Teclo J. GarciaEconomic Development

Director

City of Laredo Economic DevelopmentCity Council Annual Budget WorkshopFY 2020-2021 Proposed Budget

Mission StatementGrow and enhance Laredo’s economy by promoting local business sustainability and expansion, by providing leadership and innovation for business recruitment, job creation and workforce training and by promoting Port Laredo internationally.

Goals & Objectives BUSINESS EXPANSION: Continue to create well-paying jobs and investment

by expanding established businesses and by recruiting strategically targeted industries such as produce/cold storage, healthcare and manufacturing.

SMALL BUSINESS: Continue to assist small businesses by completing CARES Act funding, and by working with local partners such as Mile One, Laredo EDC and TAMIU Small Business Development Center.

ECONOMIC INCENTIVES: Develop and prepare fair and attractive economic incentive policies that will enhance investment and recruitment such as for the Texas Chapter 380 program and Tax Increment Financing (TIF) zones.

WORKFORCE DEVELOPMENT: Create a program with Laredo College, Workforce Solutions, TAMIU and the school districts that will accelerate training for high-demand positions in Laredo’s medical and logistics fields.

GRANTS: Assist departments with grant research, proposals, writing and submissions. Specifically will work to submit proposals for city-wide quality of life, health and recreation projects and for an economic impact study .

Personnel82%

Contractual17%

Materials and

Supplies1%

Other1%

Budget BreakdownGeneral Fund

FY 19-20Original

FY 19-20Adjusted

FY 19-20Estimate

FY 20-21Proposed

$288,061 $418,347 ♣$317,876 $374,688♣ Estimate based on reduction in personnel expenses related to Administrative Assistant

Major Fund Changes

Grant Administrator hired on September 16, 2019 under the City Manager’s Office

Position was transferred to Economic Development effective October 21, 2019.

FY 19-20Original Budget

• $288,061• +$86,627 - transfer in one (1) Grant

Administrator from City Manager’s Office

FY 20-21 Proposed

Budget

• $374,688• Proposed budget to support all

operational expenses including one (1) additional staff transferred in

GOING FORWARD TO 2021

Mission Produce’s new 262,000 square feet avocado distribution and manufacturing center is scheduled to open in 2021. Mission is the third produce company to locate or significantly expand in Laredo in the last year.

For 2021, Economic Development will continue to build on its dynamic growth and strategic international location and work collaboratively to grow a strong and resilient economy.

Special Presentation to City CouncilAugust 2020

Budget Breakdown

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Total Staff: Laredo EDC 5 MileOne/IBAC 3

City Contract Budget Amount

Administration $163,273

Site Selection Services and Targeting $160,459

Marketing/Outreach/Membership $73,995

Incubator Project (MileOne) $162,273

Total: $560,000

Industrial Attraction and Business Development Performance

The Industrial Attraction Division is a one-stop resource center focused entirely to assisting new businesses locate or expand in Laredo for the purpose of creating jobs and expanding our tax base through direct capital investments. In addition, this division showcases the opportunities and benefits that Laredo and Webb County offer businesses and corporations seeking new locations for their business. The industrial development team works closely with new prospects to deliver a wide range of services and information to facilitate the search process for site selectors. We conduct property site tours, presentations, and meetings with community stakeholders and provide the most current community data and economic indicators report for various sectors in our community. We also work with the City of Laredo and Webb County to provide economic incentives support.

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Website Hits outside Laredo 434 per month

Site Selection Visits 5

Landed Projects 3

Capital Investments $26M

New Jobs 335

Retained Jobs 100

Active Projects 5

Capital Investments $7.5M

New Jobs 255

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Members 62

Start-ups or Expansions 55

Website Hits 525/month

Workshops 15

Webinars 11

Community Members Over 5,000participants

MileOne Performance

The International Business Assistance Center (IBAC) will (1) promote entrepreneurship and international trade for the Laredo and Webb County South Texas region, (2) encourage FDI by facilitating the process of establishing a business in the U.S., and (3) assist U.S. companies who want to expand their business services into Mexico. As a support center, the IBAC will assist and guide companies through the process of establishing or expanding their business in a foreign country.

MileOne's mission is to address the economic challenges of the Laredo region by providing fertile ground for entrepreneurial growth, innovation, and business diversity. The MileOne program guides entrepreneurs through individualized mentorship and provides professional and modern workspaces at subsidized costs. MileOne also actively provides community education through workshops, webinars, and classes on topics such as: startup guidance, financial literacy, marketing, and professional development, as well as e-commerce and safety best practices to address the challenges brought on by the current pandemic.

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Sunset Produce Economic Impact Study Summary

• Initiated by LaredoEDC• Investment of $25 MILLION creates 322 CONSTRUCTION JOBS• Operations of 240 jobs with 80% paying $13.50 PER HOUR• $35 MILLION PER YEAR economic impact to community 2020-

2025• $920,000 per year tax impact 2020-2025

$420,000 PROPERTY TAX INCREASE average

*AEP sponsored economic impact study using IMPLAN version 5.16

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Budget Request Summary

• Provides optimized resources to keep talent focused on the mission Retain, expand, and diversify into 2021 and beyond Further improve Laredo business climate visibility and image

• Allows LaredoEDC to continue to utilize successful model Initial contact with targeted industries and companies Confidential communications with companies when desired Lead engagement with community partners and collaborate to LAND PROJECTS Engage City ED department and transition incentives process

• Provides tools for new leadership to have an impact Leverage business knowledge and network of industry leaders in US and Mexico Work with City Council to identify opportunities in each district

Gene A. Lindgren, President & CEO

(956) 722-0563

www.laredoedc.org

LaredoEDC @LaredoEDC

Laredo Economic Development Corporation

Thank You

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Company Capital Investment New Jobs Expansion $ Jobs Retained Incentives Rebate

CTI $1,200,000 70Sunset $8,000,000 140 $17,000,000 100Concentrix 125

TOTAL $9,200,000 335 $17,000,000 100 $0

Company Capital Investment New Jobs Expansion $ Jobs Retained Incentives Rebate

Lite Manufacturing $1,500,000 30Telecommunications $1,500,000 100Auto Part Compontent Manufacturer (Lease) $1,500,000 80

Cabinet Manufacturer (Lease) $500,000 25

Retail (Lease) $2,500,000 20TOTAL $7,500,000 255 $0 0 $0

FY 2019-2020

FY 2019-2020

LANDED PROJECTS

ACTIVE PROSPECTS

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Website Hits from Outside Local Region (100/month)

October, 2019 to July, 2020

United States 3,497Mexico 264France 208South Korea 86Canada 83United Kingdom 62India 55China 45Argentina 3910 Months 4,339

**Numbers in the U.S. does not include Laredo, total U.S. number is 4,762.***Website hits are measured by the Laredo EDC website through Google Analytics

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Community Service Projects

SHOP SMALL BUSINESS SATURDAY COALITION• LEDC collaborated with The Laredo Chamber of

Commerce with the Shop Small Business Saturday Coalition.

LAREDO MASK MAKERS INITIATIVE• We’ve Got You Covered by cutting and sewing over 3,000

masks. Donated over 600 masks to essential or at-risk groups to include all members of the community such as Casa de Misericordia, Drs. Gary and Jane Unzeitig, Dr. Luis Benavides, Retama Manor, AEP Texas, Dr. Reynaldo Godines, Dr. Gomez Vasquez, Apollo Rehabilitation Center, as well as other entities throughout the Laredo region.

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Community Service Projects

COVID-19 BUSINESS RESOURCES INFORMATION• LaredoEDC in conjunction with MileOne and the

Laredo Chamber of Commerce compiled important information on their websites for business owners and workers about the financial incentives provided by the U.S. Small Business Administration (SBA) such as SBA Paycheck Protection Program (PPP), Federal Disaster Loans for Businesses, Private Non-Profits, Homeowners and Renters and other SBA Loans and Funding options.. https://www.laredoedc.org/covid19/

EMERGENCY COVID-19 SUPPORT• A support grant from AT&T to coordinate with

locally owned and operated restaurants and Fishers of Men Foods to provide/deliver meals to first responders and elderly from across the Webb County region