< Previous46 TEXAS ECONOMIC DEVELOPMENT GUIDE for the 12th year in a row. As the eighth-largest economy in the world, Texas offers boundless economic opportunity for companies of all sizes and industries, and we continue to attract corporate facility investment projects from across the country and around the globe. Economic development is a team sport in Texas, and our relationship with our local and regional economic development organizations is critical. Our winning streak can also be attributed to a number of competitive business factors that are unique to the Lone Star State. Texas is ranked as the state with the Best Business Climate in the nation, the second- largest workforce in the nation — a productive, diverse and highly skilled talent pool. Combined with no corporate or personal income tax, a reasonable regulatory environment, and a pro-growth mindset with an exceptional quality of life, Texas has what companies need to be successful. When businesses succeed, all Texans succeed. Foreign direct investment has a lot to do with Texas’s track record of best-in-nation accomplishment. How does Texas consistently beat out other states and countries to win some of the most prized FDI projects on the planet? CRUZ: Foreign direct investment (FDI) is a major driver of economic growth in our state. In fact, Texas has been the No. 1 destination in the U.S. for FDI capital investment over the last two decades. Major investments such as Samsung’s $17 billion semiconductor fabrication plant in Taylor, GlobalWafers’ multi- billion-dollar silicon epitaxy plant in Sherman, and JCB’s new construction equipment manufacturing facility in San Antonio are just a few examples of transformational FDI projects that have recently come to Texas. Global brands are attracted to Texas thanks to our central geographic location, robust infrastructure networks and easy access to global markets via land, air and sea, not University of Texas in Austin, where Adriana Cruz received her degree. Photo: Getty ImagesTEXAS ECONOMIC DEVELOPMENT GUIDE 47 to mention the best workforce in the nation. What lessons did Texas learn from the deep freeze impacts of a few years ago, and how has Texas adapted since then? CRUZ: Texas is focused on ensuring businesses have the resources they need to stay in operation through any weather event, and we are constantly working to prepare the state’s electric grid for the future. During the 87th Legislative Session, the Texas Legislature passed and the Governor signed into law important legislation to help lessen the impact of natural disasters on the power grid. Senate Bill 3 enhances the reliability and resilience of the electric grid. This law requires electric companies and gas facilities to weatherize their facilities, allowing the continuation of power production during extreme weather events; creates the Texas Electric Supply Chain Security and Mapping Committee to map the state’s electric supply chain; directs the Public Utility Commission of Texas to take measures necessary to ensure the reliability and affordability of the grid; establishes the Texas Energy Reliability Council to improve communication between industry and state agencies; and implements a state power outage alert system. Additionally, House Bill 3648 strengthens the Texas power system by helping ensure that critical natural gas facilities maintain electric service during energy emergencies. Since Governor Abbott signed these bipartisan laws, no Texan has lost power because of the state grid. In the 88th Legislative Session, Texas voters approved a constitutional amendment creating the Texas Energy Fund which allocates up to $10 billion primarily dedicated to the construction or expansion of dispatchable-reliable energy generation. These measures help strengthen the reliability and resiliency of the Texas grid to keep our residents safe and keep businesses open throughout extreme weather events. What role will renewable energy play in the future of Texas’ economy? CRUZ: Since the discovery of the Spindletop oilfield in 1901, Texas has been a global leader in energy production. Texas is the largest energy-producing state in the nation and is recognized as the energy capital of the world — for both renewable and traditional sources. Renewables, fossil fuels and alternative sources all play a key role in the state’s energy sector. Texas is the nation’s leading producer of oil, gas and wind-powered generation and now utility-scale solar. We are also leading the way in new technologies such as hydrogen, carbon capture, biomass and small modular reactors. This is thanks in part to the state’s unique geography, available space, abundant natural resources, robust transportation systems and highly skilled labor force. Our all-of-the-above energy approach has led to continued growth across all of Texas’ energy sectors. This strategy is important not only in fueling our state’s economy, but also in helping our nation achieve energy independence. How are you managing the rapid growth of data centers across the state? CRUZ: Texas is a popular location for new and expanded data centers. In fact, Cushman & Wakefield’s 2024 Global Data Center Market Comparison ranked Dallas-Fort Worth No. 4 among established data center markets in the world. Here in Texas, we are focused on ensuring “ Texas is home to 31 official ports of entry that serve as gateways to global trade. Each port, whether an airport, land port, or seaport, serves domestic and international economic activities across multiple industries. ” — Adriana Cruz, Executive Director, EDTour critical infrastructure can support the growth of the data center industry as AI and other cloud-based technologies continue to drive our online lifestyles. Texas continues to attract these high-tech operations because of our location and our robust infrastructure, as well as a low incidence of significant weather events, topography, availability of tech talent, and ease of travel to both coasts. We are preparing for significant growth in the industry over the next decades across the state. What role do the ports play in Texas’ economy? CRUZ: Ports are a major driver of our booming economy and critical infrastructure for continued economic growth. In fact, our ports play a significant role to help Texas remain the No. 1 exporting state in the nation for the last 22 years in a row. Texas is home to 31 official ports of entry that serve as gateways to global trade. Each port, whether an airport, land port or seaport, serves domestic and international economic activities across multiple industries. The Lone Star State is home to the No. 1 port in the U.S. for waterborne foreign trade — the Port of Houston — and the No. 1 inland port along the U.S.-Mexico border — Port Laredo. Texas ports play a distinctive role in the state’s robust transportation network and bolster state and local economies. The Texas Medical Center is hailed as a model for life sciences expansion across the country. What’s next for the Texas Medical Center and the rest of your state in life sciences growth? CRUZ: Texas is one of the country’s leading hubs for biotechnology and life sciences. This is thanks to our world-class institutions, including the Texas Medical Center (TMC), in addition to our highly skilled talent and focus on innovation. TMC in Houston is the largest medical complex in the world and conducts more clinical trials than any other single site in the world. Already a research mega-site, TMC is partnering with three state universities to develop a state- of-the-art research collaborative campus called TMC3, which will help keep Texas on the cutting edge of discovery and innovation in medicine. TMC celebrated the opening of the TMC3 Collaborative Building and the launch of Helix Park in 2023 — a new campus fully dedicated to streamlining the commercialization of life-changing innovations in medicine and technologies. Texas is home to more than 6,000 life science and research firms and more than 105,000 workers in related fields. In addition to TMC, Texas is a national leader in cancer research with the work done at the Cancer Prevention Research Institute of Texas (CPRIT), the second-largest cancer research and prevention program in the world according to CPRIT. Dallas was selected last year as one of three national hubs for the Advanced Research Projects Agency Port of Houston Photo courtesy of Port of Houston50 TEXAS ECONOMIC DEVELOPMENT GUIDE for Health (ARPA-H), a new federal agency pursuing game- changing breakthroughs in science and medicine. For decades, Texas has been an epicenter for groundbreaking medical research, and thanks to world-class institutions across the state, we will continue to build the future of biotech, life sciences and medicine here in Texas. You’re hosting a World Cup semifinal at AT&T Stadium in Arlington in 2026. What does this mean for your state? CRUZ: We are so grateful and excited to have the opportunity to host the World Cup semifinal in Arlington. The World Cup is a major international sporting event, which we expect will bring an unprecedented number of visitors to North Texas with an expected economic impact of more than $1 billion. In addition to hosting the semifinal, Arlington will host a total of nine games, with Houston hosting seven games. Overall, 16 matches will be held in Texas — the most of any state. The Texas Rangers won the World Series last year, and the Texas Longhorns made the College Football Playoffs. How has this success helped your state? CRUZ: As a UT alumni, I am partial to our Texas Longhorns (Hook ’Em!); however, as Texans we are proud of all our Texas sports teams and cheer them on for continued success. When a team like the Texas Rangers makes history — winning their first ever World Series title — it fills all Texans with a sense of pride. Texas as a whole also wins as it helps put the Lone Star State in a national and global spotlight. What is Texas’ ace in the hole when it comes to corporate recruiting? CRUZ: Texas does economic development like no other state in the nation because we are like no other state in the nation. Our approach is a collaborative one — economic development is a team sport in Texas. There are several other advantages that help us to be successful in corporate recruitment. The people of Texas are our greatest asset, and one of the key reasons companies choose to come to Texas. With the largest population growth in the U.S. for the past 18 years in a row, Texas continues to be a talent magnet that offers a job-ready workforce across every region of the state. Texas is younger and growing faster than the nation as a whole. Not to mention, we are the “stickiest” state, meaning 82% of people born in Texas choose to stay here, far more than any other state. Thanks to an exceptional quality of life and comparatively lower cost of living, Texas continues to be a top destination for people relocating from other states. It’s clear that Texas is not only the best place for companies to find the talent to meet all their needs, but Texas is the best place for residents to live, work and raise a family. “ With the largest population growth in the U.S. for the past 18 years in a row, Texas continues to be a talent magnet thatoffers a job-ready workforce across every region of the state. ” — Adriana Cruz, Executive Director, EDT52 TEXAS ECONOMIC DEVELOPMENT GUIDE INVESTMENT PROFILE: PORTLAND, TEXAS I nnovative mixed- use developments are transforming Portland, Texas, from a sleepy small town into a destination of choice for expanding employers and working families. Known primarily as a Coastal Bend bedroom community in the Corpus Christi metro area of South Texas, this rising city of 23,000 people on the Gulf of Mexico is experiencing its day in the sun thanks to a bevy of investors who believe in Portland’s potential. No one is more bullish on Portland than McLeod Cobb Investments, which is developing a $100 million retail project anchored by a new Target store in the city. Called Oliver’s Way, the shopping center will feature the only new Target to open in Texas this year, along with national chains Chipotle, Jack in the Box, Raising Cane’s, Five Guys, Aspen Dental and Wells Fargo. The 128,000-sq.-ft. Target is slated to open this summer. “We have two projects in Portland,” says Michael McLeod, partner and principal with McLeod Cobb. “We have a smaller project that we purchased in Portland seven years ago. It had a Kmart. We redeveloped that into a Chick- fil-A and shopping center. The new Target is part of a larger 45-acre site that we are developing on the highway into Corpus Christi.” McLeod says he’s banking on Portland for several reasons: “If you want a good place for your employees to live, it’s Portland,” he says. “It is a very well-run city. It’s safe, it has great schools, and there are community events happening all the time. In fact, a new leisure district is being developed that will attract even more visitors.” Called 5th and Elm, the new entertainment venue will feature a restaurant, a stage with capacity for 2,500 attendees, space for gatherings, and other fun elements. The City of Portland broke ground on 5th and Elm in March. ‘Building Community & Raising Families’ “When you look at how Portland has grown, we are now the second largest city in the Coastal Bend,” says Portland City Manager Randy Wright. “From 2010 to 2020, we grew by 35% in population. That was largely due to the addition of $55 billion in industrial development within a mile of Portland associated with the Port of Corpus Christi. This industrial growth drives our economy.” Through it all, says Wright, the character of Portland has not changed. “Portland has remained attractive for families buying homes,” he says. “We spend much of our time at the city trying to by RON STARNER Investors Find a Hidden Gem in Portland, Texasdetermine what our citizens want, and then we work to meet those needs and wants. We have many things that few communities our size have.” That list of amenities includes a youth sports complex that annually hosts hundreds of tournaments and other athletic events. “Sports tourism is a big economic driver for us,” Wright says. “We host over 80,000 kids who come here annually to compete in various activities on our sports fields. We have all turf facilities.” A town of 22,933 residents with a median age of 37.9, Portland forms a vital cog in the 450,000-person region known as the Coastal Bend. “Portland has historically been a bedroom community to Corpus Christi,” says Wright. “It takes about 10 minutes to drive from Main Street, Portland to downtown Corpus Christi. Our tagline is ‘Building Community and Raising Families.’ That is essentially what we do every day.” With 3,000 residential lots in various stages of development, the city is poised to experience another growth boom, says Mayor Cathy Skurow. “We have always had a strategic plan for growth; and we take community input very seriously,” she says. “We have good relationships with the industries in the community, and they recognize the value of being a good neighbor.” Skurow says Portland thrives because “people want to live in Portland. We have an outstanding school district. We are very safe, and our neighborhoods are walkable. Some are within walking distance of the beach; and we have beautiful parks.” World-Class Health Care for Kids Access to world-class health care is another draw. Driscoll Children’s Hospital, part of Driscoll Health System, provides one of the leading pediatric centers in the country. Located in Corpus Christi, Driscoll employs many nurses and physicians who choose to live and raise their families in Portland. Growth plans include a comprehensive health care campus in Portland. “We opened our doors in 1953. We employ around 100 people in the Portland area,” says Eric Hamon, president and CEO of Driscoll. “Our hospital is located in Corpus Christi, right across the Harbor Bridge from Portland. More than 120,000 children are served each year by Driscoll across the geographic footprint of 31 counties in South Texas. We have the ability to recruit top physicians from all over the country. Our chief medical officer was a doctor living in Arkansas. We recruited him to Driscoll a couple of months ago. He left Little Rock and moved to Portland.” Parents like knowing that they don’t have to drive to Houston or San Antonio to see a specialist, says Hamon. “It’s rare to have a stand- alone children’s hospital outside of a metro area of 1.5 million people. We were the first to open an emergency room for kids. We are opening new clinics, and we are growing.” Signs of growth abound in Portland. Its average income has grown 9% annually to $105,000. Portland is now the largest city and largest retail hub in San Patricio County, which has 71,233 people. And when you include the county, more than 6,000 new lots are now available for housing. With 5,000 new permanent jobs slated to be filled in the next few years at area industrial employers, the sky’s the limit for Portland, says the city manager, who adds, “For a site selector looking at us, Portland is on a growth slope going up and that will continue for the next seven to 12 years.” TEXAS ECONOMIC DEVELOPMENT GUIDE 53 THIS INVESTMENT PROFILE WAS PREPARED UNDER THE AUSPICES OF THE CITY OF PORTLAND. FOR MORE INFORMATION, CONTACT ASSISTANT CITY MANAGER KATHLEEN WEISENBERGER AT 361-777-4517 OR BY EMAIL AT KATHLEEN.WEISENBERGER@PORTLANDTX.GOV. “ We have always had a strategic plan for growth; and we take community input very seriously. ” — Portland Mayor Cathy Skurow Portland got its name from a pioneer settler who traveled to the area from Portland, Maine, in 1845. He won a coin flip that gave him naming rights to the city. Otherwise, it would have been called Boston. Clara Driscoll founded Driscoll Children’s Hospital with a $3.5 million gift in 1945. It was not her first act of noble generosity. In 1905, she saved the Alamo in San Antonio from being torn down and turned into a hotel. She bought it, and then sold it back for $10,000 less than she paid for it, on the condition that it always be preserved. Bayside Park, tucked into the sand dunes of the Coastal Bend shoreline, is a popular beachside attraction for families in Portland. Portland has been rated as a top 10 location in the U.S. for kiteboarding.54 TEXAS ECONOMIC DEVELOPMENT GUIDE T exas is taking the world by storm. Home to the eighth-largest economy in the world, this singular state has built an envied economic environment. Business is booming, jobs are multiplying by the month and innovation is around every corner. As the state’s dominance on the global stage counties to rise, those outside the U.S. are certainly taking notice. With 34 foreign trade zones, Texas leads the nation in global exports, amassing $444 billion in goods in 2023. Mexico, Canada, The Netherlands, China and South Korea are listed among its top export locations. The state is the top destination in the U.S. for Foreign Direct Investments over the last 20 years. Since 2015, Texas has attracted nearly 1,300 new FDI projects, totaling more than $97 billion in capital investment and creating over 110,000 new jobs. The continued interest from international investors has inspired Texas leadership to take their economic development agenda on the road, giving countries across the globe an opportunity to reap the benefits of Texas’ thriving economy. Economic development missions expand Texas’ outreach to every corner of the world. by LINDSAY LOPP MARKETING TEXAS TO THE WORLD Texas Goes Global During an economic development mission to India in January, Governor Abbott and the Texas delegation toured the A.M. Naik School (Naik School), a unique educational experience for pre-school through middle- school aged children focused on preparing students for the future demands of our changing world. Photo courtesy of The Office of Governor Greg AbbottTEXAS ECONOMIC DEVELOPMENT GUIDE 55 In July 2023, Texas First Lady Cecilia Abbott and Secretary of State Jane Nelson joined with Adriana Cruz and Aaron Demerson as they embarked on an economic development mission organized by the Texas Economic Development & Tourism Office and the Texas Economic Development Corporation to three countries in Western Europe. Germany The first stop of the tour, Stuttgart, Baden-Württemberg, Germany, possesses many unique parallels to Texas. When First Lady Abbott and Secretary Nelson met with Baden- Württemberg Minister of Economic Affairs, Labor, and Tourism Dr. Nicole Hoffmeister-Kraut, the Texas delegation noted the similarities between their states, highlighting how both are home to robust automotive and advanced manufacturing hubs and serve as economic powerhouses within their respective countries. During this visit, the delegation also met with executives from Mercedes-Benz at the company’s headquarters, Stuttgart- Untertürkheim. They discussed the automaker’s presence in Grapevine and Forth Worth, Texas, as well as possibilities for future collaboration. Among all other nations, German companies account for the second-most foreign direct investment projects in Texas. More than 140 projects, totaling $9.4 billion, have been announced over the last decade. In 2022, Texas’ total trade with Germany totaled $17.3 billion, making it the state’s 13th-largest total trade partner. The United Kingdom During the second stop, the delegation met with various government officials and business leaders in London, including three United Kingdom-based companies with U.S. headquarters in Houston: bp, Octopus Energy and Drax, the United Kingdom’s largest renewable power company. First Lady Abbott, Secretary Nelson and Texas Economic Development Corporation Board of Directors Vice Chairman Arun Agarwal attended the Prime Minister’s Questions at the Commons Chamber and joined several members of Parliament for a lunch hosted by the British American Parliamentary Group, an interparliamentary group for both houses to promote closer relations and understanding with the United States and its leading political figures. Companies from the United Kingdom represented the largest portion of foreign direct investment projects in Texas. Over the last decades, nearly 330 projects have been announced, investing $8.6 billion and creating 18,200 jobs. France For the last leg of the July 2023 tour, Paris, France, the delegation was joined by Governor Abbott. The Texas delegation first attended the Bastille Day Military Parade alongside Consul General of France in Houston Valérie Baraban and Honorary Consul General of France in Dallas the Honorable Jeanne Phillips. During the celebrations, they met with French President Emmanuel Macron and discussed Texas’s economic strengths. Following the festivities, the Governor and the French Minister for Foreign Trade, Economic Attractiveness and Foreign Nationals Abroad Olivier Becht signed an economic development Statement of Intent. “Collaborating with our economic partners around the globe will ensure the Texas economy continues to flourish,” said Governor Abbott. “By signing this statement of intent, it will encourage foreign business investment, promote economic development projects, and increase trade opportunities between Texas and France. Forging strong economic bonds with reliable partners is more important now than ever. Texas is proud to have that strong “ Collaborating with our economic partners around the globe will ensure the Texas economy continues to fl ourish. ” — Governor Greg AbbottNext >