3 2011 ANNUAL REPORT Message to investorsThroughout 2011, Austin’s reputation as a dynamic leader in employment, education, innovation andquality of life reaffirmed what many of us have long known: the future for our region is limitless. Ourregional economic model is a proven success, and serves as the envy of many of our peer markets aroundthe country and, increasingly, around the world.The numbers tell the story. Austin continues to top countless national rankings for job growth, innovation,quality of life and more. In fact, Austin ranked as the 26th best economic recovery worldwide--the highestranking of all U.S. Cities, according to a global study by the Washington-based Brookings Institution. Theranking is based in part on job and income growth during the current economic recovery.Since 2004, Opportunity Austin worked to add an estimated 140,400 new jobs to the Central Texasworkforce, with a payroll increase of $7 billion. At Opportunity Austin, our mission is to build on thissuccess and sustain our momentum for strong business growth.We want to thank all of Opportunity Austin’s stakeholders for your continued support. Quite simply,Austin would not be what it is today without the commitment of our investors, supporters and partners inOpportunity Austin. Thank you for your investment in a prosperous regional economy for Central Texas. TIM CROWLEY BOBBY JENKINS 2011 Chair 2011 Chair Opportunity Austin Chamber of Commerce
5 2011 ANNUAL REPORT Economic DiversificationThe Austin area experienced tremendous economic vitality in 2011, with 51 businessesexpanding their offices, industrial production and job force. In addition, 35 new companieschose to relocate their businesses to our region from other parts of the country, an increasefrom 29 in 2010. This economic development occurred across myriad industries, including keygrowth industries such as biopharmaceutical, high tech, digital media and clean tech. Strategicrecruitment efforts will continue to further diversify Austin’s business portfolio, and secure theregion’s national reputation as a center of human capital and innovation. JObS 2011 4,096 RELOCATIONS BY INDUSTRY SECTOR JObS Clean Tech 3 Data Center 2 3,128 Digital Media 6 HQ/Regional Office 1 Medical Device/Bioscience 1 Semiconductor 1 JObS Software 6 547 Wireless 7 Other IT 3 Other 5 TOTAL 35 2009 2010 2011 17 29 35COMPANIES COMPANIES COMPANIES
82011 ANNUAL REPORT TECHNOLOGY PARTNERSHIPIn 2011 the Chamber continued the implementation ofthe Technology Partnership, created in late 2010 by theChamber board of directors to provide outreach to theregional technology community. The technology sectorincludes over 3,900 companies within a five-region areasurrounding Austin. In fact, tech companies accountfor 12% of the region’s total workforce and 25% of thearea payroll. Because such a significant percentage ofour workforce is engaged in technology, the businessretention and expansion work of the Chamber is nowaligned under the Technology Partnership.Last year, the Technology Partnership engaged over 100regional tech executives to provide input and directionto the strategies related to not only business attractionand retention but also company formation. Seventechnology special interest groups (SIGs) focused theinitiative in the following industry segments:Technology Manufacturing • Clean Technology • Life Science/Healthcare • Mobile • Gaming • Advertising Technology • SoftwareThroughout 2011, Austin saw its regional venture capital investments increase by 13% to over$1.1 billion. With 6,000 new technology jobs created, the region experienced the largest yearover year increase in the past decade.Of note in 2011 was the launch of the Startup Austin Texas web portal of the Startup AmericaPartnership. Austin was the first region in Texas to participate in this national web initiative.And to increase the visibility of regional technology startups seeking funding, the Chamberalso created the Austin A-List, an easy go-to source for tech startup investors.
9HIGH TECH EMPLOYMENT BASE EMPLOYMENT IN SELECTED INDUSTRIES AUSTIN MSA 2010 2011 High Tech Manufacturing 27,304 28,596 Computers and electronics 23,251 24,411 Semiconductors 11,599 12,638 Computers and peripherals wholesalers 19,776 20,868 High tech information and other IT 28,671 32,060 Engineering, R&D and labs/testing 19,712 19,997 TOTAL 95,463 101,521EMERGING TECHNOLOGY FUNDThe Chamber manages the Central Texas Regional Center of Innovation and Commercialization(RCIC) which is the local resource for the Texas Emerging Technology Fund. biotechnology & life sciences $26,864,000 23% advanced technology & manufacturing $13,000,000 47% 9% IT/computer technology $5,000,000 21% clean energy $12,300,00032 COMPANIES FUNDED SINCE 2006 TOTALING $57.16 MILLION6 MORE IN THE PIPELINE FOR AN ADDITIONAL $12.4 MILLION
10BUSINESS RETENTION & EXPANSIONBecause 80% of new jobs are created by existing businesses, retaining the companies thatare currently here and fostering their growth is a top strategic priority. Throughout 2011, theChamber’s Business Retention & Expansion team (BR&E) worked diligently to engage withCentral Texas executives and identify the top issues impacting regional businesses. The teamvisited over a thousand companies, and conducted extensive surveys with more than 300 ofthe top regional executives to discover their business needs. YR # REGIONAL 2010 / 1,071 / 10% DIFFERENCE COMPANY VISITS 2011 / 1,187 / YR # EXECUTIVE 2010 / 203 / 53% DIFFERENCE SURVEY MEETINGS 2011 / 312 / YR # ASSISTANCE 2010 / 400 / 53% DIFFERENCE REQUESTS TRACKED 2011 / 610 / | “AMERICA’S CLEAN-TECH HUB” | Time Magazine (international and US editions)
11EXECUTIVE SURVEYSTotal employees represented /// 84,779 More than 100 employees /// 81 (26%) Regional payroll represented /// $6.3 Billion Fewer than 100 employees) /// 225 (74%)TOP BUSINESS ISSUES TOP BUSINESS ISSUES(ALL INDUSTRIES) (BY INDUSTRY SEGMENT) % of employment % of companies CLEAN TECH1. RECRUITMENT PROBLEMS 1 Traffic Control 50% 2 Recruitment Problems 81% 3 Public Transportation2. AIR SERVICE SEMICONDUCTOR 50% 1 Recruitment Problems 48% 2 Air Service 3 Adverse Legislation3. TRAFFIC 27% IT/WIRELESS 44% 1 Recruitment Problems 2 Available Workforce 3 Air Service ADVANCED MANUFACTURING 1 Recruitment Problems 2 Public Transportation 3 Traffic Control NON TECH 1 Recruitment Problems 2 Adverse Legislation 3 Public Transportation BIO/HEALTHCARE 1 Adverse Legislation 2 Recruitment Problems 3 Business Climate Negative (Soft-landing issues)
122011 ANNUAL REPORT Talent & EducationOpportunity Austin’s groundbreaking talent pipeline initiatives are recognized as a nationalmodel by the U.S. Chamber of Commerce. Due to Opportunity Austin funding, the Chamberand 15 area school districts set a 70% direct-to-college enrollment goal for the Class of 2015, upfrom 62% for the Class of 2010. • The region’s first college enrollment initiative exceeded its first five-year goal to increase college enrollment from our region by 30% between 2006 and 2010. • he region’s Skillpoint College/Career Expo exposed 13,000 Central Texas high school T students to Austin careers and the post-secondary education they require. • The region’s 2011 Chamber Financial Aid Saturday events helped 2,000 families submit federal financial aid forms. Regional Q1 2011 FAFSA filings increased 102% since 2006; Class of 2011 financial aid is up $50 million over Class of 2006. • Austin ISD’s college/career readiness rate has increased from 38% to 55% from the Class of 2008 to the Class of 2010. • The region has the most sophisticated regional database (Central Texas Student Futures Project) to track individual high school, employment, military and post- secondary education data records in the United States. • The Austin Chamber, in partnership with local chambers of commerce, issued progress reports for the Austin, Del Valle, Eanes, Hays, Hutto, Lake Travis, Leander, Manor, Pflugerville, Round Rock, and San Marcos ISDs. These reports monitor progress and report out-year school district targets for direct college enrollment, college readiness, high school graduation and TAKS pass rates. • A task force of business and community leaders also produced an Austin Community College (ACC) progress report, detailing ACC’s accomplishments and identifying areas for growth, as well as addressing talent development needs specific to certain industries in Austin.
13“ he Austin Chamber of Commerce quarterbacks the strategic T provision of resources and support and leads sophisticated efforts to hold districts’ feet to the fire with the pioneering report card and a firm commitment to weighing in on political issues and questions of funding.” – “Partnership is a Two-Way Street: What it Takes to Help Drive School Reform,” U.S. Chamber Of Commerce, June 2011“ ny tax or bond election will first involve persuading the Austin A Chamber of Commerce.” – “A Mission to Communicate,” Austin Chronicle, November 2011“ he Greater Austin Chamber of Commerce, a powerhouse of T support when it comes to school board tax increase and bond elections….has repeatedly called for the district to balance its budget and fund academic programs in the five-year strategic plan.” – “Austin School Trustees to View Budget, Mull Fiscal Emergency Tonight,” Austin American-Statesman, February, 2011
14TOP20 | strongest performing metro areas | Brookings Institution
15 2011 ANNUAL REPORT Transportation InfrastructureTransportation and infrastructure remain top priorities for Central Texas, and the Chambercontinues to be a leading advocate for improving regional mobility.In 2011, Chamber board members were appointed to lead key initiatives, including SenatorWatson’s Mobility Improvement Priorities Task Force, the City’s 2012 Bond Election AdvisoryTask Force, and CAMPO’s Transit Working Group. Chamber leadership also facilitated dialogueto implement solutions for congested intersections such as 5th and 6th Streets at Lamar andParmer at Dessau.Visible progress was made with key mobility facilities in 2011, including the opening of theIH-35/Ben White interchange, SH-130 access to Cameron Road, and the Austin ExecutiveAirport. The Chamber advocated for bond packages that successfully passed in Travis Countyto fund road, drainage, bridge and bike/pedestrian improvements, as well as the acquisitionof parkland, green space and new recreational facilities. The State provided CTRMA with newoptions for financing tools, allowing for the potential to proceed more quickly with expresslane projects on Mopac and US 183 South.Another key infrastructure priority is the funding, development and construction of a top-tier four-year medical school associated with The University of Texas. Chamber leadership isactively involved with Senator Watson’s working group on this project, which would enable asubstantial expansion of the life sciences business sector in Central Texas and create a broadnew avenue of opportunity for private sector jobs.The Chamber supports a comprehensive strategy to plan for future water needs, includingconservation, increased use of reclaimed water and construction of a new Water TreatmentPlant 4. In 2011, following a report from the City Auditor, elected officials agreed that delayingthe project would be too costly, and Water Treatment Plant 4 will now move forward. At thestate level, the Texas Water Development Bonds Amendment (SJR 4) was passed, allowingincreased funding for statewide water infrastructure.
162011 ANNUAL REPORT Regional Partners OPPORTUNITY AUSTIN | A FIVE-COUNTY INITIATIVE FOR JOB CREATIONOpportunity Austin 2.0 works with regional partners to ensure the economic prosperity forCentral Texas through job growth and creation. The success of our region is based on theongoing collaboration with public and private business leaders throughout the five-county area. REGIONAL PARTNER INVESTORS INCLUDE: AUSTIN BASTROP CEDAR PARK ELGIN GEORGETOWN HUTTO JARRELL KYLE LEANDER LOCKHART PFLUGERVILLE ROUND ROCK SAN MARCOS TAYLOR
17 Opportunity Austin 2011 FinancialsINVESTOR RELATIONS | $76,837OPPORTUNITY FUND | $86,941 KEEPING GREATER AUSTIN GREAT | $176,901 BUSINESS RETENTION EXPANSION | $570,621 EDUCATION | $1,265,043 ECONOMIC DIVERSIFICATION | $1,362,373 2011 ACTUAL EXPENSES | $3,538,716
182011 ANNUAL REPORT BOARD OF DIRECTORSCHAIRMAN Amy Chronis Bill PowersTim Crowley Managing Partner // Central President // The UniversityPresident // Austin Community Texas Deloitte of Texas at AustinBanking Group - Frost Bank Don Kendrick Bob ReetzVICE CHAIRMAN Regional President - Central Texas // Partner // Haynes BooneKerry Hall Wells Fargo BankPresident // Texas Capital Bank Tim Taylor Trey Salinas Partner // Jackson Walker Partner // Martin SalinasTREASURER Public Affairs, Inc.Donnie Williams Donnie Williams President // Austin AreaPresident // Austin Area Rick Whiteley Sovereign BankSovereign Bank Partner // Oxford Commercial Terms ExpiringGeneral Counsel/ Darrell Windham December 31, 2013Assistant Secretary Partner // Fulbright Tim Taylor Jaworski, LLP Paul BuryPartner // Jackson Walker President // Bury+Partners Pike PowersPresident/Secretary Director Emeritus Volney CampbellMike Rollins Co-Managing Partner // Terms Expiring HPI Corporate ServicesPresident // Greater Austin December 31, 2012Chamber of Commerce Jon Foster Gary Farmer President CEO // St. David’sAustin Chamber Chairman President // Heritage Title Company Healthcare PartnershipBobby JenkinsPresident // ABC Home and Laura Gottesman Rob GoldingCommercial Services Owner // Gottesman Residential CEO // Live Oak – Gottesman, LLC Real EstateChamber Immediate Kerry HallPast Chair Tim Hendricks President // Texas Capital BankBarry Mayer Senior Vice President //President // Tokyo Electron Cousins Properties Rob HuttonUS Holdings, Inc. President // D.R. Horton Joe HoltTerms Expiring Chairman // Austin Region Bart MatheneyDecember 31, 2011 JPMorgan Chase Bank Principal // Aquila CommercialCharles Barnett Chad Marsh Pete WinsteadPresident and CEO // Managing Principal // Shareholder // Winstead,Seton Family of Hospitals Endeavor Real Estate Group Sechrest, Minick, PCTony Budet Nyle Maxwell Howard YancyPresident and CEO // President // Nyle Maxwell President // Zydeco DevelopmentUniversity Federal Credit Union of Austin, LLC
19 2011 ANNUAL REPORT Thank you to InvestorsLEAD INVESTORS | MINIMUM OF $20,000 PER YEAR3M Dynamic Systems, Inc. Professional Janitorial ServicesA Greater Austin Development Endeavor Real Estate Group Raba-Kistner Consultants, Inc.Company, Ltd. Forestar Real Estate Group, Inc. Riverside Resources Corp.AQUILA Commercial, LLC Freescale Semiconductor Samsung Austin SemiconductorArmbrust Brown, L.L.P. Frost Bank Scott, Douglass McConnico LLPATT Fulbright Jaworski L.L.P. Seton Family of HospitalsAustin American-Statesman Graves, Dougherty, Hearon Moody Simon Properties GroupAustin Commercial, LP Hardin Construction Company, LLC Smith, Robertson, Elliott, Glen,Austin Community College District Haynes and Boone, LLP Klein Douglas, LLPAustin Energy H-E-B Austin Regional Office Sovereign BankBaker Botts L.L.P. Hensel Phelps Construction Co. St. David’s HealthcareBank of America Heritage Title Company of Austin, Inc. Stratus Properties, Inc.BBVA Compass Hill Wilkinson Stream Realty Partners - Austin LPBenchmark Land Development, Inc./ HNTB Corporation Temple-InlandPlum Creek Texas Gas Service HPI Real Estate Services and Invest-Brown McCarroll, L.L.P. ments Texas State University-San MarcosBury+Partners, Inc. Humana, Inc. Thomas Properties Group/Capital Metropolitan Jackson Walker L.L.P. Four Points CentreTransportation Authority JE Dunn Construction Time Warner CableCentral Texas Regional Mobility Jones Lang LaSalle United Heritage Credit UnionAuthority (CTRMA) University Federal Credit Union JPMorgan Chase Co.City of Austin / Austin Energy University of Texas at Austin Live Oak - GottesmanCousins Properties, Inc. Wells Fargo Bank Locke Lord Bissell Liddell LLPD.R. Horton Homes, Inc. White Construction Company nFusion GroupData Foundry Winstead PC Oxford CommercialDimensional Fund Advisors Zydeco Development Pape-Dawson Engineers, Inc.DPR Construction, Inc. Peter LamyDuBois Bryant Campbell, LLPINVESTORS | LESS THAN $100,000 OVER FIVE YEARS100 Congress Office Building Amelia Bullock Realtors, Inc. Apartment Realty Advisors3 Point Partners American Bank of Texas, N.A. Apex Global PartnersA+ Federal Credit Union American Constructors Applied Materials, Inc.ABC Home Commercial Services American Ventus Energy Ardent Residential, L.P.Airco Mechanical, Ltd. Amplify Federal Credit Union Aspen Growth Properties, Inc.
20Atchley Associates, LLP City of Georgetown - Economic Ernst Young, LLPAtkins North America, Inc. Development Department Facility Solutions GroupAtlantic Trust City of Kyle Farmers Insurance Group of CompaniesAustin Business Journal City of Leander Faske Lay Co., LLPAustin Coatings, Inc. Clark, Thomas Winters, First Citizens Bank A Professional Corp.Austin Commercial Real Estate First State Bank Central TexasSociety, Inc. Clean Scapes, LP Flieller, Kruger Skelton, LLPAustin Hotel Lodging Association Clifton Gunderson LLP Flynn Construction, Inc.Austin Manor Growth Organization Clinical Pathology Laboratories, Inc. Focus Strategies Investment BankingAustin Power Lunch CLS Partners Four Seasons Hotel AustinAustin Regional Clinic, PA/ Coleman Associates Fox Service CompanyCovenant Mgmt. Systems Comerica Bank Frost Insurance AgencyAustin Telco Federal Credit Union CompassLearning Gallagher Benefit Services, Inc.Austin Ventures, L.P. Concordia University Texas GenslerBalcones Resources Convio, Inc. Glass Company, PCBall - Peoples Coors-Shiner-Corona Gottesman Residential Real EstateBank of Texas CTA Architects Engineers Gracy Title, a Stewart CompanyBarshop Oles Company CWS Capital Partners Grandbridge Real Estate Capital, LLCBastrop Economic Development CWS Corporate HousingCorporation Greater San Marcos Partnership Cypress Real Estate AdvisorsBeck Group, The Green Bank Danze and Davis ArchitectsBerns Commercial Properties Greystar Real Estate Partners, LLC DH RoofingBlueWater Systems Group Solutions RJW David Petrick Company, Inc.BMC Software Grubb Ellis Co. David Weekley HomesBracewell Giuliani LLP GSC Architects Day Cable CompanyBRANDT GSDM Idea City LLC DCA Construction, LPBraun Butler Construction Haegelin Construction Co., Ltd. Delaware North CompaniesBroaddus Associates Hahn, Texas Deloitte, LLPBuena Vista Foundation Harden Healthcare, LLC Development 2000, Inc.Burt-Watts Industries, Inc. Harvey-Cleary Builders Diann CowlingCapital City Partners Haynes Whaley Associates, Inc. DLA Piper US LLPCapitol Anesthesiology Association HDR Engineering, Inc. Dominion AdvisorsCapitol Market Research, Inc. HealthCare Facilities Development Don Hewlett Chevrolet-Buick Inc. CorporationCappello Group, Inc. Don Martin Public Affairs Heldenfels Enterprises, Inc.Carollo Engineers Door Number 3 Hester Capital Management, LLCCarr, Riggs Ingram, LLC Doucet Associates, Inc. Higginbotham Associates, Inc.Catapult Systems, Inc. Drenner Golden Stuart Wolff, LLP Hill Country Electric SupplyCathy Coneway Duncan Commercial, LLC Hillhouse Realty, Inc.CB Richard Ellis Durbin Bennett Peterson Private Hilton AustinCedar Park Economic Development Wealth Management, LLPCorporation Historic Norwood Tower Eckert Insurance Group, Inc.Cencor Realty Services/ HMG Associates, Inc. Elgin Economic DevelopmentThe Weitzman Group/Cencor Urban Corporation Holtzman Partners LLPCentral Texas Angel Network Elizabeth Christian Associates Home Builders Association ofCCIM Central Texas Public Relations, Inc. Greater AustinChampion Partners Ltd. Ellis Salazar Garage and Body Shop Horizon Bank, SSBChristianson Air Conditioning Engelking Communications LLC Howdy Honda Plumbing
21Huston-Tillotson University Morrison Head, LLP STG DesignHutto Economic Development Multimedia Games, Inc. Strait Music CompanyCorporation Munday Enterprises Studio 8 Architects, Inc.Hyatt Regency Austin NAI REOC Austin Summit CommercialImagecraft Exhibits NorthMarq Capital, Inc. SVTC Technologies, Inc.Independence Title Company Nyle Maxwell of Austin, LLC T. Stacy Associates, Inc.International Bank of Commerce O’Connell Robertson Taylor Commercial Real EstateIntersil Corporation Oden Hughes LLC Taylor Economic DevelopmentIntertech Flooring Padgett, Stratemann Co., L.L.P. CorporationIronwood Real Estate Park Central TDIndustriesJacobs Engineering Group, Inc. Patten Law Firm Teeple Partners, Inc.Jarrell Economic Development Perficient, Inc. Terracon Consultants, Inc.Corporation Terry McDaniel Company Pflugerville CommunityJeff Stewart, CCIM Development Corporation Texas Capital Bank, N.A.Jerald Winetroub Company PlainsCapital Bank - Congress Texas DPS Credit UnionJim Cotton PMB Helin Donovan, LLP Texas Enterprises, Inc.Jimmy Evans Company Porter Company Texas Health Credit UnionJoe Bland Construction, L.P. Powell, Ebert Smolik, PC Texas Realty Capital, LPJohn C. Lewis Company PricewaterhouseCoopers, LLP Thomas Graphics, Inc.Journeyman Construction, Inc Prime Strategies, Inc. Thompson Knight LLPKeller Williams Realty Prosperity Bank Time Insurance AgencyKennedy Wilson, Inc. Ranger Excavating, L.P. Tokyo Electron U.S. Holdings, Inc.KPMG LLP Reznick Group, PC - Austin Office Tom TerkelLarry Peel Company Rifeline, LLC Transwestern Commercial ServicesLee Tilford Agency River Place Corporate Park Treaty Oak BankLexus of Austin RKB Contractors, Inc. Trimbuilt Construction, Inc.Lila Nelson Beard Rockford Business Interiors Trinity Real Estate Finance, Inc.Lockhart Economic Development Round Rock Economic United Commercial RealtyCorporation (LEDC) Development Partnership Urbanspace Realtors, LLPLongaro Clarke, Inc. SACHEM, Inc. vcfo, Inc.Lott Brothers Construction Saunders, Norval, Nichols, Atkins,Company, Ltd. Versata, Inc. L.L.P.Luminex Corp Walker Engineering, Inc. Schlosser Development CorporationMartine Properties, Inc. Walt Penn Schmidt Electric Company, LPMatt Mathias Company Walters Southwest Silverback AcquisitionsMaxwell Locke Ritter LLP Weaver, LLP SpawGlass Contractors, Inc.McGarrah/Jessee L.P. Wheeler Fairman Kelley SpawMaxwell Company a BalfourMcGinnis, Lochridge Kilgore Beatty Company Workman Commercial Construction Services, Ltd.McLean and Howard LLP Spear Street Capital Workplace ResourceMeador Jones, LLP St. Croix Capital Corporation Wortham Insurance Risk ManagementMHBT Inc. Staats Falkenberg Partners, Inc. Zapalac/Reed ConstructionMoore Associates, Inc. Steve Hall Company, L.P.Moreland Properties, Inc. Steve T. Matthews Company OPPORTUNITY AUSTIN 2011
Opportunity Austin535 East 5th streetAustin, Texas 78701 512.478.9383