San Angelo Development Corporation Orientation August 14, 2013

COSADC Board Member Orientation
2013

Presentation & Recognition of Former
Board Members

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

Board Members
 Daniel Anderson
 John E. Bariou, Jr.
 Richard Crisp
 Tommy Hiebert
 Pedro Ramirez
 Scott Tankersley
 Tony Villarreal

City Staff
Economic Development Office (3)
City Clerk
City Attorney
City Finance Department / Budget Office
City Manager’s Office

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

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

Public Info orientation
Aug. 14, 2013

• 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.

• 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.

• 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.

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)

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)

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

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

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

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

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.

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).

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.

• 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

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

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.

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

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

City of San Angelo
Development Corporation
July 2013 Financial Statements

Development Corp Orientation
Finance
August 14, 2013

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
Orientation – Finance

Elections
• Excerpt from the 1999 Ballot

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

Elections
• Excerpt from the 2004 Ballot

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

Elections
• Excerpts from the 2010 Ballot

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

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 Corp Orientation
Financial Statements
August 14, 2013

Executive Summary
• Available Fund Balances
Orientation – Financial Statements
Unreserved Fund Balance-Economic
Development 3,518,541
Unreserved Fund Balance-Ballot 5,135,122

Executive Summary
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

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

• Balance Sheet
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

• 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

• 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%

Month
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%)

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
• Projects

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

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

Ballot
Month
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%

Ballot
• Projects
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

• Transaction detail by Account
• Fund 503
• Fund 515
• Fund 514
• Voter-Approved Projects

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

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

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

The Business Factory
Current Tenants
• Business Excellence Professional Consulting
(BEPC)
• Angelo Solutions
Prospective Tenant –
• Texas Conservation Bioenergy LLC

Marketing & Recruitment
San Angelo Chamber of Commerce
• John Dugan – Vice President of Marketing &
Recruitment

Downtown Revitalization
Downtown San Angelo, Inc.
• Brenda Gunter – President
• Del Velasquez – Executive Director

Affordable Housing Assistance
Program
(AHAP)
Neighborhood & Family Services Department
Community & Housing Support Division
Bob Salas, Director

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

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

Capital Assistance
Concho Valley Angel Network
• Bob Schneeman – Interim Staff Liaison
• Capital investment in higher risk entrepreneurial
projects

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

Business Assistance
Small Business Development Center SBDC
• Dave Erickson - Director

ASU Small Business Development
Center
August 14th, 2013 COSADC presentation

SBDC Staff
www.sbdc.angelo.edu
James Adriana Paul Dave Melissa Jessica
Peggy

Business Resource Center
ASU SBDC located in the Business Resource Center

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

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

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.

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.

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.

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

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

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.

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.

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.

Ongoing & Upcoming Initiatives
BREP: John Dugan
Business Resource Center: Jessica
Lambert
Strategic Plan: Bob Schneeman

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Strategic Plan Components
 Market Assessment
 Target Industries
 Final Recommendations
 Implementation Priorities Matrix

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?

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

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.

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.

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**

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

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
$
$
$ $ $
$
$
$
$

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

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)

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

 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)

Ethicon - $12M – $28M Cap. Investment &
retain / retrain 30 jobs
 $300,000 max job creation (agreement not
yet executed)
 4 Year progressively decreasing tax rebate

San Angelo Development Corporation Orientation August 14, 2013

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San Angelo Development Corporation Orientation August 14, 2013