jennifer s. cowley · brownsville-harlingen-san benito 28.9 victoria 13.1 brazoria county 26.1 waco...

Jennifer S. CowleyAssistant Research Scientist

Laura K. NoblesGraduate Research Assistant

Texas A&M University

July 2001

© 2001, Real Estate Center. All rights reserved.

Real Estate Market Overview

Beaumont-Port ArthurReal Estate Market Overview

Beaumont-Port Arthur



Population

Employment

Job Market

Major Industries

Business Climate

Education

Transportation and Infrastructure Issues

Urban Growth PatternsMap 1. Growth Areas Map

Public FacilitiesHousing

Multifamily

Manufactured HousingSeniors Housing

Retail MarketMap 2. Retail Building Permits

Office Market

Map 3. Office and Industrial Building PermitsMap 4. Commercial Building Permits

Industrial MarketConclusion

Contents

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Beaumont

Port Arthur

Bridge City

Pine Forest

Vidor

inewood Estates

Nederland

Port Neches

Interstate 10

US 90

SH 105

Orange

Jennifer S. CowleyAssistant Research Scientist

Laura K. NoblesGraduate Research Assistant


Beaumont-Port ArthurReal Estate Market Overview


Land Area of Beaumont-Port Arthur MSA

2,204 square miles

Population Density (2000)175 people per square mile

Area Cities and TownsBeaumontBridge City

BunaChina

DeweyvilleEvadaleFannettGroves

HamshireKountze

Lumberton

CountiesHardin

JeffersonOrange

MauricevilleNederland

NomeOrange

Port ArthurPort Neches

SaratogaSilsbee

Sour LakeVidor

West Orange

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Kelly Air Force Base, San AntonioPOPULATION

Beaumont-Port Arthur MSA Population

The Beaumont-Port Arthur Metro-politan Statistical Area (MSA)has approximately 385,000 resi-

dents and is located on the southeastTexas Gulf Coast. Many MSA inhabit-ants refer to the area bordered by Beau-mont, Orange and Port Arthur as the

“Golden Triangle.” Area employmentrelies heavily on petroleum-based in-dustries, timber production and ship-ping through area ports. The GoldenTriangle has encountered both goodand bad times in the past decade; re-cently it has recorded solid growth.

The Beaumont-Port Arthur MSA isnear major metropolitan areas such asHouston, which is about 85 milesaway, and New Orleans. More than 15million people live within a 300-mileradius of Beaumont-Port Arthur.

Year Population

1990 361,2681991 365,4551992 369,0751993 372,8111994 373,5261995 374,9161996 373,8691997 374,5881998 375,1351999 376,2562000 385,090

Source: U.S. Census Bureau

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The Beaumont-Port Arthur MSA’spopulation was 385,090 in 2000.The average growth rate was 0.5

percent per year between 1990 and2000.

Hardin County was the fastest grow-ing county in the Beaumont-PortArthur MSA between 1990 and 2000,growing 16.3 percent during the de-cade. Hardin County is the smallest

county in the MSA and is just north ofBeaumont.

Orange County was the MSA’s sec-ond fastest growing county, growing5.5 percent between 1990 and 2000.Jefferson County had the least growthduring the decade. Jefferson County isthe most populous county in the MSAand includesBeaumont.

The Texas State Data Center projectsthat the area’s population will slowlyincrease between 2000 and 2010 butthen decrease between 2010 and2020. The Texas Water DevelopmentBoard predicts that the population forJefferson, Hardin and Orange countieswill grow to 422,997 in 2010 and445,200 in 2020.

County Population Growth

Growth 1990-2000County 2000 Population (in percent)

Hardin 48,073 16.3Jefferson 252,051 5.3Orange 84,966 5.5


Area Cities With 10,000 or More Residents

Growth 1990–2000City 2000 Population (in percent)

Beaumont 113,866 –0.48Port Arthur 57,755 –1.06Orange 18,643 –5.62Nederland 17,422 3.35Groves 15,733 –5.2Port Neches 13,601 –0.10Vidor 11,440 0.48


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Texas Metropolitan Area Population Change, 1990–2000 (in percent)

McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1Austin-San Marcos 48.2 Tyler 15.5Laredo 44.9 El Paso 14.9Dallas 31.5 Corpus Christi 14.3Brownsville-Harlingen-San Benito 28.9 Victoria 13.1Brazoria County 26.1 Waco 12.9Houston 25.8 Texarkana 9.4Fort Worth-Arlington 25.1 Lubbock 9.0Bryan-College Station 25.1 Wichita Falls 7.8Texas 22.8 Longview-Marshall 7.7Killeen-Temple 22.6 Beaumont-Port Arthur 6.6San Antonio 20.2 Abilene 5.8Sherman-Denison 16.4 San Angelo 5.6Amarillo 16.2 Odessa-Midland 5.1


Beaumont-Port Arthur MSA Projected Population

Texas State Texas WaterYear Data Center Development Board

2005 393,767 —2010 399,786 422,9972015 399,695 —2020 397,151 445,201

Source: Texas State Data Center

Projected Population Growth, 2000–2020(in percent)

Source: Texas State Data Center

3.1

40.2

0

10

20

30

40

50

Beaumont-Port Arthur MSA Texas

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Household CompositionBeaumont-Port

Arthur MSA Texas

Median household size (1990) 2.6 2.7Population younger than 18(1999, in percent) 28.3 28.5Population 65 and older(1999, in percent) 12.2 10.1


Ethnic Distribution(in percent)

Beaumont-PortArthur MSA Texas

Ethnicity 1990 2000 1990 2000

White 70.6 75.7 60.8 52.4Hispanic 4.1 5.5 25.3 32.0Black 23.3 16.2 11.7 11.3Asian 1.6 1.3 0.3 2.7American Indian 0.3 0.4 1.8 0.3Other 0.0 0.1 0.1 0.2Two or more races* — 0.8 — 1.1

*For the 2000 Census, the Census Bureau changed the “race” options, allowing peopleto report their race as “other” or as two or more races.


Changes in the ethnic makeup ofthe Beaumont-Port Arthur MSAbetween 1990 and 2000 are

similar to statewide trends but minoritygroups have not increased as rapidly.Hardin and Orange Counties have thelargest minority populations in the

MSA. The black population in the MSAhas decreased 7.1 percentage pointssince 1990, and the white populationhas increased 5.1 percentage points.The Hispanic population increased 1.4percentage points between 1990 and2000.

The Beaumont-Port Arthur MSAranked 14th among the 27 Texas MSAswith a $23,395 per capita income in1999. The state average per capita in-come in 1999 was $26,834, accordingto the U.S. Bureau of Economic Analysis.

Breakdown of County Ethnicity, 2000(in percent)

Hardin Jefferson OrangeEthnicity County County County

White 89.3 51.8 85.9Hispanic 2.5 10.5 3.6Black 6.9 33.5 8.3Asian 0.2 2.9 0.8American Indian 0.3 0.3 0.5Other 0.1 0.1 0.0Two or more races* 0.7 0.9 0.9

*For the 2000 Census, the Census Bureau changed the “race” options, allowing people to re-port their race as “other” or as two or more races.


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Beaumont-Port Arthur MSA Unemployment Rate(in percent)

Source: U.S. Bureau of Labor Statistics

Source: U.S. Bureau of Labor Statistics

EMPLOYMENT

Beaumont-Port Arthur MSA Employment

150,000

152,000

154,000

156,000

158,000

160,000

162,000

164,000

166,000

168,000

170,000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

02468

1012141618

Jan

uar

y-95

May

Sep

t

Jan

uar

y-96

May

Sep

t

Jan

uar

y-97

May

Sep

t

Jan

uar

y-98

May

Sep

t

Jan

uar

y-99

May

Sep

t

Jan

uar

y-00

May

Sep

t

Jan

uar

y-01

Beaumont Port Arthur

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Employment Growth by Industry Beaumont-Port Arthur MSA Texas

Employment growth, 2000 (in percent) 1.0 3.2Unemployment rate (in percent) 8.1 4.3New jobs in 2000 1,600 288,900Employment growth by sector (in percent)

Services 1.0 4.7 Trade 0.3 3.1 Manufacturing –4.9 0.1 Mining 0.0 2.3 Finance, insurance and real estate 0.0 1.3 Construction 9.1 6.2 Government 2.6 1.7 Transportation, communications and public utilities 1.3 5.1

Source: Texas Workforce Commission

Bergstrom Air Force Base, Austin

Top Ten Employers Top Ten Private Employers

Source: Beaumont Chamber of Commerce

Beaumont Independent School DistrictEducation2,923 employees

Christus St. Elizabeth HospitalHealth care2,500 employees

McDonald’s RestaurantsFood service2,200 employees

Market Basket Food StoresGrocers2,000 employees

EI DuPont de Nemours, Sabine River WorksPetrochemical manufacturing1,702 employees

Bayer CorporationSynthetic rubber manufacturing1,600 employees

Huntsman CorporationPetrochemical manufacturing1,535 employees

TDI-Halter, LPOffshore drill rig repair1,500 employees

Lamar UniversityEducation1,500 employees

Texas Department of Criminal JusticeLaw enforcement1,406 employees

Christus St. Elizabeth HospitalHealth care2,500 employees

McDonald’s RestaurantsFood service2,200 employees

Market Basket Food StoresGrocers2,000 employees

EI DuPont de Nemours, Sabine River WorksPetrochemical manufacturing1,702 employees

Bayer CorporationSynthetic rubber manufacturing1,600 employees

Huntsman CorporationPetrochemical manufacturing1,535 employees

TDI-Halter, LPOffshore drill rig repair1,500 employees

Mobil Oil CorporationOil refinery1,250 employees

Memorial Hermann Baptist HospitalHealth care1,150 employees

Motiva Enterprises (formerly Star Enterprise)Fuel processing1,000 employees

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JOB MARKET

Approximately 1,000 jobs wereadded to the area economywhen West Corporation

opened its 35,000-square-foot facilityon Concord Road in Beaumont in Janu-ary 2001.

In August 2000, a Goodyear plantmanufacturing specialty polymers

added 100 employees. In JeffersonCounty, the opening of the Goodyearsynthetic rubber plant added 110.West Telecommunications added 600additional employees in Beaumont.

Service Zone plans to open a 600-employee call center at the SoutheastTexas Regional airport by the end of

2001. In Beaumont, Phoenix Millworkwill build a new plant and expand by15 employees.

Conn Appliances plans to hire 125people for the 32 stores located inSoutheast Texas, Houston, San Anto-nio, Austin and Baton Rouge, Lafayetteand Lake Charles, Louisiana. Conn

The Beaumont-Port Arthur unem-ployment rate has varied from7.2 percent to 11.4 percent over

the past decade. In 2000, the averageunemployment rate was 8.1 percent.Port Arthur had a significantly higherunemployment rate, 10.2 percent, thanBeaumont, 6.2 percent, for December2000. Nonagricultural employment

rose by 1,600 jobs in 2000, accordingto the Texas Workforce Commission.

The number of civilians employed inthe area fell to 162,905 in 2000, from166,055 in 1999, according to the U.S.Bureau of Labor Statistics. The declinewas related to the completion of majorconstruction projects in the chemicalindustry. Several major industrial ex-pansions employed hundreds of con-

Texas Metropolitan Area Employment Change, 1990–2000(in percent)

Austin-San Marcos 58.8 El Paso 15.4Laredo 40.3 Waco 14.3McAllen-Edinburg-Mission 35.8 Lubbock 14.0Dallas 30.4 Sherman-Denison 12.5Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2Bryan-College Station 29.2 Abilene 11.4Killeen-Temple 28.7 San Angelo 10.7San Antonio 28.6 Corpus Christi 10.3Fort Worth-Arlington 23.7 Galveston-Texas City 8.2Texas 23.3 Wichita Falls 7.8Tyler 22.9 Odessa-Midland 6.5Victoria 22.4 Texarkana 4.5Houston 22.1 Beaumont-Port Arthur 3.5Amarillo 18.6 Brazoria County 2.3

Source: U.S. Bureau of Labor Statistics, February 2001

struction workers but had few perma-nent positions.

Four of the ten largest public em-ployers in Beaumont-Port Arthur arepetrochemical, oil and rubber-relatedfacilities. Christus St. Elizabeth Hospi-tal and Memorial Hermann BaptistHospital of Southeast Texas also areamong the area’s largest private em-ployers.

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MAJOR INDUSTRIES

Services and trade dominate theBeaumont-Port Arthur employ-ment market. Manufacturing, the

area’s third largest employment sector,has had a recent downturn, but theBeaumont-Port Arthur MSA is still astrong producer of manufacturedgoods.

The services sector accounts for 25percent of all nonagricultural jobs andposted a 1 percent gain in employmentbetween 1999 and 2000, adding 400jobs.

Health care is the largest industry inthe services sector. Christus St. Eliza-beth Hospital is the area’s largest pri-vate employer. Memorial HermannBaptist Hospital is the second largest.Collectively, these two hospitals em-ploy approximately 3,700. Christus has461 beds while Memorial provides850.

Two other area hospitals are largeemployers — Beaumont Medical andSurgical Hospital, which has a staff of381, and Healthsouth RehabilitationHospital with a staff of 185.

Trade makes up 23 percent of allnonagricultural employment in theBeaumont-Port Arthur MSA. The tradesector ranked second in area employ-

ment and had a marginal increase withthe addition of 100 jobs between 1999and 2000.

Manufacturing represents 15 percentof all nonagricultural MSA employ-ment. This sector includes petroleumrefining, petrochemical production,paper processing and food processing.Many manufacturing plants are locatedin Port Arthur. Lumber and wood arealso important to the area’s manufac-turing industry. The forests of SoutheastTexas provide raw materials that createjobs at area saw mills, pulp mills andpaper factories. Between 1999 and2000, 1,200 jobs were lost in this sec-tor, in part the result of a slump in com-modity prices.

Local government represents 12 per-cent of the area’s nonagricultural em-ployment. Government employmentincreased 3.3 percent between 1999and 2000, adding 800 jobs. State gov-ernment employment continues togrow as a result of several correctionalfacilities opening within the MSA in1997. These facilities include state andfederal prisons, state and county jailsand a youth facility.

Nine percent of the Beaumont-PortArthur MSA’s nonagricultural employ-

ment is in construction jobs. Althoughthis sector declined 1.8 percent be-tween 1998 and 1999, it increased 9.1percent between 1999 and 2000 be-cause of an increase in industrial con-struction projects.

Timber, rice, soybeans, blueberries,crawfish, wheat, grain sorghum andlivestock are important MSA agricul-tural products. Honey is important inOrange County and blueberries are sig-nificant in Hardin County.

The Beaumont-Port Arthur MSA hassome beef cattle production, cow-calfoperations and poultry operations. Ac-cording to the Texas Agricultural Exten-sion Service, rice accounted for 31 per-cent of 1996–1999 agriculturalreceipts in Jefferson County. Timber,recreation (land suitable for hunting),hay and beef are also major agricul-tural products.

In Hardin County, timber repre-sented 74 percent of agricultural re-ceipts between 1996 and 1999. In Or-ange County, beef was the largestagricultural product, generating 38 per-cent of 1996–1999 agriculturalreceipts.

expected to hire some former Mont-gomery Ward employees after thatstore closed early in 2001.

Beaumont-Port Arthur’s job markethas been challenged by staff reduc-tions, especially in the manufacturingsector. Officials at Port Arthur EquistarChemicals announced in January 2001that the plant would shut down pro-duction because of a slow market andrising costs, resulting in the dismissal of135 employees. Ameripol Synpol Cor-poration laid off half its workforce, 58salaried workers and 157 craft union

wage employees, in December 2000.The layoff was a result of a major re-structuring. In late 2000, GAF MaterialCorporation, a producer of asphaltroofing material, closed, idling at least80 employees.

The U.S. Postal Service hired 700data conversion operators in January2001. In April 2000, Goldstar EMSmoved its headquarters to Port Arthur,hiring an additional 63 employees.

Fifteen employees lost their jobswhen Bealls in the Jefferson City Shop-ping Center closed. Hastings, also in

the Jefferson City Shopping Center,closed in March 2000.

Friede Goldman Halter laid off 500employees at its Orange shipbuildingplant in May 2001. DuPont closed itsammonia operations, laying off 60 em-ployees in May 2001. Epco Carbon Di-oxide Products closed in May 2001,laying off five employees. AirLiquideclosed its carbon dioxide plant, layingoff three employees. Entergy is transfer-ring 55 jobs from Beaumont to Hous-ton in summer 2001.

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BUSINESS CLIMATE

Tax Rates, 2000

Beaumont-Port Arthur MSA Retail Sales

Year Total Sales Sales per Capita

1990 $2,557,980,244 $7,0811991 2,605,672,055 7,1301992 2,679,474,500 7,2601993 2,704,537,566 7,2541994 2,904,389,251 7,7761995 3,089,902,640 8,2421996 3,157,746,084 8,4461997 3,211,314,126 8,5731998 3,366,726,909 8,9751999 3,593,891,453 9,5522000 3,771,497,588 9,794

State Average 2000 $12,612

Source: Texas Comptroller’s Office

The Beaumont-Port Arthur MSAhas several business incentiveprograms in place. Smart Jobs is

a state-funded grant program that as-sists selected businesses with trainingfor full-time employees. Funding isprovided in the form of a reimbursablegrant. All three counties in the Beau-mont-Port Arthur MSA are eligible forthe strategic investment area programs.Industries participating in the program

are manufacturing, agricultural pro-cessing, warehousing, wholesale distri-bution, data processing and researchlaboratories.

The area also participates in theTexas Linked Deposit Program. Thisprogram was created to encouragelenders and borrowers to invest inprojects that are historically underusedbusinesses or small businesses in dis-tressed communities. Other benefits

available for businesses in the area arethe Texas Capital Access Fund, TexasExemption for Industrial Equipmentand Machinery, Texas ManufacturingAssistance Center and the Texas Gen-eral Land Office's historically under-used business program.

Cities in southeast Texas with a half-cent sales tax for economic develop-ment include Groves, Kountze,Nederland, Port Arthur, Silsbee and

Beaumont Port Arthur OrangeTaxing Entity Taxing Entity Taxing Entity

City $0.64 $0.78 $0.85School District 1.50 1.50 1.56Water/Drainage 0.31 0.31 0.12County 0.37 0.37 0.41Total $2.82 $2.96 $2.94

Source: Jefferson and Orange CountyAppraisal District

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Sour Lake. The sales tax rate for Beau-mont, Port Arthur and other citieswithin the MSA is 8.25 percent. Thesales tax rate is 7.75 percent in Orange.

Beaumont and Port Arthur have a 13percent hotel-motel tax, while Orangehas a 10 percent hotel-motel tax. Ho-tels make up a large part of service rev-enues. The 19 hotels and motels inBeaumont have a total of 2,858 beds.

The cities of Beaumont and Orangedo not collect an economic develop-ment sales tax. They do, however, pro-

vide tax incentives to stimulate devel-opment and have areas designated asenterprise zones. If businesses locate inan enterprise zone, they are eligible forstate sales and use tax refunds, localsales and use tax refunds, property taxabatement, community developmentblock grants and reduced connectionfees. The policy governing tax incen-tives has no specific minimum invest-ment or job creation requirements andthe length of time and abatement per-centage are determined on a case-by-

case basis. The incentive is usually tiedto the use of local subcontractors, di-rect hire of local labor or both.

Beaumont also issues industrial rev-enue bonds for eligible industrial ormanufacturing projects to provide tax-exempt financing for land and depre-ciable property.

The Beaumont-Port Arthur MSA re-ported $127 million in exports for1998 and $108 million in exports for1999.

EDUCATION

2005 2010School 2000 (estimated) (estimated)

Lamar University 8,661 8,100 7,728Lamar University Institute of Technology 2,395 2,413 2,326Lamar State College-Port Arthur 2,654 2,271 2,191Lamar State College-Orange 1,930 1,467 1,409

Sources: Educational institutions and the Texas Higher Education Coordinating Board

Educational Level, Persons Age 25 and Older(in percent)

Beaumont-PortLevel of Education Arthur MSA Texas

High school graduate 19.5 25.6Some college, no degree 12.2 21.1Associate’s degree 3.3 5.2Bachelor’s degree 7.1 13.9Graduate or professional degree 3.2 6.5

Source: U.S. Census Bureau 1990 Census

Local College and University Enrollment

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TRANSPORTATION AND INFRASTRUCTURE ISSUES

Lamar University and the LamarUniversity Institute of Technol-ogy are in Beaumont. Both are

members of the Texas State UniversitySystem. Lamar University has cam-puses in Beaumont, Port Arthur andOrange and offers bachelor’s andmaster’s degrees in more than 130fields of study.

The School of Business at Lamar Uni-versity is rated in the top ten for theState of Texas. The school is accreditedby the Commission on Colleges of theSouthern Association of Colleges andSchools and is approved by the TexasEducation Agency. Lamar University’senrollment increased 6.3 percent in2000. Lamar State College-Orange hadthe largest increase at 8.8 percent.

In a joint effort with Campus Com-munities and a private Austin-based

company, Lamar University will beopening a 528-bed residence hallcalled Cardinal Village in fall 2001.The $10.5 million project is betweenAlabama Avenue and Cheek Street,close to the ROTC building and theMary and John Gray Library.

Lamar University Institute of Tech-nology (LUIT) is a two-year, state-sup-ported vocational-technical college.Enrollment in LUIT has increased 70percent since 1994.

LUIT opened a Technology Center inAugust 2001. The $2.1 million facilityconsists of a 21,000-square-foot build-ing with three computer labs, offices ofthe Workforce Training Department, adistance learning studio and 20 facultyoffices. LUIT also added 80 parkingspaces in December 2000.

In March 2001, LUIT purchased ahouse adjacent to the campus to beused for storage. LUIT is in the processof leasing a 10,000-square-foot facilityfor office and warehouse space tohouse the Workforce Training Depart-ment.

Lamar State College in Orange andLamar State College in Port Arthur offera variety of lower-level academiccourses, as well as vocational training.

A school building is under construc-tion for Sabine Pass. The $10 millioncost was approved in a 1999 bond is-sue. The new facility, on SouthGulfway Drive, will replace the build-ing that houses kindergarten through12th grade.

Beaumont-Port Arthur MSA Airline Boardings

1997 1998 1999 2000

Southeast Texas Regional Airport 113,108 113,339 99,343 89,513

Source: Southeast Texas Regional Airport

Port Activity

1999 Rank in Nation

Total cargo (in tons) 69,405,951 6Foreign trade (in tons) 53,855,574 5Domestic trade (in tons) 15,550,377 20

Source: Port of Beaumont and the U.S. Army Corps of Engineers

Interstate-10 is the primary artery ofthe Beaumont-Port Arthur MSA.U.S. Highways 287, 90, 69 and 96

and Texas Highway 347 also facilitatetravel within the MSA. As a result of the

area’s heavy dependence on industrialmanufacturing, rail and sea transporta-tion are vital to Beaumont.

In August 2000, the Texas Transpor-tation Commission approved $65 mil-

lion to completely rebuild I-10 be-tween Texas 62 and Texas 12.

The Southeast Texas Regional Air-port, formerly Jefferson County Airport,had 99,343 enplanements and 98,319

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deplanements in 1999. In 2000, thenumber of enplanements dropped to89,513, while the number of deplane-ments fell to 86,815. Enplanementsand deplanements were both down forthe first two months of 2001. The air-port is ten miles south of Beaumont onHighway 69.

South Texas Regional Airport isserved by two commuter airlines pro-viding direct service: American Eagleand Continental Express. AtlanticSoutheast Airlines left the airport inOctober 2000. The airport offers dailydirect flights to Houston and Dallas-Fort Worth.

In November 2000, construction be-gan on the 95-foot air traffic controltower that should be completed by No-vember 2001. A 19,500-square-foothangar with office space will be con-structed near Highway 69 beginning inmid-2001.

Three new ground passenger loadingbridges that will allow passengers towalk from the boarding area of the ter-minal to the aircraft in a closed envi-ronment were to be in place and opera-tional by the end of April 2001. Theairport is in the process of purchasing210 acres on the south end of the air-field for future runway extension.

Several rail carriers provide transpor-tation to the area. The four major railcarriers are Burlington Northern Santa-Fe, Union Pacific, Kansas City South-ern Rail Road and Tex Mex Rail Road.The Sabine River and Northern is ashort-line railroad running through thearea.

Beaumont has 13 motor freight car-rier terminals and 53 general freightcarriers that serve the MSA’s transpor-tation needs.

The Port of Beaumont, the area’slargest port, is 42 miles upstream fromthe Gulf of Mexico. It is accessible fromthe Gulf of Mexico and the IntracoastalWaterway via the Sabine-Neches ShipChannel. The ship channel has a mini-mum depth of 40 feet and a width of400 feet. Important cargo products

shipped at the Port of Beaumont in-clude forest products, military goods,metals, project cargo, grains, baggedgoods, wood chips and aggregate ma-terials. The port ranked fifth in foreigntrade among U.S. ports in 1999, ac-cording to the U.S. Army Corps of Engi-neers. Beaumont ranked tenth in termsof total trade.

The Port of Beaumont has 6,088 lin-ear feet of harbor front, wide concreteaprons and a constant minimum waterdepth of 36 to 40 feet at mean low tideat the face of all docks. A large port ex-pansion project is under way, includ-ing improvements to railroad tracks, anew rail switching yard, improvementsto a grain elevator and development ofproperty in Orange County. The $11million expansion was completed inspring 2001. To relieve berth conges-tion at the port’s busiest terminal, theexpansion included a 680-foot exten-sion to Harbor Island wharf and linkedrailroad tracks on the new wharf apronto existing tracks. The $10.3 milliongrain elevator improvements werecompleted in the summer of 2000.

New computer controls were in-stalled to modernize and upgrade theport’s 3.5 million bushel grain exportfacility. The receiving capacity of thegrain elevator increased 60 percent,from 50,000 to 80,000 bushels perhour.

Construction of a railroad and road-way bed was completed in early 2000,providing access and basic utilities toport-owned property on the east bankof the Neches River. The $3.2 millionproject includes constructing a bulk-head that will create a future wharf linefor development of marine facilities onthe east bank of the river. The port isadding a 12th berth.

The Port of Port Arthur completed itsongoing wharf expansion in December2000. The last phase of the $54 millionproject consisted of the railroad tailtrack, costing $3 million in engineeringand other construction. The Port of PortArthur completed work on the berths,

which went into operation in early2001. The 2001 budget includes capi-tal improvements of $2.5 million forrailroad repairs, $2 million for requiredmaintenance, $1 million for asphaltand hard surfaces construction,$150,000 for terminal ramps and slabreplacement and $65,000 for repairs tothe gantry crane.

The Port of Orange has completeddredging the slip located on its Ala-bama Street wharf. This project allowsthe port to service more ships and cap-ture more of the ship mooring market.

Beaumont and Port Arthur’s watersupply comes from the Gulf CoastAquifer and from Lake Sam Rayburn.Orange receives its water supply fromthe Gulf Coast Aquifer exclusively. Ac-cording to the Texas Water Develop-ment Board, the area has sufficient wa-ter to meet demands through 2050.

The City of Beaumont’s water supplycomes both from wells and surface wa-ter collections. The city demolished anin-ground, five-million-gallon, clearwell storage reservoir in April 2001.The well will be replaced with a new,five-million-gallon, in-ground reservoirwith new improvements and its ownpump station. The $6.5 million projectwill be used to pump water to the city.

The city is replacing some water andsewer mains and the canal system isbeing replaced with pipe. The newpipe will contribute to the rural waterdelivery system that the city is estab-lishing.

Beaumont’s water rates increased by30 percent in 2000. Wastewater rateswere increased by $5 to $10 per monthto pay for needed improvements to thewater system. The city will spend $53million over the next five years on theimprovements.

A saltwater barrier is under construc-tion on the Neches River. The project isexpected to be completed in June 2003and includes a 58-foot navigation gateand a dewatering system.

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Map 1. Growth Areas

Source: Real Estate Center at Texas A&M University

Beaumont-Port Arthur, TexasCensus PlaceWater AreaHighwayInterstate Highway

US 287US 69FM 365

SH 82

SH 73

SH 73SH 87

SH 347

Retail

SH 380

US 69

SH 105

US 90

Multifamily

SingleFamily

RetailIndustrial

Residential

Office

Retail

Industrialand Retail

I 10

I 10

Beaumont

Port Arthur

URBAN GROWTH PATTERNS

Map 1 shows major growth cor-ridors in the Beaumont-PortArthur area. Most growth in

Beaumont is occurring on the north-west side of the city. Residentialgrowth continues to the north to theLumberton area, east to Vidor andMauriceville and west to the Hamp-shire Fannett area. Retail growth is oc-curring around the mall on DowlenRoad, according to the City of Beau-mont Development Services Depart-ment.

The City of Beaumont extendedFolsom Drive through to Major Driveto help accommodate expected growthin the area. Housing development hasbeen in the northwest and southwestsections of Beaumont.

Port Arthur has had significantgrowth in the northwestern part of thecity, especially around the new Wal-Mart Supercenter and Lowe’s. Newhousing and retail have been added.

Industrial growth in Beaumont-PortArthur has been concentrated in elec-trical generation and co-generation de-velopment. Several major projects willcontinue to enhance the industrialmarket, including a project inDeweyville and a project west of Beau-mont. Overall, a total of eight major in-dustrial projects are under constructionor discussed in the five countiesaround Beaumont.

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PUBLIC FACILITIES

Orange’s $6-million, 24,000-square-foot city police-municipal court complex

opened in February 2001. The buildingis equipped with security cameras, nu-merous conference rooms, interviewrooms and locker rooms for the officers.

The Beaumont-Port Arthur MSA hasone large national park, four nationalforests, two national wildlife refuges,three state parks and other attractionsfor visitors. High Island is a populardestination for birdwatchers and has anew visitor center. In total, the area has816,833 acres of parks with wildlife.

Beaumont city officials planned toopen the new Perlstein Park at 8900Landis Drive west of Major Drive byJune 2001. The park has a playground,covered shelter and picnic tables. TheCharlton-Pollard Park is planned at Irv-

ing and McGovern streets. Land hasbeen purchased for the park.

Jefferson County commissionerscontinue work on a major entertain-ment complex in southeast Texas. The$50 million, 217.5-acre complex is onthe west side of Beaumont on I-10 be-tween Brooks Road and Major Road.Rodeo arena construction began inspring 2000, and the concert pavilionwill be ready by summer 2002. Thecomplex will be near many hotels andrestaurants on I-10, which has an esti-mated 41,000 vehicle count per day.

Key features of the project will be thefairgrounds with ten acres of midway;paved parking for 9,000 vehicles;80,000 square feet of air-conditionedexhibit and convention space; an en-closed rodeo arena with seating for6,500; 80,000 square feet of livestock

and show barns; a 13,000-seat outdoorconcert pavilion; a softball complex;40 acres of public park; an RV park; aregional visitors center; a cultural cen-ter, jogging trails; and wildlife habitat.

Beaumont plans to add 2,000 squarefeet to the R.C. Miller Memorial Libraryon Dowlen Road in summer 2001.

The Big Thicket National PreserveVisitor Center is expected to open inOctober 2001. The $1.3 million centerhas 5,000 square feet.

In Gladys City, the Spindletop-Gladys City Boomtown Museum Visi-tor Center opened in June 2001. The2,500-square-foot center includes a giftshop and a classroom.

HOUSING

Housing Affordability – Fourth Quarter 2000

Percent ofHouseholds THAI for

That Can Afford First-timeMedian-priced Home THAI* Homebuyers

Beaumont 59 1.28 .92Port Arthur 52 1.06 .84

*The THAI is the ratio of median household income to the income required to buy the median-priced home using cur-rently available mortgage financing. Standard financing is a 30-year loan covering 80 percent of the cost of the home.A THAI of 1.00 indicates that the median household income is just enough to qualify for a loan sufficient to purchasethe median-priced home.


16


Average Sales Price of Single-family Home,Beaumont-Port Arthur Area

Beaumont-Port Arthur Single-family Permits(in units)


0

200

400

600

800

1,000

1,200

1,400

1,600

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999


17

Single-family Home Sales Volume


0200400600800

1,0001,2001,4001,6001,8002,000

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000


Price Distribution of MLS Homes Soldin Beaumont-Port Arthur, 1999

(in percent)


Price Range Beaumont Port Arthur

Less than $60,000 24.5 43.460,000 – 79,999 19.9 22.580,000 – 99,999 16.8 9.2100,000 – 119,999 10.0 8.9120,000 – 139,999 8.3 5.7140,000 - 159,999 6.0 3.9160,000 – 179,999 3.2 2.5180,000 – 199,999 3.2 1.2200,000 – 249,999 4.0 1.7250,000 – 299,999 2.0 0.9300,000 and more 2.3 0.2

In 2000, 891 single-family homepermits were issued in the Beaumont-Port Arthur metropolitan area, up

from 832 permits issued in 1999. Theaverage value of a new home in theMSA in 2000 was $123,000. In the firstfour months of 2001, 165 new homeswere permitted.

Sixty-one percent of Beaumonthomes and 75 percent of Port Arthurhomes sold in 2000 were priced lessthan $100,000. Home sales in the$140,000 to $159,999 price range in-creased between 1996 and 2000 inBeaumont. This price distribution cat-

egory grew from 3.2 percent in 1996 to6 percent in 2000.

The average sales price of an existingBeaumont home reported sold throughthe MLS rose from $94,300 in 1999 to$104,300 in 2000. The number of salesincreased from 1,732 in 1999 to 1,769

18

MULTIFAMILY

Beaumont-Port Arthur MSA Multifamily Building Permits(in units)


units in 2000. Inventory available in-creased from 5.8 months in 1999 to 6.6months in 2000. Total listings also in-creased from 832 in 1999 to 951 in2000.

The average sales price of a home re-ported sold through the MLS in PortArthur increased from $72,100 in 1999to $76,800 in 2000. The number ofsales increased from 666 in 1999 to689 in 2000. Months of inventory in-creased from 5.3 months in 1999 to 6.2months in 2000. Total listings in-creased from 304 in 1999 to 349 in2000.

Land that will be used to build aneighborhood of at least 100 new

homes for those with low-to moderate-incomes was donated to the City ofBeaumont in February 2001. The 36-acre tract on Minner Drive is worth ap-proximately $300,000. Five newhomes will be constructed in theCharlton-Pollard neighborhood forlow-to-moderate income families. TheCharlton-Pollard Neighborhood Asso-ciation received $375,700 in city-allo-cated federal funds for construction ofthe homes. The first of the five newhomes should be completed by sum-mer 2001.

Construction began in early 2001 on21 low-income houses in the Anderson

Villa Subdivision. The homes shouldbe completed by 2002. Purchasers maybe able to receive financing from Or-ange Housing Authority.

Many new subdivisions are in north-ern Port Arthur. The Park at Lake Arthur,located on Lake Arthur Drive, is thecity’s newest subdivision. The subdivi-sion is approximately 75 percent com-pleted. About ten lots are finished outat a time. Fairway Estates had some ad-ditions in 2000 and is approximately50 percent completed. Other subdivi-sions with new construction are LakeArthur Village, Lake Arthur Manor andIndian Lake Estates.

0

200

400

600

800

1,000

1,200

1,400

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

19

Beaumont-Port Arthur Apartment Statistics, December 2000

Beaumont-Port Texas MetroArthur Average

Average rent per square foot $0.56 $0.75Average rent for units built since 1990 $0.61 $0.96Average occupancy (in percent) 94.2 95.7Average occupancy for units built since 1990 (in percent) 92.0 95.4

Source: Apartment MarketData Research

Beaumont-Port Arthur was one ofmany Texas areas affected byapartment overbuilding in the

1980s. Heavy construction occurredbetween 1980 and 1985, with approxi-mately 4,500 multifamily building per-mits issued during that period. Be-tween 1986 and 1990, the number ofpermits dropped significantly, signal-ing an oversupply in the market.

Between 1986 and 1992, the area re-corded a severe decline in the numberof multifamily building permits issued.Only 18 permits were issued between1986 and 1990. From 1991 to 2000,the number of multifamily buildingpermits slowly recovered, with 750building permits issued during this pe-riod. In 2000, only five multifamilybuilding permits were issued. BetweenJanuary and April 2001, no new multi-family units were permitted.

The average multifamily housing oc-cupancy rate in the Beaumont-PortArthur MSA declined from 94.5 per-

cent in February 2000 to 94.2 percentin December 2000. The average occu-pancy rate for multifamily buildingsbuilt after 1990 increased from 85.4percent in February 2000 to 92 percentin December 2000.

Both the average rental rate persquare foot and the rental rate for mul-tifamily properties built after 1990 re-mained constant between February2000 and December 2000. The aver-age rental rate for an apartment in theBeaumont-Port Arthur MSA was esti-mated at $461 in December 2000, ac-cording to Apartment MarketData Re-search.

Orange’s city housing authority willadd 170 units to the existing Pine Hol-low Apartment complex located onSikes Road. No date has been set forthe second phase of the project.

A low-income apartment complex isplanned at Texas 105 and AlpineCircle. The $3.5 million project will in-clude 48 townhouse style units built by

the Beaumont Housing Authority. A96-unit apartment complex is plannedfor low-to-moderate income residentson the site of the Eastown ShoppingCenter, which will be demolished tomake way for the apartments. Comple-tion is expected by April 2002.

Madison on the Lakes completed a152-unit apartment complex in early2000. A 112-unit townhome complexcalled The Pointe is under constructionon Old Bowlen Road. The first unitswere completed in June 2001.

A 528-bed residence hall will openin fall 2001 for Lamar University stu-dents. In a joint effort with CampusCommunities and a private Austin-based company, Lamar Universityhopes to eventually replace older dor-mitories. The new $10.5 millionproject is located between AlabamaAvenue and Cheek Street, close to theROTC building and the Mary and JohnGray Library.

20

SENIORS HOUSING

Oaks Living Center closed in 2001.The facility had 130 beds.

MANUFACTURED HOUSING

Beaumont-Port Arthur MSA Manufactured Home Sales

Proportion of NewManufactured Single-family HomesHomes Sold (in percent)

1997 709 54.01998 714 45.41999 624 52.32000* 446

*Through third quarter 2000

Source: Texas Manufactured Housing Association

The number of manufacturedhomes sold in the area rangedfrom 624 to 714 between 1997

and 1999. During this time, manu-

factured housing made up 45.4 percentto 54 percent of total new single-familyhome sales. The Beaumont-Port ArthurMSA ranked eighth of the 27 Texas

MSAs in new and used manufacturedhousing sales. A total of 1,567 new andused manufactured homes were soldduring 1999.

21

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Map 2. Retail Building Permits, 2000

Source: Beaumont Building Permit Office

Beaumont, TexasCensus PlaceWater AreaHighwayInterstate Highway

� Retail

�

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I 10

US 69

SH 105

US 90

I 10

US 96

RETAIL MARKET

Many business expansionsare occurring in Beaumont-Port Arthur. Map 2 shows the

locations of retail building permits is-sued in 2000.

Most hotel construction and renova-tions in the Beaumont-Port Arthur areawere completed in 1999. Three hotelsare under construction on Highway 69.The city of Kountze has plans for a $2million hotel next to the Big ThicketVisitor Center.

A 205,000-square-foot Wal-MartSupercenter opened in mid-2001southwest of the U.S. 69 and Highway365 intersection in Port Arthur. TheNederland Wal-Mart, a major sales taxgenerator for the city, will be closingbecause of the new Port Arthur store.All 365 Nederland employees willmove to the new Port Arthur store.

New or expanded area businessesduring 2000 included Gap, Gap Kids,Finish Line, Gala’s Hallmark, Foot

Locker, Lady Footlocker and AmericanEagle Outfitters.

Central Mall also added a ten-screentheater complex. The 1,400-seat,33,000-square-foot facility was com-pleted in April 2000. Abercrombie &Fitch opened in fall 2000 in the formerWhite House space at Parkdale Mall.

During the past four years, more thana dozen new restaurants opened inSoutheast Texas. Many branched outinto the area to take advantage of the

Hotel Occupancy and Rental Rates

1999 2000Beaumont- Beaumont-Port Arthur Texas Port Arthur Texas

Occupancy rate (in percent) 60.8 66.6 61.3* 61.8*

Average daily rental rate $54.61 $85.11 $56.53* $86.19*

*Through November 2000

Source: PKF Consulting

21

22

OFFICE MARKET

Few changes occurred in theBeaumont-Port Arthur area officemarket in 2000. Map 3 shows the

locations of office and industrial per-mits issued in Beaumont in 2000. Map4 shows the locations of commercialpermits issued in Port Arthur in 2000.

Texas Computer Associates con-structed an 8,000-square-foot office atWest Lucas Drive and Eastex Freeway.The building will house three addi-tional tenants in 1,600-square-footstorefronts.

Kirksey Rubber Stamps and PrintingCo. erected a 2,500-square-foot facility

on W. Lucas Drive. The building willbe used for printing operations whilethe existing building will be used foroffice space and for rubber-stampmanufacturing components.

Memorial Hermann Baptist Beau-mont Hospital purchased 4.7 acres ofCentral Park land located near its facili-ties and build a parking lot to accom-modate the hospital expansion that isexpected to be completed by fall 2003.

Service Zone Inc. received a $3 mil-lion incentive package from Nederland,Port Neches, Port Arthur and JeffersonCounty to open a new call-in technical

support center near the SoutheastTexas Regional Airport. The move willbring 600 jobs and a 44,000-square-foot facility to the area.

Tuscany Park on Dowlen Road is athree-building office complex underconstruction. The $5.1 million devel-opment has more than 50,000 squarefeet. A second phase is planned withthree more buildings.

steady traffic between Houston and theLouisiana casinos. In 2000, the CajunCookery and Key West Restaurant &Bar opened on I-10 in Beaumont.Primo’s Italian Restorante moved fromNederland to I-10 in Beaumont. Thenew location will seat 500, comparedwith 125 at the old location. Othernew restaurants include Waffle House,McDonald’s and Sonic.

The Beaumont-Port Arthur MSA’seating and drinking establishmentrevenue for 2001 is projected to beapproximately $363 million, a 1.61percent increase over 2000. The Beau-mont MSA is ranked ninth in restaurantsales among the 27 Texas MSAs,

according to the Texas RestaurantAssociation.

In 2001, two new shopping centersare expected to break ground in Beau-mont. The first is on Dowlen Road andwill be called The Shops on Dowlen.The $11 million center will have atleast three anchor stores plus three padsites. Lucas Promenade at U.S. 69 andLucas Drive cost $12.5 million.

Cavender’s Boot City is constructinga 14,000-square-foot store on theEastex Freeway near the Parkdale Mall.The store is expected to open in sum-mer 2001.

Kroger will open a new store onFolsom Drive in November 2001. Theshopping center will have Quizno’s

Subs, Sports Clips, Nice Nails andLeslie’s Pool Supply.

Several jobs were lost to businessclosures in 2000 and early 2001. InJanuary 2001, Bealls announced itsclosing after 25 years at the JeffersonCity Shopping Center. MontgomeryWard closed its store in Parkdale Mallin January 2001 after filing for bank-ruptcy. Approximately 115 jobs wereterminated in the closures. Jack’s TrueValue Hardware at 1181 South MainStreet in Lumberton closed its doors inDecember 2000; it had been in busi-ness since 1931.

23

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Map 3. Office and Industrial Building Permits, 2000

Source: Beaumont Building Permit Office

Beaumont, TexasCensus PlaceWater AreaHighwayInterstate Highway

� Office

� Industrial

�

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I 10

I 10

US 69

SH 105

US 90

US 96

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Map 4. Commercial Building Permits, 2000

Source: Port Arthur Building Permit Office

Port Arthur, TexasCensus PlaceWater AreaHighway

� Commercial

US 287US 69

SH 347

FM 365

SH 87

SH 82

SH 73

SH 73SH 87

23

24

CONCLUSION

701-25-1493

The Beaumont-Port Arthur areacontinues to grow throughexpansions to industrial plants

and increased employment in the retailand services sectors. The services sec-

tor has grown drastically with theopenings of West Teleservices, ServiceZone and Spherion, all of which planto increase their employment base.Construction has slowed in the single-

family and multifamily sectors for 2000and 2001. The Beaumont-Port ArthurMSA is recognized for its strong trans-portation network and growing indus-trial employment.

INDUSTRIAL MARKET

Established industrial leaders inthe Beaumont area include EIDuPont de Nemours, Sabine

River Works, Bayer Corporation,Huntsman Corporation, TDI Halter,ExxonMobil Corporation, Motiva En-terprises, Inland Eastex, Clark PortArthur Refinery, Goodyear Tire andRubber and DuPont Beaumont Works.

Construction began in February2001 on a $300 million electric gener-ating plant between Deweyville andHartburg. The plant will have the ca-pacity to produce 1,200 megawatts ofpower and will be built on 250 acres.The two-year construction project willemploy between 500 and 750 people.

Sabina Petrochemicals LLC, a com-bination of Shell Oil Company, BASFCorporation and ATOFina Petrochemi-cals, is building two chemical plantswith a combined value of $200 millionnear the $1 billion steam crackerproject at the ATOFina Petrochemi-cals, Inc., plant in Port Arthur.

One new unit will produce butadi-ene, a chemical used in rubber andplastic products, while the other newunit will produce indirect alkylation, acomponent of high-octane gasoline.The steam cracker project will be com-pleted by August 2001. Constructionon the two new plants should begin bythe second quarter of 2001. Approxi-

mately 900 people will be employedduring construction. After the projectsare completed, the project will employabout 40 full-time employees and 25contract maintenance employees.

A 50,000-square-foot, $2.4 millionfacility for Phoenix Millwork brokeground in February 2001. The six-month project on Cardinal Drive willdouble the wood manufacturer’s cur-rent manufacturing and distributionspace.

The Port of Beaumont completed a$10.3 million grain elevator renovationin December 2000. Chevron PhillipsChemical Co. is constructing a $23million addition to its plant, withcompletion expected in summer 2001.The addition will produce a plasticpolymer to keep foods fresh longer forthe food and beverage industry.

Air Liquide, in the Orange EnterpriseZone, will be a cogeneration facilitycosting about $63 million. CalpineCorporation announced plans to buildan 800-megawatt cogeneration powerunit at the Bayer Baytown plant in2001. Another cogeneration projectwill be undertaken by Sabine CogenL.P. in Orange. DuPont in Beaumontplans a 420-megawatt power plant.

Goodyear Tire and Rubber has twonew industrial projects totaling $143

million. One plant began operations inAugust 2000 and manufactures spe-cialty polymers. Goodyear is opening asynthetic rubber plant in JeffersonCounty. Another synthetic rubber plantwill be opened by Shell Chemical inPort Arthur.

Del Papa Distributing Company hasa $12 million warehouse under con-struction on I-10.

GAF Materials Corporation, a PortArthur roofing plant that produced as-phalt-roofing material, discontinuedoperations in late 2000, idling at least80 employees.

Hall-McSween’s Canvas and Uphol-stery Shop expanded its operations inJune 2000. The upholstery shop movedto Calder Avenue in Beaumont, in-creasing its workspace to 10,000square feet.

Equistar Chemicals LP closed thePort Arthur polyethylene plant in lateFebruary 2001, leaving 135 unem-ployed. The shutdown was attributedto rising production costs and a lack ofbusiness. Terra Industries closed itsBeaumont Methanol plant in late 2000because of the high price of naturalgas. The plant reopened in February2001 after gas prices declined, andthe price for the products producedincreased.

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