CORYELL COUNTY ECONOMIC DEVELOPMENT & MARKETING PLAN

CORYELL COUNTY ECONOMIC DEVELOPMENT & MARKETING PLAN SUSAN YANOFSKY CONSULTING IN ASSOCIATION WITH INVESTMENT CONSULTING ASSOCIATES

FALL 2015

CONTENTS Executive Summary................................................................................................................................................ 5 Marketing....................................................................................................................................................... 9 Action Plans .......................................................................................................................................................... 12 Benchmarking the County................................................................................................................................... 18

Performance Measurement........................................................................................................................... 19

Demographics.............................................................................................................................................. 20

Business Environment................................................................................................................................... 20

Growing Coryell County...................................................................................................................................... 22

Overview...................................................................................................................................................... 22

Current Economic Base and Dynamics........................................................................................................... 23

Location Quotient Findings........................................................................................................................... 25

Coryell Shift Share Analysis........................................................................................................................... 28

Reverse Site Selection Screening Model......................................................................................................... 32

Target Industries and Match Profiles.............................................................................................................. 38

Target Niches................................................................................................................................................ 46

Business Development Incentives................................................................................................................... 50

Site Readiness Analysis.................................................................................................................................. 53

Appendix A: Benchmarking, Data Addendum.................................................................................................. 58 Appendix B: Reverse Site Selection Location Screening Model Database...................................................... 63 Appendix C: Economic Development Organizations........................................................................................ 66 Appendix D: Summary of Interviews................................................................................................................. 69 Note on the Structure of This Report This report is intended to serve both casual readers and those who desire a more comprehensive review of the analysis performed and the proposed strategy and plan. The body of the report contains the action plan and valuable data on the County’s competitive position. The appendices provide additional analyses. Altogether, this information supports the overall action plan in providing Coryell County with a comprehensive starting point for enhancing and growing the economy. 1

POTENTIAL With directed investment in transportation and workforce, Coryell County has the potential to grow beyond its current economic base of Fort Hood and the Gatesville prison complex.

2

EXECUTIVE SUMMARY

Coryell long-term economic growth: attracting new businesses and supporting existing businesses. The foundation of Coryell County’s economy lies both in its natural resources and in the Fort Hood military installation which occupies a third of the land area and provides employment for a third of its residents. The dominance of Fort Hood, and secondarily the state prison network, located in Gatesville, has not lessened the need for stronger, broader industry mix and greater employment opportunities in the County. Together the County Commissioners and the County Economic Development Board recognize this need to diversify the economy to create greater opportunities for residents and to draw in new investment. There is untapped potential within the County. Coryell has a growing, younger population, and a labor force enhanced by the soldiers exiting Fort Hood, both of whom are better educated than the state average. Coryell has quality educational and technical training opportunities for residents and business needs. Development costs are low and access to transportation corridors is good. The aim of this plan is to harness the favorable demographics and fortunate geography. There is a recognized need for directed efforts to attract new businesses, to enhance the County’s image and foster long-term growth. We have envisioned the County as a hub for defense, agricultural, logistical and renewable energy businesses within the Austin-Waco-Dallas/Fort Worth corridor. Specifically, we have identified seven areas the County can leverage existing assets and the existing knowledge base to make the area attractive to these industries: ++ AGRICULTURE, CATTLE, LIVESTOCK FOOD PRODUCTION ++ EDUCATION ++ LIGHT MANUFACTURING ++ LOGISTICS SERVICES ++ APPROPRIATE RETAIL ++ RENEWABLE ENERGY PRODUCTS ++ MILITARY DEFENSE INDUSTRIES 5

Using regional analytical techniques, we established the County’s strengths and competitive advantages to attract and grow each industry. Efforts in attraction will also have the effect of enhancing the existing local economy. For instance, increasing job training in “soft skills” will benefit existing businesses and increase the ready labor pool. Coryell County’s current economic development efforts are not highly coordinated. Efforts to improve investment and growth are conducted with little coordination between economic development entities, businesses and municipalities. This shotgun approach to economic development has led to an unfocused image. Before fully implementing the recommendations contained within this report, the County must consider how economic development functions will be managed and the roles, coordination and responsibilities of the many entities. Creating a dedicated central organization, whether it be a formal organization, partnerships or an alliance, will help strengthen the effectiveness of programs which help grow the economy.

6

STRENGTHS AND OPPORTUNITIES

Coryell County can leverage many strengths to enhance its overall economic development success:

+ Generally favorable demographics, including steady positive population growth, growth in working age population, and a young median age

+ Significant housing growth as well as slightly above average median household and disposable income

+ Generally stable employment, even during the recent recession

+ A strong existing employment base in retail trade and service related industries as well as high employment for healthcare practitioners, technical occupations, food preparation and serving related occupations

+ A strong underutilized asset of veterans

+ Educational and training assets of Central Texas College and Texas A&M Central Texas, which do a good job of not only offering educational opportunities for students but also providing opportunities for real-world job training

+ Highly competitive wage rates for healthcare support functions and production occupations

+ High percentage of the population that complete high school (low dropout rate)

+ Good logistics opportunities with drivable access to close to half a million people within 45 minutes

The fundamental aim of this plan is to leverage and capitalize on existing assets and address the weaknesses in the economy to develop a more diversified economy.

+ Highly favorable corporate tax climate

exiting the military from Fort Hood who are in the Coryell area

7

RECOMMENDATIONS

The following are the recommendations for the strategic plan for Coryell County: The Economic Development and Marketing Plan contains an overview of the research and analysis of the existing business environment, competitive position of the County and a realistic action plan. The action plan focuses on the following objectives: 1. Improve the coordination of the economic development program of municipalities, economic development organizations, the County and other partners to be able to respond effectively to site selection and business inquiries. Bridge the communication and collaboration gaps that exist within the County’s communities and within the region. 2. Encourage business retention, expansion and attraction through improved information and clear marketing, through a commitment to effective business assistance and incentive programs which provide a return on investment for the County, and by becoming a place that is recognized for simple, swift development permits and approvals which foster high growth. 3. Create a workforce program, collaboratively, among businesses, government and educational entities that focuses on the needs of existing employers. 4. Improve the image of the County’s businesses and economic development programs, both within and outside the County. Shift perceptions of workforce skills through communicating County’s assets and programs. 5. Support the mission of Fort Hood and coordinate County’s economic development efforts to avoid encroachment and enhance complementary activities. 6. Improve the quality of place for people who work, live and play in Coryell County. Ensure that there is appropriate planning and investment in infrastructure to support development and quality of life. Each of these recommendations is supported with specific, realistic and actionable steps that are suited to the culture and resources of Coryell County. These action steps form the basis of economic efforts over the next five years. The basis for these actions has been the environmental and quantitative indicators that we have collected and analyzed. The strategies in the action plan comprise a rich program to direct and grow the economy. 8

Marketing Who should conduct the marketing effort? Crafting an effective plan is done by laying a well-established foundation. The County’s first step is to create a single organization with delineated responsibilities and funding mechanisms in place. This is discussed more fully in Appendix C, Economic Development Organizations. Presently, there are disparate efforts in the County, and the first step is to agree on one entity to market the County. The County and its communities are too small to have separate marketing programs and be effective. Follow-through on leads is the vital step in marketing the County. Business leads currently come through several channels and are rarely coordinated. By creating a single formal structure and partnerships, every lead can be followed. Lead notifications can then be circulated to all entities within the County, ensuring that no one is left out. Even if the County is not selected for that one opportunity, the professionalism and responsiveness of the region will generate the right impression of the area. Once an economic development organization has been established then the coordination of materials, messages and information can begin. Who is the audience? Being able to effectively deliver your message depends on getting the attention of the right audience. According to a survey by Development Counselors International (DCI) of corporate executives with site selection responsibilities, real estate brokers are the most likely professional to be hired to assist in their location search. The survey also noted that most corporate respondents (53%) do not outsource their location decisions. Therefore, Coryell’s marketing will be most effective when directed at both the corporate audience and real estate professionals. 9

The DCI research also aggregated information on where these executives and professionals get information about an area. For these executives, their perceptions of Coryell’s opportunities will be influenced by three activities: dialogue with industry peers, articles in newspapers and magazines, and rankings/surveys. A secondary audience which can connect the private and public sector are regional organizations and universities. These partners provide access to larger networks and provide a low cost way to enhance market awareness. Coryell’s participation and involvement in these groups will heighten awareness of the County. This includes groups such as the Central Texas Council of Governments, Central Texas College, Texas A&M UniversityCentral Texas, etc. What information is most valuable? Websites continue to play a central role in a location search. In designing a website the most useful features were incentive information, workforce statistics, demographic information, data base of available sites, comparison of competing locations and a list of leading local employers. Additionally we suggest bringing together existing businesses and collecting their stories and impressions of the County. Their success can create buzz and greater support for the region. This has the additional effect of retaining businesses. Issues an existing business might have can be addressed through this process. Existing businesses generate much of the job growth in a region at a low investment by economic development officials. These businesses already have invested in the area and in the labor force. We have also outlined in the Action Plan directly contacting growing businesses in the target industries to inform them about the County. The challenge is this is the most expensive marketing efforts outlined and has a low success rate. Nonetheless, creating an opportunity to present the County’s opportunities can increase visibility and site selection notice. 10

What are the techniques? We have identified seven target industries to attract and four target niche markets to grow. These differing targets can be best reached through a combination of communications and targeted electronic, print, and internet media. Changing the low market awareness of the County involves accurately representing the best of the County. Messages must be consistent across all economic development entities. Communication must be frequent and relevant to have an impact. Our plan lists actions which are low cost techniques that can be valuable in reaching targets, such as: • Continually provide prospects with information and communication such as newsletters • Create an experience or event such as on-site events or business tours • Public relations marketing: with positive public perception (e.g., press release, editorials, accolades) • Emphasize business retention through relationship marketing – focus on interactions and partnerships • Word-of-mouth marketing and communication (Niche markets in particular depend on these relationship webs.) Altogether the County and its communities can develop successful marketing program which focuses on the young quality workforce, low cost available land, low labor cost, good quality of life and good transportation access. The challenge is to work together and understand that the marketing effort is about external impressions and information. Cultivating prospects, connections and groups takes time and committed partners.

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ECONOMIC DEVELOPMENT

RECOMMENDED SHORT-TERM ACTIONS AND MARKETING PLAN 1 to 2 years

12

Action

Primary Responsibility

Secondary Responsibility

Cost

Create a County-wide Economic Development Organization (EDO).

County EDB

Commissioners Court, County Judge, Gatesville EDC, Evant MDD, Copperas Cove EDC, Municipal Officials from Copperas Cove, Gatesville and Evant

$ - $$$ See Appendix C

Create a single point of contact for leads and information.

County EDB, Gatesville EDC, Copperas Cove EDC, Evant MDD and municipal officials

Staff in all gov't.

N/A

Engage in Economic development team building efforts to develop coordination and collaboration habits.

County EDB and facilitating Consultant

Establish funding and staff for County-wide EDO which will act as coordinating and marketing entity for County.

County EDB

Create ready facts on websites (Salaries, education rates, unemployment, crime, quality of life, climate, population growth, working age population growth, and labor force growth, state tax comparisons, etc.)

All

N/A

Have a contact button on website once single point of contact is in place.

All

N/A

Participate fully in Joint Land Use Study with Fort Hood.

All

N/A

Link to partner websites. Include regional partners, educational institutions, and selected state resources.

Coryell County

Invite Coryell’s Businesses to participate in Fort Hood’s corporate 101 program.

County EDB

N/A

Meet with broadband providers regarding expansion plans.

County EDB

N/A

Engage in planning for rail head with Fort Hood, businesses.

County Judge, Fort Hood Garrison Commander

$$

All entities

EDC's , CTCOG, etc.

County EDB, Municipalities

$$$$

N/A

N/A


RECOMMENDED SHORT-TERM ACTIONS AND MARKETING PLAN (CONT’D) 1 to 2 years Action



Cost

Advocate for designation of US 190 as an I-95 Spur.

County Judge, Commissioners Court

County EDB

N/A

Support geo-thermal proof of concept, public-private partnership.


County EDB

$

Join Association of Defense Communities.

County Judge

Cities of Copperas Cove and Gatesville

$

Identify and invite Texas vintners to meet with potential growers.

County EDB, Agri-life Ext agent

N/A

Develop a list of accolades and rankings for County to obtain.

County EDB

N/A

Coordinate with businesses on common skill gaps in workforce.

County EDB, Central Texas Workforce

County businesses

N/A

Participate in existing recreational marketing activities such as “Great Texas Wildlife Trails” and USA Cycling.

County EDB

Landowners, recreational businesses

N/A

Identify business success stories for website and media.

County EDB

Chambers and EDCs

N/A

Host networking events for real estate and business professionals.

County EDB

Regional real estate professionals

$

Hold County Economic Development Board site visits to local businesses.

County EDB

N/A

Create press release of Economic Development and Marketing Plan.

County EDB, County Judge

N/A

Create a list of media and industry contacts for targets.

County EDB

N/A

Consider hiring grant writer for federal and state grants available to communities.

County EDB, Commissioners Court, County Judge

$$

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RECOMMENDED NEAR-TERM ACTIONS AND MARKETING PLAN 1 to 2 years Action



Adopt fast track permitting where appropriate.

Municipalities

Ensure incentives are consistent, clear criteria and goals across all County organizations and political entities.

County EDB, Gatesville EDC, Copperas Cove EDC, Evant MDD and municipal officials

Create target industry pages on website with relevant information for each target.

County EDB or County EDO

N/A

Develop a publicity campaign to reach residents with information on economic development impact.

County EDO or consultant

$$

Develop business update newsletter delivered electronically.


N/A

Develop a logo for new economic development organization and brand identity.


$$-$$$

Create an internal economic development handbook with information on policies, regulations, personnel.

Coryell EDO or consultant

0-$$

Work with are Small Business Administration financial institutions to create capital packages for expanding businesses.

County EDO or EDB and financial institutions

N/A

Create a reinvestment zone within the County near the SpaceX facility.


N/A

Create clear criteria for approval of projects in reinvestment zone.


N/A

Include career planning links on economic development websites.

County EDO or EDB and ISDs

N/A

Coordinate and have on website available listings and ensure consistent information on each property.

County EDO or EDB

N/A

Engage unincorporated areas in a planning effort on economic development and land use.


N/A Staff in all gov't.

Cities of Copperas Cove and Gatesville

Create inventory of infrastructure such as utilities, water and sewer, County Judge, Commissioners broadband, etc. Court and Municipalities

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Cost

N/A

$ N/A

Identify potential partnerships with area processors for value-added County EDB and Agri-Life facilities and transportation. Extension

County businesses

N/A

Offer business assistance to local veterinary hospitals/clinics and technician programs to expand.

County businesses

N/A

County EDB and Agri-Life Extension


RECOMMENDED NEAR-TERM ACTIONS AND MARKETING PLAN (CONT’D) 1 to 2 years Action



Cost

Aggressively pursue grants to expand broadband access.

County EDB

Pursue creation of off-channel reservoir identified in Region G planning.


Align high school career pathways, including trade, with current and future needs.

County EDB and ISD and Workforce Commission

N/A

Create and or expand internship program for County high school students.

County EDO and ISDs

$

Facilitate healthcare and businesses improved workplace drug testing, treatment and rehabilitation programs.

County EDO, Healthcare Orgs.

Work with Agri-life Extension and community college on offering a large animal care course.


N/A

Develop an incentive packages of local, state and USDA incentives and assistance to encourage value-added agriculture, wine grapes and organics.


N/A

Create marketing materials such as “Advantages of Coryell County” brochure.

County EDO and consultant

$$

Create a peer to peer business group aligned by shared needs.

County EDO or EDB

N/A

Work with landowners with suitable property for development.

County EDO or EDB

N/A

Attend local/regional industry events.

County Judge or County EDO or EDB

0-$

Develop in-County workshops with workforce and educational partners on basic skills.

County EDO or EDB

$

Create a wish list of industry events County could host.

County EDO or EDB

N/A

Develop a calendar of public relations activities based on County events and activities (including policy changes).

County EDO or EDB

N/A

N/A

Regional real estate professionals

County businesses

$

N/A

15


RECOMMENDED LONG-TERM ACTIONS AND MARKETING PLAN 4 to 6 years

16

Action



Improve image of gateways to County and community with signage and landscaping.

Municipalities, County EDC, Chambers, Coryell EDB, Fort Hood and business Commissioners, new EDO staff sponsors

$$$

Create community-lead design guidelines for facades and signs in downtown areas.

Municipalities, EDCs

$

Plan for increasing recreational amenities valued by workforce such as bike paths, greenways and trails.

Municipalities, County Commissioners

Ensure water and sewer planning is in place to address future commercial expansion.

Municipalities, County Commissioners

Work with municipalities on planning and permitting of recreational facilities.

Municipalities, new EDO staff

N/A

Post information on permitting (including fast track) on websites.

New EDO staff, EDCs, Municipalities

N/A

Enable and encourage online permit filing (including from mobile devices).

New EDO staff, EDCs, Municipalities

N/A

Create a spotlight video of County for website/ mobile.

New EDO staff, County EDB

$$

Landowners

Cost

$$ New EDO staff

N/A


RECOMMENDED ONGOING ACTIONS AND MARKETING PLAN Action



Cost

Participate in regional organizations such CTCOG and Central Texas County EDB, County Judge CDC.

N/A

Routinely communicate and coordinate with Fort Hood and North Fort Hood on workforce and infrastructure.

County EDO, County Judge

N/A

Periodically review best practices of competitors for new programs, targets, websites, etc.

County EDO

N/A

Continue to support roadway improvements which improve access. County Judge, Commissioners,

N/A

Monitor internet and media for references for accuracy and create response plan.

County EDO

County EDB

N/A

Update website routinely with revised statistics and news.

County EDO staff

N/A

Use web analytics to increase awareness of website.

County EDO staff

N/A

Convene economic development summit and workshops, at least annually.

County EDO staff, County EDB EDC, CTCOG and municipalities

$

Continue to generate press releases on such items as new businesses, initiatives and data.

County EDO staff, County EDB

N/A

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BENCHMARKING THE COUNTY Coryell County is poised to become competitive

Nevertheless, the economy of Coryell has been

within the region and within the state of Texas

flat and more than half of employed residents are

to become a place where business will find it

employed outside the County. The recent history

advantageous to grow. The core analysis, the

of job creation for the area reflects the reliance on

benchmarking, of the strength, weaknesses, threats

retail and lower skill service jobs. The County and

and opportunities, not only serve as a guide on how

the region have a hidden labor supply in the soldiers

to market the community but also how to position

exiting Fort Hood. Because of the methodology

the County as a whole. Coryell County’s economy is

used in US Census and state data, this labor pool

currently in a cycle of increasing retail sales, an up

is overlooked in County profiles. Daylighting the

tick in property values and higher personal income

numbers of those exiting will create an accurate

contrasted with comparatively low higher educational

picture of the available labor force. Coryell can

attainment, flat wage growth and an overwhelming

increase its competitiveness by highlighting this flow

dependence on government employers.

of labor force from Fort Hood.

Residents and Fort Hood personnel have access to the

The County has supported Fort Hood and its mission.

two year training institution of Central Texas College

While the military installation has been the sole driver

and to Texas A & M University, Central Texas. The

of the economy, control over budget and mission

County can boast of having high school graduation

is outside of local or regional control. The spin-off

rates which exceed the state rates but its post

employment and wealth created for the area from

graduate education levels are low.

the activities have been limited to housing and lowpaying service jobs. The County and Fort Hood have

The area is conveniently located within a ninety

an opportunity to ensure that any economic growth

minute driving distance to Austin Texas, one of the

is compatible with and does not encroach on the

fastest growing areas of our nation. Travel into and

mission of the installation. The County can create

around the County is convenient and uncongested

opportunities that expand beyond Fort Hood yet will

with easy access to I-35. The County’s highways

support the retired or former soldiers from Fort Hood

include: US Highway, 190; US84; and US218; and

who have established strong ties to the County. The

State Highway 36.

rural nature of the County and relative availability of lands ensures compatible uses between Fort Hood, existing businesses, ranchers and industry growth.

18

The following section describes the drivers of the County’s

• A greater proportion of Coryell’s population is

economy; where it is leading and where it is lagging.

employed than in recent years. Its employment-

The findings presented here combine quantitative data

population ratio is 0.71. This measure of the

with qualitative data gathered from conversations and

marketplace reflects the proportion of people

interviews with stakeholders in the County.

working. Coryell’s ratio is above the US average of .70 and in indicator of the region’s ability to

The Data Addendum Appendix A provides overall

create jobs.

statistics on Coryell’s economy. • Copperas Cove and Gatesville have most of the

Performance Measurement

County’s businesses overall, and all manufacturing

• Workforce skills are perceived as lacking and post

is located in Gatesville.

high school educational attainment is low. This is a concern for many industries. The extent that

• Existing companies are not receiving focused

education and training initiatives can be increased

attention from economic development entities

will be vital to an effective economic development

and have limited engagement in workforce

strategy

programs and in the school systems. Addressing this gap is important to future economic

• There is a general lack of high paying jobs

development in Coryell County.

and industry diversity in the County. Small entrepreneurs help increase diversity, but the

• Incentives and taxes are not strongly

number of jobs created by these businesses is

differentiated between communities and regions

small and the County lacks capital access.

in Texas. Strategies that focus on the County’s attributes and defined strengths will be more

• Fort Hood plays a central role in the economy,

successful in the long-term.

responsible for direct employment of close to 60,000 people in the greater region. Coryell County is comfortable with this economic base and economic strategies that complement this base and create some differential strengths will develop a more robust economy. 19

Demographics • The County is generally rural, with a correspondingly low density and dispersed residential pattern. Future economic development strategies must fit within this culture, its resources and abilities. • Agriculture, the County’s largest land use, is a longstanding and sustaining part of the County’s economy. The agricultural economy is interwoven into much of the activities of the County. • Population growth is flat, which on its own is not concerning. Population growth is not necessarily

private sector entities prefer better access to skilled employees and infrastructure (road, water, internet, etc.). Broadband, like much of central and west central areas of Texas, is limited with better access in Copperas Cove than anywhere else in the County. • The County’s inexpensive land and building costs are linked to the distance from the interstate. This is an opportunity for operations that require large footprints where direct interstate access is less important.

Business Environment • There is broad consensus within the County on

directly linked to economic growth. Coryell’s

the value of economic development, but there

population count from the 2010 US Census excludes

is less agreement on the structure and role of

a sizable number of soldiers who were residents in

entities within the County to achieve economic

the County but deployed in Iraq and Afghanistan.

development goals.

• The quality and amount of infrastructure

• There is a communication and collaboration gap

inventory and investment are mixed. Cities have

between Copperas Cove, Gatesville and other

average to adequate infrastructure in water and

communities and entities in the region as well as

sewer, yet have not made a commitment to long-

with the business community. While the County

term improvement planning. Electric and Gas are

has worked with both Copperas Cove and

good and generally capable of meeting industry

Gatesville to encourage economic development,

needs. The access to water supply is tenuous and

there is an absence of a regional vision. Without

the network of suppliers with the ability to serve

formalization of intergovernmental cooperation,

growing needs is questionable.

economic development efforts in both the County and city will be stymied.

• The County’s rural area is generally unsuitable for most industrial growth in the near term as the 20

• The business community generally perceives government throughout the County as helpful. Collaboration is high regarding Fort Hood. Yet, there is no single-point-of-contact for economic inquiries or assistance in the area, and communication is not routinely shared between communities. Effective strategies for both cities and the County will depend on communication, shared information, and a cohesive economic development plan. • The County and local governments have a steady political system. The County is governed by the County Judge and Commissioner’s Court. They are actively engaged in the governance of the County, and have a deep knowledge of the County and an emerging vision for the economic growth of the region. The municipalities have a Council-Manager form of government. Copperas Cove, the County’s largest city, has a long-serving city manager while the County seat of Gatesville has a newly appointed city manager. Prior to his appointment, the Gatesville manager served as an executive director of the Heart of Defense Alliance and has and strong knowledge of Fort Hood and its needs. While all the city councils are engaged and in the process of governance, there is not a shared vision of economic growth within the communities. This is reflected in the recent questions that have been raised by the Copperas Cove city council regarding the budget and leadership of the economic development corporation. 21

GROWING CORYELL COUNTY Target industries are: • Agriculture, cattle, livestock food production • Education (college, technical skills - provide onsite training with company’s equipment) • Light manufacturing (including trailers) • Logistics services • Appropriate retail (high quality or anchor stores)

Overview We have provided an understanding of where the County is now and what it has. This section presents the many possibilities to grow Coryell County through business attraction and retention as well as the incentives that can assist these efforts. Specifically, we have included the target industry profiles and an analysis of niche markets. Coryell’s low unemployment, access to a large labor force and low costs make it well placed to develop opportunities for growth. Also included are the background analyses using ICA’s Reverse Site Selection Screening Model, Location Quotient and Shift Share analysis as well as the potential incentives that can be used to be competitive in attracting new industry. This competitive assessment and the data profile contained in the models as well as the bench marking analysis have informed our recommendations and Action Plan. We believe that the targets identified meet the goals of the County and are a priority and represent the best return on investment. 22

• Renewable energy products • Military Defense Industry Our target industry profiles identify the business areas where Coryell is best suited because of workforce, transportation, and resources and other attributes. The target industries are the predominate element of the business attraction strategy for the region. A secondary element is the development of niche markets, “Niche markets” are complementary to predominant target industry markets, and diversify the region’s economic base by creating a tier of secondary industries that generate significant revenue, but not at the scale of the predominant markets. The following are the four niche markets we have identified: • Viniculture, specifically the cultivation of grapes for wine • Outdoor recreation, both facilities and retail • Value-added agriculture and livestock, both growth and production • Large-animal veterinary services

In this section we have looked at the County and

national averages for each industry. Comparison of

understood what it has to offer, what makes it special

the share of an industries employment to its share of

and how to leverage those markets. Specifically, we

employment in Coryell is the location quotient. That

have conducted an analysis of the current economic

is, a LQ is used to compare the uniqueness of Coryell

base and its dynamics; conducted a competitive

compared to the nation, industries that have a larger

assessment; identified target industries; and,

share of employment than they share in the nation.

considered the appropriate use of incentives.

This uniqueness is indicative of industries which bring money into the County. We are interested in

Current Economic Base and Dynamics

identifying these industries with high LQ and high

As we saw in the Benchmarking section, Coryell

economy, not simply because of the jobs but because

has strong public sector employment in a largely

they provide a multiplier effect for the region.

employment because they are the drivers of the

rural area with inexpensive building cost and low unemployment. This has provided a snapshot of the

The industries that have high LQ are the base

economy on its own. In this section we expand on

employers for a region. This is best illustrated by

the understanding the economic picture to include

the example of the region’s largest economic base,

Coryell’s national standing with specific industries, its

Fort Hood. This military installation provides direct

standing among competing geographies and defining

employment of nearly 60,000. Although funded

its employment trends and opportunities. We have

through public monies, Fort Hood is the economic

used three analytic tools: the location quotient ratio

base for the County and the region. This is reflected

(LQ); shift-share analysis; and reverse site selection

in the public sector LQ of over 6, which means

analysis. The outcome of these analyses is a greater

there are six times the number of public sector jobs

understanding of the direction, resources and resource

in the County than is the national share of public

allocation necessary to grow the economy of Coryell

employment. This strong base generates locally

County.

circulating industries such as housing, retail and services.

The County’s labor force is small at slightly over 25,000 and the number of private establishments tops at 3,100. The private sector industries that make up those employers have been compared to 23

VISION We have envisioned the County as a hub for defense, agricultural, logistical and renewable energy businesses within the Austin-Waco-Dallas/Fort Worth corridor.

24

Coryell Location Quotient Ratio Analysis We have identified industries within Coryell County which have employment levels that suggest they produce a level of output that exceeds local demand. The LQ is computed in three steps: 1. Each industry’s share of employment is calculated for the local economy; 2. The same is done for the national economy; and 3. The ratio, called the Location Quotient (LQ), is calculated from the employment of the local economy relative to the national economy. An industry with a LQ greater than 1 is considered a base industry. For example NAICS† code 23 for Construction has a LQ of 1.65 indicating there is slightly above US average employment for that industry in Coryell County. NAICS code 31-33 Manufacturing has a LQ of .37 indicating there is less employment in the County based on US average.

Location Quotient Findings Coryell County does not have overly strong concentrations in any private industry, and LQ’s generally do not exceed 2.0 except in the public sector employment which has a LQ of six. While not having a particular dominant private industry specialization, the County is significantly dependent on its public sector employment and any changes due

The County does have above average activity in heavy and civil engineering construction, credit intermediation and related activities, repair and maintenance, gasoline stations, and animal production and aquaculture. (The concerning item on this list is the credit intermediation and related services. This high LQ indicates the population of the County needs more assistance straightening out financial emergencies than the rest of the US.) Coryell County does have several industries just slightly over average relative employment (LQ=1.0) than the US as a whole. This is good for the local economy as it does not show overdependence on any one local industry. The community will be healthier in times of economic difficulties due to this diversified base. It is also important to note that Coryell is so small that many industries that play a significant part in Coryell’s economy are not captured in the publicly available data due to confidentiality reasons. For example, if there is only one paper manufacturing facility in Coryell, statistics cannot be aggregated and confidentiality could not be maintained if the numbers were published. _______________

† NAICS Stands for North American Industry Classification System and is the standard used by Federal agencies to classify business establishments for the purpose of collecting, analyzing, and publishing statistical data.

to loss or spending cuts. 25

CORYELL LOCATION QUOTIENT RATIO ANALYSIS Gray = not reported Orange = not disclosed – too small a sample size Light Green = LQ between 1 and 2 Dark Green = LQ above 2

26

Source: 2014 Bureau of Labor Statistics Quarterly Census of Employment and Wages Data Notes: (ND) Not Disclosable (NC) Not Calculable, the data does not exist or it is zero http://data.bls.gov/location_quotient/ControllerServlet

NAICS # / Industry

Coryell Employment

Coryell Percent Employment

Coryell County LQ

KilleenTemple MSA LQ

DallasFort WorthArlington MSA LQ

#11 Agriculture, forestry, fishing and hunting

ND

ND%

ND

ND

0.12

# 21 Mining, quarrying, and oil and gas extraction

ND

ND%

ND

ND

1.59

# 22 Utilities

14

0.16%

0.34

ND

ND

# 23 Construction

726

8.50%

1.65

1.22

1.09

# 31-33 Manufacturing

338

3.96%

0.37

0.74

0.9

# 42 Wholesale trade

147

1.72%

0.34

0.85

ND

# 44-45 Retail trade

1,765

20.66%

1.55

1.27

0.92

# 54 Professional and technical services

760

8.90%

1.24

0.69

1.07

# 55 Management of companies and enterprises

NC

NC

NC

0.26

.89

# 56 Administrative and waste services

752

8.80%

1.2

0.59

1.24

# 61 Educational services

ND

ND%

ND

0.87

ND

# 62 Health care and social assistance

ND

ND%

ND

1.32

ND

# 48-49 Transportation and warehousing

114

1.33%

0.35

ND

1.3

# 51 Information

146

1.71%

0.71

0.96

1.23

# 52 Finance and insurance

551

6.45%

1.3

0.94

ND

# 53 Real estate and rental and leasing

171

2.00%

1.14

1.01

1.29

# 71 Arts, entertainment, and recreation

71

0.83%

0.46

0.49

0.84

# 72 Accommodation and food services

1,619

18.95%

1.76

1.24

0.97

# 81 Other services, except public administration

476

5.57%

1.52

1.08

0.85

# 99 Unclassified

2

0.02%

0.16

0.08

0.16

# 112 Animal production and aquaculture

36

0.42%

2

0.94

ND

# 211 Oil and gas extraction

NC

NC

NC

ND

2.99

CORYELL LOCATION QUOTIENT RATIO ANALYSIS (CONT’D) Gray = not reported Orange = not disclosed – too small a sample size Light Green = LQ between 1 and 2 Dark Green = LQ above 2

NAICS # / Industry

Coryell Employment

Coryell Percent Employment

Coryell County LQ

KilleenTemple MSA LQ

DallasFort WorthArlington MSA LQ

# 236 Construction of buildings

128

1.50%

1.32

1.68

ND

# 237 Heavy and civil engineering construction

249

2.91%

3.79

1.49

ND

# 322 Paper manufacturing

NC

NC

NC

3.28

0.74

# 238 Specialty trade contractors

349

4.09%

1.26

0.99

1.13

# 337 Furniture and related product manufacturing

37

0.43%

1.37

ND

ND

# 441 Motor vehicle and parts dealers

152

1.78%

1.12

1.78

ND

# 446 Health and personal care stores

99

1.16%

1.29

0.75

0.82

# 541 Professional and technical services

760

8.90%

1.24

0.69

ND

# 561 Administrative and support services

738

8.64%

1.24

ND

ND

# 623 Nursing and residential care facilities

289

3.38%

1.19

0.85

0.57

# 624 Social assistance

268

3.14%

1.13

ND

ND

# 447 Gasoline stations

155

1.81%

2.38

1.64

0.7

# 481 Air transportation

NC

NC

NC

0.16

3.05

# 491 Postal service

NC

NC

NC

ND

4.57

# 518 Data processing, hosting and related services

NC

NC

NC

ND

2.04

# 522 Credit intermediation and related activities

495

5.79%

2.51

1.68

ND

# 531 Real estate

159

1.86%

1.45

1.09

1.3

1,533

17.94%

1.96

ND

1.02

# 811 Repair and maintenance

217

2.54%

2.38

1.57

1.12

# 812 Personal and laundry services

131

1.53%

1.29

ND

0.95

# 813 Membership associations and organizations

117

1.37%

1.16

0.67

ND

# 722 Food services and drinking places

27

Coryell Shift Share Analysis Location Quotients provided a picture of Coryell’s uniqueness but it is a static analysis. It does not provide an understanding of growth. We used the shift-share model to analyze jobs growth and where a region is competitive. The outcome of this analysis is understanding where Coryell outperforms trends or is being left behind. This analysis can reveal areas that are effected by regional advantages or disadvantages rather than national trends. The shift-share analysis provides a more qualified understanding of jobs growth through four data sets: NATIONAL GROWTH SHARE - The share of local job growth that can be attributed to growth of the national economy. Specifically, if the nation as a whole is experiencing employment growth, one would expect total national growth to exert a positive growth influence on the local area. This factor describes the change that would be expected simply by virtue of the fact that the local area is part of a changing national economy. INDUSTRIAL MIX - This second factor is the change in a local industry that would be attributable to the growth or decline of the industry nationally. This component isolates the fact that nationwide, some industries have grown faster or slower than others. LOCAL SHARE (Regional shift) - This share of local job growth describes the extent to which factors unique to the local area have caused growth or decline in regional employment of an industrial group. This is usually attributed to some local comparative advantage such as natural resources, industries that have linked value chains (“clusters”), favorable local labor situations, or the efforts of local institutions such as economic development corporations. Our shift share analysis uses four statistics to examine how much growth or decline in employment in a particular sector is due to local, industry or national trends. This shift analysis provides specific insights into a Coryell’s opportunities and risks for particular industry clusters. The following chart shows the shift-share analysis for both the Coryell County and Killeen-Temple MSA from 2003-2013.

28

SHIFT-SHARE ANALYSIS FOR CORYELL COUNTY & KILLEEN-TEMPLE MSA 2003-2013 National Change Industry

Coryell County

KilleenTemple MSA

Industrial Mix Change Coryell County

KilleenTemple MSA

Regional Shift Change Coryell County Total Jobs

KilleenTemple MSA

Total Change Coryell County

KilleenTemple MSA

Total Jobs

Base Industry: Total, all industries

347.2

4227.7

0.0

0.0

1887.8

11256.3

2,235

15,484

Natural resources & mining

2.8

20.3

8.5

61.4

– 14.3

7.4

–3

89

Construction

39.1

284.5

– 130.0

– 944.8

105.8

1271.4

15

611

Manufacturing

20.4

447.8

– 83.7

– 1834.7

30.2

511.9

– 33

– 875

Trade, transportation, & utilities

87.4

1094.5

– 51.6

– 645.9

416.2

3570.4

452

4,019

Information

11.1

81.5

– 41.2

– 303.6

-24.8

870.2

– 55

648

Financial activities

33.1

291.6

– 49.2

– 433.7

137.1

826.2

121

684

Professional & business services

38.5

469.5

77.0

939.7

698.5

– 906.3

814

503

Education & health services

31.1

815.9

129.2

3391.1

117.7

1866.1

278

6,073

Leisure and hospitality

59.6

542.3

121.3

1104.6

427.1

1675.1

608

3,322

Other services

24.0

177.9

– 35.4

– 262.3

51.4

520.5

40

436

29

The regional shift shows that Coryell County is

Natural Resources and Mining:

shifting employment slowly away from natural

Coryell was stronger than expected based on national

resources and mining as well as information. Killeen-

and industry trends. Coryell County was expected to

Temple MSA does not show that same change but

see a loss of about 14 jobs when the area actually lost

they do show a shift of employment away from

3. Based on these same trends, Killeen-Temple MSA

professional and business services. The total shift

might have been expected to see a gain of 7.4, jobs

share analysis shows that Coryell County is shifting

but the MSA actually experienced 89 new jobs.

employment slowly away from a manufacturing and information base. Killeen-Temple MSA shows this

Construction:

change much more clearly than the County.

Coryell County had weak job gains of 15 jobs when national and industry trends indicated expected job

Instead, the following industry groupings are

gains of about 105 jobs. Based on these same trends,

beginning to make up more of the County’s base:

Killeen-Temple MSA might have been expected to

• Trade, transportation and utilities;

see a gain of 1271.4 jobs but the County actually

• Professional and business services;

experienced 611 new jobs.

• Education and health services;

Manufacturing:

• Leisure and hospitality; However, by examining these trends compared to

might have been expected to see a gain of about 30

overall national changes, it is possible to better

jobs when the area actually lost 33 jobs. Based on

understand Coryell’s true wins and losses.

these same trends, Killeen-Temple MSA might have

All Industry: Coryell County gained 1,887 more jobs in the years 2003-2013 than would have been expected by national trends alone. Changes for industrial mix

30

Based on national and industry trends, Coryell County

been expected to see a gain of 511 jobs but the MSA actually lost 875 jobs.

Traded, Transportation, and Utilities: Based on national and industry trends, Coryell County

are irrelevant when looking at an entire regional


economy, so looking at the “Base Industry: Total, all

jobs when the area actually gained 452 jobs. Based

industries” line truly isolates how well the region has

on these same trends, Killeen-Temple MSA might

performed when compared to how national trends

have been expected to see a gain of 3,570 jobs but

would predict.

the MSA actually gained 4,019 jobs.

Information:

Leisure and Hospitality:



might have been expected to see a loss of about 24


jobs when the area actually lost 55 jobs. Based on




been expected to see a gain of 870 jobs but the MSA

have been expected to see a gain of 1,675 jobs but

actually gained 648 jobs.

the MSA actually gained 3,322 jobs.

Financial Activities:

Other Services:






jobs when the area actually gained 40 jobs. Based on



have been expected to see a gain of 826 jobs but the

been expected to see a gain of 520 jobs but the MSA

MSA actually gained 684 jobs.

actually gained 436 jobs.

Professional and Business Services: Based on national and industry trends, Coryell County might have been expected to see a gain of about 698 jobs when the area actually gained 814 jobs. Based on these same trends, Killeen-Temple MSA might have been expected to see a loss of 906 jobs but the MSA actually gained 503 jobs.

Overall: Manufacturing significantly underperformed based on national trends while trade, transportation and utilities; professional and business services; education and health services; and leisure and hospitality performed significantly better based on national trends.

Education and Health Services: Based on national and industry trends, Coryell County might have been expected to see a gain of about 117 jobs when the area actually gained 278 jobs. Based on these same trends, Killeen-Temple MSA might have been expected to see a gain of 1,866 jobs but the MSA actually gained 6,073 jobs. 31

Reverse Site Selection Screening Model Companies making expansion and relocation decisions typically go through a process similar to that shown below. This process begins with the company identifying their business opportunities,

While many data points will typically go into a location decision, a handful will usually take prominence, and are used as gating factors that absolutely must be in place for the location to be included in the long list. Examples of these types of non-negotiable factors can include:

constraints and needs for the new facility, and then

• Geographic region;

progresses through an evaluation of location options.

• Overall population and workforce size;

This evaluation process continues to narrow the list

• Transportation access (e.g. international air access, intermodal facility, etc.);

until the company is prepared to negotiate with the last handful of communities. We have conducted this analysis in reverse. We have conducted an analysis

• Regulatory or tax environment (e.g. presence or absence of specific regulations or tax); and

that looks at Coryell’s strengths and weaknesses

• Existing presence of a particular industry cluster.

compared to other communities that a site selector

Local economic development agencies are typically

would consider natural competition.

contacted at the completion of the first screening rounds of collected data. This then gives them the

The Site Selection Process

opportunity to present specific sites and communities within the broader region.

Strategic Location With Access to: Markets, materials and partners

Competitive Set We selected several communities which have similar

Resources/Business Environment: • Operating costs and incentives • Sites/building, labor/skills, training, utilities (cost/capacity), etc. • Does the community embrace us?

assets and are likely to be considered for a location decision alongside Coryell County as our competitive sets in the Reverse Site Selection Model. We have adjusted for differences in size between compared areas by using percentages, change in percent over time, or indexes rather than absolute numbers. For example, while we consider the total population of

Feasibility (Cost/Risk) Analysis

32

the Metropolitan Statistical Area (MSA), we assess the

health by looking at the percent growth over time. The following MSAs are included in the Reverse Site Selection Model:

Overall Findings Killeen-Temple, TX MSA ranks 5th among the competing locations included in a neutrally-weighted

• Killeen-Temple, TX MSA (representing Coryell County)

reverse site selection screening model. This model

• Austin-Round Rock, TX MSA

shows how a company with no specific overriding

• Longview TX, MSA

needs would view Coryell County compared to the

• Dallas-Fort Worth-Arlington, TX MSA

other locations. In general, Killeen-Temple does

• Houston-The Woodlands-Sugarland, TX MSA

the best with low crime and a good quality of life,

• Waco, TX MSA

access to population, and low climate and natural

• Beaumont-Port Arthur, TX MSA

hazard risks. Killeen-Temple does not fare as well in

• Corpus Christi, TX MSA • Huntsville-College Station, TX MSA • Columbus, GA-AL MSA and • Colorado Springs, CO MSA.

household statistics and labor force availability. (For this analysis, Coryell County is included in the Killeen-Temple, TX MSA. County level date is unavailable for this competitive analysis.) 33

Killeen-Temple TX MSA

Austin-Round Rock, TX MSA

Longview TX MSA

Dallas-Fort WorthArlington TX MSA

Houston-The WoodlandsSugarland TX MSA

Waco, TX MSA

Beaumont-Port Arthur TX MSA

Corpus Christi

Huntsville/College Station TX MSA

Columbus, GA-AL MSA

Colorado Springs, CO MSA

REVERSE SITE SELECTION MODEL RANKINGS

Population and Demographics

3

1

9

3

2

7

9

7

9

5

6

Household Statistics

9

4

5

1

3

8

5

7

11

10

2

Labor Force Availability

8

1

6

2

3

4

10

6

4

11

9

Industry-Specific Employment

0

0

0

0

0

0

0

0

0

0

0

Occupation-Specific Employment

0

0

0

0

0

0

0

0

0

0

0

5

4

8

7

11

3

8

6

1

2

10

Education 2010

4

2

10

3

5

7

9

7

11

6

1

Access to Employees and Transportation

5

3

9

2

1

11

8

9

4

7

6

Tax Regime

3

3

3

3

3

3

3

3

3

1

1

Climate and Natural Hazards

4

1

2

4

9

2

11

4

7

8

10

Crime and Quality of Life

1

9

5

8

11

1

5

3

3

5

9

Overall Rank

5

1

10

2

3

7

11

9

6

8

4

Categories

(per 1000)

Occupation-Specific Salaries (Annual Mean 2010)

34

DEDICATION = GROWTH A dedicated economic development organization will strengthen programs that grow the economy

35

The following is a list of Coryell County’s advantages and disadvantages based on the data analyzed in the Reverse Site Selection Screening Model. Appendix B has the full data tables for this section.





COMPETITIVE ADVANTAGES

COMPETITIVE DISADVANTAGES

POPULATION & DEMOGRAPHICS  Steady significant positive population growth  Steady significant positive working age population growth  Young median age

 Continued population growth will place significant demands on housing and other area infrastructure

HOUSEHOLD STATISTICS  Median disposable income is high compared to the low median income rate

 Low percentage of owner occupied houses, high percentage renter occupied  High vacant housing rate  Low median home value  Low median household income

LABOR FORCE AVAILABILITY  Unemployment rate change is low, but the MSA did not have as great a number to recover from

 Labor Force Growth is low and does not reflect the positive working age population growth  Unemployment rate was high in 2010 due to the recession  Unemployment rate is still high compared to many competing locations

INDUSTRY SPECIFIC EMPLOYMENT  Higher employment in retail trade and service related industries  Average employment in wholesale trade and information industries

 Low employment in manufacturing, and finance/insurance/real estate industries

OCCUPATION SPECIFIC EMPLOYMENT  High employment for healthcare practitioners and technical occupations; and food preparation and serving related occupations  Average employment in healthcare support occupations; and transportation and material moving occupations

36

 Low employment in farming, fishing, and forestry occupations; and production occupations





COMPETITIVE ADVANTAGES

COMPETITIVE DISADVANTAGES

OCCUPATION SPECIFIC SALARIES  Low salaries for healthcare support functions; and production occupations  Average salaries for food preparation and serving related occupations; and transportation and material moving occupations

 High salaries for healthcare practitioners and technical occupations; and farming, fishing, and forestry occupations

EDUCATION  High percentage of the population that complete high school (low dropout rate)  Average population with at least some college experience, associate’s degree, Bachelor’s degree, etc.

 Lower than average percentage of population with graduate / professional school degrees

TRANSPORTATION & MARKET ACCESS  Access to close to half a million people within 45 minutes  Significant housing growth  Slightly above average median household and disposable income

 Long distance to nearest major airport; but not the longest  Slightly longer distance to a large sized airport  Area only served by one interstate highway

TAX REGIME  Best corporate tax climate score

 Highest sales tax rate  Highest property taxes as % of income

CLIMATE AND NATURAL HAZARDS  Among the lowest days or precipitation  Low yearly snow fall  Among the lowest tornado risk  Lower hurricane risk

 Lower yearly precipitation

CRIME & QUALITY OF LIFE  Lower violent crime rate  Second lowest cost of living  Lower average commute time to work  Best access to physicians

 Higher property crime rates  Lower access to hospital beds

37

Target Industries & Match Profiles As seen through previous analyses, Coryell County does have a higher concentration of employment across a number of industries and occupations, but no one private sector employer or industry is strong enough to dominate the workforce. This is very positive for the diversity and stability within the community, but means that the industry match profiles presented below are not based on strong concentrations of workforce or historic workforce knowledge. As a result, the list of targeted industries and uses

or provide ideas for further policy or investment efforts. Also included is a list of organizations and publications important to each industry to begin outreach and marketing efforts. It is also important to note that the list below is not comprehensive. It is constructed of archetypal industries. Industries and uses with similar profiles will be interested in the development and should be both marketed to and encouraged. Targets include:

below is based upon:

• Agriculture, cattle, livestock food production

• Coryell County’s natural strengths, existing economic networks, regional value chains, and workforce;

• Education (college, technical skills - provide onsite training with company’s equipment)

• Its comparative advantages as ascertained in a reverse site selection exercise, within the context of the key drivers for specific industry and use types; and

• Logistics services

• An examination of the market dynamics which then influence how likely any of the following uses and industries will be actively seeking new or expanding locations in the next three to five years.

• Military-Defense Industries

Each targeted industry listing includes a summation of the specific strengths and weaknesses of the County for the key drivers for each industry type. These comparative advantages and disadvantages

38

may either aid in developing the marketing strategy

• Light manufacturing (including trailers) • Appropriate retail (high quality or anchor stores) • Renewable energy products

A detailed assessment of the target industries follows.

TARGET INDUSTRIES ASSESSMENTS

AGRI-FOODS/FOOD PRODUCTION AND CATTLE/LIVESTOCK Specific Description

• Consolidation, preparation, packaging, and movement of bulk agricultural products such as grains, dairy, meats, and fresh & frozen produce.

Current Industry Outlook

• Agricultural commodities of Coryell County include pecans, hay, wheat, feed grains, cotton, and beef cattle. Texas A&M AgriLife Extension Program does have a branch in Coryell County that offers training and education in the industry. • Beef cattle and forage production accounts for 39 million dollars in Coryell County, 41% of their total agricultural income. Beef cattle production is challenging as a result of 2011 and 2012 droughts, but is recovering. Coryell County Commission Company maintains a large auction barn to meet the livestock needs of members of the community.

Industry Organizations

• National Cattlemen’s Beef Association (NCBA) (http://www.beefusa.org/). • U.S. Cattlemen’s Association (USCA) (http://www.uscattlemen.org/). • Ranchers-Cattlemen Action Legal Fund, United Stockgrowers of America: R-CALF (http://www.r-calfusa.com/). • Food Processing Suppliers Association (FPSA) (www.fpsa.org).

Key Requirements or Value Chain

• Access to – of location within – the food supply chain. • Bulk products require rail. • General food production requires truck access. • Specialized food import/export (fish, game, specialized produce) require air access. • Trained culinary and food safety workforce. • Expertise in export documentation and labeling for overseas markets.

Specific Role / Opportunity for Coryell County

• Consolidation, processing, and preparation of commodities and packaged foods. • Cattle and meat processing and production. • Consider organic options which add more value to the product. • Example companies include: Burgundy Pasture Beef, Texas Meat Packers, Nicholson’s Meat Company, etc.

Coryell County Competitive Advantages

• The County is heavily involved in ranching as compared to the rest of the US. • Historic farming culture. • Employees in all jobs that have farming experience generally make better rounded and more innovative employees.

Coryell County Competitive Weaknesses

• More recently, Coryell County has experienced water shortages that will effect primarily agricultural farming more directly than ranching. Indirect impacts will be realized in the form of more expensive feed for ranches due to shipping costs of getting that feed from further away. • Goods primarily must be shipped by truck or refrigerated truck.

39


EDUCATION & TRAINING Specific Description

Baseline education, workforce readiness training, administrative training, development of specialized skills needed by local industry.


• Significant potential student population in need of higher education/training. • While the young student population may not be increasing rapidly, continuing education opportunities, retraining, or specific “trade” skills training will be a big piece moving forward.

Industry Organizations Key Requirements or Value Chain


Coryell County Competitive Advantages Coryell County Competitive Weaknesses

40

• (Not applicable – Connections to be formed with state and local providers). • Need students who desire education or training (of all ages). • Need teachers or professors (traditional and trade) to teach. • Coryell struggles with low education rates. While this presents a problem for the area as a whole, it is an opportunity for the Education and Training industry. • Employers should work with the schools to develop specific training protocols. After this is in place, the employee can be hired by the company with an employment agreement. The company pays for the training but the employee must stay with the employer for a set period of time. • Need for basic mathematical, editing, communication, and educate skills training to allow employees to better function in the workplace • Best option is to work with Central Texas College , consider discussing/aligning efforts with Vista College (Fort Hood). • Veterans retraining program is needed – many veterans exit the military from Fort Hood and are in the Coryell area and may not have the skills needed to find employment in the area. • The Central Texas College and Texas A&M Central Texas are in Coryell County and they do a good job of not only offering educational opportunities for students but also providing opportunities for practical job training within the area. • Potential students may not have the money to pay for school on their own. • These types of training programs can cost employers a considerable amount.


LIGHT MANUFACTURING (INCLUDING TRAILERS) Specific Description

• Assembly of entire - or components for - animal or recreational vehicle trailers.


• Trailer manufacturing experienced significant downturns in the recession, resulting in massive layoffs and – importantly – a corresponding reduction in national production capacity. • Normalization of the national economy has highlighted a need for production of these vehicles.


• National Association of Trailer Manufacturers (NATM) (http://www.natm.com/). • Recreational Vehicle Industry Association (RVIA) (http://www.rvia.org/).


• Access to skilled workers. • Access to inputs for light manufacturing and assembly components. • Access to good logistics network.


• In 2012 Coryell County administrators made efforts to better attract light manufacturers. Sites for light industry work are currently on the market but appear to be selling quickly. • Cross Trailer Manufacturing is looking to grow both locally and nationally and offer utility, specialty, and custom trailers. • Examples of light manufacturing companies in Texas are: Tech lite Manufacturing, etc.


• Coryell County introduced a tax reinvestment program in order to attract more companies to locate there. The building where Cross Trailer is located is within this new incentive zone and they will receive decreased property tax. • Water availability can be problematic if manufacturing facility is a high water user or has toxic effluent (e.g. paint) during manufacturing. • Restrictions on wastewater are not unusually stringent, but owners must obtain a permit and follow regulations imposed by the County in order to dispose of their wastewater.

41


LOGISTICS SERVICES Specific Description



Key Requirements or Value Chain Specific Role / Opportunity for Coryell County

42

• Third Party Logistics (3PL) providers handle all or part of another company outsources logistics functions. This includes shipping and courier services, but can to varying degrees also include warehousing, customs, and other value added services. • Most major retailers and corporations use 3PL’s for some or all of their shipping needs. • Generally, shippers are increasing their use of 3PL’s, and are satisfied with their results. • However, industry reports point to several advancements which may assist in moving the 3PL model forward. These include greater use of “big data,” gain sharing and partnership between shipper and 3PL, and greater direct engagement of the 3PL in activities such as late-stage customer customization. • Transportation Insight in Killeen has been named as a top 50 3PL in the country multiple times. There are more numerous providers such as UPS and FedEx. ORGANIZATIONS: • Council of Supply Chain Management Professionals (CSCMP) (www.cscmp.org). • American Society of Transportation and Logistics (ASTL) (www.astl.org). PUBLICATIONS: • Cargo Business News. • Supply Chain Digest. • Intermodal transportation capacity, particularly truck and air. • Available appropriate real estate allowing for warehousing, processing, and some assembly/customization. • Very strong data and telecommunications connections for air logistics, direct access to aircraft. • 3PLs will be the most flexible way to expand within the logistics industry in a fast but responsive way when new companies locate in the area • Examples of logistics companies include: Texas Transload & Logistics, Apex Logistics Inc, and OmniLogistics, etc.


• Fort Hood is an outside influence that heavily relies on the shipping industry to get goods and materials in and out of the fort (commissary). • Strong telecommunications capability in the Copperas Cove area (more limited in other areas of the County). • Many areas of the County are well served by state highways. • Copperas Cove has very strong data service.


• Coryell County is not well served by rail. • Not well served by interstate highways. • Not well served by air. • Much of the County has limited data service.


APPROPRIATE RETAIL Specific Description

• “Appropriate retail” includes retail uses that remain stable even in tight economic times, those that are currently missing from the local retail offering, and those that residents want to shop at. • Retail is a volatile market but has recovered and stabilized considerably since the end of the recession. • Appropriate retail also provides the opportunity to draw spending into the country from surrounding areas.


Key Requirements or Value Chain Specific Role / Opportunity for Coryell County

ORGANIZATIONS: • Organizations: • International Council of Shopping Centers (ICSC) (www.icsc.org). PUBLICATIONS: • Shopping Centers Today. • Supply Chain Digest. • Good roadway logistics network. • Good access to regions with identified spending preferences and known purchasing ability. • Retailers that have the resiliency to withstand economic fluctuation. • Retailers that cater to the specific regional needs and purchasing preferences, and which can anchor other local retailers. • Examples of appropriate retail include: Macy’s, REI, Cabela’s, etc.


• Military working at Fort Hood have considerably larger salaries than those in the private sector – interviewees noted that the military does not have an “appropriate” outlet for the disposable income.


• Currently there is some concern about having customers and disposable income to support the “right kind of retail.”

43


RENEWABLE ENERGY PRODUCTS Specific Description Current Industry Outlook





44

• Renewable energy products range from wind farms to solar farms to hydropower to geothermal energy. • Multiple companies in Coryell County provide services to install and maintain solar panels or other options for renewable energy. Given the climate, solar panels can be a particularly attractive option for businesses and homes looking to save money after making a larger initial investment. • No current manufacturing facilities for solar, wind, hydro or geothermal. ORGANIZATIONS: • Multiple, specializing on specific sector of interest. PUBLICATIONS: • Oil & Gas Journal. • E&P Magazine. • Renewable Energy World. • Presence of natural resource to be used for renewable energy. • Industry is helped by the nearby presence of manufacturers of equipment used to harness the natural resources. • Good transportation network. • In 2014, SMU performed research identifying geothermal potential in Coryell County and throughout the state as a whole. In Coryell County, oil drillers hit a “steam well” in 2010 that would be a great source of geothermal energy. • Scientific advances have allowed geothermic energy to be produced at lower temperatures than ever before, giving Texas even more of an opportunity to provide alternative energy. The SMU researchers estimated that the state as a whole could provide enough geothermal energy to potentially offer hundreds of years of electric energy at current conversion rates. • Natural resources to support wind, solar and geothermal technologies. • Example of companies producing renewable energy products are: Gradient Resources, Ormat Technologies, Solar World; GE, Northern Power Systems, etc.

• (See above) • Experience severe weather occasionally which would be disruptive to renewable energy equipment and production. • The San Antonio area is currently the focus point for solar panel production so Coryell County is unlikely to become a focus point for solar panel production. • No significant production opportunities for hydro power.


MILITARY-DEFENSE INDUSTRIES Specific Description

Current Industry Outlook Industry Organizations Key Requirements or Value Chain

Specific Role / Opportunity for Coryell County Coryell County Competitive Advantages Coryell County Competitive Weaknesses

• Government, defense contractors and industry involved in research, development, production, and service of military material, equipment and facilities as well as companies providing logistics and manpower. • Declining spending from reducing global conflicts. • Impacts of the 2013 Bipartisan Budget act, mitigated some of the sequestration impacts. • 2.5% reduction in revenues for defense contractors. • Fort Hood force reduction of 3,300 over the next two years. • Various conferences organized through Association of Defense Communities and Heart of Texas Defense Alliance. • Large logistical footprint because of two-level maintenance system. • Complex supply chain providing national security. • Single national inventory. • Access to rail, air and transportation routes to ports. • Location for defense contractors. • Supportive businesses to military defense industry. • Expansion of existing Fort Hood operations. • Possible shared rail head. • Trained and experienced workforce. • Compatible land uses to Fort Hood. • Available sites for defense contractors.

• None

45

Target Niches An analysis of the County’s current demographic profile,

Specific Description

current business climate and the region’s strengths and

Cultivation of several varietals of grapes – specifically Cabernet Sauvignon, Syrah and Merlot – for sale to Texas wineries.

weaknesses has yielded recommendations for four specific niche markets. “Niche markets” are considered complementary to predominant markets, and serve to diversify the region’s economic base by creating a tier of secondary industries that will generate significant revenue, but not at the scale of predominant markets. The development of niche markets is a logical expansion of existing infrastructure and businesses. The high concentration and competitive strengths of the County’s economy explored in the Benchmarking

Current Industry Outlook • TX is 7th in wine grape production in the US • Number of TX wineries has doubled in past 10 yrs • Grape-bearing acreage in TX has decreased as a result of 2013 freeze and land development • Average yield per acre continues to rise, currently at nearly 3 tons /acre • Prices continue to rise, currently $1,200/ton

and Reverse Site Selection section indicates a younger-


than-average, outdoor & recreation-oriented population

• Available acreage, and grape growing soil pH

with a noted gap in outlets for their disposable income

• Processing relationships with nearby vineyards

(particularly for military personnel). These data, combined with the analysis of current industry trends and regional business climate, suggests the following niche markets: 1. Viniculture: the cultivation of grapes for wine 2. Outdoor recreation, both facilities and retail 3. Value-added agriculture and livestock, both growth and production 4. Large-animal veterinary services

46

GRAPES

• Access to storage and transport to vineyards Specific Role/Opportunity for Coryell County • Growth potential – USDA currently reports only one farm in Coryell County that produces grapes, on a negligible amount of acreage • TX Department of Agriculture has made available Specialty Crop Block Grant Program


• Access to trained personnel and clients

• Significant acreage already dedicated to agriculture (appx. 15-30 acres is appropriate size for small vineyard)

• Land available for facility development

• Strong employment in agricultural professions that develop farming experience

• Previously identified target industry for retailers catering to specific regional needs and purchasing preferences

• Historic farming culture • Minimal regional competition due to under-supply Coryell County Competitive Weaknesses • High upfront capital costs with several-year ROI • Not well served by interstate highways

FITNESS & OUTDOOR RECREATION Specific Description: Observing and photographing wildlife, hunting, utilization of hiking & biking trails, and construction of indoor/outdoor exercise facilities. Current Industry Outlook • Continued growth in wildlife-watching participation & expenditures in last 10 years • Preference is for around-the-home wildlifewatching, giving residents an opportunity to contribute to the local economic base • Hunting & fishing is a mixed trend, recently up after slow years Key Requirements or Value Chain • Presence of natural resources to be used for trails and recreational facilities

Specific Role/Opportunity for Coryell County

• Shift-share analysis shows leisure and hospitality as an emerging industry grouping • Market potential analysis shows significant gap in supply of fitness clubs and other outdoor recreation facilities • Proximity to Mother Neff, with opportunities for hiking, fishing, and nature observation Coryell County Competitive Advantages • Lower median age in Coryell County (30.4) than in TX (34.2) & US (37.7) indicates relatively higher interest in physical fitness and activity • High concentration of employees (23%) in Coryell County are in Armed Forces, with similar interests and noted preference for additional outlets for disposable income • Opportunity for growth- only 5 arts, entertainment and leisure establishments listed in 2013 Economic Census Coryell County Competitive Weaknesses • Fitness and outdoor recreation is a large niche market- additional consumer input needed to identify which businesses would be a “best fit” for the County

47

VALUE-ADDED AGRICULTURE Specific Description: Continued specialization of existing agricultural products, such as goat cheese, jams and jellies, cedar oil, and cultivation of organic crops. Current Industry Outlook • Increasing national interest in farm-to-table, local sourcing and high-quality ingredients • Market value of organic agricultural products sold in the US nearly doubled in 6 years • Texas currently ranks 6th in organic sales (and 4th in livestock and poultry product sales) in the US, generating nearly $200M in revenues in 2014 Key Requirements or Value Chain • Facilities for processing and preparation of value-added commodities • Development of specific facilities for “higher” (e.g. organic) processing standards • Trained culinary and food safety workforce Specific Role/Opportunity for Coryell County • Local growth potential- identified gap in demand for full-service restaurants and special food services (e.g. catering, food service contractors, food trucks) • Regional growth potential – 90-minute proximity to Austin, which is an emerging food capital with unique resources driving food innovation and hosts the recent winner of the James Beard Foundation: Best Chef: Southwest

48

• Current agricultural products in the County have potential for “value-added” production, such as goats (meat, wool), sheep (wool), and pecans • Identified target industry in education and training programs would provide opportunities for training needed for value-added commodities production • Role of County could be in increasing commodities for processing within the County, and/or developing relationships with local processing facilities • US Department of Agriculture has made available Value Added Producer Grants Coryell County Competitive Advantages • Significant acreage already dedicated to agriculture; 5 acres is part of or being certified as part of the USDA National Organic Program • Proximity to two major culinary markets (90 minutes to Austin, 120 minutes to DFW) • Strong employment in agricultural professions that develop farming experience • Historic farming culture Coryell County Competitive Weaknesses • Achieving organic certification can be a timeconsuming and expensive process • Increased access to shipping by truck needed

LARGE-ANIMAL VETERINARY SERVICES Specific Description: Increasing and enhancing current veterinary services for large animals, specifically horses. Current Industry Outlook • Increased spending on animal care in past 5 years • Increased enrollment in veterinary school as a result of higher demand

Coryell County Competitive Advantages • Prevalence of ranches and farms in the County; nearly 60,000 cattle and 2,000 horses • Existing veterinary services with potential for expansion Coryell County Competitive Weaknesses • Relatively low current availability of trained workforce

• Continued decrease in veterinary students specializing in large-animal care Key Requirements or Value Chain • Need access to clients • Need access to trained personnel, medical supplies in sufficient quantity • Consideration for veterinary clinics and on-site visits Specific Role/Opportunity for Coryell County • Increase supply of veterinary clinics for both local and regional services • Identified target industry in education and training programs would provide opportunities for training needed for veterinary or veterinary technician services

49

Business Development Incentives A well-packaged combination of targeted incentives can be a powerful tool to influence business location decision making. In order to induce companies’ to relocate, communities can offer financial incentives in the form of tax breaks, grants, loans, tax-exempt bonds and equity. In this section we will outline the incentive tools that are available to attract companies to Coryell County and how they are best used. The effect of incentives and their importance varies by business sector, some businesses are more sensitive to property or personal property tax rates while others may expect infrastructure upgrades to match their private investment. Some incentives will have a broad appeal, but others are more targeted. Coryell County can approach incentives with a level of sophistication by quantifying the rate of return for incentives given the expected revenue, jobs and investment received. Assessing the impact of incentives over the expected investment will provide transparency and accountability which will go a long way to creating comfort and support of these policies with the public. The public-private collaboration inherent in economic development strategies are often uncomfortable for members of the public concerned about the spending of public monies. Balancing the incentives offered to induce companies to make the desired investment

50

and hiring decisions against the tax revenue changes will help resident endorse this growth strategy. Financial incentives are only part of the picture, creating a long-term quality business climate can encourage development, investment and reinvestment. Policies which effect site development, workforce readiness and access to markets can effectively round out an incentive package. Coryell would do well to both, create targeted incentives as well as creating and ensuring a desirable business climate. Sample Incentive and Credit Programs The state of Texas provides a series of programs that are designed to address specific business needs and also alleviate some barriers to entry. • Texas Enterprise Fund – Established as a “closing fund” for the State of Texas to intervene for highvalue projects. Variations in award amounts are influenced by the number of jobs to be created, the expected time frame for hiring, and the average wages to be paid. In the past, awards have ranged from $194,000 to $50 million. Competition with another state for the project must exist and the business must not have already made a location decision. The applicant’s business sector must be an advanced industry that could potentially locate in another state or country.

• Capital Access Program - This program had been established to increase the availability of financing

−− Defense Economic Adjustment Assistance Grant Program

for businesses and nonprofit organizations that

−− Moving Image Industry Incentive Program

face barriers in accessing capital, or fall outside the guidelines of conventional lending • Growth Capital for Texas Small Business – This is

• Texas Enterprise Zone Program - is an economic development tool for local communities to partner with the State of Texas to promote job

a government sponsored venture capital program

creation and significant private investment that

to increase the availability of growth capital for

will assist economically distressed areas of the

businesses with no more than 100 employees.

state. Approved projects are eligible to apply

A percentage of the investments must be made

for state sales and use tax refunds on qualified

in early stage businesses and businesses located

expenditures. The level and amount of refund is

in a defined strategic investment area. Coryell

related to the capital investment and jobs created

County is a qualified strategic investment area.

at the qualified business site.

This program’s investment have been dominated

• Revolving Loan Fund – The RLF Program assists

by companies located in Harris, Travis and Dallas

small and emerging businesses located in rural

County, among the largest population centers

areas within the following counties: Bell, Coryell,

in the state. Investment ranged from $50,000

Hamilton, Lampasas, Milam, Mills, and San Saba.

to $3,000,000. Six of the eleven certified capital

Funded primarily by the United States Department

companies are located in Austin, a short drive from

of Agriculture, Rural Development through a Rural

Coryell County.

Business Enterprise Grant (RBEG) administered by

• Grants - Texas provides several types of direct grants to communities and businesses to fund a

the Development District of Central Texas. • Jobs For Texas – J4T is a program for an early

wide variety of projects, from public infrastructure

stage, high-growth small business or a business

projects in non-entitlement:

that is commercializing a technology, products,

−− Texas Capital Fund Infrastructure Program

process or service for companies that have the

−− Texas Capital Fund Real Estate Development Program

potential to raise private capital in addition to the

−− Cancer Prevention and Research General Obligation Bonds

Department of Agriculture with two focuses: one

J4T funds. This program is administered by the Texas on loans ranging from $500,000 to $3,000,000; and, the second on equity investment. 51

Full details on each program are available at https://

The Killeen-Temple-Fort Hood Metropolitan Area has not

texaswideopenforbusiness.com/. We list them here

registered any projects benefiting from incentives and

for reference.

credits in the Incentives Monitor database. For Texas as a whole however, the 234 projects were in the following

Incentive Program Usage

industry groups. The chart below gives insights into the

The programs listed above provide some indication of

kinds of projects and industries already landing in Texas

the support generally available to businesses looking

and for which the Coryell region should be prepared to

to locate or expand within the area. However, it is

compete:

2015

2

2

1

1

6

2

3

15

Automotive

1

5

4

from January of 2010 through June 2015. These

Basic Materials

2

4

6

6

1

deals generated 62,680 new jobs and $24.18 billion

Consumer Goods

4

5

7

2

4

in capital expenditure.

Creative Industries

2

WavTeq and ICA – lists 234 deals in the State of Texas

19 4

1

26 3

Electronics

4

2

4

1

2

The American South has been active in competing

Food & Drink

4

3

8

4

1

2

22

via incentive programs. The average incentive deal in

Industrial Goods

6

7

8

9

1

2

33

created. This is less than nearby, competitive states

Information Technology & Telecom (ITT)

1

6

5

2

8

2

24

such as Louisiana ($90,882), Arkansas ($37,971),

Leisure & Tourism

1

2

2

2

7

Oklahoma ($25,874), Mississippi ($47,507), and

Life Sciences

3

2

2

3

1

13

Non-Renewable Energy

1

1

6

2

1

11

Renewable Energy

2

3

1

1

7

Services

6

3

12

2

35

Grand Total

36 44 69 38 26 21

234

Texas awarded $16,332 in credits or grants per job

Tennessee ($40,549).

52

2014

IncentivesMonitor.com – an online service founded by

Aerospace, Defense and Marine (ADM)

Grand Total

2013

may not provide.

Industry

2012

competitive advantage that such programs may or

Texas Incentives to Business Sectors 2011

used in East Central Texas to better understand the

2010

also useful to examine how the programs are being

8

2

4

13

The County’s development is concentrated around the Coryell County’s cities of Copperas Cove and Gatesville. Altogether commercial and industrial property values comprise 12% of the values in the County. In 2015 the value of all commercial property was over $445 million. This represents a trend of 4% growth in commercial values in the last ten years. Commercial property is the most valuable in Copperas Cove. Outside of the city of Copperas Cove, there has not been new commercial development in the County in the last five years. Following a national spatial pattern, the County’s new development has been in green fields outside of the urban core with limited redevelopment of existing facilities. Much of the manufacturing site inventory in the County, built

Site Readiness Analysis Location and available space is a fundamental part of

before 1975, is functionally obsolete because of limited ceiling heights and insufficient loading docks or drive through.

the economic development strategy. The ability for businesses and their representatives to locate available

For the identified target industries (Agricultural

space as well as move quickly through permitting is an

Production, Education & Training, Light Manufacturing:

important component to the strategy. Coryell County

trailers, Logistics Services, Retail, Renewable Energy,

can convey the appropriate image by the information

and Military-Defense) the County’s inventory

available on sites and development in the County. Well

is problematic. Trailer manufacturers look for a

before the County receives a prospect call, the listings

minimum building size of 24,000 square feet, and

of land development availability, codes and zoning can

sufficient acreage to support the operations. Average

answer the needs of specific target industries. Quality

clear ceiling height between 32 to 36 feet is needed.

information and creation of pre-permitting programs

Niche meat processing is potentially viable in a

are ways communities stand ahead in line.

building sized at 8,000 square feet but government 53

regulations require the siting of the facility adequate

Coryell 2015 Assessed Commercial Values

distance from residences, which may be an area not served by existing water and sewer infrastructure.

Avg Value/ Acre

Avg Value/ SF

Median Values

Copperas Cove

$ 549,830

$86

$ 229,055

Gatesville

$ 359321

$65

$ 100,160

Evant

$ 69,205

$17

$ 20,220

All other areas

$ 99,927

$43

$ 30,100

Community

Our visual survey of existing properties and of properties listing online showed limited properties

Source: Coryell Central Appraisal District

and building sites. Currently there are seventeen commercial properties available for sale or lease posted on local websites. The real estate is affordably priced, averaging an asking sale price per square foot of $55, and generally located with basic supporting infrastructure. There was not consistent data across the listing platforms, including nonspecific information on utilities, fiber and water and sewer lines. Although these sites are ready to go in terms of basic infrastructure few of the available sites

Coryell Market 2015

match the minimum needs of our target industries. Logistical, Trailer or other target industries will have

Avg Time on Market

Avg Price Per SF

Median Median Age of SF of Bldg. Bldg. Sold Sold

Copperas Cove

244

$145.83

1976

4,260

Gatesville

699

$50.05

1984

8,682

Coryell

492

$105.92

1978

5,525

Killeen

412

$148.36

1985

3,647

Source: Costar Group & Susan Yanofsky Consulting

54

the additional time and cost of developing the site for their needs. Coryell’s real estate market is part of larger market, the Waco-Fort Hood-Killeen Region. In this market the flex/industrial leases is priced below the proximate Austin area’s $9.36 per square foot, and are reasonable between $6.31 and $8.29 per square foot (SF). The cost of similar space in Coryell County is slightly lower at $6.49 per square foot. The Coryell market, similar to the surrounding market has a low vacancy rate of 5.10%.

According to Costar Group’s survey of the Coryell County real estate market, there are 349 existing

AVAILABLE BUILDINGS (THIRD QTR 20.15)

buildings in the market, which creates 2.9 million SF of space. There are approximately 146,119 square

Community

Building SF

Acres

Gatesville TX

2,460

0.65

Gatesville TX

48,000*

Gatesville TX

3,900

0.46

$ 348,000

Gatesville TX

8,000

0.28

$ 275,000

feet of vacant space in the County. Time on the market averages over forty months. All of this data illustrates that there is limited demand for these sites and perhaps many of the facilities are outdated. New industries coming into the market place are more likely to build space to suit their needs rather than adapt a space. This is

Gatesville TX

Sales Price $ 159,000 $ 875,000

1.29

problematic because they are likely to build outside

Gatesville TX

1,802

0.86

$ 179,000

of area which has existing infrastructure. To attract

Gatesville TX

720

0.29

$ 69,900

will have the additional cost of constructing new

Gatesville TX

7,575

0.5

$ 275,000

infrastructure for these industries. If incentives

Gatesville TX

2,880

0.85

$ 125,000

Gatesville TX

2,080

0.19

$ 55,000

Gatesville TX

3,650

0.09

$ 190,000

0.96

$ 350,000

5.76

$ 975,000

new industries the County and municipalities

are part of the attraction package, providing infrastructure is likely to be part pf the package. Although the County is a ninety-minute drive from Austin, one of the nation’s most robust real estate

Gatesville TX

markets, and despite low vacancy rates, the County and the region are not experiencing price pressure.

Copperas Cove TX

26,980

Copperas Cove TX

23,522

$ 695,000

But the County has an opportunity to differentiate

Copperas Cove TX

78,974

$ 346,000

its area through improved communication and

Copperas Cove TX

50,000

Coryell’s site readiness is not an outlier in the region.

undertaking a program to upgrade its buildings.

3

2.26

$ 3,590,000

$ 2,200,000

* Three

55

APPENDIX A: BENCHMARKING, DATA ADDENDUM This data on Coryell County provides overall statistics on the economy. These indicators on their own are not revealing, they are the starting point to creating an economic picture. The data are the beginning data sets that are commonly used and thus valuable to use when comparing across sectors and regions. The data here is one part of a comprehensive initiative to look at the drivers of the economy. Unless otherwise noted we have utilized data that is available at a County level. The factors that drive an economy are based on expert judgment, community input as well as understanding key indicators. Performance Measurement: We have provided here some indicators which capture the general economic picture of the County. This data provides a relevant baseline for the plan. The performance measures included here are the indicators that are statistically relevant in developing an economic picture. Tracking more data does not necessarily yield more clarity, rather it can be duplicative or measure activities which are not part of the goals of this plan.

Performance Measures 2013 County Bell Bosque Coryell Hamilton Lampasas McLennan Texas

Avg. Weekly Wage $ 776 $ 636 $ 619 $ 613 $ 585 $ 768 $ 818

Per Capita Personal Income $ 39,298 $ 36,838 $ 36,900 $ 37,972 $ 52,983 $ 36,205 $ 43,862

Note: Personal income includes all wage earners in household, dividends, interest and rent transfer payments. Source: Bureau of Economic Analysis *source: IRS **source: Social Security Administration

Table A.1 Comparative Benchmark Data

56

Median Household Income $ 50,060 $ 44,742 $ 49,819 $ 40,655 $ 49,277 $ 41,922 $ 51,017

Avg. Adjusted Gross Income* $ 45,098 $ 47,887 $ 40,243 $ 44,002 $ 49,710 $ 49,025 $ 63,989

Percent of Pop. Rec SSD Benefits** 13% 25% 12% 27% 22% 17% 14%

Labor: Coryell County’s labor force is 25,085. (Federal Reserve Economic Data, 2015) Labor force is defined as residents over 16 who

UNEMPLOYMENT

are either employed or unemployed, and not active duty military. This

CORYELL

BELL

TEXAS

number does not include discouraged workers, that is, persons who have not looked for work within the last four weeks. According to

9.0

the Bureau of Labor Statistics the percentage of discouraged workers

7.0

generally trends with the unemployment rate. Unfortunately, only

6.0

state level data on discouraged workers is available at this time.

4.0

8.0

5.0 3.0 2.0

County labor force numbers.

2014

2013

2011

2012

2010

2009

2007

2008

2005

2006

2004

2003

2001

2002

2000

1999

1997

1998

1995

Fort Hood contractors and civilian employees are counted in the

0.0

1996

ten years. Fort Hood active duty personnel is approximately 39,000.

1.0 1994

There has been a 2% decline in the labor force participation in the last

Table A.2 Unemployment Over Time

Of the approximate 3,114 businesses in the County, there are approximately 18,041 jobs attached to those establishments. The County rate for self-employed is 5.6% compared to the Texas rate of 7.2% self-employed. (Dun & Bradstreet) Employment: 26% of the public sector employment is with Fort Hood and 24% are employed at the prison complex in Gatesville. According to Fort Hood, 1,000 soldiers are exiting monthly. Survey’s by the Texas Workforce Commission estimates that 30% of the

Accommodation / Food Service 5% Construction 8%

Employees by Sector

Admin / Support / Waste Mgmt & Remediation 9%

Public Administration 37%

soldiers stay in the area and a greater number would stay if they had opportunities.

Retail Trade 11%

Health Care / Social Assistant 13%

Educational Svc 17%

Table A.3 Employment by Industry Sectors, 2013 D&B

57

Jobs: There are approximately 18,041 jobs in Coryell County. (Dun & Bradstreet, 2014) Not all residents are employed in the County and not all jobs are filled with County residents. 33% of Coryell County residents work in the County, 16,632 residents are employed outside the County, primarily in Bell County.

Commuter-Adjusted Daytime Populations Daytime population

Daytime population change due to commuting

Percent daytime population change due to commuting

Workers who lived and worked in the same place

Percent workers who lived and worked in the same place

Employment residence ratio

14,230

24,152

-7,443

-23.6

3,911

27.5

0.48

50,126

16,461

68,118

33,665

97.7

13,956

84.8

3.05

7,632

5,916

17,260

1,716

11.0

3,609

61.0

1.29

Total workers working in place

Total workers living in place

Copperas Cove

6,787

Fort Hood CDP Gatesville

Place

Table A.4 Journey to Work Data, 2010

Location Quotient Compared Location: To determine the competitiveness

4

in terms of employment in private sector

3.5 3

industries a location quotient is used. This

2.5

location quotient compares the national

2

employment by industry to employment in

1.5

the County. An industry that outperforms the

1

US is an indication of a higher than average

0.5

58

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Coryell County, Texas

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in

tio M

al

pr od

uc

County there is relative strength in agriculture, compared to the US and to the region.

g,

n

&

is presented in the chart below. For Coryell

pt

aq u

ac u

picture for Coryell, McLennan and Bell County

namely animal production, and construction

ga s

0

employment concentration. The regional

Bell County, Texas

McLennan County, Texas

Top Private Employers (Over 50 employees) Copperas Cove

Gatesville

0.70

Gc Services

Coryell Memorial Hospital

0.60

Walmart Supercenter

Kalyn Siebert

0.50

H-e-b Foods

Laerdal Medical

0.40

Hill Country Living Center

Walmart Supercenter

0.30

McDonald’s

Bimbo Bakeries USA

0.20

Stoney Brook of Copperas Cove

Coryell Home Health Care

0.10

Wind Crest Living Center

Hillside Nursing & Rehab Center

0.00

JLL Construction Meadows Table A.6 Top private Employers

Tax Rates Compared

Bosque

Coryell

Bell

Effective Tax Rate

Median Hamilton McLennan Lampasas

Total Tax Rate

Table A.7 Tax Rates, Texas Comptroller, 2015

59

Demographics

Coryell Population by Geography

75,562 people lived in Coryell County in 2014. The past five years have seen .2%

60,000

3.00

population growth which is significantly

50,000

2.50

lower than the 7.2% population growth

40,000

for the state in the same period. The

30,000

population numbers counted in the 2010

20,000

US Census are skewed because of the

10,000

methodology used to count for deployed

1.50 1.00 0.50 (0.50)

te

w n

ra po

h

U

M

ni nc or

ai n nt ou

O

G

ut So

Census by the place where they enlisted,

1990

even if they had not lived there in decades. Overseas military numbers are counted in

to

ci ty by gl es

vi lle at

es

ow n Ev

an

tt

Co Co

pp

er

as

Hood soldiers were deployed to Iraq and

ci ty

t.) (p

ci ty ve

the time of the count, a majority of Fort

d

-

soldiers who reside in the County. At

Afghanistan. Soldiers were counted on the

2.00

2013

Growth Rate

Table A.8 Population by Geography

the overall state population counts. The eastern part of the County holds the

Population Growth Rate

largest concentration of the

% Change 2010-2014

Annual Growth Rate 1990-2014

75,388

0.2

0.73

329,140

9.4

2.99

Texas

25,145,561

7.2

2.42

USA

318,857,056

3.3

1.16

Population 2014

population, yet approximately a third of the residents live in unincorporated areas of the County. (A note that the Gatesville population numbers include incarcerated individuals. Since this data will be compared across other data sets, we will use the numbers derived from the Census. We have not subtracting the nearly 9,000 people incarcerated in the Gatesville prison complex.) 60

Coryell Bell

Table A.9 Population Growth Rate, US Census

County Racial Demographics African American

50% 45%

16%

1% 2% 4%

60%

Education for Population over 25 Years of Age

17%

1%

American Indian and Alaska Native

40%

Asian

35% 29%

30%

Native Hawaiian and Other Pacific Islander

25%

Two or More Races

20% 15%

Hispanic or Latino

27% 22%

22%

15%

10% 5%

White

0%

Coryell

Table A.10 Racial Demographics

Population Over 45 Years

Bell McLennan Texas High school graduate or less Some College or Associates Bachelor's degree or higher

US

Table A.11 Education over 25 years

45% 40% 35%

Median age:

30% 25%

In Coryell County the median age is 30.4

20%

which is lower than both the state (TX: 34.2)

15% 10%

and the US median. (US: 37.7 )

5% 0%

Coryell Age 45-54

Texas Age 55-64

Age 65-74

US Age 75-85+

Table A.12 Population near or retired

61

Table A.13 Net Migration over Decades

Comparison of Roadways Monies District

1,549

Waco

$193,436,676

$124,909

Bosque

696

Waco

$5,062,320

$7,269

Coryell

687

Waco

$25,868,473

$37,650

Hamilton

583

Waco

$13,383,914

$22,947

McLennan

1,703

Waco

$146,944,986

$86,272

Lampasas

512

Brownwood

$11,336,846

$22,135

Bell

Table A.14 Transportation Dollars

62

Construction / Maintenance FY14

Lane Miles

C/M $ Per Lane Miles

CO MSA

Colorado Springs,

MSA

Columbus, GA-AL

Station, TX MSA

Huntsville/College

TX MSA

Corpus Christi,

Arthur, TX MSA

Beaumont-Port

Waco, TX MSA

Sugarland, TX MSA

Woodlands-

Houston-The

Arlington, TX MSA

Dallas-Fort Worth-

Longview, TX MSA

TX MSA

Austin-Round Rock,

TX MSA

Killeen-Temple,

APPENDIX B: REVERSE SITE SELECTION LOCATION SCREENING MODEL DATABASE

Population and Demographics % Population Growth 2010-2015

7.43%

11.75%

3.56%

7.19%

9.12%

4.31%

2.57%

4.08%

4.06%

5.73%

6.08%

% Population Growth 2015-2020

6.82%

13.25%

3.49%

8.13%

9.75%

4.25%

2.51%

5.09%

3.32%

8.38%

6.76%

% Population 15-65 Growth 2010-2015

6.46%

10.02%

2.19%

6.21%

7.76%

3.65%

1.79%

3.02%

2.94%

4.13%

4.62%

31.20

33.70

37.80

34.40

34.00

34.00

37.60

36.60

36.70

35.20

35.30

3

1

9

3

2

7

9

7

9

5

6

Total Owner Occupied Housing Units 2015

54.66%

56.72%

66.59%

60.04%

60.76%

59.05%

67.30%

60.84%

59.09%

54.60%

61.69%

Total Renter Occupied Housing Units 2015

45.34%

43.28%

33.41%

39.96%

39.24%

40.95%

32.70%

39.16%

40.91%

45.40%

38.31%

9.82%

7.39%

10.04%

8.00%

9.50%

8.74%

12.25%

13.90%

18.28%

12.49%

6.39%

2015 Median Age Subrank Household Statistics

Total Vacant Housing Units 2015

$143,078

$247,706

$140,366

$207,972

$202,236

$161,419

$133,420

$164,018

$149,616

$157,611

$251,155

Median Household Income 2015

Median Home Value 2015

$51,804

$74,755

$51,114

$72,696

$73,052

$46,962

$53,658

$54,502

$47,493

$45,231

$66,302

Median Disposable Income 2015

$43,129

$52,704

$38,385

$52,023

$51,788

$36,130

$39,036

$40,262

$35,806

$32,588

$47,268

9

4

5

1

3

8

5

7

11

10

2

%Growth in Labor Force 2010-2015

1.60%

13.02%

2.94%

8.25%

9.68%

-1.48%

-1.22%

5.15%

2.12%

-1.21%

-0.71%

Unemployment Rate 2010

7.60%

7.00%

8.10%

8.10%

8.30%

7.40%

11.20%

8.50%

6.60%

10.00%

9.30%

Subrank Labor Force Availability

Unemployment Rate 2015

4.73%

3.35%

4.23%

4.05%

4.25%

4.08%

6.40%

4.70%

3.40%

7.10%

5.50%

Change in Unemployment Rate 2010-2015

-2.88%

-3.65%

-3.88%

-4.05%

-4.05%

-3.33%

-4.80%

-3.80%

-3.20%

-2.90%

-3.80%

8

1

6

2

3

4

10

6

4

11

9

5.43%

8.98%

12.20%

10.68%

10.65%

12.08%

12.86%

7.00%

4.94%

10.14%

6.96%

Subrank Industry-Specific Employment 2015 Manufacturing as a % of Total Employment Wholesale Trade as a % of Total Employment Retail Trade as a % of Total Employment

2.15%

2.19%

3.34%

3.04%

3.37%

2.67%

1.97%

2.22%

1.23%

1.56%

1.58%

12.45%

11.30%

11.58%

11.51%

10.77%

12.80%

11.95%

11.69%

11.77%

11.22%

11.23%

Information as a % of Total Employment

1.52%

2.01%

1.19%

2.40%

1.23%

1.44%

1.02%

1.13%

0.68%

1.67%

2.84%

Finance/Insurance/Real Estate as a % of Total Employment

2.80%

4.46%

2.96%

6.73%

3.92%

4.90%

2.69%

2.97%

2.54%

9.31%

4.35%

67.81%

65.54%

51.02%

59.97%

56.15%

59.53%

55.66%

62.05%

68.95%

67.40%

68.57%

0

0

0

0

0

0

0

0

0

0

0

Service Industries as a % of Total Employment Subrank

63

CO MSA

Colorado Springs,

MSA

Columbus, GA-AL

Station, TX MSA

Huntsville/College

TX MSA

Corpus Christi,

Arthur, TX MSA

Beaumont-Port

Waco, TX MSA

Sugarland, TX MSA

Woodlands-

Houston-The

Arlington, TX MSA

Dallas-Fort Worth-

Longview, TX MSA

TX MSA

Austin-Round Rock,

TX MSA

Killeen-Temple,

Occupation-Specific Employment (per 1000) 29-0000 Healthcare Practitioners and Technical Occupations

87.418

43.714

61.852

50.62

47.76

46.234

48.175

55.195

49.774

61.055

57.177

31-0000 Healthcare Support Occupations

29.794

19.798

31.851

22.635

19.611

23.824

20.043

40.006

18.331

28.099

26.651

35-0000 Food Preparation and Serving Related Occupations

105.877

104.263

76.769

88.81

86.375

99.178

88.28

113.258

109.771

113.902

103.048

45-0000 Farming, Fishing, and Forestry Occupations

0.0471

NR

0.0987

0.0517

0.674

1.586

0.0642

1.504

2.743

1.114

0

51-0000 Production Occupations

45.841

39.15

92.944

58.945

68.399

81.221

106.261

53.723

48.631

70.233

33.239

53-0000 Transportation and Material Moving Occupations

59.844

40.965

85.248

71.96

72.65

62.362

66.97

68.389

42.303

47.139

41.206

0

0

0

0

0

0

0

0

0

0

0

29-0000 Healthcare Practitioners and Technical Occupations

$82,270

$72,020

$64,150

$77,640

$78,780

$88,850

$68,170

$69,550

$66,340

$70,770

$75,000

31-0000 Healthcare Support Occupations

$25,820

$29,140

$27,260

$30,890

$28,640

$28,720

$27,390

$24,040

$26,770

$25,970

$30,160

35-0000 Food Preparation and Serving Related Occupations

$19,930

$21,670

$20,140

$21,350

$21,580

$19,120

$19,010

$20,130

$19,660

$19,990

$21,620

45-0000 Farming, Fishing, and Forestry Occupations

$38,430

$23,130

$35,390

$23,310

$27,470

$27,410

$37,760

$33,200

$25,720

$33,930

$29,300

51-0000 Production Occupations

$31,450

$32,950

$38,860

$33,590

$39,240

$33,690

$49,470

$43,660

$31,020

$32,040

$35,520

53-0000 Transportation and Material Moving Occupations

$30,390

$31,100

$32,780

$32,710

$38,240

$28,670

$34,080

$33,950

$29,170

$28,190

$31,310

5

4

8

7

11

3

8

6

1

2

10

Subrank Occupation-Specific Salaries (Annual Mean)

Subrank Education 2015 Population less than High School Diploma

10.35%

11.11%

17.14%

15.04%

17.64%

17.22%

15.27%

19.05%

17.30%

13.99%

6.16%

Population at least High School Graduate as a % of Population 25+

89.65%

88.89%

82.86%

84.96%

82.36%

82.78%

84.73%

80.95%

82.70%

86.01%

93.84%

Population (at least) Some College as a % of Population 25+

59.97%

69.88%

52.29%

62.36%

58.86%

53.80%

48.87%

53.15%

45.46%

57.03%

73.00%

Population (at least) Associates Degree as a % of Population 25+

31.58%

48.69%

25.71%

39.94%

37.26%

31.12%

23.96%

27.48%

21.95%

30.96%

47.03%

Population (at least) Bachelors Degree as a % of Population 25+

21.53%

42.29%

18.18%

33.39%

31.11%

22.11%

17.13%

20.54%

17.31%

22.24%

36.09%

7.43%

14.60%

5.58%

11.09%

10.87%

7.66%

4.89%

7.53%

5.33%

8.38%

14.37%

4

2

10

3

5

7

9

7

11

6

1

Population Graduate/Professional School Degree as a % of Population 25+ (Source Invest BC Communities) Subrank Tax Regime

10

10

10

10

10

10

10

10

10

36

20

State Sales Tax (Average)

State Corporate Tax Climate Score

6.25%

6.25%

6.25%

6.25%

6.25%

6.25%

6.25%

6.25%

6.25%

4.00%

2.90%

Property Tax as a % of Income

3.87%

3.87%

3.87%

3.87%

3.87%

3.87%

3.87%

3.87%

3.87%

2.95%

3.72%

3

3

3

3

3

3

3

3

3

1

1

Subrank

64

CO MSA

Colorado Springs,

MSA

Columbus, GA-AL

Station, TX MSA

Huntsville/College

TX MSA

Corpus Christi,

Arthur, TX MSA

Beaumont-Port

Waco, TX MSA

Sugarland, TX MSA

Woodlands-

Houston-The

Arlington, TX MSA

Dallas-Fort Worth-

Longview, TX MSA

TX MSA

Austin-Round Rock,

TX MSA

Killeen-Temple,

Access to Employees and Transportation Population within 45 minutes drive time

477,300

1,672,761

404,144

5,421,197

5,633,734

389,631

426,747

471,423

334,632

421,228

776,411

1.77%

2.05%

0.71%

1.18%

1.60%

0.85%

0.63%

0.94%

1.85%

1.30%

1.19%

Household growth within 45 minutes drive time 2010-2015 Median Household Income w/in 45 minutes

$54,077

$62,741

$43,391

$61,348

$61,126

$42,783

$46,332

$47,097

$56,591

$40,819

$54,852

Median Disposable Income w/in 45 minute

$45,674

$52,798

$37,306

$52,077

$51,850

$36,930

$39,156

$39,615

$48,499

$34,038

$45,230

Miles to Major Airport

118

10

150

20

20

111

93

151

61

6

11

Medium

Medium

Large

Large

Large

Medium

Large

Medium

Large

Medium

Medium

Number of Interstate Highways

1

1

1

4

3

1

1

0

1

1

1

Subrank

5

3

9

2

1

11

8

9

4

7

6

Airport Type

Climate and Natural Hazards # Days of Precipitation per year

78

82

97

79

107

78

104

77

78

111

87

Annual Precipitation (in inches)

31.3

33.0

45.0

32.0

48.0

31.3

55.1

29.0

25.0

51.0

16.0

Annual Snowfall (in inches)

1.5

1.0

1.0

3.0

0.0

1.5

0.5

0.0

1.5

0.5

40.0

Annual Days with Thunderstorms

49

41

54

46

69

45

64

31

49

58

59

Tornado Risk

20

31

31

44

41

28

64

43

9

21

18

Hurricane Risk

15

17

14

11

66

18

55

39

34

28

0

5

1

2

2

10

4

11

6

6

8

8

Subrank Crime and Quality of Life Violent Crime 2012/2013

359.3

292.7

432.4

344.7

561.5

406.0

529.1

561.4

397.3

413.0

377.9

Property Crime 2012/2013

3,676.5

3,431.2

3,652.4

3,175.9

3,488.8

3,507.2

3,248.2

4,260.8

2,681.5

4,930.0

3,274.4

Cost of Living Index

76.5

89.2

74.4

89.0

86.3

76.6

79.5

79.9

85.0

83.6

97.3

Average Commute Time to Work

23.1

28.5

23.5

30.3

31.6

21.5

23.4

22.4

20.5

23.0

24.8

Physicians Per 10000 people

304.7

195.4

162.2

217.7

247.2

201.5

159.2

220.6

195.6

220.7

196.0

# of Hospital Beds

252.9

206.9

384.1

256.7

305.1

344.7

516.7

582.9

245.6

579.8

172.7

Subrank

1

9

5

8

11

1

5

3

3

5

9

65

APPENDIX C: ECONOMIC DEVELOPMENT ORGANIZATIONS Create a County-Wide Economic Development Organization: In order to take positive steps to promote growth and prevent stagnation a greater level of collaboration and cooperation is required. Collaboration and cooperation will depend on creating one economic development organization within the County. Coryell County and its communities are too small to have separate marketing and economic development programs and be effective. Funding, incentives and responsibilities can be clearly defined within one entity. Economic Development Corporations can continue their programming yet achieve higher impact by a combined effort. Presently, there are disparate efforts in the County, the first step is to agree on one entity to market the County. Economic development initiatives will continually evolve and be influenced by the individuals who are involved. An effective working organization can encourage entrepreneurs, support job generators and generate investment. The County Commissioners and County Judge have an opportunity to bring together all of these parties to develop a consensus on the right organization for the County. There are three possible organizational structures for the County’s economic development efforts: • An organization within County government; • A marketing alliance among economic development entities; • And, an economic development corporation with public and private membership. The responsibilities and funding considerations vary for each, but all act as the single point of contact for business prospects. Government based: For economic development organizations that are integrated into County government, they are funded through the County budget and ruled through the Commissioner’s Court. They are staffed and operate fully as a department within the County government. They are not governed by a board. Several counties directly fund and staff their economic efforts. It is worth noting that the counties that engage in this are substantial in population and labor force. Marketing Alliance/Partnership: Some counties within the Texas work together under a regional marketing alliance. One of the largest is High Ground which includes the cities Amarillo, Odessa, Midland and Lubbock. The Economic Alliance of Brazoria County is another example. The funding is membership based and do not receive sale tax revenue. Activities are limited to marketing efforts. Economic Development Public Private Non-Profit Organization: More common is the model for counties to form nonprofit corporations which are comprised of public private membership and a board of directors. Generally, they are funded through memberships and do not collect sales tax. Activities include marketing, development assistance, incentive and workforce training coordination.

66

Coryell County political realities: No economic development effort is free of political city and the County, between the region and the state all create tensions and territorial

Who is involved in Economic Development?

positioning. Moreover the equity from development and its costs and benefits creates

• Coryell County Commissioners Court

powerful debate within every economic development relationship.

• County Judge

issues. The distribution of influence between the public and private sector, between the

The strategic opportunity for the County is to directly acknowledge these tensions and

• City of Copperas Cove

the County and the region. The shared interest of all of these political actors is the

• Mayor and City Councils of Copperas Cove, Evant and Gatesville,

improvement in the quality of life for its residents, and in providing opportunity for

• City of Gatesville

progress. Growth oriented leaders will encourage public-private collaboration.

• City of Evant

Formalizing these relationships provides for clear communication to attract business.

• Gatesville Economic Development Corporation

build in structures and agreements based on respect and common interests within

Presently, both Copperas Cove and Gatesville have formed economic development corporations under Texas Chapter 590. The County has created an Economic

• Copperas Cove Economic Development

Development Board. Additionally, each municipality has a significant role in attracting

• Copperas Cove Industrial Foundation

and retaining businesses. Within the municipalities, both the elected officials and

• Central Texas Workforce Commission

staff are involved in economic development. There is disparity in the funding, staffing

• Chamber of Commerce of Gatesville

and responsibilities between each of these entities. This limits the ability to act timely, independently and successfully.

• Chamber of Commerce of Copperas Cove

Coryell County has an opportunity through the Central Texas Council of Government

• Coryell County Economic Development Board

(CTCOG) to act regionally on economic development. This regional organization has the ability to direct funding and resources to benefit its member community’s growth.

• TXU Energy

The question of influence and impact may diverge because other members have larger

• Atmos Energy

economies.

• Agri-Life extension of Texas A&M

Coryell County will need to collaborate and coordinate both within the County and within the region.

• AT&T Southwest • Time Warner Cable • Central Texas College • Oncor 67

Examples of Public-Private Partnerships: The San Patrizio County Economic Development Corporation is formed as an IRS 501.C6 and is governed through bylaws authorized by the County Commissioner’s in 1992. This County-wide representation is made up of membership from municipalities, chambers and industry. They are funded through this membership base, although the largest funders are the County, port and major industries. Municipalities contribute $.50 per capita to the organization. They actively engage in business recruitment and retention, and most importantly are the first stop for industries who wish to locate in the area. From this organization the business prospect is then directed to the appropriate municipality. Half of the cities within this County have economic development corporations. Within the County the organization will work on incentives and infrastructure support for each prospect. The organization also works effectively on a regional level with the Corpus Christi EDC and view this entity as their “big brother.” Together with the Corpus Christi EDC they focus on the metro area. They are staffed with three full-time staff as well as two staff members funded under a grant. Another active County-wide economic development organization is the Orange County Economic Development Corporation which operates under Texas statute 590.6 but is not a sales tax receiving entity as a 4A or 4B corporation. They entered into an inter-local agreements with municipalities which stipulate the membership structure, activities and funding. Orange County EDC is 45% funded by the Port of Orange, 30% by the County, and the balance is funded on a per capita basis by the municipalities. They’re able to engage in any activity that a 4A or 4B can. Orange County is a “one-stop clearing house” for prospects and they funnel them to the best geographic fit. The Orange County director has stated that their “organization works well and has lots of flexibility but you have to have cooperative entities all around the County.” Orange County has a staff of two. The first year of their formation they did not hire a director, instead they built up their funds to have a little more capital for projects.

Texas County-Wide Economic Development Organizations Population 2013 Bexar County Economic Development

County Government

1,800,000

876,805

Denton County Economic Development

County Government

728,799

416,712

Greater Fort Bend County Economic Development Council

Public-Private Nonprofit

652,365

341,527

Economic Alliance of Brazoria County (Angleton)


330,242

167,607

Galveston County Economic Alliance


306,782

158,270

Jefferson County


252,358

111,100

Johnson County EDC


154,707

75,023

Orange County EDC


82,957

37,977

76,192

24,796

Coryell County

68

Labor Force August 2015

San Patricio Economic Development Corporation


64,804

30,239

Waller County Economic Development Partnership


43,205

21,266

Matagorda County EDC


36,702

18,267

Zapata Economic Development Corporation


14,018

7,046

APPENDIX D: SUMMARY OF INTERVIEWS Our consulting team conducted several interviews with businesses, civic leaders, nonprofit leaders, and government officials. We are grateful to them for their time and for their participation. These interviews have yielded distinct perceptions of the strengths and weaknesses of Coryell County. In this section we have categorized the comments. In many cases there are contrasting views on the issues. Overall Coryell County stakeholders noted four attributes: • All respondents expressed support and stressed the importance of Fort Hood in keeping a stable economy. • Local and state officials received high praise from businesses for their cooperation and welcome. • Coryell County’s natural assets and nearby medical facilities and higher education facilities were important assets for all. • Lastly most interviewees expressed that the quality of life as “good”, and enjoy the access to major cities within an one to two hours’ drive. Through the course of the interviews several themes surfaced relating to the County’s strengths weakness, threats and opportunities. It was common for Fort Hood to be mentioned as both a strength and a weakness. Fort Hood was repeatedly cited as an “economic engine for the area” which “stabilizes the trade area and allows it not to be subjected to the market cycles.” While interviewee’s involvement with the installation varied, there was universal opinion that Fort Hood was important to the region. “Can’t be overstated how important, directly or indirectly Fort Hood is to the area.” Others expressed caution and concern about potential changes that, “Fort Hood is just like any industry that can up and go. It is a concern.” (While many of these perceptions are born out in the quantitative data, the location of Fort Hood has not insulated it from the federal government budget cuts.) Another common area of comments was regarding infrastructure and resources. Whether it was the recently completed I-190 Bypass in Copperas Cove or the water network, there were comments on the County’s strengths in location and roadways. Interviewees frequently cited the bypass as helping development, “make getting in and around the businesses easy, we go where we need to go, we will go where we need to shop.” In addition to the bypass, the assets that were generally mentioned were the Killeen Airport, Cove Technology Park and the medical care available outside the County. Both Central Texas College and Texas A & M Central Texas were overall strengths for most stakeholders. These assets were frequently mentioned by both the business and government sector. One business noted that Central Texas College has done “a good job at getting at specific skills.” All businesses interviewed described the need for an educated workforce and described the regions educational assets as a “generator of an educated workforce. “ “Amazing things happening in Cove because of good planning and progressive thinking, and investment in infrastructure,” according

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to one private sector interviewee. This comment echoes the generally positive feeling expressed about the Cove by the businesses. One stakeholder noted that the “reason people are flocking to the Cove, great services, and proximity to major highway. The recent investment made by the City and the Copperas Cove Economic Development Corporation was highlighted as a positive for the area. Another facet of Copperas Cove that was mentioned that, it “is a microcosm of the country.” Communication and collaboration Economic Development in Coryell County is a nascent activity and perceptions of economic development entities were polarized among interviewees. For businesses there was universal high praise for local and County officials and the County was described as having “very good people, people who are really community minded.” Another commonly expressed strength was the high level of community collaboration around Fort Hood. Nonetheless a weakness for the County is the disconnection between the communities of Gatesville and Copperas Cove. There was an oft stated perception that, “there is a world of difference in the culture in the two communities.” Those interviewed from Gatesville generally believed that Copperas Cove has a “strong military presence and the community frequently turns over.” Bookending this was the Copperas Cove perception that while the 25 miles of distance is not a lot, “that 25 miles is pretty significant as far as communication goes. “ These perception held true for all interviewees. An overall weakness is that the cities are not used to working with a region. Workforce

We are a community, not an “us and them.” Business Interviewee

Perhaps the area of greatest concern for businesses was the quality and availability of the workforce. Frequently businesses cited the lack of professionalism and education, basic education” as a large concern. Many people shared the sentiment that County residents are “engaged, take pride in work, and believe in helping people. Yet other businesses were hesitate about expansion possibilities,” there is a “big question about locating here; do we have the workforce?” Employers expressed that while their current workforce was “fantastic, they care about what they do” they had concerns about future hiring. One business noted that there are “many more jobs than we have applicants.” Skilled jobs such as welders and heavy equipment operators were listed as difficult to fill. Pay, work ethic and skills were cited as the reason there were concerns. Several business described themselves as having above average wages and one expressed that “See a lot of businesses that don’t pay a darn.”

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The employment of personnel exiting Fort Hood was mentioned frequently. “We would love to hire Fort Hood people but the pay expectation is out of scale with what we pay.” There is a definite perception and confusion regarding the Fort Hood exiting personnel some believe “businesses think that they (soldiers) are receiving retirement so they don’t think they have to pay higher wages.” Others attributed their difficulty in finding personnel to “competing with Fort Hood or prisons, couldn’t offer those benefits here.” All businesses utilized of a range of recruitment methods from Craig’s List to hiring fairs, to transition assistance programs to recruiters for professional staff. It was the recruitment of professional staff that was most difficult for companies. “Drawback is the location (for recruiting people) Hard to recruit professional people to the area.” Although there are workforce training services available few of the interviewees had availed themselves of the services. Civic interviewees expressed the need to change the quality of jobs and the pay of the jobs, stating, “Pay is much less that other parts of the state.” Moreover, government officials and civic affiliated interviewees believed there needs to be “Diversification of jobs, more options in industry.” A grim insight was offered by one business that the economy is “broken to a point where people are trying to find good paying jobs. Have a very recessed County, very distressed talent pool. The people have been out of work for a long time.” A stealth concern brought up by many in the business community was drug screening. Several interviewees mentioned that their businesses require drug screening and they are having difficulty on two fronts: workers ability to pass the test; and administering the test. The problem was described by one interviewee, “Coryell is not pro safety. They do not follow the regimen that has put forward by other areas, they do not tend to make it a priority, health care does not make it a priority to partner with businesses on drug testing. Unfortunately this will inhibit some businesses from coming to Coryell.”

“Community here is routed in blue collar work force, not a lot of white color here. Talent pool is laborer who have a basic knowledge of some things and a basic misperception of some things – what is actually being asked of them. “ Business Interviewee

Infrastructure Infrastructure provided a more hopeful picture with some caveats and differing needs by region. Overall electrical was great. The businesses in the north and west areas of the County had concerns regarding water and broadband access. Copperas Cove area businesses had the highest satisfaction with infrastructure citing the new roadways and upgrades and extensions of waste water lines and water lines were all very positive. The region’s lack of direct access to an interstate was a negative. In contrast, some said that the access being a half hour away meant affordable land prices. The Killeen Airport was cited as favorable for several businesses including for business travel. 71

Gatesville, Evant and Copperas Cove all received comments regarding their lack of curb appeal. “Gatesville looks like nobody cares, need to be deed restrictions or something. Pot holes and the city is always repairing the water pipes. I guess they don’t care.” Copperas Cove had the most positive remarks. One business praised both the city and the, “Economic development group has done an exceptional job, there is a different look and feel now.” A common view offered regarding infrastructure investment by nonprofit leaders and civic officials was that there were, “a few who want everything but don’t want to pay the price for that.” Quality of Life Most interviewed agreed that the quality of life is good especially for those seeking a rural life. “From what I can tell, good quality of life, very affordable.” Housing, low traffic and “30 minutes in any direction to anywhere for shopping” were highlighted by respondents. Several interviewees mentioned that, “What

“We are nobody’s little brother. We need to compete ... head to head.”

makes it cool, is that the Cove is a microcosm of the country. It is not segregated in the Cove.”

Civic Leader However frequently mentioned concerns were the lack of more amenities such as entertainment, recreation and restaurants. “Soldiers will tell you there is not enough recreation entertainment for families.” Interviewees expressed that the County has been successful in drawing folks that want to live in a rural setting yet want proximity to urban things. In Coryell County you get, “Quality of life living in the County and still be 20 minutes to Killeen or an hour to Austin.” “Never boom here but don’t fall far when we turn down ….just comfortable to be here Good quality of life for us.” Competitiveness Fort Hood and land were cited by interviewees as being strength’s for the County’s competitiveness. Entrepreneurship and low industry were mentioned as weaknesses. Overall threats and opportunities were the same: namely, Fort Hood. With nearly a quarter of the US army stationed in Texas, the importance of the military installations to the economy was noted by several interviewees. The relationship and dependency on Fort Hood was primarily a positive for most people but many were cautious about changes at Fort Hood. There was a widely held belief that, “We are very insulated because our economy is last to go into recession and first to come out.” Coryell County has not had army affiliated contractors locate in the County. A questions was raised by an interviewee as to whether the County has what is needed “when a defense contractor comes to town wants flexible spec building?” 72

The County has an advantage when it comes to land area according to many interviewees. Business all stated that there are “low land and building acquisition costs.” There was a general sentiment that as lands can be improved for growth, water and sewer and utilities, then, “there is an unbelievable amount of potential for growth.” Several interviewees stressed the impact of investment in infrastructure, “The areas that have developed have developed for a reason, proximity to the state highway.” While some described a large entrepreneurial spirit in Coryell County there were others who characterized the area as, “Don’t think we have a culture of start-ups, – no informal groups that offer VC money.” The sense of entrepreneurship was mixed. No interviewees identified a source of capital while others held there are opportunities. “As long as you are capable – have an entrepreneurial spirit – willing to work to make their businesses succeed.” “Lot of soldiers who say they want to start their own business when they get out.” Interviewees had a mixture of ideas and insights on the industrial mix of the County. Many felt that there was “not much low hanging fruit” in terms of industry attraction. Frequent mention was made of the opportunities presented by SpaceX, located in McGregor (next to the County) An insight provided by one interviewee is that the location of SpaceX had less to do with incentives and more, “because the conditions were right for what they wanted to do. Maybe you should support the businesses here and help them be more successful. Coryell will become stickier and who you want to be.” Business interviewees noted that, “Tax abatement is expected and helps us compete” but that it is not a driver of economic growth or location decisions. Business interviewees noted that the distance from the interstate can be logistically challenging for some tech industries. Gatesville was described by several interviewees as “not very diversified” in terms of industry. The prison campus located in Gatesville was described as a “Big part of economy, many people have jobs there. Across the board, if we didn’t’ have the prison system we would not have had those choices.” Interviewees from all sectors had comments on the role of government in economic development. While many

...help make the businesses here more successful and Coryell will become “stickier”. Business Owner

felt that the County was responsive, others said the cities were “too slow on the trigger and overly conservative fiscally doesn’t serve in business. Have to be aggressive.” Many of the interviewees responded when asked what was working well and what wasn’t in the County that the County was “a diamond in rough for industry” and the County and communities have “done a poor job of projecting an image of any kind.” There was sense from the businesses that the area needed to accept their role in economic development and “embrace the change in the ways the economy grows.” Generally most interviewees spoke of the County and its communities with much optimism and encouraged the community to “embrace who they are and how they work.” 73

Conclusion The candor and forthrightness with which participants shared their thoughts was valuable. These impression are useful when they are balanced with the quantitative information we have gathered in this phase. The comments provide guidance on how and what needs to be communicated to the community. Business Environment: Through the course of the consulting team interviews several themes emerged regarding the counties strengths, weaknesses, threats and opportunities. It was common for Fort Hood to be mentioned as both a strength and a weakness. Fort Hood was repeatedly cited as an “economic engine for the area” which “stabilizes the trade area and allows it not to be subject to the market cycles. “The chart below summarizes and categorizes the comments from the stakeholder interviews.

Issues and Perceptions Matrix STRENGTHS

Frequently Mentioned

Occasionally Mentioned

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WEAKNESSES

OPPORTUNITIES

THREATS

Fort Hood

Coordination

Regional cooperation

Fort Hood changes

Bypass

Communication

Retirees

Weak soft skills

Central Texas College

25 miles Cove to Gatesville

Market the region

Water

Cove EDC

Distance from interstate

North Fort Hood

No regional collaboration

City of Cove

Broadband

Military workforce

Lack of industry

Airport

Workforce skills

Off channel reservoir

Curb appeal

Medical Care

Water

Cove infrastructure investment

Not used to working regionally

Gatesville: small town feel

No training facility No startup culture Salaries can’t compete with Fort Hood and prisons

Cove business park

No major industry

Entrepreneurship spirit

Taxes too low

Land

Lack of upscale shopping

Retired military

County not collaborator, it’s a competitor

Texas A&M Central Texas

Slow decision making

Diversity of Cove

Low wages

Community minded

Community

Evant’s 281 corridor

Family farms

Prison employment

Population growing

Disconnect between Gatesville and Cove

Cove quarterly summit

Low property values

Infrastructure

Gatesville ties to prison

Waco area

Not a draw for professionals

Lack of retail and service

P R E PA R E D B Y

Susan Yanofsky SUSAN YANOFSKY CONSULTING 5911 Glendora Avenue Dallas, Texas 75230 214-489-7959 [email protected]

I N A S S O C I AT I O N W I T H

INVESTMENT CONSULTING ASSOCIATES 2345 Washington Street Newton Lower Falls, MA 02461 617-314 - 6527 www.IC-associates.com

NOVEMBER 2015

CORYELL COUNTY ECONOMIC DEVELOPMENT & MARKETING PLAN SUSAN YANOFSKY CONSULTING IN ASSOCIATION WITH INVESTMENT CONSULTING ASSOCIATES 76