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Sales Tax Revenue Better Than Last Year Southeast Sales tax revenue better than last year ings are increasing, we are trending towards another annual economic activity each year; support an addi- record-breaking year in Texas real estate.” tional 3,152 direct, indirect, induced and related user Texas Comptroller Glenn Hegar reported this jobs; and result in more than one million additional month that state sales tax revenue totaled $2.6 billion Unemployment rate falls to record low tons of cargo coming through port gates annually. In in October, 7.3 percent more than in October 2017. Texas’ seasonally adjusted unemployment rate fell to an area that is slowly rebuilding, job growth and op- “Growth in state sales tax revenue continues to be 3.8 percent, down from 3.9 percent in August 2018 portunity are essential to recovery. strong, while moderating from the double-digit pace and setting a new record for the lowest unemploy- New owners of McDonald's of recent months,” Hegar said. “The rate of growth in ment rate recorded in four decades. The Texas econ- sales tax collections continues to be highest from oil- omy added 15,600 seasonally adjusted non-farm jobs McDonald’s locations in Southeast Texas have and gas-related sectors.” in September. Annual employment growth for Texas Total sales tax revenue for the three months end- recently changed ownership. BG Foods sold its was 3.3 percent in September, marking 27 consecutive McDonald’s restaurants to The Kades Corpora- ing in October 2018 was up 12.6 percent compared to months of annual growth. the same period a year ago. The sales tax is the largest tion, a Pasadena-based McDonald’s franchisee. source of state funding for the state budget, account- Port of Beaumont gets $5 million grant Information from both companies indicates ing for 57 percent of all tax collections. that The Kades Corporation acquired all 18 Hegar announced Nov. 7 that he will send cities, On Oct. 11, the U.S. Economic Development Ad- Golden Triangle-area McDonald’s locations counties, transit systems and special purpose taxing ministration announced the award of a $5 million previously owned by BG Foods this past sum- districts $817 million in local sales tax allocations for grant to the Port of Beaumont Navigation District of mer, effectively changing hands July 1. With the November, 5.4 percent more than in November 2017. Jefferson County, Texas for the construction of Main purchase of the 18 area restaurants, Kades owns These allocations are based on sales made in Septem- Street Terminal 1- Phase I. a total of 54 McDonald’s franchise locations ber by businesses that report tax monthly, and sales Main Street Terminal 1- Phase I is the first step around Beaumont and Houston. made in July, August and September by quarterly fil- in rebuilding the failed Docks 2, 3 and 4 and will in- ers. crease berthing capacity at the Port of Beaumont by approximately 25 percent. The project will improve resiliency at the Port of Beaumont by strengthening the bank with construction of a severe weather resis- tant bulkhead that will not only protect the shore- line from further erosion during severe weather, but also provides a foundation for the new dock struc- ture, serving as a base that can withstand significant Jefferson County received allocations ofweather events. $2,669,918.84 in October, and $2,413,048.89 in No- Docks 2, 3 and 4 failed in 2012 due to aging infra- vember. This month, Orange County Commissioners structure and were decommissioned shortly thereaf- will discuss possible action regarding a direct deposit ter. Due to the age of the structure, restoration was from the State Comptroller of Public Accounts in the not an option. In order to protect the port from fur- amount of $376,897.08. These funds represent the ther damage during severe weather events and to add The Kades Corporation is owned by Ken and 1⁄2-cent Sales and Use Allocation tax benefit for the capacity that would be used by ort partners, including Mady Kades. According to information from month of September 2018, reported Christy Khoury, the United States military, the port determined that The Kades Corporation website, Ken Kades be- County Treasurer. the failed structure must be replaced with a state-of- gan his career as a crew person at a McDonald’s the-art dock supported by a modern and structurally in Cleveland, Ohio, in 1964. In 1982, he be- Southeast Texas home sales up sound bulkhead. came an Owner/Operator in Texas City. Since Texas Association of Realtors spokesperson Mor- “The Port of Beaumont has always placed great then, he has served on many different commit- gan Moritz reports that Beaumont/ Port Arthur emphasis on economic development and job creation tees and boards in McDonald’s while growing home sales volume is up and median home prices have efforts. The construction of Main Street Terminal 1 and leading his organization to be a leader in increased in third quarter of 2018. Compared to the will expand cargo handling capabilities at the Port of the brand. third quarter last year, Beaumont/ Port Arthur home Beaumont while also creating opportunities for eco- Mady Kades was also very involved in the lo- sales increased by 15.1 percent to 1,047 single-family nomic growth,” says Port Director Chris Fisher. “We cal communities and helped with the growth of home sales, while median price increased by 0.8 per- are grateful to the Economic Development Admin- their business through marketing. She worked cent to $156,500. istration, and all those who advocated for the con- with Shell, local schools and founded the struction of Main Street Terminal 1, for recognizing “Space Race,” which worked with Space Center how important this project is to resiliency efforts and Houston in support of an event benefiting the the securing of strategic assets during severe weather Ronald McDonald House Charities. events.” Prior to the recent acquisition of the Southeast The 25 percent increase in capacity the port will re- Texas franchise restaurants, The Kades Corpo- alize with the construction of Main Street Terminal 1 ration already employed over 1,000 people. is expected to result in an additional $450 million in – Sharon Brooks Statewide, Texas finished the summer selling season strong, with home sales increasing 4.4 percent year- over-year to 95,225 home sales, while median price increased 4.4 percent to $235,000. More 2018-Q3 data on the local housing market as well as statewide figures can be found in the full report on TexasRealEstate.com. “The record-breaking home-sales activity this sum- mer in Texas is an example of the strong economy, job growth and quality of life in our great state that keeps driving demand for home ownership,” said Kaki Lyb- bert, chairman of the Texas Association of Realtors. “At the current rate that home sales and active list- 16 | Business Journal • November 2018 Business Journal • November 2018 | PB.
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