2015 03 05_kaedc_2014_annual -ppt -rev2

Katy Area EDC Annual Review - 2014
& Work Plan Highlights - 2015
April 21, 2015
Presented by:
Lance LaCour,
President/CEO

2014 Executive & Nominating Committee
Executive
Woody Mann, Jr., Chairman
Kerry Gilbert, Vice Chairman
Joe Simmons, Treasurer
Katrina Katsarelis, Secretary
Stan Stanley, Immediate Past
Chairman
Jason Lawson
Dan Boggio
David Woodham
Nominating
Stan Stanley, Chair
Jason Lawson
David Woodham
Audrey Gilbreath
Katrina Katsarelis
Woody Mann, Jr.
Stan Stanley

2014 Administration
• Implemented Katy Area 2014 Work Plan & Accomplished over 80% of
the objectives and tactics
• Finished 2014 “In-the Black” & Conducted 2013 Audit
• Scheduled 10 Industry Specialists for General Assembly Meetings
Made 9 Presentations to Civic Clubs
• Conducted Successful EDC Golf Tournament that Raised $22,000 in
Sponsorships
• Donated $2,000 to Area Charities
• 2014 Golf Tournament Committee:
Steve Reichardt – Weston Lakes Country Club
Anthony Francis – LJA Engineering
Raul Wong – Halff Associates
Michael Garza – Tradition Bank
David Asaud
Chad Craft
Angela Thomson

Year End 2014 Membership Committee
• 31 Board of Governors
Members
• 20 Strategic Partners
121 Associates
• Total Membership = 172
4 New Board of Governors
2 New Strategic Partners
2 New Associates
New Board of Governors Members:
• Houston Methodist Hospital
• Texas Children’s Hospital West
• Kurt & Associates, LLC
• Woodcreek, LLC
New Strategic Partners:
• LJA Engineering
• Westpark Springs Hospital
Stan Stanley Rick Lawler Frank Lombard

10th Anniversary Event
10 Years in Progress
• 180+ Attended program
• Accomplishments 2003-
2013
• 13,000 Jobs
• $1.3 Billion Capital
Investment
• $3.0 Billion in Economic
Impact
• 7,000,000 SF
• $1.2 Billion in
Infrastructure Project
Advocacy

2014 TEDC CEDA Award
- Winner for Communities over 250,001 in
population.
- Competed with Austin, San Antonio and
Williamson County

2014 Talent Committee
Stan Goss,
Chairman
Alton Frailey
Stan Goss
Gary Jones
Thomas Polvogt
Anna Webb-Storey
David Asuad
Craig Brooks
David Woodham
Talent Committee & Leadership Task Force
Butch Herod
Zachary Hodges
Richard Phillips
Gary Willis
Jason Lawson
Ginger Hopper
Joe Simmons
Michial Adams
Kevin Carmody
Pam Puckett
Robert Carpenter

2014 Leadership
• Two Visions of Katy Programs
• 140 People Attended
1. Higher Education 2. Mobility
• White Paper Developed • EDC Mobility/Public Infrastructure
Committee Forming

2014 Talent
Workforce Solutions Office Extends Annual Lease at Katy Mills for 6th
Year
• Chamber / EDC / Legislative P3 Partnership
• Katy Mills Exchange for Membership in EDC / Chamber for Nominal
Consideration Lease

2014 Talent
• Higher Education
• UH seeking State Tuition Revenue Bonds
• EDC encouraged expansion for 9 years
• EDC attends NACE conference in San
Antonio

2014 Talent
KISD
• 2014 Bond Approved by Voters
• EDC served on Bond Committee
• Supported by EDC resolution

2014 Talent
• Fostered
collaboration
meetings with Katy
ISD CTE
• Manufacturing &
Oil & Gas Program
Developed
• 2,000 SF allocated
at Miller Career &
Tech Center

Alton Frailey
Ana Villaronga-
Roman
Anthony
Francis
Brad Barnes
Carol Adams
Christa Clifton
Dan Boggio
Diana Schauer-
Tran
2014 Place-Brand Committee
Peter McElwain
Richard Lawler
Rick Blan
Sabrina Scruta
Dan Boggio
Chair
Don Massey
Donna Range
George Purvis
Kayce Reina
Kelly Hammons
Leah Marchione
Lindsey Kaye
Michael Moore
Rick Blan
Co-Chair

2014 Place-Brand
• Developed New Brand Website
• Logo posted on 150,000 No-Label cartons
• ISD posted Brand on their Website
• Katy Mills posted 20+ Banners and Posters
• Median signs were designed
• Brand Trademark approved
• Icon signs were designed and distributed
• 5 flower pots were produced and installed

2014 Place Brand
• EDC participated on WHA
drainage / floodplain / surface
water issue task force

2014 Selected New Home Sales
2014
Cinco Ranch 451
Firethorne 368
Cross Creek 418
WoodCreek Reserve 40
Bridgeland 96
Total 1,373
Community Number of Homes

2014 Industry Committee
Kent
Rosenberger
Committee
Kent Rosenberger,
Chair
Craig Brooks
Craig Rhodes
Frederick Barksdale
Jason Lawson
Jackie Wilcox

EDC 2014 Industry
Marketing & Social Media
• Aligned all EDC/Brand Domains (100+) with
Landing Pages
• Developed New Branding Website
• Main Website
• Total Page Views: 68,650
• Users: 15,110
• 20,571 sessions
• Facebook/LinedIn/Twitter
• 472-695 Likes
• 152-281 with 1,000 Impressions
• 700 Followers

Demographics
Demographic Overview
(2014)
Total Population 305,800 Median Income $85,550
% Male Population 49.2% Per Capita Income $37,166
% Female Population 50.8% Average Household Income $113,212
Median Age 34.3
Owner Occupied Housing
Units
97.2%
Population Density 1,725.5 Vacant Housing Units 2.8%
Total Households 97,728
Household Growth from
2000 to 2014A
111.8%
Average Household Size 3.1
Household Growth from
2014A to 2019
15.4%
22

Population of Katy Area TX 2013
23
300,000
310,000
320,000
Katy Area 305,800 Pittsburgh, PA (City)
305,841
Corpus Christi, TX
316,000
Population of Katy, TX 2013

Population & Demographics
139,998
256,984
305,800
343,923
46,139
84,451
92,728
112,258
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2000 2010 2014 Estimates 2019
Projections
Population
Households
2014-2019 Katy ISD Growth

25
Demographics
Workforce - KISD
Employment
2000 2010 2014 2019 Percent Change
Census % Census % Estimates % Projections %
2000 to
2010
2014 to
2019
% %
Total Pop. 16+ 98,410 186,205 218,190 254,668 89.2% 36.8%
Employed 68,779 72.9% 121,959 70.5% 147,977 67.8% 180,257 70.8% 77.3% 23.5%
Unemployed 2,823 3.9% 9,113 6.9% 7,206 4.9% 6,451 4.9% 222.8% -10.5%
Avg. Household
Income
$84,178 $110,142 $113,212 $130,312 30.8% 15.1%
Median Hhld Income $69,881 $83,712 $85,550 $99,087 19.8% 15.8%
Per Capita Income $27,797 $36,218 $37,166 $42,741 30.3% 15.0%

Workforce
26
514,479
706,973
766,874
884,971
403,764
532,535
577,579
677,704
212,753
314,313
346,107
415,850
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2000 2010 2014 2019
Employment Size and Growth in the Labor Pool in Katy,
Sugar Land, and The Woodlands
Katy
Sugar Land
The
Woodlands

Energy Cluster Employment
30 Minute Drive Time
Mason Rd/I-10
41,000
5,580
17,808
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Katy The Woodlands Sugar Land
Employment

Energy Cluster Firms
30 Minute Drive Time
Mason Rd/I-10
1,158
350 347
-
200
400
600
800
1,000
1,200
1,400
Katy The Woodlands Sugar Land
Establishments

Industry Employment Estimates – Katy Area
Major Industry Sector Growth 2013-2014
Industry 2013 2014 A 2014B
Ab. Change
2013 -
2014B
Forestry & Fishing 1,345 1,486 1,527 182
Mining 5,724 6,264 9,214 3,490
Construction 4,464 4,208 4,453 (11)
Manufacturing 11,670 12,103 12,226 556
Transportation, Communication & Utilities 3,018 3,038 3,124 106
Wholesale Trade 3,545 2,999 3,070 (475)
Retail Trade 18,258 19,980 19,125 867
Finance, Insurance & Real Estate 4,526 4,037 3,978 (548)
Services 36,279 39,114 39,446 3,167
Public Admin 1,400 1,342 1,386 (14)
Totals 90,229 94,571 97,549 7,320
Source: Dunn & Bradstreet 2013-2015

Engineering, Accounting & Research
Employment Growth
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2013 2014B
Engineering, Accounting & Research
Employment Growth
Engineering, Accounting & Research 11,779 14,409 16,586 4,807

Real Estate Inventory
Katy Area
Industrial
2014 # of Buildings RBA (SF) Total
Vacancy
1Q 248 9,742,522 8.1%
2Q 250 9,758,522 7.6%
3Q 259 9,942,297 6.9%
4Q 260 10,006,610 7.4%
QTD 260 10,006,610 7.4%
31

Office Katy Area – Class A
Office
2014 # of Buildings RBA (SF) Vacancy
1Q 48 9,239,297 3.3%
2Q 50 9,817,446 4.8%
3Q 53 10,363,368 4.9%
4Q 55 10,550,742 5.9%
QTD 55 10,552,742 5.8%
32

Office Katy Area – Class B
2014 # of Buildings RBA (SF) Vacancy
1Q 273 6,789,380 5.1%
2Q 273 6,789,380 5.9%
3Q 274 6,796,680 7.6%
4Q 277 6,844,248 7.5%
QTD 277 6,844,248 8.0%
33

Office Market Comparison Analysis
Summary of Study
• Hired DCG Corplan Consulting LLC- Site Selection
Consulting Firm
• Hypothetical 200 – Person HQ Facility
• 45,000 SF Lease – Site selection consultant review
• Developed Geographic Boundaries Using Katy ISD, Zip
Codes & Census Tracts To Compare Data
• Five Office Sub-Markets Compared Using CoStar
Boundaries (Selected by Katy Area EDC)
• East Fort Bend County (Sugarland)
• Katy Freeway East
• San Felipe/Voss
• Westchase
• The Woodlands

Office Market Comparison Analysis
Summary of Study
• Econographics were compared for true Katy Area
and the 5 submarkets against the Houston MSA
• 22 Topics Covered, 11 Demographics & 11 Economic
Factors
• Katy ranked second behind East Fort Bend/Sugarland but
tied in the Economics Section
• Real Estate Review Conducted
• Available real estate
• Interviews with Brokers
• Operating Costs Compared
• Total costs
• Katy Area #1, Westchase #2

Real Estate
Submarket Comparisons
Item Katy E. FT
Bend/Sugar
Land
Katy Freeway
East
San Felipe/Voss Westchase The Woodlands
Class A% 55% 41.5% 41% 32% 45.4% 37.5%
Class B% 40.5% 47.6% 34.4% 66.6% 66% 53.1%
Below Class B 4.5% 10.9% 24.7% 1.4% 5.9% 9.4%
Total SF 17.27 M 9.42 M 10.37 5.36 16.2 13.58
# Buildings 415 340 233 49 131 447
Class A
Vacancy
5.4% 13% 2.8% 17.5% 10.4% 7.5%
S.F. Under
Construction
2.3 MSF .217 MSF 1 MSF 0 MSF 2.3 MSF 4.8 MSF
Class A Avg.
Asking Rent
Triple Net
$29.12 $26.57 $36.30 $32.99 $36.93 $34.22

Summary of Costs
Table 4.6 – Summary of 1st Year Costs and Final Ranking by Submarket
Katy Area
E Ft. Bend
Co./Sugar
Land
Katy Freeway
East
San Felipe
/Voss Westchase
The
Woodlands
Payroll $19,170,360 $19,981,340 $21,158,460 $21,185,800 $19,022,690 $20,200,390
Rent 1,310,400 1,195,650 1,633,500 1,484,550 1,661,850 1,539,900
Net Fit-out 2,475,000 2,313,000 2,313,000 2,313,000 2,313,000 2,223,000
Parking 37,160 30,950 55,510 79,770 132,410 3,580
Electricity $232,510 $232,510 $232,510 $232,510 $232,510 $177,970
Telecom $540,000 $540,000 $540,000 $540,000 $540,000 $540,000
Incentives -$95,000 -$95,000 -$95,000 -$95,000 -$95,000 -$95,000
Total $23,670,430 $24,198,450 $25,837,980 $25,740,630 $23,807,460 $24,589,840
Rank 1 3 6 5 2 4

Office User
Sasol HQ
• 525 Jobs
• 175,000 SF
• Woodbranch

Office User
DNV GL Expansion
• 350 New Jobs
- Total 700 Jobs
• 47,500 SF
• Ten West Crossing
- Mason/I-10

Office User
Academy Sports & Outdoors HQ
• 200 Jobs
• 200,000 SF
• Mason Road

Office User
Memorial Hermann
• Office Building & Hospital
• 300 Jobs
• 400,000 SF
• Convenient Care Location
• West Park Tollway– Grand Parkway
• 30,000 SF
• 50 Jobs

2014 Selected User Projects and Announcements
Office Project User/Development Jobs Sq. Ft. Capital Investment
Academy Sports and Outdoors User 200 200,000 25,000,000.00$
Andean Financial Services LLC User 2 606 21,210.00$
Aqualis Offshore User 15 5,189 181,615.00$
Asset Optimization Consultants Inc User 6 2,034 71,190.00$
BTC Properties User 5 2,800 98,000.00$
CID Source Net User 10 4,573 160,055.00$
Cook Realty Group User 5 3,096 120,000.00$
Deep Gulf Energy User 7 2,438 85,330.00$
DNV-GL User 350 47,500 10,000,000.00$
Elevate Training Systems User 1 2,000 70,000.00$
Farmer's Insurance User 3 1,181 41,335.00$
G Procurement Group User 5 1,191 41,685.00$
GIE User 40 15,837 554,295.00$
IPT Global User n/a 16,397 573,895.00$
Interica Inc User 5 3,174 111,090.00$
Sub Total 654 308,016 $ 37,129,700.00

Office Project User/Development Jobs Sq. Ft. Capital Investment
JQ Engineering User 12 5,558 155,645.00$
Matt Leicht User 3 1,136 39,760.00$
NACE User 20 50,000 5,000,000.00$
Parson Brinckeroff User 80 29,964 1,048,740.00$
Penntex User 20 8,260 289,100.00$
Raindachem Inc User n/a 517 18,095.00$
Reel Group User 10 5,898 206,430.00$
Regus User n/a 12,373 400,000.00$
Sasol User 525 175,000 n/a
Servitrans User 10 3,277 114,695.00$
Southwest Document Solutions User 5 3,020 105,700.00$
State Farm Insurance User 3 1,125 39,375.00$
Unity Oil & Gas User 3 680 23,800.00$
URS Corporation User 390 130,151 Lease
Vepica USA User 5 1,348 47,180.00$
William Jacob Management User 3 15,638 547,330.00$
British International School User 300 270,000 60,000,000.00$
Sub Total 1,389 713,945 $ 68,035,850.00
TOTAL 2,043 1,021,961 $105,165,550.00

Industrial Project User/Development Jobs Sq. Ft. Capital Investment
Ferguson Enterprises User n/a 12,118 150,000.00$
Gateway Gathering and Marketing Company User 36 23,257 n/a
Goodman Networks User 35 32,878 n/a
Jackson Supply User 5 17,550 600,000.00$
Johnstone Plumbing Supply User 10 15,875 200,000.00$
Lone Star Provisions, Inc User 4 9,840 250,000.00$
Morrison Supply Company User 10 36,000 n/a
Olympian Machine User 10 7,000 500,000.00$
Outteck User 3 1,435 n/a
Pulse (Acteon) User 10 7,500 n/a
Servi User 10 19,546 n/a
Williams Sonoma User 20 71,000 n/a
Sub Total 153 253,999 $1,700,000.00
Medical Project User/Development Jobs Sq. Ft. Capital Investment
Cutting Edge Pediatric Therapy User 7 44,500 1,335,000.00$
Dr. Syed A Raza User 5 2,000 60,000.00$
Foot Reflexology Clinic User 4 1,625 50,000.00$
Jefferson Dental Clinics User 10 4,325 120,000.00$
MD Kids Pediatrics User 10 6,300 180,000.00$
Memorial Herman User 50 30,000 5,000,000.00$
Smile Rangers User 5 1,750 52,500.00$
Texas Children's User 200 30,000 2,000,000.00$
Texas Children's User 20 6,000 180,000.00$
University of Texas MD Anderson Cancer Center User 20 35,000 2,000,000.00$
Unity Family Clinic User 4 2,000 60,000.00$
Sub Total 335 163,500 $11,037,500.00
Total/All Users 2,531 1,439,460 $117,903,050.00

Industrial User Projects
Skybox Data Center
• $70 Million in
Investment (Phase I)
• 89,000 SF Phase I
• 80,000 SF Phase II

Office Development Projects
Lincoln Properties
• ±300,000 SF
• 3 Stories
• 60% Leased
- Parsons Brinckerhoff
• Park Row & Park Ten

Grandway West
• 780,000 SF Total
• 89,000 SF Phase I
• 50 Acre Site
• Value Office
• Percheron - First Tenant, LJA Engineering,
Lauren Engineers
• 76% Leased

Greenhouse Office Park
• 200,000 SF (Phase I)
• 140,000 SF Leased to
URS (AECOM) Corp –
390 jobs
• 2nd Building: 200,000
SF

LaCenterra Phase IV Office
• 75,000 SF – 100,000 SF
• Class A
• Completion Date: 2016
• The Vista Companies -
Developers

Mason Creek Office Center II
• Mason Road & I-10
• Class A
• ±129,000 SF
• 3 Floors
• Mason Creek Office Center III:
95,000 SF

Katy Ranch Office Building
I
• West of Grand Parkway on
I-10
• Class A
• 6 Floors
• ±156,000 SF
- 25% Leased
• Second Building Planned:
156,000 SF

Verde Parc
• Grand Parkway & I-10
• 170 AC

Park West Business Park
• Katy-Fort Bend & I-10, up to
Colonial Parkway
• 150 AC

Industrial Development Projects
Ten West Crossing
• Total Build out: 552,000 SF
• 134,000 SF Available
• Location of Kobelco
- 110,000 SF
- 100 Jobs
55

Grand Parkway
Distribution Center
• Morton Road & Grand
Parkway
• 50 AC
• Building 1: ±450,000 SF

West Ten Business Park
• Spec Buildings
• ± 419,000 SF Phase I
• 70,000 SF + 349,000 SF
• Under Construction
• 1,200,000 SF Buildout
• 65 Acres
57

Mason Creek Business Center
• 395,000 SF at Mason Creek
• 200,000 + SF Available
• 120,000 – 42,000
- 12,000 SF Minimum
58

Industry Development Projects
Energy Park West
• Katy-Hockley Cut-Off Road
• 150 AC
• ±30,000 SF Spec Building Under
Construction
• Multiple BTS Projects Considering
Area

2014 Selected Development Projects and
Announcements
Office Project User/Development Sq. Ft. Capital Investment
Grand Ridge Office Condominiums Development 50,000 5,000,000.00$
Grandway West Phase I Development 88,000 10,000,000.00$
Greenhouse/Park Row Office Building Development 119,000 12,000,000.00$
Katy Ranch Crossing Development 156,000 18,000,000.00$
One Grand Crossing Development 172,000 19,000,000.00$
Total 585,000 $ 64,000,000.00
Industrial / Flex Project User/Development Sq. Ft. Capital Investment
Energy Park West Development 30,000 900,000.00$
Grand Parkway Industrial Park B1 Development 20,000 700,000.00$
Grand Parkway Industrial Park B2 Development 20,000 700,000.00$
Mason Ranch Industrial Park Development 654,000 23,000,000.00$
Merrell Commercial Development 30,000 1,500,000.00$
West Ten Business Park -Transwestern I Development 419,000 15,000,000.00$
Total 1,173,000 $41,800,000.00
Total Development 1,758,000 $105,800,000.00

2014 Selected New Retail Projects

Katy Area Selected Users and
Developments Project Summary 2014
Type Jobs SF Cap Ex
Office 2,043 1,606,961 $169,165,550
Medical 335 163,500 $11,037, 500
Industrial 153 1,426,999 $43,500,000
TOTAL 2,531 3,197,460 $223,703,050

Work Plan Highlights 2015
TALENT
• Advocate and support Tuition Revenue Bonds for
UH Campus.
• Contact legislators and register resolution support
for project.
• Develop and implement Higher Education Task
Force

TALENT
• Work with area training providers to connect
existing and new businesses to training programs,
grants and opportunities.
• Formalize Katy Area Workforce/Training
Consortium and conduct four events
• Build relationships with local and regional area
education institutions.

INDUSTRY
• Implement populate new website with
improved functions, SEO and information.
• Develop new advertisements targeted to office
users.

INDUSTRY
• Support Bisnow Sponsorship Meeting “The
Future of Katy” as a key facilitator of the
meeting.
• Publish 2015 Development Map.

PLACE/BRAND
• Consider hiring full-time marketing director to
manage EDC Marketing, Public Relations and
Branding efforts.
• Consider merging Place/Brand and Industry
Committees together and align committee
members.

MEMBERSHIP/SPONSORSHIP
& ADMIN
• Grow membership to 200 members and recruit
$89,000 of new memberships.
• Form, develop and implement
Infrastructure/Mobility Task Force.
• Conduct Golf Tournament with some proceeds
benefitting TIWH and Marketing efforts

JOB CREATION & CAPITAL
INVESTMENT
• Job creation: 1,500 jobs
• Includes office, industrial, technology,
entertainment and lodging
• Focus on office
• Focus on jobs that pay over $57,000/year
• Capital investment: $200,000,000

SPACE
• Leasing of space
• Office: 200,000 SF
• Industrial: 300,000 SF
• Space construction support
New for Spec, Build-to Suit
• Office: 250,000 SF
• Industrial: 500,000 SF
• Entertainment/Lodging/Institutional: 100,000 SF

Thank You for Your Support of the
Katy Area EDC!!!
Lance LaCour, President/CEO
(281) 396-2200
lancelacour@katyedc.org

2015 03 05_kaedc_2014_annual -ppt -rev2

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Editor's Notes