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2013 - 2014 Annual Report

2013-2014 Annual Report - EDC of Lea · PDF file2013-2014 Annual Report ... skill improvement training courses, Leadership NM, HR management courses and website maintenance training

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Page 1: 2013-2014 Annual Report - EDC of Lea · PDF file2013-2014 Annual Report ... skill improvement training courses, Leadership NM, HR management courses and website maintenance training

2013-2014

Annual Report

Page 2: 2013-2014 Annual Report - EDC of Lea · PDF file2013-2014 Annual Report ... skill improvement training courses, Leadership NM, HR management courses and website maintenance training

2013-2014

Annual Report

Intercontinental Potash Corporation (ICP) –ICP received their final

environmental impact statement (EIS) and a Record of Decision from Bureau of Land

Management authorizing ICP to construct and operate its Sulphate of Potash Ochoa Project. ICP is currently

working with the world’s largest banks and industry partners to secure funding for the project. The EDCLC is

working with ICP to coordinate rail development efforts between Lea and Eddy Counties.

www.icpotash.com

Joule Unlimited - Joule completed their phase 1 small scale commercial and they are

beginning to produce product. Joule recently announced that their fuel products meet the

standards of the American Society for Testing and Materials (ASTM) for diesel and jet fuel. The

EDCLC assisted with meetings associated with the State Land Office, IRB’s, and the recruitment of

employees. www.jouleunlimited.com

International Isotopes, Inc. (INIS) – INIS received their NRC licensure during

2012. The EDCLC is working with INIS to extend the dates on their agreements

as they move forward with their project with an altered timeline. www.intisoid.com

Eldorado Bio-Fuels - Eldorado has a demonstration facility in Jal and hopes to commercialize their

production in the near future. The EDCLC has assisted Eldorado in trying to locate loans, grants,

and other opportunities for capital investment for the commercialization of the project as well as

assistance with the IRB process. www.eldoradobiofuels.com

Petroleum Industry Expansions – The EDCLC helped several service

companies of the oil & gas industry to find property or expand their

operations (such as Nova Mud) in Lea County. We actively supported the

efforts to not list the Sand Dune Lizard and Lesser Prairie Chicken as an

endangered species and organized meetings for the industry to present

valuable information to state agencies during various listening sessions.

Site Selector Tours -The EDCLC participated in two tours, Houston and South Carolina, to meet with

project brokers and site selection experts to promote Lea County. These visits are essential for building

relationships and familiarizing project developers with the benefits of Lea County. The site selectors represent

a wide variety of industries including manufacturing, energy, retail, logistics, distribution, warehousing, etc.

New Prospect Development – The EDCLC responded to over 250 requests and/or proposals for

information and hosted more than 20 site visits and project developer meetings, and was selected as a finalist

location for a Moly-99 manufacturing facility, several retail chain locations, hotel developments, and housing

additions.

Industrial Development

Business Attraction-Retention & Expansion

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2013-2014

Annual Report

Rail Opportunities - Efforts have continued to work towards additional rail service to facilitate the use of the

UP and the BNSF railways to promote industrial development. Additionally, the EDCLC continues to work

with the railroad and potential companies to identify available land with rail access to locate projects

throughout the county.

Retention Efforts– The EDCLC has initiated retention and

expansion visits with local and regional businesses. These visits

allow us to identify potential expansion opportunities and

additional recruitment targets. The EDCLC has conducted

over 30 visits since the beginning of the program in February.

Retail & Housing

Housing Development -The EDCLC has worked to create

housing brochures to provide information for developers that detail the available areas

for building, municipal and county processes and incentive programs, and a list of area contractors. The

EDCLC has fielded numerous requests for data and land from housing developers and financing institutions.

There are several new housing projects, both multi-family and single-family that have opened in the past year

or are in the planning or construction phase.

Retail Development -The EDCLC used the Buxton Retail Study, which provided data to support the

development of national/regional retail and hospitality development. This study and the database provide great

detail about the retail trends and population groups in Hobbs and can be used well beyond retail applications.

The EDCLC attended the International Council of Shopping Centers (ICSC) conference and met with several

retailers. The EDCLC has assisted several new restaurants, retailers, and hotels to locate in the EnergyPlex. A

few of the new retail additions to Lea County include: Family Dollar, CVS, Tokyo Japanese Steakhouse,

Buffalo Wild Wings, Dicky’s, Starbucks, Taco Bell 2, Dollar General, Hilton Garden Inn, Baymont Inn &

Suites, Marriott TownePlace Suites, Zia Park Hotel, Value Place Inn, Tornado Car Wash, Advanced Auto

Parts, and Papa John’s. The EDCLC will continue to promote Lea County to potential retailers and participate

in the ICSC events.

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2013-2014

Annual Report

Marketing

Airline Marketing

A comparison of month over month shows that the

airline service is generally increasing in revenues, ridership, and load factors. Fourth quarter

2013 showed the highest average load factor of 64%.

The EDCLC contracted with a market outreach company to better understand the demand for flights to

Albuquerque, Santa Fe and/or Denver. The results of the study show there is not sufficient demand to support

additional demands at this time. The EDCLC continues to market our existing flights and explore the potential

for additional air service opportunities.

Marketing efforts have been focused on regional advertising in the media, billboards, and special events.

Additional efforts have been made to connect with Houston travel agents and the United call center staff to

inform them of the EnergyPlex and the flight schedule.

The EDCLC continues to market the daily flights between Hobbs and Houston as part of the City Pairs

Government Travel Program. This program is utilized by all Federal employees for travel across the United

States and abroad. Departments utilizing the program locally include FLETC, Department of Energy,

Department of Homeland Security, Department of Agriculture, and any other governmental agency that must

travel to this area.

A steering committee including members from Lea County, City of Hobbs, Lea Regional Airport, and the

EDCLC remains active and provides guidance on issues that impact commercial air service, including working

with the United team to continually improve the service provided at the Lea County Regional Airport.

The EDCLC supports and provides information and promotional items to field trips and other community

groups that tour the Lea County Regional Airport.

The EDCLC launched an aggressive social media campaign to increase awareness. The FlyHobbs website

averages nearly 2,000 visits per week and the FlyHobbs Facebook page has over 550 likes/followers.

The EDCLC started a new radio ad campaign that encourages local businesses to share their positive

experiences with the flights out of the HOB airport.

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2013-2014

Annual Report

EnergyPlex Marketing

EnergyPlex Marketing - The EnergyPlex can now boast projects in the areas of

oil & gas, nuclear, wind, solar, and bio fuels. The EDCLC and FlyHobbs

websites have been redesigned to contain greater information and ease for the

user. As part of the website update, a Building and Land Inventory System

was developed for the EDCLC website to help accommodate companies and

site selectors looking to locate their projects in Lea County. The EnergyPlex

was also marketed at various trade shows specializing in energy sectors throughout

the year.

Live-Work-Play Marketing

Workforce Marketing - The EDCLC began a new marketing

program to target the potential workforce. The first

phase of the Live - Work - Play campaign consists of

using short 45-60 second video clips of workers in Lea

County talking about who they are, what they do, and

why their community is a great place to Live, Work,

and Play. These video testimonials are hosted on the

EDCLC website and are being shared through the

various social media outlets. We will continue to grow

this campaign in the coming year.

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2013-2014

Annual Report

Data and Information to Legislators

The EDCLC provided the Lea County legislators with specific data regarding municipal and county

demographics, statistics, key contacts, and marketing materials including an economic impact analysis and

EnergyPlex materials. The EDCLC also provided monthly updates on projects and EDCLC activities via the

EDCLC PowerBytes Newsletter. The EDCLC also met with newly elected officials to inform them of the

strategic direction of the EDCLC and its partners.

Legislative Relations

Involvement with State Departments

2014 NM Economic Development Summit

The EDCLC worked with the New Mexico Economic

Development Department to host the 2014 Economic

Development Summit in Hobbs in April. Nearly 200

community leaders and economic developers attended the

conference. The EDCLC help to organize the logistics,

receptions, speakers, and special tours during the Summit.

The EDCLC also invited a group of site selectors to

participate in a “speed—dating” event with conference attendees. After the

Summit, the group of site selectors were given a tour of the community and had dinner with the EDCLC

Board of Directors and representatives from the City of Hobbs and Lea County.

The EDCLC has established excellent relationships with NMEDD, the NM State Land Office and Land , and

the Energy, Minerals, and Natural Resources Department & the Oil Conservation Division. The EDCLC

continues to work with these agencies to assist new and existing companies in Lea County.

The EDCLC staff and board serve on a variety of state committees and organizations to support the

EnergyPlex and state-wide economic development efforts.

Interim Committees and Other Meetings

The EDCLC hosted receptions for the Legislative Health and

Human Services Committee, NM Energy Policy Listening Session and the Canadian

Consulate. The EDCLC will host the Education Committee in September. More information will be given

to EDCLC members in later editions of the PowerBytes newsletter and via email.

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2013-2014

Annual Report

Community and Leadership Development

Certified Community Initiative

Power Hour Networking Events

The EDCLC completed grant applications for the new CCI program for Tatum, Hobbs, Eunice, Jal, and Lea

County and collectively secured $18,000 annually for the next year to be used to market these individual

communities. Some projects include new brochures for Tatum, promotional materials for Eunice and Jal and

representation of all communities at retail and industry conferences.

50th Anniversary Celebration

The EDCLC celebrated its 50th year as an organization and recognized the economic

progress of Hobbs and Lea County through a variety of events. The EDCLC partnered

with SIFE/USW, Lea County Schools, and the Lea County municipalities to teach

children about economic development and city infrastructure systems by having them

create a model city that represents their town 50 years from now. A fall banquet celebrated 50 years of

diversification in the EnergyPlex, with key note speaker, Governor Susana Martinez. The event was attended

by 175 guests.

Staff Development & Training

The EDCLC values training and education to provide the highest quality economic development services for

Lea County. Staff participated in planning sessions for the upcoming year, skill improvement training courses,

Leadership NM, HR management courses and website maintenance training.

The EDCLC changed its membership meeting format to be more conducive to networking and allowing local

businesses time to meet with local leaders and explore potential business expansion and partnering

opportunities. These Networking Events are scheduled at least quarterly or as opportunities arise.

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2013-2014

Annual Report

QTR 4 QTR 3 QTR 2 QTR 1

$2,169,662,718

$2,396,830,763

$2,020,980,749

$2,314,638,269

$2,473,179,243

$2,223,740,667

$1,945,071,107

Lea County Total Gross Receipts

2013 2012

The EDCLC has created a new Economic Indicator Report that will be updated

quarterly, and placed on the website and distributed to members via the PowerBytes

Newsletter. This report includes the most often requested information about largest

employers, gross receipts taxes, rig counts and more. Selected annual data from the

Economic Indicators has been included in this annual report.

Lea County EnergyPlex Economic Indicators

7

1000

1500

2000

2500

3000

3500

Air Passenger Traffic by Month (HOB)

2011-12

2012-13

2013-14

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Labor Market Statistics

2013-2014 2012-2013

Civilian Labor Force 33,142 31,222

Total Employment 31,672 30,018

Total Unemployment 1,470 1,204

Unemployment Rate 4.4% 3.9%

Average Weekly Wages $940 $932 Source: NM Department of Workforce Solutions – updated 5/2014

Top 5 Industry Average Weekly Wages

Industry 2013-2014 2012-2013

Manufacturing $1,619 $1,507

Real Estate, Rental and Leasing $1,432 $1,365

Mgmt. of Companies & Enterprise $1,374 *

Mining $1,343 $1,358

Utilities $1,297 $1,314 Source: NM Department of Workforce Solutions – updated 5/2014

*Not in top 5 previous year—Transporting & Warehousing $1,314 was included on list

Top 20 Largest Employers

Industry Workforce 2013-2104

Workforce 2012-2103

Hobbs Municipal School 1,193 999

Halliburton Energy Service 608 450

City of Hobbs 431 413

Lea Regional Medical Center 423 425

Ferguson Construction Company 411 220

Nor-Lea Hospital 394 290

New Mexico Junior College 389 290

Walmart Supercenter 368 355

URENCO 362 325

Lea County 302 272

GEO 267 257

D&D Pipeline Construction 254 -

Nova Mud 225 -

Zia Racetrack & Black Gold Casino 216 248

McDonald’s Restaurants 215 -

Baker Hughes 183 -

Willbros 181 151

Lin-Mar 174 -

WCS 171 150

BJ Service Company 168 - Source: EDC of Lea County – updated 5/2014

- Data not available at time of printing

Lea County Average Rig Counts Month 2013-2014 2012-2013

May 34 24

April 36 25

March 35 20

February 41 27

January 40 29

December 34 31

November 33 31

October 35 33

September 29 37

August 33 28

July 31 25 Source: Baker Hughes – updated 5/2014

City of Hobbs Lodgers’ Tax 2013-2014 2012-2013

March $128,364.77 $120,461.16

February $114,198.07 $130,794.75

January $96,534.58 $135,707.87

December $120,548.05 $118,601.71

November $133,444.71 $137,986.28

October $118,721.03 $121,578.15

September $126,208.83 $132,698.52

August $129,798.14 $135,374.97

July $126,017.00 $135,951.84

YTD $1,093,835.18 $1,169,155.25 Source: City of Hobbs – updated 5/2014

2013-2014

Annual Report

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Certificate

Accounting & Consulting Group IBEW Local #611 Nuclear Waste Partnership LLC

Bobby Shaw Realty Intercontinental Potash Corp., USA Occidental Petroleum Corporation

Color Printer International Isotopes PEMCO of New Mexico

Constructors Inc. Johnson, Miller and Co. Pettigrew and Associates, P.A.

Daniels Insurance Inc. Joule Unlimited Technologies, Inc. RMS Foods, Inc.

Del Norte Heights, Inc. Lea County State Bank Robinson and Associates Real Estate

Elliott & Waldron Title Co., Inc. Lea Regional Medical Center Schubert Construction

Enrichment Technology US (ETUS) LEACO Steel Depot

First American Bank Leavell Insurance, Inc. Tate Branch Dodge Chrysler Jeep

Forrest Tire Inc. Lovington Economic Development Corp URENCO, USA

Geo Group, Inc. Maddox, Holloman & Kirskey PC Wallach Concrete, Inc.

Goff Dairy McVay Drilling Watson Truck and Supply

HB Construction* Me-Tex Oil & Gas, Inc. Wells Fargo*

Hobbs News Sun Newman & Company Western Commerce Bank

Hobbs Rental Nor-Lea Hospital Xcel Energy

Hungry Horse, LLC Nova Mud, Inc. Zia Natural Gas Company

Zia Park Race Track Hotel & Casino

Associate

Angell Ranch Lea Power Partners Richards Energy Compression LLC

Dalco, Inc. McDaniels & Associates, LLC Stellar Inc.

Enterprise Rent-A-Car McFadke Windscape Apartments

Fairfield Inn & Suites Noalmark Broadcasting Corp.—Hobbs Waste Management of New Mexico

Gary Don Reagan, PA Pioneer Bank Wells Fargo

Lea Community Federal Credit Union Rebecca Long Insurance Youngs Home

Rental Self Service Storage

Public Partners

Lea County City of Jal

City of Hobbs Town of Tatum

City of Lovington New Mexico Junior College

City of Eunice Hobbs Municipal Schools

*Indicates a new member or increased membership level in 2013-2014

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EDCLC Members

2013-2014

Annual Report

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Gary Schubert, Schubert Construction

Chair, Executive Committee

Sam Spencer, Lea County State Bank

Past Chair, Executive Committee

Monty Newman, Newman & Company

Vice Chair, Executive Committee

Finn Smith, Watson Truck & Supply

Secretary, Executive Committee

Paul Mason, URENCO, USA

Treasurer, Financial Management & Audit Committee Chair, Executive Committee

Tres Hicks III, Pettigrew and Associates, P.A.

Membership Committee Co-Chair, Executive Committee

Rafael Verde, Zia Park Racetrack Hotel & Casino

Membership Committee Co-Chair, Executive Committee

Staff

Melinda Allen, President & CEO

Sally Tomar, Director of Membership & Corporate

Services

Vicki Roig, FlyHobbs Representative

Delbert Briones, Coordinator of Digital Media &

Graphic Design

Mariko Kudo, Administrative Assistant

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2013-2014

Annual Report

2013—2014 EDCLC Board Members

Bobby Shaw, Bobby Shaw Realty

David Pyeatt, Elliott & Waldron Title Co., Inc.

David Shaw, Nor-Lea General Hospital

Gary Don Reagan, PA, Gary Don Reagan, PA

Robbie Robinson, Robinson & Associates Real Estate

Steve Laflin, International Isotopes

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energyplexnm.com Flyhobbs.com

Visit

200 E Broadway St., Suite A201

Hobbs, New Mexico

88240

Mail

P.O. Box 1376

Hobbs, New Mexico

88241

Call

(800) 443-2236

(575) 397-2039

Fax

(575) 392-2300

Email

[email protected]

Web

www.edclc.org