Pasadena ISD September 28, 2012 Bob Mitchell President Bay Area - - PowerPoint PPT Presentation

Pasadena ISD

September 28, 2012

Bob Mitchell

President Bay Area Houston Economic Partnership

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• Who is the Bay Area Houston Economic

Partnership?

• Economic Climate in the Nation/State/Region
• Ellington Airport
• Johnson Space Center
• Storm Surge Suppression

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• 35 years
• 275 funding members
• 13 Cities, 2 Counties
• Port of Houston Authority
• 5 School Districts
• 800,000 residents live

and work in the region

• 501(c)(6)

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• Aerospace & Aviation
• Maritime
• Specialty Chemical
• Healthcare/Life Sciences

Regional Industry Clusters

• 25 Manufacturing
• 14 Chemicals & Plastics
• 4 Office
• 3 Aerospace / Aviation
• 3 Warehousing / Distribution
• 2 Bio / Medical / Health
• 2 Retail Sales
• 2 Information Technology
• 1 Defense and R & D
• 1 Recreation/Tourism/Hospitality
• 1 Housing

58 Current BAHEP Projects

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• Economic Climate
• Nationally
• Statewide
• Regionally

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• Profits are high, but cash is idle
• Borrowing costs are low
• Focused limited new hiring
• Complaints about “over-regulation” and

“uncertainty”

The Current U.S. Business Environment

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• Wage growth is minimal
• Still working off personal debt
• Concerned about losing their job
• Concerned about their home value
• Rethinking their retirement plans
• Trying to save more

Consumer Health

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• Threats of the $5 trillion “fiscal cliff” scaring the public

1) Expiration of Bush Tax Cuts 2) End of 2% payroll tax holiday 3) Extended unemployment compensation benefits end 4) Automatic across-the-board spending & budget cuts kick in (sequestration)

• What is Sequestration?

A mechanism through which automatic, across the board spending cuts are made

• The Budget Control Act (BCA) of 2011

Aims to reduce the deficit by $2.3 trillion over 10 years

• For example, the hit on Defense could be significant

– $485 billion already decided & $600 billion more with the across-the-board cuts

• NASA $1.4 billion

Source: Real Estate Center at Texas A & M University, Mays School of Business

What About That Fiscal Cliff in December?

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• Texas versus the U.S.

Texas Job Growth

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Texas Comptroller Susan Combs announced that “state sales tax revenue has now increased for 27 consecutive months”

City 2011 Year End Increase Jan-Sept 2012 Increase Dickinson 16.02% 26.08% Friendswood 4.24%

• 3.77%

Houston 7.35% 12.46% La Porte 3.50% 23.62% League City 5.51% 9.60% Nassau Bay 12.62% 13.89% Pasadena 5.17% 7.78% Webster 8.18% 3.31%

Economic Climate in the Region

Eagle Ford Drilling Permits Issued Total 2010 – 1,010 Total 2011 – 2,826 YTD 2012 - 3,326

Source: Real Estate Center at Texas A & M University, Mays School of Business

Bayport No. Industrial Park & Distribution Center Pasadena Light Industrial District

New! Air Liquide is building a new hydrogen plant in Bayport Industrial District New! NA Industries is building a $100 million polymer facility in Bayport Industrial District – 60 new jobs Calpine Corporation leased 83,500SF for its turbine maintenance group -- Bay Area Business Park New! Kuraray America is building an approx. $300 million PVOL resin chemical plant in La Porte – 110 new jobs – and will expand its EVAL plant in Pasadena - $49 M investment – 15 new jobs. Nestle Waters North America has opened a 312,000 SF facility for its bottled water

• peration. Three

manufacturing lines – 50 employees each line. New! Lummus Technology is building 20,000 SF office and 80,000 SF manufacturing facility - $31 million investment – 35 new jobs New! Celanese Corp. will build a new methanol production plant – approx $500 million to $1 billion investment New! Oxiteno, a subsidiary

• f Brazilian-based

Ultrapar Holdings, will start up a new specialty chemical plant in Bayport - $30 million investment LyondellBasell expanding capacity at La Porte ethylene plant -- $500 million investment for all Houston-area projects

La Porte Pasadena

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

• All a result of the Eagle Ford shale and the

widening of the Panama Canal

• 2010-2012 $15 Billion spent on projects

along the Houston Ship Channel

• 2013-2015 $20 Billion in planned projects
• More than 20,000 new skilled labor jobs
• ver the next 6-8 years

Chemical Industry Expansion

Natural Gas Prices $/MmBTU

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Texas Eagle Ford Shale 2008-2012

358

11,986

Source: Texas Railroad Commission

2010 & 2011 industrial leasing deals totaled over 2.6 million SF – just counting the big deals over 40,000 SF! Tenants included Jacobson Warehouse Co., Nestle Waters North America, Frontier Logistics, United DC, Ferguson Enterprises, FedEx, International Distribution Corp., Supply Chain Management, Transportation Consultants, Calpine Corporation, Hermann Services Southwest, Starplast USA, Doerle Food Service, and Hyduke Energy Services. Highlights of 2012 industrial leasing deals – 727,610 SF so far this year Gulfwinds leased 247,240 SF at Port Crossing, La Porte Floor & Décor Outlets leased 109,000 SF at Bay Area Business Park, Pasadena International Distribution Corporation leased 100,000 SF at Bayport North Distribution Center Jacobson Warehouse leased 55,000 SF at Bay Area Business Park, Pasadena Tyco Valves & Control leased 45,000 SF at Bayport North Industrial Park Honeywell International leased 44,000 SF at Bay Area Business Park, Pasadena City Farm Energy Corporation leased 41,250 SF at 2439 Albright, Pasadena Energy Maintenance Services leased 27,120 SF at Bay Oaks Business Park, Pasadena American International Shipping leased 27,000 SF at 8201 La Porte Rd., La Porte Catalyst Trading Company leased 22,000 SF at 8211 La Porte Freeway, La Porte Morrison Supply leased 10,000 SF at 305 E. Walker, League City

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Bay Area Houston Industrial Activity

Recent announcements --

• Ellington Air Cargo on 51 acres -

$70-80 million investment

• New aviation museums including the

Lone Star Flight Museum

• New training center, logistics center,

battle command center and $30-40 million hangar

• New terminal, tower and federal

inspection station for U.S. Customs and Border Protection -- $10.8 million investment

• New public hangars - $60 to $70

million investment

• Under construction! 117,000 SF

US Coast Guard regional campus -- $50 - $57 Million investment Approximately 480 acres available for development in Ellington Airport area. Best uses: office, aviation, institutional and industrial.

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Ellington Airport

• U. S. Coast Guard facility under construction;

completion expected in 2012. 117,000 SF, 4 stories. $50-$57 million

• investment. Over 350 will be working at this

new regional facility. Rendering – Lone Star Flight Museum Includes gift shop, café, auditorium & vintage aircraft displays Ellington Air Cargo site

Rendering - USCG facility USCG facility underway

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Ellington Airport

NASA Johnson Space Center

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

NASA Johnson Space Center (JSC) had nearly $5.0 Billion in FY12 Procurements including:

• $70.7M with women-owned businesses
• $13.1M with veteran-owned businesses
• $17.6M with education and non-profits

14,000 Contractor and Civil Servant Employees

• Generating a payroll of nearly $1.58B

JSC Impact on the Region

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Orion and Space Launch System

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

NASA awarded three Space Act Agreements in the third round

• f the agency’s Commercial Crew

Development. The winners were Round 2 Round 3 Boeing $92m $460m Sierra Nevada $80m $212m SpaceX $75m $440m

Commercial Crew (CCDev-2)

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

A Coastal Barrier Protecting the Houston/Galveston Region from Hurricane Storm Surge

9/28/2012

A Coastal Barrier Protecting the Houston/Galveston Region from Hurricane Storm Surge

The Ike Dike

• Hurricane Ike caused $30 billion in damages, September 13, 2008
• The region is affected by a major storm about every 15 years
• Large-scale evacuations are increasingly difficult
• 5+ Million people, expected to increase by 2 million by 2050
• Port of Houston alone -- $117 Billion annual economic activity
• Galveston Bay home to a vast petrochemical complex producing
• more than 26% of the nation’s gasoline
• 40% of its feedstocks
• 46% of its jet aviation fuel

Surge Protection, Why?

Protecting our citizens is always important, but safeguarding our industrial sector from the devastating effects of future storms is a matter of national security and -- It must be protected!

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Greater New Orleans is now protected by a 133 mile perimeter of levees, flood walls and gated barriers. The total cost of Greater New Orleans Hurricane and Storm Risk Reduction System so far is $14.5 billion

• dollars. The strategy is to keep massive surges from entering the system by shortening the outer

protection needed by using 4 gated passages. The System was started in 2008 and achieved 100-yr surge event protection in June 2011.

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Bolivar Roads

Intracoastal Waterway

• San Luis Pass

Existing Seawall

High Island

Houston Ship Channel

A coastal spine with gates shortens the protection needed in Texas

Levee System Ship Channel Gate

Animation of the Dutch gates closing

BAHEP – At the Forefront of Storm Surge Protection

• What has BAHEP done so far:

– Through its International Maritime Advisory Committee, BAHEP helped establish the 6-county Gulf Coast Protection and Recovery District. – Hosted the inaugural Galveston Bay Storm Surge Suppression Technical Workshop & Symposium on 9/15/11, working with TAMU- Galveston’s Dr. Bill Merrell. – Participated in the New Orleans surge barrier tour with Texas officials, including the Texas General Land Office (a key financial partner in any local solution). – Given more than 40 ‘Ike Dike’ presentations to local audiences on the need for storm surge protection. These presentations counter the Rice University SSPEED Center’s barrier design (which plans for a levee directly along SH 146, inundating east La Porte in future surges). – Toured the Delta Dutch Works in the Netherlands, September 2012.

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Dickinson

Stores planned are: Direct Tool, Elizabeth Arden, Kitchen Collection, Samsonite Co., Ultra Diamonds, Coach, Lids, Fossil, Kay Jewelers, Sunglass Hut, Aeropostale, American Eagle Outfitters, Ann Taylor, BCBG, Banana Republic, Brooks Brothers, Calvin Klein, Carters, Claire’s, Coach, Chicos, Gap, Guess, Izod, J. Crew, Jones New York, Lane Bryant, Loft, Levi’s, Nine West, Michael Kors, New York & Co., Kasper, Jos. A. Bank, Talbots, Van Heusen, White House Black Market, NYDJ, Perry Ellis, Columbia Sportswear, Nike, Old Navy, Polo Ralph Lauren, Puma, Under Armour, Disney, Justice, Crocs, Clarks- Bostonian, Converse, Famous Footwear, Finish Line, Nike Factory, Robert Wayne, Vans, Naturalizer, Skechers, Vans, Gap, Gymboree, Hartstrings, The Children’s Place, Samsonite, Kenneth Cole, Cole Haan, Bass, Zumiez and Aldo. More will be announced soon.

Tanger Factory Outlet Mall under construction! 60,000 SF Buc-ee’s planned just north of the mall.

Texas City

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority

Tanger Grand Opening Weekend October 19-21

Thank you! Bob Mitchell Bob@BayAreaHouston.com 832.536.3255

Clear Lake Shores Dickinson El Lago Friendswood Houston Kemah La Porte League City Nassau Bay Pasadena Seabrook Taylor Lake Village Webster Harris County Galveston County Port of Houston Authority