Ordinance No. 15,814ORDWANCE NO. 15,814
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, ADOPTING THE CITY OF BAYTOWN'S ECONOMIC PROSPERITY
ROADMAP; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby adopts the City
of Baytown's Economic Prosperity Roadmap. A copy of the Baytown Economic Prosperity
Roadmap is attached hereto as Exhibit "A" and incorporated herein for all intents and purposes.
Section 2: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ, and PASSED by the affirmative vote of the City Council of the
City of Baytown this the 23rd day of May, 2024.
NDON CAPET[LLO, ayor
APPROVED AS
5
1
D, City Attorney
R: Vance Hinds ordinances'. 2024 2024 05 230rdinance Adopting Baytown Economic Prosperity Roadmap docx
Economic Prosperity Roadmap
EACH I BIT "A"
MYM
ECONOMIC PROSPERITY ROADM P............................................................................................
Priority Projects, Programs and Policies..........................................................................................5
Implementation ................. ............ ............................................................................ ............. .........,�3
Asset -Based Economic Positioning... ............... ..................... ...... —.-- ....................................... —
10
Baytown's Assets and Opportunities...............................................................................................11
Bayton's Challenges............................................................. ......................................................14
Current Tools, Programs and Capacities ..........................................................................................16
Target Industry and Lahorforce Analysis............................................................................. .....
17
TheRetail Landscape................................................................................................................
20
Programs................................................................................................. ................fig
Projects:........ ................................................. ....................................................... -..................
37
Policies.....................................................................................................................................46
Engagement..................................................................................................................... ......
4
VI ION ........................................................ „ .......... , ...........,...,....,...,.............................•.....
54
Goals.......................................................................................................................... ...........64
Baytown, TX
Economic Prosperity Roadmap
BAYTOWN
ECONOMIC PROSPERITY ROADMAP
Contents:
Executive Summary
Economic Development Goals
Priority Projects, Programs and Policies
Introduction
Asset -Based Economic Positioning
Part 1: Baytown's Economic Context
Baytown's Assets and Opportunities
Baytown's Challenges
Current Tools, Programs and Capacities
Target Industry and Laborforce Analysis
The Retail Landscape
Part 2: Vision and Goals
Part 3: Priority Programs, Projects and Policies
Programs:
Projects:
Policies:
Part 4: Implementation
Appendix
Engagement
Baytown, TX 2
TX - Economic Deve
St. Plan > Executive Sum
1
Economic Prosperity Roadmap
TOWN
S
The City of Baytown occupies a Unique place in the economic landscape of Greater Houston and
the nation. The city is home to major legacy facilities operated by Fortune 100 companies such
as ExxonMobil and Chevron among others, that place it at the very heart of the nation's evolving
petrochemical industry. The city also sits astride the 4th busiest port and 5t" largest Foreign Trade
Zone (FTZ) in the US which presents major opportunities for logistics and global supply -chain
operations including value-added manufacturing. Finally, the city is located within one of the most
vibrant and rapidly diversifying urban economies in the entire U.S. (including rapidly growing
medical, technology, aerospace and manufacturing sectors) and occupies a central place in the
region's emerging "Metro East" sub -region.
Baytown, TX 3
I- .— - --- ___Nr=zr�__
Economic Development Goals
Economic Prosperity Roadmap
All of these factors present major opportunities
for the city to participate in many of the
emerging economic trends that have
accelerated in the post-COVID era. Maximizing
these opportunities will require a high level of
inter -regional coordination, large doses of
patience and persistence, and strong
engagement with the city's large corporations.
It will also require that the city expand its
capacity to do economic development through
new staffing and the development of new or
expanded funding options. Perhaps most
importantly, the City must ground its economic
aspirations in its special set of place -based
assets and avoid the often ill-fitting copy -cat
strategies and "silver bullet" projects that are
so prevalent in the economic development
arena.
The following goals are an amalgam of those from the City's
2022 Comprehensive Plan* along with those developed by a special
project working group convened specifically for this project.
—� Diversify the local economy to include more professional and
technology jobs.
Create stronger small business and workforce development
support systems.
Develop wealth -creation programs targeted to existing, low-income city residents.
—� Broaden and deepen the city's retail offerings.
Improve community attractiveness and authenticity.*
Engage in regional partnerships.*
—► Redevelop and revitalize vacant and blighted sections of the City.*
Baytown, TX 4
a
S
Priority Projects, Programs and Policies
-Pr M Ow
Expaninded 380 •
Economic Prosperity Roadmap
Chapter 380 of the Texas Local Government Code confers broad latitude to municipalities to provide
grants and loans in support of economic development projects. Wider and deeper use of this tool to
potentially include redirection of property taxes beyond the state mandated 10-year limit on standard tax
abatements should be used, in conjunction with other City programs, to close financial feasibility gaps
facing redevelopment projects.
Currently, the city's main "by -right" incentive includes a combination of permit fee waivers and five years
of stepped -down tax rebates in each of its two Revitalization Incentives Zones (RIZ). Adopting a two -
tiered RIZ structure whereby projects exceeding $2.5 million in total project costs (including site
acquisition) would be eligible for up to the state maximum of 10 years of property tax abatement, would
make the City far more attractive to outside investors.
Baytown currently does not have an intermediate -level, cash up -front, incentive program to address the
financing needs of projects exceeding $1 million. An RLF fund would help fill the intermediate needs of
such projects that cannot be fully funded through equity, grants or conventional debt alone. Such a
program would position borrowers to leverage larger conventional loans and help bridge feasibility gaps
while allowing the city to recapture and recycle a portion of its limited incentives resources. It could also
be used to fund the working capital needs of small businesses — an area where the city currently lacks
any programming support.
Baytown, TX 5
Economic Prosperity Roadmap
To be successful, Baytown cannot rely solely on passive incentive tools to push its redevelopment
agenda. Instead, it will need to build the capacity to take a more proactive, interventionist role in making
redevelopment happen. This means operationalizing an entity that can function as a de -facto real estate
agency or "developer in the public interest". Such an entity must be resourced and empowered to acquire
and assemble marginal real estate; conduct selective predevelopment work, and then shepherd the
properties into the hands of vetted developers to build contractually proscribed projects. The entity would
work directly under the aegis of the city; have a board that is accountable to the City Council.
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The Downtown Arts District is the most authentically urban and historic part of the city. Its revival will be
key in helping attract new companies and talent to the city. The current lack of private investment activity
Downtown basically has to do with three things: inadequate incentives to overcome financial feasibility
gaps, a lack of assembled parcels to attract outside investors and a lack of knowledge about the
redevelopment opportunities present in the district. The new and expanded incentives mentioned earlier
are meant to address the first of these whereas the primary role for a redevelopment agency is to attack
the latter two and, in so doing, advance the Baytown's Arts District Blueprint plan.
Baytown, TX
OBAYTO
S
Economic Prosperity Roadmap
ExxonMobil's Blue Hydrogen project along with Metro Houston s recent designation as a "Hydrogen Hub"
(and the billions of Federal dollars at -stake) position
Baytown to create a specialty, manufacturing -focused
innovation environment unique to the region. This
opportunity is enhanced by the city's port location and
Foreign Trade Zone availability, and the growing number
of "Clean Tech" industries already present in the region.
Offering 99% power reliability and grid independence,
such a project has the potential to position the city for a
whole new generation of manufacturing industries and
quality jobs. It also holds the prospect of helping reshape
Baytown's image and brand around something authentic
to its industrial legacy.
Current city practice has been to negotiate IDAs and 212 Agreements on mostly an ad -hoc project -by -
project basis. This practice adds a level of uncertainty and randomness into the incentives process that
can be discouraging to new businesses looking to relocate into the city or its ETJ. The city should work
with the Baytown -West Chambers County Economic Development Foundation (EDF) to develop a
weighted schedule of incentives that are skewed to favored industries and tied to a point system that
score projects based on quantifiable measures such as number of full time jobs, average wages and the
verifiable number of local hires. A mirrored, dual use scoring system for projects located in both the city
and ETJ would add fairness and predictability to the process. A truly effective one would calculate the
dollar value worth of incentives or 212 payments in inverse fashion depending on whether the project
was located in the city limits or in the ETJ respectively.
Baytown, TX
Economic Prosperity Roadmap
Implementation
Implementing the main recommendations of this strategy plan involve a series of support -building steps
intended to enlist influential advocates and secure potential funding sources, and to organize for the
work ahead. A main recommendation of this project --as well as the city's earlier comprehensive plan --
is for the city to engage in more regional partnerships to advance projects of regional import such as the
innovation power park mentioned here, as well as other regional projects that have a strong bearing on
the city's future such as the widening of 1-10 bridge and the dredging of the Houston Ship Channel.
Many of the other projects and programs will involve building internal staff capacities and defining roles
both at a departmental level, but also in relation to other city departments and other local economic
development actors. We recommend that going forward, the city focus its economic development efforts
mainly in the areas of small business development and redevelopment, and continue to lean heavily on
the EDF to lead on corporate attraction, workforce initiatives and other direct "industry -facing" activities.
Baytown, TX
TX - Economic Development St. Plan > Introduction
Economic Prosperity Roadmap
PAYTOWN
S
The City of Baytown occupies a unique place in the economic landscape of Greater Houston and the
nation. The city is home to major legacy facilities operated by Fortune 100 companies such as
ExxonMobil and Chevron among others, that place it at the very heart of the nation's evolving
petrochemical industry. These companies have etched lasting marks on the city and have provided it
with good paying jobs and a muscular industrial infrastructure - an infrastructure that is very much part of
the nation's critical energy infrastructure. As the evolution of the energy industry accelerates in the
coming years, Baytown will be at the cusp of major technological changes affecting almost all aspects of
society and the economy. This evolution will bring with it opportunities throughout the Houston area —
and Baytown in particular — to capitalize on all the innovation and follow-on investment that comes with
Houston's reassertion as the energy capital of the world.
The city also sits astride the 411, busiest port and 5th largest Foreign Trade Zone (FTZ) in the United
States, which presents major opportunities for logistics and global supply -chain operations including
value-added manufacturing. Finally, the city is located within one of the most vibrant and rapidly
diversifying urban economies in the entire United States (including rapidly growing medical, technology,
aerospace and manufacturing sectors) and occupies a central place in the region's emerging "Metro
East" sub -region. Making the most of these opportunities will require Baytown to assert itself on the
regional stage and maneuver strategically to maximize its advantages. It also must capitalize on the
many high income workers who commute into Baytown by expanding its variety of housing and
recreation options including those that capitalize on the City's waterfront location.
Baytown, TX g
Asset -Based Economic Positioning
All of these factors present major opportunities
for the city to participate in many of the
emerging economic trends that have
accelerated in the post-COVID era. These
include: the
on -shoring or
""reshoring" of
manufacturing
the
reshuffling of
supply -chains
caused by
international
frictions and the widening of the Panama
Canal; and the move to decarbonize the
nation's manufacturing, transportation and
energy systems. Few cities in the nation sit at
the nexus of so many global economic shifts as
does the City of Baytown.
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Economic Prosperity Roadmap
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Baytown has an extremely robust multi -modal
transportation system, and sits within one of the most
vibrant metro economies in the entire U.S.
Maximizing these opportunities however will
require more than go -it -alone efforts focused on "one-off' projects. They will instead require a high level
of inter -regional coordination, large doses of patience and persistence, and strong engagement with the
city's large corporations to execute projects that will deliver lasting and
compounding results: Particularly those that hold the promise of creating
good jobs and improving the life chances of the city's low-income
residents. Realizing these opportunities may require the city to expand
its capacity to do economic development through new staffing and the
exploration of new or expanded funding options. it will also involve
maintaining a circumspect, "eyes -wide-open" view of the city's economic
role within the region and the unique strengths that it has to offer.
Baytown, TX 10
Economic Prosperity Roadmap
BAYTOWN
town's Economic Context
Baytown's Assets and Opportunities
At the regional level, the City of Baytown is within easy commuting distance of metro Houston's many job
centers and has an opportunity --- especially with the impending completion of the Grand Parkway --- to
position itself as a stronger eastern node (and Metro gateway) within this constellation. The city also
offers some of the most affordable housing within the region and has an emerging eco-tourism and
recreation economy recently enhanced by the new Hyatt Hotel and the T36 golf course.
Baytown, TX 11
Economic Prosperity Roadmap
BAYTONN
In terms of local innovation assets, Baytown is home to ExxonMobil-Chemical Group's Technology and
Engineering Complex including its global polymers
research center. ExxonMobil's Olefins Plant will stage the
company's potentially revolutionary Blue Hydrogen
project. This will be the first large-scale hydrogen power
project in the U.S. combining hydrogen production along
with carbon capture, making it a potentially paradigm
changing clean energy demonstration project.
Beyond the bragging rights that come with hosting this
trail -blazing facility, nearby industries may benefit from the
clean and reliable excess power that it promises to
generate. This captive energy source could provide an
opportunity for follow-on eco-industrial, new materials and
precision manufacturing development; particularly of the
type that requires highly reliable, redundant and
conditioned power supplies. This type of power
infrastructure offers the best possible insurance against
crippling power outages and major business interruption
losses that come with it.
Baytown is well positioned to establish itself as
the main job center within Greater Houston's
"Metro -East" Subregion.
Baytown, TX 1
Economic Prosperity Roadmap
ExxonMobil's Blue Hydrogen Project: What Could It Mean?
Hydrogen has been long considered to be the "Holy Grail" in moving the world toward clean and
plentiful sources of renewable energy. The Blue Hydrogen project is conceived as a "force
multiplier" demonstration project that will use natural gas to generate even greater amounts of
hydrogen to power ExxonMobil's Olefins Plant. Excess hydrogen power will reportedly be
available for use by nearby industry. This surplus power could be a major feed source for a new
distributed energy "power
park" in or near Baytown.
Potentially employing a
family of complementary
technologies such as solar,
co -generation (combined
heat and power), battery
banks and micro -grids, such
a park would be a first of its
kind project in Metro
Houston and be a potential beacon for other innovative energy industries such as those in the EV
battery supply chain. By offering both grid -connected and "on -site" power -supply redundancy, the
park can offer what other industrial complexes cannot; namely, a much higher level of protection
against the region's major storm risks and the state's notoriously shaky power grid. Add to this
the incentives that come with Federal Foreign Trade Zone status, such a park has the potential to
be a major innovation hub and job generator for the Metro East sub -region. It could also enhance
the region's positioning for green technology jobs and cold storage facilities.
This opportunity is made all the more real by Metro Houston's designation as a "Hydrogen Hub"
as part of the recent Federal Infrastructure Bill. The bill earmarks $7 billion of Federal funds for
hydrogen power -related demonstration projects and applications. Houston is just one of seven
such hubs in the U.S.
Additional city assets include its many natural areas including miles of waterfront property as well as its
recreational resources including the Baytown Nature Center, the Wayne Gray Sports Complex, the
bayfront Hyatt Hotel and Conference Center, and the T36 golf course. Project Vector and the San
Jacinto Marketplace both promise to be further draws to the area and major place -quality assets. Adding
to these are the city's major education and healthcare facilities which enhance the city's position as both
a solidly metro -connected yet self-contained, "full stack" community.
Baytown, TX 13
Economic Prosperity Roadmap
Baytown's Challenges
A major issue facing the city is overcoming the dominating physical presence of the area's petrochemical
industry and the image that it cast on all communities along the Houston Ship Channel. Aside from what
non-residents may think about Baytown, this presence . ,
has seemingly (and more worryingly) imbued locals with ;
the attitude that nice things don't happen in the city. This
psychology is reflected in the city's relative lack of
attention, until recently, to demand (or expect) higher -
quality development or make — with the exception of the }
Downtown Arts District and the new gateway f-
monuments -- major public investments in civic
beautification.
This mindset seems to have created something of a self- i
fulfilling prophecy whereby low expectations have
resulted in unremarkable development in a perpetual,
reinforcing cycle. This "stasis" condition may be
preventing the city from capturing more of the wealth
and spending power generated by the city's major corporations whose employees generally chose not to
reside in Baytown. It is also a drag on the city's ability to attract other talent into the community including
medical professionals. It also relates to many citizens' frustrations over not having a greater breadth and
selection of shopping and dining options in the city.
Key to capturing more of this wealth must be a
concerted and sustained "move to quality" on the part of
the city. This must be reflected not only in the area of
land use controls, but also in the city's parallel
application of incentives, code enforcement and in
making continued public investments in the public
domain including critical infrastructure and public
"placemaking" amenities. These tools must be applied in
combination and in a concentrated manner to make the
desired impact.
°'NIIIIIIIII An example of this is the City's Downtown Arts District.
Although having already been the beneficiary of a
significant amount of public investment, the area still
needs an added push in terms of property maintenance
enforcement, development incentives, small business supports and additional direct public investment to
spark significant follow-on private investment. This is critically important since a revived downtown and
other healthy urban neighborhoods is key to attracting talent into the community. Also important is having
a range of housing options available in these neighborhoods for people at various stages of their lives
and careers and to help support the businesses in them.
Downtown Baytown's Arts District is a special area focus of the City's Economic Prosperity Roadmap,
the substance of which can be viewed here. (insert link)
Baytown, TX 14
Economic Prosperity Roadmap
BAYTOWN
b,fegrating the Lee College Campus and the Goose Creek waterfront into the Downtown Arts District is a major focus of the
city's Arts District Blucprinf
Elsewhere, many of the city's neighborhoods and business centers lack distinction and physical
definition. This is partly the result of the city's large physical size and its history of amalgamation of three
separate communities, that left many of the city's anchor institutions separated from one another. This
has the effect of isolating and obscuring the city's many assets and making the neighborhoods where
they're located difficult to identify or to "brand". The result is a city that lacks "legibility" and a strong
sense of physical organization.
Key to the city's placemaking efforts will be to create more special areas of distinctiveness within the city.
These areas should be accentuated with special streetscape and signage, and have a more curated
selection of land uses and building types in them. This can be achieved over time through targeted public
investments in infrastructure and streetscape, special zoning designations, the use of special incentives,
and direct public intervention in the real estate market. Besides the Downtown Arts District, other areas
worthy of special identification include the Historic West End, the area around the hospital, the bayfront
and the 1-10/Garth Road gateway.
Baytown, TX 15
Economic Prosperity Roadmap
Creating identifiable districts through the targeted use of zoning, incentives and public investments will help improve the city's
sense of place,
Current Tools, Programs and Capacities
Existing economic development programs in Baytown consist almost exclusively of real estate -based
incentives such as tax increment finance (TIRZ); sales tax redirection (via 380 Agreements); tax rebates
and permit fee waivers (city Revitalization Incentive Zone "RIZ") stepped -down over five years; and
Building Improvement Grants (BIG) of up to $80,000 per project based on funding availability. The
formation of a second city TIRZ for the Downtown area has been recently established.
The city receives substantial revenues from companies within its extra territorial
jurisdiction (ETJ) via Industrial Development Agreements (IDAs) via a payment -in -lieu
of taxes (Section 212). These agreements can also be construed as a form of incentive
depending on how rigorously they are negotiated. The city currently doesn't offer any
grants or loans for the working capital needs of small businesses such as a revolving
business loan fund or micro loan programs (although Harris County Economic
Development is currently working on establishing their own program).
Baytown, TX 16
Economic Prosperity Roadmap
Organizations or boards either directly or indirectly involved in economic development in the city include:
The Greater Houston Partnership (metro region); the Baytown -West Chambers County Economic
Development Foundation "EDF" (sub -region); Harris County — Economic Development
(County); the City of Baytown Municipal Management District (MMD); the Baytown
Redevelopment Authority (TIRZ board); and the Baytown Chamber of Commerce
4Z(Chamber). Lee College operates the city's Small Business Development Center
�� (SBDC) and also serves as the city's major workforce development provider operating
out of its Center for Community and Workforce Development.
The city's Economic Development Division is currently funded for two full-time Economic Analyst staff
positions plus an Economic Development Manager housed in the City Manager's Office.
Target Industry and Laborforce Analysis
Strategic economic development begins with an objective assessment of a community's existing asset -
base. Among other things, this asset -base consists of the companies and "economic clusters" that are
currently concentrated in or near Baytown. These concentrations represent economic specialties and
areas of competitive advantage that can be capitalized on to both expand and diversify the local
economy.
The purpose of selecting specific industry targets is to
help focus corporate marketing and recruitment efforts,
and to be more deliberate in matching companies to
regional strengths (i.e. in the areas of land, labor and
infrastructure, etc.). The objective is to grow and evolve
an existing local industry concentration to a point where
the community becomes a gravitational center for other
supporting companies and talent, particularly in
emerging industries. The goal is to increase the local tax
base and the number of high paying jobs in the
community.
In 2019, the Baytown -West Chambers County Economic � &WIN
�'
Development Foundation conducted a target industry
analysis for the greater Baytown area. Not inappropriately, the findings of that study were based primarily
on the number and type of existing employers and jobs in the Baytown area and what it portends for a
changing economy. The study did not delve into the occupational profiles and strengths of workers who
actually reside in or near Baytown. This is an important distinction due to the unusually high commuting
patterns that exist in the city and the fact that relatively few Baytown workers are also Baytown residents.
This study was updated and expanded as part of this strategic planning process, to address these latent
"resident-force"factors along with new or rapidly evolving economic opportunities particularly in the areas
of clean energy and infrastructure. A closer look at how the area's workforce development system can be
positioned to advance these economies locally was also included in the update.
The 2019 analysis identified three specific economic clusters (defined loosely as a collection of related
and inter -linked firms and their associated supply -chains and vendor networks) that were best suited for
the Baytown area based on the community's current strengths and values, the clusters' potential return -
on -investment (ostensibly based on job and tax base growth), and the clusters' global growth potential.
These clusters are shown in the table below.
Baytown, TX 17
Economic Prosperity Roadmap
TARO" CLUSTER NICHE SECTORS
Source: Avalanche Consulting, 2019
Evaluating the current composition of the area's labor -force against the most in -demand regional
occupations (both current and projected), the updated analysis revealed the following:
■ The region has a large supply of hard -to -find workers particularly in the skilled trades and
craft labor.
■ Transportation and Materials Moving is projected to be the fastest growing occupation
both within the city and in the region through 2028 followed by Food Preparation and Serving.
Installation Maintenance and Repair is the third fastest growing occupation in the city, while
Legal is the third fastest growing regionally.
■ Current occupational strengths in the Baytown area (as measured by their concentration as a
percentage of the local workforce as compared to the state as a whole) include: Production;
Architecture and Engineering; Transportation and Materials Moving; Construction and
Extraction; installation Maintenance and Repair; and Life Sciences. Most of these reflect the
city's heavy petrochemical concentration and pay significantly higher than the areas median
salary.
■ Current and projected high -wage, high -demand jobs in Baytown include: Heavy and Tractor -
Trailer Truck Drivers ($46K), General and Operations Managers ($97K), Registered Nurses
($80K), Bookkeeping and Accounting Clerks ($45K), Automotive Service Technicians and
Mechanics ($40K) and Nursing Assistants ($31 K). Most of these occupations require some
amount of post -secondary education.
■ Short-term, non -degree certificates make up a full two thirds of Lee College's matriculations
annually. Its most popular non -degree programs include: Chemical Technology, Welding
and Instrumentation Technology.
■ Construction trades, industrial maintenance, and production tech niciansloperations are
potential growth areas for Lee College but its programs in these areas, either because of
internal capacity restrictions or student demand or both, have not kept up with industry demand.
Baytown, TX 18
Economic Prosperity Roadmap
BAYTOWN
S
■ Lee College's most popular fields of study (Business Administration and Liberal Arts)
indicate a potential misalignment with critical regional industry needs. Students may benefit from
enhanced knowledge of, and exposure to, current in -demand occupations in the region. This
exposure should extend to the high school level to include classroom instruction and
opportunities for internships and apprenticeships.
■ Construction and Transportation Equipment is a special sub -set within the advanced
manufacturing (fabricated metals) niche sector that Baytown is particularly well -suited for given
its large supply of skilled trades workers; its existing sector strengths in new materials and
transportation and logistics; and the nation's renewed emphasis on new infrastructure
investment and energy transition.
A Sidenote on Logistics
Although it is acknowledged that logistics and distribution are well suited to
Baytown due to the area's superior infrastructure and geographic location (and
that they Involve more than just routine fulfillment work), there is a sense among
some in the community that the city is at -risk of becoming inundated with
warehousing activities to the detriment of other employment and land use 4w0
opportunities. This wariness suggests that, going forward, the city should focus
its logistics -based business recruitment activities more on the essential, back -
end technology and professional management aspects of the logistics field than in additional
fulfillment operations themselves. This would mean more direct recruitment of third -party logistics
(3PL) headquarters facilities, supply -chain management application developers, transportation
equipment manufacturing and service companies, and other value-added activities. It could also
involve adding a supply chain management track to Lee College's Business Administration
degree program.
This is not to suggest that the city should spurn
additional warehousing operations particularly
within the ETJ. Rather, that it use its limited
promotional and incentives capacities on
business types that aren't already so
predisposed to locate in Baytown anyway. Also,
because of the impacts to traffic, infrastructure
and other externalities that logistics operations
often generate, they should be expected to
compensate the city via IDA agreements (e.g.
payment -in -lieu of taxes) perhaps more
generously than other facility types within larger
industry target. They should also not be
incentivized within the city limits.
Baytown, TX 19
Economic Prosperity Roadmap
The Retail Landscape
Increasing the depth and variety of Baytown's retail offerings has been frequently cited as one of the
city's top economic development goals. Although projections do show that Baytown has expansion
potential in several retail categories (see chart below), the rise of services such as Amazon Prime and
Uber Eats have radically changed the retail landscape across the U.S. and has reduced the need for
physical stores. Because of this, the old adage that "retail follows rooftops" is perhaps less true than it
used to be.
Projected Retail Demand
Sub -Sectors
Baytown 2023
(in millions)
Footwear S rS2.1M
M&W APPlianaas M +$2.2M
PersondCare Products �}SL5M
Umm & Garden •$2.6M
Wo+nan's Apparel �,, 3.OM
Home Maint. & Ramcdeiing MateriaLs *SLIM
Furribure SS gpyl
Pets �.}S3.5M
HoutokeaP&4 SupPliea
TV Video & Audio •$S.7M
Home t"nt. & Rerrrodefing Services
Food Away +SieAM
Food At Home - 42SAM
$0.0 $20.D $40.0 $60.0 $W.0 5100.0 $120.0 $140.0 SIW.0 s19O.0 5100.0
a 7073 ■ 2029
Source: ESRl, MR! Simmons
Nationally, COVID accelerated the e-commerce trend and retail's continued movement away from "bricks
and mortar" stores. With the exception of discount retailers, many name brand stores have reduced or
consolidated their regional footprints into what are deemed "Class A" retail centers typically in higher
income areas. Many restaurants meanwhile have, at least temporarily, scaled back their expansion plans
due to persistent labor shortages and rising labor costs.
Baytown, TX 20
e2
BAYTOWN
Economic Prosperity Roadmap
The recent Project Vector Feasibility Analysis notes that the Baytown retail submarket has experienced
"negative absorption" over the past year (meaning less space is being leased overall). Somewhat
paradoxically, the vacancy rate is also down but this is because of San Jacinto Mall's removal from the
overall retail inventory following its demolition. The study notes that the hotel market in Baytown is also
currently fiat but that Project Vector could stimulate new demand. An update to a separate 2021 market
study performed by Community Development Strategies (CDS) for Baytown notes that the city's retail,
office and hospitality markets are currently adequately supplied with rentable space. This implies that any
immediate additions to the city's commercial retail inventory could result in lower rents or higher
vacancies or both.
It is too early to write the final chapter on how e-commerce will impact traditional retail in the future.
Current trends indicate however that name brand retailers will continue to gravitate to newer master -
planned, mixed -use centers in Nigher income areas - the spaces they vacate being backfilled by
discount stores. The prime retailers will probably occupy less space in these new centers using them as
more or less as showrooms to help drive their online sales. Food, including grocery stores, may
increasingly be the largest retail presence in these developments. If this is true, Baytown's Project Vector
-- with new food and entertainment -based attractions in a walkable, mixed -use format - may be striking
exactly the right formula. One thing seems for certain: Traditional bricks and mortar retail, such that it
continues to exist, is still very sensitive to area demographics and the belief that most people shop
mostly where they live, not where they work or visit. This provides more impetus for the city's "move to
quality' particularly if it wants to attract more of the high income workers who work, but don't currently
live, in Baytown. For Baytown, as in most other places, the best retail strategy may indeed be a good
housing strategy. Much of this starts with making the types of changes to the city's incentives structures
and land use regulations as suggested here and, in the city's, new Unified Land Development Code
(ULDC).
Baytown, TX 21
PART 2: VISION AND GOALS
The Kendig Keast Collaborative (KKC) team working with the Economic Strategy Working
Group or "ESWG" (serving as the advisory group for this plan) came up with the following vision
statement for the city's future economy:
The City of Baytown is the economic hub of a surging Metro East region with a diverse and
dynamic economy, and robust entrepreneurial ecosystem.
Fallowing from this, a list of economic development goals were developed and ranked by the
ESWG below. These goals overlap with many of the goals and themes of the City's
Comprehensive Plan including: a focus on community attractiveness and authenticity, the need
for the City to engage in regional partnerships, encouraging redevelopment and infill, economic
diversification, and strengthening workforce development and small business support systems.
Economic Prosperity Roadmap
BAYTOWN
Goal #1
Diversify the local economy to include more professional and technology jobs.
KKC Recommended Strategies:
■ Network closely with the Greater Houston Partnership, the Houston -Galveston Area Council
and area chambers of commerce to stay apprised of new corporate attraction/expansion
opportunities.
■ Standardize the use of corporate tax incentives based on performance metrics such as: the
number of full-time equivalent jobs, average wage, payroll totals, or the amount of capital
investment (i.e. using a standarized scorecard
system).
■ Tier incentives to favor companies in the target
industries of professional services, healthcare,
green -tech, and advanced manufacturing.
■ Expand opportunities for upper -scale and luxury
housing including new market rate apartments.
■ Improve/expand placemaking efforts especially in
Downtown and the bayfront area.
• Seek to add new community amenities especially in
the recreation, youth sports, retail and "edutainmenf' spheres.
■ Work with Lee College to expand matriculations for in -demand occupations such as paralegal,
engineering, healthcare and construction management.
• Work with developers to improve/expand the supply of Class A office space.
■ Work to create a new innovation park in the 1-10 corridor focused specifically on advanced
manufacturing businesses.
Baytown, TX 23
Economic Prosperity Roadmap
BAYTOWN
Goal #2
Create a more robust small business support system.
KKC Recommended Strategies:
■ Work with Harris County Economic Development, the Lee College
Development Center (SBDC), Baker -Ripley, SCORE and other area
foundations to develop capital sources, training opportunities and a support
small business community.
■ Work with Lee College and area corporations
to operationalize a Downtown business
incubator/accelerator and one -stop shop for
small businesses. Contract with an
experienced 3rd-party operator already active
in the region such as Greentown Labs.
■ Create a small business revolving loan fund
capitalized through a city seed grant along with
state and Federal grants, corporate/foundation
contributions and pooled bank funds. Work with
funders to establish loan underwriting
guidelines and a standing loan committee.
F
Small Business
non -profits and
network for the
■ Using real estate development incentives and subsidies, work with developers and property -
owners to provide more higher -quality, turn -key commercial spaces for small businesses,
especially in Downtown.
■ Capitalize a revolving loan program for working capital loans and building improvements.
■ Pilot a tenant improvement grant/loan program specially for restaurant uses.
Baytown, TX 24
Economic Prosperity Roadmap
BAY9'OWN
Goal #3
Develop wealth -creation programs targeted to existing, low-income city residents.
KKC Recommended Strategies:
■ Develop or expand first-time homeowner and housing rehabilitation grant/loan programs using
Community Development Block Grant (CDBG) funds (e.g. down payment assistance, interest
rate buy -downs, soft second mortgage rehab loans, etc.).
■ Work with Lee College and other educational institutions to expand outreach and awareness of
in -demand jobs within the region along with related training opportunities among K-12 and high-
school students.
■ Capitalize a special business micro -loan program targeted specifically to underserved
residents.
■ Partner with Lee College, area social service agencies and non -profits to provide free financial
literacy classes through area churches and community centers.
■ Enlist area corporations to establish high school
Goose Creek Consolidated Independent
School District (CISD).
■ Work with area corporations and non -profits to
create an annual, residency -based small
business grant competition oriented specifically
to scalable, neighborhood serving businesses
located in economically distressed
neighborhoods.
■ Require that all recipients of City incentives
commit to local hiring goals for both
construction and permanent jobs.
internship programs coordinated through the
■ Work with area foundations, non -profits and
family offices to create a guaranteed college scholarship
school graduates of the Goose Creek CISD who graduate
patterned after the Kalamazoo Promise program).
program for all low-income high
with at least a B average (e.g.
■ Work with Legal Aid and area law enforcement agencies to explore the possibility of conducting
criminal record expungementlrestitution clinics for minor offenders.
■ Explore the possibility of establishing a pilot, lottery -based "baby bond" program for locally born
children of low-income families (e.g. matching savings program for college tuition).
■ (see also small business strategies above)
Baytown, TX 25
Economic Prosperity Roadmap
BAY'fOWN
'.r
Goal #4
Broaden and deepen the city's retail offerings.
KKC Recommended Strategies:
■ Create a bricks -and -mortar focused, data -heavy, web -based retail prospectus highlighting the
city's current unmet retail needs, aggregate purchasing power, development incentives and
available sites.
■ Actively prospect at state -level International Council of Shopping Centers (ICSC) events and
conferences to scout -out potential retail
recruitment opportunities. Y�
■ Work with commercial developers and
property -owners to help redevelop, rehab,
reposition their commercial properties and
construct new entertainment and food focused
mixed -use destination developments.
■ Work to improve the city's overall quality -of -
place (including Downtown) to attract much 2i1xicka
greater numbers of higher -income households
("retail follows rooftops").
■ Work to improve and expand new urban -format apartment development in select targeted
locations to expand Baytown's collective purchasing power (and corresponding retail market
potential).
■ Solicit the petrochemical companies and the hospital on establishing corporate -funded housing
down payment bonus programs for resident -workers (e.g. premised on ensuring operational
security/continuity during emergencies).
Baytown, TX 26
Economic Prosperity Roadmap
Goal #5
Improve community attractiveness and authenticity.
KKC Recommended Strategies:
• Adopt the city's new Unified Land Use Code
(ULDC).
• Implement the Downtown Arts Blueprint plan.
■ Designate and invest in additional branded
neighborhood districts.
• Continue to invest in civic beautification and
environmental clean-up efforts.
■ Hold design competition for new Downtown
gateway feature at new roundabout.
• Improve access to, and development along, the
city's waterfront locations.
Goal #6
Redevelop and revitalize vacant and blighted sections of the City.
KKC Recommended Strategies:
■ Implement the new redevelopment incentive programs recommended in this plan.
■ Establish redevelopment enterprise agency to lead redevelopment efforts.
■ Implement the Downtown Arts Blueprint plan.
Baytown, TX 27
Economic Prosperity Roadmap
Baytown, TX - Economic Development St. Plan > Priority Programs, Projects and
Policies
BAYTOWN
s
Listed below are some priorities that the Kendig Keast team believes both respond to the opportunities
and goals of the city and should be within the city's grasp to perform. We understand that the city will not
be able to do all or many of these things all at once and that a further process of prioritization may occur.
Detailed implementation frameworks (Part 4; Implementation) must also be developed. They are listed
here in menu format as part of a customized economic development toolbox.
Restructure the Economic Development Department and build staff capacity.
A first step is to redefine staff roles to align with the goals of the plan. Currently, the city's economic
development department consists of two generically defined economic development "analyst" staff
positions. KKC recommends that going forward, that these positions be more defined in scope with the
intent of building more professional specialization within the department. One of these positions should
focus on small business development and the other on redevelopment.
Depending on their qualifications, the redevelopment position should serve as either the executive
director or assistant executive director of the recommended redevelopment agency depending on the
disposition of the host entity. This person will need to have or obtain a strong working understanding of
the urban real estate development process including financial feasibility, site and developer due
diligence, marketing, gap financing tools and methods, and deal -structuring among other skills.
Economic development generalists can typically acquire this knowledge through various certification
programs offered through organizations such as: the Urban Land Institute (ULI), the International
Economic Development Council (IEDC), Grow America (formerly NDC) or the CCIM Institute.
Baytown, TX 25
Economic Prosperity Roadmap
The small business specialist should serve as an ombudsman between the business community and city
departments. The individual should have a strong grasp of business finance, marketing and management
and work primarily as a small business coach and resource -connector. Qualified candidates may come
from the ranks of academia or chambers of commerce, or from within the small business community
itself.
Programs:
The following recommendations are intended to either expand or optimize Baytown's current economic
development toolbox and practices. They include program additions addressing both redevelopment and
business development.
Chapter 380 of the Texas Local Government Code confers broad latitude to municipalities to provide
grants and loans in support of economic development projects. The City of Baytown has previously used
this tool to redirect new project -generated sales tax back to their source as a form of performance -based
incentive. The KKC team recommends wider and deeper use of this tool to potentially include redirection
of property taxes beyond the state mandated 10-year limit on standard tax abatements (e.g. a semi-TIRZ
structure freed from the strict "public use" restrictions on the use of project revenues).
This bonus incentive structure should be reserved mainly for select redevelopment projects in Downtown
and in the struggling commercial corridors feeding into it. This tool should be bundled into the city's
request for proposals (RFP) for Downtown and Downtown -adjacent city -owned properties (i.e. in -lieu of
standard RIZ) to help close the potentially very large financial feasibility gaps that these projects are
likely to face; particularly those requiring costly structured parking and specially engineered flood
protection measures. To that end, and if warranted by the financial hurdles facing a particular project (i.e.
such as the project's inability to secure full conventional financing), the City could structure the program
as an upfront interest -bearing loan that would be retired by future incremental tax revenues and backed
by a developer guarantee to make up any shortfalls. This is a not uncommon model for larger catalytic
projects in many cities involving highly creditworthy developers.
Along with TIRZ, the potency of this tool would be greatly enhanced with full participation of all taxing
bodies under a Memorandum of Understanding (MOU) stipulating the criteria under which "all in"
participation is warranted (i.e. generally within all city RIZ and Opportunity Zones (OZs) and any
additional areas deemed economically distressed under U.S Department of Treasury guidelines.)
Goals advanced: #1, #4 along
with goals of the Arts District
Blueprint
Baytown, TX 29
Economic Prosperity Roadmap
BAYTOWN
Implementation Actions:
1. Prepare a draft program brief laying out the purpose and applicability of the program
(redevelopment), eligibility criteria (RIZ and OZ locations and minimum investment thresholds
etc.) and approval/amount basis (i.e. by -right or "but -for"), and the process by which the
incentive is awarded and by whom.
2. Convene a roundtable of developers and lenders to vet the program and suggest modifications
and/or alternatives. Present the above to the City Council for their reaction and approval.
3. Modify the program description based on stakeholder feedback.
4. Seek formal City Council approval of program terms and conditions (draft resolution)
5. Prepare an MOU summarizing the above for taxing body review and approval
6. Raise developer awareness through City led requests -for -proposals.
r
At present, the city's main "by -right" incentive includes a combination of permit fee waivers and five years
of stepped -down tax rebates within its two designated RIZ areas. Although the program has been fairly
actively used, there isn't any evidence that it has been instrumental in attracting significant outside
investment. This is particularly true for larger commercial projects. We note that many resurgent cities
around the U.S., even those with a long history of urban "infill" redevelopment and stronger real estate
markets, offer significantly more aggressive tax abatements than does Baytown.
To increase Baytown's competitiveness in attracting outside investment, the KKC team recommends that
the city adopt a two -tiered Revitalization Incentive Zone (RIZ) structure whereby projects exceeding $2.5
million in total project costs (including site acquisition) be eligible for the state maximum of a flat 10 years
of 100% tax abatement on incremental tax value. This "longer and deeper' tax reimbursement program
should be available on a by -right basis based on cost verification. The city could opt to pilot this
"Enhanced RIZ" or "RIZ+" program for a 10-year period after which time the project could either be
allowed to sunset or the eligibility criteria adjusted to an as -needed ("but for") basis (i.e. as determined by
a financial gap analysis performed by a third -party financial analyst paid for by the developer but
technically under contract to the city via a funding agreement). Projects under $2.5 million would
continue to be eligible for the basic RIZ program as currently structured.
As with TIRZ and 380 Agreements, the potency of an augmented RIZ program would be enhanced by
the participation of all taxing bodies.
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Economic Prosperity Roadmap
Implementation Actions:
(see steps: 1,3,5,E and 7 above)
Currently, the city's main redevelopment tools include the aforementioned RIZ program along with its
Building Improvement Grant (BIG) program. The latter is a competitive grant that has been approved for
as much as $80,000 per project based on funding availability. Although the programs offer an attractive
and stackable combination of operating cost reduction and upfront cash infusion, they are still not likely
adequate to close the substantial financial feasibility gaps facing larger scale redevelopment projects in
Baytown. In addition, the city currently doesn't offer any grant or loan products geared specifically toward
small businesses such as for working capital or tenant improvements.
Notwithstanding the recent creation of Harris County's own small business revolving loan fund (RLF)
program, the KKC team recommends that the city capitalize its own RLF program or programs (for both
buildings and businesses) to round -out its program offerings. Such a fund or funds would help fill the
intermediate needs of projects that cannot be fully funded through equity, grants or conventional debt
alone. Continuing the current practice of increasing BIG grant allocations to cover these gaps may not be
sustainable in the long run or even needed if a project has the potential to service more than a single
loan (or a portion thereof) over its full life.
A city -level RLF, structured as a lower -interest, subordinated, extended amortization "soft second"
mortgage would position borrowers to leverage larger conventional loans and help bridge feasibility gaps
while allowing the city to recapture and recycle a portion of its limited incentives resources. Depending
on potential bank participation in the fund(s), the program could perhaps be structured as a simple loan
guarantee or loan loss reserve program thus eliminating the need for the city to perform (or contract out)
its own loan underwriting or loan servicing. In the case of real estate projects, the program could take the
form of a "patient capital" lien where repayment (including capitalized interest) is triggered only after an
agreed upon 10 or 15-year refinancing event or at the time of sale. Borrowers could be granted
forbearance for any outstanding loan balances that are not fully satisfied by sales proceeds.
Baytown, TX 31
Economic Prosperity Roadmap
BAYTOWN
Monetized RIZ
We note that the city has previously explored the idea of "monetizing" or front -loading the RIZ
program's tax rebates to provide applicants with an upfront loan that would be paid back by
assigning the normal tax reimbursements back to the lender. This is a creative way to "financialize"
a fairly predictable revenue stream. However, unless the lending institution is the city itself, such a
program would still likely need a loan guarantor (such as the city) to get most banks to participate.
This is because the only other loan security would be a tenuous second mortgage lien on the
subject property. (That, or the city could possibly agree to subordinate its priority tax lien position in
favor of the lender and then enforce it on the bank's behalf.).
Also, because such a program is secure by increased property -values, it would not help serve any
working capital needs of small businesses tenants. A separate, non -tax rebate dependent RLF
program, either operated or guaranteed by the city, on the other hand, would serve both types of
needs and, as importantly, would be additive to the City's current RIZ program. It would provide the
necessary dual "belt and suspenders" support of up -front loan and short-term reduction of operating
costs to help businesses get established through their first difficult years.
The KKC team recommends that the city attempt to capitalize either a single combined $1 million loan
fund for both development projects and small business working capital loans (a "B2 fund") or two
separate funds capitalized at $500,000 each. Funding sources could include: Federal Economic
Development Administration (EDA) grants, any remaining American Rescue Plan Act (ARPA) funds,
pledged 212 or Industrial Development Agreement (IDA) funds, pooled bank (Community Reinvestment
Act credit) funds, Texas Enterprise Funds, MDD funds, city general funds, foundation funds or locally
allocated CDBG funds (providing that the latter are reserved for blight removal or affordable housing
projects only).
Early participation should be sought from banks where the City holds deposits in addition to Houston
area Community Development Finance Institutions (CDFIs). CDFIs are federally charted non-profit banks
and credit unions whose mission is to promote economic and community development projects in
challenging `soft market" communities throughout the U.S. Houston area CDFIs include: Houston
Business Development Inc., Houston Metropolitan Federal Credit Union, Texas Bay Area Credit Union
and the Houston chapter of the Local Initiatives Support Corporation (LISC-Houston).
Unless structured purely as a loan guarantee or loan loss reserve program, establishing one or more
RLF programs will require staff resources, the establishment of program underwriting guidelines and
application forms and the formation of a local committee or committees comprised of volunteer lending
professionals. Some but not all of the costs associated with operating these types of programs can
typically be recouped through loan fees.
Baytown, TX 32
Economic Prosperity Roadmap
Implementation Actions:
1. Convene a working group of City and EDF staff, local banking officials, Harris County
Economic Development and area Community Development Finance (CDFI) institutions to work
through the challenges of establishing and managing a local RFL program.
2. Secure a challenge grant from the Baytown City Council to kick-off a capital campaign.
3. Approach Baytown's major corporations and foundations for matching seed fund grants to
further capitalize the program.
4. Secure financial and in -kind participation from local banks and Houston -area CDFIs.
5. Work to secure a tranche of RFL funds via an ETJ 212 Agreement through one or more
sources.
6. Develop program guidelines, bylaws and loan application documents.
7. Secure a pro-bono loan underwriter and loan servicing provider from among participating
financial institutions.
8. Empanel a loan committee from among participating financial partners.
9. Promote the program on the City website, social media and other information channels.
In addition to the use of TIRZ, tax abatements (RIZ), 380 Agreements and other programmatic tools, the
city will need to build the capacity to take a more proactive, interventionist role in making redevelopment
happen. This is particularly the case regarding Downtown's revival. This means operationalizing an entity
that can function as a de -facto real estate agency or 'developer in the public interest". Such an entity
must be resourced and empowered to acquire, control and assemble (at "arms length") marginal real
estate; conduct selective predevelopment work, and then shepherd assembled properties into the hands
of vetted developers to build city -proscribed projects. These projects would be subject to performance -
based development agreements with the city and reinforced via deed restrictions or covenants.
The entity would work directly under the aegis of the city; have a board that is accountable to the City
Council; be organized as a public non-profit; and serve mainly as a land assembler, real estate
clearinghouse and developer recruiter. It could be funded through a combination of city general funds,
ground lease revenues, shared developer fees, land sale proceeds and special sales tax revenues much
like the city's current Municipal Development District (MDD). It could also be potentially subsumed under
the MDD or under the city's existing Redevelopment Authority (note: the latter entity currently operates
only as a TIRZ board).
Goals advanced: #1, #4 and goals of Downtown Plan
Baytown, TX 33
Economic Prosperity Roadmap
BAYTOWN
Redevelopment Corporations
These entities are known by several names such as Development Corporations or Redevelopment
Authorities and are staffed either by city planning/economic development staff or, in some cases, by
a dedicated full or part time executive director who may or may not be a direct city employee. (Note:
we understand that Baytown's current Redevelopment Authority is structured mainly as a TIRZ
board that oversees public expenditures within TIRZ boundaries only.) In addition to its nominal
"public developer' role, such an entity may also manage a larger public real estate portfolio or "land
bank". This portfolio may consist of abandoned or blighted properties acquired by default and/or for
no immediate purpose either through tax foreclosures or as part of blight removal efforts.
The advantages of doing redevelopment work through a special, city-controlled/created legal entity
rather than at the municipal departmental level are several: Developer confidentiality can be better
maintained, the development process can be more professionalized and partially insulated from
usual politics, and, perhaps most importantly, the real estate transaction process isn't bound by
normal public bidding procedures. The latter means that developers can be selected based on their
qualifications and specific project proposals (and be legally bound to execute them) rather than
having the highest bid be the sole disposition criteria. This prevents city lands from falling into the
hands of land speculators and the like and assures more direct control of outcomes.
We note that the Baytown -West Chambers County Economic Development Foundation (EDF) has
been considered for this role (or a variation thereof) through its Cedar -Trinity Corp. 501-C3. This
may be a workable option for the city for capacity reasons; however, if the EDF's role is
contemplated to be more than just a property pass -through mechanism (e.g. a non -autonomous
entity working at the city's sole direction and discretion) then it will be important for the city to have
the EDF's role and priorities clearly spelled -out via a professional services agreement. This
agreement must stipulate regular and rigorous coordination with city staff and the development of a
strategic plan. And unless their role is limited strictly to the acquisition and disposition of orphaned"
property (i.e. a land bank or similar facility), the strategic plan will need to demonstrate the agency's
capacity to do proactive, assertive and scalable land assembly, as well as developer recruitment
and incentives -packaging to advance the city's priority redevelopment projects. The board makeup
of the Cedar -Trinity Corp. may also need to be adjusted to ensure adequate city representation.
Another option may be to restructure the city's current Redevelopment Authority or MDD to take on
a more direct role in city real estate transactions. This may involve changing their legal status as
well as board makeups to bring in more professional real estate expertise (lenders, architects,
brokers, lawyers, construction managers, etc.). City Economic Development could serve as staff to
the authority provided that the chosen executive director has relevant real estate development
experience.
Yet another option is to establish a special Downtown Development Corporation organized along
similar lines but with a more limited charge or geographic focus. In either case, the legal entity must
be funded to acquire and hold property and all the myriad expenses associated with it such as:
property maintenance, title clearance, option fees, transactions costs and marketing. The
composition of the various entities may include many of the same individuals provided that real
estate -adjacent expertise is represented, and conflicts of interest are avoided.
Baytown, TX 34
Economic Prosperity Roadmap
The graphic below depicts a hypothetical organization structure for a city -led development entity.
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Baytown, TX 35
Economic Prosperity Roadmap
BAYTOWN
S
Implementation Actions:
1. Create redevelopment entity chartering document including mission, bylaws, statutory
authority organizational structure and governance.
2. Explore entity "nesting" options through the MDD and EDF.
3. Draft professional services agreement (if applicable).
4. Obtain City Council and/or MDD adoption of organizational charter.
5. Seek City and/or MDD seed -funding allocations.
6. Draft professional services agreements and/or intergovernmental cooperation agreements (if
applicable)
7. Develop and post executive direction job description and qualifications.
8. Hire executive director and administrative assistant.
Baytown, TX 3
Economic Prosperity Roadmap
Projects:
•..
...
• •"Power
Ad
As mentioned earlier, the specter of ExxonMobil's Blue Hydrogen project along with Metro Houston's
recent designation as a "Hydrogen Hub" (and the billions of Federal dollars at -stake) position Baytown to
create a specialty, manufacturing -focused innovation environment unique to the region. This opportunity
is enhanced by the city's port location and Foreign Trade Zone availability, and the growing number of
"Clean Tech" industries already present in the region. This opportunity aligns with Baytown's legacy
strengths and would fill a unique niche in Metro Houston's increasingly innovation -driven manufacturing
landscape. It would also help neutralize the region's perceived weak -spot for precision and advanced
manufacturing; namely, reliable and redundant power provided in a controlled, master -planned setting.
KKC believes that the city should aggressively explore this opportunity by coalescing regional political,
economic, education and corporate leaders (particularly ExxonMobil and the Greater Houston
Partnership) and mobilizing congressional support. The process would begin with developing a white
paper, identifying potential sites, conducting a feasibility study, acquiring site control, identifying funding
sources, obtaining in -kind commitments from the city and Lee College and mobilizing political leadership.
1 • ... R..
Baytown, TX 37
Economic Prosperity Roadmap
Although this type of project will likely take time and resources to cultivate, it has the potential to position
the city for a whole new generation of manufacturing industries and quality jobs. It also holds the
prospect of helping reshape Baytown's image and brand around something authentic to its' industrial
legacy. In addition to Federal infrastructure funds, other potential funding sources include: TIRZ,
Industrial Revenue Bonds (IRBs), Department of Energy and Economic Development Administration
(EDA) grants, pledged 212 payment -in -lieu of taxes (PILT) funds, Texas Enterprise Development funds
and Texas Skills Development Fund (job training).
Goals advanced: #1 and #3.
Implementation Actions:
1. Confer with knowledgeable ExxonMobil executives on the timing and scope of the Blue
Hydrogen project and ways in which the City can both assist and benefit from it,
2. Create a project whitepaper describing the power park concept.
3. Organize an exploratory committee to help vet the project and provide early advocacy and
leadership.
4. Conduct feasibility study.
5. Seek commitments from the Greater Houston Partnership to help lead advocacy and
fundraising efforts.
6. Identify potential sites and secure property -owner participation.
7. Coalesce political leadership to help lobby for state and Federal funding.
8. Seek sponsorships from regional utility companies and clean -tech industry groups.
9. Pursue various Federal funding sources including the Hydrogen Hub program, the Economic
Development Administration (EDA) and the Department of Energy (DOE).
10.Announce the project nationally through press releases, select ad buys and earned media.
11.Select a site, secure entitlements, and recruit highly qualified developer with related, national
experience.
Baytown, TX 38
Economic Prosperity Roadmap
This proposed project involves a new medium-sized sports and entertainment facility and supporting
mixed -use development in an, as yet, undetermined Baytown location. Based on an early project
feasibility study (and a separate cursory retail analysis showing a potential local demand for up to $15
million per year of new local spending on entertainment and recreation in Baytown by 2028), the project
appears to fulfill a regional need for a new mid -sized sports and special events venue. The project's
feasibility seems to be partly driven by the age, condition and geographic distribution of existing regional
venues in a growing regional entertainment market.
The project is currently conceived as a sports and food -anchored, "live -play" development that would
serve both a local and regional clientele and serve as the "home court" for a second -tier professional
sports franchise such as the United States Football League (USFL) or National Basketball Association "D
League". Alternatively, the facility would be programmed for a combination of youth sports events,
concerts and other ticketed events. A new hotel and ancillary retail development are also included in the
overall development program.
Although detailed program -level specifics are not available at this time, it is clear that both the arena and
hotel components will require substantial public subsidies to attract investors. It is unclear if the subsidies
would be one-time infusions to help with initial construction or for ongoing operations or both. It is also
unclear if the substantial projected increases in project -generated tax revenues (an estimated $81 million
over 30 years) will be enough to offset these subsidies or not. The city will need to subject the project to
a rigorous cost -benefit analysis once the project concept is more fully developed and more detailed
development budgets and pro-formas become available. Typical public funding sources for this type of
project include: TIRZ, 380 Agreements and hotel occupancy (HOT) taxes. (We note that ExxonMobil has
reportedly pledged $75 million in 212 revenues to the project.)
As currently conceived, the project holds the potential to increase the number of retail attractions and
amenities desired by so many individuals consulted for this plan. Insofar as it delivers on this, it has the
further potential to attract more middle- and higher -income households that have proven so elusive for
Baytown. It also has the potential to drive the city's fledgling recreation and youth sports economy. As
the project gets refined, city leaders will have to weigh the net public costs of subsidizing this type of
project (and its inherent risks) versus those of other projects and programs that may have to be forgone
in its favor (i.e. its "opportunity costs"). If the project can be shown to be largely cost -neutral (with new
project -induced tax revenues mostly offsetting subsidies and any anticipated public service cost
increases) it may well be a worthwhile investment that could provide as many intangible benefits as
tangible ones.
Baytown, TX 39
Economic Prosperity Roadmap
Implementation Actions
1. Prepare detailed project financials (e.g. construction budgets, preliminary sources and uses of
funds, and operating pro-formas).
2. Prepare full fiscal impact analysis comparing alternative locations and development programs.
3. Identify gap financing funding sources.
4. Select preferred location and development program.
5. Update market study and feasibility analysis to reflect selected site and development program.
6. Identify developer representative/project manager.
7. Acquire site control of preferred location.
8. Issue RFPs for project developer and operator
Despite the city's already substantial investment in the Downtown Arts District, private follow-on
investment has yet to fully materialize. This has caused some in the community to think that further
public investment in Downtown is basically throwing good money after bad and that scarce city resources
would be better spent elsewhere. Others think that there isn't enough of a Downtown left to save and that
it should be recreated somewhere else instead.
While these sentiments are understandable, the KKC team strongly believes that Downtown Baytown is
worthy of additional public investment and that its rejuvenation will be key in attracting new residents. It
contains Baytown's richest collection of historic buildings and cultural assets and has a ready-made
physical framework for the kind of authentic, walkable urbanism that is so much back in -vogue today. If
not the singular, capital "D" downtown of years past, the area still has the classic features of a traditional,
mixed -use urban neighborhood that can draw -in the kind of creative talent that the city wants to attract.
The current lack of private investment is mostly due to the heavy costs of renovations and the lack of
available large sites to attract outside developers. It also has to do with the soft market conditions in
Baytown where rents fall well below regional averages. Under these conditions, most developers are not
willing to engage in the protracted process of site assembly and investor recruitment if other easier and
more profitable opportunities are available to them elsewhere. Their calculus begins to change, however,
if larger sites can be served -up to them allowing them to effectively alter the market in a single stroke.
Public subsidies such as tax abatements, subordinated low interest loans and/or discounted land can
help get the projects to "pencil out" and to attract investors.
The purpose of the redevelopment enterprise discussed earlier is to establish a proactive public
intermediary to conduct necessary predevelopment work and to package land deals for private
developers. Essentially, to prep the "playing field". This entity is intended to work to cobble together
existing publicly -owned sites, vacant and blighted properties, tax delinquent parcels and available
privately -owned sites into scalable development opportunities for developers. It then actively markets
these opportunities on behalf of the city. Its job is to essentially groom areas for redevelopment until the
local market stabilizes and can function on its own. The enterprise though is merely the administrative
vehicle. It still needs to be fueled and driven with both operating resources and experienced and
motivated staff.
Baytown, TX 40
Economic Prosperity Roadmap
BAYTOWN
The Downtown Plan done in tandem with this
plan identifies several potential redevelopment
target areas for the city to pursue. These were
selected based on concentrations of existing
public ownership, vacancy, marginal building
stock and existing private owner consolidation.
These areas were identified using only cursory
research. Other opportunities may reveal
themselves with further probing and diligence.
The new redevelopment entity's job will be to
develop or manufacture such opportunities,
unearth new ones, and actively promote them
to the development community. As it grows in
experience and sophistication, it may also help
carve -out future job opportunities for local
contractors and affordable retail spaces for small businesses.
Merging Downtown Baytown, the Lee College campus,
and the Goose Creek waterfront are key goals of
Baytown's "Arts District Blueprint" plan.
Central to this effort will be to create a Downtown development market prospectus and website
highlighting elements of the Downtown Plan along with existing available redevelopment opportunities
and city incentives (including the BIG program and enhanced RIZ tax abatements). This must be
followed by direct developer solicitations involving the publishing of requests for proposals (RFPs) and
interpersonal prospecting at real estate conferences and networking events.
Composite map of potential redevelopment focus areas based on city ownership, vacancy, marginal building stock and
contiguous private ownership Source: Baytown Arts District Blueprint (Downtown Plan).
Baytown, TX 41
Economic Prosperity Roadmap
Implementation Actions:
1. Seek confirmation, staffing and initial tranche of funding for the redevelopment enterprise
agency (see above).
2. Using the Downtown Arts District Blueprint as a guide, work to acquire site control (purchase
agreements or options) on one or more target redevelopment sites.
3. Develop marketing prospectus highlighting the Arts District Blueprint vision, market highlights,
and select redevelopment opportunities.
4. Issue first metro -wide RFP for city -controlled redevelopment site(s) on high visibility platforms
such as the Certified Commercial Investment Member (CCIM) Institute (Houston chapter), the
Urban Land Institute (ULI) (Houston Chapter), the Association of Commercial Real Estate
Professionals (ACRP) and the Houston Chapter of the National Association of Industrial and
Office Parks (NAIOP).
5. Follow-up with networking at commercial real estate events in addition to email and social
media blasts.
Individuals consulted for this plan, as well as previously conducted plans and studies, consistently cited
the need for the city to add new amenities and retail as a way to attract both new residents and visitors.
Many also referenced the opportunity for the city to take better advantage of its waterfront areas and to
develop a stronger recreation niche. Conceived as both a retail and recreation/entertainment venue,
Project Vector has the potential to deliver in many of these areas. However, given the current
uncertainties surrounding this project (and understanding that resources are limited), the KKC team
would offer a few other options for the city to consider even if that project moves forward as planned.
These are things that could variously: synergize with other city assets and opportunities, help forge a
new image of the city, attract visitors, improve education, and align with the interests of local corporations
and foundations. All will require strong business plans, significant public funding, forceful advocacy and
public leadership, and major corporate/foundation sponsorship. They are offered as possible topics for
consideration, not as firm recommendations.
0 STEM Learning Center
Many cities are home to one or more public -private
run Science Technology Engineering and Math
(STEM) education centers that serve as a hybrid of
museum and external classroom. These are typically
underwritten with major donor contributions and are
Baytown, TX
Economic Prosperity Roadmap
BAYTOWM
"flagged" by allied corporations who serve as major patrons and sponsors. Often, these corporations'
foundations have a mission to improve public education. In other cases, the corporations themselves
have a self-interest in projecting their innovations, their corporate ethos, or in cultivating a future
workforce pipeline. Baytown is fortunate to have a cadre of Fortune 100 companies deeply involved in
innovations in energy, power systems and new materials among other spheres. All of these areas deeply
involve science and technology and the need to groom a future workforce. A potential area of focus for
Baytown could be a hydrogen and clean power -focused STEM center that could serve as a regional
draw for students and parents and a public relations tool for corporate benefactors. This is also the type
of project that would be a boon to area school systems and likely garner additional foundation and
agency funding.
Goals advanced: #1, #3
01
Industrial -Arts Makerspace
Baytown has heavily invested in the arts and has a rich industrial history. The
city has yet, however, to develop a functioning arts economy (i.e. with artists
making, displaying, living and selling in the community). Baytown also has a
large number of skilled craftsmen working in the industrial trades but with very
little in the way of any discernable cottage or craft industries (craft
metalworking, custom furniture or other "Etsy" type commerce).
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Baytown, TX 43
Economic Prosperity Roadmap
BAYTOWN
3
An industrial arts makerspace equipped with the type of tools and equipment
cannot afford or cannot store in their homes (i.e. Computer Numerical
Control "CNC" machines, laser cutters, welding apparatus) could help
unlock this economy, ground it in a specific place, make it more
collaborative and visible, and attract other artist -residents to the city. It
could also provide an entrepreneurial outlet for many of the area's
skilled workers as well as informal training and career exposure
opportunities. There are a number of both independent and franchise
operators of such facilities in Texas and throughout the U.S. offering a
range of subscription options and likely requiring a range of public
incentives to set up shop.
Roals advanced: 92, 93, #4
IL Specialty Sportsplex (Aquatics/ice)
that most people either
This opportunity is similar to Project Vector but with less emphasis on mainline spectator sports and
wrap -around mixed -use development. Instead, the focus would be more on youth athletic training and
competitions including in the specialty areas of aquatics, ice sports and gymnastics. We understand that
there is a shortage of appropriately outfitted facilities in the region thus presenting less potential
competition (and a greater geographic catchment area) for a Baytown facility. This opportunity would
align well with existing city recreational, outdoor and health and wellness amenities/facilities and also
drive visitation, hotel stays and additional retail. It may also require less public subsidy.
Goals advanced: #1, #4
=4 Downtown Cultural Center
As noted in the companion Downtown Plan, the ACE District lacks some of the typical institutional
anchors (e.g. city hall, courthouse, library, movie theater) that drive consistent activity in many
downtowns. The Downtown arts community also lacks a central focal point feature that would give it
more visibility and gravitas. The Town Square area lacks a permanent activity generator to enliven the
space during non-event times.
Baytown, TX 44
Economic Prosperity Roadmap
Interestingly, the possibility of the Sterling Library's potential future relocation and/or redevelopment has
been loosely raised during the course of this plan. Downtown's Little Theater meanwhile is housed in a
non-descript building situated well away from Downtown's main blocks and stranded on all sides by little
used parking lots. A new mixed -activity cultural center off the square — possibly combining a new public
library, Little Theater, gallery space and public parking — could provide Downtown's needed anchor
institution while freeing up underdeveloped sites on either side of it for new infill development.
Goals advanced: Arts District
Blueprint
40 Q Clean -Tech Accelerator
This type of facility is intended to commercialize potential
innovations spinning out of, or drawn to, the region's
centers of innovation such as in energy, power systems,
construction, new materials, aerospace and logistics. It
would serve as part start-up incubator, classroom,
networking facility, and collaboration space and be
actively programmed with various events, grant
competitions and business bootcamps, etc. A familiar
set-up would have one or more of the region's major
corporations leasing or sponsoring space in the facility to
be close to useful sources of talent and innovation or as
a platform to spin -out new innovations of their own. It is
also fairly common for a corporation to host the facility
on their own campus.
This opportunity presents somewhat of a high bar for Baytown given the relative physical seclusion of its
corporations and the city's current lack of a functioning small business ecosystem. Still, ExxonMobil's
Blue Hydrogen project could position Baytown as a magnet for start-ups in the clean -tech space and
gather -in entrepreneurs and their supporting systems around it. A possible pilot project could involve the
city hosting an outpost or satellite center of Houston's Green Tech Labs franchise to serve as a proof of
concept (see also Innovation Power Park concept above).
Goals advanced: #1, #2
Baytown, TX 45
Economic Prosperity Roadmap
Policies:
Downtown Baytown and many of its commercial tributaries have historically been plagued by high levels
of vacancy and blight. Symptomatic of struggling neighborhood economies, the presence of blighted
properties can become cancerous for a community, making the redevelopment process even harder than
it already is. Although no one wishes to "punish" property -owners for sagging market conditions, allowing
properties to simply deteriorate in -place devalues investments made by responsible others. It also
discourages outside investment and understates the true holding costs of owning urban real estate.
The KKC team strongly believes that the future of Downtown, as well as other sections of the city, hinges
heavily on the continuation and expansion of a fair and consistent building code maintenance regime.
Dangerous or blighted properties should be dealt with promptly and firmly and property -owners made
aware of all possible remedies — including potentially selling -out to a newly chartered city redevelopment
agency. Equally importantly, the city should review its building code procedures to assure that it is not
being unnecessarily uncompromising or rigid in such a way that makes building improvements largely
impractical keeping in mind that critical life safety requirements anywhere in the city need to be
maintained, especially the oldest area which has no modernization of structures or utilities to match
current code minimums. This is especially the case in Downtown where the tight arrangement of
buildings together with the city's normally correct prohibition of meters on front facades, makes the
installation of new electrical services nearly impossible. The City should initiate discussions with the local
electrical utility on potential workaround solutions and be open to ways to mitigate undesired aesthetic
effects through disguising and screening techniques. While challenges have been encountered in
attempting compromises with the utility companies in the past, efforts to provide alternative solutions
should continue.
Baytown, TX 46
Economic Prosperity Roadmap
BAYTOWN
Implementation Actions:
1. Hold regular brainstorming workshops with City inspection and code enforcement officials on
potential workaround solutions for common redevelopment problems.
2. Conduct an audit of the City's current building code focusing on the commonly encountered
and difficult to remedy building problems.
3. Where possible, adjust building codes and other development regulations to accommodate
alternative treatments in hardship situations.
4. Reinstate and enforce the City's Vacant Building Ordinance.
5. Add specific reporting category of "building code violation" on Better Baytown App.
6. Inculcate a stronger culture of public service and problem -solving among City staff through
regular in-service training opportunities, staff retreats and staff recognition events/ awards.
7. Organize workshops with utility companies and contractors to develop specific, situation -based
solutions to serve the Downtown Arts District.
8. Step up the use of building code fines and liens for repeat "scofflaws".
9. Aggressively pursue legal condemnation/demolition or receivership of dangerous or blighted
buildings in worst case situations.
10. Pursue voluntary ("arms -length") acquisition of vacant or blighted buildings where they can be
obtained at fair market value and combined into scalable redevelopment sites.
Current city practice has been to negotiate IDAs and 212 Agreements on mostly an ad -hoc project -by -
project basis. Although the city understandably always wants to keep its options open, this practice adds
a level of uncertainty and randomness into the negotiations that can be discouraging to new businesses
looking to relocate into the city or its ETJ. Many site selectors (the third -party representatives that many
corporations hire to secure new sites) are often turned -off by communities that cannot provide them
reasonable assurances on the estimated amount of available incentives or a timeframe for their approval.
These communities usually drop out of contention pretty quicky unless there is some other offsetting "X-
factor" driving corporate decision -makers.
Baytown, TX 47
Economic Prosperity Roadmap
The KKC team recommends that the city work with the Baytown -West Chambers County Economic
Development Foundation (EDF) to develop and socialize a weighted schedule of incentives for new
companies looking to relocate or expand in Greater Baytown. The dollar value of incentive awards
should be based on a point system tied to specific performance metrics such as: the number of full-time
equivalent jobs (FTEs), average wages, total payrolls, amount of total capital investment or other
quantifiable (and verifiable) measures. They should also be skewed to favor specific target industries
noted herein (and identified by North American Industrial Classification System (NAICS) code) that the
city very much wants to attract and are heavily feted (e.g. advanced manufacturing, professional services
and corporate headquarters) versus those that are probably inclined to locate in the city/ETJ regardless
of incentives due to the city's special infrastructure and location (e.g. warehousing and logistics).
Consideration should be given for companies willing to provide incentives for their employees to
purchase a house in Baytown (resident -worker downpayment bonuses), local hiring goals, or those
companies willing to make meaningful cash or in -kind sponsorship commitments (e.g. STEM center).
Companies that are expected to create potentially harmful offsite impacts (e.g. pollution, noise, traffic)
should be incented less or pay more as the case may be.
Implementation Actions:
1. Work with the EDF to develop a tiered list of preferred
(see above)
2. Develop a mirrored incentives/212 Agreement scoring
metrics (e.g. average wages, full time equivalent jobs
industries. The system should work in reverse for 212
applicants expected to compensate the City more.
industry targets by their NAICS code
system tied to specific performance
etc.) and skewed to preferred target
Agreements with the lowest scoring
3. Prepare an incentives application and process approval flow chart and post on the City's
economic development page.
Baytown, TX 45
a�,
BAYTOWN
Economic Prosperity Roadmap
Implementing the main recommendations of this strategy plan involve a series of support -building steps
intended to identify influential advocates and potential funding sources, and to organize for the work
ahead. A main recommendation of this project --as well as the city's preceding comprehensive plan -- is
for the city to engage in more regional partnerships to do exactly this. For purposes of advancing one -of -
a -kind regional projects like the innovation power park, regional actors include, besides the Baytown -
West Chambers County Economic Development Foundation, the Houston -Galveston Regional Council
(HGAC), the Greater Houston Partnership, Lee College and select local corporations. (Reciprocally, the
city should proactively engage with these partners to advance other projects with regional import such as
the widening of the 1-10 bridge and the dredging of the Houston Ship Channel.). Many of the other
projects and programs will involve building internal staff capacities and defining roles both at a
departmental level, but also in relation to other city departments and other local economic development
actors. Still others such as expanding the RIZ program and the use of 380 Agreements can be advanced
immediately.
Baytown, TX 49
Economic Prosperity Roadmap
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City Economic Development staffs core activities should be in the areas of: Redevelopment, Small
Business Development and Housing, and act in a supporting capacity in other areas.
Starting at the departmental level, we recommend that the city focus its efforts mainly on small business
development and redevelopment and continue to lean heavily on the EDF to lead on corporate attraction,
workforce initiatives and other direct "industry -facing" activities. This suggests a move away from generic
economic development practitioner staff titles to the more specialized roles of Redevelopment Manager
and Small Business Coordinator (while recognizing both the need and desire of staff to collaborate
closely both among themselves and with the EDF, and to occasionally cross -over into the other's
domain). Job descriptions and salary ranges should be updated accordingly to reflect the possible need
for higher credentialed individuals (particularly for the redevelopment manager who could potentially step
into the auxiliary -role of executive director of the recommended redevelopment agency).
Baytown, TX 50
Economic Prosperity Roadmap
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At the project level, the proposed work program is outlined as follows:
Draft program brief
X ED staff
Developer roundtable
X ED staff
City Council approval
X City Council
Taxing body MOU
X ED staff
First RFP
X ED staff
Draft program brief X ED staff
City Council resolution/ordinance X ED staff
City Council approval X City Council
Taxing body MOU X ED staff
Baytown, TX 51
Economic Prosperity Roadmap
EDF, Harris
Convene working group
X
ED staff
County, CDFls,
Local banks
Secure challenge grant
X
City Council/MDD
MDD, 212 funds,EDA, TX EDC
Corporations,
Begin capital campaign
X
ED staff, EDF,
CDFls,Foundations
foundations, 212
funds
Develop program guidelines and bylaws
X
ED staff
Local banks
Recruit loan underwriter and servicer
X
ED staff
Local banks
Establish loan committee
X
ED staff, EDF
Localbanks
Promote program
X
ED staff
Social media, citywebsite
Make first loan
X
ED staff
TX EDC, IEDC,
Establish charter, mission, bylaws and
X
ED staff, City legal
NDC, Harris
governance structure
dept.
County Economic
Development
Determine controlling entity
X
MDD, EDF, CityED
Controlling entity adoption of charter
X
Controlling entity,
City Council
Secure seed funding allocation
X
City ED staff +
controlling entity
City, MDD
Professional services agreement or IDA {if
X
City and/or
controlling entity
applicable}
legal
Develop and post executive director job
X
ED staff and City
description
HR Dept.
Hire executive director
X
City HR Dept
Meet with ExxonMobil re: timing and scope
X
ED Staff, City
of Blue Hydrogen project
Mgr's Office, EDF
Baytown, TX 5
Draft project white paper (i.e. concept
paper)
Seek leadership commitment from GHP
Create exploratory committee
Conduct feasibility study
Identity potential sites
Coalesce political leadership
Seek funding sponsorships
is
X
X
X
X
X
Economic Prosperity Roadmap
ED Staff, EDF,
ExxonMobil,
planning
consultants
ED staff, EDF, City
Mgr's office, mayor
ED Staff, EDF
ED staff, EDF,
GHP
ED staff
Mayor, City
Manager, EDF,
GHP, ExxonMobil
Same as above
Obtain site control and secure entitlements X ED staff, EDF
Issue developer request -far -proposal X ED staff, EDF
(RFP)
Select developer X ED staff, EDF
Dept of Energy
(DOE), Rice
University, UofH.
Greater Houston
Partnership
(GHP), Siemens,
Johnson Controls,
utility companies
ExxonMobil, GHP,
utility companies
GHP, universities,
Siemens, Johnson
Controls, utility
companies
State and Federal
elected
representatives
Economic
Development
Administration
(EDA),
Department of
Energy (DOE),
utility companies
Baytown, TX 53
Economic Prosperity Roadmap
BAYTOWN
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Engagement
The City of Baytown formed an Economic Strategy
Working Group (ESWG) as part of the plan to garner
input. The ESWG met throughout the plan four times
developing the following vision and goals that were
incorporated into the plan. The goals were then ranked
as shown below.
VISION
The City of Baytown is the economic hub of a surging
Greater East Houston region with a diverse economy
characterized by new business growth and an
innovative small business and entrepreneurial ecosystem.
Goals
Baytown, TX 54
Economic Prosperity Roadmap
Short -Term Goals Composite
Score
Improve the City's quality of life/place to attract (retain) more talent to (in) the city. 1.8
Expand the area's petrochemical industry and reinforce the area's locational 2
advantages and appeal amid the ongoing energy sector transition.
Establish a stronger local hospitality, convention and entertainment economy. 2
Diversify the local economy to include more professional and technology jobs. 2.5
Establish a more comprehensive and well -funded small business support system. 2.67
Broaden and deepen the city's retail offerings. 2.75
Long -Term Goals Composite
Score
Attract more start-up companies and make clear the local support available for their 3
growth trajectory and success.
Improve and expand the area's workforce development programs and systems. 3.5
Expand the area's logistics and warehousing operations in suitable locations that do 3.5
not crowd out desired commercial and retail investment.
Expand wealth creation programs targeted to area residents (job training programs, 4.2
first time homeowner programs, etc.).
Attract more outside corporate investment from non -petrochemical and logistics 4.5
industries.
Baytown, TX 55