Wilco Business Review • April 2022 by Fidelis Publishing Group, LLC

The Gold Standard in Business News • Williamson County, Texas

INFLATION

and the Cost of Doing Business

WATER

2022 | Issue 2

How Much Will We Need?

CASH IS KING

WINGING IT

Even at Your Pharmacy

at Anchor Bar

FRANCHISES

TYLER WOLF

Solving Problems for Profit

Talks Texas Migration

10 QUESTIONS

ECO DEVO

Wilco CAC CEO Kerrie Stannell

RISKS

Wilco’s Newest Business Parks

RENEWAL

FOR ARCHITECT DOUG MOSS THE REVITALIZATION OF TAYLOR IS PERSONAL

ESTATE IN SUMMERS MILL Nestled in the heart of Texas with over a mile of water frontage where the mouth of the historic Salado Creek meets the Lampasas River, one will find Texas charm with southern grace. From the moment you enter the gate you will feel at home. These 303 acres pull you in and take your breath away. Up the paved road is an incredible custom-built house made for entertainment on a manicured lawn setting. Every room in this 3-Bedroom 5-Bath is well thought out with a spacious open concept Living, Family and Dining area. From the oversized Dining Room to the incredible wood Study, this house is pure perfection. An extra bonus is the oversized

“Craft Room” for all the creative types. From the back porch you can enjoy a peaceful evening breeze and even take a dip in the pool with views for miles. Surrounding the beautiful house are 100+ year old oaks that bring you back to your childhood dream of the perfect tree to climb. Picture the best day away from the hustle and bustle of life spent exploring, fishing, hiking, bird watching, or even horseback riding across these gorgeous pastures to the waterfront for a quick swim. This well taken care of estate in Summers Mill, just north of the Village of Salado, is a dream come true with endless possibilities for the land.

ELLEN BURNS

TX Real Estate Professional Team Lead Laurel Real Estate Group GRI & CNE Certifications Top 500 Austin Real Producers 2021 & 2022 254-495-7584 Ellen.Burns@CBUnited.com www.LaurelRealEstateGroup.com Affiliated real estate agents are independent contractor sales associates, not employees. ©2021 Coldwell Banker. All Rights Reserved. Coldwell Banker and the Coldwell Banker logos are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Realogy Brokerage Group LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.

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| WILCO BUSINESS REVIEW

SPECIAL SECTION: Inflation and its impact on businesses and consumers.

WILCO

BUSINESS REVIEW

CONTENTS TECHNOLOGY • Maximize Your Internet Speed

HEALTHCARE • Cash is King

FINANCE • An Entrepreneur’s Life

REAL ESTATE • The Texas Migration

BUSINESS BRIEFS • PEOPLE ON THE MOVE

FEATURED 5

ON THE COVER

Taylor architect and developer Doug Moss next to his next project, First Presbyterian Church in Taylor. Cover photo by Christianna Bettis All rights reserved. The Wilco Business Review is published monthly and mailed to C-level executives, business owners, policy makers, and community leaders in Williamson County, Texas and surrounding areas. Mail may be sent to: Wilco Business Review P.O. Box 213 Jarrell, TX 76537 info@wilcobr.com Wilco Business Review is a Fidelis Publishing Group, LLC publication and a product of AdvocateNewsTX Newspaper. Copyright © 2022

2 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

SPECIAL SECTION • INFLATION IMPACT

Energy • Construction • Labor • Agriculture

COVER FEATURE

TEXAS WATER

TEN QUESTIONS

TEXAS BUSINESS

FRANCHISE GROWTH

33 36

Doug Moss and the Revitalization of Taylor

How Much Will We Need?

Kerrie Stannell,Williamson County Children’s Advocacy Center CEO

Winging It At Anchor Bar

The Profit In Junk

COMMUNITY SAFETY

Georgetown Fire Code Updates

ECONOMIC DEVELOPMENT

Wilco’s Newest Business Parks

>Banking & Lending

SNEED VINE Established 1926

> Real Estate

> Land Development & Use

> Business & Corporate Law > Mediation

> Construction Law

> Litigation

> Tax & Estate Planning

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Sneed, Vine & Perry is excited to welcome Elizabeth McFarland ou team! to our Elizabeth specializes in Tax & Estate Planning

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Sneed, Vine & Perry a Professional Corporation

FROM THE The Gold Standard in Business News

PUBLISHERS

Publishers

Michael Payne Catherine Payne Executive Editor Ann Marie Kennon Executive Administrator Camy Reynolds Senior Writer Charlotte Kovalchuk Editorial Writers Cassidie Cox · Megan Beatty Columnists IT • Ben Lake Real Estate • Tyler Wolf Finance • Will Boughton Videography Todd White Photography David Valdez · Rudy Ximenez · Todd White Christianna Bettis Digital Media Director Jenny Campbell Graphics Sandra Evans • Ann Marie Kennon Distribution David Schumacher IT/Webmaster Jesse Payne Consultant W. Ben Daniel Public Relations Janet Hage

Water has been and continues to be a paramount issue in Central Texas. As many older Texans recall, the state was plagued with a devastating drought from 1950 to 1957. Crops died; animals only grew to half their normal weight; and throughout much of the state, farmers didn’t plant a crop for three years. While a deluge of rain brought an end to that dry spell, today, an ongoing drought cycle continues to jeopardize Texans’ quality of life. Although the Lone Star State is still an agricultural hub, there is one critical variable—Texas’ population has increased over two hundred percent, up from 9 million in 1957 to 29 million in 2019. Today, 20 million more people need water for drinking, planting, watering, cooking, and bathing, in addition to the agricultural requirements to feed them. Is there enough water for these needs? Where does it come from? How do we capture it? All great questions— and all with answers. This month, the Wilco Business Review begins a series of articles on water, focusing on the problems, and solutions, for Central Texas. Featured on this issue’s cover is Doug Moss, a visionary businessman who is restoring historic buildings that line Taylor’s Main Street and the environs around. Moss shares that while some lenders decried the live-work concept in Taylor as not viable, he persevered, producing a unique and very successful project. Moss and partner Darwin Harrison are continuing to apply their vision to additional projects in and around Taylor. Round Rock is home to a new franchise restaurant concept, but with a local operator feel and attitude. Anchor Bar in La Frontera in Round Rock has renovated the building that formerly housed Logan’s Roadhouse, transforming it into their own brand. Owner T.J. Mahoney and his wife Erin detail what moved them to trade the stability of corporate life for the risk (and reward) that comes with investing their time, talent, and treasure in this unique restaurant franchise.

Information and Marketing

We also share insight into what motivates and inspires one of the most influential women in Williamson County, Kerrie Stannell, CEO of the Williamson County Children’s Advocacy Center. Along with these stories of people accomplishing great things in and for Central Texas, you’ll find useful information and analysis on the real estate market, technology, finance, and more. So, enjoy this read as it continues to

Senior Advertising Executive Mark Elliott 512.240.2267 | 512.746.4545 mark@wilcobr.com

4 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

expand, both in size and presence. It’s great to be in Williamson County!

Michael Payne

Catherine Payne

IMPACTS OF INFLATION

Inflation and the Cost of Doing Business Annual inflation rate in the United States accelerated to 7.9% in February of 2022, the highest since January of 1982, matching market expectations. Energy remained the biggest contributor — 25.6%, with gasoline prices surging 38%. Inflation accelerated 4.7% for shelter; food 7.9%— the largest since July of 1981, namely food at home at 8.6%. New vehicle costs increased 12.4%; and used cars and trucks 41.2%. Excluding volatile energy and food categories, the Consumer Price Index rose 6.4%, the most in 40 years. The surge in energy costs due to war in Ukraine is still to come. Recent developments in Europe coupled with the ongoing supply constraints, strong demand, and labor shortages will likely maintain inflation elevation for longer. Source: U.S. Bureau of Labor Statistics

o one knows how long the current drift of inflation will last, but economists believe the trend could last for years, and the Federal Reserve agrees things may not be temporary. Even Elon Musk is talking about the pinch of inflation in the current national and global economic climate. In a March 13 Tweet, Musk said, “As a general principle...it is better to own physical things like a home or stock in companies you think make good products, than dollars when inflation is high.” MicroStrategy’s Michael Saylor tweeted back, “USD consumer inflation will continue near all time highs, and asset inflation will run at double the rate of consumer inflation. Weaker currencies will collapse, and the flight of capital from cash, debt, and value stocks to scarce property like bitcoin will intensify.” For those who are not billionaire entrepreneurs, owning a home and a small business is the backbone of lifestyle and livelihood. The federal government much shoulder blame for the inflated cost of doing business, having printed money to cover an unnecessary third stimulus package. Congressman John Carter (TX-31) weighed in

on how perspective is important to the American middle and business class. “President Biden even asked Congress for more COVID money this week. It goes to show that this administration is disconnected with the real world and they can’t even see how bad their policies are hurting Americans.”

WHAT DO WE DO? As business owners, unlike the inflationary spikes of the 1970s and 2008, companies have unprecedented volumes of consumer data as well as greater visibility and flexibility in the marketplace. Modern digital tools allow managers to turn data into decisions, which means there are new opportunities to see inflation as a strategic opportunity. Instead of worrying about how much more to charge customers to pay your own costs, it is a good time to study how and why you are charging. Perhaps it’s time to study behavioral patterns and change price gaps to steer customers toward more profitable—rather than expensive—offerings.

2022 • ISSUE 2 | WILCO BUSINESS REVIEW

IMPACTS OF INFLATION

by Ann Marie Kennon

ENERGY:

A KEYSTONE

TO INFLATION AND INDEPENDENCE

he energy share of the consumer price index hike makes up about one-third of the 25 percent inflation the nation has seen since the start of 2020. While the fallout of the executive branch’s attempts at greener policies and lifestyles continues at the gas pumps, many remember the energy crisis of the 1970s—which was doubly impacted and inflated by fewer crude imports from the Middle East—and reflect on the loss of America’s status as a net energy exporter since then. Still, part of the jump in energy costs is organic; i.e., the return to expected levels of consumption following the record low demand during the pandemic lockdowns and peaks, and international factors that have nothing to do with government interference.

IT’S ABOUT INDEPENDENCE

While Americans tighten their belts and companies tighten their budgets, Todd Staples, president of the Texas Oil & Gas Association affirms that inflation and independence are undeniably connected. “This crisis should be a wakeup call that we need strategic American energy policy that treats oil and natural gas as an asset and not a liability. The suffering of consumers at the pump underscores the importance of domestic energy production, and American consumers are feeling the repercussions of canceled pipeline projects, delayed approvals for permits and the discouragement of additional expansion; poor decisions all exacerbated by the [Ukraine] war.” In addition to crude, natural gas, coal, and electricity demand also fell during the pandemic with slowing economic activity. As the world moves beyond pandemic conditions, companies worldwide are not able to meet the rebounding demand, which accounts for cost hikes in food and gas prices. As well, the massive number of at-all-costs energy buys mandated by the CCP for its domestic manufacturing is creating global demand and driving up prices on coal and natural gas everywhere. Without domestic production, the U.S. is just another country vying for the finite availability.

Meanwhile, in the United States, the oil-rig count dropped by 75 percent to about 250 rigs over the pandemic months. Now that prices have recovered, companies are finding it difficult to hire workers to come back to substantially increase the rig count and meet the rebounding demand. Like other parts of the economy, they need truck drivers too as pipeline transport has been substantially curbed. Staples adds, “The administration calling on foreign countries to increase production a few months ago, rather than encouraging local jobs and local investment, had a chilling effect on expansion. This tragic event should help reset American priorities and recognize that American oil and natural gas are produced in more environmentally responsible ways than in any other country in the world. Our companies have strong commitments to address concerns about our climate, while providing the oil and natural gas that fuels modern life and keeps nations secure.”

A study by the Manhattan Institute concluded transportation of oil and gas by pipelines results in fewer spillage incidents and injuries than road and rail, and noted, “Americans are more likely to get struck by lightning than to be killed in a pipeline accident.” As recently as 2018, 70 percent of U.S. crude was transported by pipeline. The safety of energy transport, in terms of human death and property destruction—from best to worst: boats, pipelines, trains, then trucks1. A typical tank trailer holds about 9,000 gallons or 200 barrels, a little under one-third of a rail car. Shipping by truck instead of the Keystone XL requires another 1.5 million tanker trucks. Trucking is the most risky form of transport from an accident and spill standpoint. Pipeline transport of crude cost about $5 per barrel, rail costs $10-15, and trucking is higher due to additional labor requirements.

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1 O ilprice.com

IMPACTS OF INFLATION

IN THE REAL WORLD ENERGY CASE STUDIES

ew places feel the pressure of energy inflation more than the Port of Corpus Christi, which exports crude and natural gas around the world and is generally known as energy port of the Americas. Thomas Graham, founder of Crosswind Media & Public Relations, is a native of Corpus Christi and represents Fortune 500 clients in the region; Graham says, “Many of my clients have been impacted by the dynamic economic conditions we are facing.” Graham agrees with Todd Staples as they both watch the port fill the void that the White House administration seems to believe Russia should fill. He adds, “Putin has chosen to weaponize his nation’s energy production and everything from gas companies to real estate developers are looking at the parallel rise in energy and housing, plus higher interest rates, which is a double-edged sword for corporations and consumers alike.” As Russia becomes a primary source, the United States and Europe are beginning to wake up to the fact that energy independence is a critical strategy asset for democracy in general and business specifically. He adds, “The previous administration, Secretary Perry and Governor Abbott included, recognized the need for independence. The main stream media ridiculed the party and the President when we were a global exporter of natural gas, and ensured we were free from the tyranny of Putin. As he attempts to march across Ukraine, I hope the average voter remembers the consequences caused by shutting down pipelines and forcing the U.S. and other nations to rely on what Senator Cruz calls the ‘Russian gas pump.’ When we are told to just get over it because it is Putin’s price hike, that does not speak to the real and valid concerns of business owners

who have to help employees make ends meet. It is that type of Beltway [talk] that causes business owners to lose trust in the government.“ Currently, Graham says his Corpus Christi energy clients are diverting their shipments elsewhere and Crosswind is helping tell the national story about production. “Locally,” he says, “people we work with in real estate or marketing are concerned because the rising costs of living will slow the energy market further. At the end of the day, the work we do is for the communities we serve. When a gallon of gas jumps from $2.79 to $3.99 and it costs 30 percent more to feed a family because the food supply chain is paying those same increases, the number of employees living paycheck to paycheck increases—it is harmful across the board.”

EXPERT ADVICE

As an apex marketer, Graham recommends more empathy for customers and team members and the challenges they face in business and daily life. “We need to recognize that, as a nation, the pandemic is a unique experience and a lot of people are hurting.”

Make sure your strategy is directly tied to your core business offerings. “There are many things a business does to bring it extra money but make sure everything you are doing plays to your strengths, is profitable, and there are good people doing the work. Following that, shepherd your resources, reinvest in your organization, and take care of your people.”

Thomas Graham is the founder of Crosswind Media & Public Relations in Austin. For more than 20 years he has helped business leaders energize their brands and achieve business objectives through effective media and corporate communications strategies. He is an accomplished brand architect, crisis-tested media spokesperson and an expert in shaping public opinion and managing complex communications programs. (photo courtesy Thomas Graham)

2022 • ISSUE 2 | WILCO BUSINESS REVIEW

IMPACTS OF INFLATION

SCARCITY MATTERS With supply shortages and rising material costs impacting quality of life all over the world, businesses and consumers alike continue to feel the effects of an ongoing inflation crisis. For Nick McIntyre, vice president of land development with Perry Homes, inflation is a constant challenge when it comes to delivering a client experience that meets the company’s vision and timeline. “We have to offer options we didn’t before and provide alternatives to the options people selected but are no longer available,” he says. “It makes it difficult to promise, when a person wants to buy a home, that what he or she wants will be available at the end. We try and get clients what they want, but at the end of the day it may not be available.”

“There’s no secret sauce in it. It’s a standard supply and demand issue we’re dealing with.” 8 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

HEADWINDS FOR

HOMEBUILDERS by Charlotte Kovalchuk and Ann Marie Kennon Fluctuations in the commodities market have made it difficult to project home prices a year in advance—Nick’s usual business plan timeline. “At this point in this market, we’ve nearly completely transitioned to evaluating our business month to month,’ he says.

PRICE INCREASES

For developer Mark Allen of Jarrell Development Group and Cardinal Farms, shortages and price increases for windows, lumber, and fuel have inhibited his ability to serve home buyers. Like many who rely on suppliers, he has had to order windows three months in advance. He also has to consider the cost of diesel, for which $6.00 per gallon and more is beginning to creep eastward from California. Even before Russia invaded Ukraine, the fuel that runs the global economy was in short

supply. Some analysts say even if oil and gas prices decline, diesel fuel will encounter spot shortages due to refinery slowdowns. Allen’s business partner, Ron Heine, has faced the same challenge of rising material costs affecting home prices.

“You may see a 2 or 3 percent increase over the course of a whole job, but every month it seems like we’re adjusting the price 3 percent. Your buyer wants a fixed price, but with the prices changing so radically all the time, it’s hard to do a fixed price home any more,” he says. Fewer homes coming into the market has only compounded the cost increases. “Lack of inventory is the biggest thing that drives it up. Demand is still through the roof. If we had a finished lot today, we could sell everything we had tomorrow,” McIntyre says. But that demand shows just how desirable Central Texas is for prospective residents, Allen says. While Texas is not immune to the impact of recession, he expects the state to weather that storm. “Even eight or nine years ago when

Obama was saying we had the worst economy since the Great Depression, and it was bad, but Central Texas didn’t go through what most of the country went through. We’re blessed to be in Williamson County.”

LABOR

LABOR SHORTAGES

On top of market fluctuations, the labor shortage is challenging the home building process, partly because construction workers are in short supply and asking for higher pay, McIntyre says. “Some of our employees are real quality guys who will ask for an increase. We try to accommodate the men we know and really want to keep. We also add bonus incentives to finish in a timely fashion. We want to keep the folks we see doing a good job and maintaining quality.” Heine adds, “There is a labor shortage in the construction industry, but not a shortage of people. I believe there are enough people, but we have to entice them into doing those jobs, which has driven the [home] price up.” Another challenge has been finding qualified workers or providing training in a time frame that ensures homes are built in a timely manner. “People getting trained and learning new skills—all that takes time, but the amount of work keeps increasing,” he says. Labor shortages are not limited to construction and development. Georgetown Mayor Josh Schroeder says inflation is affecting most businesses in the city that rely on a workforce. “Inflation touches a business in many places. For instance, for a bar, you have to consider the rising value of the land, and labor costs, then add materials, supply, and equipment. Simply put, when the rent goes up, the price of beer goes up,” he says. “Bars and everyone else, from restaurants to engineers, say the pinch point is labor. Materials are a problem, but businesses are struggling to find labor even if they are willing to pay.”

MUNICIPAL MATTERS

Mayor Schroeder added, “We know retail issues will be worked out as the supply chain slowly returns to normal, and developers will always find land to build on. Our biggest challenge—human capital—cannot be created out of thin air. We have great jobs, we just need people to fill them.” The mayor explains the city has been trying to hire engineers and other management professionals, but every engineering company in Texas is looking for engineers right now. He notes Georgetown and many other Williamson County cities are in hyper growth mode engineering jobs are in highest demand.

IMPACTS OF INFLATION

THE PRIORITY OF

IMPACTS OF INFLATION

THE PROBLEM

As businesses return to pre-COVID operations, and unemployment checks are no longer coming, the issue is not that people do not want to work. The mayor said, “All our businesses are growing and each simply needs more people than they did two years ago to keep up with customer and consumer demand. You can’t make products if you don’t have the people to unload the trucks and assemble the products. You can ask everyone from Mesquite Creek Outfitters to Steger Bizzell Engineering—even the city of Georgetown—we talk daily about how to recruit and take care of people. At the very least, we have to consider retention.”

Mayor Schroeder says he talks about it daily with other mayors and Georgetown followed the County’s lead and gave the ISD employees a mid-year raise of 3 percent. “We’ve lost too many employees to the private sector. If we need five engineers, we have to hire seven because two others are being recruited at twice the salary.” What this means for businesses who work with the city is to exercise patience when submitting applications or waiting for work to get done because there are fewer staff to push through the paperwork. “Sadly,” the mayor adds, “private companies pay these higher salaries, which means they raise their billing rates to clients, which is passed to developers. This, plus gas and groceries going up, means everyone is making more money, but it also costs everyone more to buy.”

2022 • ISSUE 2 | WILCO BUSINESS REVIEW

IMPACTS OF INFLATION

THE GREAT by Ann Marie Kennon

W There’s no doubt the pandemic put a strain on supply chains and then President Biden came in and layered massive government spending on top that. As a result, the country is dealing with runaway inflation. It’s costing more to go grocery shopping, fill up your car with gas, just basic necessities. Americans are struggling because their wages are down, but their expenses are much higher than they were just a year or two ago. Congressman John Carter Texas District 31

RETIREMENT

hen it comes to inflation, Williamson County is no different than any city or the state itself, according to County Judge Bill Gravell, Jr. “If you’re pleased with the price of gas, a gallon of milk, and what meat costs in the store, then clearly you are pleased with who is in the White House.” While the average resident and consumer have no control over inflation, county leadership took the reins and voted for the first-ever mid-year salary increase for employees to help manage the challenges of inflation. Judge Gravell added, “Unfortunately we are dealing locally with decisions being made in Washington D.C. and we are competing with private companies and agencies able to give raises any time, or recruit at higher salaries.” Williamson County Human Resources reported in February that the county had 200 vacancies, a reduction from the previous quarter at 240. The judge said inflation is to blame because although government and municipal jobs mean good benefits and retirement plans, the salaries are generally lower than similar positions in the private sector. “When we have people leaving their jobs as window clerks because they make more at a fast food restaurant, that is a problem, and it goes all the way up to our highest paid engineers. Our cities and counties simply can’t compete, particularly when engineering companies are even poaching from each other. Inflationary seasons are a great time to tell someone ‘You’re really good at your job, why not leave this $100,000 job and work for us at $150,000?’ “

GETTING OUT

Judge Gravell echoed what Georgetown Mayor Josh Schroeder explained; (previous page) the dearth of quality employees is no longer about people staying home and collecting unemployment. “Many have referenced the ‘great resignation’ but we

10 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

need to be cognizant of the great retirement. I know of one elected official who is 62 and able to retire this year. His pension will be half his annual salary but he can fill the same role, provisionally, five to eight days a month and still take care of his family. He looked at his quality of life, and the fact that things may not get any better in his next four years, and decided he did not have to deal with it any more. We are seeing the same thing in EMS and law enforcement. He is just one example of more than 100 county employees who will retire this year. My fear is that we are losing the wisdom and institutional knowledge in the workplace.” Until the pandemic, the average age at which Americans chose to retire had been rising for 30 years. But, two-thirds of those leaving their jobs in the summer of 2021 were retiring. One million were ‘normal’ retirements, an additional 1.5 million opted for early retirement. Today, nearly half of Americans expect to retire before they turn 62, and many are planning to do so by age 55. While the increase in high-level jobs is a boon to the next generation of upwardly mobile workers and, as Judge Gravell stated, the new paradigm of senior hiring may be more important as knowledge workers become more scarce in the workplace.

AGRICULTURE

nlike a software or manufacturing company that can create new product paradigms and pricing to maintain profit under inflationary conditions, the agriculture industry’s primary model has and will always be growing and selling food. The same challenges exist for those growing renewable energy products; even as one governor supports bio-fuels, another green policy governor is favoring electric vehicles. In every case, supply chain issues, rising prices for fertilizer and other farm inputs, plus inflation anywhere over 7 percent, means many farmers must borrow money at inflated rates until crops or meat are ready for market, or plan for smaller yields based on future costs.

PRICE AND PAIN POINTS

In July 2020, urea fertilizer was $200 per ton. By February 2022, it was more than $600 a ton, according to data collected by The Fertilizer Institute. Cattleman Jim Schwertner affirms, “We get a lot of our fertilizer from Russia,” he says, “Those prices were already getting higher before the war because the International Trade Commission put duties on phosphorus imports from Russia. Corn has also doubled in price, so it costs a lot more to feed cattle, hogs, and poultry. “Consumer beef prices, specifically, are up 20 percent because the supply chain has been interrupted in multiple places. What many people don’t realize is that those ‘interruptions’ are revenue pits between the consumer and the rancher, who is not determining the price of his fertilizer, feed, or products, or putting more profit in his pocket. Sadly, the same is true for businesses in nearly every industry.” “Beyond that,” he adds, “the president hurt us when he shut down the Keystone pipeline and began purchasing

photo by Morgan Anderson Photography, courtesy of Jim Schwertner

ARE HURTING BUSINESS AND THE MIDDLE CLASS

IMPACTS OF INFLATION

INPUT COSTS

IMPACTS OF INFLATION

energy from other countries; which pushed energy prices higher. Our government does not realize the extent to which farmers and ranchers protect the environment, so the aversion to pipelines—to the detriment of agriculture—is ironic.” In agriculture in particular, higher energy prices affect the middle class because nearly everything is transported by truck or rail and farmers and ranchers have to pay twice. They cannot control the cost of fuel or corn and must pass it on to the consumer. Schwertner says, “Farmers pay retail to acquire resources, sell products at wholesale, then pay again to ship their products. The only way to correct this is to get energy costs down.” He concedes that consumers are suffering because all food products are up by at least 30 percent but everyone must eat. “People can always substitute cheaper sources of protein; chicken or fish, and then go to beans and cheese, but all food products are becoming more expensive and there is no way for farmers to mitigate the effects. When crops or animals are ready for harvest or slaughter, they have to go, and the consumer will have to pay for it until we can get the costs corrected.”

IT’S ABOUT PUBLIC POLICY

While Schwertner and others continue to care for our food sources, he believes it is not right, in the 21st century, that Americans can not afford food. “The most positive thing we can do is elect fiscally conservative leaders who will stop the stimulus, affect our energy independence and worry more about feeding our families than about the environment. We have more energy in North America than all other countries combined. There is no shortage of energy, we just need to do it right.”

2022 • ISSUE 2 | WILCO BUSINESS REVIEW

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by Ann Marie Kennon

DOWNTOWN RENEWAL

photos courtesy Douglas Moss

TAYLOR REVITALIZATION IS PAYING OFF In suburban America, the renaissance of historical town centers incorporates each city’s vision and mission to marry the old with the new in a constant effort toward positive growth. Taylor, a city built and thriving on agriculture is on the cusp of becoming a world technology center, but architect Douglas Moss is driven to bridge the two. He and Darwin Harrison, his partner at Public Sketch, LLC, have a vision to rehabilitate and repurpose historic downtown buildings and develop new projects while maintaining the smalltown character of their hometown. The goal is as personal as it is profitable. Moss grew up in Taylor and his family still lives there. His brother owns the True Value hardware store that has been in the family for 55 years, and he literally knows the streets, having ridden his bike on all of them as a young person. In the aggregate, these experiences have provided him many and unique perspectives on the history of the city.

WHERE TAYLOR HAS BEEN

WHERE IS TAYLOR NOW?

While Taylor has not experienced explosive growth on the same timeline as cities closer to IH-35, it is a Nationally Accredited Main Street City. Public Sketch plays a part in the Main Street mission to build stronger communities through preservation-based economic development. With greater access provided by the SH-130 Toll Road, and even with help from the historic tax credit program, there remain many buildings awaiting restoration and vibrant new tenants.

Moss says he always had in interest in being a small-scale real estate developer and four years ago Harrison told him about the building at 2nd & Main in downtown Taylor, which had been for sale for many years and in some areas was nearing collapse. “The prior owner was not able to maintain a large building by herself,” he says. “By using the Historic Rehabilitation Tax credits offered by the Texas Historic Commission and National Park Service, we turned this nearly derelict structure into a vibrant new building that houses Frills and Western Darlin, two unique clothing and gift stores and nine live-and-work lofts.”

Moss and Harrison are planning cumulative changes that will bring back the vintage feel to the city. “We are focusing on pieces of the overall picture,” Moss says. “We are not like a developer who buys 100 acres and builds something massive. These small projects will have a huge and positive impact because they are incremental and, we like to say, we develop with the public in mind.”

2nd & Main Loft

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For 2nd & Main and others, he is investing his own money but adds that investors and banks did not support his ideas at first. “My plans to restore downtown buildings did not seem sustainable because banks didn’t believe anyone would want to live upstairs from a commercial operation in downtown Taylor, or near an overpass or train track or have no parking.” But Moss, whose day job as the managing partner of the Austin office for the international architecture firm of Steinberg Hart, works on large-scale municipal, university, and mixed-use residential projects, scaled those architectural insights to see the building bared to the bones, and had the vision to restore it from the pipes and electrical to the roof and façades. The result is a destination retail tenant and unique loft spaces all rented within six months of completion.

View from 2nd & Main loft Right: Exterior of the block Ground floor, 2nd & Main Frills Shop Exterior scene at the overpass; one of the ‘gateways’ to downtown

Public Sketch is just one developer success in the story of moving Taylor forward in a holistic approach to honoring the past. The nearby McCrory Timmerman and adjacent Titsworth Furniture buildings were famously renovated in 2014. Artist and designer Judy Blundell and partner Mark Nibbelink rebuilt them from the inside out, added an Italian restaurant, coffee shop, 30 businesses and four residential lofts. Two blocks away, another local real estate developer purchased the old Taylor High School, built in the 1920s, and converted it to a multi-use property, including a bar, coffee and sandwich shops, and office space. “My vision, and what those two developers are saying, is that the history is important. While these buildings may need a new use—from a high school to a social space—there’s an enormous opportunity. You don’t always need a new building,” said Moss.

WHERE IS TAYLOR GOING? Moss expects this downtown residential trend to continue as the median home price in Taylor is $348,000, an 85 percent increase since 2019. As the price of land and homes continues to increase, these city center residences will be more important and more in demand for the growing number of people who want to make Taylor their home. Currently, Public Sketch is focused on purchasing downtown buildings and land to create more destinations for Taylor and a gateway to the downtown area. Moss says, “Amtrak comes through every day and we want the entrance to our city to be great. The idea is to give people a sense of energy and activity downtown. We want visitors to want to live here and business owners to want to open or relocate here. Seeing people biking, walking, eating, and shopping creates a human scale to the city blocks and is part of the cycle of growth.”  2022 • ISSUE 2 | WILCO BUSINESS REVIEW

DOWNTOWN RENEWAL

WHAT’S NEXT? In March 2021, Moss purchased the historic Presbyterian Church (1912) and fellowship hall (1952) on 6th street, and the connecting empty lot at 7th & Talbot. The future of this property, which sat unused for more than four years, is a multi-use site with a retreat feel, including an outdoor food & beverage space, a nine-room boutique hotel with a pool, and 17 rental apartments in a courtyard complex. Landscape design will also reflect the city’s history as they plan to preserve many of the older trees on the property. “We have some tenants already, despite just being in the planning phase, and we are looking for more,” Moss says. What is next for Public Sketch, however, was always the plan. With the arrival of Samsung, the risks are somewhat lower, but everything Moss and Harrison did on their new half-city block and their downtown development was in motion long before the tech deal was made. Moss says, “There is always risk; for instance, we would like the historic church to become a restaurant but there is no restaurant this size in Taylor. Even though there is no construction yet, we purchased land and have been working on the architectural and engineering design. We are fortunate Samsung is happening but we were always going to rehabilitate these buildings for Taylor.” He believes preserving the old buildings is critical to strengthening the small town feel, even as he builds new structures as part of these projects. He says, “We are working on a small scale for financial gain but, more importantly, it’s the right thing to maintain the character of Taylor. I would rather wait longer to get an ideal tenant who understands this building’s connection to Taylor rather than a corporate chain.”

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GETTING IT DONE Moss says Taylor and other cities can evolve, and benefit most, from having buildings on the National Historic Registry. “Twenty years ago, the entire downtown of Taylor was registered, which means most every building is either a primary or supporting landmark. When you begin the process of rehabilitating these buildings, you can receive tax credits. It’s not about preservation— retaining every 1920s doorknob—it’s about changing the use of the building while making sure the historical character is part of the renewed structure.” The Texas Historic Commission provides a 25 percent tax credit on construction and the National Park Service provides 20 percent; i.e., a

developer who spends $1 million will get $450,000 back in credit, and all landmark buildings are eligible as long as developers meet strict rehabilitation requirements and go through a very deliberate process. Moss adds, “There is nothing else you can do in this world to get 45 percent back on your investment. It’s a remarkable program, and it’s tough, but for that return, it’s worth it.” Scan the code to contact Public Sketch.

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2022 • ISSUE 2 | WILCO BUSINESS REVIEW

WILCO

BUSINESS REVIEW

TECHNOLOGY

CRYPTOCURRENCY BASICS

by Ben Lake

y now you’ve surely heard about cryptocurrency, or at least its first and most popular example, Bitcoin. You may have even purchased some yourself out of curiosity or at the urging of a friend. But do you really understand how it works and what you’re buying?

CRYPTO-ORIGINS Bitcoin was first proposed in late 2007 in a white paper signed with the enigmatic name of Satoshi Nakamoto. The identity of this person or group is still unclear and a conversation unto itself, but it proposed an ingenious method of anonymously trading a digital currency through a decentralized ledger called a blockchain. This ledger is open and accessible to all participants, and therefore immune to illicit manipulation. There is no central bank or government controlling the currency – it is truly without political borders. Continuing to use Bitcoin as our example, the currency was designed with a finite number of digital coins that can be created—21 million, to be exact. Creating a coin requires a computer to perform immense and complex calculations—a process called “mining”. Mining digital coins can be done by anyone but is most often done by for-profit groups using huge computers and immense amounts of electricity. Once a coin is mined, fractions of it can be sold to others.

But what are you really owning if you purchase cryptocurrency? Like any item, its scarcity contributes to its perceived value. The U.S. dropped the gold standard in 1971, and our dollars now have value because they are backed by the full faith and credit of the government. One could argue that Bitcoin derives part of its value by being backed by a growing portion of the global population.

NEGATIVES Cryptocurrency is not without inherent challenges. For one, losing access to your digital wallet means the money is effectively gone forever—remember, no central authority exists to help recover it.

An interesting side study would be to figure out how many bitcoins have been permanently lost. With a finite number of bitcoins in existence, the value depends in part on how many can still be traded. Another challenge is the volatility of cryptocurrency. This attracts investors, but severely limits its practicality as a day-to-day currency for us regular folks. The larger challenge—some would say feature—is that cryptocurrency has become the currency of choice for illicit activities, namely ransomware.

True anonymity allows a hacker to get paid by its victims, or criminal gangs to transfer funds around the world instantly. Cryptocurrency has also come under fire for consuming resources without any real-world gain. The mining process is estimated to account for 0.5 percent of the world’s electricity usage. The New York Times says this is more than the country of Finland, or seven times what Google’s global operations use. And the gamer in your family will certainly bemoan the limited availability of their favorite graphics card. This is because the chips inside high-end graphics cards are surprisingly far faster at mining than regular computer chips.

BOTTOM LINE Cryptocurrency is a fascinating topic and I have only touched on the basics in this article. My personal opinion is that digital currency is here to stay but won’t be widely adopted until its volatility settles down. Until that time, it will continue to be the domain of tech geeks, risk-tolerant investors, and criminals.

Fun fact: El Salvador became the first country to make Bitcoin legal tender on September 7, 2021.

BEN LAKE Ben is the owner of Open Road Network Services, a Georgetown-based business providing honest, reliable, and affordable technology support to individuals and small businesses. He is particularly passionate about educating and empowering his clients to become more comfortable with technology. • 512-942-7623 • OpenRoad.network

18 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

WATER PLANNING

by Dr. Justin C. Thompson

HOW MUCH WATER WILL WE NEED ARE WATER SUPPLIES SUFFICIENT IN THE FUTURE? TO MEET THESE NEEDS?

exas addresses these questions every five years through a regional water planning process. The key goal of this process is to ensure Texans have sufficient water to meet their needs during a repeat of the most severe drought on record. To accomplish this, 16 regional water planning areas—each composed

IF NOT, WHAT WILL THE IMPACT OF WATER SUPPLY DEFICITS BE AND HOW MIGHT WE AVOID THEM? of at least 12 statutorily required interest groups—evaluate population projections, water demand projections, and water supply estimates over a 50-year planning period. These identify potential water shortages and recommend water management strategies to resolve them. Regional water plans are then

What do these planning documents say about the future of water in the tri-county1 area? Water Demand: Population growth is a critical driver of increasing water needs. The population of the tri-county area is projected to increase by 130 percent or 1.3 million people over the 2020-2070 planning period. The majority of this growth is expected in Williamson County (+1.012M) and Bell County (+316,000) while Milam County population growth is minimal by comparison (+6,000). More people generally means more water is needed. Consequently, water demand in the tri-county area (Figure 1) is projected to increase by 92 percent, or nearly 220,000 acre-feet/year with 95 percent of that increased demand arising from municipal uses. Most of the increased water demand is expected in Williamson County (+167,000 acrefeet/year) and Bell County (+52,000 acre-feet /year) with only a modest increase in demand in Milam County (+832 acre-feet/year). Water Supply & Availability: To understand the future of water in the tri-county area it is important to first understand the distinction between water supply and availability as those terms are used in Texas water planning. Simply put, water supply is legally authorized for use, has existing infrastructure to connect it to water users, and can be relied upon during drought conditions. Available water considers only whether the resource could be relied upon during drought conditions. In this way, water supply is a subset of availability and may be increased by securing new water permits and/or building new infrastructure 1 Williamson, M ilam, and Bell Counties

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reviewed and approved by the Texas Water Development Board (“TWDB”) which uses the approved regional plans to prepare the state water plan. The 2021 Brazos G Regional Water Plan and the 2022 State Water Plan–Water for Texas are complete and available from the TWDB.

to connect reliable water to users. Water planners in Texas ultimately compare projected supply with projected demand to determine when and where Texans will have a surplus or deficit under drought-of-record conditions. Water Deficits – Water supply in the tri-county area is projected to increase by 14 percent or 30,000 acre-feet per year over the 2020-2070 planning period (Figure 2). However, this increase in supply is insufficient to satisfy increasing demand and, under drought-of-record conditions, water deficits are projected for the area throughout the planning period (Figure 3). For example, if the tri-county area were struck by drought-

WATER PLANNING • 186,000 acre-feet in Williamson County, $3,327 million • 43,000 acre-feet in Bell County, $2,447 million • 5,000 acre-feet in Milam County, $143 million

of-record conditions in the year 2070, there would be nearly 232,000 acre-feet less water available than demanded—an approximate deficit of 167,000 acre-feet in Williamson County, 32,000 acre-feet in Bell County, and 33,000 acre-feet in Milam County. Municipal users in the tri-county area would bear 78 percent of these 2070 projected deficits. Economic Impacts of Deficits: The TWDB uses economic models to estimate what the cost to the economy would be over the course of a single year of drought-of-record conditions if projected water deficits come to pass. These analyses are considered by the regional water planning process and estimate that projected water deficits in 2030 would result in tri-county area losses of $1.598 billion in income per year. • $686 million in Williamson County; 7,832 jobs lost • $526 million in Bell County, 6,178 jobs lost • $386 million in Milam County, 31 jobs lost By 2070 these tri-county area losses rise to $3.294 billion in lost income per year. • $1,824 million in Williamson County, 39,203 jobs lost • $1,076 million in Bell County, 6,178 jobs lost • $394 million in Milam County, 31 jobs lost A multi-year drought-of-record would drive these per year losses even higher. Proposed Deficit Remedies: If we assume population growth is desirable and should not be dissuaded, the only way to remedy projected water deficits is to increase water supply either by reducing net water usage or tapping into available water. The current water plan for the tri-county area anticipates both approaches and, by 2070, proposes to increase water supplies by 233,000 acre-feet per year.

If all of the approaches described by the regional water plan are implemented, the resultant increase in water supply is sufficient to avoid water deficits under drought-of-record conditions in Williamson County and Bell County throughout the planning period but not Milam County (which would expect a deficit of between 29,000 and 32,000 acre-feet per year, depending on when drought might strike). Of the 233,000 acre-feet per year of water supply proposed to be created by 2070, 32 percent (74,000 acre-feet/year) is to be generated by reducing demand or reusing existing water sources, 21 percent (49,000 acre-feet/year) is to come from new groundwater supplies (36 percent of which, or 17,000 acre-feet/year, will originate from outside of the tri-county area), and 47 percent (110,000 acre-feet/year) is to be sourced from new surface water supplies.

Key Takeaways The tri-county area is expected to continue growing rapidly and with that growth comes an increasing need for water. Projected water supplies are insufficient to meet projected demand; unless action is taken there will not be enough water to go around when the next drought-of-record strikes. Failure to address this dilemma would mean billions of lost dollars in income and tens of thousands of lost jobs. The latest round of water planning provides one possible road map to avoiding this bleak future. All data discussed in this article are synthesized from the 2021 Brazos G Regional Water Plan and are available to the public. Scan the Texas Water Development Board code to review.

DR. JUSTIN C. THOMPSON Justin C. Thompson received his Ph.D. from the Jackson School of Geosciences at the University of Texas at Austin (UT) in December 2021. His dissertation research focused on groundwater recoverability and management in Texas and he served as a graduate research assistant at the UT Bureau of Economic Geology for over three years. He holds a Master of Science in Energy and Earth Resources from the UT Jackson School of Geosciences, a Master of Global Policy Studies from the UT LBJ School of Public Affairs, and a Bachelor of Business Administration in International Business from Texas Tech University. Dr. Thompson was an international project development and finance professional for 12 years prior to his graduate studies, is proficient in Mandarin Chinese, and has extensive experience with nonprofits bringing ground/rainwater water solutions to underserved communities in East Africa.

2022 • ISSUE 2 | WILCO BUSINESS REVIEW

INFLUENCERS

TEN QUESTIONS WILLIAMSON COUNTY CHILDREN’S ADVOCACY CENTER CEO

KERRIE STANNELL

THE BEST LEADERS SUPPORT THEIR TEAMS BY empowering and inspiring co-workers to unite and be accountable; creating opportunities and time to focus strategically on how to sustain and grow our services. In the nonprofit or small business world, there are many hats to wear and leaders can get caught up in working for the organization and not on the organization, so it is important to build on our strengths. Beyond that, the best leaders support their teams whenever there is an opportunity to take risks, fail, and grow.

I DEFINE A GREAT ORGANIZATIONAL CULTURE AS ONE THAT...

TEN QUESTIONS

promotes an increased sense of safety, trust, and support for the team within it.

ONE THING I TRY TO DO EVERY DAY... is actively listen to my team. It helps me to be grateful and appreciative for what they and others are doing around me to make everything happen.

I FEEL MOST ALIVE WHEN... I hear coworkers sharing or learning new ideas or concepts that will benefit our teams or our services. I thrive on challenges and I embrace being uncomfortable—it is how I grow as a person and a leader.

I HANDLE NEGATIVITY BY...

keeping an eye on the big picture and maintaining a positive boundary. I make every effort to disarm negativity as dwelling on it gives it power. I listen to what others are not saying and deduce what is making them unhappy, in the hopes we can tackle the situation to a positive end.

ONE THING THAT IS DIFFICULT FOR ME BUT I ENJOY IS...

4 7

the dual nature of the work we do at the CAC. It is a daily challenge to acknowledge and assimilate the tragedies and victimization that bring people to our door. But, the utter fulfillment of seeing the restorative power of our services and the recovery of children and families over time brings me much joy and relief that we are able to do so.

TO AVOID DISTRACTIONS, I ... ...this is a hard question to answer as my day is filled with distractions. I try, however, to take stock and prioritize, working in 60-90 minute blocks, to maintain focus. Keeping my door open enables me to move about the office and be aware of what’s going on with the organization. I thrive in a busy, energetic environment and love that my team is as driven as I am.

22 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

MY BEST ADVICE FOR HANDLING CHANG

INFLUENCERS

IN TEN YEARS I HOPE TO...

GE IS...

have had a positive impact on my community, and made a difference in the lives of the people I work with and support.

I DEFINE SUCCESS AS... impact and love. My mission and my ultimate goal are an affirmative belief that I have made the people around me feel important and loved, and that I have impacted their lives in a positive way. It begins as a personal notion of success, which then bridges to the professional and transcends traditional ‘business’ rules.

Above: Kerrie Stannell, Williamson County Judge Bill Gravell, Toyota of Cedar Park Owner Julie Herrera, WCCAC Board Member Andrew Fox, WCCAC Board President Heather Jefts, Commissioner Russ Boles at the groundbreaking for the new Advocacy Center building and renovation.

THE WILLIAMSON COUNTY CHILDREN’S ADVOCACY CENTER (WCCAC) IS A 501(C)3 NON-PROFIT ORGANIZATION THAT PROVIDES HOPE, HEALING, AND JUSTICE FOR CHILDREN AND FAMILIES IMPACTED BY ABUSE, VIOLENCE, AND EXPLOITATION IN OUR COMMUNITY.

EMBRACE IT, BECAUSE IT IS INEVITABLE. 2022 • ISSUE 2 | WILCO BUSINESS REVIEW

by Taylor Rogers

NEW PARADIGMS

Cash is King Don’t take our word for it—ask your pharmacist for the cash price the next time you’re picking up a prescription. If you are providing medical insurance for your employees, or they are receiving benefits from a government program like Medicaid or Medicare, they likely have some prescription drug benefits included. These benefits are designed to ensure members have access to affordable prescription drugs, but what most people don’t know is that paying cash for prescription drugs could cost less than using health insurance benefits at the pharmacy. Many Americans have been conditioned to believe that the Pharmacy Benefit Manager (PBM) connected to their major medical plan is providing the lowest price, but experts say that is not always true.

Drug not covered?

Many health plans provide tiered pharmacy benefits that offer copays for prescription drugs. These benefits are great when the cost of the drug exceeds the cost of the copay, but what about when the drug cost less than the copay? Take, for example, Lipitor (Atorvastatin)—a typical employer group or health plan could expect to pay about $155 for this common cholesterol medication, which doesn’t include the $25 copay the consumer might expect when checking out at the pharmacy. Meanwhile, the cash price for Atorvastatin is about $9. Asking for the cash price would result in about $15 in savings each time the script is filled.

What about my deductible?

Copay vs. Cash

HDHP & HSA

In a qualified high-deductible health plan (HDHP) with a health savings account (HSA), copays are not available for prescription drugs until the member has met the deductible, so this savings will be felt immediately.

Perhaps you have been told that a particular prescription is not covered by your health insurance or that the member would need prior authorization before filling a prescription at the pharmacy. Paying cash takes the insurance carrier’s rules out of the equation. So, before you go through the process and hassle of trying to get you insurance carrier to cover your prescriptions—ask for the cash price. It could be the difference between the member paying $20 and walking away with medication and several trips to the pharmacy, doctors’ office, and calls the insurance company, only to find out they still won’t cover the necessary medication.

It is important to note that paying cash for drugs prevents the charges from accruing to the deductible on most health plans; however, it is worth considering whether paying many multiples of the drug price is a reasonable price to pay for deductible accumulation?

After all, we do not file auto insurance claims when we fill our cars with gas or change the oil. Perhaps removing insurance from basic healthcare transactions is a key to unlocking affordable healthcare.

TAYLOR ROGERS, CO-FOUNDER/PRINCIPAL CAIRN ADVISORS, MITIGATE PARTNERS MEMBER TAYLOR@CADVISORS.US • (512) 422-9269 • WWW.MITIGATEPARTNERS.COM As co-founder and Principal of Cairn Advisors, Taylor Rogers began his career with an insurance carrier, before moving to a large national consulting firm, where he discovered his greatest expertise was in designing self-funded benefits strategies. Taylor and the team at Cairn Advisors combine the strict purchasing fundamentals used by leading manufacturers with an unmatched employee experience to improve the cost and quality of healthcare and employee benefits for their clients. He partnered with the executive team of an independent mortgage bank to specifically craft a program for lenders and financial institutions, and Cairn Advisors was selected as the exclusive employee benefits partner for The Mortgage Collaborative – a group of more than 250 independent mortgage lenders across the United States.

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2022 • ISSUE 2 | WILCO BUSINESS REVIEW

CENTRAL TEXAS BUSINESS

Charlotte Kovalchuk charlotte@wilcobr.com photos courtesy Facebook/AnchorBar

Winging It in a New CTX Franchise Texas Entrepreneur Bringing Home a National Favorite

You may not be able to visit the restaurant that created the hamburger or the taco, but you can go to the place that invented the chicken wing. The dish that put the Anchor Bar restaurant on the food map is an unlikely origin story but is also what inspired T.J. Mahoney to open a location of his own in Round Rock last year.

PUT A WING ON IT Late at night on March 4, 1964, one of the bartenders at Anchor Bar in Buffalo, New York asked his mom to prepare something tasty for a group of hungry friends. With scant ingredients available, she whipped up a snack using chicken wings. The dish was an instant hit and today, 14 Anchor Bars across North America serve the famous football season staple. With demand for wings steadily outpacing supply since 2017, Anchor Bar’s jumbo1-only recipes are a steady favorite, and the franchise takes pride in having won the 2003 James Beard award—the food industry’s equivalent to an Oscar. Mahoney’s wife Erin, a New York native and creative director at Scribe Media, grew up near the original home of the chicken wing in Buffalo and was used to great wings but that changed when she moved to Texas. “There are no good wings around here,” she would lament. It wasn’t until Mahoney tasted Anchor Bar’s bigger, crispier wings for himself that he realized the difference. “It took me two bites before I said, ‘Yes, these really are better.’ ”

it, however challenges existed throughout. Obtaining supplies and equipment from vendors and staffing challenges with contractors performing work on the build-out also played a big part. “There are items we ordered in September we still haven’t received. And, some additional lighting was just installed this week because the contractor was waiting for necessary parts.” None the less, Mahoney has enjoyed bringing a restaurant to the area that provides good service, 50 TVs, six audio zones, plus more than 40 beers, ales, and ciders on tap and on ice; and a dog-friendly patio known as Anchor Bark. The menu also has selections for red meat lovers, including roast beef on weck. Weck is short for kümmelweck, a kaiser-like roll with pretzel salt and a smattering of caraway seeds baked onto the top. It’s a roll created to perfectly hold a heaping pile of rare, thin-sliced roast beef with a splash of au jus.

BECOMING A WING MAN Switching from the corporate world to the restaurant industry has been both rewarding and challenging for Mahoney. He is grateful, though, for the project management, organizational, and financial experience gained through corporate jobs, which he has combined with a great management team that provides the restaurant know-how for Anchor Bar. The restaurant didn’t have enough staff when it first opened, but Anchor Bar has since assembled a team of more than 70 employees.

At the time, he was working for Vrbo, and previously Dell, but after visiting Anchor Bar, an aspiration to do something on his own began simmering in his mind. A wings order from a different restaurant that was both late and messed up prompted him to ask Erin, What if we opened a real wings place around here? “It took her ten seconds to say, ‘Let’s do it.’ ” Mahoney opened Anchor Bar in the La Frontera shopping center in October, naming his corporation YTRAB (Yes, These Really Are Better) Wings, Inc. The location choice was an easy one; a short distance from his home in Pflugerville and easy access to I-35 and 45. Opening during COVID was definitely a challenge. The staffing challenges in the service industry itself are a piece of 1 Ten pounds of jumbo wings is 24-32 pieces.

26 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

T.J. Mahoney and his wife Erin

Anchor Bar Staff at the Official Grand Opening

Inflation and the labor shortage created several road bumps since opening Anchor Bar, although Mahoney says wing prices were already high—wholesale prices having tripled since 2020—so customers were accustomed to it. An increase in takeout food during lockdowns shifted consumption from sit-down restaurants to delivery and comfort food eateries. Fast-casual servings of chicken wings were up 7 percent in 2020 versus 2019 despite an 11 percent decline in trips to commercial restaurants over the same time period. This, among other supply chain challenges, led to a huge increase in chicken wing consumption and shortages of product. Fortunately, while outpaced by egg-laying farms by a factor of ten to one, Texas is still a major source of the country’s chicken meat. Approximately 625 million broiler chickens are raised in Texas, primarily grown on family farms by farmers who have contracts with processing companies, so the supply in Texas restaurants is local and fresh.

ANCHORED IN COMMUNITY The biggest challenge, T.J. says, has been franchise misconceptions. “It stings to not be considered a mom and pop because we’re a franchise. We live here; this is home for us,” he says, adding that both his sons have worked at Anchor Bar and the restaurant is always trying to be involved in the community, whether it’s by partnering with local breweries or delivering food to first responders during the last freeze

in February. Amplify Austin’s motto, We Live Here, We Give Here, rings true for Anchor Bar. “It really is the case for us,” T.J. says.

CHICK IT OUT... Before they became a national snack, chicken wings were originally thrown out or used to make stock. In the food industry, chicken wings are considered an off-premise friendly food. The National Purchase Diary (NPD) reports Americans consumed 1 billion wings in 2019 and, while most restaurant sales declined during the pandemic, brands specializing in chicken performed relatively well2. The average American eats more than 17,000 wings in a lifetime. Approximately 4 out of 5 wings eaten are in restaurants. Americans are more likely to prefer eating bone-in, traditional wings (53%) than “boneless wings.” Americans collectively eat 1.4 billion chicken wings during Superbowl weekend.

2 Technomic, Chicago

2022 • ISSUE 2 | WILCO BUSINESS REVIEW

FRANCHISE GROWTH

Charlotte Kovalchuk charlotte@wilcobr.com photo courtesy Drew Hirt

JUNK FRANCHISES

Solving Problems by Adding Profit to Them

or Drew Hirt, owner of The Junkluggers of Round Rock & Georgetown, the term “junk” is a bit of a misnomer. ‘Junk’ often initially conjures images of Sanford and Son picking up items for the junkyard. But today, according to the Bureau of Labor Statistics, the junk removal industry, which includes junk moving, hauling, and packaging, is a $10 billion industry a year. The 90s and new millennium saw exponential growth of the junk removal industry when junk haulers started popping up as franchise owners. Some of this growth can be attributed to the rise of the Internet, where we find people looking for others’ so called trash.

THE PAIN POINTS At the root, junk hauling is about resolving customers’ issues, such as when a loved one passes away, an empty-nest couple moves to a smaller home, or a real estate investor has to deal with unfortunate hoarder issues,” Hirt says. Much of what Junkluggers haul is donated or recycled, and they also focus on partnering with business customers—real estate agents and investors, residential and

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commercial property managers, senior living communities, and professional organizers. All their efforts are aimed at creating a positive win-win solution for their customers, the environment, and local communities, Hirt says. Hirt admits at first he was skeptical when his franchise consultant suggested junk removal as a business opportunity. At the time, he was working as a commercial lender in the banking industry while searching for the right business to make the leap from finance to entrepreneurship—his original goal when he entered the banking field 15 years ago. “Banking is a stable industry. I could have stayed there and earned a decent living, but I wanted to be more hands-on and involved,” he says. “Instead of helping other people build their business, I wanted to build my own.” He also realized the timing was right. “I have three kids and if I waited much longer, they would be involved in multiple activities, I would be stretched too thin and kicking the can down the road. I knew if I didn’t do it now, I was never going to do it. After discussions with my wife, we decided to go for it.”

The more he thought about opening a Junkluggers location, the more it made sense. The number of businesses in the waste collection services industry stands at 11,8061 and the average industry growth from 2015–2020 was at 1.4 percent. Experts predict this industry will continue to steadily grow for the next decade as lifestyles trend toward minimizing and upcycling.

PERFECT TIMING Hirt is a perfect example of adapting service concepts to current needs. Many businesses may not be able to shift revenue streams while staying true to brand, but changes in the market since 2020 have created gaps in consumer and business needs that are easily filled by companies already midstream in a supply chain and fully staffed. Much like Hirt, who took advantage of near universal lifestyle changes due to pandemic conditions; i.e., people redesigning their home spaces because they spend more time there, and recognizing consumers’ need to reduce and recycle things they previously would not have noticed. Hirt also truly appreciates the company’s eco-friendly focus, emphasizing The Junkluggers doesn’t just pick up junk, dump it in the landfill, and move on to the next job, like many other junk haulers. Instead, they are dedicated to donating unwanted items to nonprofit organizations and/or recycling them when possible.

“Everyone with a home or a business has stuff to get rid of. With technology advancing as it is, it seems people always have items to be replaced.”

THE BUSINESS OF TRASH The Junkluggers is based in Connecticut and has approximately 77 locations across the U.S., all of which are focused on keeping reusable waste out of landfills to serve the environment and local communities better. Hirt opened The Junkluggers of Round Rock & Georgetown in September of 2021, a slightly bumpy beginning fraught with pandemic conditions, supply chain issues, and a lack of delivery drivers for their commercial trucks. However, with a solid team of luggers now assembled and a new bright green commercial truck, he is enthusiastic about the future of The Junkluggers. His luggers serve Round Rock,

The average American generates about 4 -1/2 pounds of waste every day, and that’s not even considering the things in your home that you’ve held onto for a while but no longer have a use for. (Moving.com) Junk removal is expected be an $80.7 billion market in the U.S. alone by 2023. Worldwide, it is a $1.3 trillion market. The U.S. waste industry is valued at $75 billion each year, with junk removal accounting to $10 billion each year. Revenue has developed an annualized 1.4 percent to $51.6 billion over the five years to 2020, including a 6 percent decline in 2020. A typical single-family home will reimburse around $210 for junk removal while a business typically spend about $500. east Austin,

Manor, Elgin, Taylor, Georgetown, Temple, and Burnet—all of which he says are rapidly growing areas. Going forward, Drew plans to host electronic waste drop-off events while partnering with local community organizations. To reduce waste, he partners with local recycling and donation centers such as the Round Rock Area Serving Center, Georgetown’s The Caring Place, Pflugerville’s Circle of Hope, Habitat for Humanity, Salvation Army, and Goodwill outlets.

“I think The Junkluggers’ mission is especially important today as people focus on helping the environment whenever and in whatever manner possible.” “We want to leave the planet in a better condition for future generations, and I truly believe The Junkluggers can help people in their communities accomplish that goal. Additionally, by partnering with local charitable organizations, I feel that we are truly benefiting the communities we serve.”

1 IBIS World

At 11 million tons, electronic waste makes up just 2 percent of the total waste in America, but represents 70 percent of the toxic waste volume. 2022 • ISSUE 2 | WILCO BUSINESS REVIEW

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2022 • ISSUE 2 | WILCO BUSINESS REVIEW

FINANCE

by William Boughton

An Entrepreneur’s Life BUSINESS OWNERS ARE UNIQUE Business owners are a different breed. If you are in this group, you have decided to exchange the security of a steady paycheck for the belief that you can achieve more by taking the risk of building something of your own. You have been willing to make great sacrifices to succeed and demonstrate that the American Dream can be a reality. While incredibly rewarding, entrepreneurship comes with a unique set of challenges. Your financial life is likely much more complex, requiring a multifaceted approach to developing a plan for long-term success. PLANNING FOR THE NEXT GENERATION Retirement, for example, can look quite different. Not only must you consider personal long-term retirement savings and investments but also the future of your business. You may need a plan to unlock its internal value to provide for your needs in retirement. You may wish to sell it, or transition leadership to family or a key employee. A transition plan for when you are no longer at the helm is a must. Your estate plan may also be more intricate than that of a typical family. Passing an operating business and its assets directly to your heirs may not be a viable plan. Also, business owners’ estates tend to face more complicated tax situations. SAFEGUARDING YOUR SUCCESS The time may come when reinvesting liquidity back into your business does not generate the value it did in years past. If so, alternative modes of investment such as diversified liquid investment portfolios may be prudent. Protecting yourself and your family from business-related liability is critical. Should you unexpectedly pass or be unable to continue leading the business, your operation and employees could be in sudden jeopardy. Assuring your employees’ welfare is protected if you were to stop leading the business may also be a consideration. A combination of insurance and continuity planning may be key to protecting your company and those who matter most.

WILLIAM BOUGHTON

BUILDING YOUR TEAM These are but a few considerations business-owners face. The good news is there are ample resources and experts to help. It is never too early to start planning and putting together a strong team of advisors to help with the process is a great first step. Fiduciary Wealth Management Advisor – adds tremendous value and serves as your financial quarterback. They can help identify areas of opportunity and connect you with planning resources. Certified Public Accountant (CPA) – an invaluable asset who not only ensures your taxes are done correctly but also helps you plan future tax considerations. Estate Planning Attorney – a critical partner who can help you craft an estate plan to protect assets and assure heirs are cared for in alignment with your wishes. Insurance Agent – an experienced and reputable agent can help identify cost-effective strategies for protecting your family, business, and assets from unforeseen risks. The rewards of building your company are well worth the risks you have taken and the sacrifices you have made along the way. Protecting your investment and your loved ones with prudent planning is a key step to achieving peace of mind and fully enjoy the fruits of your labor. Securities provided by VeraBank Wealth Management are not deposits of VeraBank, are not FDIC insured, have no financial institution guarantee, and may lose value William Boughton Trust and Wealth Advisor VeraBank, N.A. 512-869-8181 Ext. 7306 wboughton@verabank.com www.verabank.com

William joined VeraBank in 2019, bringing with him over 15 years of experience as a trusted advisor to domestic and international clients and investment entities. He received his Master of Science in Finance and Economics from West Texas A&M University. He also earned his Graduate Certificate in Wealth Management and Estate Planning from the Cannon Financial Institute. William also has attained the Certified Trust & Financial Advisor designation.

32 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

COMMUNITY SAFETY

Fire Spurs Code Changes for Georgetown Animal Care Facilities

“Many people, myself included, believe animals are extensions of our family. As a direct result of this unspeakable loss for 59 of our Georgetown families, we took a hard look at our processes and our building codes, and have taken several, critical steps to ensure we do better by our beloved pets. I wish I could turn back time and prevent this tragedy from happening in the first place. I get some solace, and I hope the families will as well, from knowing we have put measures in place to protect our four-legged family members in the future.”

~Georgetown Fire Chief John Sullivan

fter a devastating fire killed 75 pets at the Ponderosa Pet Resort in Georgetown, Georgetown City Council unanimously approved amendments to the city’s fire codes. On February 23, council voted to require all animal care facilities to install fire alarms, and newly constructed facilities will have additional fire-protection requirements. The amendments make Georgetown’s fire codes among the strongest in the nation when it comes to protecting pets and animals. Most state, national, and international fire codes do not require fire prevention features for animal care facilities. “The code amendments council approved make Georgetown one of the safest places to board your pet in the entire country,” Mayor Josh Schroeder said. “These amendments represent a long overdue change in how the fire code protects these important members of our families. The features animal-care facilities are now required to install will help prevent tragedies like the one we experienced here in September from happening again, and we’re available to work with anyone who wants to bring our model to their community as well.” Under Georgetown’s fire code amendments: All existing facilities used for the temporary or permanent housing or care of animals are required to install a supervised fire alarm system before the end of September 2024. Of the 23 animal care facilities in the Georgetown Fire Department service area, 17 did not have fire alarms. Electronically supervised carbon-monoxide detection systems also are required in newly constructed animal-care facilities; equestrian facilities are exempt.

by Charlotte Kovalchuk All newly constructed animal-care facilities are required to have advanced fire protection features that include a sprinkler system. Acceptable alternatives: A facility with 50 or fewer animals that has a supervised fire alarm system and Class A finish on the walls (similar to the drywall used in residential garages), will not be required to install a sprinkler system. A facility with 51 to 100 animals that has a supervised fire alarm system, fire resistant materials surrounding the kennel area, and Class A finish on the walls will not be required to install a sprinkler system. A facility with more than 100 animals that provides all animals immediate, unobstructed access outside, has a supervised fire alarm system, and provides constant supervision will not be required to install a sprinkler system. A facility with 24-hour, on-site supervision is required to install a fire alarm system and will not be required to install a sprinkler system.

Action Report Fire investigators hypothesized six potential causes of the Ponderosa fire, all of which have to do with the facility’s electrical equipment. In addition to fire code amendments, the fire department has taken other steps to help mitigate similar incidents in the future. These include adding animal housing or care facilities to its annual, priority inspections list, as well as auditing and inspecting the existing animal-care facilities in its service area.

2022 • ISSUE 2 | WILCO BUSINESS REVIEW

by Tyler Wolf

REAL ESTATE

POST-COVID MIGRATION TO

Texas T

exas Governor Greg Abbott famously used the phrase Don’t California My Texas in his re-election campaign in 2018, and many Texans still echo that sentiment in 2022. Still, with the COVID pandemic seemingly nearing its end, the substantial migration to Texas from California is ongoing. The simultaneous national migration to Texas is much larger, of course, and will have a lasting impact on the Real Estate market in Central Texas. According to national census data, Texas’s migration levels are significantly higher than the national average, with the majority attribution being an upgrade in living situation. While California constitutes a large percentage of the increase in Texas population, including Santa Clara and Los Angeles counties, rounding out the top five are heavily urban areas in Arizona, Illinois, and Washington. Furthermore, in the past 20 years, 60 percent of the migration into Texas has come from other states, but the other 40 percent has been a result of international relocation. Not surprisingly, a majority of these migrations were to the aptly named ‘Texas Triangle’—Austin/San Antonio, Dallas/Fort Worth, and Houston. However, data suggest more and more recent migrating home buyers are seeking homes in the suburbs. Post-pandemic demand shows a steady increase in property purchases in exurban communities, which tend to be even further removed from city centers and more rural. Many of the fastest growing exurban communities are in Williamson County and, with growing technological

investment in these areas, the housing market in Williamson and adjoining rural counties will likely also see an influx of out-of-state home buyers. This move away from city centers is already apparent, indicated by tech-heavy companies such as Samsung in Taylor and Firefly Aerospace in Cedar Park. Firefly Aerospace, originally founded in California, even partnered with city officials to offer $10,000 in cash to employees who purchase homes in Cedar Park.

ALWAYS TEXAN The fastest growing regions in the ‘Texas Triangle’ are due to Texans moving in-state, which is understandable when you consider 82 percent of people born in Texas still live here. Williamson County, thanks to its blend of suburban and exurban communities, has seen a population increase of 44 percent since 2010 and in-state migration, coupled with the continuing influx of migration from California and other states and countries, suggests these areas will maintain that rapid growth. With post-COVID housing trends moving more and more toward suburban and exurban areas, the Williamson County Real Estate market looks to be facing an even larger stream of new home buyers not just from migration, but from within the Lone Star State itself.

While Californians represent a large percentage of those migrating to Texas during the COVID pandemic, data Suggests that out-of-state, in-state, and international migration is trending towards suburban and exurban communities.

TYLER WOLF Tyler Wolf is the owner/founder of Wolf Real Estate. He is a third-generation Georgetown Real Estate businessman and Texas A&M graduate (Class of 2008). He is a devoted husband to Genny and proud parent of Addie and Olivia Wolf.

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2022 • ISSUE 2 | WILCO BUSINESS REVIEW

ECONOMIC DEVELOPMENT

INDUSTRIAL PROJECTS

in Northern Williamson County by Charlotte Kovalchuk

T W O I N D U S T R I A L D E V E LO P M E N T S AT T H E CO R N E R O F I - 35 A N D S H 130 A R E S E T TO T R A N S F O R M N O R T H G E O R G E TO W N I N TO A H U B F O R M A N U FA C T U R E R S A N D D I S T R I B U TO R S .

Woodgate Corporate Park and NorthPark 35 The Woodgate Corporate Park will be a 12-acre highend flex/industrial site. Its two buildings, totaling more than 116,000 sq/ft, will be located across from the Georgetown Municipal Airport. Just northeast of Woodgate, Georgetown’s first master-planned industrial business park, NorthPark 35, is being developed by Titan Development. The park site is 146 acres and will include 802,000 square feet of building space. “Georgetown is poised to become an important new business center along the I-35 corridor,” says Joe Iannacone, senior vice president of Titan Development. “With direct access to major markets like Austin, Dallas, and San Antonio, we’ve already had exceptional interest from end-users in the e-commerce, logistics, pharmaceuticals, light manufacturing, and agricultural industries. This new park is destined to become a hub of innovation for Georgetown and beyond.”

GREATER IMPACT

The project will also expand Aviation Drive to intersect with I-35 and SH 130, unlocking highway access for site users along with a direct route to the industrial park for consumers. “In my opinion, the best part about the project is the extension of Aviation Drive,” NorthPark35 leasing agent Omar Nasser says. Currently, auto parts store Texas Speed and Performance is NorthPark35’s only tenant, but Omar anticipates food and

36 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

other distributors and manufacturers, providing supplies for Tesla and Samsung, will come on board. “The tenants we are targeting will generate hundreds of jobs in both manufacturing and distribution/warehousing,” Joe says. While NorthPark35 is intended for users in need of 25,000 to 250,000 square feet of space, Woodgate Corporate Park is designed for companies seeking a smaller footprint. “I’ve been leasing in Georgetown for over 10 years,” says Ken Mongold, who owns Woodgate and Headwater Companies, formerly known as Georgetown Commercial Properties and San Gabriel Project Management. “It’s always been hard to find supply for the 10,000 to 20,000-square-foot user. [Woodgate] is a response to that.”

There is an abundance of real estate product for the small users and the big users. The intermediate is a market being passed over. ~Ken Mongold

WORK IN PROGRESS

The development broke ground in October and two tenants have already signed on, a residential building supplier and a food manufacturer. Ken hopes to see more manufacturers come on board. “We feel like this building is suited well for manufacturing,” he says.

ECONOMIC DEVELOPMENT

146 acres • 802,000 sq ft Completion in 2023

space they needed. “I thought that was pretty sad, that their headquarters are in Georgetown, but some of their growth went south. The hope is that it’s in reverse, that they’re coming from the south and growing up to the north,” he says.

“Thanks to Woodgate Corporate Park, there is no need, anymore, for people from Georgetown to leave in order to

grow.” Most of all, he wants to make sure Georgetown companies stay in Georgetown, a goal motivated by watching several local manufacturers move parts of their operations to Hutto

or Round Rock because Georgetown didn’t have the

Woodgate Corporate Park is a 12-acre high-end flex/industrial development that will feature two buildings totaling about 116,480 square feet. $20 million capital project set for completion at the end of Q2 2022.

...and north of Williamson County Meta—parent company of Facebook—announced an $800 million investment to construct their 17th national data center in Temple. The nearly 900,000 square foot facility will be built in Temple. Peak construction will provide more than 1,200 jobs and, once complete, the data center will support approximately 100 operational jobs. Meta explained Temple stood out as an outstanding location due to its access to infrastructure and renewable energy, strong workforce talent pool, and support from community partners.

FROM META Meta says the company is committed to being a positive contributor to its data center communities and looks forward to partnering with the community to invest in its long-term vitality. Much like Samsung committed for Taylor, the Meta data center in Fort Worth has provided more than $2.6 million in grants to schools, small businesses, and local organizations since opening its doors in 2017. The Meta release reported, “Our data centers are among the most advanced, water- and energy-efficient data center facilities in the world. Designing, building, and maintaining facilities that are positive contributors to our communities matters to us. We approach sustainability from the ground up—from design and construction to energy sources, water stewardship, and responsibly managing the end of life of our

equipment. “ The company claims the Temple Data Center will be at least 80 percent more water-efficient than the average data center as their cooling system relies on outside air—not water—for cooling for at least 50 percent of the year. The Temple Data Center will be supported by 100 percent local and renewable energy. The company has already invested in more than 700 MW of new wind and solar energy in the state. Meta also has a global goal to restore more water than it consumes by 2030. In Texas, they are investing in the Richland Chambers Creek Wildlife Management Area. This water restoration project will restore over 64 million gallons of water per year to Texas watersheds. 2022 • ISSUE 2 | WILCO BUSINESS REVIEW

ECONOMIC DEVELOPMENT

by Charlotte Kovalchuk

CelLink Breaks New Ground in Growing Industrial Park Adding EV and Battery Technology to Titan Industrial Park Williamson County and Georgetown officials broke ground February 23 on a CelLink Corporation manufacturing facility that will be located between I-35 and State Highway 130 in Georgetown. CelLink manufactures flexible circuits used in electric vehicles and battery storage units. This build will complete a nearly 300,000-square-foot building in June in the Gateway35 Commerce Center, an industrial park backed by Titan Development. “We are excited to see Georgetown become part of the growing electric vehicle and energy storage industries,” Mayor Josh Schroeder says. “Companies like CelLink and industrial park developers like Titan will strengthen the economic foundation of our community, bringing sales tax revenue, creative talent, and good jobs to our city.” The facility is expected to create up to 2,000 high-tech jobs in the next decade, making CelLink one of the largest private sector employers in the city. The project’s investment is esti-

mated to be at $130 million in five years. “Williamson County is becoming known as a hub for technology and innovation due to our highly skilled and educated workforce,” County Judge Bill Gravell said. “Having another world-class project land in our county reinforces our desire to bring good paying, exceptional employment opportunities to our residents.” CelLink CEO Kevin Coakley emphasized the manufacturing facility’s location in central Williamson County. “Georgetown provides access to a skilled and educated workforce in the region fostered by advanced Texas State Technical College and Austin Community College curricula in high-tech manufacturing. It has all the amenities of a vibrant city, making Georgetown a perfect fit for our expansion,” he says. Titan Development Senior Vice President Joe Iannacone added, “We are thrilled to have CelLink coming to our industrial park at Georgetown to manufacture sophisticated, high-demand electronics in the flexible circuits sector. This is a perfect example of the kind of fast-growing industries Georgetown has been seeking for economic development.”

CelLink will receive an $8.02 million incentive package, including: •

A Williamson County property tax abatement for 10 years; 75 percent for business personal property and 50 percent for real property, valued at $2.11 million

•

An infrastructure reimbursement grant of $2.5 million paid from the Georgetown Economic Development Corporation (GEDCO) Type A sales tax fund

•

A Georgetown property tax abatement of the same terms, valued at $2.18 million

•

A five-year $525,000 job creation grant also paid by GEDCO

38 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

•

The retirement of renewable energy credits to offset the company’s electric usage for five years to certify the facility as using 100 percent renewable energy, valued at up to $1 million

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A DV E RTO R IA L by Charlotte Kovalchuk

INSURANCE Your Employees Will Love

aving the right insurance as a business owner is crucial. Randy Still with Texas Trusted Advisors notes, even with a smart retirement strategy, three things can threaten that goal: health, taxes, and market risks. Health: While we all hope for a healthy retirement, our later years could involve around-the-

Despite these obstacles, there are ways to protect savings and retirement funds.

The solution is understanding how putting dollars in secure places can secure wealth and well-being and provide you with a guaranteed income for life.

clock caregiving. When circumstances call for 24/7 care, that’s exactly what it means. All too often, kids do not live close to their parents, which creates a new set of problems and expenses. No one wishes to be a burden to a spouse or children. Taxes are another big concern. With the national debt at $30 trillion, only higher taxes and Financial Martial Law will foot the bill. Financial Martial Law gives the government the right to seize and freeze checking and savings accounts, certificates of deposit, money market accounts,

One way to secure assets is by rolling over your individual retirement accounts (IRA) or 401k into protected investments such as indexed annuities. You can also purchase an Indexed Universal Life insurance policy, which includes a tax-free retirement, compound interest, and living benefits like home health and special care. If good health qualifies you, this policy will provide tax-free growth, tax-free benefits, and tax-free retirement. Your property tax can also be deferred when you reach 65 years or older, and it will be paid back when you sell your home or have passed away.

mutual funds, 401(k)s, and 403(b)s for the betterment of the United States. Texas Trusted Advisors shows you how to limit your tax exposure and protect yourself from Financial Martial Law, and eventually gain up to 30 percent savings on your retirement accounts. Market Risks: The stock market has made some rich while leaving others broke. The high debt and rising interest rates are good indicators of a falling stock market. If you are 60-85 years of age, ask yourself if you can afford to lose 20, 30, or 40 percent of your retirement account.

40 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

IUL POLICY Setting up an IUL policy has been helpful for many clients, thanks to the policy’s health benefits, tax-free retirement, and tax-free death benefits. This policy has various moving parts, including age, health, and the amount of premium you would pay into your policy. Here are some ways an IUL policy can work for you: If you happen to have a chronic or critical illness along the way, you could take a portion of your death benefit. If you have a terminal illness, you can take up to 90 percent of your benefit. With these benefits, you could get the desired treatment anywhere in the world with a tax-free death benefit.

A DVERTORIA L

The IUL product will ease the pain of taking money from an IRA or 401k. If you need $50,000 for health benefits not covered by your health insurance, it is important to take out enough to pay the taxes as well. But with an IUL policy, you can take out money without owing any taxes. In an IUL policy, the death benefit with Option B allows your cash value to be included in your death benefit. For example, with a $250,000 death benefit and after 10 years of funding, your death benefit could be $350,000 as your cash value may have increased to $100,000. This is added to your death benefit. There are countless ways to use the cash gained from an IUL policy, including having a tax-free savings account, buying a new car, remodeling a home, building a pool, etc. If you pay the loan back, you become the big winner.

FOR YOUR BUSINESS When it comes to business partnerships, an IUL policy could have an increasing death benefit to cover the value of your partnership as well as provide a tax-free retirement plan for your partner(s). It would also help if one partner has an accident or chronic/ critical illness that would keep him or her at home with special needs. Key Person insurance is another beneficial policy that would help if your key person passes, and it takes time to find the right replacement. As well, if you have a partnership agreement and your partner dies, his or her spouse may be your new partner, which may or may not be good for your business. Having the right plan in place would surely make a difference.

As self-employed individuals for 40+ years, Texas Trusted Advisors has experience helping clients—including doctors, lawyers, and high-end clients—and can be reached at 512-261-7660 for a free consultation. Scan the code to learn more.

2022 • ISSUE 2 | WILCO BUSINESS REVIEW

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2022 • ISSUE 2 | WILCO BUSINESS REVIEW

by Charlotte Kovalchuk For consideration, please email information to info@wilcobr.com

BUSINESS BRIEFS GEORGETOWN NorthPark35 NorthPark35 is Georgetown’s first master-planned industrial business park that is being developed by Titan Development on 146 acres with 802,000 square feet of building space. The project, which is set for completion in 2023, will also expand Aviation Drive to intersect with I-35 and SH 130, unlocking highway access for site users along with a direct route to the industrial park for consumers. Currently, auto parts store Texas Speed and Performance is NorthPark35’s only tenant, but other distributors and manufacturers are expected to come on board such as food distributors and Tesla

PEOPLE ON THE

and Samsung suppliers. Woodgate Corporate Park Woodgate Corporate Park, a 12-acre high-end flex/ industrial project, will feature two buildings totaling about 116,480 square feet across from the Georgetown Municipal Airport. The $20 million capital project is set for completion at the end of Q2 2022 and is designed for companies seeking a smaller footprint. The development broke ground in October and a residential building supplier and a food manufacturer have signed on as tenants. Georgetown Logistics Park A 50-acre industrial development site known as Georgetown Logistics Park is being constructed in the

southwest quadrant of the I-35 and SH 130 intersection along Aviation Drive, just east of the Georgetown Executive Regional Airport. Stonelake Capital Partners will build 625,000 square feet of warehouse/distribution space across three buildings, which are expected to finish in 2023. ROUND ROCK Sabey Data Centers Sabey Data Centers, one of the largest data center operators and developers in the world, will build its next global data center in Round Rock in less than a year. Sabey Data Centers is headquartered in Seattle, Washington and currently operates two million square feet of data

MOVE

center space in Washington State and New York State. The project will demolish the old Sears Teleserv building on Louis Henna Boulevard and construct two buildings, with an investment of a minimum of $185 million in property improvements and $5 million in new equipment and business property. Emerson Emerson plans to expand its headquarters on Louis Henna Boulevard in Round Rock with $9 million in new investment and at least 50 new jobs. Emerson is a global engineering, technology, and software company that specializes in helping manufacturers around the world optimize operations. The expansion is expected to

finish by the end of 2023. Depot Townhomes The Depot Townhomes will bring 80 townhomes to downtown Round Rock, starting with 23 units in early 2023. The developer, InTown Homes, will construct the homes south of Bagdad Avenue from Mays Street to Burnet Street.

Veronica Briseño

DeWayne Street

Veronica Briseño is the City of Austin’s new assistant city manager, overseeing a $258.3 million budget and more than 1,070 employees. She began her career with the city more than 20 years ago in various roles, most recently as the chief economic recovery officer.

DeWayne Street is Leander ISD’s first chief of diversity, equity, and inclusion. He brings a wealth of experience to the role, including a career in education as a high school teacher in Wisconsin, diversity consultant, and diversity, equity, and inclusion chief for Round Rock ISD.

Dennis Covington

Sylnovia Holt-Rabb

Dennis Covington has joined Round Rock ISD’s leadership team as chief financial officer, having previously served as CFO for Kansas City, Kansas Public Schools as well as in multiple leadership positions for Charlotte Mecklenburg Schools in the finance department and the United States Air Force as a director of programs and budget.

Sylnovia Holt-Rabb has taken the helm as Austin’s new director of economic development. She has worked for the City of Austin for 21 years in various roles and now directs the day-to-day operations of the Cultural Arts Division, Small Business Program and Support Service.

Shane Glaiser

Robert Luckritz

Shane Glaiser is Round Rock’s new fire chief after being promoted from assistant fire chief. He began his career in 1995 and was promoted to assistant chief in 2017, during which he oversaw the construction of several new stations and served as the project lead for the department for the construction of the Public Safety Training Center that opened in 2018.

Robert Luckritz is Austin’s new EMS chief and has worked in EMS for more than 25 years, serving different roles including paramedic, instructor, field supervisor, EMS chief, and hospital leader.

Lisa Hill Lisa Hill was named Faith in Action Georgetown’s executive director as the nonprofit organization heads into its 21st year of providing transportation for Georgetown seniors. Lisa was previously executive director of the Eden Clinic and LeadingAge Oklahoma, which provides training and advocacy for long-term care providers across the state.

44 WILCO BUSINESS REVIEW | 2022 • ISSUE 2

Ryan Smith Ryan Smith has been named Round Rock ISD’s chief of teaching and learning. He has 19 years of education experience, including serving as the executive director of teaching and learning, director of professional development, assistant principal at Walsh and Deerpark middle schools, and special education teacher at Deerpark.

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COMMUNITY SAFETY

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ECONOMIC DEVELOPMENT