development of a task force & prospect site visits … · market-driven economic development...
TRANSCRIPT
DEVELOPMENT OF A
TASK FORCE &
PROSPECT SITE VISITS
Betty RussoOffice of the Governor
Economic Development & Tourism
281.222.6814 | gov.texas.gov/business
Updated annually in July
E D T O V E RV I E W
L E A D G E N E R AT I O N
R F I R E S P O N S E P R O C E S S
I N C E N T I V E S & F I N A N C I N G
The Governor's Office of Economic Development and Tourism (EDT)
promotes the State of Texas as a leading global business climate and
premier travel destination.
O F F I C E O F T H E G O V E R N O R
E C O N O M I C D E V E L O P M E N T & TO U R I S M
Economic Development focuses on domestic and international business recruitment, expansion and
retention, with the goal of creating jobs and enhancing opportunities for the Texas business community.
Business & Community
Development
Texas Workforce Investment
Council
Travel Texas
Texas Music Office
Texas Film Commission
The Governor’s
Commission for Women
Texas Military Preparedness Commission
The Governors’ Office of Economic Development & Tourism
Business & Community Development focuses on domestic and international
business recruitment, expansion and retention, with the goal of creating jobs
and enhancing opportunities for the Texas business community.
• Business recruitment • Business assistance
• Site selection • Permit assistance
• Project coordination • Trade & export promotion
• Community relations • Small business advocacy
• State incentives & financing
programs
• Industry research &
analysis
BUSINESS & COMMUNITY DEVELOPMENT SERVICES
O F F I C E O F B U S I N E S S C O M M U N I T Y A N D
D E V E L O P M E N T
C O O R D I N AT E D E F F O R T
State of Texas
OOG, TDA, Comptroller,
TCEQ
Company
County
Municipality
Water, Gas, Electric
Other AlliesCOG’s,
SBDC’s, FTA
Workforce
Texas Economic Development
Corporation (TxEDC)
businessintexas.com
• Public-private partnership
• Key marketing entity for the State
of Texas Economic Development
• Trade visits and special projects
• Statewide network of business
leaders
The Texas Governor’s Office of
Economic Development & Tourism (EDT)
gov.texas.gov/business
• Site selection
• Project management
• Business retention, expansion and/or
relocation
• Business incentives program
*EDT also includes The Office of Small Business and
the Texas Economic Development Bank.
Ongoing
Discussion
+
Feedback
E C O N O M I C D E V E L O P M E N T I N T H E S TAT E O F T E X A S
TA S K F O R C E
Important to develop a Task Force
Key Players should include:
• Local Government
• Workforce Development Organizations
• State Government
• Neighborhood Groups
• Chamber of Commerce/Business Associations
• Educational Institutions
• Community Non-Profits/Public-Private Partnerships
• Utilities
• Federal Government
• Philanthropic Organizations
Ta s k F o r c e D e ve l o p m e n t
International Economic Development Corporation
L E A D G E N E R AT I O N S T R AT E G Y
The state’s vision to build its future economy includes the cluster
initiative. The cluster initiative was created to provide a coordinated,
market-driven economic development strategy focusing on
industries with the greatest growth potential.
Texas’ six industry clusters include:
• Advanced Technology & Manufacturing
• Aerospace, Aviation & Defense
• Biotechnology & Life Sciences
• Energy
• Information & Computer Technology
• Petroleum Refining & Chemical Products
• Corporate Headquarters
• Distribution & Logistics
L E A D G E N E R AT I O N I N D U S T RY C L U S T E R S
• More than half of all leads received are the result of a
relationship our staff have cultivated with a site selection
consultant
• A second source of leads are direct leads from companies
following trade missions, outreach meetings or via our website
• A final source of leads are “blind leads”, which result from a
consultant or company contacting the state via fax, e-mail or
phone
H O W T H E S TAT E R E C E I V E S L E A D S
L E A D S O U R C E
In order to receive leads from the State of Texas you must:
• Have a full-time professional dedicated to economic
development
• Know how to put together a proposal
• Fill out a “Prospect Leads Request Form” and return it to SBD
coordinator or your regional representative
• Have only one recipient of leads per community
• Leads recipient can’t be consultant or for-profit entity
H O W C O M M U N I T I E S R E C E I V E L E A D S
• Company or site selection consultant contacts the state and
provides an “RFI” or “RFP”
• Governor’s Office disseminates lead statewide or to one or more
regions based upon the criteria outlined by the prospect
• It is possible that only a few counties within a region will meet
the prospect’s geographic criteria (ie. Central Texas w/in 30
miles of an international airport)
• It is up to the community to determine whether or not they meet
the prospect’s criteria
• State receives proposals from local communities and returns to
company/consultant for analysis
L E A D & P R O J E C T M A N A G E M E N T P R O C E S S
• Company selects Texas communities to visit
• Company narrows list to a single Texas site and sites in other
states
• State of Texas puts together incentive package to complement
local efforts
• Possible Texas Enterprise Fund negotiations
• Prospect decides to locate in TEXAS!
L E A D A N D P R O J E C T M A N A G E M E N T P R O C E S S
REGIONAL LEADMAP
Regional Utility Allies
Central Texas:
• American Electric Power
• Bluebonnet Electric
Cooperative
• Entergy
• Guadalupe Valley Electric
Cooperative
• Lower Colorado River Authority
• Oncor
• Pedernales Electric
Cooperative
• Texas-New Mexico Power Co
C E N T R A L T E X A S L E A D R E G I O N
• Cover letter that addresses consultant’s key criteria
• Specific information on site (building specs, map, photo of
building etc.)
• Community Profile (demographics, workforce availability,
industry profile, etc.)
• Information on Incentives
• Your contact information
• Site Summary Spreadsheet
K E Y E L E M E N T S O F A P R O P O S A L
S I T E S U M M A RY S P R E A D S H E E T
• Company selects Texas sites to visit
• Company narrows list to a single Texas site and sites in other states
• State of Texas puts together incentive package to complement local efforts
• Possible Texas Enterprise Fund (TEF) and other incentive negotiations
• Prospect decides to locate in TEXAS!
S I T E L E A D A N D P R O J E C T M A N A G E M E N T
P R O C E S S
R F I R E S P O N S E P R O C E S S
• First Rule of Lead Response
• Only respond if you meet the criteria requested by the consultant
or prospect
• Second Rule of Lead Response
• Convey the information the prospect wants upfront and in a
readily accessible way
• Third Rule of Lead Response
• Read and carefully follow the RFP response instructions
provided
B E S T P R A C T I C E S : R E S P O N D I N G TO L E A D S
• Submit a proposal if you don’t fulfill the requirements
• Make prospect search for their key criteria within your proposal
• Be late
• Go overboard with marketing materials and extraneous information
• Assume the consultant or company knows where your community is located
D O N ’ T
• Include sites which don’t meet requirements (ie. MLS listings of all your available buildings)
• Leave any survey questions blank
• Belittle your Texas neighbors
• Accidentally include comments in e-mailed proposals that aren’t
for readers’ eyes
• Include miscellaneous materials (ie. buttons, keychains) in hard-
copy proposals – these belong at the site visit
D O N ’ T
• Address all of the prospect’s requirements
• Keep the proposal simple and in the order requested
• Only provide requested information
• Submit proposal on time!
• Identify site(s), community and yourself
• Include excellent maps
• Communicate with your regional allies (Utility, Rail, Port,
Regional Org, etc.) to avoid duplication
D O …
Usually, leads will include an Excel spreadsheet listing:
• Key criteria with check boxes for each
• Space to list the contact information for each property
submitted
• Name of SBD project manager
R E C E N T C H A N G E S TO L E A D P R O C E S S
I N C E N T I V E S & F I N A N C I N G
T E X A S E N T E R P R I S E F U N D ( T E F )
In 2017, the 85th
Legislature fully funded
the Texas Enterprise Fund.
TEF is one of the largest deal-closing funds of its kind and continues to generate
significant job creation and capital investment in Texas.
TEF is a performance-based cash grant for projects where a single Texas site is
competing with another viable out-of-state option.
COMPANY NEW JOBS CAPITAL INVESTMENT TEF OFFER
NTT Data, Inc. (HQ) 6,377 $28,800,000 $7,499,352
Cognizant Technology Solutions 1,090 $8,452,000 $2,105,880
Charles Schwab & Co., Inc. 1,200 $100,000,000 $6,000,000
McKesson Corp. 975 $157,000,000 $9,750,000
Merck & Co., Inc. 600 $24,000,000 $6,000,000
Kubota Tractor Corp. (HQ) 344 $57,000,000 $3,800,000
Hulu, LLC 214 $13,660,000 $1,284,000
Ryder Integrated Logistics, Inc. 205 $5,266,000 $1,050,000
W.W. Grainger, Inc. 178 $3,900,000 $906,910
PGA of America (HQ) 150 $30,000,000 $1,500,000
Jacobs Engineering Group, Inc. (HQ) 111 $4,000,000 $1,238,760
CORE West, Inc. 97 $4,000,000 $970,000
*Sampling of TEF awards under the Abbott administration
SINCE 2004
$608 MILLIONIN TEF FUNDS AWARDED
TO
162
COMPANIES94,200 JOBSAND MORE THAN
$27 BILLIONIN CAPITAL INVESTMENT
T E F E L I G I B I L I T Y
T E F E L I G I B I L I T Y
✓Competition with another state for the project must exist and the business must
not have already made a location decision.
✓Projected new job creation must exceed 75 jobs in urban areas or 25 in rural
areas.
✓The new positions must offer compensation above the average wage of the
county where the project would be located.
✓A significant rate of return on the public dollars being invested in the project
must be demonstrated.
✓The project must have community participation from the city, county, and/or
school district, primarily in the form of local economic incentive offers.
✓The Governor, Lieutenant Governor, and the Speaker of the House must
unanimously agree to support the use of TEF for each specific project.
T E F E L I G I B I L I T Y
Application IntakeDay 1 Due
Diligence2-3
WeeksLeadership
Review30-44 Days
8-10 Weeks Average Timeline from Completed Application
T E F P R O C E S S & T I M E L I N ET E F P R O C E S S & T I M E L I N E
TEF Award Determination
• Award amount ranges from $1k - $10k per new job.
• Award amount depends on many factors including wages, job ramp
up, capital investment and return on investment to the State.
Disbursements
• Performance-based agreement, with disbursements issued after new
jobs have been created and verified.
• Must maintain baseline jobs throughout life of the contract.
T E F A G R E E M E N TT E F A G R E E M E N T
T E X A S E N T E R P R I S E Z O N E
• Awards refunds on state sales and use taxes paid by companies creating or retaining
jobs in or outside of economically distressed areas designated as Enterprise Zones.
• Amount of refund based on job creation/retention and capital investment.
• Maximum 105 designations allowed per biennium.
48.5 DESIGNATIONS
$5.81 BILLION
$34.2 MILLION
APPROVED DURING FY 2017-18
COMMITTED CAPITAL INVESTMENT
REFUNDED DURING FY 2017-18
3,403
15,653
TOTAL JOBS FOR BENEFIT FY 2017-18
S K I L L S D E V E L O P M E N T F U N D
Overview
• Grants are provided to help companies form partnerships with local community
colleges and technical schools to provide custom job training.
• Average training cost is $1,800 per trainee.
Eligibility
• Partner with an eligible grant applicant.
• Be actively involved in the planning and design of the customized training project.
• Pay wages to the employees who complete the training program that are equal to or
greater than the prevailing wage for the occupation in the local labor market.
• Sign an agreement with the grant applicant outlining each entity's roles and provide
equal employment opportunity documentation.
• Use WorkinTexas.com to post openings for new workers trained under the project.
T A X I N C E N T I V E S
Manufacturing Exemptions: State sales and use tax exemptions for tangible property, natural gas and electricity.
Freeport Exemptions: Tax exemption for certain goods that enter and leave Texas within 175 days.
Renewable Energy Incentives: Tax exemptions and deductions for solar, wind, ethanol and biodiesel.
Research & Development Tax Credit: Gives companies a choice between a franchise tax credit and a sales tax exemption for
materials, software, and equipment used for R&D purposes.
Data Center Tax Incentives: Allows qualifying data centers to receive sales and use tax exemption on tangible personal property.
Business Relocation Tax Deduction: Allows a company relocating its headquarters from out of state to Texas to deduct relocation
and moving expenses from their margin when calculating franchise tax liability.
Local funding to business-related infrastructure
and recruitment, equipment, land and economic
development purposes.
Property tax abatements
Permitting fee waivers
Local cash grants
C O M M U N I T Y I N C E N T I V E S
Texas and local communities offer a variety of tax incentives and innovative solutions for businesses
expanding in or relocating to Texas. The following incentives are the most commonly applied offerings.
O T H E R I N C E N T I V E S & F I N A N C I N G
O T H E R A S S I S T A N C E
Permit Assistance: TCEQ and EDT have established a relationship to assist companies that may experience unwarranted
delays in their environmental permitting process.
In-State Tuition for Employees: Allows employees and family members of the qualified businesses who have not yet
located in Texas to pay in-state tuition fees if the individual files with a Texas institution of higher education.
The Texas Economic
Development and
Tourism Office
gov.texas.gov/business
THANK YOU
Betty Russo
281-222-6814
TexasEconDev