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Jennifer S. CowleyAssistant Research Scientist
Laura K. NoblesGraduate Research Assistant
Texas A&M University
June 2001
© 2001, Real Estate Center. All rights reserved.
Real Estate Market Overview
VictoriaReal Estate Market Overview
Victoria
Real Estate Market Overview
Victoria
Population
Employment
Job MarketMajor Industries
Business Climate
Education
Transportation and Infrastructure Issues
Urban Growth PatternsMap 1. Growth AreasPublic Facilities
Housing
Multifamily
Manufactured HousingSeniors Housing
Retail MarketMap 2. Commercial Building Permits
Office MarketIndustrial Market
Conclusion
Contents
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Real Estate Market Overview
Victoria
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US 77
US 87
US 59
US 87
US 59
SH 463
Victoria
Jennifer S. CowleyAssistant Research Scientist
Laura K. NoblesGraduate Research Assistant
Real Estate Market Overview
VictoriaReal Estate Market Overview
Victoria
CountyVictoria
Area Cities and Towns
BloomingtonDacosta
InezMcFaddin
Mission ValleyNurseryPlacedoTelfernerVictoria
Land Area of Victoria MSA887 square miles
Population Density (2000)95 people per square mile
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Kelly Air Force Base, San AntonioPOPULATION
Victoria MSA Population
Year Population
1990 74,5631991 75,5851992 76,9231993 78,0131994 79,1531995 79,6161996 80,3401997 80,6491998 81,6721999 82,0872000 84,088
Source: U.S. Census Bureau, May 2001
Victoria grew at a rate slowerthan the state as a whole overthe past decade. Growth in the
Victoria MSA from 2000 to 2010 is
projected to be 16 percent, accordingto the Texas State Data Center. TheTexas Water Development Boardpredicts a slower rate of 6.5 percent.
Victoria, the second oldestincorporated city in Texas,celebrated its 176th birthday in
October 2000. The total population ofthe Victoria MSA was 84,088 in 2000.More than 182,000 people live in theseven-county region known as the“Golden Crescent,” which surrounds
the Victoria MSA. Calhoun, DeWitt,Lavaca, Gonzales, Jackson, Victoriaand Goliad Counties are in this region.
Victoria is known as the “Crossroadsof the Coastal Bend” because of itsproximity to major areas such asAustin, San Antonio, Corpus Christi,Port Lavaca and Houston, most of
which are within 120 miles. More thanseven million people live within a 150-mile radius of Victoria, which is 25miles from the Gulf of Mexico. TheVictoria metropolitan area is expectedto grow about 16 percent between2000 and 2010; between 1990 and2000, Victoria grew 13.1 percent.
The Victoria MSA experienced steadygrowth in the past, and the rate isexpected to remain steady for the nextseveral years.
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Texas Metropolitan Area Population Change, 1990–2000 (in percent)
McAllen-Edinburg-Mission 48.5 Galveston-Texas City 15.1Austin-San Marcos 48.2 Tyler 15.5Laredo 44.9 El Paso 14.9Dallas 31.5 Corpus Christi 14.3Brownsville-Harlingen-San Benito 28.9 Victoria 13.1Brazoria County 26.1 Waco 12.9Houston 25.8 Texarkana 9.4Fort Worth-Arlington 25.1 Lubbock 9.0Bryan-College Station 25.1 Wichita Falls 7.8Texas 22.8 Longview-Marshall 7.7Killeen-Temple 22.6 Beaumont-Port Arthur 6.6San Antonio 20.2 Abilene 5.8Sherman-Denison 16.4 San Angelo 5.6Amarillo 16.2 Odessa-Midland 5.1
Source: U.S. Census Bureau
Victoria MSA Projected Population
Texas State Texas WaterYear Data Center Development Board
2005 91,945 —2010 97,875 89,5392015 102,175 —
2020 105,760 96,977
Sources: Texas State Data Center and Texas Water Development Board
Projected Population Growth, 2000–2020(in percent)
Source: Texas State Data Center
25.8
40.2
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Victoria MSA Texas
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Household Composition
Victoria MSA Texas
Median household size (1990) 2.8 2.79Median age 31 33
Population younger than 18(1999, in percent) 30.0 28.5
Population 65 and older(1999, in percent) 11.9 10.1
Source: U.S. Census Bureau
Ethnic Distribution (in percent)
Victoria MSA TexasEthnicity 1990 2000 1990 2000
White 53.9 52.9 60.8 52.4Hispanic 37.9 39.2 25.3 32.0Black 7.5 6.1 11.7 11.3Asian 0.3 0.8 0.3 2.7American Indian 0.2 0.2 1.8 0.3Other 0.2 0.0 0.1 0.2Two or more races* — 0.7 — 1.1
*For the 2000 Census, the Census Bureau changed the “race” options, allowing people toreport their race as “other” or as two or more races.
Source: U.S. Census Bureau
Victoria County’s per capitaincome for 1999 was $25,273.The state average per capita
income for 1999 was $26,834, accord-
ing to the U.S. Bureau of EconomicAnalysis. Minimal changes occurred inthe MSA’s ethnicity makeup between1990 and 2000. The biggest percentage
change was in the Hispanic popula-tion, which grew by 1.3 percentagepoints during this time.
5
EMPLOYMENT
Victoria MSA Unemployment Rate(in percent)
Source: U.S. Bureau of Labor Statistics
Victoria MSA Employment
Source: U.S. Bureau of Labor Statistics
05,000
10,00015,00020,00025,00030,00035,00040,00045,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
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Bergstrom Air Force Base, AustinTop Ten Employers Top Ten Private Employers
Victoria Independent School District Inteplast GroupEducation Plastic products2,000 employees 1,900 employees
Inteplast Group Formosa PlasticsPlastic products Petrochemical-plastics1,900 employees 1,646 employees
Formosa Plastics E. I. Dupont de NemoursPetrochemical-plastics Petrochemicals1,646 employees 1,151 employees
E. I. Dupont de Nemours Dow Union Carbide Corp.Petrochemicals Petrochemicals1,151 employees 1,047 employees
Dow Union Carbide Corp. AlcoaPetrochemicals Aluminum-alumina1,047 employees 963 employees
Alcoa Kaspar Wire WorksAluminum-alumina Metal works-plating963 employees 809 employees
Citizens Medical Center H. B. Zachary CompanyHospital Construction904 employees 759 employees
Kaspar Wire Works Brown & RootMetal works-plating Construction809 employees 718 employees
H. B. Zachary Company Columbia-DeTar HospitalConstruction Hospital759 employees 650 employees
Brown & Root H-E-BConstruction Grocery Stores718 employees 500 employees
Employment Growth by Industry Victoria MSA Texas
Employment growth, 2000 (in percent) 2.4 3.2Unemployment rate (in percent) 3.5 4.3New jobs in 2000 900 288,900Employment growth by sector, 2000 (in percent)
Services 2.9 4.7 Trade 0.0 3.1 Manufacturing 0.0 0.1 Mining 20.0 2.3 Finance, insurance and real estate 0.0 1.3 Construction 4.2 6.2 Government 3.0 1.7 Transportation, communications and public utilities 11.1 5.1
Source: Victoria Economic Development Corporation 2/01
Sources: Texas Workforce Commission
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Texas Metropolitan Area Employment Change, 1990–2000(in percent)
Austin-San Marcos 58.8 El Paso 15.4Laredo 40.3 Waco 14.3McAllen-Edinburg-Mission 35.8 Lubbock 14.0Dallas 30.4 Sherman-Denison 12.5Brownsville-Harlingen-San Benito 30.1 Longview-Marshall 12.2Bryan-College Station 29.2 Abilene 11.4Killeen-Temple 28.7 San Angelo 10.7San Antonio 28.6 Corpus Christi 10.3Fort Worth-Arlington 23.7 Galveston-Texas City 8.2Texas 23.3 Wichita Falls 7.8Tyler 22.9 Odessa-Midland 6.5Victoria 22.4 Texarkana 4.5Houston 22.1 Beaumont-Port Arthur 3.5Amarillo 18.6 Brazoria County 2.3
Source: U.S. Bureau of Labor Statistics
Job growth in the area has beenoccurring at a rate similar to thestate’s rate. Four of the MSA’s ten
largest private employers are petro-chemical and plastics plants. Thesecond largest employer, InteplastGroup, is located in nearby JacksonCounty, and the third largest privateemployer is in Point Comfort. The fifthlargest employer, Dow Union Carbide,is in Calhoun County. Other signifi-cant Victoria area employers includeDupont, Alcoa, Victoria Regional
Medical Center, Victoria College,Central Power and Light, City ofVictoria, County of Victoria, H-E-B,Super Kmart and Super Wal-Mart.
The Victoria Economic Develop-ment Corporation anticipates theaddition of 26,000 jobs by 2025.Employment increased nearly 2.6percent from 1999 to 2000 to 42,421.According to the U.S. Bureau of LaborStatistics, civilian employment hasincreased an average of 2.2 percentper year since 1990. The Texas
Workforce Commission estimatesnonagricultural employment increased2.4 percent from 1999 to 2000 to37,300.
Unemployment has steadily de-clined since 1997 in the Victoria MSA.In 2000, the average unemploymentrate was 3.5 percent, down from 4.2percent in 1999. Victoria reached itslowest unemployment rate of the1990s with a 3.4 percent unemploy-ment rate in December 1999.
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JOB MARKET
MAJOR INDUSTRIES
The Port of Victoria IndustrialPark, located along the VictoriaBarge Canal, has 250 acres of
lease property for the development.The infrastructure is being developedfor this park that will bring more jobs tothe area.
AT&T purchased SmarTalkTeleservices, formerly NorCrossTeleservices, and hoped to fill 35 ofthe 45 terminated positions during2000. The company is now owned byInterim and is working towardsaggregate employment of 350.
Victoria was a new U.S. CensusBureau field office site. The office,located in One O’Connor PlazaBuilding, temporarily employed about200 people between October 1999and November 2000. Several newrestaurants opened in Victoria in 2000.
Prescott’s Orthotics/ProstheticsCompany, located at 116 ImperialDrive, opened in Victoria in July of2000. The store is one of four acrossthe state for the San Antonio chain.The new Albertson’s shopping centerwill bring hundreds of jobs to the area.
Mid Texas Coast Commerce andDevelopment Inc., a non-profitcorporation, was formed in May 2000.The corporation will manage a fast-response program created to attractbusinesses to the Victoria RegionalAirport. New buildings for companieswanting to locate near the airportcould be built in a matter of months onan undeveloped 80-acre site.
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Running Rotary Rigs, Victoria Area
Source: Baker Hughes
Service, trade, governmentservices and manufacturing nowdominate the Victoria market,
which has traditionally been based inagriculture and oil and gas production.
The service sector makes up 29percent of total nonagriculturalemployment; trade makes up 26percent and local government makesup 15 percent. Victoria companies
draw employees from within anestimated 50-mile radius.
Mining grew by 20 percent between1999 and 2000, adding 400 jobs in2000 alone. This increase was largely
9
BUSINESS CLIMATE
Tax Rates, 2000
Tax Rate per $100Taxing Entity Valuation
City of Victoria $0.70
Victoria ISD 1.53
Victoria College 0.14
Victoria County 0.29
Total $2.66
Source: Victoria County Appraisal District
because of the increase in oil prices.Although the overall Texas economyhas experienced a 5 percent decline inthe mining sector, Victoria’s miningemployment (primarily through oil andgas production) rose 20 percentbetween 1999 and 2000 and repre-sents 4 percent of Victoria’s employ-ment. Victoria ranks second among the27 Texas MSAs in mining employ-ment, behind Midland-Odessa. The oilindustry, though not the giant producerit once was, currently provides about2,000 area jobs.
The services sector added 300 jobsin 2000. Medical centers are majorservice employers in the area. Threelocal hospitals, De Tar Hospital,Victoria Regional Medical Center andCitizen’s Medical Center, support thehealth service industry. De TarHospital, a privately owned, 211-bedhospital that has serviced the areasince 1925, employs more than 650people. Victoria Regional MedicalCenter, the area’s newest healthcarefacility, has 156 beds and employsabout 450 people. Citizen’s MedicalCenter is a not-for-profit, 368-bedhospital with a staff of 900. Victoriahas the highest number of family
doctors per capita in Texas and rankssixth nationally.
Wholesale and retail trade repre-sents 26 percent of nonagriculturalemployment in the Victoria area; thegovernment sector is the third largestemployer. Federal, state, county andcity governments employ 15 percent ofthe area’s nonagricultural workforce.Employers in this sector includeVictoria College, University ofHouston at Victoria, Victoria CountyJail and the county’s juvenile detentioncenter.
Manufacturing and construction areother sectors in the economy. Eightpercent of nonagricultural employ-ment is in the manufacturing andconstruction sectors, making them thefourth and fifth largest employers.Local manufacturers include TexasConcrete and CMC Steel Fabricators.Recent restorations of the VictoriaCounty Courthouse and other businessconstruction and expansions haveadded to this sector. Construction hada 4.2 percent growth rate between1999 and 2000.
Several area construction projectsinvolve churches. The Mid-Town
Church of Christ is building on MainStreet. The Family Worship centerbroke ground on Sam Houston Drivein February 2000. The Islamic Centercompleted a new mosque on Airlinenear Main Street in 2000. Our Lady ofSorrows Catholic Church is building anew facility, and the Holy FamilyCatholic Church is expanding itsactivity center.
Area agriculture consists primarily offeed crops and beef production,according to the County ExtensionProgram Councils. Feed crops ac-counted for 24 percent of the area’stotal 1997–2000 agricultural receipts.The projected 2001 total value for feedcrops will be $6.8 million. Corn andcotton are Victoria County’s twodominant crops. Corn represented11.1 percent of agricultural receipts,while cotton accounted for 20.2percent. Rice, soybeans and cottonalso are grown in the area. Beefproduction accounts for 39.7 percentof total agricultural receipts. For 2001,agricultural receipts are expected tototal $35 million, up 12.8 percent from2000.
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Victoria MSA Retail Sales
Year Total Sales Sales per Capita
1990 $604,519,641 $8,107
1991 625,355,812 8,274
1992 654,514,912 8,509
1993 718,879,878 9,215
1994 798,917,517 10,093
1995 851,079,068 10,690
1996 910,154,545 11,329
1997 935,134,142 11,595
1998 982,749,815 12,033
1999 1,070,924,218 13,046
2000* 767,862,686 — State Average 1999 $12,332
*Through third quarter 2000Source: Texas Comptroller’s Office
Victoria is a regional shoppingand medical center. Accordingto the Victoria Chamber of
Commerce, the average retail sales perhousehold figure for 2003 will be$38,366. This figure is a 23 percentincrease over the 1998 average retailsales per household figure of $31,233.The sales tax rate in Victoria is 8.25percent.
The Victoria Convention andVisitors Bureau tracks the area’s majorevents and conventions and calculatesthe daily expenditure rates for conven-tion delegates, overnight tourists anddaytime tourists. The average dailyexpenditure for a convention partici-pant is $114.65; for an overnighttourist, $97.10; and for a daytimetourist, $49. Victoria has more than68,000 square feet of convention andexhibit space and more than 1,068hotel and motel rooms to accommo-date visitors. Currently, the area hasthe Community Center Dome thataccommodates about 1,200 people.The hotel-motel tax rate in Victoria is
13 percent, generating over $715,000in annual revenue.
The foreign trade zone (FTZ) inVictoria County works as an economicdevelopment tool, assisting areabusinesses and eliminating customsduty or excise taxes. The City ofVictoria also is in a state-designated8.7-square-mile Texas EnterpriseZone. The University of Houston SmallBusiness Development Center workswith new and start-up companies. TheVictoria Chamber of Commerce andthe Victoria Economic DevelopmentCorporation promote the area’s low-cost transportation, human resources,educational resources, technologicaldiversity, urban amenities, small-townfriendliness and business develop-ment.
Other incentives available in theVictoria area include selected use ofsales tax revenues dedicated toeconomic development, permitassistance, regional revolving loanfunds, state sales tax and use taxexemptions and tax abatement. The
area offers several programs to assistbusinesses, including the TexasCapital Fund Real Estate Program, theTexas Capital Fund InfrastructureProgram, the Skills Development Fundand the Smart Jobs program.
Several museums and sites drawvisitors to Victoria. The McNamara-O’Connor Historical and Fine ArtsMuseum has a collection of docu-ments and artifacts from the Spanish,Mexican and Texan cultures andfeatures an 1876 Victorian homestead.The Nave Museum is named afterRoyston Nave, a Victoria painter in the1920s who achieved fame in NewYork art circles. Additional attractionsinclude the St. Louis Fort and basstournaments by Coleto Creek. The firstChildren’s Festival was held inOctober 2000. Organizers hope it willbecome an annual event. The Cham-ber of Commerce is planning to bringback the popular Armadillo Festival in2002.
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EDUCATION
Local College and University Enrollment
Fall 2005 2010 2015School 2000 (estimated) (estimated) (estimated)
Victoria College 3,805 4,098 4,073 4,107
University of Houston at Victoria 1,700 1,878 2,014 2,129
Texas Vocational Schools 160 N/A N/A N/A
Sources: Educational institutions and the Texas Higher Education Coordinating Board, January 2001
The Victoria area is home to threeinstitutions of higher education –Victoria College, the University
of Houston at Victoria and the TexasVocational Schools. Victoria College,a two-year community college, wasestablished in 1925 and offers a one-year certificate, certificate of generalstudies, associate of arts, associate ofscience and associate of appliedscience degrees. The College ServicesBuilding, a 24,000-square-footstructure, will replace the soon-to-be-demolished General Services Building.The new building consists of a combi-nation of maintenance shops, centralreceiving and storage, media services,HVAC and classrooms. The projectwas completed in April 2001.
Victoria College also plans to build a34,000-square-foot Technology Centerwith classrooms, faculty offices and
computer labs. The center will houseall technology-related classes. TheAdministration I building is beingrenovated and will become theMuseum of the Coastal Bend. Theoffice of the president, the develop-ment office and the recruiting andmarketing offices will move to therenovated Administration AnnexBuilding. In conjunction with the newconstruction, interior roadways oncampus are being redirected and manyparking lots are being expanded.
The University of Houston-Victoriaoffers junior- and senior-level under-graduate and graduate programs inbusiness administration, education,arts and sciences. In 2000, the univer-sity remodeled portions of the Univer-sity West Building for approximately$200,000 and the Center for Commu-nity Initiatives for $50,000. No new
construction is planned for 2001. TheTexas Higher Education CoordinatingBoard expects enrollment at Universityof Houston-Victoria to increase bynearly 6 percent to more than 1,650students by 2005.
Texas Vocational Schools, foundedin 1967, offers day and night classes inbusiness, electronics and welding.Enrollment for the school averagesfrom 180 to 240 students per year. Thebusiness and electronics programs arelocated on the main campus in a13,144-square-foot building. TheTexas Vocational Schools extensionfacility, specializing in welding, islocated near downtown in a 3,300-square-foot building.
Educational Level, Persons Age 25 and Older(in percent)
Level of Education Victoria MSA Texas
High school graduate 28.1 25.6
Some college, no degree 21.6 21.1
Associate’s degree 6.3 5.2
Bachelor’s degree 10.0 13.9
Graduate or professional degree 4.1 6.5
Source: U.S. Census Bureau, 1990
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TRANSPORTATION AND INFRASTRUCTURE ISSUES
Victoria Airline Boardings
1997 1998 1999 2000
Victoria Regional Airport 22,482 24,181 20,962 19,467
Source: Victoria Regional Airport
Port Activity
1997 1998 1999 2000
Number of bargesPublic deep water port 588 543 493 595
Source: Port of Port Lavaca-Port Comfort
Victoria has two wastewatertreatment plants with a sewersystem capacity of approxi-
mately 11.6 million gallons per day.Victoria recently removed a 500,000-gallon elevated water storage towerand is replacing it with a one-milliongallon tower. This project was ex-pected to be completed in April 2001.The new tower is on the northwest sideof town on Highway 87. This projectcost approximately $1.2 million.
The City of Victoria implemented asix-part sewer line expansion projectin early 1999. This project added a linefrom the regional sewage plant on U.S.Highway 59 North extending past theintersection of Mockingbird Lane toLoop 463 on the north side of town.The sewer rehabilitation project iscompleted, and the sewer replacementproject was to be completed by April2001. Phase one of the remaining fouris currently under construction. Theadditional phases should be com-pleted by October 2003. The expan-sion will accommodate an additional25,000 people in the area and willhelp the city prepare for growth.
A water treatment plant for Victoriais nearing completion and may becompleted by June 2001. The entireproject is expected to cost $36 millionand will include a water treatmentplant, water tower, two pump stationsand three transmission mains.
The Gulf Coast Aquifer is currentlyVictoria’s primary water source. Aftercompletion of the project, the GulfCoast Aquifer will become thesecondary source, and the primarysource will be the Guadalupe River.The City of Victoria has gained run-of-the-river rights to 20,000 acre-feet ofwater from the Guadalupe, which willbe blended with groundwater to meetthe city’s demands. It is expected thatthe city will meet its water demandsthrough 2040 with its use of ground-water, surface water from theGuadalupe River and an effectivewater conservation program.
More than $6.5 million in sales taxfunds was allocated for street, drainageand sewer projects in 2000. Thisbudget, set in late 1999, was $700,000higher than the previous year’s budget.The new projects include a Vine Streetsewer project ($2 million), WhisperingCreek construction project ($1.7million), business developmentprojects ($300,000), workforceeducation projects ($300,000) and theAlan Miller Drive construction project($200,000). The Guy Grant Roadconstruction project cost $2 millionand was completed in early 2001.
A $30 million bond issue waspassed in 2000 and will be used for theSam Houston Drive project; Mayfairsubdivision water, sewer, and drain-age improvements; Northcrest Estate
improvements; West outfallWoodlawn area drainage improve-ments; Lonetree drainage; and BenJordan street improvements. The $50million in improvements will befinanced by the bond money, the half-cent sales tax and general funds.
In Victoria County, $1 million willbe spent over the next five years to stoperosion and flooding along 13 miles ofMarcado Creek.
Victoria is served by U.S. highways87, 59 and 77. The proposed highwayI-69, which would run from Mexico toCanada, would run through or near thecity.
According to the Victoria EconomicDevelopment Corporation, severalprojects are planned by the TexasDepartment of Transportation. Thedepartment is constructing a left turnlane for Loop 463 to Nursery that willcost an estimated $1.8 million andshould be completed by summer2001. The department also plans torenovate the rest area southwest ofInez on U.S. 59.
Scheduled future constructionincludes the $21.9 million expansionof Loop 463 from U.S. 87 to FM 1315and upgrading the road to a full accesscontrol freeway. U.S. 59 from Spur 91to Loop 463 will be upgraded to a four-lane divided highway with an overpassat U.S. 77 at a cost of $7.1 million. Thearea from Loop 463 to FM 237 on FM
13
236 will have shoulders and a left-turnlane added at a cost of $4.5 million.U.S. 77 from Spur 91 to Refugio willhave highway safety improvementsadded at a cost of $290,000. Theseprojects are scheduled to be com-pleted by 2006.
Victoria Regional Airport providesdirect service to Houston’s BushIntercontinental Airport via Continen-tal Express. The Victoria airport had arecord year in 1998, but the 2000enplanement figure of 19,467 was 8percent fewer than 1999. ContinentalExpress reduced its night flights, andthe airport canceled the evening flightthat departed around 7 p.m.
Victoria Airport purchased fire-fighting equipment after receiving a$250,000 grant in 1999. The airporthas undergone a $300,000 cleanup,primarily the demolition of oldbuildings, by the U.S. Army Corps ofEngineers. For the past two years, thecounty has also been cleaning up theairport.
In November 1999, the VictoriaCounty Commissioners Court ap-proved a project to spur economicdevelopment around the airport. Thefast-response program was created toattract new businesses and industriesto the airport by speeding up thebuilding process. The plan allows newbuildings ranging in size from 60,000to 120,000 square feet to be built in asfew as 120 days and creates a newgovernmental entity that issues bondsfor development projects. In responseto this new program, JTJ Limited hasplans to build a new facility at theairport.
Nearly $36 million will be spent todeepen the Victoria Barge Canal. Thecanal, a man-made sea-level canal, isa vital component connecting Victoriato the Gulf Intracoastal Waterway.Equalizer Inc., DuPont, EquistarChemicals, Fordyce Co., BP Chemi-cals, Seadrift Coke and Dow UnionCarbide use the barge canal to receivegases, chemicals and other products,according to the Victoria EconomicDevelopment Corporation. The canalwill be widened from 100 to 125 feetand deepened from nine to 12 feet.The project will be completed in 2002.
The Fordyce Company owns andoperates two canal locations inVictoria County at Old BloomingtonHighway and FM 1432. These twolocations ship sand and gravel andmoor barges. The Union CarbideSeadrift Plant slip and Airco CarbonSeadrift Plant coke dock are located onthe Victoria Barge Canal extendinginto neighboring Calhoun County.
According to the Victoria EconomicDevelopment Corporation and theVictoria Navigation District, canalactivity increased nearly 10 percentbetween 1999 and 2000. The totalnumber of barges for 2000 wasapproximately 4,400. During 2000,5.24 million short tons of transfercargo traveled through the canal.Canal activity in 2000 was 18 bargesper day, up from ten barges a day in1998. The navigation district plans tolevy a property tax for maintenanceand repairs of the canal turning basin,docks, roads, lift bridge and thedistrict’s 400 acres. The tax will be4.18 cents per $100 in property
valuation. A total of $40 million hasbeen appropriated for improvements tothe Port of Victoria and the channel.
The canal gives the Victoria areaaccess to the Port of Port Lavaca-PointComfort, the fifth largest public portfacility on the Texas Gulf Coast,located 30 miles from Victoria. Theport recently completed a $65 millionexpansion and offers a 1,000-footliquid cargo shipping pier, liquid bargeterminal facilities and a 506-foot heavylift dock. A $30 million terminal tankfarm and terminal project was com-pleted in July 2000. The projectprovides an onsite tank farm allowingfor storage and shipment of liquids.Point Comfort operates in Lavaca Bay.It is owned and operated by Alcoa,which receives bauxite, fluorspar,liquid caustic soda and limestonethrough the port.
Port Lavaca has two major portowners, H. B. Zachry Marine, Inc. andthe City of Port Lavaca. The H. B.Zachry Marine Mooring Basin moorsmiscellaneous vessels and barges forstorage and repair. The Lavaca ShrimpCompany also operates in the port,receiving seafood and mooring fishingvessels. A seafood processing plant islocated at the rear of the Port LavacaMunicipal Harbor. The Port of PortLavaca-Point Comfort has grownconsiderably. The port estimates it willgrow an additional 50 percent by2005.
Companies located along theVictoria Barge Canal have access torail service provided by Union Pacific-Southern Pacific and BurlingtonNorthern-Santa Fe.
14
Map 1. Growth Areas
Source: Real Estate Center at Texas A&M University
Victoria, TexasCensus PlaceHighway
US 59
US 77
US 87
US 87US 87
US 59
SH 463Commercial
Commercial
Residential
Residential
Industrial
Residential development hasbeen occurring mostly in thenorthern portion of Victoria
(Map 1). Most retail development is
occurring along the Navarro corridor.Overall, new development is occur-ring in the north and northeast portions
URBAN GROWTH PATTERNS
of Victoria, along U.S. Highway 77and is a combination of residential andcommercial growth.
PUBLIC FACILITIES
The Old Victoria County Court-house has been an ongoingdowntown restoration project.
The courthouse was dedicated inMarch 2001. The cost of the six-yearrestoration reached more than $5.5million. The courthouse entranceswere remodeled, and the war monu-ments refurbished and reinstalled infront of the courthouse. A $250,000Veterans Plaza was dedicated inNovember with a flag-raising ceremony
around Veterans Day. A tunnelconnects the new and old courthouses.
At the corner of Main and Goodwin,a new Victoria Performing Arts Centerwill be built by early 2002. The newcenter will be in the former Dunlap’sDepartment Store building. Built in1958, the building will take on an artdeco look and will be equipped with a500-seat theater and adjoiningrehearsal hall. Located next door to thePerforming Arts Center will be a new
Children’s Discovery Museum. Themuseum will be designed for elemen-tary-school-aged children and willteach children about six areas ofcommerce, including education,medicine, ranching, finance, construc-tion and petrochemicals. The Perform-ing Arts Center will lease the buildingfrom the Junior League, which willprovide volunteers and financialsupport.
15
HOUSING
Housing Affordability – Fourth Quarter 2000
Percent ofHouseholds THAI for
That Can Afford First-timeMedian-priced Home THAI* Homebuyers
Victoria MSA 69 1.66 1.32
*The THAI is the ratio of median household income to the income required to buy the median-priced home using currently available mortgagefinancing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of 1.00 indicates that the median householdincome is just enough to qualify for a loan sufficient to purchase the median-priced home.
Source: Real Estate Center at Texas A&M University
Victoria MSA Single-family Permits
Source: U.S. Census Bureau
Riverside Park, with 400 acres ofwoodland near the Guadalupe River,offers picnic and playground areas, agolf course and a rose garden. Thegarden has more than 1,000 roses of105 varieties. The Texas Zoo in Victoria,
established in 1976, features nativeTexas species in their natural habitat.In 1984, the Texas Zoo was named the“National Zoo of Texas” by the TexasLegislature. Victoria Memorial Squareis a historical site featuring an old
gristmill brought from Germany before1860, which residents once used togrind corn for their livestock andfamilies. The park also has a SouthernPacific oil-burning locomotive.
0
100
200
300
400
500
600
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
16
Average Sales Price of Single-familyHome, Victoria Area
Source: Real Estate Center at Texas A&M University
Single-family Home Sales Volume, Victoria Area(in units)
Victoria Major Plats Approved, 2000
Subdivision name Address Number of lots
Deer Chase Sam Houston and Airline 98Saddlebrook Navarro and Northside Road 52Eagle Creek Phase II Miori Lane and John Stockbauer 41Bridle Ridge VI Navarro and Northside Road 21Bridle Ridge V Navarro and Northside Road 17Arroyo Park Subdivision Mesquite Lane and Arroyo Drive 12Nelson Avenue Subdivision North Street and Nelson Avenue 12
Source: City of Victoria Planning Department
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
Source: Real Estate Center at Texas A&M University
010
20
30
40
50
6070
80
90
Jan
uar
y
Feb
ruar
y
Mar
ch
Ap
ril
May
Jun
e
July
Au
gu
st
Sep
tem
ber
Oct
ob
er
No
vem
ber
Dec
emb
er
1998 1999 2000
17
Price Distribution of MLS Homes Sold, Victoria Area(in percent)
Source: Real Estate Center at Texas A&M University
1997 1998 1999 2000
Less than $60,000 32.3 29.6 23.4 23.0
60,000–79,999 25.5 23.8 26.1 21.9
80,000–99,999 16.4 18.0 20.6 20.4
100,000–119,999 7.9 9.9 11.8 12.3
120,000–139,999 5.1 5.2 6.8 7.3
140,000–159,999 3.5 5.2 4.0 3.9
160,000–179,999 4.4 2.7 2.8 4.2
180,000–199,999 1.5 2.4 1.0 2.1
200,000–249,999 1.8 1.9 2.3 2.7
250,000–299,999 1.2 0.9 0.9 1.6
300,000 or more 0.3 0.5 0.3 0.6
T he average sales price of homesin 1999 as reported through thelocal Multiple Listing Service
(MLS) was $89,500, while the pricejumped to $95,300 in 2000. Thenumber of sales decreased from 702 in1999 to 667 in 2000. Months ofinventory increased from 4.7 monthsin 1999 to 5.2 months in 2000. Totallistings rose from 276 in 1999 to 295 in2000.
Almost 85 percent of homes sold inVictoria in 2000 were priced at lessthan $139,000. The largest percentageof homes sold in 2000 were less than$60,000. The Victoria area is quiteaffordable; 69 percent of householdscan afford the median-priced home.
In 2000, 167 single-family homepermits were issued in the metropoli-tan area, down slightly from the 196permits in 1999. According to the Cityof Victoria’s planning department,residential permit values decreasedfrom $27.2 million in 1999 to $17.9million in 2000. Part of this decrease is
a result of the slowdown in populationgrowth. In the last quarter of 2000, 36new homes were permitted. In firstquarter 2001, 35 new single-familypermits were issued.
The majority of new lots and single-family construction are in the northernsections of the city. New homes arebeing constructed along JohnStockbauer Drive and in the BridleRidge Subdivision near NorthsideRoad and Navarro Street. In 2000,construction continued on many largeresidential projects, including DeerChase, Saddlebrook, Bridle Ridge,Eagle Creek, Arroyo Park and theNelson Avenue Subdivision.Saddlebrook has homes priced from$80,000 to $89,000 while BridleRidge’s homes are priced from$100,000 to $175,000. Deer Chase,located at Sam Houston and Airlinebehind the high school, has homespriced from $100,000 to $200,000.
The infrastructure for the 57-lotPhase I of the Lake Forest Subdivision
near U.S. 87 on Nursery Drive iscurrently underway. ParkstoneSubdivision received approval to beginconstruction in March 2000. Thesubdivision will have 193 lots withpatio homes, duplexes and single-family homes.
Victoria received funding from thefederal government to help buy flood-prone land along the Guadalupe River.Phase I consisted of approximately$1.26 million plus an additional$338,000 in funding. Funding wasavailable for 109 tracts of land, butonly 75 landowners accepted theoffers. With $485,679 in funds forPhase II, 30 offers were made, but only18 were accepted. The funding wasgranted throughout 2000, and Victoriais still working on asbestos abatementand acquisition before demolition ofthe houses affected in the October1998 flood.
18
MULTIFAMILY
Victoria MSA Multifamily Building Permits
Source: U.S. Census Bureau
Victoria was one of many Texascities affected by apartmentoverbuilding in the 1980s.
Heavy construction occurred in 1981,with permits for approximately 1,300multifamily units issued that year.Between 1983 and 1986, the numberof permits trailed off significantly,signaling an oversupply in the market.From 1987 to 1995, only 39 multifam-ily units were permitted. During 1999,two units were permitted. In 2000, nonew multifamily projects were
permitted. In first quarter 2001, no newpermits were issued.
Three new apartment complexeshave opened in the Victoria area since1997. Creekstone Ranch Apartments,Mockingbird Plaza Apartments andThe Whittington Apartments each built160 units. Both Creekstone RanchApartments and Mockingbird PlazaApartments are low-income, tax-creditprojects. Mockingbird Plaza is a $12million project offering two-, three-and four-bedroom units. Creekstone
Ranch Apartments is located at 5609John Stockbauer Drive; rents rangefrom $436 to $717 per month.
The average multifamily housingoccupancy rate in the Victoria MSAincreased from 92.9 percent in January2000 to 95.2 percent in December2000.
The 1990 Census concluded thatabout 11,488 housing units in Victoriawere owner-occupied, while about8,282 units, or 42 percent of all units,were renter-occupied.
Victoria Apartment Statistics, December 2000
Texas MetroVictoria Average
Average rent per square foot $0.60 $0.75Average rent for units built since 1990 $0.61 $0.96Average occupancy (in percent) 95.2 95.7Average occupancy for units built since 1990 (in percent) 98.4 95.4
Source: Apartment MarketData Research
0
200
400
600
800
1,000
1,200
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999
19
MANUFACTURED HOUSING
Victoria MSA Manufactured Home Sales
Proportion of NewManufactured Single-family HomesHomes Sold (in percent)
1997 236 54.6
1998 258 54.9
1999 197 50.1
2000* 152 53.7
*Through third quarter 2000Source: Texas Manufactured Housing Association
Manufactured housing repre-sents a substantial portion ofthe new single-family home
market in Victoria. After existing andplanned manufactured home dealersare in place, the high-demand market
SENIORS HOUSING
The planned $50 million BluffBay Golf Course and Resort inthe Port Lavaca area never made
it to construction. The project was tobe targeted to seniors.
The Victoria Housing Authorityproposed a project to create 95 new,
low-rent apartments. The project,Victoria Seniors Community, was notapproved, and another application hasnot been issued.The project wassupposed to be a low-income, tax-
will have 11 manufactured homedealers servicing the area and thesurrounding counties.
credit project. Five houses wereconstructed on the location; four of thehomes were for senior citizens wholost their homes during the 1998 flood.
20
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Map 2. Commercial Building Permits, 2000
Source: Victoria Building Permit Office
Victoria, TexasCensus PlaceHighway
� Industrial
� Office
� Retail
US 59
US 77
US 87
US 87US 87
US 59
SH 463
RETAIL MARKET
Map 2 shows the locations ofnew retail and restaurantpermits issued. Commercial
permit values decreased from $63.9million in 1999 to $35.2 million in2000. Total building permit value in2000 was more than $58.7 million, alarge decrease from the 1999 total ofmore than $95.4 million.
Restaurant sales are expected toincrease 3.11 percent in 2001,
reaching $92.5 million, according tothe Texas Restaurant Association.Across the state, restaurant sales areexpected to increase 7 percent in2001. During February 2000, the Saltand Pepper Grill moved into Victoriaon North Main near the VictoriaRegional Hospital. Chili’s and JohnnyCarino’s opened on Navarro Streetbetween Airline and Mockingbird.Applebee’s closed in October 2000.
In April 2001, construction wasscheduled to begin on an Albertson’s,the anchor of a shopping center onHighway 77, a former elementaryschool site. A 12-screen Cinemarkmovie theater is under constructionbehind the Victoria Mall. Newadditions to the mall include a Gapand an Old Navy store.
21
Established industrial leaders inthe Victoria area includeDuPont, BP Chemicals, Carbide-
Graphite Group, Airliquide,OxyChem, Dow Union Carbide,Seadrift Coke, Alcoa and FormosaPlastics Corporation. Less than 2percent of the Victoria workforce isunionized.
DuPont was chosen as a chartermember of Clean Industries Plus, apollution prevention program, in 1999.
INDUSTRIAL MARKET
The company made environmentalimprovements by installing a state ofthe art biological treatment areacosting $180 million.
The new DeWitt CommunityDevelopment Foundation’s 126-acreindustrial park in north Cuero hasreceived about $49,000 in grantmoney from the Lower Colorado RiverAuthority (LCRA). The LCRA’s Com-munity Development Partnership
OFFICE MARKET
In Victoria’s medical sector,Citizens Medical Center added an$11 million healthplex to be
completed in April 2001. The 72,000-square-foot wellness center will add18 full-time jobs. The Healthplexincludes a health club, kitchen,medical lab and x-ray services. The
expansion of Citizens Medical Centeradded 56 beds to the facility. Total costof the project was about $2.6 million,including construction of the fifth andsixth floors. A new 3,600-square-footmedical center clinic for nonemergencypatients created 20 new jobs.
Program will help complete infrastruc-ture work within the park.
Johnson Manufacturing located atthe Port of Victoria Industrial Park inDecember 2000, creating 100 jobsover a two-year period beginning in2000. Johnson is expected to have a$25 million impact on the localeconomy. Hanover spent $550,000expanding their facilities near theairport with a net gain of 25 new jobs.
The Golden Crescent WorkforceCenter relocated to an 18,000-square-foot site at 120 Main Place. The centerhouses more than 25 employment-related services. This new location isthe center’s third location in Victoria.
22
CONCLUSION
601-25-1475
Victoria is the regional hub forthe seven-county GoldenCrescent area. Victoria’s top
three employment sectors are services,trade and local government. Unem-ployment has fallen while the numberof jobs has risen steadily. Localagricultural products include corn,sorghum, rice and cotton. Tourist
attractions include the Texas Zoo andNave Museum.
Victoria is strategically located withaccess to nearly seven million peoplewithin a 150-mile radius. The area’sindustrial base includes large interna-tional companies such as DuPont, BPChemicals, Dow Union Carbide,
Alcoa and Formosa Plastics Corpora-tion. These companies rely on theVictoria Barge Canal and the Port ofPort Lavaca-Point Comfort. The areaalso supports a medical industryoffering several large health-careproviders and other smaller medicalfacilities.
