THE COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 2015

south east texas economic development district Table of Contents

Comprehensive Economic Development Strategy 1 Regional Economic Development Conditions 4 In-Depth SWOT Analysis 7 Strategies and Implementation Plan 12 Evaluation Framework/Funding 15 Project Listing 16 Economic Resilience for southeast Texas 20

This document was prepared by the South East Texas Economic Development District, Inc. in cooperation with the South East Texas Regional Planning Commission and the South East Texas Economic Development Foundation to meet requirements set forth by the United States Economic Development Administration.

The mission of the Board is to promote

the diversification of the economic base and the

growth, development, and retention of business

and industry within the three-county region. SETEDD — CEDS 2015

Comprehensive Economic Development Strategy

Prepared by the South East Texas Economic Development District in cooperation with the South East Texas Regional Planning Commission and the South East Texas Economic Development Foundation to meet requirements set forth by the United States Economic Development Administration.

outheast Texas, which includes Har- Creek State Park in Hardin County offers a beau- din, Jefferson and Orange Counties, tiful venue for kayaking, canoeing, fishing, hiking has plenty to offer when it comes to and camping. To the north lies the Big Thicket a favorable business climate, strong National Preserve, known as the biological workforce, higher-education oppor- crossroads of North America since it is a transi- tunities and quality of life with its low tion zone where southeastern swamps, eastern Scost of living relative to the national average. The deciduous forests, central plains, pine savannas area, strategically situated around Interstate 10 and dry sand hills meet. and U.S. Highways 69/287 and 96, abounds with The region hosts several institutes of higher natural resources important for industry but also learning including Lamar University, known for ex- enjoyable to residents for boating, fishing, hiking, cellent programs and centers including the Center biking, camping and horseback riding. for Innovation, Commercialization and Entrepre- The Port of Beaumont and the Port of Port neurship (CICE), Lamar Institute of Technology, Arthur in Jefferson County and the Port of Or- Lamar State College – Port Arthur and Lamar ange in Orange County are based here, securing State College – Orange, all of which add to the the region’s importance as a major import/export industrious and educated workforce of the area. hub. The Neches and Sabine Rivers, Sabine Lake, With its business-friendly climate, strong Sabine Pass to the Gulf of Mexico and the Gulf workforce, educational opportunities and natural Intracoastal Waterway are the major water routes amenities, southeast Texas is a great place to live, critical to the movement of cargo, but are also work and play. popular for water sports and recreation. Village

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 1 SETEDD — CEDS 2015

COMPREHENSIVE ECONOMIC nomic development districts, public and private DEVELOPMENT STRATEGY nonprofit organizations and Indian tribes. EDA This Comprehensive Economic Development helps distressed communities address problems Strategy (CEDS) is the result of a local planning associated with long-term economic distress, as process designed to guide the growth of the well as sudden and severe economic dislocations southeast Texas region. The purpose of CEDS including recovering from the economic impacts development is to establish a process that will of natural disasters, the closure of military instal- help create jobs, foster a more stable and diverse lations and other federal facilities, changing trade economy and improve living conditions. The patterns and the depletion of natural resources. intent is for this document to be a guide for eco- nomic resilience within the region. THE SOUTH EAST TEXAS It is important to recognize that this docu- ECONOMIC DEVELOPMENT ment, while developed with broad input from DISTRICT, INC. South East Texas Economic Development District The South East Texas Economic Development members and others, carries no direct author- District, Inc. (SETEDD) was created in 1993 to ity and is a tool to be referenced and utilized in facilitate the flow of Economic Development Ad- coordinating economic development efforts in ministration grant and loan funds into the south- the region. The CEDS examines the southeast east Texas region, which is comprised of Hardin, Texas area as a region that competes globally for Jefferson and Orange Counties. The SETEDD employers and workers, and thus focuses on the is a non-profit corporation that is governed by interdependence of entities in the area. a Board of Directors composed of twenty-five people from throughout Hardin, Jefferson and THE ECONOMIC DEVELOPMENT Orange Counties. Board members are appointed ADMINISTRATION by each County Commissioners’ Court and rep- The Economic Development Administration resent a cross section of the region’s population (EDA) was established under the Public Works and economic interests. The mission of the Board and Economic Development Act of 1965 (42 is to promote the diversification of the economic U.S.C. § 3121), as amended, to generate jobs, base and the growth, development and retention help retain existing jobs and stimulate industrial of business and industry within the three-county and commercial growth in economically dis- region. tressed areas of the United States. EDA assistance Due to the presence of locally based eco- is available to rural and urban areas of the nation nomic development organizations and initiatives experiencing high unemployment, low income or throughout the service area of the SETEDD, the other severe economic distress. District’s economic development program places In fulfilling its mission, EDA is guided by the an emphasis on providing a supportive role to basic principle that distressed communities must entities focused on economic development within be empowered to develop and implement their the region such as chambers of commerce, busi- own economic development and revitalization ness associations, local government and econom- strategies. Based on these locally and regionally ic development departments. The SETEDD also developed priorities, EDA works in partnership promotes coordination of economic develop- with state and local governments, regional eco- ment planning activities among these various enti-

2 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

ties. A key focus of the SETEDD’s work includes to offer the SBA 504 loan program. SETEDF is assisting local governments and organizations in governed by a Board of Directors composed of project and grant development and submission local business and community leaders from Har- through technical assistance. While the SETEDD din, Jefferson and Orange Counties. The SETEDF strives to be aware of economic development has a steering committee, the Regional Economic needs and potential projects in the area that will Development Initiative (REDI), that oversees the enhance the local economic base, the District’s objectives of the Foundation. role in the implementation of such projects is limited. CEDS UPDATE PROCESS The SETEDD Board of Directors served as the ADMINISTRATIVE ORGANIZATION steering committee for the development of the The SETEDD is a non-profit corporation with no 2015 Comprehensive Economic Development employees and contracts for administrative sup- Strategy and provided the necessary technical and port services with the South East Texas Regional advisory input. Committee members were relied Planning Commission (SETRPC) and the South upon to disseminate information about the CEDS East Texas Economic Development Foundation, process within their individual communities and Inc. (SETEDF). Staff at SETRPC and SETEDF con- to ensure their communities’ needs and concerns duct day-to-day operations, as well as implemen- were brought to the committee for attention. tation of activities associated with the District’s In addition, SETEDD worked closely with other planning grant from the EDA. economic development entities in the region dur- The SETRPC is a voluntary association of ing the update of the CEDS to gather input. local governments that serves the three-county Three focus-group sessions were held in region of Hardin, Jefferson and Orange Counties. the spring of 2015 to solicit input for the CEDS The Planning Commission was established in June update. Mike Barnes of Mike Barnes Group, Inc., 1970 under authority provided by the Texas Leg- whose services were provided by the SETEDF, islature in 1965. The SETRPC is one of twenty- facilitated each of these sessions. All sessions four regional planning councils that serve all of were held at the offices of the South East Texas Texas. Each of these regional councils was found- Economic Development District. These sessions ed for the purpose of solving area-wide problems gathered input for the CEDS update from the by promoting intergovernmental cooperation and Regional Economic Development Initiative, the coordination, conducting comprehensive regional steering committee for the SETEDF, which con- planning and providing a forum for the discussion sists of area economic development stakeholders and study of area issues. and professionals, the SETEDD Board of Direc- The SETEDF is an economic development tors and other interested individuals and organiza- organization that covers the three Texas coun- tions. A Strengths, Weaknesses, Opportunities, ties of Hardin, Jefferson and Orange. SETEDF is and Threats (SWOT) analysis was conducted a non-profit development corporation that was during each of these sessions. The results of this formed in 1984 to assist small businesses in the analysis can be found in this report. region with long-term financing for real estate ac- quisitions, construction and equipment purchases. It is licensed by the Small Business Administration

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 3 SETEDD — CEDS 2015

REGIONAL ECONOMIC DEVELOPMENT CONDITIONS

AREA ECONOMY Employment location Quotient Industry Cluster Analysis Total-All Industries 158,374 1.00 Industry clusters are geographic con- Advanced Materials 9,201 1.79 centrations of competing, comple- Agribusiness, Food mentary or interdependent firms and Processing and Technology 1,200 0.33 industries that do business with each Apparel and Textiles 135 0.17 other and/or have common needs for Arts, Entertainment, talent, technology and infrastructure. Recreation and Visitor An analysis of southeast Texas’ Industries 2,741 0.44 industry clusters shows a competitive Biomedical/Biotechnical advantage in a number of areas. The (Life Sciences) 17,112 0.99 following table shows the Location Business and Financial Services 7,765 0.55 Quotients (LQ) for industry clusters in Chemicals and the southeast Texas region as well as Chemical-Based Products 6,224 2.73 the total number of employees in each Defense and Security 8,164 0.94 of these clusters. LQ is a measure of Education and Knowledge an industry’s concentration in an area Creation 2,987 0.5 relative to the nation. If the LQ is equal Energy (Fossil and to one, it indicates that the industry Renewable) 20,747 2.9 share of local employment is equal to Forest and Wood Products 1,147 0.78 the national share of employment for Glass and Ceramics 564 2.08 that industry. A Location Quotient of Information Technology and Telecommunications 1,293 0.21 greater than one shows competitive advantage in that industry locally. Manufacturing Supercluster 8,036 1.35 Southeast Texas shows the high- Primary Metals 373 1.74 est competitive advantage in Energy Fabricated Metal Products 3,845 2.55 (Fossil and Renewable), Chemicals and Machinery 1,605 1.6 Chemical-Based products, Fabricated Computer and Electronic Products 799 0.71 Metal Product Manufacturing and Glass Electrical Equipment, and Ceramics. Other industries that Appliance and Components 123 0.36 show a competitive advantage in the Transportation Equipment 1,291 0.94 region include Advanced Materials, Pri- Mining 296 1.31 mary Metal Manufacturing, Machinery Printing and Publishing 771 0.31 Manufacturing and Mining. Transportation and Logistics 4,187 0.87

Source: Stats America - Innovation in American Regions (http://www.statsamerica.org/innovation/)

4 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

The most recent data from the Texas Economic Development Workforce Commission indicate the Labor Force Corporations information shown below for southeast Texas: The State of Texas’ Development Corporation The total labor force for the Act authorizes cities to adopt a sales tax and Beaumont-Port Arthur MSA in establish a Type A or B economic development corporation, or both, to administer the tax funds. March 2015 was 180, 724. Several jurisdictions within the southeast Texas The unemployment rate for the region have adopted this mechanism through im- same time period was 6.2%. posing a half-cent sales tax to fund local develop- Projected occupational needs, according to the ment projects and initiatives. Those entities with Texas Workforce Commission, from 2012-2022 Type A sales tax can fund a variety of facilities and can be found on the following hyperlink: http:// infrastructure as well as job training classes www.tracer2.com/cgi/dataanalysis/occprjReport. Southeast Texas asp?menuchoice=income and career centers. Communities Similarly, projected employment by indus- Type B sales tax funds by Type of try 2012-2022 can be found at the following can be used for the Economic hyperlink for southeast Texas: http://www. same purposes as Development tracer2.com/cgi/dataanalysis/indPrjReport. Type A and addition- Corporation asp?menuchoice=indprj ally for other types of tourist and entertain- Entity type ment facilities. Busi- nesses and organi- Nederland 4B zations can apply Port Arthur 4A AREA ECONOMIC DEVELOPMENT directly to the various ACTIVITY & RESOURCES economic develop- Port Neches 4B ment corporations Orange 4B In recent years, economic development has for funds, which are shifted to the forefront in southeast Texas, with an charged with admin- Groves 4B ever-increasing focus on regionalism. The region istering the sales-tax boasts a number of chambers of commerce well revenues. Lumberton 4A distributed throughout the area. Additionally, Orange County Kountze 4A there are numerous economic development cor- also has an economic porations at the city and county levels. The South development cor- Sour Lake 4A East Texas Economic Development Foundation poration formed by Silsbee 4A brings all of these various entities together to Orange County, the promote a regional effort when it comes to eco- Port of Orange and nomic development. In addition, southeast Texas cities within the county enjoys the benefits of the Texas business climate that does not fall under the 4A with its lack of personal state income tax, minimal and 4B classification. corporate taxes and business-friendly attitude.

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 5 SETEDD — CEDS 2015

Chambers of Commerce Workforce Solutions Southeast Texas boasts numerous chambers of Southeast Texas commerce throughout the region: Kountze, Workforce Solutions Southeast Texas evaluates Lumberton, Silsbee, Groves, Port Neches, Sour and oversees the delivery of all workforce train- Lake, Greater Beaumont, Greater Port Arthur, ing and employment services in Hardin, Jefferson Nederland, Bridge City, Greater Orange and and Orange Counties. For employers, Workforce Vidor. Solutions Southeast Texas offers recruiting, reten- tion, training and retraining and outplacement Lamar University services as well as valuable information on labor The administration, faculty and staff of Lamar law and labor market statistics. For job seek- University strive to maintain a strong relationship ers, Workforce Solutions Southeast Texas offers and synergy with local and regional industries and career development information, job search needs. They attempt to align regional needs with resources, training programs and, as appropriate, their programs in engineering, nursing and health unemployment benefits. Economic development care occupations and educational fields, thereby and business expansion and retention shape train- strengthening university studies that complement ing strategies at Workforce Solutions Southeast the needs of the regional industrial base and Texas, which is part of a state network dedicated populace. to developing the workforce of Texas. As part of its economic development efforts, Lamar University pursued designation as an EDA Other entities involved in University Center and received this designation economic development in 2010. With this designation and the associated is active in economic devel- funding, Lamar will operate its Center for Innova- Entergy Texas opment in the southeast Texas region and of- tion, Commercialization and Entrepreneurship fers confidential and free business development (CICE), offering expertise in patenting, technology services to firms seeking buildings or sites in their transfer and marketing. The Lamar College of service area. Entergy maintains a comprehensive Engineering is partnering with the Lamar College database of buildings and sites available in their of Business to tie together technical expertise with service area, which includes southeast Texas, and economic research, business training and busi- provides community profiles and demographic ness counseling. The result will be a comprehen- data for the region. sive program offering comprehensive technical, The Lower Neches Valley Authority (LNVA) business and networking assistance to produce is responsible for maintaining an economic devel- high-tech, environmental and energy-related opment program to enhance economic growth entrepreneurs, small businesses and industry. The in the Neches River Basin and the Neches-Trinity Center’s mission is to leverage the technology, Coastal Basin. Funds to cover the activities of the expertise and infrastructure of Lamar Univer- economic development program are generated sity’s research centers and business resources to from a 1-cent rate per 1,000 gallons of raw water establish new innovation-based businesses and sales to industrial and municipal customers. The create synergies with established industries. The LNVA program consists of low-interest loans and/ result will be a diversified and resilient economy or grants for water/wastewater infrastructure im- for southeast Texas. provements and for projects that improve water

6 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

availability, water quality and water management Sabine River and its tributaries. Economic de- or enhance economic growth within the Author- velopment programs vary throughout the Basin ity’s jurisdiction. based on community needs and attributes. The The Sabine River Authority (SRA) is active in SRA is committed to working with organizations efforts to enhance the economic vitality of the and communities throughout the Basin to com- Sabine River Basin and increase awareness of the plement existing economic development efforts.

IN-DEPTH SWOT ANALYSIS

he Mike Barnes Group’s President/CEO provided two days of focus groups with south- east Texas participants in the offices of the South East Texas Regional Planning Commis- sion/South East Texas Economic Development District aimed at an in-depth analysis of Strengths/Weaknesses/Opportunities/Threats. These SWOT Focus Groups occurred on April 22 and 23, 2015. Participants included elected and appointed public officials from within the region, economic development professionals, workforce staff, planning staff, Teducational staff, community leaders and members. The groups were asked to evaluate the region in the same fashion corporations and/or site selection professionals make their evaluations. The region was evaluated along the following criteria: Business Climate, Workforce/Education, Available Buildings/ Sites/Infrastructure and Quality of Life. Participants evaluated these factors as a component of the SWOT focus groups, citing the relative strengths, weaknesses, opportunities and threats regarding the region’s attributes. It should be noted that many factors are simultaneously, at times, in multiple categories. This stems from the perspective of the participants relative to the specific issues at hand. The following pages represent the findings of the In-Depth SWOT Analysis, specifically related to the region’s economic resilience.

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 7 SETEDD — CEDS 2015

BUSINESS CLIMATE

Research suggests that an economy that is sheltered from large economic Strengths swings is more attractive to companies and employees. When unemploy- ment rates are low, the region typically benefits from an expanded tax base and increased spending. A growing economy is also vital to attract and h retain workers in any industry. Skilled workers are highly sought after and Texas enjoys great highly mobile. This mobility is largely due to the many living and working reputation for business options before them. Regions must offer sustainable economic growth that climate/SE TX enjoys a creates career opportunities to retain and attract these in-demand workers. similar reputation h State and local taxes are favorable Opportunities h Attainment Area h h Weaknesses Overall cost of Permitting process is business continues relatively easy • to be lower than h Lack of financing for competitive locations Available state and small projects local incentives/CDC • h Financing Cities and counties do Entrepreneurs could h not enjoy shared vision find SE TX an ideal Threats business climate in Competitive wages of advancing economic growth future h • • h Interlocal governmental Potential governmental Regional economic agreements Lack of population “red tape” growth development effort h can enhance overall • • Ability to site difficult business climate Perception of Texas poli- projects Perceived limited career h tics on national basis opportunities h Connectivity between • • Region receptive to Lamar University and Strengthening of US traditional industry Economic Development the communities to dollar h effort is underfunded enhance business climate • • Leadership Keystone Pipeline not understands and Union perception being constructed embraces economic development

8 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

WORKFORCE AND EDUCATION

Opportunities

Strengths h Lamar-Port Arthur curriculum h h Lamar University School Districts/ h Workforce Lamar Instittute of collaboration Technology-throughout h the southeast Texas Weaknesses Bio-Med future region h h • Connectivity between Some area pre-k Some area pre-k through Lamar and downtown through 12 schools are Threats 12 are not adequate Beaumont outstanding • h h • Keeping young and Emerging technology Workforce Solutions educated talent within both education Lack of future leadership Southeast Texas in both areas • and workforce applied h • Aging workforce Overall workforce “Brain Drain” • h Some school districts Training facilities h • Improving safety in Limited career region’s industry opportunities h Lamar-tech transfer

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 9 SETEDD — CEDS 2015

AVAILABLE BUILDING/SITES INFRASTRUCTURE

Southeast Texas is strategically located along the Gulf of Mexico coast of the United States, close to the major city of Houston. The region shares many of the same attributes in terms of its basic industry as the Houston region. In evaluating the infrastructure and sites of southeast Texas, one recognizes the region is comprised of a number of independent communities, all of which have their own set of infrastructure and sites.

Opportunities Strengths

h h Deepening the ship I-10 Corridor channels h h Cost effective sites Incubators and buildings Weaknesses h Threats h • Further development Ports and waterways of airport property • h Lack of infrastructure in some locations h Airport Airport issues Planning for • • h accessible Pipelines Interstate Highways communities Keystone Pipeline not Exits and Access being developed h h • Rail Lamar/Region • h Proximity to Houston Bio-Med/Tech Outmigration of water overlooked facilities and resources $30 B investment infrastructure in public/private in • h next 5 years Aging infrastructure h Low fuel costs take Proximity to Houston advantage of transportation h network available Oil and gas infrastructure

10 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

QUALITY OF LIFE

Opportunities Strengths h Expansion of h Weaknesses Ford Arena and Lamar and Park Facilities accompanying • h amenities Health care in certain Lamar’s expanding h specialty areas role to enhance quality Threats Community colleges • of life opportunites- with amenities connectivity to Perception of lack of h downtown • cultural amenities Regional museums h Educated youth exit area • threatens Quality of Life h Downtown Cultural Outlook improvements • Cost of living • Lamar attracting more h Natural Disasters Lack of diversity diverse population Natural Resources • h provide recreational • Future leadership options Relatively low population Prioritize quality of not emphasizing Quality life will result in more h growth does not enhance of Life quality of life–stagnation opportunities Location in proximity • to beaches/large • Lack of internet in all metros, etc Environment parts of the region • • Out-migration on week- Lack of region-wide ends entertainment • Lack of pride in housing gives unappealing ap- pearance of region • Minimal youth activities/ opportunities create desire to leave

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 11 SETEDD — CEDS 2015 STRATEGIES AND IMPLEMENTATION PLAN The South East Texas Comprehensive Economic Development Strategy incorporates overall aspects of the region’s economy, existing and future economic development efforts and inclusion of those factors impacting economic resilience including but not limited to natural disasters, cyclical economic develop- ment trends, diversification and existing and planned projects including waterway improvements, port development and surface/air transportation. In addition, workforce issues are recognized as vital and an ongoing integral component to the region’s economic vitality, sustainability and resilience.

ECONOMIC RESILIENCE tial markets, economic assessments and an overall Southeast Texas is subject to natural disasters, marketing and evaluation strategy. This plan primarily hurricanes. The region has shown served as a foundation for the region’s economic resilience from numerous hurricanes in the past development effort. The plan should be re-visit- 25 years. Any Comprehensive Economic De- ed and possibly updated or a new plan developed velopment Strategy must recognize the ongoing to ensure the region’s economic resilience. threat of this phenomenon to the region and Numerous projects have been undertaken since its economy. Local, regional, state and federal the adoption of this plan including billions of dol- resources including the Economic Development lars of public/private investment including water- Administration, FEMA, HUD and others have way designed for improvements, Lamar Uni- worked jointly with the region to overcome these versity’s extended participation in the economic barriers to the regional economy as quickly as development process, port projects, numerous possible. One of the outcomes of the In-Depth marketing efforts by the region and its included SWOT Analysis is the need for an updated entities, a major workforce strategy adopted economic development regional plan that highlighting trends and integration of workforce/ recognizes these hurricanes and includes mecha- economic development. nisms to address a speedy recovery that lends to economic resilience. DIVERSIFICATION The Mike Barnes Group worked collab- Although the petrochemical industry has been oratively with the region’s economic develop- a large source of employment, investment and ment group, REDI/South East Texas Economic governmental revenue for the region, it is widely Development Foundation, to develop a regional thought that other industries should similarly be economic development strategic plan in 2009- present in larger numbers to address potential 2010. This plan included identification of poten- cyclical depressions to the regional economy.

12 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

It should be noted that diversification is has been undertaken in the following ways: not uniformly held as a strategy or imple- h Regional economic development website mentation plan. However, overall consensus h is that there is a need for continued diversifica- Regional attendance at trade shows, tion. The area, with its improvements to the sur- corporate real estate gatherings face, water and air transportation infrastructure, h Regional attendance at site selector coupled with its location in proximity to Houston, gatherings is ideal for other diversified investments. The h Regional submittals to business/industrial workforce, education and economic develop- prospects reviewing the area for potential ment groups see this as a positive effort. locations There are a multitude of programs available The Regional Economic Development Initia- to obtain funding for this diversified effort includ- tive/South East Texas Economic Development ing the Economic Development Administra- Foundation has worked to minimize the geopoliti- tion. The development of a revised or updated cal lines and maximize the attributes of the region. Regional Economic Development Strategic Plan As a result of the In-Depth SWOT Analysis and would provide sources and methods for utiliz- recognition of the area economy, the following ing approaches aimed at diversifying the regional action items were identified: economy. The major population centers within the region possess suitable amenities for a mul- h Enhanced funding for regional economic titude of diverse businesses and industries. The development efforts region’s educational assets at both the pre-K h Enhanced marketing of the region to through 12 and post-secondary levels provide prospective businesses and industries abundant training resources for the adoption of h Update/new regional economic such a strategy. development plan based on the findings Entrepreneurship has been identified as a contained in the CEDS means to further diversification and is a logi- cal extension of much of the work underway h Further cooperation and collaboration with Lamar University and the collaboration between the private and public sectors in with Workforce Solutions Southeast Texas. The sustaining and expanding the region’s strong work ethic within the region can serve as economic development effort. a resourceful asset in attracting those businesses These efforts require a strategy and accom- and industries that can provide employment op- panying funding to implement the strategy. The portunities that can further diversify the region’s CEDS process demonstrated to the stakeholders economic base. such an expanded need. Given local/regional budget constraints, outside sources of funds such THE REGIONAL ECONOMIC as those of the Economic Development Adminis- DEVELOPMENT EFFORT tration should be sought. The region has benefitted from an effort to combine the resources of many of the cities and their respective economic development agencies to market the region on a global basis. This effort

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 13 SETEDD — CEDS 2015

THE ACTION PLAN The Action Plan must be undertaken along the following lines in order to achieve economic resilience, diversification and overall economic development success:

h Continued collaborative effort of h Updated regional Economic Development REDI/SETEDF Strategy taking into account the success of the region since the adoption of the last h Enhanced funding for regional marketing plan and recognizing the importance of economic resilience in futuristic terms h Enhanced cooperation among and between the region’s governmental entities and h Continued cooperation and collaboration private sector with and between the region’s school districts, Lamar University, community h Further collaboration among and between and technical colleges, Workforce Solutions the region and state/federal government Southeast Texas, local/regional economic in securing funding for ongoing economic development agencies and their respective development efforts to achieve the goals interaction with local/regional governments identified above. h Performance and Evaluation Standards

14 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

Evaluation Framework/Funding

The evaluation framework is an important element of the ongoing planning process and should answer the questions, “How are we doing?” and “What can we do better?” The evaluation framework, with its associated measures and timelines, should cascade from the strategic direction and action plan, which, in turn, flow from the SWOT analysis. Below are elements of the Evaluation Framework for the region:

h Development of a regional economic inequality, in- h Improved access to and economic development score- creased access to broadband/ enhanced healthcare within card to include, but not limited internet within the region the region to, the traditional metrics of jobs and investment but h Increased population growth h Recognition of a “sense expanded to include quality to reflect the growing economy of urgency” relative to of life metrics, educational the regional economic metrics, workforce and h Increase in the labor development effort training metrics participation rate h Develop a grid to analyze h Increase in the economic h Increase in exports from the region’s success and resilience of the region via firms within the region performance utilizing the higher incomes, less above criteria

Transportation Projects Quality of Life Sources of Funding h TxDOT h Local Government Projects h Possible EDA for Business/Industry Projects h Local Governments In order to accomplish the goals h Private Foundations and evaluate those identified, Workforce Projects h Workforce Solutions Southeast Texas h State of Texas funding of programs and projects h TX Workforce Commission Economic Development must occur. Sources of funding h Dept. of Labor h Possible EDA Marketing for the southeast Texas region Infrastructure Projects h Local Governments include the following: h Local Governments h EDA h Texas Capital Funds h Chambers of Commerce h EDA h HUD

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 15 SETEDD — CEDS 2015

PROJECT LISTING

The following project listing identifies projects and activities that should be undertaken in the next few years. These projects reflect the vision, goals, and objectives that have been outlined in the CEDS.

PROJECT Improve signage of truck routes to ports GOAL Further promote intermodal connections and transportation in the area Possible Funding Source or Sponsor TxDOT

PROJECT Improve turning radii at intersections along designated truck routes GOAL Further promote intermodal connections and transportation in the area Possible Funding Source or Sponsor TxDOT

PROJECT Widen & deepen local ship channels GOAL Further promote intermodal connections and transportation in the area Possible Funding Source or Sponsor United States Army Corps of Engineers

PROJECT Beautify & enhance waterfront areas GOAL Improve quality of life in the region Possible Funding Source or Sponsor Local governments; Economic Development Corporations

PROJECT Market southeast Texas’ ecological treasures GOAL Enhance and expand tourism in southeast Texas Possible Funding Source or Sponsor SETEDF; Visitor Bureaus; Chambers of Commerce

16 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

PROJECT Develop Village Creek attractions-lodging, food, etc GOAL Enhance and expand tourism in southeast Texas Possible Funding Source or Sponsor TPWD

Develop a regional bulletin board for the posting of economic development PROJECT activities, incentives, and success stories GOAL Increase regionalism in southeast Texas’ econnomic development efforts Possible Funding Source or Sponsor SETEDF; SETRPC

PROJECT Develop a “buy local” campaign GOAL Improve perception of southeast Texas Possible Funding Source or Sponsor SETEDF; SETRPC; Chambers of Commerce

Provide workshops on importance of economic development to local PR OJECT organizations & governments GOAL Raise awareness of the importance of economic development Possible Funding Source or Sponsor SETEDF; SETRPC

PROJECT Establish outreach program to stay informed of project ideas in the region GOAL Create new jobs and retain existing meaningful, well paying jobs Possible Funding Source or Sponsor SETEDF; SETRPC

PROJECT Develop a database of site selectors to market southeast Texas GOAL Improve perception of southeast Texas Possible Funding Source or Sponsor Chambers of Commerce; SETEDF

PROJECT Increase awareness of foreign trade zone GOAL Further promote intermodal connections and transportation in the area Possible Funding Source or Sponsor SETRPC; SETEDF; Ports

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 17 SETEDD — CEDS 2015

PROJECT Incorporate career academies in schools/apprenticeships GOAL Improve workforce training Possible Funding Source or Sponsor Local School Districts; Workforce Solutions Southeast Texas; Lamar University, Lamar Institute of Technology & Lamar State College Port Arthur & Orange

PROJECT Develop financing mechanisms for site development GOAL Create new jobs and retain existing meaningful, well paying jobs Possible Funding Source or Sponsor Economic Development Corporations; SETEDF; Chambers of Commerce

PROJECT Assemble parcels of land into desirable business & industrial sites GOAL Create new jobs and retain existing meaningful, well paying jobs Possible Funding Source or Sponsor Economic Development Corporations; Downtown Associations

Start a coalition that can stand for the interests of southeast Texas on a PR OJECT national level GOAL Improve perception of southeast Texas Possible Funding Source or Sponsor SETEDF; SETRPC

PROJECT Improve Spur 93 to improve access to the Jack Brooks Regional Airport GOAL Further promote intermodal connections and transportation in the area Possible Funding Source or Sponsor TxDOT; Local Governments

Develop programs and policies that provide access to technology, capital, PROJECT and incubator services GOAL Create new jobs and retain existing meaningful, well paying jobs Possible Funding Source or Sponsor SETEDF; Lamar University; Economic Development Corporations

PROJECT Increase awareness of local business needs GOAL Create new jobs and retain existing meaningful, well paying jobs Possible Funding Source or Sponsor Chambers of Commerce; SETEDF

18 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY SETEDD — CEDS 2015

PROJECT Aid local business and industry in getting what they need for success/growth GOAL Create new jobs and retain existing meaningful, well paying jobs Possible Funding Source or Sponsor Economic Development Corporations; SETEDF

PROJECT Work with local entities to develop quality, high profile projects GOAL Create new jobs and retain existing meaningful, well paying jobs Possible Funding Source or Sponsor SETEDF; SETRPC; Economic Development Corporations

PROJECT Maintain awareness of EDA investment priorities to inform local efforts GOAL Create new jobs and retain existing meaningful, well paying jobs Possible Funding Source or Sponsor SETEDF; SETRPC

PROJECT Develop new and existing area levees for storm surge protection GOAL Be poised for disaster recovery Possible Funding Source or Sponsor Army Corps of Engineers, Local Governments, Economic Development Corporations

PROJECT Develop Regional Waste Water Treatment Facility in Orange County

GOAL To improve water quality for Adams and Cow Bayous that feed into the Sabine River and then into the Gulf of Mexico Possible Funding Source or Sponsor Sabine River Authority of Texas

PROJECT Develop upgraded IH-14 access to multimodal facilities in southeast Texas GOAL Improve access between military installations and deployment seaports Possible Funding Source or Sponsor TxDOT; Ports

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 19 SETEDD — CEDS 2015

ECONOMIC RESILIENCE FOR SOUTHEAST TEXAS

outheast Texas enjoys a steady econ- an opportunity to establish priorities, set goals and omy poised for more growth. The develop programs of work for the region. region’s leaders and planning commit- These measures will be monitored by the tees realize that natural disasters, cycli- SETEDD Board of Directors. The District’s activi- cal depressions in the energy sector ties will be considered successful if positive trends and workforce issues have contributed are identified on an annual basis. Once the status Sto problems in the past, but they are committed of these measures has been established each to setting plans in place to keep the economy of year, a course of action will become apparent. To southeast Texas resilient. This process recognizes keep this economic development plan resilient for those barriers to economic resilience and puts in the region, board members and economic devel- place programs and projects to overcome those opment professionals will contribute their input barriers. The region’s vast resources coupled for an annual evaluation of economic trends. The with the strong work ethic of its labor force con- South East Texas Economic Development District tinue to contribute to the economic well-being appreciates the participation of those engaged in of southeast Texas. This Comprehensive Eco- making this effort a region-wide success. nomic Development Strategy process provides

20 COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY