Pecos Economic Development Corporation

Building Upon Pecos’ Comparative AdvantagesApril 2010

Rediscover Pecos

Board of DirectorsDanny Rodriguez - PresidentLeo Hung - Vice PresidentBarry Naude - Secretary/Treasurer

Directors Venetta SealsHugh BoxWally MoonJoseph Torres

Bill Oglesby- Executive DirectorEsperanza Garcia – Executive Assistant

Executive SummaryPecos is focused on 4 comparative

advantages that build upon Pecos’ strengths.Pecos will focus on building upon its

logistical/transportation advantages.Pecos will focus on attracting the renewable

energy industry (solar/wind/biofuels).Pecos will focus on supporting its TAMU

centers of influence via Texas AgriLife and Pecos Research & Testing Center (PRTC).

Pecos will focus on creating a Small Business Technology Center to assist existing businesses and offer the community a number of technology services.

Pecos is emerging as a logistics center anchored by the 500-acre Montane Logistics rail-served industrial park and the emerging industrial corridor west of Pecos.

Pecos will partner with the Pecos Valley Southern Railway shortline to facilitate their growth and expansion.

Pecos is emerging as a prime site for the solar power generation industry and algae-based, biofuels research projects.

Pecos is realizing significant investments by affiliates of the Texas A&M University System in renewable energy and federal government programs.

Pecos’ location at the intersection of IH-20 and US-285, coupled with a Union Pacific main rail line, builds upon our base of existing transportation infrastructure.

Reeves County Commissioners Court has approved the creation of a Rural Rail Transportation District (RRTD) that will contribute to developing the transportation infrastructure required to facilitate the development of the 500-acre Montane Logistics Industrial Park and the expansion of Pecos Valley Southern Railway.

The creation of a Rural Rail Transportation District (RRTD) will facilitate the development of transportation infrastructure to support emerging industrial corridors throughout the City and County.

The creation of a new tax increment financing (TIF) district will entice Developers to invest along our gateways and serve to enhance the aesthetics of IH20.

The emerging Comprehensive Plan will facilitate the prioritization of our limited financial resources and outline clear plans for the future of the city.

The emerging Historic District Redevelopment Plan and Charrette being coordinated by the UTSA Institute for Rural Development and the Department of Architecture & Planning, should enhance the coordination and uses of HOT tax in this strategic corridor of the City.

Logistical/Transportation Advantages

Pecos offers some comparative advantages due to its transportation infrastructure—IH-20, US-285, Union Pacific mainline.

TXDOT and Union Pacific are collaborating and investing almost $500,000 on improving the rail crossing at IH-20 and County Road (CR) 408 to begin in June 2010.

PEDC contracted with Parkhill Smith Cooper to create preliminary design and cost estimate for proposed diamond interchange at IH-20 and CR 408.

Reeves County is finalizing contract with Raba Kistner Infrastructure to create a Rural Rail Transportation District (RRTD) and to provide counsel on its planning and development.

PEDC considering recommending the creation of a Transportation Reinvestment Zone (TRZ) to serve as one of the funding mechanisms for the RRTD operations.

Other funding sources for the RRTD will be grants, rail user fees, and loans.

IH-20/CR 408 Proposed Interchange

Attracting Renewable Energy Industry~BiofuelsThe PEDC is collaborating closely with the

Texas A&M University and its affiliates and partners, to attract new research, investments and jobs to Reeves County.

Reeves County is the site of ongoing algae-based biofuels research and continues to be considered for federal projects.

State leaders are being encouraged to entice Texas corporations to invest into biofuels research in Texas, rather than outside the State (Colorado, California).

~Solar Power Generation

Reeves County is under consideration on a number of solar power generation projects.

PEDC collaborating with Public Utilities Commission (PUC), ERCOT and other State agencies, to position Reeves County to compete in attraction of this emerging industry.

Existing electric transmission lines will require some enhancements and the extension of the existing grid to move electricity to the urban markets.

Enhance TAMU Centers of Influence TAMU has significant presence in Reeves County in Texas

AgriLife campus west of the City and in the Texas Transportation Institute (TTI) research being conducted at the Pecos Research & Testing Center (PRTC).

TTI has teaming agreement with Applied Research Associates (ARA), a premier research and engineering consultant conducting transportation and US Department of Defense (DOD) research.

TTI also encouraged Tubular Rail, a Houston group developing commuter and High Speed Rail systems, to consider 2-mile test track at PRTC.

Tubular Rail systems are under consideration by US DOT, TXDOT and other transportation groups.

Tubular Rail technology, if proven, could lead to major testing facility at PRTC and be impetus for creating a new transportation industry in US.

PEDC is also collaborating with a New York company to conduct some radar research via at the PRTC a Federal earmark.

This research could generate some significant activities at the PRTC and would encourage additional research.

PEDC will be enhancing partnership with each of these entities to encourage greater coordination and collaborations with TAMU.

TAMU centers of influence lay the foundation for greater investments, research and high quality job creation.

~Pecos Research and Testing Center PRTC Collaborations continue with the Texas Transportation

Institute (TTI), an affiliate of TAMU, and Applied Research Associates (ARA), to grow high quality, technology jobs at the Pecos Research & Testing Center (PRTC).

A number of grants and other funding opportunities are being actively pursued to facilitate the attraction of scientific and engineering jobs to Pecos and the region.

Create Small Business Technology Center (SBTC) in Historic District Pecos was recipient of $98,257 Federal earmark from

Congressman Ciro Rodriguez in 2009. Earmark designated funding to increase the presence of the Sul

Ross SBDC and the acquisition of office equipment to significantly enhance the scope and quality of technology services available in Pecos.

UTSA Institute of Rural Development is also intimately involved in developing and assisting in the implementation of this small business initiative.

Sul Ross SBDC in process of recruiting full-time Rural Business Advisor (RBA) to be officed in Pecos to better serve small businesses throughout Reeves County.

PEDC is pursuing Federal and State grants to redevelop a property in the Historic District that would house the RBA, Main Street, a FedEx Office style copy/mail center, and possibly a small business incubator at this facility.

UTSA Department of Architecture & Planning in process of coordinating a Historic District charrette that will provide further impetus to this SBTC initiative.

Accomplishments Over 20 new homes have been completed, adding $3

million to the property tax base. Many existing residences have also made improvements to

their homes, adding over $1 million to the tax base. PEDC role in Offers to Purchase realizing greater returns on

sales and redevelopment of both residential and commercial properties.

Other housing development initiatives are under consideration to include single-family and multi-family housing.

Collaborations on the development of the Montane Logistics Industrial Park continue.

Reeves County has approved the creation of a Rural Rail Transportation District (RRTD) that will provide impetus to the Montane Logistics Industrial Park, Pecos Valley Southern Railway, and other rail and transportation initiatives throughout Reeves County.

Texas Agrilife biofuels research under consideration by DARPA (Defense Advanced Research Projects Agency), a Federal agency for DOD research.

Pecos under consideration on a number of major renewable energy projects that would attract hundreds of millions of dollars of new capital investment and higher-skilled, higher paying jobs.

UTSA Institute of Rural Development investing substantial resources into PEDC and is using City as example of successful rural development.

Sul Ross SBDC is serving significantly more clients from Reeves County, that will assist small business growth and development.

The PRTC is realizing significantly greater research activities, increasing its presence as a research center.

Pecos Economic Development Corporation

Sul Ross SBDC Client List

May 2010

# Company Business Type Contact E/S Proj Sales P, UC, Comp # BRE

1 West Texas Dream Homes Residential, commercial contractor Tony Briones E $1,000,000 Completed 1

2 Start up Commercial laundry Lupe Michaelis S $100,000 P

3 Start up Soda/ice cream shop Gene Pimm S $50,000 P

4 Keller Williams Realty Real estate office Linda Tobias E $100,000 P

5 Start up Gym workout center Gabriel Rodriguez S * P

6 Merle Norman Cosmetics Services Marcia McCormick S $100,000 UC 2

7 Pecos Marketing Promotional items Toni Tillis E $50,000 Completed

8 Pecos Café Coffee shop/restaurant NA S $75,000 P

9 Donut Shop Restaurant Flores E $50,000 Closed

10 Pecos Arts/Loft Art Gallery Sandra Renteria S $250,000 Completed 3

11 Community Ventures Group Community Development NA S $500,000 UC

12 Start up Hair Salon Lorena Estrello S * P

13 Texsand Logistics Farrell Arceneux E $15,000,000 UC 4

14 Gunther Salt Manufacturer Peter Gunther E $10,000,000 P

15 Start up Personal services Jessica Anaya S $50,000 Completed 5

16 SBTC Business development services Rob Tobias S $98,257 P

17 Crazy Lady Beads Crafts Kerry Santisteban S $100,000 Completed

18 Border Melons Agriculture Darin Borders E $1,000,000 P

19 Budget Inn Hotel restaurant Juliet Tien E $100,000 P

20 Juliet Tien Retail shop in Historic District Juliet Tien S $250,000 P

21 Start up Landscaping Santiago Garcia S $25,000 P

22 Crystal Reyes Daycare Crystal Reyes S $100,000 P

23 Eagles Daycare Daycare Tammy Ortega E $100,000 P

24 Start up Downtown redevelopment Olga Lopez S $100,000 P

25 Start up Restaurant Yolanda Hinojos S $100,000 P 6

26 Emma's Varieties Retail shop in Historic District Emma Gonzalez E $50,000 UC 7

27 Casas Construction Residential, commercial contractor Johnny Casas S $500,000 UC 8

28 Dale Finley Public storage facility Dale Finley S $250,000 P

29 Steve Valenzuela Sports Bar Steve Valenzuela S $1,200,000 UC 9

30 Jackson Shaw Development GSA Development Jason Nunley S $3,000,000 P

31 Barry Lewis Gas/convenience store Barry Lewis S $750,000 P 10

32 Custom Mufflers Auto services Jason Lopez E $200,000 P 11

33 Pecos Café Café/bar Jason Lopez S $100,000 P 12

34 Rita's Flowers Flower shop Mario Payen E $50,000 P

35 Party Things Retail shop in Historic District Elisa Lujan E $50,000 P

36 Artist Retail shop in Historic District Joe Swenson E $50,000 P

  Existing 14 39% $35,498,257 12 new clients

  Start up 22 61%

  36 100%

A number of small businesses have purchased and are redeveloping properties in the Historic District.

A number of small businesses are considering business locations in the Historic District, but will require assistance in the reparations of the roofs.

UTSA Institute of Rural Development and Department of Architecture & Planning should have finalized Historic District Redevelopment Plan and Charrette by years’ end.

Greater regional, state and national collaborations and partnerships with Federal, State and regional resources are in place and providing greater resources to Reeves County.

Sandra Renteria, Winking Owl Art Gallery

Weldon Brookshire, Classic Car Museum

Emma Gonzalez, Emma’s Varieties

AccomplishmentsPecos Economic Development Corporation May 2010

Projects Under Construction, Completed

Jobs

# Project Industry Cap Inv Ret/Created Status

1 Best Western, Swiss Chalet Tourism $5,000,000 15 Completed

2 Comfort Suites Tourism $5,000,000 10 UC

3 Sandra Renteria Retal/services $50,000 2 Completed

4 Holiday Inn Express Tourism $5,000,000 10 Completed

5 Hampton Inns Tourism $5,000,000 15 Completed

6 Oak Tree Hotel Tourism $1,000,000 2 Completed

7 Single-family housing Housing $3,000,000 5 Completed

8 Rural Health Clinic Healthcare $5,000,000 20 UC

9 Pecos Economy Inn Tourism $1,000,000 8 Completed

10 TTI/Applied Research Associates Research $1,000,000 2 Completed

11 TAMU Biofuels grant Renewable Energy $1,000,000 2 Completed

12 Pecos EDC Services $100,000 1 Completed

13 Rural Rail Transportation District Transportation $25,000 * Completed

14 TXDOT/UP Railway Improvements Transportation $500,000 * UC

15 Texsand Oil/gas $100,000 1 Completed

16 Emma Gonzalez Retail $50,000 2 UC

17 Weldon Brookshire Tourism * * UC

18 Wal-Mart Retail $1,000,000 25 Completed

19

20

Proposed Capital Investment   $33,825,000 120

Existing Tax Base $750,000,000

% Increase 5%

Taxing Entity Tax Rate Cap Inv

City $0.73460 $248,478

County $0.35325 $119,487

School District $1.37000 $463,403

Hospital District $0.38602 $130,571

Other $0.00000 $0

Total Tax Rate $2.84390 $961,939

Short Term ChallengesThe City’s visual appeal and appearance

along the key gateways and Main Street.The lack of shopping, dining options

producing significant retail leakage to neighboring communities.

The lack of multi-family housing options.The lack of workforce skills in the existing

and emerging workforce.The lack of a broad base of community

leadership.

Long Term Challenges

Enhance workforce programs and the skill set of the existing and emerging workforce.

Create regional destination venues to complement and build upon our existing and expanding tourism industry.

Consider the development of new and innovative financing mechanisms to facilitate the quality growth of the city and region.

Develop a business park focused on logistical services.

Identify, develop, nurture leadership development opportunities.

2008 – 2009 Midyear Budget Adjustments

2009 - 2010 Budget Amendments

As of May 1, 2010

2009 2010 2010 Chgs % of Total

Projected Revenue

ED sales tax $225,000 $180,000 $180,000 57%

PRTC lease $40,000 $40,000 $40,000 13%

SBA grant $0 $98,257 $98,257 31% Increase admin hours from SBA grant

Property sales $0 $0 $0 0%

Community Facilities grant $0 $0 $0 0%

Reeves County interlocal $0 $0 $0 0%

Rural Rail District/rail user fee $0 $0 $0 0%

Special projects $0 $0 $0 0%

Other sources of revenue $0 $0 $11,000 3% Sale of PEDC properties, interest, other

$265,000 $318,257 $329,257 103%

20%

Advertising

Local event sponsorships $1,000 $0 $500

Website, CGI video $0 $0 $0

Aerial maps $0 $0 $0

Promotional items $3,000 $1,500 $2,500 Mugs, coasters, other marketing, branding

$4,000 $1,500 $3,000 0%

Benefits

Medical benefits $9,000 $9,000 $9,688 Increased costs

TMRS retirement $7,000 $7,000 $7,000

Taxes-payroll $4,500 $6,250 $6,250

Payroll expenses $0 $0 $0

Sub-total $20,500 $22,250 $22,938 7%

Business Retention Expansion

SBTC rehab loan $15,000 $0 $0

Business Appreciation Mixer $0 $0 $0

$15,000 $0 $0 0%

Business Development

Special projects $500 $2,500 $2,500

SBA grant $0 $98,257 $98,257

Community facility $0 $0 $0

$500 $100,757 $100,757 32%

2008 – 2009 Midyear Budget Adjustments cont.

Business Attraction

Commercial incentives $7,000 $7,000 $7,000

WTNB loan for PHA prop $40,000 $32,000 $25,000 Refi via TLF

$47,000 $39,000 $32,000 13%

Car allowance $7,200 $7,200 $7,200

$7,200 $7,200 $7,200 2%

Dues and subscriptions

IEDC $350 $0 $350

ICSC $100 $100 $100

TEDC $350 $350 $350

Other (Lions, Rotary) $1,000 $500 $500

$1,800 $950 $1,300 0%

Office supplies

Office supplies $2,000 $2,500 $2,500

Office furnishings $5,000 $0 $0

Misc office $1,000 $0 $0

Tile work $5,000 $0 $0

$13,000 $2,500 $2,500 1%

Office rent $6,000 $6,000 $6,000

Office utilities $6,000 $6,000 $6,000

$12,000 $12,000 $12,000 4%

Postage $300 $500 $250 0%

Printing & publications $0 $0 $0 0%

Professional services

Accounting $4,500 $5,000 $5,000

Audit $3,500 $3,500 $3,500

Legal $12,500 $5,000 $7,500 Increased activity

Surveying $3,500 $0 $5,000 ROW dedications, other

Architect/engineering *** $0 $5,000 Structural assessments

Other prof svcs $0 $0 $0

$24,000 $13,500 $26,000 4%

Repairs & maintenance $2,000 $200 $1,000 0% Increased activity

Telephone $4,800 $4,800 $4,000 2%

Office * * *

Cellular * * *

Travel & training

IEDC (ED) $0 $0 $0

ICSC (Retail) $0 $0 $0

TEDC (ED) $6,000 $3,000 $3,000

Other (CDFA, special projects) $6,000 $5,000 $5,000

$12,000 $8,000 $8,000 3%

Board meeting expenses

Board meetings $1,300 $1,200 $1,000

Board training $0 $0 $3,763 IEDC conference

Board travel $0 $0 $3,656 IEDC conference

$1,300 $1,200 $8,419 0%

Wages

Executive Director $82,000 $82,000 $82,000

Admin Asst $15,000 $15,000 $15,000

Total Wages $97,000 $97,000 $97,000 31%

Total Expenses $262,400 $311,357 $326,364 100%

Surplus/deficit $2,600 $6,900 $2,893

2008 – 2009 Midyear Budget Adjustments cont.

SummaryPecos is emerging as a leader in attracting

new capital investment and job growth in the TransPecos region.

There are many opportunities for expansion and diversification of the economy.

Community must create a vision and prioritize these opportunities, as a broad base of funding sources will be needed for effective implementation and to assure quality.

Focus will be on 4 key industry sectors and on creating high quality, high paying jobs, creating community wealth, and on investing into the enhancement of our quality of life.

The PEDC is working to create a broad base of business and community leadership.