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San Angelo Development Corporation Orientation August 14, 2013

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  • 1. COSADC Board Member Orientation 2013
  • 2. Presentation & Recognition of Former Board Members
  • 3. COSADC Mission Statement • The City of San Angelo Development Corporation, working with our economic development partners will retain, strengthen and diversify the job base of the community to ensure a vibrant business climate for San Angelo and the region. • Purpose of the orientation
  • 4. Board Members  Daniel Anderson  John E. Bariou, Jr.  Richard Crisp  Tommy Hiebert  Pedro Ramirez  Scott Tankersley  Tony Villarreal
  • 5. City Staff Economic Development Office (3) City Clerk City Attorney City Finance Department / Budget Office City Manager’s Office
  • 6. Public Meetings & Open Records • Open Meetings Act Texas Government Code Chapter 551 • Public Information Act Texas Government Code Chapter 552 o Presented by Alicia Ramirez, City Clerk
  • 7. Regular Meeting Schedule  COSADC regular meetings – 2nd and 4th Wednesday of each month  Special meetings – as required  Annual Meeting – March of each year  Annual report to Council – May of each year
  • 8. Public Info orientation Aug. 14, 2013
  • 9. Public Info orientation • All meetings will be televised, per the City Manager. o COSADC is second-highest profile body. o Actions are of high interest & impact to the public. o Transparency is paramount; raises public confidence. • Council chambers is best place to film meetings. o Cameras, sound, lights and switching equipment in place. o Ensures highest-quality telecast.
  • 10. Public Info orientation • Microphones o Leave them on. (Green lights on.) o Lean in and talk directly into them. • Image conscious o Professional, respectful, open. o Be mindful of the seriousness the public applies to the half-cent sales tax. o Appearances matter.
  • 11. Public Info orientation • Media relations o Public Info is here to help. o Always be honest. Be helpful when possible (remembering the media helps us lots). o Talk plainly, avoiding acronyms. o Interviews are opportunities to inspire public confidence. o Have a strategy. Be ready to communicate not only what we’re doing, but (more importantly) how and why. o We should not only communicate our public service, but view communication as a part of our public service.
  • 12. Economic Development Sales Tax  The Development Corporation Act of 1979 authorized cities to adopt a sales and use tax and establish a Type A or a Type B economic development corporation, or both, to administer the tax funds, provided that city voters approve this special, dedicated tax  Chapters 501-505 Local Government Code  Two types of economic development corporations and two types of economic development sales tax  Type A (formerly 4A)  Type B (formerly 4B)
  • 13. Type A Sales Tax  Real and personal business property improvements and expenditures for the creation or retention of primary jobs and the following types of projects: Manufacturing, Industrial, R&D, Recycling, Small Warehouses, Distribution Centers, Regional or National HQ, Closed or realigned military bases, Primary job training by higher education institutions  Job training classes & career centers (no primary job requirement)
  • 14. Type A Sales Tax (cont’d)  Business airport and port related facilities  Cleanup of contaminated project sites (w/ special election and ballot language)  Infrastructure to commercial or retail  Beach remediation to support business development  Business related sewer & site improvements  Projects to attract new military missions, prevent closure or redevelop closed bases
  • 15. Type A Sales Tax (cont’d)  General airport facilities w/in 25 miles of the U.S.- Mexican border  Light rail, commuter rail, motor buses  Type B projects with voter approval *Primary Jobs are defined as jobs at a company where products or services are ultimately exported to regional, state, national or international markets bringing new dollars into the local economy and included in the approved NAICS code list
  • 16. Type B Sales Tax  Everything under Type A  Water supply with special election & specific ballot language (2010 ballot)  Quality of life projects including parks, sports & athletic facilities, tourism & entertainment, affordable housing, and other improvements or expenditures promoting business activity to create or retain primary jobs
  • 17. Type B Sales Tax (cont’d)  Hangars, airport maintenance & repair, air cargo, & infrastructure on or adjacent to an airport facility  Airport facilities provided that the municipality enters into an approved development agreement with an entity acquiring a leasehold or other possessory agreement from the E.D. corporation  Railports, switching facilities, marine ports & inland ports
  • 18. Bylaws: Board Members & Meetings • The property and business of the Corporation shall be managed by the Board of Directors. • Number. The Board shall consist of seven (7) directors, each of whom shall be appointed by a majority vote of the City Council. • Term. Each director shall serve a two-year term of office and shall be eligible for reappointment. • Removal. Any director may be removed from office by a majority vote of the City Council at will. • Annual Meeting. The annual meeting of the Board of Directors shall be held during the month of March • Special Meetings. Held at the request of the President, any Vice President, any two Directors of the Corporation, or any two members of the City Council.
  • 19. Bylaws: Agenda, Quorum, Ex-Officio • Agenda. Any director or officer of the corporation may place an issue on the Agenda of a regular or special meeting • Quorum. A quorum for the transaction of business by the Board shall be a majority of the seven (7) members. No proxy votes. No business shall be conducted or action be taken in the absence of a quorum. • Ex-Officio Members. The City Council may appoint Ex-Officio members to the Board of Directors The following persons shall be automatically appointed as Ex- Officio directors: • 1. The President of the San Angelo Chamber of Commerce; • 2. The Chairman of San Angelo Industries; and • 3. The Chairman of Priority One (Cornerstone).
  • 20. Bylaws: Projects & Conflict of Interest • Review of proposed Development Projects. In addition to the specific projects described in the ballot approved by voters, the Board is charged with projects for the promotion and development of new or expanding business entities which create or retain jobs, including providing for infrastructure to support such enterprises. With regard to such projects, the corporation should, consult with the Chamber • Conflict of Interest. In the event that a director is aware that he has a conflict of interest or potential conflict or interest, with regard to any particular matter or vote coming before the Board, the director shall bring the same to the attention of the Board and shall abstain from discussion of and voting on that matter.
  • 21. • Contracts for Service. The Corporation may, with approval of the City Council, contract with any qualified and appropriate person, association, corporation or governmental entity to perform and discharge designated tasks which will aid or assist the Board. • Utilization of City Staff. Subject to the authority of the City Manager under the Charter of the City, the Corporation shall have the right to utilize the services of the staff and employees of the City, provided that (i) the City Manager approves of the utilization of such services, and (ii) the Corporation shall reimburse the City employees for any actual reasonable expenses incurred by the employee • Board’s Relationship with the City. The Board shall determine its policies and directives. Policies and directives are subject to approval by the City Council. Bylaws: Contracts & Relationship to the City
  • 22. Bylaws: CCIP, Officers, Records & Organizational Control • CORPORATION CAPITAL IMPROVEMENT PLAN. The Board shall develop a combined Corporation Capital Improvement Program (“the CCIP”) • OFFICERS. President and First and Second Vice- President, Secretary and Treasurer; Elected at the annual meeting or as vacancies arise. • RECORDS OPEN TO PUBLIC. The Corporation shall be considered a “governmental body” and all records of the Corporation shall be made available to the public • ORGANIZATIONAL CONTROL. The City Council of the City of San Angelo, at its sole discretion, and at any time, may alter or change the structure, organization or activities of the Corporation
  • 23. Articles of Incorporation • Purpose: To promote community development within the City and the State of Texas in order to improve the quality of life and the public welfare of, for, and on behalf of the City by developing, implementing, providing, and financing the following projects allowed under Section 4B of the Act: • Lake Nasworthy Dredging Project and related improvements. • Coliseum and Fairgrounds Projects, including but not limited to replacement of air conditioning plant in the coliseum, construction of an indoor arena, and other facility improvements. • The promotion and/or development of new and expanding enterprises which create or retain jobs including the provision of infrastructure to support such enterprises. • Financing. Ability to finance through bonds, notes and other debt instruments with City Council approval.
  • 24. Bob Schneeman Interim Director Vacant Economic Development Coordinator Nora Regino Senior Administrative Assistant Vacant Economic Development Analyst CVCED Business Plan Competition Business Retention & Expansion Program Contract Composition, Review & Compliance Site Selection Assistance & Processing CVCED Recruitment, Vetting & Oversight Development Review Committee Public Relations: Newsletter, Website, Annual Report, Public Meetings Concho Valley Angel Network Economic Development Staff
  • 25. City of San Angelo Development Corporation Economic Development Office, City of San Angelo Marketing & Recruitment, San Angelo Chamber of Commerce Affordable Housing Program, City of San Angelo Neighborhood & Family Svcs. Dept. Downtown Revitalization, Downtown San Angelo, Inc. Concho Valley Center for Entrepreneurial Development, CVCED Board City of San Angelo Finance, City Clerk & Legal Departments COSADC-Funded Partnership Contracts
  • 26. City of San Angelo Development Corporation July 2013 Financial Statements
  • 27. Development Corp Orientation Finance August 14, 2013
  • 28. Elections • 1999 Ballot – first election that passed the voters approval • Specific projects approved • Only levied tax for six years • Cash flow was managed to make sure obligations could be met • Debt was issued in the City’s name to allow projects to begin as soon as possible Development Corporation Orientation – Finance
  • 29. Elections • Excerpt from the 1999 Ballot Development Corporation Orientation – Finance
  • 30. Elections • 2004 Ballot • Levied tax for 20 years • Some new projects were approved together with continuing some existing projects • Necessary to split the new funds collected from the 1999 ballot to ensure money was spent as allowed by the citizens • More debt was issued in the City’s name to allow projects to begin Development Corporation Orientation – Finance
  • 31. Elections • Excerpt from the 2004 Ballot Development Corporation Orientation – Finance
  • 32. Elections • 2010 Ballot • Lifted the sunset, this tax will be levied until the citizens vote it down so that large community needs may be addressed (water supply) • However we will probably need another election in the future when all these projects are complete • Necessary to split the economic development funds collected from the community/ballot project funds • Two debt issuances were made in the City’s name to allow projects to begin Development Corporation Orientation – Finance
  • 33. Elections • Excerpts from the 2010 Ballot Development Corporation Orientation – Finance
  • 34. Elections • Excerpts from the 2010 Ballot Development Corporation Orientation – Finance
  • 35. Collections • Since Type B sales tax is a local option on the state tax, vendors remit tax they collect to the state comptroller • Next the state comptroller releases our portion to us • Then we receive sales tax (60 days after the sale is transacted) • Finally each month Finance staff splits 72% of the revenue to the Ballot Fund and 28% to the Economic Development Fund Development Corporation Orientation – Finance
  • 36. 350,000 450,000 550,000 650,000 750,000 850,000 950,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2009 2010 2011 2012 2013 Collections • Sales Tax Analysis Development Corporation Orientation – Finance
  • 37. Development Corp Orientation Financial Statements August 14, 2013
  • 38. Executive Summary • Available Fund Balances Development Corporation Orientation – Financial Statements Unreserved Fund Balance-Economic Development 3,518,541 Unreserved Fund Balance-Ballot 5,135,122
  • 39. Executive Summary • Sales Tax Analysis Development Corporation Orientation – Financial Statements Month 2009 2010 2011 2012 2013 % Over/(Under) Oct 529,147 488,812 495,108 561,045 632,193 12.68% Nov 615,651 558,890 603,918 618,374 662,925 7.20% Dec 536,909 464,997 475,677 564,036 642,574 13.92% Jan 518,468 465,871 504,311 574,342 591,152 2.93% Feb 745,099 693,614 734,213 836,632 839,679 0.36% Mar 485,681 457,177 484,812 540,676 621,308 14.91% Apr 497,146 449,344 476,824 572,327 613,901 7.26% May 644,007 631,333 668,292 708,619 774,434 9.29% Jun 481,198 478,087 514,451 568,481 654,636 15.16% Jul 497,525 472,360 507,793 586,968 650,253 10.78% Aug 600,989 556,301 666,130 685,775 Sep 491,409 484,297 521,626 611,448 Estimated Year to Date Sales Tax Budget 82.85% = 6,199,241 excess/(shortage) 524,672
  • 40. 350,000 450,000 550,000 650,000 750,000 850,000 950,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2009 2010 2011 2012 2013 Executive Summary • Sales Tax Analysis Development Corporation Orientation – Financial Statements
  • 41. Economic Development • Balance Sheet Development Corporation Orientation – Financial Statements ASSETS Current Assets Checking/Savings 101000 · Cash & Investments 5,298,740 Total Checking/Savings 5,298,740 Accounts Receivable 115000 · Receivables 359,319 Total Accounts Receivable 359,319 Other Current Assets 141000 · Inventory-Ind Park-Phase I 985,559 143000 · Inventory-Ind Park-Phase II 52,000 144000 · Inventory-Ind Park-Phase III 20,500 Total Other Current Assets 1,058,059 Total Current Assets 6,716,118 TOTALASSETS 6,716,118
  • 42. Development Corporation Orientation – Financial Statements Economic Development • Balance Sheet LIABILITIES & FUND EQUITY Fund Equity Designated for Eco. Dev. Projects 2,139,518 Reserved for Inventory Assets 1,058,059 Unreserved Fund Balance 3,518,541 Total Fund Equity 6,716,118 TOTAL LIABILITIES & FUND EQUITY 6,716,118
  • 43. Development Corporation Orientation – Financial Statements Economic Development • Revenue & Expenditure Report Month Actual YTD Actual Budget Over/(Under) Budget % of Budget Revenues 313000 · Income-Sales & Use Tax 185,505 1,882,695 2,095,097 (212,402) 90% 360000 · Interest on Investments 414 7,497 14,150 (6,653) 53% 363101 · Lease Income 894 51,296 42,045 9,251 122% 366000 · Reimbursements 0 956 0 956 100% 380000 · Miscellaneous Income 50 7,343 0 7,343 100% Total Revenues 186,863 1,949,787 2,151,292 (201,505) 91%
  • 44. Development Corporation Orientation – Financial Statements Economic Development • Revenue & Expenditure Report Month Actual YTD Actual Budget Over/(Under) Budget % of Budget Expenditures 410000 · Administrative 1,943 53,952 58,547 (4,595) 92% 411000 · Bank Service Charge 15 178 120 58 148% 412000 · Partner Affiliations 0 68,899 79,039 (10,140) 87% 415000 · City Services 51 125,923 209,886 (83,963) 60% 420000 · Industrial Park Ops & Maint 82 5,033 4,238 795 119% 432000 · Outside Legal Services 0 0 5,000 (5,000) 0% 440000 · Marketing-Chamber of Commerce 18,750 187,545 225,000 (37,455) 83% 440100 · Downtown San Angelo 0 37,500 75,000 (37,500) 50% 440200 · Business Ret & Exp Prog 1,420 1,420 17,500 (16,080) 8% 440300 · ASA/BRC Design Request 0 0 7,500 (7,500) 0% 445000 · Promotion (SADC Marketing) 0 0 5,000 (5,000) 0% 450000 · Project-Business Resource Ctr 959 566,315 630,825 (64,510) 90% 451103 · Project-Tx Bank Sports Complex 0 53,000 100,000 (47,000) 53% 452101 · Project-CVCED 380 20,897 30,113 (9,216) 69% 452112 · Project-Martifer-Hirschfeld 0 0 263,932 (263,932) 0% 452115 · Project-Blue Cross Blue Shield 0 0 259,827 (259,827) 0% 452119 · Project-Air Service Marketing 2,000 2,000 43,000 (41,000) 5% 452120 · Project-Smith Blvd 0 0 455,000 (455,000) 0% 452121 · Project-MedHab 0 0 796,250 (796,250) 0% 452122 · Project-Ethicon 0 0 300,000 (300,000) 0% 452900 · Project-Future Projects 0 0 882,897 (882,897) 0% Total Expenditures 25,600 1,122,662 4,448,674 (3,326,012) 25% Revenue Over/(Under) Expenditures 161,263 827,125 (2,297,382) 3,124,507 (36%)
  • 45. Project Budget To Date Expense Remaining Budget Anticipate Paying Blue Cross Blue Shield 371,404 111,577 259,827 Yes Business Resource Center 2,104,129 2,039,620 64,509 Yes Ethicon 300,000 0 300,000 Yes Martifer-Hirschfeld (see 1999 ballot incentive) 2,490,109 2,226,177 263,932 Yes MedHab 796,250 0 796,250 Yes Smith Blvd 455,000 0 455,000 Yes 6,516,892 4,377,374 2,139,518 Total Committed, Not Expended 2,139,518 Development Corporation Orientation – Financial Statements Economic Development • Projects
  • 46. Development Corporation Orientation – Financial Statements Ballot • Balance Sheet ASSETS Current Assets Checking/Savings 101000 · Cash & Investments 5,011,762 Total Checking/Savings 5,011,762 Accounts Receivable 115000 · Receivables 923,964 Total Accounts Receivable 923,964 Total Current Assets 5,935,726 TOTALASSETS 5,935,726
  • 47. Development Corporation Orientation – Financial Statements Ballot • Balance Sheet LIABILITIES & FUND EQUITY Fund Equity Designated for Affordable Housing 435,960 Designated for Debt Service 364,643 Unreserved Fund Balance 5,135,122 Total Fund Equity 5,935,726 TOTAL LIABILITIES & FUND EQUITY 5,935,726
  • 48. Development Corporation Orientation – Financial Statements Ballot • Revenue & Expenditure Report Month Actual YTD Actual Budget Over/(Under) Budget % of Budget Revenues 313000 · Income-Sales & Use Tax 477,013 4,841,218 5,387,391 (546,173) 90% 380000 · Miscellaneous Income 0 40,670 0 40,670 100% Total Revenues 477,013 4,881,888 5,387,391 (505,503) 91% Expenditures 415000 · City Services 0 41,957 69,629 (27,672) 60% 430000 · Loan/Debt Service 0 3,473,044 4,348,188 (875,144) 80% 451102 · Project-Sports Facilities Maint 0 129,227 258,454 (129,227) 50% 451200 · Project-Affordable Housing 90,628 255,631 705,230 (449,599) 36% 451202 · Project-Blackshear Boundary 0 0 1,524 (1,524) 0% 452900 · Project-Future Projects 0 0 376,121 (376,121) 0% Total Expenditures 90,628 3,899,859 5,759,146 (1,859,287) 68% Revenue Over/(Under) Expenditures 386,385 982,029 (371,755) 1,353,784 23%
  • 49. Ballot • Projects Development Corporation Orientation – Financial Statements Project Budget To Date Expense Remaining Budget Anticipate Paying Pay-As-You-Go Ballot Projects 2013 Sports Facilities Maint 243,547 129,227 114,320 Yes 243,547 129,227 114,320 Affordable Housing Blackshear Neighborhood Boundary 28,300 26,776 1,524 Yes 2006-12 Affordable Housing 1,623,896 1,468,626 155,270 Yes 2012-13 Affordable Housing 335,000 0 335,000 Yes Blackshear Properties 404,125 404,125 0 N/A Neighborhood Blitz 60,000 60,000 0 N/A Rebuilding Together - Housing Repair 74,920 74,920 0 N/A Rebuilding Together - Housing One Stop 23,759 23,759 0 N/A Roofing Grant 100,000 100,000 0 N/A 2,650,000 2,158,207 491,794 Total Committed, Not Expended 606,114
  • 50. • Transaction detail by Account • Fund 503 • Fund 515 • Fund 514 • Voter-Approved Projects Development Corporation Orientation – Financial Statements
  • 51. COSADC Contracts for Services & Partnerships COSADC Partners  The Business Factory - Concho Valley Center for Entrepreneurial Development  Marketing & Recruitment -Chamber of Commerce  Downtown Revitalization - Downtown San Angelo, Inc.  Affordable Housing – Neighborhood & Family Services  Capital Assistance - Concho Valley Angel Network
  • 52. COSADC Contracts for Services & Partnerships COSADC Partners (cont’d)  Workforce Development - Concho Valley Workforce Development Board / Howard College & West Texas Training Center  Overall Business Assistance - ASU Small Business Development Center
  • 53. The Business Factory Organization • Non profit 501(c)(3) Corporation • Separate Board of Directors Business Accelerator Program • Provides subsidized graduated low cost office space to start-up companies • Provides limited office staff support, printer / copier, meeting space, • Provides limited business counseling and assistance • Annual renewal to 4 years maximum
  • 54. The Business Factory Current Tenants • Business Excellence Professional Consulting (BEPC) • Angelo Solutions Prospective Tenant – • Texas Conservation Bioenergy LLC
  • 55. Marketing & Recruitment San Angelo Chamber of Commerce • John Dugan – Vice President of Marketing & Recruitment
  • 56. Downtown Revitalization Downtown San Angelo, Inc. • Brenda Gunter – President • Del Velasquez – Executive Director
  • 57. Affordable Housing Assistance Program (AHAP) Neighborhood & Family Services Department Community & Housing Support Division Bob Salas, Director
  • 58. Program Overview • $335K annually from the Econ Dev Sales Tax • Primary Program = mortgage gap financing for first time homebuyers (cap $40K) • Low to moderate income clients based on HUD income guidelines • Other Programs/Projects Approved by Board • Neighborhood Blitzes • Rehabs • Roof Replacement • Shelton Street Homes
  • 59. Programs/Projects Status Program/Project Allocated Results • AHAP $1.5M 37 • Neighborhood Blitzes $480K 126 • Rehabs $150K 60 • Roof Replacement $200K 112 • Shelton Homes $600K 6
  • 60. Capital Assistance Concho Valley Angel Network • Bob Schneeman – Interim Staff Liaison • Capital investment in higher risk entrepreneurial projects
  • 61. Workforce Development Concho Valley Workforce Development Board • Cathy Ballard - Director of Planning / EO Officer • Capital investment in higher risk entrepreneurial projects Howard College • Jamie Rainey – Executive Dean
  • 62. Business Assistance Small Business Development Center SBDC • Dave Erickson - Director
  • 63. ASU Small Business Development Center August 14th, 2013 COSADC presentation
  • 64. SBDC Staff www.sbdc.angelo.edu James Adriana Paul Dave Melissa Jessica Peggy
  • 65. Business Resource Center ASU SBDC located in the Business Resource Center
  • 66. History  Started in 1990  Angelo State University is host  Field Center of the South-West Texas Border SBDC Network in San Antonio  First SBDC Director was Col. Harlan Bruha
  • 67. Mission and Values Mission  is to promote growth, expansion, innovation, increased productivity, and improved management for small businesses in the ten counties of the Concho Valley. Values  Integrity  Excellence  Service  Innovation  …we strive to in all we do
  • 68. Technical Business Advising Business Advising Services  free and confidential face-to-face technical business advising  Advisors have a combined 75 years’ experience in business management, business ownership and small business development  An average of 500 clients assisted each year  New and existing businesses are assisted. Areas of advising assistance include business startup, business plans, loan proposals, financing options, financial analysis, cash flow management, marketing, government procurement, human resources, etc.  See www.sbdc.angelo.edu for many client success stories.
  • 69. Technical Business Training Business Training Services  free or low cost business seminars and workshops on many business topics.  90+ seminars and workshops are conducted each year with 1100+ attendees each year. SBDC staff experts and outside experts in their field conduct the seminars and workshops.  Business training topics include starting a business, business plans, financing options, financial statements, cash flow, bookkeeping, sales tax, marketing (all areas), government procurement, customer service, QuickBooks, financial acumen, etc.  Offers 29 online business training modules at no charge  Small Business Management Certificate Program- intensive training program to give those starting a business the knowledge and tools they need to be successful business owners.
  • 70. Other Services Rural Business Program  Advisors travel to 9 rural counties of the Concho Valley providing business advising and economic development assistance. International Trade Office  Staffed by ASU graduate student from Argentina. Provides primarily export assistance and training to small businesses.
  • 71. 3rd Qtr End Results* Oct. 1, 2012 to June 30, 2013  Clients assisted 430  Advising hours 2,956  Long term clients 151  Business start-ups 35  Business expansions 23  Jobs created 146  Jobs retained 104 * 10 county Concho Valley service area  Capital infusion $3,726,134  Seminars/Workshops 78  Seminar Attendees 1,053
  • 72. Economic Development participation  BRC--- Business Resource Center  Cvbiz.org--- Concho Valley Business Resources  CVAN--- Concho Valley Angel Network  CVCED--- Concho Valley Center for Economic Development  San Angelo Business Plan Competition  WTTC--- West Texas Training Center (Col. Harlan Bruha)  YPSA--- Young Professionals of San Angelo
  • 73. SBDC Activities-COSADC Strategic Plan Action Item 2.c: Conduct outreach to existing San Angelo- based companies to determine what international trade is already taking place, and to identify untapped opportunities for importing or exporting, with support from the ASU Small Business Development Center’s International Trade Office. SBDC International Trade Office graduate student is working on a strategic plan to outreach to small business community for assistance with exporting. Basics of Exporting webinars are planned for the BRC. Action Item 17.a: Fully capitalize on the COSADC’s forward-thinking investment in the new Business Resource Center (BRC) to provide a high level of support to small businesses and entrepreneurs in the Concho Valley region. SBDC continues to take an active leadership role with other partners in development of BRC in terms of creating collaborative and synergistic programs and events. Action Item 18.c: Ensure the BREP program includes a component to identify small businesses that would benefit from business incubation and assistance through the CVCED. Most referrals to the CVCED have been thru the SBDC.
  • 74. SBDC Activities-COSADC Strategic Plan Action Item 19.a: Hold an annual “Inventors and Investors Symposium” that brings together small business owners, entrepreneurs, inventors, and investors from throughout the Concho Valley region. Put on hold at this time due to need to focus on “Doing Business in The Oilfield” event Action Item 19.b: Building on the success of the Concho Valley Angel Network, promote the growth of start-up companies in San Angelo through closer linkages between locally-based investors, entrepreneurs, and small businesses. SBDC advisors observe CVAN meetings on occasion. SBDC keeping abreast of and working with clients on crowd funding for perks and the upcoming equity crowd funding opportunities for local businesses. Action Item 20.a: Initiate a partnership between the CVCED, COSADC, SAISD, Howard College, the San Angelo Chamber of Commerce, and the ASU Small Business Development Center to stimulate entrepreneurship within San Angelo’s large minority population, focusing primarily on high school students and young adults. SBDC Business Development Specialist Adriana Balcorta Havins is actively engaging with Hispanic business community, working with Hispanic lenders and helped create a scholarship fund for low income potential business owners. SBDC working with ASU faculty and students on service learning projects and engagement with entrepreneurship community to stimulate entrepreneurship at ASU.
  • 75. SBDC Activities-COSADC Strategic Plan Action Item 29.a: Build on existing efforts of the Young Professionals of San Angelo to create additional networking opportunities and Happy Hour events for young professionals. SBDC advisor Jessica Lambert, co-founder of Young Professionals of San Angelo, is the current YPSA President. Most all YPSA meetings are held at the BRC. Action Item 29.c: Target economic development projects that would provide employment opportunities for ASU graduates. SBDC has connected MedHab LLC to ASU students for employment Action Item 31.f: Attract business and professional services and other related activities that are tied to the oil and gas industry in Midland-Odessa including: engineering, accounting, information technology, trucking, training, and metal product and machinery manufacturing. SBDC will work with econ dev partners to conduct a “Doing Business in the Oilfield” event. Various other SBDC offices along Eagle Ford Shale play have extensive experience in this area.
  • 76. Ongoing & Upcoming Initiatives BREP: John Dugan Business Resource Center: Jessica Lambert Strategic Plan: Bob Schneeman
  • 77. Business Resource Center
  • 78. Business Resource Center
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  • 86. Strategic Plan
  • 87. Strategic Plan Components  Market Assessment  Target Industries  Final Recommendations  Implementation Priorities Matrix
  • 88. Market Assessment 1. Who is San Angelo? 2. What Drives the San Angelo Economy? 3. How Competitive is San Angelo’s Business Climate? 4. How Well Does San Angelo Support Small Business Development? 5. What makes San Angelo Unique?
  • 89. Regional Services Energy Agri-Business Regional Medical Center Crop and Livestock Production Festivals, Sporting Events, and Outdoor Recreation Oil and Gas Products and Services Arts and Entertainment Renewable Energy Generation and Distribution Target Industries & Niches Ag Services Advanced Manufacturing & Logistics Fabricated Metals and Machinery PROPOSED SAN ANGELO, TX TARGET INDUSTRIES AND NICHES Renewable Energy Component Manufacturing “Ports-to-Plains” Logistics and Distribution San Angelo Target Industry Analysis Specialty Retail Animal Science R&D IT & Customer Support Technical Support Customer Service Data Storage and Processing Medical Equipment and Supplies Cyber Security
  • 90. Final Recommendations The report summarizes key findings from the previous two reports and presents goals, strategies, and action items which aim to: • Strengthen existing industry clusters and develop new clusters of recommended target industries; • Support the continued success and expansion of existing businesses; • Foster entrepreneurship and small business development; • Build and sustain a talented and skilled workforce; • Improve and maintain San Angelo’s business climate, image, and quality of life; and • Clarify the roles of San Angelo’s regional economic development partners to improve the efficiency and transparency of economic development efforts.
  • 91. Strategic Plan Goals Goal A: Strengthen San Angelo’s infrastructure and enhance connectivity to other regions. Goal B: Continue to invest in downtown San Angelo and the Concho River. Goal C: Fully capitalize on the unique opportunities provided by Angelo State University and Goodfellow Air Force Base. Goal D: Tap into San Angelo’s innovative culture and leverage small business resources to support entrepreneurship and minority business development. Goal E: Clarify and formalize the roles of San Angelo’s economic development partners to ensure that economic development is streamlined, transparent, and well-understood by all stakeholders.
  • 92. Strategic Plan Goals Goal E: Clarify and formalize the roles of San Angelo’s economic development partners to ensure that economic development is streamlined, transparent, and well-understood by all stakeholders. Goal F: Ensure that marketing efforts highlight regional assets and focus on target industries which will improve San Angelo’s image. Goal G: Ensure that workforce development and education programs are connected to the marketplace and support the retention of young professionals. Goal H: Engage in specific strategies to grow existing and emerging target industry sectors. **www.sanangelodevelopment.com**
  • 93. COSADC Incentive Policy Eligible Projects  Per Development Corporation Act of 1979  Primary Jobs Per Approved NAICS Code list  May consider retail under certain circumstances when 85% of sales are outside the Concho Valley retail trade area  COSADC investment must be less than 50% of total investment
  • 94. According to Texas Local Government Code Chapter 501 Primary job" means: (A) a job that is: (i) available at a company for which a majority of the products or services of that company are ultimately exported to regional, statewide, national, or international markets infusing new dollars into the local economy; (ii) included in an appropriate sector of the North American Industrial Classification System San Angelo NOT San Angelo $ $ $ $ $ $ $ $ $
  • 95. COSADC Incentive Policy Grants $2,000 -$5,000 per job created or retained Up to $10,000 if move HQ to San Angelo, highly paid positions or new skills set opportunities w/ high pay and benefits Note: Minimum threshold is 5 jobs created and $125,000 investment One full time job equivalent (FTE) = 110% of San Angelo MSA mean per capita income
  • 96. COSADC Incentive Policy Loan Participation  COSADC may purchase in a loan by financial institution  Collateral may be shared on pro rata basis or lender may be given a superior lien  COSADC may accept lower interest rate on its portion if lender lowers overall rate Note: Minimum threshold is 5 jobs created and $125,000 investment One full time job equivalent (FTE) = 110% of San Angelo per capita income (now using MSA average w/ 25% for benefits)
  • 97. Evaluating Prospects Examples Glazer’s Wholesale 45 Jobs retained @ $7,500 per job 79 new jobs created @$7,500 per job Tax Rebate on Improvements 100% Yrs 1 & 2 90% Yrs 3 &4 75% Yrs 5 – 7 50% Yrs 8 -10 Based on a $7.2 M investment land & bldgs
  • 98. Evaluating Prospects  MedHab LLC – locate new company in San Angelo & create up to 227 new jobs; Capital investment variable  15% of cap investment up to $300,000  Up to $575K renovation / property improvements  Up to $12.5K code compliance issues  Up to 227 jobs @ $7,929 per job  Maximum cash incentive not to exceed $2,795,500  Up to 3 years rent forgiveness at 2009 W. Beauregard valued at $648,000 ($18K / Mo)
  • 99. Evaluating Prospects Ethicon - $12M – $28M Cap. Investment & retain / retrain 30 jobs  $300,000 max job creation (agreement not yet executed)  4 Year progressively decreasing tax rebate
  • 100. Questions / Follow-up
  • 101. COSADC Regular Agenda