Economic development efforts paying off
Local organization devotes energy to growing economy, bringing in new jobs
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VEDC PROJECTS
Projects completed by the Victoria Economic Development Corp. since 2003 include:
Berry Plastics: expansion.
Elder Distributing: new warehouse and distributing facility.
Exterran: expansion.
Federal Express: distribution facility.
Flatrock Compression: new manufacturing plant.
GEMCO: new plant.
KDT Partnership/Frost Insurance: ...
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VEDC PROJECTS
Projects completed by the Victoria Economic Development Corp. since 2003 include:
Berry Plastics: expansion.
Elder Distributing: new warehouse and distributing facility.
Exterran: expansion.
Federal Express: distribution facility.
Flatrock Compression: new manufacturing plant.
GEMCO: new plant.
KDT Partnership/Frost Insurance: new regional service facility.
Renu (Victoria Power Plant): refurbish and update plant.
South Texas Electric Cooperative: expansion.
Sparkman Industries: expansion.
StarTek: new facility.
When a Port Lavaca company realized there was no longer room to expand after 50 years of operation, it became clear something needed to be done.
So Donna Pridgen, with GEMCO Pelletizing Dies and Machining, began research she hoped would lead to a new home for the company.
Other areas offered compelling financial incentives that caught her attention. But she also made an anonymous inquiry to the Victoria Economic Development Corp., and the rest is history.
"Their professionalism had exceeded anything I had heard," said Pridgen, vice president and general manager of the company. "They were well informed and truthful and honest."
The company ended up building a $2.5 million plant in Victoria and moved 18 jobs from Port Lavaca. The payroll today is about $800,000 a year.
Dale Fowler, with the Victoria Economic Development Corp., said that's one example of the successes the agency has had since 2003, bringing 11 companies to the county.
"Either we've had some significant role in helping them locate property, or we've initiated some incentives with them and they've ultimately located here and created tax base and jobs," he said.
Most of the companies are receiving some level of property tax abatement. But they are still paying taxes and the amount increases as the abatements phase out.
A report prepared by Fowler for the city and county states the corporation has created 613 jobs for Victoria and estimates it has created an additional 920 indirect jobs.
The assumed average salary for those jobs is $32,000 a year.
The cumulative new property tax for all of the county's taxing agencies amounts to $4.96 million.
Fowler said he used 2003 as the starting point for the report because that is when renewed economic development efforts started making progress.
Mayor Will Armstrong said it's his understanding there are about 300 economic development type agencies statewide competing with the Victoria Economic Development Corp. The $285,000 the Victoria Sales Tax Development Corp. gives each year to help fund the corporation is a good investment, he said.
"The competition is fierce," Armstrong said. "The companies right now are in a wait-and-see mode as to when the economy will pick up."
But the economic development has a strong track record that will likely continue to bring business to Victoria, he said. One example of that is the project to refurbish and update the power plant near downtown Victoria.
"They own four different power plants and they could have invested in any of those power plants," Armstrong said. "Now there's a $75 million project at end of Main Street."
And Pridgen said she believes the economical development corporation has a vision for Victoria that will continue to lead to growth.
"I was so impressed with their dedication and open-mindedness to the potential of what Victoria could be without it becoming another Houston or Dallas."
Comments
Holy smokestack, batman!
October 8, 2009 at 4:49 p.m.I agree BSspotter, but nothing is going to change, yet.
The "very old man mentality"; is nothing but tricks and back door deals proping up misleading statements, while oppressing good ideas.
One way or another, the old out dated mentality will be put to "sleep". We just have to be patient, It's a waiting game now. The "silent majority", will make it self known soon enough; but on it's time table not theirs.
These guys have no clue and that is how it should be.
October 8, 2009 at 4:22 p.m."Good story" ... and they're sticking to it.
October 8, 2009 at 3:56 p.m.Good story.
October 8, 2009 at 3:37 p.m.There's that figure again: $32,000 assumed income. That's the same income they claimed for the water park jobs. Is it just as bloated?
I have a fundamental philosophical issue with the VEDC concept. A lower overall tax burden would certainly attract long-term business growth, which would increase the tax base and make up for the lower tax rate. By having a higher tax rate and enticing business with temporary tax breaks, the process becomes completely arbitrary and controlled by those in the right positions of power/influence.
We should get out of the way of the economy and let it grow instead of bribing companies with tax abatements, which gives them an unfair advantage over existing companies bearing the full tax burden.
I desperately want growth, but I am against local government thinking it has the same imaginary power over economic forces as the Federal govt economy fairies. I want a sustainable economy for my children, not one artificially propped up by temporary tax abatements that make a company's existence tentative once the abatement expires.
October 8, 2009 at 3:32 p.m.I am not surprised that Port Lavaca lost jobs and revenue due to a company not having more room to expand. Large property holders in Port Lavaca and Calhoun county are against change, especially if it affects their property. I hope this does not sound like I am being over critical of the property owners, because the property represents their lively hood, identity, and tradition that goes back for over a hundred years in many cases.
October 8, 2009 at 2:08 p.m.Inflated numbers, and skewed statistics. Reminds me of a 1940's propaganda film.
Great Job Vicad.
October 8, 2009 at 9:56 a.m.