[00:00:01]
O'CLOCK.I AM COUNCIL MEMBER ROBERT GALLEGOS,
[Economic Development Committee]
VICE CHAIR OF THE ECONOMIC DEVELOPMENT COMMITTEE AND HIS PRESIDING CHAIR.WELCOME TO ALL COMMITTEE AND COUNCIL MEMBERS, STAFF AND GUESTS.
IN ATTENDANCE, WE HAVE COUNCIL MEMBER ALCORN.
IN THE CHAMBER WE HAVE CHAIR AND VICE MAYOR PRO TEM TATUM JOINING US VIRTUALLY WE HAVE COUNCIL MEMBER THOMAS JOINING US.
WE HAVE STAFF FROM COUNCIL MEMBER PLUMMER IN THE CHAMBER, WE HAVE STAFF, UH, FROM COUNCIL MEMBER JACKSON, UH, MAYOR PRO, TIM MARTIN, COUNCIL MEMBER CISNEROS, COUNCIL MEMBER ROBINSON AND COUNCIL MEMBER PECK JOINING US VIRTUALLY, COUNCIL MEMBER AND STAFF, PLEASE HOLD YOUR QUESTIONS UNTIL THE END OF THE PRESENTATION.
IF YOU WOULD LIKE TO ASK A QUESTION AND OUR PRESIDENT IN THE CHAMBER REQUEST TO SPEAK, OR, OR IF YOU ARE JOINING US VIRTUALLY TYPE REQUEST TO SPEAK IN THE CHAT BO UH, POD AND YOU WILL BE RECOGNIZED IN ORDER WHEN YOU ARE RECOGNIZED.
PLEASE REMEMBER BEFORE YOU BEGIN SPEAKING TO UNMUTE YOUR MICROPHONE.
YOU'LL BE ADVISED WHEN THE TWO MINUTES HAVE EXPIRED, PLEASE USE THE CHAT, CHAT BOT IF YOU EXPERIENCE ANY PROBLEMS. THERE ARE THREE PUBLIC SPEAKERS WHO HAVE SIGNED UP TO SPEAK TODAY.
IF THERE ARE ANY PUBLIC SPEAKERS IN THE CHAMBER OR HAVE JOINED US VIRTUALLY WHO WISH TO SPEAK, PLEASE SIGN IN OR INDICATE YOU WISH TO SPEAK IN THE CHAT POD AND THE CHAIR WILL RECOGNIZE YOU.
PUBLIC SPEAKERS WILL HAVE A CHANCE TO SPEAK AFTER THE CONCLUSION OF THE PRESENTATION, OTHER MEMBERS OF THE PUBLIC.
PLEASE USE THE CHAT POD TO POST YOUR QUESTIONS AND OR COMMENTS ON THE AGENDA.
TODAY WE HAVE THE OFFICE OF ECONOMIC DEVELOPMENT EXECUTIVE STAFF ANALYST, JENNIFER, UH, CURLEY AND STAFF ANALYST ANDREW BUSKER WILL BE PRESENTING ON TEXAS ENTERPRISE ZONE PROGRAM PROPOSALS.
MS. CURLEY AND MR. BUSKER, IF YOU WILL PROCEED WITH THE PRESENTATION.
GOOD AFTERNOON COUNCIL MEMBER GALLEGOS, WE CAN'T HEAR YOU.
IT LOOKS LIKE THE TEAMS NEEDS TO BE UNMUTED.
YEAH, THEY, THEY'RE CHECKING ON THAT.
CAN YOU HEAR ME NOW? YES, SIR.
SO, AGAIN, ON, ON THE AGENDA TODAY, WE HAVE OFF THE OFFICE OF ECONOMIC DEVELOPMENT EXECUTIVE STAFF ANALYST, JENNIFER CURLEY AND STAFF ANALYST ANDREW BUSKER WILL BE PRESENTING ON THE TEXAS ENTERPRISE ZONE PROGRAM PROPOSALS.
MS. CURLEY AND MR. BUSKER, IF YOU WILL PROCEED WITH THE PRESENTATION.
MY NAME IS JENNIFER CURLEY AND I'M WITH THE OFFICE OF ECONOMIC DEVELOPMENT.
TODAY I'M GOING TO PROVIDE AN OVERVIEW OF THE TEXAS ENTERPRISE ZONE PROGRAM AND MY COLLEAGUE ANDREW BUSKER.
WE'LL PRESENT TWO PROPOSED NOMINATIONS TO THE PROGRAM.
THE TEXAS ENTERPRISE ZONE PROGRAM IS ADMINISTERED BY THE STATE OF TEXAS.
COMPANIES RECEIVE STATE SALES AND USE TAX REFUNDS FOR QUALIFIED PROJECTS.
COUNTIES AND MUNICIPALITIES ARE ALLOTTED ALLOTTED NINE NOMINATIONS PER BIENNIUM.
UNUSED NOMINATIONS ARE FORFEITED.
THE CITY OF HOUSTON HAS NINE UNUSED NOMINATIONS FOR THIS BIENNIUM.
THE REMAINING CYCLES FOR THE CURRENT BIENNIUM ARE DECEMBER 1ST, 2022, MARCH 1ST, 2023, AND JUNE 1ST, 2023.
NOMINATIONS DO NOT REQUIRE ANY FUNDING FROM THE MUNICIPALITY.
FACTORS THAT THE OFFICE OF ECONOMIC DEVELOPMENT CONSIDER WHEN EVALUATING AN APPLICATION INCLUDE.
FIRST AND FOREMOST, THE AMOUNT OF PROJECT INVESTMENT AND THE NUMBER OF JOBS EITHER CREATED OR RETAINED TO MEET THE STATE'S ELIGIBILITY REQUIREMENTS.
PRESENCE WITHIN OUR PROXIMITY TO ENTERPRISE ZONES AS DEFINED BY THE STATE OF TEXAS.
THE PROJECTS AVERAGE, AVERAGE SALARY MEETS OR EXCEEDS THE COUNTY'S AVERAGE INCOME.
WHETHER THE COMPANY IS IN ONE OF HOUSTON'S PRIORITY INDUSTRIES AND PROJECTS ALIGNMENT WITH THE CITY'S DEVELOPMENT AND COMMUNITY BENEFITS PRIORITIES.
THE OFFICE OF ECONOMIC DEVELOPMENT IS RECOMMENDING TWO PROJECTS TO THE COMMITTEE.
MACQUARIE HOLDINGS INCORPORATED AND TAILOR BRANDS INCORPORATED.
MR. BUSKER WILL PROVIDE AN OVERVIEW OF BOTH PROJECTS.
OKAY, SO WE'LL BEGIN WITH, UH, MACQUARIE HOLDINGS.
[00:05:02]
SO, MACQUARIE GROUP IS A GLOBAL FINANCIAL SERVICES COMPANY AND THE WORLD'S LARGEST INFRASTRUCTURE INVESTMENT MANAGER, AS YOU CAN SEE ON THE MAP ON THE SLIDE, UM, THEY'RE LOCATED IN THE DOWNTOWN AREA WITH SEVERAL, UH, ENTERPRISE ZONES SURROUNDING IT.AND THESE ENTERPRISE ZONES ARE CREATED, UM, THROUGH THE CENSUS BLOCK GROUPS.
THEY HAVE, UM, A POPULATION WITH GREATER THAN 20%, UH, IN LIVING IN POVERTY.
SO FOR MACQUARIE, UM, THEY'RE LOCATED AT 500 DALLAS STREET AND THAT IS A ONE ALLEN CENTER.
AND THEY HAVE, UH, TWO AND A HALF FLOORS CURRENTLY, AND THEY EMPLOY ABOUT 430 PEOPLE.
UH, WITH THIS INVESTMENT, THEY'RE LOOKING AT A $29 MILLION INVESTMENT TO EXPAND OUT TO THEN COVER THREE FULL FLOORS IN THIS BUILDING, AND THAT WILL ADD ON A HUNDRED NEW, UH, FULL-TIME EMPLOYEES.
SO, UH, WITH THIS BUILD OUT INCLUDES REMODELING FOR, UM, THEIR OFFICE SPACE AND EXPANSION.
UM, BY, BY DOING THIS, THEY'LL UH, INCREASE THEIR CORPORATE PRESENCE IN HOUSTON AND SUPPORT, UM, HOUSTON'S ENERGY INDUSTRY THROUGH THEIR, UM, SUPPORTING AND TRADING AND NATURAL GAS OIL AND ELECTRICITY MARKETS.
UM, AS YOU CAN SEE ON THE SLIDE, THEIR UM, AVERAGE ANNUAL SALARIES ARE HIGHER THAN THE, UM, THE COUNTY MEDIAN INCOME.
SO IN THAT REQUIREMENT, THEY, THEY MEET SO WE CAN MOVE TO THE NEXT GROUP.
UM, SO THIS APPLICATION IS, UH, TAILORED BRANDS AND THEY ARE A CLOTHING RETAILER THAT OWNS MEN'S WAREHOUSE, JOSEPH A BANK, MOORES, AND KG FASHION SUPERSTORE.
UM, THEY HAVE A HOUSTON CORPORATE OFFICE AND A DISTRIBUTION CENTER THAT ARE BOTH A PART OF THIS PROPOSAL.
UH, SO YOU SEE ON THE MAPS ON THE SLIDE, THE DISTRIBUTION CENTER IS LOCATED IN DISTRICT K AND THE HEAD CORPORATE HEADQUARTERS FOR THIS REGION ANYWAY IS LOCATED IN DISTRICT F.
UM, THE DISTRIBUTION CENTER IS WITHIN, UH, ENTERPRISE ZONE, WHILE THE HEADQUARTERS ARE, UM, NEAR SEVERAL.
SO THIS INVESTMENT, THEY'RE LOOKING AT, UH, TOTAL OF $15 MILLION, UM, SPLIT BETWEEN 13 AND A HALF MILLION DOLLARS AT THE DISTRIBUTION CENTER, WHICH WILL GO TOWARDS MACHINERY AND EQUIPMENT UPGRADES THAT WILL SUPPORT, UM, GREATER E-COMMERCE, UM, FUNCTIONS.
AND THEN $1.25 MILLION, UM, MY APOLOGIES, $1.5 MILLION FOR, UM, THE CORPORATE HEADQUARTERS, WHICH WILL BE UPDATING THEIR HVAC SYSTEM AS WELL AS OTHER FIXTURES THAT THEY NEED TO SUPPORT THE EXPANSION IN E-COMMERCE.
UM, SO FOR THIS, UH, ROLE, THEY'RE ADDING ON ABOUT 75 NEW JOBS AT THE DISTRIBUTION CENTER WITH THE, UH, SALARIES AT $55,000, WHICH IS BELOW THE MEDIAN, UH, INCOME FOR THE COUNTY.
HOWEVER, WITH THE NUMBER OF JOBS THEY'RE RETAINING THROUGH THIS PROPOSAL, UM, THEY EXCEED THE MEDIAN INCOME FOR THE COUNTY.
SO FOR THE NEXT SLIDE, WE'LL GO THROUGH THE TIMELINE.
WE EXPECT THESE PROPOSALS TO BE ON THE NOVEMBER 2ND COUNCIL AGENDA, AND THEN IF APPROVED, THAT WILL GIVE OUR OFFICE, UH, PLENTY OF TIME TO SUBMIT THE MATERIALS THAT ARE NEEDED FOR THESE COMPANIES TO THEN SUBMIT TO THE STATE FOR THE DECEMBER 1ST DEADLINE.
SO AT THIS TIME, WE'LL, UM, HAPPILY TAKE ANY QUESTIONS.
THANK YOU FIR FIRST IN THE QUEUE.
WE HAVE A QUESTION FROM COUNCIL MEMBER ALCORN.
REMIND ME HOW BIG A CENSUS BLOCK IS.
HOW DO YOU GET TO THAT 20%? GREAT QUESTION.
UM, SO THE CENSUS TRACKS ARE COMPRISED OF SEVERAL CENSUS BLOCKS, BUT HOW THAT'S DETERMINED, I'LL HAVE TO, IT'S LIKE FOR THE DOWNTOWN AREA, I JUST WONDER LIKE HOW FAR YOU GO TO GET TO GET, HOW YOU DETERMINE THE, THE RATE OF POVERTY IN A, IN A REAL RIGHT HERE AT ALLEN CENTER.
I MEAN, HOW FAR DO YOU GO OUT? RIGHT.
AND UM, ANOTHER THING RE IF YOU CAN WALK ME THROUGH THE, THE RE I KNOW THIS ISN'T CITY MONEY, THIS IS A STATE SALES TAX REBATE.
HOW IS THAT CALCULATED AND, AND ON WHAT BASIS? I MEAN, HOW, WHAT, WHAT'S THE POTENTIAL FOR THEM TO BE REIMBURSED? GREAT QUESTION.
SO, UM, FOR THESE APPLICATIONS YOU CAN, UH, IT'S BASED ON A PER JOB NUMBER.
SO YOU CAN HAVE UP TO 500 JOBS IN THEIR PROPOSAL, AND THEN IT'S $2,500 PER JOB.
SO THEY'RE LOOKING AT, UM, A POTENTIALLY A MAXIMUM POTENTIAL REFUND OF $1.25 MILLION OVERALL.
UM, AND, BUT THAT REQUIRES THEM MEETING THOSE JOB TARGETS AND WHATNOT.
IF I MAY ADD TO THAT, THERE'S ALSO THE CAPITAL INVESTMENT PIECE OF THAT AS WELL.
SO IF THEY DON'T HIT THEIR FULL CAPITAL INVESTMENT, EITHER THAT DEDUCTION, UM, WOULD
[00:10:01]
GO DOWN.I ALSO LIKE TO ACKNOWLEDGE WE HAVE A STAFF OF COUNCIL MEMBER HUFFMAN'S OFFICE HERE IN THE CHAMBER.
WE ALSO HAVE STAFF FROM COUNCIL MEMBER EVANS SHABAZZ HERE IN THE CHAMBER.
AND, UH, WE ALSO HAVE A QUESTION FROM THE COUNCIL MEMBER SHABAZZ'S OFFICE.
GOOD EVENING, AND THANK YOU FOR BEING HERE.
I DO HAVE A COUPLE OF QUESTIONS ON PAGE FIVE, SLIDE PAGE FIVE, SPECIFICALLY LOOKING AT THE AVERAGE ANNUAL SALARIES AND I LOOK AT CREATE 100 NEW JOBS, THEN RETAIN 400 EXISTING JOBS AT 218,000.
UH, MY QUESTION IS, WHAT WILL BE THE QUALIFICATIONS FOR THOSE POSITIONS AND WHO ALL WOULD BE AVAILABLE TO APPLY? GOOD QUESTION.
SO THE QUALIFICATIONS, THEY VARY RANGE, THEY RANGE SIGNIFICANTLY FROM JUST A JOB TITLE OF FINANCIAL ANALYST OR A FINANCIAL ADVISOR.
UM, THERE'S ALSO SECRETARIES AND ADMIN ASSISTANTS, HUMAN RESOURCES WORKERS.
UM, THERE'S, UM, SOME MATHEMATICAL THINGS FOR MODELING.
AS FAR AS RETAINED, THERE'S THE MAJORITY OF THE JOBS BEING RETAINED ARE MANAGERS AND FINANCIAL ANALYSTS AND ADVISORS.
UM, WITH THIS PROGRAM, THEY ARE REQUIRED TO, UM, THEY HAVE TO COMMIT TO 35% OF THOSE NEW JOBS HAVE TO BE ECONOMICALLY DISADVANTAGED INDIVIDUALS.
SO WHETHER THEY LIVE IN A CENSUS TRACK THAT IS CONSIDERED AN OPPORTUNITY ZONE OR WHETHER THE INDIVIDUAL IS A VETERAN OR A PERSON WITH DISABILITIES, SOMETHING ALONG THOSE LINES.
BUT THAT IS A REQUIREMENT OF THIS PROGRAM.
MY OTHER QUESTION, SO THOSE PARTICULAR SALARIES ARE AT OR ABOVE THE, UH, THE MEDIAN INCOME FOR THE COUNTY? THAT'S CORRECT, YEAH.
HOWEVER, ON THE NEXT PAGE, PAGE SIX, YOU SAID THAT THE 75 NEW JOBS AT 55,000 IS BELOW.
HOW MUCH BELOW? SO THE, UM, COUNTY MEDIAN INCOME IS ABOUT 79,000, BETWEEN 78,000, 79,000.
AND THE COUNT, THE, THE, THE JUSTIFICATION FOR THAT WOULD BE FOR THE COUNTY IN THAT IS BASED ON CENSUS DATA.
SO THOSE POSITIONS, THE 75 OR THE 425, THOSE ARE BASED ON, AS YOU SAID EARLIER, THERE'S 35% OF OPPORTUNITY ZONES.
IS THERE A PARTICULAR PERCENTAGE BASED ON THIS ONE? SO THIS ONE, SINCE THE MAJORITY OF THE INVESTMENT IS LOCATING AT A SITE THAT IS WITHIN AN OPPORTUNITY ZONE ALREADY, THEY HAVE A 25% REQUIREMENT, AND THAT'S DETERMINED BY THE STATE.
YEAH, JUST TO ADD, UM, TO THAT, THOSE COMMENTS, THE JOBS THAT THEY ARE FILLING ARE WAREHOUSE ASSOCIATE TYPE POSITION.
SO THEY'RE NOT MANAGEMENT TYPE POSITIONS.
SO THAT'S WHAT, THAT'S WHY THE AVERAGE IS A LITTLE BIT LOWER.
WELL, I'M, WELL, I'M LOOKING AT WHERE YOU SAID YOU'RE TRYING TO RETAIN 425 JOBS.
ARE YOU SAYING THAT THE OTHER JOBS OR THE APPLICANTS RATHER ARE NOT ELIGIBLE FOR THOSE OTHER RETAINING JOBS? 425 RETAINING JOBS? THEY'RE, THEY'RE APPLICABLE.
THE ONES THAT ARE BEING RETAINED ARE MAJORITY OF OFFICE ADMINISTRATION AND SUPPORT, AND THEN THEIR MANAGEMENT POSITIONS AS WELL AS SOME, UM, INFORMATION TECHNOLOGY ROLES.
UM, SO WITH, SINCE THEY'RE TWO COMPLETELY SEPARATE COMPANIES, BOTH SUBMITTING FOR THE SAME PROGRAM, THEIR, THEIR JOBS DIFFER.
MY FINAL QUESTION, MR. CHAIR, UM, WOULD YOU BE ABLE TO MAKE THAT INFORMATION AVAILABLE TO OUR OFFICES? YEAH.
ONE OF THE PRIMARY REASON I ASK THESE QUESTIONS IS WE HAVE CONSTITUENTS WHO WE ARE TRYING TO FIND QUALITY EMPLOYMENT FOR AND TO HAVE POSITIONS THAT ARE BELOW THE MEDIAN INCOME.
SO IF YOU COULD PROVIDE THAT INFORMATION.
I WOULD BE HAPPY TO, MR. CHAIR.
AND I UNDERSTAND THAT COUNCIL MEMBER EVAN SHABAZZ HAS JOINED US VIRTUALLY.
UM, WE HAVE THREE PUBLIC SPEAKERS WHO HAVE SIGNED UP TODAY, PUBLIC SPEAKERS.
IF YOU ARE PRESENT HERE IN THE CHAMBER, WHEN RECOGNIZED, PLEASE APPROACH THE PODIUM.
IF YOU ARE TURN ATTENDING VIRTUALLY EITHER, UH, UNMUTE BY CLICKING ON THE MICROPHONE ICON OR, UH, UNMUTE BY HITTING STAR SIX ON YOUR TELEPHONE.
YOU WILL HAVE TWO MINUTES TO SPEAK.
ANY QUESTIONS WILL BE PROVIDED TO THE OFFICE OF ECONOMIC DEVELOPMENT AND RE THE RESPONSES WILL
[00:15:01]
BE SENT TO THE ATTENDEES AND COUNCIL MEMBERS.UH, THE VICE CHAIR RECOGNIZES OUR FIRST PUBLIC SPEAKER, MR. EM MOHAMMAD, PLEASE UNMUTE TO SPEAK.
UH, YOU WILL HAVE TWO MINUTES BY HITTING STAR SIX ON YOUR PHONE.
MR. MUHAMMAD, PLEASE UNMUTE BY HITTING STAR SIX ON YOUR PHONE.
MOHAMED, PLEASE UNMUTE BY HITTING STAR SIX ON YOUR PHONE.
OKAY, WE'LL GO ON TO THE NEXT SPEAKER.
UH, YOU HAVE TWO MINUTES, PLEASE.
HIT, UH, UH, STAR SIX ON YOUR PHONE.
TO UNMUTE MS. GLADYS HOUSE L YOU HAVE TWO MINUTES BY HITTING STAR SIX ON YOUR PHONE.
MS. GLADYS HOUSE, HEAD STAR SIX ON YOUR PHONE.
AND THE NEXT SPEAKER WE HAVE MS. DOHA.
BRYCE, YOU WILL HAVE TWO MINUTES, PLEASE.
HIT STAR SIX ON YOUR PHONE TO UNMUTE MS. DOHA.
BRYCE, PLEASE HIT STAR SIX ON YOUR PHONE.
BRYCE, PLEASE HIT STAR SIX ON YOUR PHONE TO UNMUTE.
ARE THERE ANY OTHER PUBLIC SPEAKERS IN THE CHAT POD? I UNDERSTAND DOUG SMITH IS HERE TO TALK ABOUT TURS, BUT UNFORTUNATELY THAT'S NOT ON THE AGENDA.
SO, BUT, BUT IF YOU SEE US AFTERWARDS, THEN WE CAN TRY TO RESPOND TO YOUR CONCERN OR QUESTION.
THERE, THERE SEEMS TO BE NO OTHER, UH, SPEAKERS.
IF THERE ARE NO OTHER COMMENTS OR QUESTIONS, I THANK EVERYONE FOR JOINING US TODAY.
BEFORE WE ADJOURN, I WOULD LIKE TO REMIND EVERYONE THE NEXT REGULAR RESCHEDULED ECONOMIC DEVELOPMENT COMMITTEE MEETING WILL BE WEDNESDAY, NOVEMBER 16TH AT 2:00 PM.
ALSO, IF YOU ARE INTERESTED IN RECEIVING INFORMATION ON THE ECONOMIC DEVELOPMENT COMMITTEE MEETINGS, PLEASE CONTACT THE DISTRICT K OFFICE AT DISTRICT K@HOUSTONTX.GOV.
THAT'S DISTRICT K AT HOUSTON TX DOT COV.
THIS MEETING IS NOW ADJOURNED.