2018

TEM

PLE

ECON

OMIC

DEV

ELOP

MEN

T CO

RPOR

ATIO

N

ANNUAL

REPORT

TABLE OF

CONTENTSLetter from the Chairman

Board of Directors

Economic Overview

Business Development

Recruitment

Business Retention & Expansion

Annual Appreciation Luncheon

Workforce & Education Development

Marketing & Building Relationships

Collaboration

002

003

004

005

006

006

007

008

010

011

001ANNUAL REPORT 2018

DAVID NIX, CHAIRMAN

President, David Nix Agency

STEVE WRIGHT, CHAIRMAN–ELECT

Owner, Wright Builders

HARRY MACEY, TREASURER AND SECRETARY

President, Perry Office Plus

BOB BROWDER, EX-OFFICIO

President, Bell New Line Management, LLC

TIM DAVIS, MAYOR

Mayor, City of Temple

JUDY MORALES, MAYOR PRO TEM

District 2

ANDREJS AVOTS-AVOTINS, MD

VP Provider and Community Engagement,

Baylor Scott & White Health

SONJANETTE CROSSLEYTemple Reinvestment Zone #1

MICHELLE DIGAETANOOwner, Temple Machine Shop

TYLER JOHNSONVice President, BBVA Compass Bank

BRYNN MYERSCity Manager, City of Temple

BLAKE PITTSVice President, Matous Construction

RANDY RAMSEYVice Chairman of the Board, First State Bank

Central Texas

DOUG STREATERPresident/Chief Banking Officer, Extraco Banks

GARY SCHMIDTPresident, Central National Bank

WENDELL WILLIAMSChairman, Central National Bank

The Temple Economic Development Corporation (TEDC) is governed by a fifteen-member Board of Directors that are appointed by Temple City Council. Directors commit to serve a three-year term with no term limit. The current TEDC Board of Directors include:

Temple Economic Development is proud to have earned the distinguished title, Accredited Economic Development Organization (AEDO) from the International Economic Development Council (IEDC)

BOARD OF

DIRECTORS

The Temple Economic Development Corporation continues to contribute to the growth and prosperity of our community. As chairman of the board of Directors for TEDC, I have seen first-hand the impact this organization has had on this community and region. As we review our fiscal year Oct. 1, 2017 – Sept. 30, 2018, there are many positives to report.

This past year, TEDC continued to bring investment into the community. This investment not only came from economic incentives from TEDC, but also from working with prospects and current businesses to build and grow in Temple. We provide data to businesses that help them make informed decisions. We work with employers and educators to help maintain and grow our workforce. We work with our partners to promote Temple and the region.

The fiscal year also brought about a great deal of transition for our organization. We moved into the newly completed Santa Fe Business Center. The Santa Fe Business Center along with the Santa Fe Plaza and TISD administration building will no doubt be a major catalyst for the future growth of downtown Temple and our community as a whole. In addition to the building project and move, TEDC had a major leadership transition. Our past President/CEO, David Blackburn, left TEDC to become the Bell County Judge. After an eight-month national search, the TEDC board approved the hiring of Adrian Cannady as our new President/CEO.

Cooperation and collaboration are a huge part of what makes our community successful. TEDC will continue to focus on recruiting new businesses, retaining current businesses, developing a strong workforce, and marketing our community. On behalf of the board of directors of TEDC, I would like to thank the community for its continued support.

DAVID NIX Chairman of the Board

LETT

ER FR

OM TH

E

CHAI

RMAN

TEMPLE ECONOMIC DEVELOPMENT CORPORATION 003002 ANNUAL REPORT 2018

The Temple Economic Development Corporation understands that companies looking to build new facilities are searching for sites that are not only suitable for development but also want to avoid any obstacles in the development process. Temple EDC offers an array of services to businesses wishing to expand or relocate to the community.

Temple EDC has a certified site designation that serves as a pre-qualification, indicating that a property’s title is clear; that it possesses sufficient utilities and other infrastructure for industrial use, and that it is properly zoned and has adequate transportation access for such uses, among other criteria. Temple EDC’s Certified Site Program identified 49 sites in Temple’s Business and Industrial parks.

In FY 2018 Temple EDC aggressively executed recruitment efforts or assisted with expansion plans of four companies.

BUSINESS

DEVELOPMENT

*Excludes Panda Temple Power I & II

$164.9M

$16.55M

$21.2M

$90M

$49M

$51M

$18M

2018

2017

2016

2015

2014

2013

2012

CAPITAL INVESTMENTFive Year Summary for projects that Temple EDC had direct involvement

with and/or executed an Economic Development Agreement.

ECONOMIC

OVERVIEW

41,56

5

42,41

7

44,11

5

43,62

9

44,85

0

44,32

7

2013 2014 2015 2016 2017 2018

2003

2008

2013

2018

2023

59,114

69,215

75,295

81,279

85,106

2003

2008

2013

2018

2023

342,858

392,214

422,936

444,331

460,235

FY 2012

$16,967,401FY 2013

$18,017,625FY 2014

$18,981,471

FY 2015

$21,311,743FY 2016

$20,859,081FY 2017

$21,652,524

Temple

Waco

Austin

Dallas

Houston

Nashville

United States

San Diego, CA

Chicago, IL

New York, NY

86.5

91.6

98

105.1

96

98.4

100

144.5

121.5

238.3

COST OF LIVING COMPARISON

Source: ACCRA, 2018.2

SALES TAX REVENUE

Jobs grew by 3,198 over the last 5 years and are projected to grow by 4,262 over the next 5 years.

Regional average earnings per job are $6.6K below the national average earnings of $64.2K per job

44,327 JOBS (2018)

$57.5K AVERAGE EARNING PER JOB (2018)

With the 2023 estimated population of 85,106, the population will have grown

by 25,992 people which is a 44% growth.

Source: EMSI

TEMPLE POPULATION

KILLEEN-TEMPLEFORT HOOD MSA

004

Source: EMSI

Source: EMSI

Sour

ce: T

exas

Com

ptro

ller’

s O

ffic

e

TEMPLE ECONOMIC DEVELOPMENT CORPORATION

FY 2018

$21,831,626

005ANNUAL REPORT 2018

HUDSON MFG.

REYNOLDS CONSUMER PRODUCTS, LLC

TEMPLE BELLAIRE NORTH, LLC.

TOTAL CAPITAL INVESTMENT

$2.35M

$3.2M

$11M

$16.55M

$11M $3.2M

$2.5M

BUSI

NESS

RE

TENT

ION

& EX

PANS

ION

HUDSON MFG., LLC. - Headquartered in Temple, TX, Hudson Mfg., LLC will expand their small arms manufacturing facility with a capital investment of $2.3 million to include the purchase of over $2 million in automated machining equipment, and by adding 10 additional jobs averaging $50,000 per year. Hudson is located in Temple’s North Industrial Park off NW HK Dodgen Loop. Hudson Mfg is a veteran and woman run small business comprised of passionate and experienced subject matter experts. Hudson’s flagship H9 pistol is a patented unique design built from the ground up to create a better shooting platform. In keeping with their promise to Keep Advancing, Hudson recently announced the H9A. At 26 ounces, the H9A is a half-pound lighter than the all steel H9. Sporting premium polymer grip panels and a fiber optic front sight, the H9A provides a lightweight option to shooters looking for the flat shooting characteristics and premium trigger of the H9.

REYNOLDS CONSUMER PRODUCTS, LLC. - Reynolds Consumer Products will undergo a $3.2 million expansion project at the Reynolds Temple facility. The investment will purchase equipment for a new plastic film production line at 3000 Pegasus Drive as well as create 10 new positions. Reynolds Consumer Products was established in 2010 when two of the most trusted household brands, Reynolds® and Hefty®, joined together. The Temple facility opened in 1970, manufacturing the Hefty® brand which is most commonly identified with the brand’s famous waste bags. Hefty® is also a leader in food and storage bags, as well as disposable tableware.

WORKFORCE SOLUTIONS OF CENTRAL TEXAS - Workforce Solutions of Central Texas was rapidly outgrowing their current facility and will join the Temple Economic Development Corporation, and the Temple Chamber of Commerce in the newly constructed Santa Fe Business Center, leasing 76% of the facility. The 34,000-square-foot Santa Fe Business Center, a part of a $40 million-dollar redevelopment of the Santa Fe Plaza, is a $9 million-dollar capital investment project in Downtown Temple. The project is a partnership between the Temple Economic Development Corporation and the Temple Chamber of Commerce. Workforce Solutions of Central Texas will move into the facility as a tenant. Workforce Solutions of Central Texas components are designed to promote the delivery of programs and services to meet the needs of business, industry, and workers. These services are designed to place Texans in jobs and to equip those workers with the skills needed to foster economic development. Workforce Solutions of Central Texas works with employers, employees, and the general public to achieve these goals.

The Annual Industry Appreciation luncheon is to applaud the existing industries as key contributors to Temple. Three outstanding businesses are recognized for their contributions of investment, community service and workforce.

EXPANSION PROJECT OF THE YEARThe Expansion Project of the Year Award recognizes a Temple business with a significant expansion project for capital investment, equipment purchases and job growth in 2017.

Temple EDC recognizes Cargill Inc. for a $32 million-dollar expansion of their poultry feed manufacturing facility in North Temple. The investment will add the capability for agricultural retail and to serve beef customers to the current bulk turkey feed operation. The expansion will include construction of a 70,000 square foot addition for manufacturing, packaging, warehousing and shipping capabilities and thirty more jobs will be added throughout the expansion. Temple’s central location and transportation infrastructure were determining factors in choosing the location for the expansion. Construction is underway and should be complete in early 2019.

CORPORATE PARTNER OF THE YEARThe Corporate Partner of the Year Award is presented to a Temple business with substantial involvement in the local community, including active involvement or partnership with a community organization, such as a business organization, charitable organization or the school district

Temple EDC recognizes Johnson Brothers Ford for their support and involvement with United Way of Central Texas and their partnership with the CTE Automotive Practicum course at Temple High School.

Johnson Brothers Ford Lincoln has had a long running relationship with the United Way of Central Texas for many years. They began their workplace campaign over 30 years ago and have exceeded the giving amount of $20,000 for 9 consecutive years. In addition to their monetary support, their employees have participated in United Way’s Annual Day of Caring since 2007. They have been a large supporter of the United Way Chrome & Carols Fundraiser by sponsoring a tree for the last 4 years. This year Johnson Brothers was again recognized for the Largest Campaign of the Year in the Medium Business Category.

Johnson Brothers worked with the CTE program at Temple High School to review program TEKS (Texas Essential Knowledge and Skills) alongside TISD staff to align pathway courses in such a way to

TEMPLE BELLAIRE NORTH, LLC. – Temple Bellaire North, LLC. is a new retail development project consisting of multiple retailers, two hotels, and junior box anchors. The project is a $18,000,000 capital investment on just under 40 acres in North Temple across NE H K Dodgen Loop 363 from Buc-ee’s. The new Bellaire North development will be a beautiful transformation for Temple and I-35.

RECRUITMENTTOP 10 INDUSTRIES BY EMPLOYMENT

Health Care and Social Assistance

Retail Trade

Manufacturing

Government

Accommodation and Food Services

Construction

Administrative and Support and Waste Management and Remediation Services

Transportation and Warehousing

Finance and Insurance

Professional, Scientific, and Technical Services

INDUSTRY 2013 JOBS

9,535

4,632

4,739

4,160

3,182

2,572

1,820

1,517

1,331

1,595

2018 JOBS

11,035

5,316

4,678

4,283

3,796

2,755

1,884

1,666

1,497

1,401

2013-2018CHANGE

16%

15%

-1%

3%

19%

7%

4%

10%

12%

-12%

AVERAGEEARNINGS

$80,759

$32,627

$63,435

$69,465

$17,665

$75,072

$31,755

$49,166

$53,493

$71,305

TOP 5 GROWING INDUSTRIES

Management of Companies and Enterprises

Educational Services

Wholesale Trade

Arts, Entertainment, and Recreation

Real Estate and Rental and Leasing

INDUSTRY 2013 JOBS

400

220

899

201

503

2018 JOBS

912

335

1,234

259

632

128%

52%

37%

29%

26%

2013-2018 CHANGE

006 TEMPLE ECONOMIC DEVELOPMENT CORPORATION 007

ANNUAL APPRECIATION

LUNCHEON

ANNUAL REPORT 2018

EDUCATIONAL ATTAINMENTThe metro area also boasts many educational assets including two universities and two community colleges. When combined with strong public education systems and a commitment to career and technical education, these key elements ensure a consistent supply of young talent enters an already skilled and disciplined workforce each year. Concerning educational attainment, 14% of Killeen-Temple, TX residents possess a Bachelor’s Degree and 10% hold an Associate’s Degree (2% above the national average).

In 2017, there were 6,137 graduates in Killeen-Temple, TX. This pipeline has grown by 4% over the last 5 years. The highest share of these graduates come from General Studies, Registered Nursing/Registered Nurse, and Criminal Justice/Safety Studies.

EDUCATIONAL ATTAINMENT BY LEVEL

COLLABORATION AND PROGRAMMINGThe Temple Economic Development Corporation has made a strong commitment to workforce development. A strong educational infrastructure and a prosperous community go hand in hand. More importantly research indicates that a high level of business involvement in education improves student achievement. Much of our efforts are invested in working to get industry and education at the same table and developing highly skilled labor to support our efforts in recruitment and retention of industry.

P20 CENTRAL TEXAS REGIONAL COUNCILThe term “P20” describes an initiative by educators and industry leaders that works to build pathways from pre-school to the workplace with the goal of providing a more skilled workforce in Center Texas. The Temple Economic Development Corporation has a place on the Board of Directors and participates and sponsors events throughout the year that included:

• Sponsored career day for area High School students held at Temple College and Central Texas College.

• Sponsored the Annual Workforce Readiness Conference hosted by Central Texas A&M University.

WORKFORCE& EDUCATION DEVELOPMENT

2016 KILLEEN/TEMPLE LABOR FORCE BREAKDOWN

Jobs grew by 3,198 over the last 5 years and are projected to grow by 4,262 over the next 5 years. As vast as the Killeen/Temple labor shed is the impact of Fort Hood cannot be overlooked. Fort Hood provides a ready-made job pool of exiting military personnel that are well-trained and highly skilled; approximately 500 military personnel separate from Fort Hood every month looking for civilian employment. Over 35 percent of those exiting have indicated a preference for remaining in the Central Texas area.

Total Working Age Population 339,288

Not in Labor Force (15+) 159,831

Labor Force 179,457

Employed 173,097

Unemployed 6,360

Under 15 100,833

Less Than 9th Grade 5% 14,554

9th Grade to 12th Grade 6% 16,739

High School Diploma 28% 77,773

Some College 29% 78,221

Associate’s Degree 10% 28,537

Bachelor’s Degree 14% 38,849

Graduate Degree and Higher 7% 19,016

% OF POPULATION POPULATION

Population

008 TEMPLE ECONOMIC DEVELOPMENT CORPORATION 009

efficiently meet workforce demand. They advised on renovations to THS CTE Automotive facility to align with industry standards and serve on the CTE Advisory council to link education with business & industry. Beginning in the 2018-2019 school year Johnson Brothers will be a curriculum partner with the Automotive practicum course and engage students in hands-on work-based learning at the Johnson Brothers service center throughout the year 2 days a week. Upon graduation, students will have the opportunity to become permanent employees on the Johnson Brothers team.

EXCELLENCE IN WORKFORCEThe Excellence in Workforce Award recognizes a Temple business with notable success in workforce development. This success can be in new job growth, education and training programs for employees, or a unique workforce initiative.

Temple EDC recognizes TTEC for their hiring of more than 800 customer care associates at the Temple location since opening in August 2017. TTEC associates benefit from immersive training and tuition reimbursement programs aimed at talent development and career advancement opportunities. Training Development Programs are in place to assist in developing associates to provide a human touch and create a relationship between the customer and their client brand.

The Temple team serves the senior population over 65 by helping interested customers understand features and benefits of Medicare Advantage, Medicare Part D Prescription Drug Plan (PDP), Medicare approved discount drug card programs, and other related programs. They handle approximately 400,000 calls per year and provide telesales as well as lead generation for field agents. They also support pharmacy benefits with customers and are available to provide member services 7 days a week, up to 16 hours a day.

SANTA FE BUSINESS CENTER AT SANTA FE PLAZAThe Temple Economic Development Corporation (Temple EDC) and Temple Chamber of Commerce officially moved into new offices in the Santa Fe Plaza in downtown Temple. The Plaza is a multi-functional area, anchored by the Santa Fe Depot and flanked by the new Santa Fe Business Center and Temple ISD’s new administrative building. Plaza construction is expected to be complete in early spring 2019.

The project team for the office building includes Stantec, Architect & Structural Engineers; American Constructors, Construction Manager; KPA Engineers, Civil Engineers and Hendrix Consulting Engineers, MEP Engineer. The project is financed by Central National Bank, Extraco Banks, First State Bank Central Texas, Texas First State Bank, Texell Credit Union and Union State Bank.

90k

80k

70k

60k

50k

40k

30k

20k

10k

0

2018 Population 2023 Population

LESS THAN9TH GRADE

9TH - 12TH

GRADEHIGH

SCHOOLSOME

COLLEGEASSOCIATE’S

DEGREEBACHELOR’S

DEGREEGRADUATE

DEGREE AND HIGHER

ANNUAL REPORT 2018

TEMPLE ISD INDUSTRY ADVISORY COUNCILThe Temple EDC serves on the Industry Advisory Council for TISD. The Council is composed of Temple industry leaders and its role is to advise, assist, support and advocate for the Temple ISD Career and Technology program and its initiatives.

TEMPLE ISD 8TH GRADE CAREER FAIRIn January of 2018 the Temple EDC in partnership with the Temple Chamber of Commerce participated in the 8th Grade Career Fair at Temple High School. The Career Fair has become an annual event that seeks to raise awareness about optional career clusters as well as opportunities to earn direct-to-work certifications and college credits while in high school. Local industries are encouraged to participate in the event to help students identify not only potential careers in the community but learn more about the companies, their expectations of employees and the industries that they represent. The three-day event served 685 local students. Companies that committed their time and resources are Acer America, Baylor Scott & White Health, Baylor Scott & White Sports Care, iZone Imaging, McLane Intelligent Solutions, Primoris Heavy Civil, Panel Specialist Incorporated, and Wilsonart International.

TEMPLE EDC ATTENDED:AUSA ANNUAL MEETING AND EXPOOctober 2017Washington D.C.

2017 CONSULTANTS FORUM24St. Petersburg, FLDecember 2017

PLASTECWEST 2018, MDM WEST, PACK WEST, ATX WEST, AEROCON WESTFebruary 2018Anaheim, CA

ICSC/RECON CONFERENCE AND DEAL MAKINGMay 2018Las Vegas, NV

2018 BIO INTERNATIONAL CONVENTIONBoston, MAJune 2018

AUSTIN RETAIL LIVEAustin, TXAugust 2018

MARKETING & BUILDING RELATIONSHIPS

Choosetemple.com encountered 16,826 sessions in FY 2016 and 13,210 new users in FY 2017 it increased to 18,188 sessions and 14,306 users.

GRAND CENTRAL TEXAS - Temple Economic Development Corporation partners with six economic development organizations: Belton Economic Development Corporation, Cameron Industrial Foundation, Killeen Chamber of Commerce, Copperas Cove Economic Development Corporation, Harker Heights Chamber of Commerce and Greater Waco Chamber of Commerce to form the regional group Grand Central Texas. Through Grand Central Texas, tradeshows, conferences and one-on-one meetings, Temple EDC has successfully communicated the positive attributes of relocating or expanding a business in Temple, TX. Building these relationships will bolster the local economy for years to come.

COLLABORATION

COMMUNITY PARTNERS:

010 TEMPLE ECONOMIC DEVELOPMENT CORPORATION 011

2017115 POSTS

201888 POSTS

20172,300 FANS

20182,663 FANS

20174,300 ENGAGEMENTS

201813,748 ENGAGEMENTSFA

CEBO

OK

ANNUAL REPORT 2018

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TEMPLEKILLEEN

MCGREGOR

BELTONCAMERON

HOUSTON

AUSTIN

DALLAS

SAN ANTONIO

FORT WORTH

WACO

TEMPLE ECONOMIC DEVELOPMENT CORPORATION201 Santa Fe Way Suite 103, Temple, TX 76501

(254) 773-8332www.ChooseTemple.com