2016 CEDA APPLICATION

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Clifford Bates
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1601 RIO GRANDE STREET, SUITE 455 AUSTIN, TEXAS 78701 512-480-8432; FAX 512-472-7907 http://www.texasedc.

1 1601 RIO GRANDE STREET, SUITE 455 AUSTIN, TEXAS ; FAX CEDA APPLICATION All Applications Must Be Received By September 2, 2016 The 2016 TEDC Community Economic Development Awards (CEDA) will be presented during TEDC's Annual Conference Award s Luncheon on October 20, 2016, in San Antonio, Texas. The recipients will be judged in each of the 5 categories that have made the most significant contribution to economic development in their community and the State of Texas. AWARD CATEGORIES The CEDA will be given to one community from each of the following five population categories: (as currently marketed). I. Population less than 5,000 II. Population of 5,001 to 15,000 III. Population of 15,001 to 40,000 IV. Population of 40,001 to 100,000 V(a). Population of 100,001 to 250,000* V(b). Population of 250,001 and above* *Note: At least three (3) applications must be received in both V categories in order for them to be judged separately. If less than three (3) applications are received in either V category, then all applications will be judged as one V category. NOMINATION: Name of Community: Terrell Economic Development Corporation TEDC Member Name: Dawn Steil (individual member, not organization) Address: PO Box 97, Terrell, TX Telephone #: Fax #: Address: dawn@terrellexas.com Social Media Accounts: Twitter Handle: FaceBook Community Population (as currently marketed): 16,000 Application Submitted By: Dawn Steil Telephone #: Address: dawn@terrelltexas.com

2 Media Contacts: (limit 3) Organization: The Terrell Tribune Contact Name: Bob Janss Address: Organization: Contact Name: Address: Organization: Contact Name: Address: SUBMITTED FOR: Business Retention Business Expansion (CIRCLE ALL THAT APPLY) Business Attraction Community Involvement SUMMARY REVIEW Please attach a brief description of the economic development efforts and accomplishments (projects and programs). Within this description, address the awards criteria of innovativeness, transferability, community commitment, measured objectives and secondary benefits. The application can be no longer than four (4) conventionally formatted 8.5" x 11" pages. Please also submit up to five (5) digital photographs to amy@texasedc.org. The photos must be submitted with the application form. The photographs will be presented during the CEDA luncheon at the TEDC s 2016 Annual Conference.

Terrell passed the half-cent sales tax for economic development in 1990 and has used the tax primarily for infrastructure expansion, sales tax, job grants and the creation of two new business parks.

3 2016 CEDA Award Application Terrell, Texas Terrell, Texas is located on Interstate 20, 23 miles east of Dallas. Our proximity to the metroplex and the available transportation network has enabled Terrell to attract numerous economic development projects. Terrell passed the half-cent sales tax for economic development in 1990 and has used the tax primarily for infrastructure expansion, sales tax, job grants and the creation of two new business parks. Since the creation of the Type A (4A), we have had 32 new facilities constructed, 16 expansions, 6 existing buildings reoccupied and over $500 million worth of taxable value added to our tax rolls. Included in these announcements are 4 Fortune 500 Companies, one of which is currently expanding. The goals and objectives of the Terrell Economic Development Corporation (TEDC) and our community are to create primary jobs and add value to the tax rolls. In the past 12 months we have added $80,900,000 to the tax rolls, 462,000 square feet of new construction and expansion, 1 existing building reoccupied and created 515 new jobs. A tremendous secondary benefit to the capital investment is the generation of more than $1,200,000 annually to the tax rolls of the Terrell Independent School District. With the recent passage of the Terrell ISD $45,000,000 bond issue, this will allow the Terrell ISD tax rate increase to be lower than originally expected. BUSINESS RETENTION/EXPANSION Oldcastle BuildingEnvelope is the leading supplier of products specified to close the building envelope. They include: custom-engineered curtain wall and window wall, architectural windows, storefront systems, doors, skylights and architectural glass. Oldcastle BuildingEnvelope is a U.S. subsidiary of CRH plc., one of the top five international building products companies. With operations in 35 countries, CRH employs approximately 75,000 people. The local Oldcastle division is the aluminum fabrication component of CRH plc. Oldcastle began operations in Terrell in 1962 with 42,000 square feet, 35 employees and operated as Texas Aluminum Corporation. The company has now grown to over 700,000 square feet and 650 employees. In October 2015, the Terrell Economic Development Corporation (TEDC) began negotiations with Oldcastle on a 65,000 square foot facility to house their new anodizing equipment. The new state-of-the-art facility will employ 25 new employees and add more than $15,000,000 to the tax rolls. Work began on Phase I in May of this year and is expected to be complete in the first quarter of During the negotiations, Oldcastle was approved for a second expansion of 150,000 square feet with an investment of $13,500,000. When Phase I & II are both completed it will add an additional 215,000 square feet, 50 new employees and $28,500,000 to our tax rolls. In support of the Oldcastle expansion Terrell utilized an 8- year tax abatement, a job grant for training of employees, waiver of all building fees and an infrastructure grant. Formed in 1956, Dixie Craft Manufacturing began as a small, family-owned manufacturer in Alabama. Maytex Store Fixtures, a similar manufacturer in Terrell, Texas, was established in The merger of Dixie Craft Manufacturing and Maytex Store Fixtures formed Madix, Inc. in With the acquisition

of Spencer Products in 2003, the family-owned business has expanded its manufacturing facilities to include a total of 2.

Madix works in partnership with retailers and national brands in a range of industries to design and facilitate the use of fixtures and racks for retail stores.

Madix broke ground on Phase I in July 2015 and opened the expanded facility in January 2016. Following the opening, Madix broke ground on Phase II, which is currently under construction.

4 of Spencer Products in 2003, the family-owned business has expanded its manufacturing facilities to include a total of 2.3 million square feet of production space in Terrell, Texas and Goodwater, Alabama. Madix works in partnership with retailers and national brands in a range of industries to design and facilitate the use of fixtures and racks for retail stores. The TEDC began discussions with Madix concerning a 68,000 square foot addition to an existing facility and a second phase which includes a new 100,000 square foot facility. Madix broke ground on Phase I in July 2015 and opened the expanded facility in January Following the opening, Madix broke ground on Phase II, which is currently under construction. The two phases will add 168,000 square feet with a total investment of $10,000,000. Once both phases are completed the company will add an additional 100 new jobs. This expansion will bring the total square footage in Terrell to 1,300,000 square feet and total employment to 800. The Terrell incentive package included tax abatement, job grants and infrastructure grants. Madix is also a state approved Enterprise Zone project resulting in rebates paid to the company on sales tax paid for construction materials. Walmart Inc. is the nation s largest retailer and number one on the Fortune 500 list of companies. In 1999 Terrell was chosen as the location for a brand new prototype perishable food distribution center. The original facility was 420,000 square feet and added more than $30,000,000 to the tax rolls. The TEDC began negotiations with Walmart for the first expansion of the facility since the opening. In May 2016 Walmart broke ground on an additional 17,000 square feet which will add 100 new employees and bringing their total employment to 600. While the expansion itself is not huge, the capital investment in building and equipment is $16,400,000 bringing their total tax value to nearly $50,000,000. The Walmart DC is located in Metrocrest Business Park, which is adjacent to Interstate 20 and FM 148. Because of the growth in both retail and manufacturing in this area, the city began working on an expansion of FM 148 which includes left turn lanes in the business park and a new bridge over Interstate 20. We began working with Walmart officials in Bentonville, Arkansas on a Community Development Block Grant (CDBG) to fund the much needed road improvements. Terrell was awarded the grant based on the support of the Walmart expansion in the amount of $750,000 from the Department of Agriculture. This is a perfect example of the importance of both public and private partnerships in economic development. This road construction, when completed, will serve both the business park and the new retail development. BUSINESS RECRUITMENT Buc-ee s was founded in 1982 by Arch "Beaver" Aplin III and Don Wasek. Traditional c- store products such as chips, ice cream and soda compete for shelf space alongside specialty items, such as kolaches, jerky and fudge. Also in stock are deer feeders, beachwear and artwork. The Terrell Buc-ee s project began when County Judge Bruce Wood, a long-time fan of the Buc-ee s in Madisonville, Texas, called and left a message for Beaver Aplin and said he should build a Buc-ee s in Terrell. Within 30 minutes Beaver returned the County Judge s phone call and a meeting was scheduled with TEDC and city. On the very first visit, Beaver stated that he would build a Buc-ee s in Terrell if the Interstate 20 service road could be lengthened and FM 148 widened to 4-lane. On June 22, 2015 Buc-ee s opened in Terrell America! The project encompassed a joint development agreement between Buc-ee s, Terrell Market Center and Baylor Hospital. The entire 60-acre site was developed jointly between these three entities. A very important component of the project was a $1,000,000 Community Development Block Grant (CDBG) sponsored by Bucee s and the City of Terrell to reroute the Interstate 20 exit and service road. This joint public private

partnership was one of the keys in locating Buc-ee s to Terrell. The city and TEDC jointly extended utilities and installed traffic signalization to ensure adequate traffic flow.

5 partnership was one of the keys in locating Buc-ee s to Terrell. The city and TEDC jointly extended utilities and installed traffic signalization to ensure adequate traffic flow. The 62,000 square foot Buc-ee s features 86 gas pumps and 100 of the cleanest restrooms in America. The Terrell incentive package included 380 and 381 agreements, infrastructure extensions, Community Development Block Grant (CDBG), Tax Increment Financing District (TIF) and waiver of all building, impact and utility fees. The development of the Buc-ee s site has resulted in the opening of several new restaurants and a new Marriott Hotel under construction. The investment of 4A dollars for utilities will reap tremendous benefits in the future with increased sales tax dollars that fund our business parks and the creation of primary jobs. This year s sales tax is up 17%. Steelway International provides a variety of services spanning from light-gauge metal truss fabrication and construction to erecting floor systems and metal decks. Steelway has a diverse portfolio, including projects in the retail, military, restaurant, hotel, assisted and senior living, residential and commercial sectors. Steelway first approached Terrell concerning an existing building in our Aiport Business Park. The building was not suitable for the company s needs and the focus shifted to EDC owned property to construct a new facility. During the course of negotiations and due diligence, one of our existing companies, Consolidated Systems Inc., was sold and their facility declared surplus. We facilitated meetings between Steelway and the new ownership, which led to the purchase of the former CSI facility by Steelway. The 100,000 square foot facility is rail served and located in Metrocrest Business Park. CSI ceased operations in Terrell November 1, 2015 and Steelway purchased the building in December and began operations in January Their current employment is 40 and is expected to double in the next two years. The EDC provided a job grant and waiver of all building fees related to the purchase of the property. While it was very disappointing to have CSI close the facility, we actually gained a new company that will have twice the employment and payroll. COMMUNITY INVOLVEMENT In July of 2015, Workforce Solutions for North Central Texas received $75,000 from the Texas Workforce Commission to support a collaboration between Terrell Economic Development Corporation, Terrell Independent School District (TISD), and Trinity Valley Community College (TVCC) to improve skill sets for welders. The Terrell Economic Development Corporation matched the grant with an additional $75,000 to help fund the High-Demand Job Training Welding Program at TISD. The primary objective of the program is to provide highly skilled welders with nationally recognized industry certifications. Occupational Safety and Health Administration certification, 15 hours of dual college credit through TVCC, and the opportunity to take the American Welding Society certificate exam make the program attractive to junior and senior students. The specialized classrooms and curriculum, designed with input from manufacturers in Terrell, are also used by adult learners to train for high demand jobs or to improve upon their skills. Terrell first created the Career & Technical Education program in This very successful program resulted from the cooperative effort by all segments of our community. Terrell Independent School District, Trinity Valley Community College, Terrell Economic Development Corporation, Terrell Chamber of Commerce and local industries all participated to make this program a success.

6 The addition of the manufacturing component to the Career and Technical Education program is a great business retention/expansion tool. As companies are expanding they can be assured assistance in training their workforce if needed. Nucor Building Systems is underwriting the welding program and has committed to hire the top two graduates from the class for the next 10 years. AutoZone Distribution Center is underwriting the automotive program. With the ability to customize training for existing and new companies this is a very attractive incentive to offer companies relocating or expanding in Terrell. Terrell first created the award winning Work in Terrell Program in The program consisted of billboard, newspaper, cable TV, direct mail and poster advertisement. The program centered around the toll free 877- TERRELL number and employed a part-time staff person to answer calls and mail out packets. The program also hosted two job fairs at Trinity Valley Community College with 700 in attendance at each. This very successful program resulted from the cooperative effort by all segments of our community. The program ended in December 2001 with over 95% of all job vacancies filled. The program was revived in 2006 as unemployment rates were rising. Since that time, we have continued to monitor unemployment rates, job vacancies and turnover rates. Local HR managers representing both business and industry met in May 2016 to discuss issues related to turnover and job openings. The employers recommended that we re-start the program and a plan of action was developed. Initial funding for the program came from the Terrell Economic Development Corporation in the amount of $40,000 along with funding from local business and industry. A rate of $5.00 per existing employee was established for each business and industry participating. The 6-month program kicked off June 1, The re-implemented program consists of job fairs, newspaper, billboard, social media and internet advertisement. A new job tool was added to the TEDC website as well. CONCLUSION Since Terrell passed the half-cent sales tax in 1990 we have had tremendous success in attracting quality companies and creating many thousands of new jobs. One of the main reasons for our success is the ability of the community to work together by forming public and private partnerships between the city, county, school district, college district and existing business. We have a group of business leaders that meets every Tuesday morning for coffee to discuss both economic and community development issues. This innovative approach to community involvement ensures that Terrell is committed to the success of both our business retention and expansion efforts. The four expansions in this application prove the importance of the business retention program and remind all of us in the economic development profession that more jobs are created when businesses are expanding in your community rather than relocating. During these most recent successes, Terrell used tax abatements, job grants, 380 and 381 agreements, TIF and Power Center incentives and an assortment of other creative incentives to enable these projects to either locate or expand in Terrell. With the overall decline in manufacturing in the United States it is imperative that communities work together with local, state and federal officials to remove roadblocks that prevent the creation of new jobs and new investment in our state.

Public/Private Partnership Program. November 4, 2013

Public/Private Partnership Program November 4, 2013 Purpose Review the City s Public/Private Partnership Program Guidelines & Criteria Receive input from the Committee concerning the program 2 Public/Private