2015 Annual Report Harlingen Hedc Annual Report 2015 1 Table of from the 2 07 Board of Contents Directors Chairman

Come Home To Harlingen Economic Development Corporation 2015 ANNUAL REPORT HARLINGEN HEDC ANNUAL REPORT 2015 1 TABLE OF FROM THE 2 07 BOARD OF CONTENTS DIRECTORS CHAIRMAN

2015 was a year that saw us complete some economic development FROM THE CHAIRMAN MICHAEL projects from the previous year and initiate some new ones. 02 LAMON You may recall reading about Qualfon in our 2014 Annual Report. CHAIRMAN/PRESIDENT The back office customer contact center opened in Harlingen in 2015 FROM THE DESK OF THE CEO Texas Regional Bank with 170 employees and quickly increased their numbers before the 03 Market President 09 end of year to nearly 400. The global company’s plan is to be at 1,200 new jobs for our community before the middle of 2017. A recent 04 HEDC STAFF renovation to their existing business added another 350 work stations to their building. We’re extremely pleased with Qualfon’s growth and TOP STORIES | UNITED LAUNCH ALLIANCE positive stature within Harlingen’s business community. 05 Palms Behavioral Health (PBH) was also featured in last year’s Annual Report. Much like Qualfon, they are also on track to increase TOP STORIES | HEDC TARGETS AEROSPACE INDUSTRY the number of staff beyond initial projections. Very shortly after 06 unveiling plans for a 72-bed, 200 employee hospital, PBH re-drew their construction plans and added an additional 10,000 square feet to SMALL BIZ NEWS. BIG OPPORTUNITIES. 07 10 LUPITA GUTIERREZ RICK their new facility. Additional demand in health care needs raised the GARZA LEDESMA number of beds to 94 and increased their projected total of health care NEW BUSINESSES VICE PRESIDENT TREASURER professionals to over 225. 10 Southern Commercial Real Data Logic Our 2015 Annual Report will highlight United Launch Alliance Estate Group- Broker/Owner Software - CEO and their decision to remain here for another five years. I’m sure that HARLINGEN RANKINGS many of the current 150 highly-skilled professionals working at the 11 300,000 square foot facility will agree that this announcement is just as important as any one of the many economic development projects in 12 QUALITY OF LIFE Harlingen over the last ten years. This has been an exciting year to be a part of the HEDC Board of Directors. Take a look at our report, read the stories see what’s hap- MARKETING ACTIVITIES 12 13 pening in our community. I think you’ll see why so many companies choose to “Come Home…To Harlingen.” 14 BALANCE SHEET Michael Lamon Dr. J. GILBERT ROBERT B. CHAIRMAN AND PRESIDENT OF THE BOARD LEAL DUNKIN SECRETARY BOARD MEMBER TSTC Texas Community Bank President Emeritus Senior Vice Presdient

HEDC ANNUAL REPORT 2015 HEDC ANNUAL REPORT 2015 13 3 FROM THE DESK OF THE 4 CEO

One of the things I’ve learned over the In addition, HEDC has continued its past two decades working in economic two-pronged approach to marketing: development and real estate development is business retention and business attraction. PATIENCE. Good deals take time. Good The programs we use to attract companies, negotiations take time. Good projects take such as job creation grants or infrastructure time. But I’ve also heard that time kills grants, are the same programs that we use deals. Don’t hesitate or you’ll lose, they say. to help existing companies grow within It could be confusing to us, but it really is Harlingen. We attended trade shows and about TIMING. Sometimes, one must act conferences dealing with aerospace. We quickly to take advantage of an opportunity, met with site selectors who specialize in the but one must be fully-aware of the market aerospace industry. We created marketing HEDC to act prudently. Other times, patience materials specifically for the aerospace really does pay off. It provides for some op- industry and to promote the Harlingen STAFF portunity to evaluate options and generate Aerotropolis, an idea which began several the best deal for mutual benefit. years ago, but has gained more attention due In 2015, HEDC along with the City of to our marketing efforts. Harlingen, Valley International Airport 2015 is also a year where we continued to worked with United Launch Alliance to experience a declining unemployment rate; reach one of those mutually-beneficial increasing retail sales; steady construction; agreements. It was a business retention continued investment in infrastructure; and project primarily, but with patience and continued ranking as one of the two lowest some additional work, Harlingen has set cost of living areas in the United States. the stage for ULA to continue to grow here Overall, the year will be remembered as RAMIRO MARYANN RAUDEL TANIA LYLE for a very long time. Project Mountain, one where Harlingen kept a burgeoning ALEMAN VILLARREAL GARZA DURON GARZA as it was initially called, began in 2013. It industry cluster here, and where Harlingen INDUSTRIAL OFFICE MANAGER CHIEF EXECUTIVE EXECUTIVE ASSISTANT COMMERCIAL DEVELOPMENT DEVELOPMENT DIRECTOR OFFICER DIRECTOR / MARKETING took time for everyone to understand what saw positive overall economic growth, and O: 956.216.5081 O: 956.216.5082 O:956.216.5084 O: 956.216.5081 DIRECTOR really mattered to each of the entities, and one that set the stage for another great year C:956.367.5275 C: 956.245.1303 O: 956.216.5086 to understand what roles each of the entities in 2016. [email protected] [email protected] C: 956.245.0951 played. Once that was established, the [email protected] project moved forward. Raudel Garza CHIEF EXECUTIVE OFFICER

HEDC ANNUAL REPORT 2015 HEDC ANNUAL REPORT 2015 TOP TOP STORY STORY 5 6

REACHING NEW HEIGHTS WITH UNITED LAUNCH ALLIANCE HARLINGEN EDC TARGETS AEROSPACE INDUSTRY IN 2015 With the recent announcements of United allowed HEDC the opportunity to talk to Industrial Development, along with repre- 2015 was another great year for new weather, enable personal device-based GPS even through educational programs that are Launch Alliance extending their lease for a manufacturers about Harlingen. sentatives from Valley International Airport businesses choosing to Come Home to navigation and unlock the mysteries of our now being offered at Texas State Technical 300,000 square foot manufacturing facility HEDC officials also seized this opportunity and Western, LLC, were on hand to meet Harlingen. Texas State Rentals, Mountain solar system. College in Harlingen, specifically because of at the Harlingen Aerotropolis and SpaceX to discuss the new Harlingen Aerotropolis with executives from the aerospace industry Glacier Bottling Company, and Stefa- In 2015, United Launch Alliance ULA.” building a launch pad only 30 miles away in at Valley International Airport. Earlier in at a global level. The event allowed them to no’s Italian Restaurant are just three of announced plans to renew their lease in Over the last twenty-seven years, ULA has Cameron County, the Harlingen Economic 2015, the 480-acre air park was recognized as gain insight into the industry and strength- many new success stories that merit their Harlingen, and as such, continue manufac- played an important role in the US’s presence Development Corporation believes that tim- a Certified Site and ready to be developed by en the collective efforts concerning the own featured article in this year’s Annual turing rocket components at their 350,000 in the aerospace industry. Whether it’s been ing couldn’t be better to target the aerospace McCallum Sweeney Consultants, one of the recruitment of new business to South Texas. Report. All invested abundantly in the square foot plant within Valley International to aid our military in reconnaissance or by industry. In fact, if you ask industry experts, world’s leading site selection and economic Cindy Gettig, Marketing and Develop- community and hired staff and created Airport. The announcement also meant that helping guide travelers on out of state trips they’ll say that the aerospace industry will development consulting firms. ment Coordinator for Western, LLC stated, opportunities that serve at the root of our 150 highly skilled and well trained aero- with GPS technology, ULA’s rockets are define the future of the South Texas region Space Symposium “Overall the experience was very educational mission here at the Harlingen Economic space professionals will continue to live and somehow intertwined in our daily lives. Not for generations to come. The Harlingen EDC In the spring of 2015, HEDC Chief Exec- and encouraged new strategies and avenues to Development Corporation. To make a work in an area that has quickly become the too many people know that many of those agrees that aerospace will be more important utive Officer Raudel Garza attended the 31st take in order to reach the right industries that difference in the day to day lives of our aerospace cluster of South Texas. vital components on every rocket have been to the region in the future, and thus has initi- Space Symposium held in Colorado Springs, can benefit from expanding or relocating into community. A development agreement between ULA, manufactured here in Harlingen for more ated steps to attract companies in this sector. CO. The event attracted space leaders from the Harlingen area.” This year’s top story, however, is the City of Harlingen, and the Harlingen than two decades now. We’re delighted that Houstex Expo Conference around the world to discuss, address, and plan HEDC will market Harlingen this not about a new business coming Economic Development Corporation was ULA will be staying and truly making our The Harlingen EDC joined United Launch for the future of the space industry. The space upcoming year by attending new trade to Harlingen. It’s a success at the root of helping seal the deal to keep community South Texas’ aerospace cluster for Alliance at the Houstex Expo in 2015. The symposium, widely known as the premier U.S. shows and conferences and meeting with site story that began over twen- ULA in Harlingen. so many highly trained professionals. manufacturing trade show and conference, space policy and program forum, was attend- selectors and real estate executives to promote ty-seven years ago. “ULA is the foundation of the aerospace held in Houston, Texas featured hundreds ed by many and included representatives from Harlingen and grow the already burgeoning United Launch Alliance industry in the Rio Grande Valley”, said of exhibitors focusing on the latest aero- NASA, NOAA, FAA and Boeing. Garza aerospace industry in South Texas. Harlingen Mayor Chris Boswell. “We felt began as a joint venture be- ULA is the foundation of the space manufacturing technologies and new was joined by Marv Esterly, Aviation Director tween aerospace giants Boe- we needed to assure its employees and future aerospace industry in the Rio interactive opportunities. Highlights from for Valley International Airport. Garza was workforce that we would do whatever we ing and Lockheed Martin the trade show included witnessing additive able to meet with various executives from could to help them grow. We are excited Grande Valley. As such, Harlin- in 1989 here in Harlingen, manufacturing/3-D printers and Computer- aerospace companies such as ULA, SpaceX, at the possibilities that this growth will gen felt we needed to assure its Texas. Today ULA serves ized Numerical Control (CNC) instruments. and others. The conference provided a unique produce.” as the nation’s launch employees and future workforce ULA officials indicated at the trade show opportunity to discuss Harlingen’s new Michael Lamon, Chairman of the HEDC service provider, having that we would do whatever we their plans to move more of their produc- developments in the aerospace industry with successfully delivered board, was equally pleased with ULA’s could to help them grow. We are tion in house. They also believed that it was key decision makers and site selectors from agreement to remain in Harlingen. He more than 90 satellites to essential that the HEDC understand their throughout the world. recognized ULA’s enormous impact to excited at the possibilities that orbit that provide critical priorities. By partnering with ULA, HEDC Aerospace Summit in Mexico the Harlingen economy. “They are one this growth will produce. capabilities for troops in was able to understand what new lines were In September, HEDC staff traveled abroad of the largest taxpayers in Harlingen in the field, aid meteorol- being considered and what new equipment to attend the Aerospace Summit in Quere- a high skilled, high wage industry. Their ogists in tracking severe would be needed locally. The trade show taro, Mexico. Ramiro Aleman, Director of impact is not only seen economically, but

HEDC ANNUAL REPORT 2015 HEDC ANNUAL REPORT 2015 SMALL BIZ NEWS. SMALL BIZ NEWS. BIG OPPORTUNITIES BIG OPPORTUNITIES 7 9 ROOSEVELT BUSINESS PARK BINED

So, we understand you may be thinking about building a new industrial facility in the near future? Well, Economic development, in its current state, is very competitive. Communities throughout the world before last year, there were only a few choices in Harlingen. You could build a new logistics warehouse, are fighting to attract the same investors and companies into their own different areas. At the local level, or medical device manufacturing facility at the Harlingen Industrial Park with 80 acres available. Or you economic development remains very much a locally-driven issue, not one pushed by the state. Thus, could build in the 480 acre Harlingen Aerotropolis? But if you need really quick and easy access to the when people talk about communities working together in a regional approach, many people often doubt interstate system and the ability to reach as many customers as possible in the shortest time, then you may that efforts undertaken by various communities can work in a fair manner. want to think about building inside of The Business Park at Roosevelt. In March 2014, the cities of Economic Development (BiNED) event in August 2015, Recognizing a need for developed industrial land a regional detention pond. The regional detention Matamoros, Tamaulipas, Mexico Zone and signed a historic agree- the cities of Reynosa, in north Harlingen, the HEDC Board of Directors facility will also serve as a green space and buffer and Brownsville, Texas and Har- ment pledging to work together to Tamaulipas, Mexico, and authorized the purchase of approximately 50 acres between The Business Park at Roosevelt and a res- lingen, Texas came together in an achieve greater economic success for McAllen, Texas and off Interstate 69E and Roosevelt Road in 2015. idential subdivision nearby. We will also be adding unprecedented event and agreed to all three parties. Edinburg, Texas, along Now, EDC staff and our engineers are working a walking trail along that green space, and enough work together as a region to promote Shortly after the signing of a with the County of Hidalgo and the County of Cameron on a variety of options for the development of The land for a few practice soccer fields for the neigh- advanced manufacturing and related Memorandum of Understanding by joined the BiNED trio and the group began to grow. The Business Park at Roosevelt. bors to enjoy. Contact our office for more details on opportunities. The mayors of these the three mayors, other cities along main purpose of the group is to work regionally to attract The Business Park at Roosevelt will feature this new Class A project coming soon. three communities, along with the border in the region desired to world-class manufacturers to the region on both sides of the approximately 40 acres of shovel-ready land with US Congressman Filemon Vela, work on the same or similar issues, border. Much work needs to be done, but a good start presented the idea of a Bi-National and after another historic signing thus far…

GARZA NAMED TO I-69 HEAVY EQUIPMENT SALES & RENTAL ADVISORY COMMITTEE SHOP OPENS IN HARLINGEN

Raudel Garza, Chief Executive Officer of the notes they were selected because they will ensure The Harlingen Economic Development Corpo- Commission. Texas State Rentals also oper- Harlingen Economic Development Corpora- the committee represents a geographic distribution ration welcomed new business Texas State Rent- ates businesses in Houston, La Porte, Victoria, tion was recently appointed to the I-69 Corridor and reflects a diverse cross-section of the widely als to Harlingen in 2015. The heavy equipment College Station, and New Braunfels. The new Advisory Committee by the Texas Transportation varying stakeholder groups needed to help the de- sales and rental shop will hire up to twenty-five store and mechanic shop is located on the 2700 Committee. The Commission created the Advi- partment identify and reach consensus on corridor employees when they reach full capacity. In block of F Street along US 83/77 and is already sory Committee to assist the department in the needs and potential transportation solutions. addition to sales and office personnel, Texas State in operation. They rent and sell equipment by transportation planning process for the I-69 System Rentals also employs highly skilled mechanics JLG, Skyjack, Yanmar, Sany, Liugong, Hyundai, in Texas. Committee members along with staff will that work on bull dozers, fork lifts, back hoes, Genie, and Caterpillar, John Deere, Skytrak, assist the Alliance for I-69 coalition by being an excavators, man lifts and other heavy equipment. Gradall, Snorkel and Haulotte. active and consistent advocate for the upgrade and The EDC negotiated a development agree- completion of I-69 through East Texas, the Hous- ment with Texas State Rentals president Angus ton region and South Texas. Davis months before opening that was approved The staff recommendation of the new members by both the EDC board and Harlingen City

HEDC ANNUAL REPORT 2015 HEDC ANNUAL REPORT 2015 SMALL BIZ NEWS. NEW BIG OPPORTUNITIES BUSINESSES 9 10

Dixieland Plaza | Bass Pro Drive | Harlingen, Texas Cameron Crossing | Retail Building

What if that piece of dirt In a city generating over WHAT WOULD YOU DO was at the intersection of with an approximately $1 BILLION one-half acre tract of land 2 MAJOR INTERSTATE in annual taxable right next door to Bass Pro HIGHWAYS? retail sales? Shops Outdoor World? (Interstate 2 & Interstate 69E)

You could sell it, or you could even ground Longhorn Steakhouse, and at least two other lease it. But if you really wanted to maximize restaurant chains soon to be announced. It is Call us to be a the use of the property and the return, then also a short walk to a Sam’s Club, and a soon- part of this great build on it. At least that’s what the HEDC to-be constructed 43,000 square foot Confer- is considering doing with a small tract of land ence Center with an adjacent hotel. new location! in Cameron Crossing. Cameron Crossing is a A local architectural firm, Megamorphosis, is 956-216-5081 retail destination area featuring Bass Pro Shops, designing a retail and office spec building for the Residence Inn by Marriott, Cracker Barrel, HEDC on that site.

HEDC ANNUAL REPORT 2015 HEDC ANNUAL REPORT 2015 QUALITY OF HARLINGEN RANKINGS LIFE 11 12

HARLINGEN

HARLINGEN BLUES ON THE HILL

MEET TWIN SISTERS JANE AND JILL. Both recently graduated medical school. Jane went to school in New York. Jill went to school at UT-RGV School of Medicine in Harlingen. Now that they’re ready to begin their careers, they are trying to decide where they’re going to live, raise a family and practice their medical profession. They’ve narrowed their choices to Orange County, CA, Brooklyn, NY or Harlingen, TX. This is what they found:

2015 COST OF LIVING INDEX BY THE COUNCIL FOR SO WHAT’S THE BOTTOM LINE? COMMUNITY & ECONOMIC RESEARCH (C2ER) It’s not even close! By moving to Harlingen, Jane and Jill will have a savings of 20% below the National Average cost of basic necessities. But don’t take their word for it. The Council for Community and Economic Beauty Salon $64.44 $59.39 $31.10 Research (C2ER) has named Harlingen the Least Expensive Urban Area Dozen eggs $2.47 $3.59 $1.81 among participating communities Five out of the last Six Years! T-Bone steak $12.62 $11.16 $8.56 Gallon Milk $2.45 $2.43 $2.37 BIRDING FESTIVAL FREEDOM FEST Apartment Rent $2,337 $1,998 $643 Home Price $963,047 $809,108 $214,860 Gasoline $2.75 $3.38 $2.11 2010-2014 2015 Doctor visit $114.33 $96.52 $95.17 #1 LEAST EXPENSIVE #2 LEAST EXPENSIVE Pizza $11.50 $9.67 $8.00 URBAN AREA IN THE US URBAN AREA IN THE US Movie $13.46 $12.64 $10.10 HARLINGEN, TX HARLINGEN, TX ORANGE NEW YORK HARLINGEN COUNTY

HEDC ANNUAL REPORT 2015 HEDC ANNUAL REPORT 2015 MARKETING ACTIVITIES 13 1415

GREAT AMERICAN TRUCKING SHOW CONFERENCE DALLAS, AUGUST 2015

VIVA FRESH PRODUCE EXPO AUSTIN, TX MARCH 2015 SHEET BALANCE

MOUNTAIN GLACIER HEDC ANNUAL REPORT 2015 WATER 16

APPROX. TRAVEL TIME FROM HARLINGEN.

LOS ANGELES 4h 23h SEATTLE 5h 36h MAZATLAN 4h 10h MEXICO CITY 3h 11h CANCUN 5h 32h MONTERREY 1h 3h AUSTIN 1hr 5h HOUSTON 1hr 5h MIAMI 4h 21h NEW YORK 5h 28h DENVER 4h 19h

2424 Boxwood Street, Suite 125 | Harlingen, Texas 78550 p: 956-216-5081 | f: 956-216-2580 www.harlingenedc.com