Ten years ago, Midlanders passed a 4A economic development tax with the aim of bringing a vein of diversification to the historic boom-and-bust cycle of the oil and gas industry.
In addition to diversification efforts, job creation in industries including the energy sector has become a focus, and Midland Development Corp., a product of the sales tax addition, has since signed contracts with more than 30 businesses or organizations that created nearly 900 jobs, according to contracts signed by the MDC.
Revenue also has been used to bolster education and research programs, as well as for infrastructure improvements such as the extension of Garfield Street and the water lines planned for along State Highway 191.
Those who've been involved with the organization said its 10-year anniversary marks just a step in the process. While MDC officials claim several successes, true economic development is a long-term investment that can require decades of work to yield true transformation, they said.
"We didn't become an oil community just yesterday. ... We're on a 50-year horizon," said John James, city councilman and former MDC board president. "Diversification, infrastructure -- all of those things are critical. This is a 50-year development."
Critics of the tax said it has run its course. Some argue the government never should have taken a role in incentivizing the private industry, while others said the idea of recruiting a large-scale non-industry employer simply is not feasible in Midland's oil-based economic cycle.
"There is no penalty for failure, and that's quite obvious because we've got 10 years of empirical evidence that says they've soaked up nearly $30 million in taxes out of the economy and have zero to show for it," said Doug Heck, a longtime opponent of the 4A tax and site administrator of the blog Jessica's Well.
The quarter-cent tax is charged through sales tax and is to be used for economic development activities that either keep existing jobs and businesses in Midland, attract new businesses from target industries, improve areas of town that meet the city's development objectives, among other objectives. Midland's 4A corporation -- the MDC -- is one of 222 statewide, according to the Texas Comptroller of Public Accounts. After sales tax receipts are collected for the end of the fiscal year, the MDC should have in excess of $23 million on hand, city Finance Director Bob McNaughton said.
The use of the tax varies between cities, which is part of why success is difficult to gauge clearly, according to some development experts.
"One of the great challenges in economic development is measuring success," said Terry Clower, director of the Center of Economic Development and Research at the University of North Texas. "It's always a matter of how efficiently and effectively you spend the money."
The MDC has spent more than $19 million since its inception, according to copies of audits and financial statements the MDC provided through a Texas Open Records Request. Of that, more than $6.5 million has been paid through direct incentives to business, more than $3.78 million to advertising and marketing and more than $5 million on administrative costs. Another $2.3 million has been spent on infrastructure projects, and $6 million is committed for the planned water line.
Some agreements, such as the recent contract with Apache Corp., have yielded more jobs and local investment than was promised. Others, such as Countrywide Wide Home Loans Inc. and Trace Engines, have been canceled or amended to require far fewer jobs than once was stipulated and MDC money provided to be repaid.
As a whole, leaders said initial objectives have been reached. Wages have increased, and employment levels are up. Plus, Midland now is considered by industries that before knew nothing of the Tall City other than it was once the home of former President George W. Bush.
"Has it been a failure?" asked Robert Rendall, current board chairman. "Right now, we've got the strongest economy probably in the country. I don't think anybody would say that's because of the MDC, but we've been driven to help facilitate that growth, and we've been able to feel advantages of that in our community. I don't think we've been a failure."
Economic development history
In the 1960s, the then-First National Bank hired its own economic development staff with the idea that two-thirds of any new workers likely would make deposits at that bank, said Doug Henson, former board chairman, who was hired out of college to work in the bank's economic development department.
Then, in the late 1970s and early 1980s, the group Forward Midland formed. Members believed the city might be better sustained through the boom-and-bust cycle if enough money could be raised to attract certain businesses, Henson said.
"Businesses don't grow without management and people," he said. "Communities don't grow without leaders helping."
The creation of an official economic development corporation was sought for several years. The tax was voted down by residents twice in the 1990s. It was approved in 2001 by just more than 58 percent of voters.
Jerry Morales, now an at-large councilman and former MDC board member, was among those who campaigned for the measure in 2001. At the time, the economy was in just the right place to bring forth such an initiative, he said.
"Everybody knew oil and gas was the base for this economy, but there was opportunity for medical, aviation, warehousing at that time," Morales said. "We felt like we really could go into some areas that weren't happening in other parts of West Texas."
He and others campaigned for the tax on that theme of diversification. Morales said they found others agreed industries were needed that could add stability to the ebb and flow of the oil and gas industry.
Abilene, Amarillo and Odessa already had passed economic development taxes by the time voters took a third look at the idea in Midland. Amarillo had landed a deal with Bell Helicopter that brought more than $25 million in investment and now employs more than 1,000 people.
Grant Billingsley, the MDC's first board president, said it was time for Midland to get in the game. Economic development in Texas increasingly was being done through organizations on the local level. Unless Midland agreed to compete in that arena, it would be left on the sideline.
"Seeing those successes in our geographic neighborhood, I felt like we needed to be able to compete with them," Billingsley said. "I always felt we would be able to compete once we chose to compete."
When it started, the MDC didn't have a staff. It was operated solely by the board while it worked to establish guidelines and set a course of action for the corporation.
During that time, Billingsley said the board worked to follow leads and prospecting was done from the office because there wasn't a budget to attend conventions or do much marketing.
The structure evolved when the Midland Chamber of Commerce was selected in the fall of 2002 to facilitate the MDC's economic development activity. With a staff of up to 6 people, the MDC became an organization that was able to not only recruit from Midland, as had been done initially, but one that traveled to trade shows, worked with firms to facilitate meetings and continued working with local businesses on retention and expansion, among other things, Rendall said.
The MDC no longer is under the chamber; it became its own entity a few years ago. Henson, who was chairman at that time, said there was concern the MDC spent too much on administration under the chamber, so a split was agreed to. The MDC board manages the MDC.
"The council was starting to question the return on investment with that structure," Rendall said of the chamber.
At its height in fiscal year 2008, administrative costs for the MDC reached just more than $782,000 -- which put the line item at not significantly less than the $849,662 that was paid out in incentives during that year.
Administrative costs include salaries, benefits, rent for offices, utilities, phones and other expenses needed to operate day-to-day, McNaughton said.
Costs dropped after 2008, with $680,385 being spent in fiscal year 2009 and just more than $700,000 in fiscal year 2010. For the fiscal year that ended Sept. 30, the MDC expects to come in well under budget for administration, having lost two positions after a resignation and the assumption of the half-time position by the Downtown Midland Management District.
Mike Hatley, MDC president, said in the last four years they've become more efficient in operations both in-house and in partnering with others in the region during trade shows and outreach initiatives to increase the exposure of West Texas.
Rendall said he understands concern that the organization could spend too much on staff and activities. But the staff of four in place now is constantly busy and having that staff to lay the groundwork for future successes is needed, he said.
"The thought when it was passed by voters was to smooth out some of those ups and downs. We've probably not been as successful in that as (the voters expected), but it's been beneficial to have it," Rendall said. "I still think we've got the groundwork laid."
Each board president or chairman points to a few different contracts as points of success during the 10 years since the MDC was established.
Accutel, now Semperian, was the first, and in Billingsley's mind it was one of the most successful deals. The company increased its job creation and investment commitment after the first deal was signed and brought nearly 500 jobs to Midland. Not all of those stayed in place after the contract had ended. But board members said it still represents jobs that were here and people who purchased items and paid taxes.
An incentive agreement with Submersible Oil Pumping Services signed in 2003 still is one of the winners to James. The city councilman said the local company needed assistance to grow and was able to take the incentive provided and expand beyond what they had promised. The company agreed to create 13 new positions at a payroll of more than $580,000. In 2004, it had added 24 new jobs with a payroll of $1.2 million.
Henson touts the contract with Midland Memorial Hospital as one of the more indirectly successful efforts in business recruitment because availability of proper medical care is part of attracting employees and businesses.
The MDC provided the hospital $1.05 million for recruitment efforts that brought 34 doctors to town.
Russell Meyers, president and CEO at Midland Memorial Hospital, said it was of great benefit for the hospital because it brought in specialists including a dermatologist, neurosurgeon, plastic surgeon and ER physicians who were greatly needed.
"We're just very, very pleased with the results we've gotten," he said.
The deal with Apache Corp., which was approved in 2010, is an example of great expansion in Midland's chief industry, Rendall said.
Apache may have come to Midland without the incentive, but it has been a great partner, Rendall said. The company already has nearly four times the jobs it agreed to in its $250,000 contract and continues to work with the MDC to recruit new employees to Midland.
Rendall said MDC will continue looking to diversify but that contracts like Apache's will have a place in Midland because the energy sector -- whether oil, wind or solar -- always will be a staple.
"You have to recognize that is our bread and butter industry," he said.
In addition to projects, former chairman Jim Nelson said the 2007 TIPS strategies assessment was helpful in creating a clear direction for the MDC going forward.
"It got us focused," he said, adding they knew there were opportunities around the airport but were maybe less in tune with downtown and other regions.
The four opportunity zones identified were the central business district, which includes downtown; Midland International Airport and Interstate 20; and north-central Midland, which includes Midland College and the ClayDesta area. In addition, the five areas to be targeted were the energy industry, professional services, health care, transportation and warehousing and aviation.
One of the main challenges for every board has been dealing with the uniqueness of Midland's economy, leaders said.
When oil is high, unemployment is low and it's difficult to attract businessesbecause there may not be enough people to hire. To recruit successfully when the economy dips requires networking when times are good.
"Economic development at its best is a challenge," Henson said. "Then you add in the cycles that we've been through, and it's really taken an effect on us."
Hatley said they're in position to "make the short lists" of companies. By continuing to recruiting even when oil activity is high, like it has been this year, MDC puts itself in the right position for when the national economy rebounds and companies start to expand, Rendall said.
"We can't just sit and say we're here when it happens," he said. "We're going to have to be proactive and aggressive."
Specific challenges also have come up with contracts and investments.
The contract with Countrywide Home Loans Inc. that was signed in December 2006 looked like one of MDC's bigger deals. The corporation had agreed to add 200 jobs in Midland; each employee would have an average salary of $30,000 a year.
Nelson said Countrywide "was on the bleeding edge" of the financial crisis and pulled out of Midland before fulfilling its contract. Like any investment, there is risk, and going in, MDC know not every investment can work perfectly, he said.
And even though jobs weren't added, Billingsley said Countrywide taught the board an important lesson in how to structure contracts.
"Countrywide said, 'Why don't we come to you with jobs created and you give us incentive based on what we did,'" Billingsley said. "We had finally hit upon a formula that worked."
The about $4.5 million Entrada Business Park and Building A also have been one of the "controversial" investments, Nelson said.
The building was completed near the end of 2004. It remains empty. But, Nelson and James said it's been a vital component of the MDC's economic development offerings.
"When we made the decision to put it out there, the people who we were in competition with had buildings," James said. "We were years behind communities that had been out there. We just didn't have those resources. It's obviously sad the building's still empty."
With the building, Billingsley said the MDC was able to stay on the list of cities being considered by several companies. Even if the company didn't end up needing the building, just having it there gave Midland an edge to compete in certain industries, he said.
"If you don't have that, you're not competing," he said. "The competition is over."
Critics point to these and other cases as reasons for the MDC to get out of the incentive business.
"Midland has gone through two hot oil cycles with big economic activity," said James Busby, who blogs under the auspice of "Ospurt," and voted for the tax. "It just seems like they start working down a path and then we have low unemployment and they can't bring people in, so they change their focus. Then employment goes up, and they change their focus. I would've expected more concrete projects to have come to fruition."
Hatley and Rendall said aviation is a prime target and that the energy industry, including solar power, will be key as they pursue future deals. Infrastructure also will continue to have a place, though it won't ever become the sole focus, leaders said.
James said without the economic development tax, other taxes would increase. The MDC has helped increase the property tax base downtown, added employees who pay taxes and invests in infrastructure that if not paid through the MDC would have to be paid for elsewhere, he said.
If people's expectations have not been met, it's likely because they expected big results right away instead of understanding it's a generational project, he said.
"I think it was a mis-sale," James said. "The mis-sale was about the horizon, not the objectives."
Morales said if he were asked to campaign for the tax now, he likely
wouldn't agree. While he believed in its objectives at the time, he now thinks the conditions make it difficult to attract someone to Midland.
"If we were to do it today, I probably would not be in favor of going after a 4A sales tax," Morales said.
Heck said after 10 years, he'd like to see the council put the tax before the residents again. He said he respects those who are involved with the MDC and believes they're making a good effort, but that the broader system is flawed and one voters should have another chance to weigh in on.
"We're at a point in the country's history where we really need to be thinking about what kind of participation the government has in the private market," he said.
MDC leaders said in Texas, this is how the game is played. Without an economic development corporation, Midland would not be a competitor.
Agreeing with James and others, Hatley said economic development is a long process and one in which they continue to make progress.
"Economic development efforts are a long-term, ongoing, day-to-day process," Hatley said. "Have we done anything of note? In some people's eyes, yes, and in some people's eyes, no."
Kathleen Thurber can be reached at firstname.lastname@example.org.
Contracts entered into by the Midland Development Corp.:
Contract signed: April 5, 2002
Jobs: Agreed to create 490 jobs by 2006 (three contracts were signed that increased the total as Accutel indicated it would continue to grow)
Investment: Accutel agreed to lease a space on Marienfeld Street for five years and invest a total of $2.8 million. (The investment commitment was made through the first contract and amendments that upped the total as the company grew).
Incentive: $439,500 was provided through three different economic development contracts.
Today: All stipulations of the contract were met by the fifth anniversary as required, though staff levels did fall after that.
C.C. Western Inc.
Contract signed: Oct. 22, 2002
Jobs: Agreed to house three employees at a gross payroll of $100,000 or more at its location near Midland International Airport.
Investment: The company agreed to lease from the city facilities at the airport for at least four years. The city was to be paid a rate of $1,500 per month.
Incentive: C.C. Western Inc. had the ability to add truck wells and bay doors to the facilities it leased in exchange for a rebate on rental costs. The rebate could not exceed $30,000 and improvements had to be completed by December of 2002 to be eligible.
Endura Products Manufacturing
Contract signed: Jan. 13, 2003
Jobs: Endura agreed to add 10 positions.
Investment: Endura agreed to invest $500,000 in equipment and improvements at its oil field chemical manufacturing plant and add water and sewer lines.
Incentive: The MDC was to pay $50,000 to go toward the addition of water and sewer lines. The money was to be repaid if the 10 jobs weren't added.
Today: The contract was canceled in December 2003 and the MDC was paid back $21,269.45, which is all it had paid to Endura at that time.
Submersible Oil Pumping Services
Contract signed: April 22, 2003
Jobs: SOS agreed to have 26 positions in Midland at a payroll of at least $1,165,452 by April 2004. When the contract was signed it had 13.
Investment: SOS was to spend $240,000 at the property it leased on Commerce Drive.
Incentive: A forgivable loan of $50,000 was provided in June 2003 and an additional $30,000 in June 2004.
Today: SOS more than fulfilled its obligation during the length of the contract.
Big Tex Trailer Manufacturing
Contract signed: Nov. 25, 2003
Jobs: Big Tex agreed to create at least 20 new jobs. Before the contract was signed, the company already had 197 employed.
Investment: The company anticipated spending more than $240,000 on its property near Interstate 20 during the first year of the contract.
Incentive: A $70,000 forgivable loan was provided in December 2003.
Today: Production at the Midland location has closed and the company now has fewer than 50 employees here, staff said.
Contract signed: Nov. 25, 2003
Jobs: The company, which had 18 employees in Midland, was to create 10 additional jobs by November 2004. Total payroll was to reach at least $722,200 by November 2004.
Investment: TMP agreed to spend at least $600,000 purchasing and improving its property near the Midkiff Industrial Center.
Incentive: The MDC provided a $50,000 forgivable loan in December 2003.
Today: The full 28 employees were still on staff in 2005 as required.
Contract signed: July 13, 2004
Jobs: Cintas agreed to add 12 employees to its staff of 26 and increase its payroll by at least $217,000.
Investment: Cintas also agreed to spend $950,000 on land, equipment and other capital investments.
Incentive: The MDC agreed to provide a $12,500 forgivable loan up front and an additional $12,500 by January 2006. The contract was amended in November 2005 to allow the company another year to create its 12 jobs. Employees still had to be on staff through 2008, according to the contract.
Today: Cintas now employs about 30 partners at its Midland office, a spokeswoman said.
Contract signed: July 13, 2004
Jobs: Novastar was to create 10 additional jobs at a payroll of $392,000 by November 2005.
Investment: Novastar agreed to improve the street infrastructure and drainage on Wolfcamp Circle and Mulberry Lane and also was to invest $950,000 for the purchase of land, equipment and other capital investments.
Incentive: A $70,000 forgivable loan was provided in two payments for the extension of water lines and improvements to street infrastructure. The second payment was provided after the city verified such improvements had been made.
Today: Novastar has around 30 employees now, having tripled its requirement since 2005, staff said.
W. Power and Light
Contract Signed: Nov. 30, 2004
Jobs: To create 23 by 2007 at a payroll of $1 million. The requirements were amended in 2006 to 14 employees at a payroll of $700,000 by 2008.
Incentive: A forgivable loan of $130,000 to be paid in three installments was agreed upon.
Today: The agreement was rescinded in June 2007 when the company reported the "volatile" electricity industry necessitated it proceed with more caution in its growth. It repaid the MDC$35,000, the total it had already been provided.
Midland Community Development Corp.
Contract signed: July 1, 2005
Development agreement: The MDC previously had transferred $50,000 to the MCDC for business development. The MCDC agreed to help the MDC with a small business micro-lending program for one year in exchange for that $50,000.
Today: David Diaz, MCDC executive director, said the agreement lasted only for that one year. A small business loan was provided to Susie's South Forty. No other small businesses were assisted through the program during the agreement, he said.
Contract signed: Sept. 13, 2005
Jobs: UT Lands agreed to create 16 jobs by 2006 at a payroll of at least $800,000. The contract was re-signed in 2007 and required the jobs by August 2007. The jobs have to be maintained through the fifth anniversary of the 2007 contract.
Investment: UT Lands agreed to spend $850,000 for land, equipment and capital investments.
Incentive: The MDC provided $10,000 toward the platting costs of UT Lands' property, as well as a $115,000 payment for jobs created.
Today: All required jobs still are on the payroll, staff said.
University of Texas Systems/High Temperature Testing and Test Reactor
Contract signed: Feb. 22, 2006
Education contract: The MDC provided $500,000 to help with a program to educate and train nuclear and high temperature scientists and engineers. Odessa and Andrews also contributed $500,000 each.
Countrywide Home Loans Inc.
Contract signed: Dec. 8, 2006
Jobs: Agreed to create at least 200 with annual average salaries of $30,000 or more.
Incentive: The MDC agreed to pay up to $2.5 million for jobs created. The contract was rescinded in January 2008 after the company pulled out of Midland because of "unexpected changes in the financial market." Countrywide re-paid its $700,000 up-front incentive, which is the only money it had received.
Today: No longer in Midland
Contract signed: Dec. 20, 2006
Jobs: Initially, Trace contracted to create 114 jobs by 2013. In August 2008, the contract was amended to provide more time, and in July 2010 it was amended again. At that time, the job requirement was reduced to 25 jobs to be maintained through 2017.
Investment: Trace agreed to invest $7.85 million in buildings, equipment and other improvements.
Incentive: A $400,000 forgivable loan was to be provided. When the job requirement was decreased, the incentive fell to $325,000.
Today: Trace has 25 full-time employees on staff, said David Czarnecki, CEO at Trace.
Contract signed: July 25, 2007
Jobs: BCCK agreed to add 11 employees by August 2008 at its first facility with total salaries and benefits of at least $635,000. It also was to add four employees at its second property with total compensation of $135,000.
Investment: BCCK was to spend at least $340,000 on its property on North Big Spring Street and $2.13 million on its 20-acre tract in Midland County. Money could be spent on land, equipment, fixtures or other improvements.
Incentive: An $180,000 forgivable loan was provided by Aug. 1, 2007 and an additional $45,000 in 2008 if all requirements were met.
Today: BCCK now employs more than 40 in Midland and has more than doubled its job requirement, staff said.
Contract signed: September 2007
Jobs: Reliant was to hire 55 at a payroll of $2.28 million by 2010. The agreement was canceled in September 2008.
Investment: Reliant had agreed to invest $3.65 million in capital expenditures.
Incentive: The MDC had agreed to provide a $250,000 forgivable loan.
Today: The agreement was canceled and jobs not required since money was never provided.
Sentry Pumping International
Contract signed: Nov. 29, 2007
Jobs: Sentry agreed to add 50 employees at a payroll of $3.35 million by December 2009. The contract was amended to provide Sentry through June 2011 to add 50 jobs.
Investment: The company was to invest at least $2 million in infrastructure, equipment and other expenditures related to its business.
Incentive: A forgivable loan of $250,000 was to be provided in three payments.
Today: Sentry was provided $200,000 and now is being asked to repay $100,000 after it failed to meet its job target by about 20 positions. The final $50,000 agreed to in the contract never was paid.
Midland Memorial Hospital
Contract signed: Dec. 17, 2007
Jobs: No set number was agreed to.
Incentive: The MDC agreed to provide up to $350,000 every year for up to three years to assist the hospital in its recruitment of new physicians. The contract was amended in 2010 to allow the hospital to use the $223,844.42 that was not spent at the end of fiscal year 2010 on recruitment during 2011. Funds were used for travel costs and fees paid to recruiters, among other related costs.
Today: Midland Memorial Hospital utilized the full $1.05 million and recruited 34 doctors over a period of four years, said Russell Meyers, president and CEO.
Air service incentive program:
Contract signed: June 11, 2008
Incentive: The city and the MDC each agreed to pay $100,000 to Midland International Airport's Service Incentive Program
Contract signed: July 23, 2008
Infrastructure investment: The MDC agreed to provide $329,661.82 to HPG in exchange for the company removing and relocating electrical facilities related to the demolition of the First National Bank and Metro buildings. The intent was to improve the city block and, in turn, promote expansion or development of businesses there.
Natural Gas Services
Contract signed: April 9, 2009
Jobs: NGS agreed to add 10 employees at its space downtown with salaries of at least $380,000 by December 2010. At its fabrication facility, it agreed to add 39 new employees at total salaries of $1.5 million. The time requirement for both benchmarks was pushed back to 2012 through an amendment passed in March 2010.
Investment: The company agreed to invest at least $500,000 at its downtown property and $4 million at its second property on equipment, land or other improvements.
Incentive: A forgivable loan of $275,000 was to be provided in two payments.
Today: NGS has until the beginning of 2012 to report its employment.
Contract signed: June 16, 2009
Infrastructure investment: Permian Plaza LLC., a wholly owned subsidiary of Basic Energy, agreed to invest $15 million in the renovation of a downtown building and parking structure. Basic Energy had agreed to leave 75 parking spaces for non-tenants. Between the building's tenants, it also agreed there would be 50 employees in the facility.
Incentive: A $2 million forgivable loan was to be provided in two installments.
Today: The agreement was rescinded so Basic could sell its facility. The $1 million it had received was repaid to the MDC.
Garfield Street extension
Contract signed: Aug. 3, 2009
Infrastructure incentive: The MDC agreed to provide $1,789,800 to the city for the extension of Garfield Street to Interstate 20. The project was estimated to cost $5.525 million. The Texas Department of Transportation provided $1.6 million toward the project. The extension was approved to help provide better access to Midland Memorial Hospital and to promote commercial and industrial development in that area.
Contract signed: Aug. 19, 2009
Education contract: The MDC agreed to pay a $20,000 forgivable loan to Midland College if the college offered a wind energy training course eight times.
Today: Contract was fulfilled through continuing education courses offered.
Airport hangar renovation
Contract signed: March 1, 2010
Infrastructure agreement: The MDC and the city agreed to develop a comprehensive marketing plan for and make improvements to Hangar S-11A. The city is not to rent the hangar to any business not related to the aviation industry.
Contract signed: May 19, 2010
Jobs: Apache agreed to bring 51 jobs to Midland with total salaries of at least $5 million. It had 19 employees in Midland in January 2010 and a payroll of $1.48 million.
Investment: The company agreed to invest at least $750,000 by January 2011.
Incentive: A forgivable loan of $250,000 to be paid in two installments is being provided by the MDC. The first half was paid in May of this year and the next half will be provided in May 2012 if all 51 jobs still exist.
Today: Apache has 202 employees in Midland and a payroll of more than $18 million, said John Christmann, vice president of the Permian Region.
West Texas Coalition for Innovation and Commercialization (WTCIC):
Contract signed: May 28, 2010
Education agreement: The MDC as well as Abilene, Amarillo, Lubbock and San Angelo each provided $25,000 to the WTCIC, which was the regional center that supported the Texas Emerging Technologies Fund.
Texas Tech University
Contract signed: May 28, 2010
Education agreement: The MDC gave $75,000 in July 2010 and $10,000 in November 2010. The payments were made to further work at the National Institute for Renewable Energy and the National Wind Resource Center.
UTPB CEED Building
Contract signed: Nov. 19, 2010
Education agreement: The MDC provided $10,000 toward research and new technologies that are meant to enhance economic development in the future in the region.
Airways Drive Improvements
Contract signed: Dec. 15, 2010
Infrastructure agreement: The MDC agreed with the city to provide $171,123 toward improvements on Airways Drive between Loop 40 and Windecker Drive. The changes are expected to facilitate commercial and industrial development in the area.
State Highway 191
Contract signed: March 25, 2011
Infrastructure investment: The MDC agreed to provide the city up to $6 million for the addition of water lines along State Highway 191 between Loop 250 and Farm-to-Market Road 1788.
Contract signed: Sept. 26, 2011
Jobs: Baker Hughes anticipates creating 64 new jobs by Dec. 31, 2014 with total salaries and wages of at least $3 million.
Investment: The company agrees to spend at least $16 million in capital investments by December 2012.
Incentive: The MDC agreed to provide a $250,000 forgivable loan within 30 days of Baker Hughes' certifying it had made $16 million in improvements. Another $200,000 will be provided once the company has certified it created at least $2 million in payroll additions. A final payment of $50,000 will be made if the last $1 million in payroll additions is completed.
Today: No reports since signed in recent weeks.
Source: MDC contracts provided by the City Attorney's Office through a Texas Public Information Act Request and Reporter-Telegram archives.
*Not all categories listed for each agreement were applicable to every contract.
4A Sales tax generated:
FY 11: 6,866,610*
FY 10: 5,678,244
FY 09: 6,271,271
FY 08: 6,235,115
FY 07: 5,502,779
FY 06: 4,748,034
FY 05: 3,951,478
FY 04: 3,537,492
FY 03: 3,304,195
FY 02: 1,056,452
FY 11: $596,941*
FY 10: $700,721
FY 09: $680,385
FY 08: $782,075
FY 07: $646,682
FY 06: $563,515
FY 05: $459,074
FY 04: $468,437
FY 03: $341,276
FY 02: $1,166 for professional services, $40,000 to Chamber
FY11: $234,587.05 on advertising
FY 10: $499,816
FY 09: $385,365
FY 08: $894,064
FY 07: $362,154
FY 06: $385,355
FY 05: $402,207
FY 04: $332,517
FY 03: $289,029
FY 02: Nothing specifically budgeted
Direct business incentives:
FY 11: $125,000 through August/$2.05 million budgeted for
FY 10: $1,723,485
FY 09: $1,985,300
FY 08: $849,662
FY 07: $580,000
FY 06: $505,000
FY 05: $253,875
FY 04: $237,750
FY 03: $244,750
FY 10: $3,146,830
FY 09: $3,228,196
FY 08: $2,665,888
FY 07: $1,739,201
FY 06: $2,414,381
FY 05: $2,944,958
FY 04: $1,754,560
FY 03: $925,055
FY 02: $111,166
FY 10: $27.13 million
FY 09: $24.49 million
FY 08: $21.65 million
FY 07: $17.48 million
FY 06: $13.05 million
FY 05: $9.37 million
FY 04: $6.43 million
FY 03: $3.95 million
FY 02: $1.5 million
*An audit and final numbers for fiscal year 2011 have not been completed. Sales tax collections for September also have not been provided and a final sales tax number will not be available until mid-December.
Source: Midland Development Corp. audits and financial statements provided through a Texas Public Records Request.
Most Popular Stories
- Fed Committee Optimistic About Growth Prospects
- Pot's Legal in WA -- But You Should Probably Ask Your Boss
- How ESPN Became a $50B Sports Empire
- Drive-In Movie Theaters Use Creativity to Afford Digital Switch
- Obama Cites Letter Writers in Pitching Economy
- Pau Gasol Turns Down Lakers' Offer
- U.S. Immigration Courts Facing Record Backlog
- President Obama Relishes Roadshow, but Agenda Still Stuck
- Stevie Fielder Changes Tune on Thad Cochran Vote-buying Story
- Farrell, Kitsch Rumored for Season 2 of 'True Detective'