Volume one, Issue five
Keynote Speaker: Ted C. Jones, Ph.D
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Executive Director’s Report The Edinburg Economic Development Office (EEDC) is actively promoting Edinburg to key prospects through increased marketing efforts. We recently participated in a meeting with the economic development corporations of South Texas to discuss brief updates on levees, I-69/TTC-69/281 upgrades, workforce development, and the creation of a county wide economic development organization. Furthermore, some of the highlights of the last month’s EDC board meeting include authorizing the EDC to enter into a development agreement, enter into a reimbursement construction agreement with the City of Edinburg for the downtown sidewalk improvement project, enter into a an agreement with Valley Initiative for Development & Advancement, enter into a property lease agreement, and enter into a construction agreement with the City of Edinburg to assist in the Pin Oak road improvement project. Together both companies will invest $5.5 million and create over 75 jobs. We hope you are continuing to find our newsletter informative. We are always open to suggestions on additional information that would be useful to the business community. To find out what is happening or about to happen in Edinburg, visit us online at www.edinburgedc.com. Best Regards, Ramiro Garza, Jr. Executive Director
EEDC Monthly Newsletter I November 2007
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Real Estate Forum D
espite gloomy news nationwide, economic indicators in Hidalgo County point to a strong local real estate market in the future, said real estate professionals. Experts predict higher interest rates, but strong job growth in the area should keep up demand for new and existing homes. "I have a gut feeling interest rates are going up," said Ted Jones, an economist with Houston-based Stewart Title Guaranty Co. and the former chief economist at the Real Estate Center at Texas A&M University. "But the market should stay strong." The last five months have brought bad news for Valley housing. Through September, home sales are down 7.1 percent from the same time the year before, the poorest showing since 2004. However, 2004 to 2006 were record years
for Valley real estate. Jones even said the Valley's ailing home building market is not in trouble. With projected increases in employment and population, Jones said the Greater McAllen area would be a good place to invest long-term in real estate. Hidalgo County has added about 7,300 jobs since September, according to the Texas Workforce Commission, and the population is expected to nearly triple in 35 years, according to the state demographer's office. Through September, Edinburg was already approaching record home building permit applications, said Ramiro Garza, executive director of the city's economic development corporation. Weslaco has also experienced hot growth in housing and business during the last year, adding to the value of the real estate market, said Hernรกn Gonzalez, executive director of the Weslaco Economic Development Corp.
The market should stay strong. 3
EEDC Monthly Newsletter I November 2007
City of Edinburg Unemployment Rate 7.0% 6.0% 5.0%
2005
4.0%
2006
3.0%
2007
2.0% 1.0%
Ja n Fe b M ar ch Ap ril M ay Ju ne Ju ly A ug Se pt O ct N ov De c
0.0%
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
EEDC Monthly Newsletter I November 2007
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No v
ct O
t Se p
Au g
Ju ly
Ju ne
M ay
Ap ri l
ch
b
M ar
Fe
Ja n
$0
City of Edinburg Local Sales Tax *FY '05-'06 YTD % Increase from '04-05: 10%
$1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0
2004 2005 2006
De c
No v
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Se pt
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M ay
pr il A
h ar c M
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Ja n
2007
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
2007 2006 2005
De c
No v
O ct
Se pt
Au g
Ju ly
Ju ne
ay M
Ap ril
ar ch M
Fe b
Ja n
2004
City of Edinburg Commercial Building Permits $50,100,000 $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
2007 2006 2005
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2004
EEDC Monthly Newsletter I November 2007
EEDC Participated at the Texas Manufacturing Assistance Center
U.S. chain store sales grew 1.6 percent in October compared to the same month last year, according to ICSC’s index. This performance held steady with September’s results, which showed a 1.7 percent increase. Unseasonably warm weather affected apparel sales and kept the overall performance down, and results were lower than the predicted 2.4 percent increase. Wholesale stores continued to see strong performance, with the sector overall increasing 5.8 percent. Drugstores also had a positive month, seeing a 5 percent increase. “"Over the last two months, retailers have struggled with the warm weather's negative impact on retail spending," said Michael P. Niemira, ICSC's chief economist and director of research. “However, for the November-December period, we are expecting a marked improvement from the very sluggish September-October performance.” Niemira said he expects November comp-store sales to increase by about 2.5 percent as retailers benefit from colder seasonal weather and stepped up promotions for the post-Thanksgiving Day sales.
The Edinburg Economic Development Corporation participated in a meeting held on October 24th at the Austin Airport Hilton Hotel. TMAC works with manufacturers to improve their competitiveness by identifying opportunities and implementing appropriate solutions. TMAC provides services to a wide range of industries such as metalworking, food processing, electronics, plastics, apparel and more. The EEDC gained awareness of what services the TMAC in Edinburg can provide its business prospects. The Texas Manufacturing Assistance Center (TMAC) exists to enhance the competitive position of the state's manufacturing sector. TMAC's manufacturing professionals work with a wide range of industrial firms, delivering training, providing technical assistance and implementing best business practices. TMAC’s particular emphasis is on the needs of small to mid-sized manufacturers. Focus areas include lean manufacturing and lean office principles, technology solutions, strategic management, quality systems, environment and safety. The Texas Manufacturing Assistance Center provides affordable statewide access to training and technical assistance that smaller manufacturers and those in rural areas would not otherwise have.
The market should stay strong. EEDC Monthly Newsletter I November 2007
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EEDC Welcomes Elias Longoria... Board of Directors Mr. Elias Longoria, branch manager and Senior Vice President for the Edinburg branch for Lone Star National Bank, on Tuesday October 23, was appointed by the Edinburg City Council to the board of directors of the EEDC. The EEDC administers economic development programs, primarily funded through a local one-half cent sales tax. Longoria succeeds Mike Govind. His appointment is for a two-year term. As a board member of the Edinburg Economic Development Corporation, Longoria will take an active role in shaping and delivering the city’s long-term strategy for economic growth.
Assist on projects that involve hard infrastructure (roads, utilities, property, etc.) and soft infrastructure (educational and workforce development, institutional support systems and regulatory issues).
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Support the growth of particular clusters of businesses and target particular parts of the city for regeneration or growth
Prior to his current appointment, Longoria was a volunteer board member for the Edinburg Boys & Girls Club for seven years of which four of those years Longoria served as president. He is also the past president of the Rio Grande Valley Food Bank where he served as board member for four years. In addition, Longoria is also a member of the Valley Alliance of Mentors for Opportunities and Scholarships (VAMOS) and a member of St. Joseph Catholic Church.
Longoria along with Richard Garcia, EEDC President, Mayor Joe Ochoa, Fred Palacios, and Glenn Martinez, also on the governing board, will spearhead a range of initiatives to attract new jobs and investment to Edinburg, while boosting innovation and competitiveness in key economic sectors.
Mr. Longoria has an undergraduate degree in Finance from the University of Texas – Pan American and 25 years of experience in the banking industry. Longoria and his wife, Laura Chavana Longoria, along with their children, Marco, 9, and Amanda, 8, reside in Edinburg. His children attend Canterbury Elementary.
In addition to his role as an advocate for Edinburg’s economic prosperity, Longoria will: ·
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Support existing and new enterprises and ensure that the local investment climate is functional for local businesses.
Edinburg EDC, Phone: (956) 383-7124 Fax: (956) 380-2738 www.edinburgedc.com
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EEDC Monthly Newsletter I November 2007
PublicEducation Affairs Luncheon Session... G
ilberto Garza, Jr., Edinburg School District Superintendent, addressed the community as part of the Public Affairs Luncheon, on Thursday, October 25th at the Echo Hotel. The speakers addressed “ Education Update� as the topic of discussion. The Public Affairs Luncheons were introduced in 2006 to inform, involve, and educate our community and civic leaders. The event allowed business people to meet, network, and create opportunities for the companies they represent.
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he Edinburg School District is the Educational Center of the Rio Grande Valley of South Texas. Having the University of Texas-Pan American within our city has offered enormous opportunities for the teaching staff to pursue advanced degrees while keeping informed about the latest educational trends and teaching techniques. Edinburg is also home to Region I Education Service Center.
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dinburg, an "All America City," is a closely knit community which strongly emphasizes the value of a good education. The Edinburg School District encompasses 945 square miles which makes it one of the largest in the nation. It offers 3 high schools, 4 middle schools, 1 alternative campus and 27 elementary schools. The district has approximately 3,900 employees including 2,082 Certified Professionals and over 900+ paraprofessionals. The annual operating budget for the year 2003-2004 was $181,352,324 while maintaining a tax rate of 1.5993.
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he peak student membership for 2003/2004 was 25,547 and the district continues to grow at a rate of approximately 5% annually. The district offers a well balanced elementary Photo courtesy of: http://www.ecisd.us curriculum with small classes which concentrate on strong oral and written language programs. Due to the proximity to Mexico, a bilingual program is crucial in helping many of our students cope with language and concept acquisition. The district provides full day Pre-K classrooms as well as a gifted and talented elementary program.
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urthermore, Garza stated that secondary schools contain: A strong academic program at the middle and senior high school level with diversified course offerings in elective subjects and vocational education; A sound health and physical fitness for life program; An expanding computer and technology program; - A Primary Prevention Program (drug abuse & alcohol); A Special Education program serving qualified students with disabilities; A Fine Arts Program (Music, Art, Dance, Drama) and an Extra-Curricular Program offering a wide array of activities suited to students' individual interests.
Edinburg C.I.S.D. EEDC Monthly Newsletter I November 2007
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FederalHealthcare Reserve BankSession... of Dallas The Federal Reserve Bank of Dallas, San Antonio Branch hosted a special healthcare industry related discussion on Friday, November 9th at the Club at Cimarron. The Fed is interested in the dynamics driving the impressive growth of the medical sector in the Rio Grande Valley. This roundtable gave the Fed an opportunity to meet with local medical industry leaders and exchange information regarding developments in the healthcare sector. The information gleaned from this exchange helped the Fed gain better insight into the expansion and help us with future monetary policy consideration, while providing relevant information to the community. Margaret Jordan, President and CEO of Dallas Medical Resource and Board Member of the Federal
Reserve Bank of Dallas facilitated the meeting. Ms. Jordan, an industry veteran has had a 43 year career focused on private and public healthcare management, and has served as the President of Dallas Photo courtesy of: www.aha.org/board Medical Resources since 2004. The Edinburg EDC took part in this forum in an effort to gain awareness on developments in the healthcare industry.
Edinburg’s retail economy between January and August was up more than ten percent over the same eightmonth period in 2006, according to the Texas Comptroller of Public Accounts. The figure translates into more than $1 million generated in local sales taxes in August. The local sales tax are generated by the city’s 1 ½ cent local sales tax and the ½ cent economic development sales tax that is administered by the EEDC. Edinburg’s economy generated $11,140,300.48 in local sales tax compared with $10,091,024.70 during the same eight month period last year - an improvement of 10.39 percent.
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EEDC Monthly Newsletter I November 2007
- 2412 S. Closner Blvd.- 6pm 8pm Learn about permits, licenses, etc. to get your business started. Recommended course for new clients. Fee: NONE. UTPA Annex, Edinburg. 6pm - 8pm 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. Learn about permits, licenses, etc. To get your business started. Recommended course for new clients. Fee: NONE. UTPA Annex, Edinburg. 2pm - 4pm
The Edinburg Economic Development Corporation took part in the Annual Texas Workforce Commission Conference on November 14-16, 2007. The 11th Annual Texas Workforce Conference hosted by Texas Workforce Commission in Houston at the Westin Galleria/Westin Oaks, the conference theme was “Building Tomorrow’s Workforce -- A Partnership with Education, Economic Development and Workforce.” The conference provided opportunity to expand partnerships between employers, local workforce development boards, economic development professionals, educators, and other state and federal workforce partners.
EEDC Monthly Newsletter I November 2007
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Named one of Time magazine’s “Heroes for the Planet,” Robert F. Kennedy Jr. served as a keynote speaker Nov. 14, at the Fine Arts Auditorium, where he discussed the topic of “Our Environmental Destiny.” Kennedy earned the Time magazine honor for his success in helping Riverkeeper, an advocacy group that monitors and protects the nation’s water, lead the fight to restore the Hudson River. In addition, he has worked on environmental issues across the Americas and has assisted several indigenous tribes in Latin America and Canada in successfully negotiating treaties protecting traditional homelands. Kennedy serves as chief prosecuting attorney for the Hudson Riverkeeper and is president of Waterkeeper Alliance. He is also a clinical professor and supervising attorney at Pace University School of Law’s Environmental Litigation Clinic and is co-host of “Ring of Fire” on Air America Radio. Article by: Melissa Vasquez, UTPA
Interstate 69/TCC Update Two area highways made the cut in the state’s latest step toward a final decision on the route for an Interstate 69 extension linking South Texas to points north. Advocates expect the project to reduce congestion, enhance safety, expand economic opportunities and improve air quality, among other benefits. But motorists also might have to pay tolls to use some portions. Texas Department of Transportation officials on Tuesday, November 13th, unveiled the first major findings in their ongoing environmental assessment for the project. The results push U.S. Highway 281 in Hidalgo County and U.S. Highway 77 in Cameron County
into further studies over the next year to determine what roadway will officially be designated as the I-69 corridor. Traffic volume will largely dictate which artery wins. All three will likely receive improvements of some sort, but what those improvements are and the timing of those projects is up in the air, said TxDOT spokeswoman Gaby Garcia. She added that one highway could need vehicle improvements, while another would receive railroad upgrades. The next round of studies is expected to help finalize those details and specify which highways warrant the work. The state plans to begin scheduling public hearings and town hall meetings for early next year to solicit public input before announcing its final recommendation on the I-69 route in the summer. The 1,072page initial environmental study for the project, which is planned to stretch 650 miles and connect the U.S.-Mexico border to Texarkana in northeast Texas, essentially eliminates the possibility of a brand-new route.
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Photo Courtesy of: www.indianalogistics.com/
Instead, the report targets certain existing roadways for further study as candidates for expansion — including the possibility of overpasses, onramps, more lanes and toll booths. The extension of I-69 through Texas is part of the Trans-Texas Corridor initiative and would address federal demand to connect Mexico and Canada for improved commercial traffic. However, the federal government is not paying for it, leaving state officials to lean toward designating any expansion as a tollway. For more information, visit www.ttc.keeptexasmoving.com
EEDC Monthly Newsletter I November 2007
Richard H. Garcia Glenn A. Martinez Fred Palacios Elias Longoria Mayor Joe Ochoa
Ramiro Garza, Jr. Nelda Ramirez Leticia Reyes Dalila Razo
President Vice-President Secretary/Treasurer Director Director
Executive Director Assist. Executive Director Project Manager Administrative Asst.
EEDC is a non-for-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. Edinburg Economic Development Corporation 602 W. University Drive Edinburg, Texas 78539 Phone: (956) 383-7124 E-mail: info@edinburgedc.com www.edinburgedc.com
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