths and weaknesses. Most importantly, they will learn the basics of structuring deals for small
•The TEDC has trained nearly 3,500 local government leaders and board volunteers in our economic development sales tax workshops. •The TEDC raised early awareness about the need for the Texas Enterprise Fund and the Texas Emerging Technology Fund. •The TEDC has consistently lead legislative efforts to protect critical economic development programs.
The Texas Economic Development Council (TEDC) is an Austin-based, statewide, non-profit professional association dedicated to the development of economic and employment opportunities in Texas.
The Office of the Governor, The Edinburg Economic Development Corporation, and the City of Edinburg posthumously honored Freddy Gonzalez with the state’s highest award at a ceremony in Edinburg on the 40th anniversary of the Vietnam War hero’s death. The Texas Legislative Medal of Honor ceremony recognized the life, service and sacrifice of Alfredo "Freddy" Gonzalez. The ceremony took place at Edinburg's Cats Football stadium at 1:30 p.m., on February 4, 2008.
The TEDC is a one-stop shop for ideas, information, and influence. TEDC is the largest state association of economic development professionals, volunteers, and elected officials. Their diverse members share a common goal -bringing new investment and jobs to Texas. The TEDC provides information, educational and legislative services to nearly 900 members. Their objective is to support the economic growth of Texas and develop strategies that promote a positive business climate in our state.
- February 21st - 24th marks the dates for Fiesta Edinburg’s grand celebration. New this year to Fiesta Edinburg is the Retro Disco Dance Contest that will take place on Thursday (Feb. 21st) along with the Heart of America Carnival ($5 All you can Ride on Thursday only). On Friday (Feb. 22nd), The Heart of America Carnival continues at Edinburg Municipal Park along with live music, entertainment, and food for the entire family. Saturday (Feb. 23) will feature the 40th Annual RETRO-style parade, live music, entertainment, and much much more! Heart of America Carnival will close the festivities on February 24th.
Recent Accomplishments: •The TEDC was instrumental in the creation of the economic development sales tax in 1989--and has been its most vocal and effective supporter for over 20 years.
EEDC Monthly Newsletter I February 2008
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While many communities in Texas and the U.S. are facing an economic slowdown, the past year in Edinburg was an excellent one for the three-time All-America City, Mayor Joe Ochoa announced on Thursday, February 7, in his annual State of the City address.
at our University of Texas Regional Academic Health Center. Let us not forget this great facility, and more importantly, what is happening behind those doors. Thanks to our legislators for their commitment and support.
Construction activity in 2007 totaled $173 million. New commercial buildings were valued at more than $77 million, a 10 percent increase from 2006. More than 600 homes were built in 2007, totaling $95 million in residential construction.
System and the Doctors Hospital at Renaissance.
Data Source and NuStats completed their 8,500 The latest Census Bureau estimates show Edinburg's square foot social science research facility, with population at approximately 67,000. This means an estimated annual economic impact of that since the 2000 census, Edinburg's population $683,056 and 110 jobs. has grown 38 percent, or more than five percent There is strong growth in the health services. annually, placing Edinburg as the third largest city in More than $180 million have been invested with the Rio Grande Valley. expansions in divisions of South Texas Health Doctors Hospital at Renaissance continues to expand with the opening of their $67 million Women's Hospital, a 200,000 square foot, state-of-the-art medical complex located in The Shoppes at Rio Grande Valley will total 1.2 southwest Edinburg. million square feet. This regional shopping center Doctors Hospital at Renaissance also recently will feature a traditional department store, big box opened their Cancer Center, a 54,000 square retailers, national and local specialty stores, restau- foot, state-of-the-art treatment facility, which rants, entertainment, and a full-service hotel. represented an additional $15 million investPhase 1 of the project will be complete in the Fall of ment. 2008, and so far includes: “With our new commercial developments going up, we need to attract and solicit people from • Burlington Coat Factory (80,000 square feet); elsewhere. We, as leaders, want our businesses • JC Penney (104,000 square feet); to thrive. We must open our doors to whomever • The Shoe Dept; and wants to visit and share our great city,” Ochoa concluded. • First National Bank. More than 400,000 square feet of retail has been recently constructed with the completion of the Fairhaven Subdivision, Jackson Plaza, Trenton Town Center, Trenton Crossroads, and La Sienna Master Planned Community. As a reminder, we have stateof-the-art research being conducted right here in Edinburg: $5 million appropriated by the Texas Legislature to expand research in bipolar studies and diabetes
7 Photo Courtesy of David A. Diaz
The Edinburg Economic Development Corporation outlined the city’s economic progress at the quarterly Commercial Real Estate Roundtable held on January 29. Ramiro Garza, EEDC Executive Director, presented Edinburg’s Annual Economic Overview for 2007 to a gathering of city officials, business and community leaders. Garza said there were 605 new homes and 48 news subdivisions added to the city in 2007. The money brought in from new building permits was $95,305,938 (residential) and $77,324,011 (commercial) with the year’s commercial permit highlights being Burlington Coat Factory, JCPenney, and the Shoe Dept. Figures that were up in 2007 included the sales tax revenue, bank deposits, and the number of employed residents in the area. Sales tax collected were up an 11 percent from the previous year’s amount. Bank deposits surpassed the $1 billion mark, and the unemployment rate met the city’s goal averaging 4.74 percent. New jobs should continue flowing in with this year’s commercial projects including: Lowe’s Commercial Development - 25 acres
Fairhaven Subdivision - 40,000 square feet of retail space Jackson Plaza - retail center with 25,000 sq. ft. of space. Trenton Town Center - 247,000 sq. Ft. Retail and restaurant site Trenton Crossroads Plaza - 100,000 sq. Ft. Commercial square The Shoppes at Rio Grande Valley - 1.1 million sq. ft. 120 acre outlet mall La Sienna Master Planned Community - 726 acre mixed-used development. So why is economic development important in our community? Economic Development lowers your taxes, builds streets, creates jobs, pays for new schools, libraries, parks, fire and police protection, as well as other important city and school services. In short, economic development benefits everyone. It exists to generate the revenue that pays for every public product and service in our community, concluded Ramiro Garza, Jr.
EEDC Monthly Newsletter I February 2008
Calendar of Events - Basics in Business - Learn about permits, licenses, etc. To get your business started. Recommended course for new clients. Fee: None (UTPA Annex, Edinburg) 6pm - 8pm - The Power of Business Planning - Learn about the components of a business plan, a necessary tool for obtaining financing. Recommended for active clients. Fee: None (UTPA Annex, Edinburg) 6pm-8pm. - Basics in Business - Learn about permits, licenses, etc. To get your business started. Recommended course for new clients. Fee: None (UTPA Annex, Edinburg) 6pm - 8pm Double, triple, or quadruple any business by harnessing the natural laws of growth. Learn key laws that every business must comply with to grow revenues and profits - Recommended course for new clients. Fee: None (UTPA Annex, Edinburg) 2pm - 4pm.
Small Business AWARDS BANQUET Date: March 14, 2008 Banquet and Awards: 11:30 am - 1:30 pm Location: UTPA Annex Conference Room 2412 S. Closner, Edinburg, Texas 78539 For Individual RSVP: 956.292.7535 For Event Sponsorship: 956.292.7537 or eperez2@utpa.edu
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EEDC Monthly Newsletter I February 2008