An Economic Development Plan that is the right direction for the Lake Houston Area 1 A Project of the Lake Houston Area Chamber of Commerce

LAKE HOUSTON AREA ECONOMIC DEVELOPMENT PARTNERSHIP

PRI RITY ONNNE

Humble • Kingwood • Atascocita • Fall Creek • Summerwood

“An Economic Development Program for the betterment of our communities!”

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The Case for a Lake Houston Area Economic

Development Program – Priority One

The Lake Houston area is located in Northeast Harris County and South

Montgomery County and composed primarily of the entire Humble

Independent School District boundaries and portions of New Caney ISD,

Spring ISD, and Aldine ISD. The area encompasses the entire City of

Humble, a portion of the City of Houston (Kingwood), and the

unincorporated area of Northeast Harris County.

While this area has grown significantly in population and in

consumer related services, primary job growth has not kept up

with the population growth in the area. We have a great story

to tell but we have not had an organized economic development

effort to market our region for primary jobs and capital

investment. Because of the complexity of our jurisdictions, the

lack of a unified political voice for the region and the need for

growth management, there is a strong need to develop a public/

private partnership to provide a leadership role in this region’s

economic development.

The Lake Houston Area Economic Development

Partnership (LHAEDP) is an organization that

can be the entity to unite area leaders, attract

quality development and job creation to our

region and help our existing businesses grow

and prosper. We have the opportunity to

market the region and control our destiny

through a new economic development effort

called Priority One.

Several factors play into the area’s potential economic benefits. The Lake

Houston Area is strategically located at the crossroads between major

transportation corridors, George Bush Intercontinental Airport, and the

Houston Ship Channel. This access to multimodal transportation

represents one of the primary economic development assets and

opportunities in the area.

The region grew at a compound rate

of 3.5% per year from 138,871 in 2000

to 219,849 in 2010. This compares

favorably to the State of Texas rate of

1.7% and the U.S. rate of 0.9% over

the same period.

Approximately 70% of our households

have an income of more than $50,000

per year compared to the State of

Texas at 51%.

Almost 37% of Households earn over

$100,000 per year compared to the

State of Texas at 21%.

Our age profile reflects the area’s

attractiveness to families with 32% of

our population is in the 18-34 year

age range and 43% in the 35-64 year

age range.

The population of over 25 years of

age is highly educated. 32% of the

population 25 years and older has at

least a Bachelor’s degree, which is

25% higher than the state average. In

fact, only 12% of the population lacks

high school equivalency.

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However, our tax base is heavily weighted towards residential property.

In the Humble ISD, 79% of the property tax base is residential, the highest

in the Houston area. Even though our commercial property tax base has

increased primarily due to retail growth, it is still only 16% of the total

tax base.

While the bulk of our employment is related to George Bush

Intercontinental Airport, only three private employers employ

more than 800 employees – Memorial Hermann, Kingwood

Medical Center, and Insperity.

Despite great transportation access,

particularly to downtown Houston, a

significant number of

our residents commute

to work daily from our

area. Wouldn’t it be

great if they could

work, live, play, and

shop here? A higher

daytime population in our area will help

reduce retail and service leakage and allow

more residents to work near their homes.

This would be welcome news for our citizens and area businesses.

We can’t expect someone to discover our area. We’ve got to tell our story

– market the Lake Houston region. We have so many attributes, but the

competition is keen and if we want to control our destiny, it is up to us to

make it happen. We have to make economic development Priority One.

Priority One Target Markets

Because of our location, demographics,

existing businesses, and the economic

activities of the Houston Region, we

know we can be competitive in the

following markets for attracting jobs and

capital investment to our sub-region:

Office/Corporate Locations –

The Lake Houston Area is a natural

destination for office-based

industries, professional service firms

and other similar organizations.

Logistics/Airport Dependent

Companies – This is a strong

growth sector for the area due to

our close proximity to George Bush

Intercontinental Airport.

International Trade – Capitalize

on our location and the fact that

Houston has become a hub for

international trade.

Healthcare Related Developments –

The expansion and development

of medical service facilities will

be a growth sector in the Lake

Houston Area.

Energy Related Companies – Once

again, capitalize on our location in

the Houston Region and its strong

growth in the energy sector.

Retail/Hotel/Entertainment

Developments – The Lake Houston

area demographics give us the

opportunity to develop facilities

tailored to the surrounding

neighborhoods.

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Priority One

Information Services

If we want our area to grow in quality

and orderly manner, we must be the

clearinghouse for information on the

Lake Houston region.

We must provide potential clients

with timely and useful demographic,

real estate, and mapping data through

publications, a comprehensive

website, and other technological

methods in order to be competitive.

By providing quality information

services we will not only become the

leader in economic development in

the Lake Houston region, but we will

enhance our marketing capabilities

and potential growth opportunities

for the area.

Priority One Business Retention & Expansion

While attracting new businesses is the most glamorous aspect of

economic development, we cannot forget about our existing businesses.

The majority of the job growth and capital investment that occurs in any

given community comes from companies already located there.

An urban/suburban community will average 76% of their growth from

existing employers. The philosophy of Business Retention and Expansion

(BRE) is that existing businesses are the core of economic prosperity.

Businesses that stay competitive are more likely to remain in the

community and expand. We will plan visits to existing industries to

develop and cultivate relationships, and learn how the Partnership

and Chamber can assist them. This could be as simple as introducing

existing businesses to local resources they may not be aware of including

workforce programs and incentives.

Stable businesses play vital roles in their communities. Locally owned

businesses usually have a long-term commitment to their community,

relate to their community’s lifestyle, and have a vested interest in their

community’s quality of life. They want to be located in the community.

Equally important, existing businesses are major contributors to

the community’s economy, local organizations, and tax base.

In economic development efforts, existing, successful business

owners are precious resources. Their presence as community

ambassadors also makes a very positive statement in new

business recruitment.

We cannot forget about the potential expansion of our small

businesses, minority and women owned businesses, and the

entrepreneurship in the area since these are potential larger

employers.

Business Retention and Expansion will be a

baseline activity for Priority One.

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Priority One Operations

The LHAEDP will be a separate organization with its own Board of

Directors operating under the Lake Houston Area Chamber of Commerce’s

501c (6) tax code. The LHAEDP Board of Directors will determine the

strategic direction and the budget for the organization. The funds raised

through the LHAEDP will go specifically for Economic Development and will

be accounted for through a separate bank account and financial statement.

Economic Development contributions will not be co-mingled with Chamber

funds.

The LHAEDP will be governed by a Board of Directors consisting of a

representative from each of the top level contributors (Pacesetter Investor

and Pacesetter PLUS Investor) and three representatives of the Principal

Investor level. The Board of Directors will set the policies, procedures,

budget, business plan, and goals of the LHAEDP as well as elect their own

officers. Initially, the Board of Directors will contract with the Lake

Houston Chamber of Commerce for staffing services and any employees

hired by the LHAEDP will be LHACC employees, but will only be utilized for

economic development activities. An Executive Committee will also be

formed to act on behalf of the organization when the Board is not in

session.

All investors will receive consistent and detailed updates concerning

program benchmarks, milestones, accomplishments, and financial

statements on the economic development program. Every dollar

invested will go toward the implementation of the Lake Houston

Economic Development strategic plan.

The Base Plan for Priority One

Our six-point strategic direction for

the Lake Houston Economic

Development Partnership consists

of the following goals:

1. Create an Economic Development

Partnership between the city, county,

and private businesses/stakeholders.

2. Develop and update economic

development information services to

provide potential clients with timely

and useful data

3. Market the Lake Houston Area as a

great place to do business.

4. Establish a formal Business Retention

and Expansion program for the Lake

Houston Area.

5. Provide support and assistance to

the expansion of small businesses,

minority and women owned

businesses and the development of

entrepreneurship in the area.

6. Recruit primary jobs to the Lake

Houston Area.

For each of the points above, there is a

task list of items to accomplish to that

particular goal.

*See the LHAEDP Strategic Plan for

more detailed information.

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Lake Houston Area Economic Development Partnership

Economic Development Strategic Plan 2012-2014

Lake Houston Area Chamber of Commerce

STRATEGY A: Create an Economic Development Partnership between

the city, county, and private businesses/stakeholders.

1. Host a series of meetings of potential stakeholders to discuss formation

of the Lake Houston Area Economic Development Partnership.

2. Develop a collective mission and vision statement for the organization.

3. Determine the method of operation of the Partnership and go about

the process of establishing the organization and governing board.

4. Once the partnership is established, develop a fundraising strategy

and a targeted list to solicit funding from private and public entities.

5. Review and revise preliminary ED plan and develop a preliminary

budget to begin the implementation of the ED plan. Consider staffing

scenarios.

6. Utilizing the ED plan and budget as a basis, develop marketing

materials to be utilized implementing an economic development

funding campaign.

7. Publicize the start-up of the Partnership and the funding campaign

through available media and organization resources.

STRATEGY B: Develop and update economic development information

services to provide potential clients with timely and useful data.

1. Develop an easily navigable economic development specific website

and other technological innovations to provide potential users with

the best possible data.

2. Develop relevant, comprehensive demographic data sources into the

website and publications such as the production of collateral materials.

3. Provide mapping and GIS services for the Lake Houston area.

4. Identify and maintain an inventory of available sites and buildings for

the Lake Houston area and incorporate into economic development

website.

5. Develop and produce informational publications such as a Community

Profile and An Overview of Economic Activities. Others as needed.

6. Develop a regular e-mail newsletter and press releases to update

investors, stakeholders, and the public of economic development

activities, metrics, etc.

Lake Houston Area by the Numbers*

2011 Residential Population ..............

.............................................. 229,875

Total # Businesses ..................... 5,875

Total # Employees ................... 64,353

Total # Households .................. 77,638

Median Age ................................. 32.5

Average Household Income ...............

.............................................. $93,995

Median Household Income ................

.............................................. $74,761

Per Capita Income ................. $32,093

Labor Force 2011:

Civilian Population 16+ .......... 170,264

Population 16+ in labor force .............

.............................................. 133,138

Employed Civilian Population 16+

.............................................. 125,914

Unemployment Population 16+ .........

.................................................. 5,847

2011 Unemployment Rate ......... 4.9%

*Source:

Alteryx and DemographicsNow.com

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“There is not a firm or

individual who lives,

works, or does business in

the Lake Houston Area

that does not gain or lose,

in a very tangible way,

with the rise and fall of

the Lake Houston Area

regional economy.

Priority One will gear

all of its efforts toward

developing a healthy

economic climate for our

citizens and the businesses

that operate in the Lake

Houston region.”

STRATEGY C: Market the Lake Houston area as a great place to do business.

1. Establish the professionally developed website and accompanying

marketing collateral materials as the most comprehensive information

source for the Lake Houston Area.

2. Develop an event to host Developers, Brokers, Site Selection Consultants,

and Economic Development Allies to provide and orientation on the

Lake Houston Area and to showcase community offerings and potential.

3. Develop a current inventory of corporate executives that live in the

Lake Houston Area and establish contact and a relationship with them.

4. Participate in regional marketing opportunities through the Houston

Regional Economic Development Alliance of the Greater Houston Z

Partnership and regional commercial real estate organizations.

5. Utilize emerging and alternative media in marketing efforts

(i.e. Facebook, Twitter, LinkedIn, etc.).

6. Develop and maintain relationships with broker/ developers who have

listings in the Lake Houston Area, regional brokers in the Houston

area, site selection consultants, and representatives of the Houston

Airport System.

STRATEGY D: Establish a formal Business Retention and Expansion

program for the Lake Houston Area.

1. Conduct personal visits to local industries to learn of any expansion

plans or any impediments to expansion/retention of the business and

identify prospective vendors /suppliers that might be candidates to

locate in the area.

2. Communicate issues that arise in the industry interviews and trends

observed from the regional visits/reporting to the appropriate entities.

3. Provide expansion/retention assistance, information, and governmental

contacts to existing businesses to assist with expansion activities.

4. Host an annual existing industry appreciation event and consider

establishing an occasional meeting where businesses talk about the

issues they encounter in the Lake Houston Area.

5. Communicate post-secondary education/ training needs of area

companies identified during existing industry visits and encourage

development of appropriate programs by area educational institutions,

which support local business and employment opportunities.

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Top 12 Reasons for Locating in the Lake Houston Area: 1. Close proximity to George Bush

Intercontinental Airport (IAH). 2. Location in the Houston Metro

Area. 3. Excellent access to major

transportation corridors (Beltway 8 and US 59).

4. Convenient access to the Port of Houston.

5. Multimodal Transportation Access (ground, air, water, rail).

6. Highly skilled and educated workforce.

7. Mild year round climate particularly suited for outdoor living.

8. Access to quality healthcare locally and regionally.

9. Quality K-12 schools and higher education opportunities.

10. High quality of life with a wide array of housing choices.

11. Fast growth area with a 3.96% compound growth rate between 2000 and 2010.

12. Excellent availability of sites for office, commercial, and industrial development projects.

STRATEGY E: Provide support and assistance to the expansion of

small businesses, minority and women owned businesses and the

development of entrepreneurship in the area.

1. Establish a Small Business Council that addresses the issues affecting

small businesses and develops the programs that are needed by

small businesses.

2. Continue to enhance the development of minority and women

owned businesses through partnerships with the Houston Minority

Supplier Development Council (HMSDC) and Women’s Business

Enterprise Alliance (WBEA).

3. Develop a menu of education opportunities for small businesses and

entrepreneurs to be offered in a variety of methods to enhance skills

and capabilities.

4. Refer businesses to SCORE and the Lone Star College Small Business

Development Center for support in preparation of business plans,

financing, and consulting/ business education programs.

STRATEGY F: Recruit primary jobs to the Lake Houston Area.

1. Develop marketing and recruitment strategies to focus on the

following target markets:

a. Office/Corporate Location

b. Logistics/Airport Dependent Companies

c. International Trade

d. Healthcare Related Developments

e. Energy Related Companies

f. Retail/Hotel/Entertainment Developments

2. Work with the Governor’s Office of Economic Development and

the Greater Houston Partnership to receive state economic

development project leads

3. Work with regional partners in participation at trade shows and

events that are focused on our target markets.

4. Work closely and partner with surrounding area economic

development organizations to identify target business clusters and

collaborate on marketing to those clusters.

5. Develop information on and knowledge of federal, state and local

incentive/capital tools available.

6. Secure information on state and local permit requirements and

permitting/regulatory processes. Begin to build information/system

for regulatory/permitting assistance program.

7. Monitor statewide legislative issues that could impact economic

development and job creation in the state and local area.

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Priority One Annual Levels of Investment

Establishing a formal, organized economic development program for the Lake Houston area will not be easy and does not come without the need for financial resources. By developing and implementing strategic directions, we can guide the growth of the Lake Houston region. A true public/private partnership will be the key to success. A budget of between $150,000 and $250,000 per year will be needed to operate a program of this magnitude. The levels below reflect a four-year commitment is to provide the necessary focus of making economic development for the Lake Houston region Priority One. Partner Investor $1,000 annually ($4,000 over four years) Investment at the Partner level entitles the investor to be published on all promotional collateral as an economic development supporter and used on websites, press releases, etc. to promote the organization and its activities. This also entitles the investor to participate on any LHAEDP committee and in specific events and activities for LHAEDP investors only. Principal Investor $2,500 annually ($10,000 over four years) Investment at the Principal level entitles the investor to be published on all promotional collateral as an economic development supporter and used on websites, press releases, etc. to promote the organization and its activities. The Principal level also entitles the investor to participate on any LHAEDP committee and in specific events and activities for LHAEDP members only and to be eligible for one of three Director-at-Large voting Board positions as selected by the Board of Directors. Pacesetter Investor $5,000 annually ($20,000 over four years) Investment at the Pacesetter level entitles the investor to be published on all promotional collateral as an economic development supporter and used on websites, press releases, etc. to promote the organization and its activities. The Pacesetter level also entitles the investor to participate on any LHAEDP committee and in specific events and activities for LHAEDP members only and be eligible for one voting Board position on the Board of Directors. Recognition as a Pacesetter will also be provided. Pacesetter PLUS Investor $10,000 and above annually ($40,000 or more over four years) Investment at the Pacesetter PLUS level entitles the investor to be published on all promotional collateral as an economic development supporter and used on websites, press releases, etc. to promote the organization and its activities. The Pacesetter PLUS level also entitles the investor to participate on any LHAEDP committee and in specific events and activities for LHAEDP members only and be eligible for one voting Board position on the Board of Directors. Special recognition as a Pacesetter PLUS will also be provided. PLUS investors will have an automatic seat on the Executive Committee of LHAEDP. There is not a firm or individual who lives, works, or does business in the Lake Houston Area that does not gain or lose, in a very tangible way, with the rise and fall of the Lake Houston Area regional economy. Priority One will gear all of its efforts toward developing a healthy economic climate for our citizens and the businesses that operate in the Lake Houston region.

Photo Credits: Bill Beard, Scott Meyer, and Ernie Silva

Graphic Design: Carmen Wisenbaker

A Project of the Lake Houston Area Chamber of Commerce 110 West Main Street | Humble, Texas 77338 | Phone: (281) 446-2128 Email: President@LakeHoustonEDP.org | Website: www.LakeHoustonEDP.org

An Economic Development Plan that is the right direction for the Lake Houston Area