< Previous8COASTAL BEND ECONOMIC DEVELOPMENT GUIDEby RON STARNERBUSINESS CLIMATE OVERVIEW ith $50 billion in capital investment since 2010, the Corpus Christi region ranks as one of the largest industrial and energy-related project magnets in the world.The roll call of heavyweight investors reads like a Who’s Who of big business: ExxonMobil, SABIC, Citgo, Talen Energy, Magellan, Air Liquide, Haliburton, Valero, Cheniere, Kiewit, TPCO, LyondellBasell and Howard Energy, just to name a few.The growth wave is not subsiding anytime soon either. Three years into the 5-year strategic plan of the Corpus Christi Regional Economic Development Corp., the organization has tallied $30 billion in capital investment, 2,200 new jobs and $151 million in payroll.“We are a relatively congestion-free deepwater port on the Gulf of Mexico. We have the pipeline infrastructure to handle massive amounts of product. We have an experienced and technically proficient workforce, and we are doubling our capacity for our process technology program in our local college,” says Iain Vasey, president and CEO of the CCREDC. “We will double the number of graduates from that program this year, and then we plan to double it again in another two years. We are not standing pat.”WCOASTAL BEND ECONOMIC DEVELOPMENT GUIDE 9The evidence on the ground confirms that assertion. The Coastal Bend region continues to invest into its workforce, infrastructure and qualified sites. The CCREDC Qualified Sites program delivers parcels where substantial due diligence has been completed; significant site information has been gathered, documented and made available for submission on inquiries; independent third-party engineering and environmental studies have been done; and an established price on the property has been set by the owner.“A CCREDC Qualified Site is a development-ready industrial site that has been identified initially in the CCREDC inventory of sites and then has completed a rigorous review process by CCREDC staff and local engineering and environmental consultants,” the organization states. “Specific site details, such as zoning restrictions, title work, environmental studies, soil analysis and surveys, are assessed for compliance and authenticity. The majority of the costs for environmental and engineering due diligence work will be funded by CCREDC with property owners expected to fund some of the costs and is a negotiated amount between the site owner and CCREDC.”Proactive programs like this have enabled the region to rack up an impressive haul of capital investments recently. Among them are the $750-million investment by Permico, creating 72full-time jobs; a $600-million investment by EPIC Y Grade, creating 10 jobs; a $9.5-billion project by Gulf Coast Growth Ventures (ExxonMobil and SABIC), creating 636 jobs; and a $14.5-billion project by Cheniere, creating 250 jobs.But the CCREDC is focused not just on landing the home runs from outside. The organization is equally committed to helping home-grown operations expand. Its business retention and expansion program is widely considered to be one of the best in the business. During 2018, CCREDC staff members conducted more than 80 business retention visits. These face-to-face business meetings allows for in-depth conversations about the current business climate in the region, potential impacts and opportunities for growth.A survey of regional businesses revealed recently that 95 percent of participants said they would consider the Coastal Bend for expansion; 78 percent ranked the stability of the workforce as above average; and 55 percent indicated they would expand within the next three years. “We have an experienced and technically pro cient workforce, and we are doubling the capacityfor our process technology program in our local college.” – Iain Vasey, President & CEO, Corpus Christi Regional Economic Development Corp.10COASTAL BEND ECONOMIC DEVELOPMENT GUIDEhen your region has just finished landing $50 billion in capital investment since 2010, what do you do for an encore? If you’re Iain Vasey, president and CEO of the Corpus Christi Regional Economic Development Corp., you set your sights on climbing new mountains.In the following interview, this chief executive shares his thoughts on where the Coastal Bend region goes from here, and what’s driving growth now and in the future.What is your approach to economic development?IAIN VASEY: It is not always about the incentives. There is certainty of doing business here, and that’s what companies want and need. Being able to bring products in quickly is a plus. We are trying to think of economic development differently than everyone else. We deal in certainty and process systems. All of my crew has had experience on the private side of development. We can’t think like everyone else in economic development. We have to think like private companies. If you look at our local sales tax, we have around $10 million in the fund to support local economic development. We want every company to benefit from it. And we do that by supporting workforce education. If you are a young person pursuing a technical degree here, you come out of school with a chance to make over 100 grand a year at the age of 20. We have to get beyond the model of telling every kid they have to go to a 4-year school. TAMUCC is creating industrial engineering and civil engineering programs there now. They will go from 12,000 students today to 20,000 students within 10 years. We have a new university president — Kelly Quintanilla — and she is a great thinker. He may have a tough act to follow, but that’s not deterring the CCREDC’s CEO from pursuing even bigger goals.by RON STARNERWCCREDC INTERVIEW PHOTO: GETTY IMAGESCOASTAL BEND ECONOMIC DEVELOPMENT GUIDE 11She is a very progressive and aggressive supporter of connecting economic development and higher-ed institutions. She wants to produce the highest quality workforce of tomorrow. What are your organization’s top three priorities for the coming year?VASEY: Consolidating on the future of all our major deals; building our momentum into plastics and metals processing; building a quality of place; and transitioning from a transactional focus to more of a transformational agency focus. We can’t ignore that. Our new bridge of about a billion dollars is still under construction. We’re also deepening and widening the ship channel. And we are raising the height of the bridge. Both coincide with the new specs of the Panama Canal. We will accommodate even more goods from Asia.What are the factors driving growth in your region today?VASEY: Three or four: the availability of infrastructure to bring products by pipeline and rail from the Eagle Ford Shale Play and Permian Basin. The amount of crude going out from the Port of Corpus Christi is more than every other single port in America. Economic diversification plays to the next phase of the energy sector. We are not just shipping out raw product but doing value-add. We are processing the natural gas into petrochemicals. We are going down the supply chain and identifying supply-chain gaps. We made a concerted effort to target electric arc steel manufacturing years ago. That is advanced manufacturing. With HBI — hot briquette iron — you wick off all the plastics and rubber from the steel in the huge ovens. You also have to separate the copper. That is high-tech work.How would you assess your region’s performance in 2018?VASEY: It was a very strong year. We announced the ExxonMobil SABIC deal at the end of 2017. 2018 was a consolidation year and a year for moving into different areas. We had some good mid-stream companies do deals. We almost don’t see projects of less than $100 million anymore.Where does the ExxonMobil-SABIC joint venture project stand at the moment?VASEY: It is clearing its final hurdles. The final air permit should be done this quarter. They are moving dirt and clearing the site and finishing roads serving the site. They are hiring staff. For the construction hiring, 95 percent of all contracts awarded are with local companies in the Coastal Bend. Local businesses are benefitting from this project. Even a local sign shop is being helped. Around 650 to 700 permanent jobs will be created, plus additional contractor positions. “It is not always about the incentives. There is certainty of doing business here, and that’s what companies want and need.” — Iain Vasey, President & CEO, CCREDC12 COASTAL BEND ECONOMIC DEVELOPMENT GUIDEhen a $9.5-billion petrochemical project selects your county following a multi-state site search, you know you’re in store for some healthy growth. But that’s not the only challenge on San Patricio County Judge David Krebs’ docket. In the following interview, he discusses his role in economic development and how he plans to manage explosive growth.What is your role in economic development as county judge?JUDGE DAVID KREBS: My biggest role is with large industry coming into the county. I work with them on variances and abatements. Numerous other agreements are required throughout the process, from start to finish, of each project.What are your top priorities for the coming year?KREBS: Most of the growth we have is on the east end of the county. I am trying to push some of the development into the west end of the county. They could use some of that growth. Also, the industry we do have in the county — I want to make sure they are doing what they said they would do when we gave them their abatements. I also make sure any problems are corrected. What are San Patricio County’s best assets as a business location?KREBS: The biggest asset is we have the water — the channel. The Port of Corpus Christi is pretty well filled up. Our side of Nueces Bay is booming. We have land available with rail and major highways going through the county. We Wby RON STARNERSan Patricio County Judge David Krebs welcomes a rising tide of industry.ManagerSAN PATRICIO COUNTYGrowth Growth Meet thePHOTO COURTESY OF CCREDCCOASTAL BEND ECONOMIC DEVELOPMENT GUIDE 13have cheap and abundant natural gas. So much gas is coming into the area right now from West Texas. We are a known hot spot worldwide right now with all the industries we have. We are also a very low crime area. We don’t have big cities. We have 22,000 people in our largest city. There is a quiet lifestyle and country living here. People like the quietness. There are no traffic jams in the county.What are the biggest challenges facing the county in the coming 24 months?KREBS: One is our workforce in the area. Some of these expanding industries need 600 to 700 jobs. Some need 6,000 to 10,000 construction jobs. We are working with Del Mar College in Corpus Christi on dual credit for high school juniors and seniors. A second challenge is housing. Numerous “We used to be a sleepy county. Big industries have put us on the map. People are constantly inquiring about land. We are sleepy no more.” — San Patricio County Judge David Krebs14 COASTAL BEND ECONOMIC DEVELOPMENT GUIDEmobile home parks are going up. The county builds about 150 homes a year, but we need more. We have to find the builders to put up some housing. Water is a big issue too, with all the plants coming in. Some use 7 to 10 million gallons of water a day. We need to increase our capacity. We are looking at desalination. The whole Coastal Bend needs this too. How are hurricane recovery efforts progressing in the county?KREBS: The east end of the county around Aransas Pass sustained substantial damage. The stand-up water tower around Aransas Pass was blown over. I was mayor of Portland at the time, but Portland did not have any major damage. The county on the east end is about 80 percent back to what it was. FEMA is trying to come through. We are Texans and we are not giving up. What are your major industries?KREBS: We have a variety of major employers. We have a pipe company — TPCO America. We have a hot briquette company that turns iron into steel. We have Cheniere under construction to build an LNG plant. We have ExxonMobil. It is building an ethylene cracker plant of $9.5 billion. That will be a major company here. Another steel plant is looking at us right now. Ranching is big here as well. We are diversifying quickly. Hopefully, we can get a desalination plant here too.What is your message to business leaders considering expansion opportunities in the Coastal Bend?KREBS: San Patricio County is growing. We used to be a sleepy county. Big industries have put us on the map. People are constantly inquiring about land. We are sleepy no more. But we don’t mind it. That puts our county residents to work, and these new companies spend money here. That spills over into homebuilding, and everybody thrives. PHOTO BY CARMYN SUZORCOASTAL BEND ECONOMIC DEVELOPMENT GUIDE 15COASTAL LIFE INTERSECTWHERE BUSIN SS & hen you preside over a coastal city of 325,605 people in one of the most pleasant places on earth, some might be tempted to think that you have an easy job. But that’s not the case with Joe McComb, mayor of Corpus Christi, Texas. Growth is coming so fast to his beachfront, sub-tropical community that he must constantly navigate a whole host of issues. In the following interview, he explains how he does that.What is your economic development philosophy?MAYOR JOE MCCOMB: In Corpus Christi, we are always looking to generate economic development and bring in new people. All the fun things you have to do when you are not working can be experienced year-round, whether it’s going to the beach, fishing, hunting, biking, boating, etc. We try to provide a business-friendly environment from a city government standpoint. We want to work with businesses that want to come here, but we are not willing to give away the farm. We want our citizens to have opportunities for good jobs. We rely on the CCREDC. I serve on their board. We think we have put together some pretty inviting packages for people, and we have been pretty successful. What are your top priorities for the city this year?MCCOMB: We have been working for a long time on securing an uninterruptable water supply. We are past the study stage. We have identified at least two sites that might be workable for desalination out of the Gulf of Mexico and Corpus Christi Bay. That will yield an endless supply of water for the future. That will be significant not just for Corpus Christi and the Gulf Coast, but also for the state of Texas. Water is in high demand and in short supply. That gives us an unlimited future. By the end of the year, we will have identified these sites — one on either side of the ship channel — for both residential and industrial use. Permitting will be done, and then we will make the decision on when to build by RON STARNERCORPUS CHRISTI16 COASTAL BEND ECONOMIC DEVELOPMENT GUIDEthese plants based on supply and demand. Our water supply is very good right now. As new industry continues to move to the region, we must look at other sources. We have good water management. Our city has done remarkably well in conservation efforts. We are using less water today than we were using 15 years ago. Local companies and citizens have bought into the concept that conservation is better than finding new sources of water. We are setting a trend in Corpus Christi for water management. We are also replacing our Harbor Bridge. It will be a game changer for the profile of the city. We are going from a concrete bridge to a cable-stay bridge. The old bridge is about 40 years old. The new bridge will be better and higher. The height of the old bridge will be the bottom of the new bridge. We are also doing some additional dredging to accommodate the depth of the new ships in our ship channel and to accommodate the abundance of gas found in the Permian Basin and the Eagle Ford Shale Play in Texas. What are your city’s greatest strengths?MCCOMB: Our people. We have seen that cream rise to the top with our recovery efforts following Hurricane Harvey. Corpus Christi escaped the brunt of the storm, but in our region our Gulf Coast area really took the brunt of the storm. Our citizens stepped up to the plate and did as much as they could in the recovery efforts, starting 18 months ago. The future here is unlimited. We also have some good educational institutions — Del Mar College and TAMUCC. We are focused on the right things. We don’t major on the minors. We focus on our strengths. This is an exciting time to be here. What do you plan to do to make life even better in Corpus Christi?MCCOMB: We are making sure our water treatment facilities are brought current. We completed two elevated storage tanks and have two more on the drawing board to be ready by 2022. We are replacing a substantial number of distribution lines. We are working closely with the EPA on our wastewater treatment facilities. We are pursuing re-use of our wastewater discharge so that it can be used in some industrial applications and in some agricultural uses like golf courses and parks. We are taking advantage of that. We have implemented a very aggressive street repair and replacement program. Construction creates detours, but there will be more of that because we are trying to make them into tip-top shape.What is your city’s brand identity?MCCOMB: We have 40 miles of uninterrupted beach access on Padre and Mustang islands, and we are the oil and gas capital of Texas and maybe the United States. Our beaches go all the way from Port Aransas and Port of Corpus Christi to the longest stretch of seashore found anywhere in the U.S. There is no admission charge. It is free to the public. Many visitors come here on an annual basis — for kayaking, fishing, surfing, tanning, building sand castles, etc. We are very family-oriented. It is easy access too. Once you are in town, you can get anywhere in 30 minutes or less. In addition, we are very business-friendly. We encourage people to know they can come here and get a first-class education at every level. We have more job openings than we have people to fill them, so the job opportunities are here. You can leave your job at 5 o’clock and be out fishing or hunting by 5:30. I had the opportunity to go anywhere I wanted to, but I wanted to live in Corpus Christi because of the lifestyle here. “I had the opportunity to go anywhere I wanted to, but I wanted to live in Corpus Christi because of the lifestyle here.” — Mayor Joe McCombCOASTAL BEND ECONOMIC DEVELOPMENT GUIDE 17ueces County’s newest leader is on a mission to improve her hometown and build on its successful run of attracting investment. A lifelong resident of Nueces County, Judge Barbara Canales is not only the first woman to hold the county judge’s seat but also the first Latina to be in the position. Over the years, she’s held a number of industry and leadership positions in Coastal Bend including entrepreneur, attorney and Nueces County Commissioner for the Port of Corpus Christi. We spoke with Judge Canales about Nueces County, its many assets for businesses and her vision for the future. How would you describe the business climate in Corpus Christi region?JUDGE BARBARA CANALES:Optimistic is the right answer. I say ‘optimistic’ because the business climate is being met with investment. It’s robust in many areas and it needs a booster shot in others. I think in the arenas of energy export, midstream and petrochemical we’re doing great. And this has been a cycle that we’ve been on now for more than 24 months. So, it has Nueces County Judge Barbara Canales is optimistic about the Coastal Bend’s ability to a ract investment. by SAVANNAH KINGNUECES COUNTYNOptimisticPHOTO BY HEATHER OVERMANNext >