City of Laredo Economic Development - City Council Annual Budget Workshop FY 2020-2021 Proposed Budget
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Teclo J. Garcia
Economic Development
Director
City of Laredo
Economic Development
City Council Annual Budget Workshop
FY 2020-2021 Proposed Budget
Mission Statement Grow and enhance Laredo’s economy by promoting local business sustainability and expansion, by providing leadership and innovation for business recruitment, job creation and workforce training and by promoting Port Laredo internationally.
Goals & Objectives BUSINESS EXPANSION: Continue to create well-paying jobs and investment by expanding established businesses and by recruiting strategically targeted industries such as produce/cold storage, healthcare and manufacturing. SMALL BUSINESS: Continue to assist small businesses by completing CARES Act funding, and by working with local partners such as Mile One, Laredo EDC and TAMIU Small Business Development Center. ECONOMIC INCENTIVES: Develop and prepare fair and attractive economic incentive policies that will enhance investment and recruitment such as for the Texas Chapter 380 program and Tax Increment Financing (TIF) zones. WORKFORCE DEVELOPMENT: Create a program with Laredo College, Workforce Solutions, TAMIU and the school districts that will accelerate training for high-demand positions in Laredo’s medical and logistics fields. GRANTS: Assist departments with grant research, proposals, writing and submissions. Specifically will work to submit proposals for city-wide quality of life, health and recreation projects and for an economic impact study .
Budget Breakdown
General Fund
Contractual
17%
Other Materials
1% and
Personnel Supplies
82% 1%
FY 19-20 FY 19-20 FY 19-20 FY 20-21
Original Adjusted Estimate Proposed
$288,061 $418,347 ♣$317,876 $374,688
♣ Estimate based on reduction in personnel expenses related to Administrative Assistant
Major Fund Changes
• $288,061
• +$86,627 - transfer in one (1) Grant
FY 19-20 Administrator from City Manager’s
Original Office
Budget
• $374,688
• Proposed budget to support all
FY 20-21 operational expenses including one
Proposed (1) additional staff transferred in
Budget
Grant Administrator hired on September 16, 2019 under the City Manager’s Office
Position was transferred to Economic Development effective October 21, 2019.
GOING FORWARD TO 2021 Mission Produce’s new 262,000 square feet avocado distribution and manufacturing center is scheduled to open in 2021. Mission is the third produce company to locate or significantly expand in Laredo in the last year. For 2021, Economic Development will continue to build on its dynamic growth and strategic international location and work collaboratively to grow a strong and resilient economy.
Special Presentation to City Council August 2020
Budget Breakdown
City Contract Budget Amount
Administration $163,273
Site Selection Services and Targeting $160,459
Marketing/Outreach/Membership $73,995
Incubator Project (MileOne) $162,273
Total: $560,000
Total Staff:
Laredo EDC 5
MileOne/IBAC 3
2
Industrial Attraction and Business Development Performance
The Industrial Attraction Division is a one-stop
resource center focused entirely to assisting new
businesses locate or expand in Laredo for the
Website Hits outside Laredo 434 per month
purpose of creating jobs and expanding our tax
base through direct capital investments. In addition, Site Selection Visits 5
this division showcases the opportunities and
benefits that Laredo and Webb County offer Landed Projects 3
businesses and corporations seeking new locations
for their business. The industrial development team Capital Investments $26M
works closely with new prospects to deliver a wide
range of services and information to facilitate the New Jobs 335
search process for site selectors. We conduct
property site tours, presentations, and meetings Retained Jobs 100
with community stakeholders and provide the most
current community data and economic indicators Active Projects 5
report for various sectors in our community. We
also work with the City of Laredo and Webb County
Capital Investments $7.5M
to provide economic incentives support.
New Jobs 255
3
MileOne Performance
The International Business Assistance Center (IBAC) will (1)
promote entrepreneurship and international trade for the Members 62
Laredo and Webb County South Texas region, (2)
encourage FDI by facilitating the process of establishing a
business in the U.S., and (3) assist U.S. companies who Start-ups or Expansions 55
want to expand their business services into Mexico. As a
support center, the IBAC will assist and guide companies
through the process of establishing or expanding their Website Hits 525/month
business in a foreign country.
MileOne's mission is to address the economic challenges Workshops 15
of the Laredo region by providing fertile ground for
entrepreneurial growth, innovation, and business
diversity. The MileOne program guides entrepreneurs Webinars 11
through individualized mentorship and provides
professional and modern workspaces at subsidized costs. Community Members Over 5,000
MileOne also actively provides community education participants
through workshops, webinars, and classes on topics such
as: startup guidance, financial literacy, marketing, and
professional development, as well as e-commerce and
safety best practices to address the challenges brought
on by the current pandemic.
4Sunset Produce Economic Impact Study Summary • Initiated by LaredoEDC • Investment of $25 MILLION creates 322 CONSTRUCTION JOBS • Operations of 240 jobs with 80% paying $13.50 PER HOUR • $35 MILLION PER YEAR economic impact to community 2020- 2025 • $920,000 per year tax impact 2020-2025 $420,000 PROPERTY TAX INCREASE average *AEP sponsored economic impact study using IMPLAN version 5.16 5
Budget Request Summary
• Provides optimized resources to keep talent focused on the mission
Retain, expand, and diversify into 2021 and beyond
Further improve Laredo business climate visibility and image
• Allows LaredoEDC to continue to utilize successful model
Initial contact with targeted industries and companies
Confidential communications with companies when desired
Lead engagement with community partners and collaborate to LAND PROJECTS
Engage City ED department and transition incentives process
• Provides tools for new leadership to have an impact
Leverage business knowledge and network of industry leaders in US and Mexico
Work with City Council to identify opportunities in each district
6ThankYou
Gene A. Lindgren, President & CEO
LaredoEDC @LaredoEDC
(956) 722-0563
www.laredoedc.org
Laredo Economic
Development
CorporationLANDED PROJECTS
Company Capital Investment New Jobs Expansion $ Jobs Retained Incentives Rebate
FY 2019-2020
CTI $1,200,000 70
Sunset $8,000,000 140 $17,000,000 100
Concentrix 125
TOTAL $9,200,000 335 $17,000,000 100 $0
ACTIVE PROSPECTS
Company Capital Investment New Jobs Expansion $ Jobs Retained Incentives Rebate
FY 2019-2020
Lite Manufacturing $1,500,000 30
Telecommunications $1,500,000 100
Auto Part Compontent
$1,500,000 80
Manufacturer (Lease)
Cabinet Manufacturer
$500,000 25
(Lease)
Retail (Lease) $2,500,000 20
8
TOTAL $7,500,000 255 $0 0 $0Website Hits from Outside Local Region (100/month) United States 3,497 Mexico 264 France 208 South Korea 86 Canada 83 United Kingdom 62 India 55 China 45 Argentina 39 10 Months 4,339 October, 2019 to July, 2020 **Numbers in the U.S. does not include Laredo, total U.S. number is 4,762. ***Website hits are measured by the Laredo EDC website through Google Analytics 9
Community Service Projects
SHOP SMALL BUSINESS SATURDAY COALITION LAREDO MASK MAKERS INITIATIVE
• We’ve Got You Covered by cutting and sewing over 3,000
• LEDC collaborated with The Laredo Chamber of
masks. Donated over 600 masks to essential or at-risk
Commerce with the Shop Small Business groups to include all members of the community such as
Saturday Coalition. Casa de Misericordia, Drs. Gary and Jane Unzeitig, Dr. Luis
Benavides, Retama Manor, AEP Texas, Dr. Reynaldo
Godines, Dr. Gomez Vasquez, Apollo Rehabilitation Center,
as well as other entities throughout the Laredo region.
10Community Service Projects
COVID-19 BUSINESS RESOURCES INFORMATION EMERGENCY COVID-19 SUPPORT
• LaredoEDC in conjunction with MileOne and the • A support grant from AT&T to coordinate with
Laredo Chamber of Commerce compiled important locally owned and operated restaurants and
information on their websites for business owners and Fishers of Men Foods to provide/deliver meals
to first responders and elderly from across the
workers about the financial incentives provided by the
Webb County region
U.S. Small Business Administration (SBA) such as SBA
Paycheck Protection Program (PPP), Federal Disaster
Loans for Businesses, Private Non-Profits,
Homeowners and Renters and other SBA Loans and
Funding options.. https://www.laredoedc.org/covid19/
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