Katy Area EDC Annual Review - 2014& Work Plan Highlights - 2015

April 21, 2015

Presented by:Lance LaCour, President/CEO

2014 Executive & Nominating CommitteeExecutive

Woody Mann, Jr., ChairmanKerry Gilbert, Vice

ChairmanJoe Simmons, Treasurer

Katrina Katsarelis, Secretary

Stan Stanley, Immediate Past Chairman

Jason LawsonDan Boggio

David Woodham

Nominating Stan Stanley, ChairJason LawsonDavid WoodhamAudrey GilbreathKatrina Katsarelis

Woody Mann, Jr.

Stan Stanley

2014 Administration• Implemented Katy Area 2014 Work Plan & Accomplished over 80% of the

objectives and tactics• Finished 2014 “In-the Black” & Conducted 2013 Audit• Scheduled 10 Industry Specialists for General Assembly Meetings Made 9

Presentations to Civic Clubs• Conducted Successful EDC Golf Tournament that Raised $22,000 in

Sponsorships• Donated $2,000 to Area Charities

• 2014 Golf Tournament Committee:

Steve Reichardt – Weston Lakes Country ClubAnthony Francis – LJA EngineeringRaul Wong – Halff AssociatesMichael Garza – Tradition Bank

David AsaudChad CraftAngela Thomson

Year End 2014 Membership Committee

• 31 Board of Governors Members

• 20 Strategic Partners121 Associates

• Total Membership = 172

4 New Board of Governors 2 New Strategic Partners 2 New Associates

New Board of Governors Members:• Houston Methodist Hospital• Texas Children’s Hospital West• Kurt & Associates, LLC• Woodcreek, LLCNew Strategic Partners: • LJA Engineering• Westpark Springs Hospital

Stan Stanley Rick Lawler Frank Lombard

10th Anniversary Event10 Years in Progress

• 180+ Attended program• Accomplishments 2003-

2013• 13,000 Jobs• $1.3 Billion Capital

Investment• $3.0 Billion in Economic

Impact• 7,000,000 SF• $1.2 Billion in

Infrastructure Project Advocacy

2014 TEDC CEDA Award

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

TALENT & LEADERSHIP

2014 Talent Committee

Stan Goss,Chairman

Alton FraileyStan GossGary JonesThomas PolvogtAnna Webb-StoreyDavid AsuadCraig BrooksDavid Woodham

Talent Committee & Leadership Task ForceButch Herod

Zachary HodgesRichard PhillipsGary WillisJason LawsonGinger Hopper

Joe SimmonsMichial AdamsKevin CarmodyPam PuckettRobert Carpenter

2014 Leadership• Two Visions of Katy Programs• 140 People Attended

1. Higher Education 2. Mobility

• White Paper Developed • EDC Mobility/Public Infrastructure Committee Forming

2014 TalentWorkforce Solutions Office Extends Annual Lease at Katy Mills for 6th Year

• Chamber / EDC / Legislative P3 Partnership• Katy Mills Exchange for Membership in EDC / Chamber for

Nominal Consideration Lease

2014 Talent• Higher Education• UH seeking State Tuition Revenue Bonds• EDC encouraged expansion for 9 years

• EDC attends NACE conference in San Antonio

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

2014 Talent• Fostered

collaboration meetings with Katy ISD CTE• Manufacturing &

Oil & Gas Program Developed

• 2,000 SF allocated at Miller Career & Tech Center

PLACE

Alton FraileyAna Villaronga-RomanAnthony FrancisBrad BarnesCarol AdamsChrista CliftonDan BoggioDiana Schauer-Tran

2014 Place-Brand CommitteePeter McElwainRichard LawlerRick BlanSabrina Scruta

Dan BoggioChair

Don MasseyDonna RangeGeorge PurvisKayce ReinaKelly HammonsLeah MarchioneLindsey KayeMichael Moore

Rick BlanCo-Chair

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

2014 Place Brand

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

2014 Selected New Home Sales

2014Cinco Ranch 451Firethorne 368Cross Creek 418WoodCreek Reserve

40

Bridgeland 96Total 1,373

Community Number of Homes

INDUSTRY

2014 Industry Committee

Kent Rosenberger

CommitteeKent Rosenberger, ChairCraig BrooksCraig RhodesFrederick BarksdaleJason LawsonJackie Wilcox

EDC 2014 Industry Marketing & Social Media

• Aligned all EDC/Brand Domains (100+) with Landing Pages

• Developed New Branding Website• Main Website• Total Page Views: 68,650• Users: 15,110• 20,571 sessions

• Facebook/LinedIn/Twitter • 472-695 Likes• 152-281 with 1,000 Impressions• 700 Followers

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Demographics Demographic Overview (2014)

Total Population 305,800 Median Income $85,550 % Male Population 49.2% Per Capita Income $37,166 % Female Population 50.8% Average Household Income $113,212

Median Age 34.3 Owner Occupied Housing Units 97.2%

Population Density 1,725.5 Vacant Housing Units 2.8%

Total Households 97,728 Household Growth from 2000 to 2014A 111.8%

Average Household Size 3.1 Household Growth from 2014A to 2019 15.4%

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Population of Katy Area TX 2013

Katy Area 305,800 Pittsburgh, PA (City) 305,841

Corpus Christi, TX 316,000

300,000

310,000

320,000

Population of Katy, TX 2013

Population & Demographics

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

139,998

256,984

305,800

343,923

46,139 84,451 92,728

112,258

Population

Households

2014-2019 Katy ISD Growth

25

Demographics Workforce - KISD

Employment  2000 2010 2014 2019 Percent Change

  Census % Census % Estimates % Projection

s % 2000 to 2010

2014 to 2019

% %

Total Pop. 16+ 98,410 186,205

218,190 254,668 89.2% 36.8%

Employed 68,779 72.9% 121,959

70.5% 147,977 67.8% 180,257 70.8% 77.3% 23.5%

Unemployed 2,823 3.9% 9,113 6.9% 7,206 4.9% 6,451 4.9% 222.8% -10.5%

Avg. Household Income

$84,178

$110,142

$113,212

$130,312 30.8% 15.1%

Median Hhld Income

$69,881   $83,712   $85,550   $99,087   19.8% 15.8%

Per Capita Income $27,797   $36,218   $37,166   $42,741   30.3% 15.0%

26

Workforce

2000 2010 2014 2019 -

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

514,479

706,973

766,874

884,971

403,764

532,535 577,579

677,704

212,753

314,313 346,107

415,850

Employment Size and Growth in the Labor Pool in Katy, Sugar Land, and The Woodlands

Katy

Sugar Land

The Wood-lands

Energy Cluster Employment30 Minute Drive Time

Mason Rd/I-10

Katy The Woodlands Sugar Land -

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000 41,000

5,580

17,808

Employment

Energy Cluster Firms30 Minute Drive Time

Mason Rd/I-10

Katy The Woodlands Sugar Land -

200

400

600

800

1,000

1,200

1,400

1,158

350 347

Establishments

Industry Employment Estimates – Katy AreaMajor Industry Sector Growth 2013-2014

Industry 2013 2014 A 2014B

Ab. Change2013 - 2014B

Forestry & Fishing 1,345 1,486 1,527 182

Mining 5,724 6,264 9,214 3,490

Construction 4,464 4,208 4,453 (11)

Manufacturing 11,670 12,103 12,226 556

Transportation, Communication & Utilities 3,018 3,038 3,124 106

Wholesale Trade 3,545 2,999 3,070 (475)

Retail Trade 18,258 19,980 19,125 867

Finance, Insurance & Real Estate 4,526 4,037 3,978 (548)

Services 36,279 39,114 39,446 3,167

Public Admin 1,400 1,342 1,386 (14)

Totals 90,229 94,571 97,549 7,320

Source: Dunn & Bradstreet 2013-2015

Engineering, Accounting & ResearchEmployment Growth

2013 2014B -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Engineering, Accounting & ResearchEmployment Growth

Engineering, Accounting & Research 11,779 14,409 16,586 4,807

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Real Estate InventoryKaty Area

Industrial2014 # of Buildings RBA (SF) Total

Vacancy1Q 248 9,742,522 8.1%2Q 250 9,758,522 7.6%3Q 259 9,942,297 6.9%4Q 260 10,006,610 7.4%

QTD 260 10,006,610 7.4%

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Real Estate InventoryOffice Katy Area – Class A

Office2014 # of Buildings RBA (SF) Vacancy

1Q 48 9,239,297 3.3%2Q 50 9,817,446 4.8%3Q 53 10,363,368 4.9%4Q 55 10,550,742 5.9%

QTD 55 10,552,742 5.8%

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Real Estate InventoryOffice Katy Area – Class B

2014 # of Buildings RBA (SF) Vacancy1Q 273 6,789,380 5.1%2Q 273 6,789,380 5.9%3Q 274 6,796,680 7.6%4Q 277 6,844,248 7.5%

QTD 277 6,844,248 8.0%

Office Market Comparison AnalysisSummary of Study• Hired DCG Corplan Consulting LLC- Site Selection Consulting

Firm• Hypothetical 200 – Person HQ Facility

• 45,000 SF Lease – Site selection consultant review• Developed Geographic Boundaries Using Katy ISD, Zip

Codes & Census Tracts To Compare Data• Five Office Sub-Markets Compared Using CoStar Boundaries

(Selected by Katy Area EDC)• East Fort Bend County (Sugarland)• Katy Freeway East• San Felipe/Voss• Westchase• The Woodlands

Katy Area Competing Markets

Office Market Comparison AnalysisSummary of Study• Econographics were compared for true Katy Area and

the 5 submarkets against the Houston MSA• 22 Topics Covered, 11 Demographics & 11 Economic Factors• Katy ranked second behind East Fort Bend/Sugarland but

tied in the Economics Section• Real Estate Review Conducted• Available real estate• Interviews with Brokers

• Operating Costs Compared• Total costs

• Katy Area #1, Westchase #2

Real EstateSubmarket Comparisons

Item Katy E. FT Bend/Sugar

Land

Katy Freeway East

San Felipe/Voss Westchase The Woodlands

Class A% 55% 41.5% 41% 32% 45.4% 37.5%

Class B% 40.5% 47.6% 34.4% 66.6% 66% 53.1%

Below Class B 4.5% 10.9% 24.7% 1.4% 5.9% 9.4%

Total SF 17.27 M 9.42 M 10.37 5.36 16.2 13.58

# Buildings 415 340 233 49 131 447

Class A Vacancy

5.4% 13% 2.8% 17.5% 10.4% 7.5%

S.F. Under Construction

2.3 MSF .217 MSF 1 MSF 0 MSF 2.3 MSF 4.8 MSF

Class A Avg. Asking Rent Triple Net

$29.12 $26.57 $36.30 $32.99 $36.93 $34.22

Summary of CostsTable 4.6 – Summary of 1st Year Costs and Final Ranking by Submarket

Katy Area

E Ft. Bend Co./Sugar

LandKaty Freeway

EastSan Felipe

/Voss WestchaseThe

Woodlands

Payroll $19,170,360 $19,981,340 $21,158,460 $21,185,800 $19,022,690 $20,200,390Rent 1,310,400 1,195,650 1,633,500 1,484,550 1,661,850 1,539,900Net Fit-out 2,475,000 2,313,000 2,313,000 2,313,000 2,313,000 2,223,000Parking 37,160 30,950 55,510 79,770 132,410 3,580Electricity $232,510 $232,510 $232,510 $232,510 $232,510 $177,970Telecom $540,000 $540,000 $540,000 $540,000 $540,000 $540,000Incentives -$95,000 -$95,000 -$95,000 -$95,000 -$95,000 -$95,000

Total $23,670,430 $24,198,450 $25,837,980 $25,740,630 $23,807,460 $24,589,840Rank 1 3 6 5 2 4

Office UserSasol HQ• 525 Jobs• 175,000 SF• Woodbranch

Office UserDNV GL Expansion• 350 New Jobs

- Total 700 Jobs• 47,500 SF• Ten West Crossing

- Mason/I-10

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

Office User

Memorial Hermann• Office Building & Hospital• 300 Jobs• 400,000 SF

• Convenient Care Location• West Park Tollway– Grand Parkway• 30,000 SF• 50 Jobs

2014 Selected User Projects and AnnouncementsOffice Project User/Development Jobs Sq. Ft. Capital Investment

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

Sub Total 654 308,016 $ 37,129,700.00

2014 Selected User Projects and Announcements

Office Project User/Development Jobs Sq. Ft. Capital InvestmentJ Q Engineering User 12 5,558 155,645.00$ Matt Leicht User 3 1,136 39,760.00$ NACE User 20 50,000 5,000,000.00$ Parson Brinckeroff User 80 29,964 1,048,740.00$ Penntex User 20 8,260 289,100.00$ Raindachem Inc User n/a 517 18,095.00$ Reel Group User 10 5,898 206,430.00$ Regus User n/a 12,373 400,000.00$ Sasol User 525 175,000 n/aServitrans User 10 3,277 114,695.00$ Southwest Document Solutions User 5 3,020 105,700.00$ State Farm Insurance User 3 1,125 39,375.00$ Unity Oil & Gas User 3 680 23,800.00$ URS Corporation User 390 130,151 LeaseVepica USA User 5 1,348 47,180.00$ William J acob Management User 3 15,638 547,330.00$ British International School User 300 270,000 60,000,000.00$

Sub Total 1,389 713,945 $ 68,035,850.00 TOTAL 2,043 1,021,961 $105,165,550.00

2014 Selected User Projects and AnnouncementsIndustrial Project User/Development Jobs Sq. Ft. Capital Investment

Ferguson Enterprises User n/a 12,118 150,000.00$ Gateway Gathering and Marketing Company User 36 23,257 n/aGoodman Networks User 35 32,878 n/aJackson Supply User 5 17,550 600,000.00$ Johnstone Plumbing Supply User 10 15,875 200,000.00$ Lone Star Provisions, Inc User 4 9,840 250,000.00$ Morrison Supply Company User 10 36,000 n/aOlympian Machine User 10 7,000 500,000.00$ Outteck User 3 1,435 n/aPulse (Acteon) User 10 7,500 n/aServi User 10 19,546 n/aWilliams Sonoma User 20 71,000 n/a

Sub Total 153 253,999 $1,700,000.00

Medical Project User/Development Jobs Sq. Ft. Capital InvestmentCutting Edge Pediatric Therapy User 7 44,500 1,335,000.00$ Dr. Syed A Raza User 5 2,000 60,000.00$ Foot Reflexology Clinic User 4 1,625 50,000.00$ Jefferson Dental Clinics User 10 4,325 120,000.00$ MD Kids Pediatrics User 10 6,300 180,000.00$ Memorial Herman User 50 30,000 5,000,000.00$ Smile Rangers User 5 1,750 52,500.00$ Texas Children's User 200 30,000 2,000,000.00$ Texas Children's User 20 6,000 180,000.00$ University of Texas MD Anderson Cancer Center User 20 35,000 2,000,000.00$ Unity Family Clinic User 4 2,000 60,000.00$

Sub Total 335 163,500 $11,037,500.00

Total/All Users 2,531 1,439,460

$117,903,050.00

Industrial User ProjectsSkybox Data Center• $70 Million in

Investment (Phase I)• 89,000 SF Phase I• 80,000 SF Phase II

Office Development ProjectsLincoln Properties• ±300,000 SF• 3 Stories• 60% Leased

- Parsons Brinckerhoff• Park Row & Park Ten

Office Development ProjectsGrandway West • 780,000 SF Total• 89,000 SF Phase I• 50 Acre Site• Value Office• Percheron - First Tenant, LJA Engineering,

Lauren Engineers• 76% Leased

Office Development ProjectsGreenhouse Office Park• 200,000 SF (Phase I)• 140,000 SF Leased to

URS (AECOM) Corp – 390 jobs

• 2nd Building: 200,000 SF

Office Development Projects

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

Developers

Office Development Projects

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

95,000 SF

Office Development ProjectsKaty Ranch Office Building I• West of Grand Parkway

on I-10• Class A• 6 Floors• ±156,000 SF

- 25% Leased• Second Building

Planned: 156,000 SF

Office Development ProjectsVerde Parc• Grand Parkway & I-10• 170 AC

Office Development ProjectsPark West Business Park • Katy-Fort Bend & I-10, up

to Colonial Parkway• 150 AC

Industrial Development ProjectsTen West Crossing• Total Build out: 552,000

SF• 134,000 SF Available• Location of Kobelco

- 110,000 SF

- 100 Jobs

55

Industrial Development ProjectsGrand Parkway Distribution Center• Morton Road & Grand

Parkway• 50 AC• Building 1: ±450,000

SF

Industrial Development ProjectsWest Ten Business Park• Spec Buildings• ± 419,000 SF Phase I

• 70,000 SF + 349,000 SF• Under Construction

• 1,200,000 SF Buildout• 65 Acres

57

Industrial Development ProjectsMason Creek Business Center• 395,000 SF at Mason Creek• 200,000 + SF Available• 120,000 – 42,000

- 12,000 SF Minimum

58

Industry Development ProjectsEnergy Park West• Katy-Hockley Cut-Off Road• 150 AC• ±30,000 SF Spec Building Under

Construction• Multiple BTS Projects

Considering Area

2014 Selected Development Projects and Announcements

Office Project User/Development Sq. Ft. Capital InvestmentGrand Ridge Office Condominiums Development 50,000 5,000,000.00$ Grandway West Phase I Development 88,000 10,000,000.00$ Greenhouse/Park Row Office Building Development 119,000 12,000,000.00$ Katy Ranch Crossing Development 156,000 18,000,000.00$ One Grand Crossing Development 172,000 19,000,000.00$

Total 585,000 $ 64,000,000.00

Industrial / Flex Project User/Development Sq. Ft. Capital Investment

Energy Park West Development 30,000 900,000.00$

Grand Parkway Industrial Park B1 Development 20,000 700,000.00$

Grand Parkway Industrial Park B2 Development 20,000 700,000.00$

Mason Ranch Industrial Park Development 654,000 23,000,000.00$

Merrell Commercial Development 30,000 1,500,000.00$ West Ten Business Park -Transwestern I Development 419,000 15,000,000.00$

Total 1,173,000 $41,800,000.00Total Development 1,758,000 $105,800,000.00

2014 Selected New Retail Projects

Katy Area Selected Users and Developments Project Summary 2014Type Jobs SF Cap Ex

Office 2,043 1,606,961 $169,165,550

Medical 335 163,500 $11,037, 500Industrial 153 1,426,999 $43,500,000TOTAL 2,531 3,197,460 $223,703,0

50

UH Press Article

Katy Boardwalk Project

Katy Boardwalk Project

Work Plan Highlights 2015TALENT

• Advocate and support Tuition Revenue Bonds for UH Campus.

• Contact legislators and register resolution support for project.

• Develop and implement Higher Education Task Force

Work Plan Highlights 2015TALENT

• Work with area training providers to connect existing and new businesses to training programs, grants and opportunities.

• Formalize Katy Area Workforce/Training Consortium and conduct four events

• Build relationships with local and regional area education institutions.

Work Plan Highlights 2015INDUSTRY

• Implement populate new website with improved functions, SEO and information.

• Develop new advertisements targeted to office users.

Work Plan Highlights 2015INDUSTRY

• Support Bisnow Sponsorship Meeting “The Future of Katy” as a key facilitator of the meeting.

• Publish 2015 Development Map.

Work Plan Highlights 2015PLACE/BRAND

• Consider hiring full-time marketing director to manage EDC Marketing, Public Relations and Branding efforts.

• Consider merging Place/Brand and Industry Committees together and align committee members.

Work Plan Highlights 2015MEMBERSHIP/SPONSORSHIP

& ADMIN• Grow membership to 200 members and recruit

$89,000 of new memberships.• Form, develop and implement

Infrastructure/Mobility Task Force. • Conduct Golf Tournament with some proceeds

benefitting TIWH and Marketing efforts

Work Plan Highlights 2015JOB CREATION & CAPITAL

INVESTMENT• Job creation:

1,500 jobs • Includes office, industrial, technology,

entertainment and lodging• Focus on office• Focus on jobs that pay over $57,000/year

• Capital investment: $200,000,000

Work Plan Highlights 2015SPACE

• Leasing of space • Office:

200,000 SF• Industrial:

300,000 SF• Space construction support

New for Spec, Build-to Suit• Office:

250,000 SF• Industrial:

500,000 SF• Entertainment/Lodging/Institutional: 100,000

SF

Short Video

Thank You for Your Support of the Katy Area EDC!!!

Lance LaCour, President/CEO(281) 396-2200

lancelacour@katyedc.org