requirements for tef grant
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Texas Economic Development State Funding Update
AGENDA
Organization / State Role / ED Purpose (5)
State Programs Update / Due Diligence Practices (15)
Applicant, Project Assessment, Project Performance
State Incentives / Local Participation (11)
Referrals / Funding Leverage / Tax Incentives
State Economic Development Emphasis (5)
Industry Clusters / Tech Innovation / New Industries
Texas Economic Development State Funding Update
AGENDA
Organization / State Role / ED Purpose (5)
State Programs Update / Due Diligence Practices
Applicant, Project Assessment, Project Performance
State Incentives / Local Participation
Referrals / Funding Leverage / Tax Incentives
State Economic Development Emphasis
Industry Clusters / Tech Innovation / New Industries
RI CK P E RRY GOV E RN O R
P . O . B O X 1 2 4 2 8 | A U S T I N , T X 7 8 7 1 1 | 5 1 2 - 9 3 6 - 0 1 0 0 | D I A L 7 - 1 - 1 F O R R E L A Y S E R V I C E S W W W . G O V E R N O R . S T A T E . T X . U S
Division Overview
The Office of the Governor, Economic Development & Tourism consists of four programs. These programs
include Texas Business Development, Texas Tourism, the Office of Aerospace and Aviation, and the
Economic Development Bank.
Texas Business Development is charged with domestic and international business recruitment and
corporate expansion efforts for the state by marketing Texas as a premiere business location utilizing the
“Texas Wide Open for Business” campaign.
Domestic Expansion and Recruitment serves as the primary point of contact for companies looking to
expand existing operations in Texas or relocate a business from out of state. This section has achieved
great success, working on nationally recognized projects such as Samsung’s Semiconductor Plant which
will bring 900 jobs and a $4-5 billion capitol investment to Austin.
International Business and Recruitment continues to assist Texas companies seeking to expand into
foreign markets and encourage foreign investment in Texas. Texas remains the nation’s largest exporting
state with 2006 exports valued at $150.8 billion. Texas was also recognized as an international business
leader and named the 2005-2007 “U.S. State of the Future” by Foreign Direct Investment magazine.
Business Research provides support by providing economic and demographic data, analyses and
information on industries and communities. The extensive databases and research tools provide accurate
and timely information on doing business in Texas – strengthening the State’s ability to recruit and attract
business.
Texas Tourism promotes Texas both domestically and internationally as a premier tourist destination to
generate tourism revenues and jobs for Texas communities. Texas Tourism consists of Advertising, Public
Relations and Travel Research.
Advertising oversees the award-winning tourism ad campaigns, including national cable television
commercials, domestic and international print ads in consumer and trade publication, radio and
newspaper campaigns and interactive media such as the internet, including www.TravelTex.com.
Public Relations works with the travel trade industry and media throughout the United States and top
international markets including Mexico, Canada, the United Kingdom, Germany and Japan.
Travel Research provides and analyzes information about the domestic and international travel trends.
Travel research also provides tourism outreach services to assist Texas communities develop tourism
economic development. For a detailed look at the Texas Tourism Marketing Plan, please link to
www.travel.state.tx.us
The Office of Aerospace and Aviation focuses on maintaining Texas’ leadership position by
developing business strategies to promote the retention, development and expansion of aerospace and
aviation industry facilities in Texas. In addition, the program also provides technical support and expertise
to state and local spaceport authorities and promotes the development of spaceports in Texas.
The Economic Development Bank provides flexible funding and oversight of several finance and tax
incentive programs. The incentive programs target three key audiences which include Texas businesses,
Texas communities and Texas lending institutions. The Economic Development Bank programs include
Finance programs, Enterprise programs and Small Business Assistance.
Trusteed Programs
Texas Enterprise Fund The Texas Enterprise Fund, a trusteed program within the Bank and the largest “deal closing” fund of its
kind in the nation, continues to attract businesses and jobs to Texas. During the last legislative session,
the fund was reauthorized for $180 million. Since its inception in September 2003, the fund has awarded
more than $360 million with a total capital investment of $15.4 billion and has secured more than 49,000
jobs to date.
Emerging Technology Fund The $200 million Texas Emerging Technology Program (ETF) has awarded more than $89 million in grants
to date and is helping Texas create jobs and grow the economy over the long-term by:
• expediting the development and commercialization of new technologies
• attracting and creating jobs in technology fields that will form the backbone of our economy
The program will work through partnerships between the state, institutions of higher education and
private industry to focus greater attention on the research, development and commercialization of
emerging technology through the following three areas:
� Creating at least six Regional Centers of Innovation and Commercialization (RCIC) throughout
the state.
� Matching grant funds for technology research and development projects that accelerate
commercialization into production and have a demonstrated ability to receive federal grants.
� Attract highly renowned research talent from other universities and institutions in other states.
GOVERNORGOVERNOR
Executive DirectorExecutive Director
Texas Business DevelopmentTexas Business Development Texas TourismTexas Tourism Texas Economic Dev. BankTexas Economic Dev. Bank Aerospace & AviationAerospace & Aviation
Business ResearchBusiness Research
Domestic Expansion & RecruitmentDomestic Expansion & Recruitment
Regional OperationsRegional Operations
International Business & Recruitment
International Business & Recruitment
Public RelationsPublic Relations
Travel ResearchTravel Research
AdvertisingAdvertising
Capital Access (CA)Capital Access (CA)
Defense Economic Readjustment Zone (DZ)
Defense Economic Readjustment Zone (DZ)
Texas Enterprise Zone (EZ)Texas Enterprise Zone (EZ)
Small Business Incubator FundSmall Business Incubator Fund
Industrial Revenue Bonds (IRB)Industrial Revenue Bonds (IRB)
Linked Deposit (LD)Linked Deposit (LD)
Product Development FundProduct Development Fund
Renewal CommunityRenewal Community
Texas Leverage Fund (LF)Texas Leverage Fund (LF)
Texas Industrial DevelopmentTexas Industrial Development
Space Development & RetentionSpace Development & Retention
Aviation Development & RetentionAviation Development & Retention
Aerospace & Aviation PlanningAerospace & Aviation Planning
State of Texas NAFTA OfficeState of Texas NAFTA Office
Emerging TechnologyEmerging Technology
MarketingMarketing
Office of the Governor
Economic Development & Tourism
Organization Chart
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West Texas/Upper Rio Grande Region Cynthia Tauss DelgadoNorman Hailey Employment Center300 E Main StEl Paso, TX 79901Office: 915.313.3024Cell: 915.491.8107Fax: 915.533.1041cynthia.delgado@governor.state.tx.us
East Texas Region Laurie O'Neal 405 Marshall StGilmer, TX 75644Cell: 903-780-9575Fax: 903-680-3656laurie.oneal@governor.state.tx.us
Central Texas RegionTad Curtis221 E. 11th St. (78701) 4th FL.P.O. Box 12428Austin, Texas 78711Office: 512.936.0047Fax: 512.936.0080tcurtis@governor.state.tx.us
Gulf Coast Region Larry McManus221 E. 11th St. (78701) 4th FL.P.O. Box 12428Austin, Texas 78711Office: 512.936.0069Fax: 512.936.0080lmcmanus@governor.state.tx.us
South Texas RegionAlejandra Bueno115 E Travis St, Suite 220San Antonio, TX 78205Office: 210.581.1055Cell: 210.867.5098Fax: 210.272.3283alejandra.bueno@governor.state.tx.us
Lower South Texas RegionLeticia Flores1902 North Loop 499Harlingen, TX 78550-3653Office: 956.364.4060Cell: 956.244.1143Fax: 956.364.5111leticia.flores@governor.state.tx.us
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North Texas Region Janie Havel616 Six Flags Dr, P.O. Box 5888Arlington, TX 76005Office: 817.695.9293Cell: 214.733.4274Fax: 817.640.6480janie.havel@governor.state.tx.us
Texas Economic Development State Funding Update
AGENDA
Organization / State Role / ED Purpose
State Programs Update / Due Diligence Practices (15)
Applicant, Project Assessment, Project Performance
State Incentives / Local Participation
Referrals / Funding Leverage / Tax Incentives
State Economic Development Emphasis
Industry Clusters / Tech Innovation / New Industries
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Texas Enterprise Fund
“The door is open for business in Texas, and the Texas Enterprise Fund allows us to put that sign up in neon.” – Gov. Rick Perry
At Gov. Rick Perry’s request, the 78th Texas Legislature established the Texas Enterprise Fund (TEF) in 2003 to provide financial resources to help strengthen the state’s economy. Funds for the TEF were reappropriated in 2005 and 2007, making more than $250 million available for the job creation fund in the 2008-2009 biennium.
The Texas Enterprise Fund, the largest “deal closing” fund of its kind in the nation, continues to attract businesses and jobs to Texas. The TEF recently attracted Comerica’s headquarters to Dallas, bringing 200 jobs; and prompted Rackspace Managed Hosting to expand in San Antonio, creating more than 4,000 jobs.
To date, the state has allocated more than $366 million from the Texas Enterprise Fund, bringing more than 51,600 new jobs and generating more than $13.6 billion in capital investments to the state.
Projects that are considered for TEF support must demonstrate a project’s worthiness, maximize the benefits to the State of Texas and realize a significant rate of return of the public dollars being used for the economic development of Texas. Capital investment, job creation, wages generated, financial strength of the applicant, applicant’s business history, analysis of the relevant business sector, federal and local government and private sector financial support of a project are all significant factors in approving the use of the Enterprise Fund.
The Governor’s Office works closely with local leaders to tailor incentive packages that best meet the needs of local communities and businesses. Recruiting new business and helping to expand existing business is a dynamic process.
If you have a project that can benefit from the Texas Enterprise Fund, an application must be submitted to the Office of the Governor, Economic Development & Tourism division, which provides information on how funds are to be utilized and how the proposed project meets the criteria of the program. The Texas Enterprise Fund application is available at www.governor.state.tx.us/divisions/ecodev/ed.bank/tefund.
www.TexasWideOpenForBusiness.com
For more information on Texas call 1-800-888-0511or visit www.TexasWideOpenForBusiness.com.
Office of the Governor • Economic Development & Tourism Division
P.O. Box 12428 • Austin, Texas • 78711-2428
June08
Office of the Governor Texas Enterprise Fund Projects - Disbursed, Announced & Committed
As of May 31, 2009
West Texas/Upper Rio Grande Region• ADP - El Paso, $3MM
• Dyncorp - $0.94MM committed, DNA*
• Hilmar Cheese - Dalhart, $7.5MM
• IBM - $2.5MM committed, DNA*
• LEARN & TIGRE - Network Infrastructure**
• Martifer Energia, S.A. – San Angelo, $945K
• Superior Essex - Brownwood, $0.25MM
• Trace Engines - Midland, $0.456MM
Central Texas Region• American Security Insurance - $ 0.75MM
committed, DNA*
• Cabela’s - Buda, $0.6MM***
• EPV Solar – $1M committed, DNA*
• HelioVolt – Austin, $1M
• Hewlett-Packard - Austin, $5MM****
• Home Depot - Austin, $8.5MM***
• Indymac Bank - $4M committed, DNA*
• LEARN & TIGRE - Network Infrastructure**
• Samsung - Austin, $10.8MM
• Scott & White Memorial – Temple, $7.5MM
• Sematech - Austin, $40MM
• Viasys - $0.5MM committed, DNA*
North Texas Region• Allied Production Solutions – Gainesville,$800K
• Associated Hygienic Products – Waco, $520K
• Authentix – Addision, $1MM
• Cabela’s – Ft. Worth, $0.6MM***
• Comerica – Dallas, $3.5MM
• Countrywide – Richardson, $20MM
• Fidelity – Town of Westlake, $8.5MM
• FlightSafety International – Irving, $720K
• Gulfstream – Dallas, $750K
• Johns Manville – $0.5MM committed, DNA*
• JTEKT Automotive – Ennis, $0.333MM
• LEARN & TIGRE – Network Infrastructure**
• LM Glasfiber – $5.2MM committed, DNA*
• Maxim – Irving, $5MM ****
• Pratt Industries – $3.3MM committed, DNA*
• Raytheon – McKinney, $1MM
• Ruiz Foods – Denison, $1.5MM
• Sanderson Farms – McLennan County, $0.5MM
• Rockwell-Collins, Inc. – Richardson, $1.678MM
• Schott Solar – Arlington, $3M Committed, DNA*
• T-Mobile – Frisco, $2.15MM
• Texas Instruments/UTD – Richardson, $50MM
• Torchmark – McKinney, $2MM
• Tyson Foods – Sherman, $7MM
• U.S. Bowling Congress – Arlington, $693K
• Vought – Dallas, $35MM
Lower South Texas Region• Boeing - $45MM committed, DNA*
• CITGO – Corpus Christi, $5MM***
• LEARN & TIGRE - Network Infrastructure**
• Santana Textiles – Edinburg, $1.65M
East Texas Region• Alloy Polymers - Houston County, $0.2MM
• Campbell’s Soup - $1MM committed, DNA*
• Hewitt - $4MM committed, DNA*
• LEARN & TIGRE - Network Infrastructure**
• Lee Container - Nacogdoches, $0.3MM
• Motiva - Port Arthur, $2MM
• Newly Weds Foods – Mt. Pleasant, $0.45MM
• Union Tank Car - $2MM committed, DNA*
Gulf Coast Region • Baylor (Research) - Houston, $2MM
• CITGO - Houston, $5MM***
• Energy Center - Sugarland, $3.6MM
• General Dynamics - $1.3MM committed, DNA*
• Hewlett-Packard - Houston, $5MM****
• Huntsman - The Woodlands, $2.75MM
• Ineos USA - League City, $0.75MM
• LEARN & TIGRE - Network Infrastructure**
• Lockheed Martin - Houston, $7.5MM
• Merit Medical - $0.75MM committed, DNA*
• NASA - $5.1MM committed, DNA*
• TIGM - Houston/College Station, $50MM***
• UTHSC/MDA - Houston, $25MM
South Texas Region• Albany Engineered Composites – Boerne, $1MM
• Caterpillar Inc. – Seguin, $10MM
• Dunlop Aerospace – $0.43MM committed, DNA*
• Home Depot – New Braunfels, $8.5MM***
• LEARN & TIGRE – Network Infrastructure**
• KLN Steel – San Antonio, $900K
• Maxim – San Antonio, $1.5MM
• Medtronic Inc. – San Antonio, $6MM
• Rackspace – San Antonio, $22MM
• Washington Mutual – San Antonio, $15MM
Notes: * DNA – Did Not Accept
** $9.781MM Allocated Statewide
*** TEF Shared by Both Locations
**** Refunded Proceeds
OFFICE OF THE GOVERNOR
TEXAS ENTERPRISE FUND
PROJECT ANALYSIS
Page 1 of 1
TEXAS ENTERPRISE FUND
“11 STEP PROCESS”
STEP
#0 TEF Application and/or Project Disclosure Correspondence
#1 One Page Project Description
#2 Quick Assessment of Major TEF Project Considerations
#3 Applicant Management Assessment and Current News Search
#4 Business Climate Investigation and Industry Status
#5 Economic Impact Assessment based on Independent Reports
#6 New Business Opportunity Assessment
#7 Financial Statement Analysis (Bloomberg Reports)
#8 Applicant Credit Assessment (D&B Reports)
#9 Local and State Level Economic Incentives Summary
#10 Project Cost Benefit Analysis & Return On Investment
#11 TEF Penalty & Project Clawback Requirements
TEXAS ENTERPRISE FUND REVIEW PROCESS
& CONSIDERATION OF TEF PROJECTS
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Texas Product/Business Fund
The Texas Product/Business Fund provides financing to existing companies that manufacture products or do business within the state. Financing is done in the form of direct asset-based loans with a variable interest rate tied to LIBOR. Loans can be amortized up to the life of the asset.
Texas companies or out-of-state/international companies doing business in the state are eligible to apply. Applicants can submit a free, brief pre-assessment in order to check eligibility.
Attributes of the Texas Product/Business Fund:
��Asset-Based Loans
��Competitive Loan-To-Value (LTV)
��Positive EBITDA not required
��Secure Loans with Property Plant & Equipment (PP&E)
��Competitive variable interest rates
��Communities or individuals can assist as Guarantors
The Office of the Governor, Texas Economic Development Bank administers the Texas Product/Business Fund at the direction of the Governor’s appointed nine-member board. Preference for funding is given to the states’ defined industry clusters including, but not limited to: nanotechnology, biotechnology, biomedicine, renewable energy, agriculture and aerospace. Job creation and retention within Texas will be considered as part of funding priorities.
www.TexasWideOpenForBusiness.com
Loans for product commercialization and business
Company Lending CycleGraph represents Texas Loan Incentives within a typical lending cycle
Texas Product/Business Fund
Banking Relationship
Assets
Asset-Based LendingRevenue-Based Lending
- Angel Financing- Venture Capital
No Assets
OFFICE OF THE GOVERNOR
TEXAS ECONOMIC DEVELOPMENT BANK
Date:
Company Rep: Phone:
State of Origin: Email:
1) Provide a brief summary of the project that will require funding? (include project location)
2) What is the requested loan amount?
3) How will the requested loan proceeds be utilized?
4)
5) What is the company's sales for the last fiscal month, most recent fiscal quarter, and most recent fiscal year end.
6) What is the company's annual free cash flow?
7) What unencumbered collateral would the company be pledging to cover the requested loan amount?
8) Is the company registered with the Texas Secretary of State? YES NO
Provide the registered name of the company
9) Provide the company's Taxpayer ID number & business status from Texas Comptroller of Public Accounts.
(PROVIDE ANSWERS TO ALL QUESTIONS, PLEASE DO NOT REFERENCE DOCUMENTS)
Operating? Capital? Equity/Investment?
Do you have a detailed business plan including the company structure and purpose, management summary,
product/service, marketing strategy, and financial summary?
If the company would like a range to be considered, please provide that amounts (low to high).
PRODUCT DEVELOPMENT FUND
SMALL BUSINESS FUND
BUSINESS INFORMATION FOR LOAN
CONSIDERATION* Note:
Information must be provided at one time or
materials will not be reviewed
Company Name:
(*) CONFIDENTIAL INFORMATION
(*) COMPETITION SENSITIVE
OFFICE OF THE GOVERNOR
TEXAS ECONOMIC DEVELOPMENT BANK
Date:
Company Rep: Phone:
State of Origin: Email:
(PROVIDE ANSWERS TO ALL QUESTIONS, PLEASE DO NOT REFERENCE DOCUMENTS)
PRODUCT DEVELOPMENT FUND
SMALL BUSINESS FUND
BUSINESS INFORMATION FOR LOAN
CONSIDERATION* Note:
Information must be provided at one time or
materials will not be reviewed
Company Name:
10)
11)
12)
13)
14) Submit the following documents along with this evaluation form:
a)
b)
c) Three Year Pro Forma
Provide a summary of the company's product regulatory approval status? (if applicable)
Provide a brief overview of the business history. (i.e: origination, major milestones, former names, etc.)
Provide a brief overview of the company's management.
Has the company had prior bankruptcies or lawsuits? If yes, please explain
Detailed Business Plan to include:
Company Structure/Purpose, Management Summary, Product/Service, Marketing Strategy & Financial Summary
Prior 3 years Financial Statements to include:
Income Statement, Balance Sheet, Cash Flows & Detailed Market/Product Revenues and Operating Expenditures
(*) CONFIDENTIAL INFORMATION
(*) COMPETITION SENSITIVE
OFFICE OF THE GOVERNOR
TEXAS ECONOMIC DEVELOPMENT BANK
PRODUCT DEVELOPMENT FUND / SMALL BUSINESS FUND
“10 STEP PROCESS” DUE DILIGENCE
PDF / SBF 10 Step Process
STEP DESCRIPTION / RESOURCE
0 PDSBI Application and related correspondence / documents
Financial Condition
Present Markets and Market Prospects
Integrity of Applicant’s Management
Product Feasibility
Attempts to obtain private financing
1 Project Description - Executive Summary (from application)
2 Quick project assessment
3 Management Review and Current News Search
4 Business Climate Investigation and Industry Status
5
Legal and Administrative Review
Comptroller of Public Accounts
Secretary of State
Lexus Nexus Legal Review
6 Financial Review
D&B
Opportunity Assessment Form
Financial Summary Form
Summary Form (CF/BS/IS)
7
Credit Review
Bloomberg
Moody’s, S&P, Fitch
8 Proposed Loan Terms Review
9
Proposed Loan Security Review
Type /Value of Security
Number of Security Instruments
Rights to Security / Collateral
10 Proposed Default Provisions
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This Loan Proposal sets forth proposed terms for a possible Bond Purchase Agreement to be entered into between the Public Entities and the State of Texas. Any transaction between the parties is subject to the execution of definitive agreement. This Proposal has no binding effect, and reflects no commitment by or obligation of the parties.
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Emerging Technology Fund
“In Texas, we understand that high-tech companies don't just happen overnight but are a product of forethought, sound vision and planning, and strategic investments by both the public and private sectors. Through our Emerging Technology Fund, we are bringing the best scientists and researchers to Texas, attracting high-tech jobs and helping start-up companies get off the ground faster.” – Gov. Rick Perry
The Emerging Technology Fund (ETF), created by the Texas Legislature in 2005 at the urging of Gov. Perry, provides Texas with an unparalleled advantage by expediting the development and commercialization of new technologies, and by recruiting the best research talent in the world. Matching and commercialization funds coupled with additional federal and outside investments mean new technology is emerging in Texas. The ETF was reauthorized by the 80th Texas Legislature, making more than $185 million available during the 2008-09 biennium.
The program works through partnerships between the state, institutions of higher education and private industry to focus greater attention on the research, development, and commercialization of emerging technology. There are seven Regional Centers of Innovation and Commercialization (RCIC) and one Texas Life Science Center to serve stakeholders throughout the state in:
• Top Talent Acquisition: For acquisition of “research superiority” for Texas higher
education institutions, e.g., attracting additional, established, “high profile”
researchers as faculty;
• Commercialization Awards: Provides selected, early-stage investments in new,
technology-based, private entrepreneurial entities that collaborate with public or
private institutions of higher education in Texas, and which, if successful, may provide
significant economic benefit to the state.
Key components of the ETFThe ETF brings new ideas and products to the marketplace today. This innovation and the commercialization will have a long-term profound impact on Texas.
Priority is given to emerging technology projects that will enhance Texas’ global competitiveness – that are collaborative and leverage both critical expertise and financial resources. Not only will these ETF investments demonstrate economic benefits, they will also result in significant medical and or scientific breakthroughs which will improve people’s lives.
Recipients commit to work in a collaborative environment and support Texas economic development by growing their business in Texas and providing a return on the State of Texas’ investment.
www.TexasWideOpenForBusiness.com
(Continued)
AWARDS
To date, the ETF has awarded over $140 million to Texas companies and universities. Below are two examples of ETF award recipients.
NanoMedical Systems (NMS) was awarded $3,500,000 to assist with the development of the company’s Personalized Molecular Drug-delivery System (PMDS). The PMDS is a small capsule designed to be implanted just under the skin in a simple office procedure. The capsule will be able to hold enough medication for weeks or months of controlled release. NMS will commercialize the patented research of co-founder Dr. Mauro Ferrari. Dr. Ferrari was recruited through an ETF Research Superiority grant to the Alliance for NanoHealth at the University of Texas Health Science Center in Houston.
Texas AgriLife Research, an agency of the Texas A&M University System, was awarded $4,025,000 by the ETF for research and development of the economical production of microalgae-derived fuels, such as biodiesel. Microalgae-derived biofuels could produce 15,000 gallons of biodiesel per acre per year compared to the 50 gallons per acre per year typical of soybeans. The funds provided by the ETF will allow Texas AgriLife Research to acquire the personnel and physical resources necessary to research and develop the technologies necessary to tap into the incredible potential of microalgae-derived biofuels and offer those benefits to people worldwide.
For additional information, please see a full listing of awards at www.EmergingTechFund.com.
Jan09
For more information on Texas call 1-800-888-0511 or visit www.TexasWideOpenForBusiness.com.
Office of the Governor • Economic Development & Tourism Division
P.O. Box 12428 • Austin, Texas • 78711-2428
www.EmergingTechFund.com
1 - Trans-Pecos/El Paso RCIC Ebetuel “Beto” Pallares beto@tpeprcic.org 915.613.2476
2 - West Texas Coalition for Innovation & Commercialization Steve Anderson s.anderson@nwtsbdc.org 806.745.3973 3 - North Texas RCIC Mike Lockerd mikel@ntxrcic.org 972.883.4920
4 - Gulf Coast RCIC Bob Prochnow bob.prochnow@gulfcoastrcic.org 832.746.9262
5 - Central Texas RCIC Susan Davenport sdavenport@austinchamber.org 512.322.5657
6 - South Texas RCIC Jim Poage jbp@satai.us 210.458.2523
7 - Rio Grande RCIC Fernando Gonzalez fgonzalez@riograndercic.com 956.973.8600
Texas Life Science CIC (Statewide) Andrew Nat anat@tlsc.tamu.edu 281.857.9028
1
2 3
45
6
7
ETF Regional Centers of Innovation and Commercialization (RCIC)
OFFICE OF THE GOVERNOR
EMERGING TECHNOLOGY FUND
PROJECT ANALYSIS
“9 STEP” PROCESS
ETF 9 Step Process.doc
STEP
#0 ETF Application (SUBCHAPTER “D”)
Project Legislative Intent Assessment (Bill Requirements)
#1 One Page Project Description (Project Subject Matter)
#2 Project Assessment by Advisory Committee (comments)
#3 Industry Status – Technology, Marketplace & Competition
Economic Impact – NAICS & Value Chain (per Application)
#4 Project Management Assessment and Current News Search
#5 Collaborative Higher Ed Relationships, IP Rights & Licenses
#6 Ownership Interests & Capitalization Table
#7 Financial Sources & Uses of Funds
#8 Debt & Equity Rights & Agreement Terms
#9 Project Subject Matter & Key Milestone Listing
TEXAS EMERGING TECHNOLOGY FUND
TRUSTEE CONSIDERATION OF RCIC
COMMERCIALIZATION PROJECTS
Texas Economic Development State Funding Update
AGENDA
Organization / State Role / ED Purpose
State Programs Update / Due Diligence Practices
Applicant, Project Assessment, Project Performance
State Incentives / Local Participation (11)
Referrals / Funding Leverage / Tax Incentives
State Economic Development Emphasis
Industry Clusters / Tech Innovation / New Industries
1
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TEXAS ENTERPRISE ZONE PROGRAM Enterprise Projects Approved – State Biennium, FY2008-2009 (9/1/07 – 5/31/09)
Central Texas ($297.8M)
Austin – Otis Spunkmeyer, Inc., $17.8M
Austin – Spansion LLC, $280M
East Texas ($445.1M)
Cass County – International Paper Company, $150M
Center – Tyson Farms, Inc., $5M
Corrigan – Georgia-Pacific Wood Products, $46.8M
Harrison County – General Cable Industries, $5.4M
Huntsville – Weatherford US, LP, $15.3M
Jacksonville – eTelecare Global Solutions, $1.9M
Limestone County – NRG Texas Power, $150.8M
Mount Pleasant – Sweet Shop Candies, $4.4M
Polk County – Georgia-Pacific Wood Products, $65.5M
Gulf Coast ($1B)
Bryan – Kent Moore Cabinets, $6M
Bryan – Sanderson Farms, $5M
College Station – Lynntech, Inc., $12M
Houston – Deloitte LLP, $61.4M
Liberty County – Georgia-Pacific Wood Products, $31M
Matagorda County – NRG South Texas, $255M
Orange – INVISTA S.a r.l., $150M
Pearland – Neela, Inc., $6M
Port Arthur – The Medical Center of SE Texas, $5M
Port Arthur – Total Petrochemicals USA, Inc., $268M
Rosenberg – Frito-Lay, Inc., $7.4M
Thompsons – NRG Texas Power, $201.2M
Waller County – RTG Furniture of Texas, L.P., $50M
South Texas ($2B)
Bexar County – Tesoro Companies, Inc., $251M
Boerne – Albany Engineered Composites, $34.6M
Calhoun County – Formosa Plastics Corporation, $600.7M
Cibolo – Kalmar RT Center, $10.9M
Comal County – TXI Operations, $260M
Corpus Christi – Berry Contracting, $5M
Corpus Christi – Flint Hills Resources, LP, $250M
Corpus Christi – Stripes LLC, $5M
San Antonio – AGE Refining, $12.6M
San Antonio – Fred Loya Insurance Agency, $10.8M
San Antonio – Tindall Corporation, $25M
San Antonio – Valero Services, Inc., $6.5M
Seguin – Caterpillar, Inc., $176.8M
Victoria – StarTek USA, Inc., $10.6M
Windcrest – Rackspace US, Inc., $436.4M
West
Upper Rio Grande Central
Gulf Coast
East
North
South
Valley
Texas Enterprise Projects
North Texas ($1B)
Dallas – Niagara Bottling LLP, $56.4M
Dallas – Ryan, Inc., $5.5M
Dallas – Solo Cup, $3.9M
Fort Worth – DCFS USA, $17.5M
Fort Worth – MillerCoors LLC, $104.7M
Gainesville – Allied Production Solutions, LP, $16.5M
Garland – Atlas Copco Drilling Solutions, $8.9M
Garland – MAPEI Corporation, $21.2M
Garland – The Sherwin-Williams Company, $7.7M
Irving – Frito-Lay, Inc., $5.7M
Little Elm – Retractable Technologies, $7.9M
Meridian – Double B Foods, $4.2M
North Richland Hills – Tyson Prepared Foods, $9.6M
Olney – Air Tractor, $5M
Plano – Connecticut General Life Ins. Co., $38M
Richardson – Health Care Service, $265M
Sunnyvale – Millard Refrigerated Services, Inc., $49M
Tarrant County – Bell Helicopter Textron, Inc., $266.7M
Vernon – Tyson Refrigerated Processed Meats, $5M
Waco – Associated Hygienic Products, $37.1M
Waco – Caterpillar Logistics Services, $69.7M
Waco – L-3 Communications Integrated Systems, $15M
Waco – The Sherwin-Williams Company, $5M
Waxahachie – Owens Corning Insulating Sys., $23.2M
Waxahachie – Walgreen Co. , $38M
Valley ($95.9M)
Brownsville – T-Mobile USA, Inc., $17.5M
Edinburg – Doctors Hospital, $59.4M
Harlingen – United HealthCare Svs., $6.3M
McAllen – Fred Loya Insurance Agency, $5.2M
McAllen – Infinity Insurance, $7.5M
West Texas ($36.6M)
Brownwood – 3M Company, $7.6M
Lubbock – Shearer’s Foods Lubbock, $6.9M
Lubbock – WesTx Packaging Company, $6.1M
Odessa – Odessa Regional Hospital, $5M
Potter County – Tyson Fresh Meats, Inc., $11M
Upper Rio Grande ($21M)
El Paso – ADP, Inc., $21M
Number of Projects Approved
Number of Designations Used
Projected Capital Investment
Projected New Jobs
Projected Retained Jobs
75
98
$5,138,292,537
12,697
33,382
Texas Enterprise Projects Approved - FY 2008-2009 Biennium to Date
Region Community Project Name Product or Service
Capital
Investment
Announced
New Jobs
Retained
Jobs
Designation
Type
Approval
Date
Texas Enterprise Projects Approved - FY 2008-2009 Biennium to Date
Region Community Project Name Product or Service
Capital
Investment
Announced
New Jobs
Retained
Jobs
Designation
Type
Approval
Date
Texas Economic Development State Funding Update
AGENDA
Organization / State Role / ED Purpose
State Programs Update / Due Diligence Practices
Applicant, Project Assessment, Project Performance
State Incentives / Local Participation
Referrals / Funding Leverage / Tax Incentives
State Economic Development Emphasis (5)
Industry Clusters / Tech Innovation / New Industries
Texas Economic Development State Funding Update
INDUSTRY CLUSTERS
� Manufacturing & Advanced Technology
� Aerospace, Aviation & Defense
� Biotechnology & Life Sciences
� Information & Computer Technology
� Petroleum Refining & Chemical Products
� Energy
Website: http://www.texaswideopenforbusiness.com/key-industries/
Texas Economic Development State Funding Update
TECHNOLOGY INNOVATION
� Nanotechnology – Texas Report Online� Composites and Materials Science
� Cancer Research – CPRIT Overview Online
� Information Security – ETF Grants & Federal Initiatives
� Environmental Emissions – Production & Operating Controls
� Carbon Sequestration – Waste Management
Website: http://www.texaswideopenforbusiness.com/key-industries/
Texas Economic Development State Funding Update
NEW INDUSTRY DEVELOPMENT
Automotive Manufacturing & Semiconductor Technology
Commercial Aviation
Biotechnology – Texas Report Online
Computer & Communication Exports
Clean Coal Projects
Renewable Energy: Wind, Solar, Biomass, Hydropower, Waste
Website: http://www.texaswideopenforbusiness.com/key-industries/
Texas Economic Development State Funding Update
SUMMARY
State Economic Development is Integral with Local Activity
Establish Clear Guidelines and Practices for ED Programs
State Funded ED Programs include …
Texas Enterprise Fund Texas Product Business Funds Texas Emerging Technology Fund
Identify Business & Community Needs vs. Available Programs
Define & Emphasize Key Industries & Technology Innovation
ContactsOffice of the Governor
Economic Development & Tourism
Texas Wide Open for Businesshttp://www.texaswideopenforbusiness.com
(512) 936-0100
Partner Resources / Doing Business in Texas:
http://www.texaswideopenforbusiness.com/publications/marketing-materials.html
Key Sectors / Industry Clusters:
http://www.texaswideopenforbusiness.com/key-industries/
Texas Advantage / Texas Brags:
http://www.texaswideopenforbusiness.com/publications/marketing-materials.html
Financial Resources / Texas Product Business Funds:
http://www.texaswideopenforbusiness.com/financial-resources/loan-assistance.html
P . O . B O X 1 2 4 2 8 | A U S T I N , T X 7 8 7 1 1 | 5 1 2 - 9 3 6 - 0 1 0 0 | W W W . G O V E R N O R . S T A T E . T X . U S
Texas Economic Development Bank
AUSTIN OFFICE Name Title Phone E-Mail Main Office Line EDT Division 512-936-0100 www.governor.state.tx.us Michael Chrobak CFO & Director, 512-936-0528 mchrobak@governor.state.tx.us Texas Economic Development Bank Public Finance Theresia Stolte-Goetz Team Leader 512-936-0189 tgoetz@governor.state.tx.us Joseph Edgar Financial Analyst 512-936-0291 joseph.edgar@governor.state.tx.us Bridget Holland Program Specialist 512-936-0266 bholland@governor.state.tx.us Donna Weinberger-Rourke Program Specialist 512-936-6443 donna.weinberger@governor.state.tx.us New Business Development Joe Morin Team Leader 512-936-0226 jmorin@governor.state.tx.us Brenda Clear Program Specialist 512-936-0274 bclear@governor.state.tx.us Physical Address Mailing Address 221 East 11th Street, 4th Floor P.O. Box 12428 Austin, TX 78701 Austin, TX 78711
Thank You!
TEDC
Carlton Schwab
Amy Swank
Crystal Chism
Everyone In Attendance!
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