Loading...
HomeMy WebLinkAboutResolution - 2008-R0501 - Approve LEDA And Market Lubbock Inc. Annual Reports - 12/17/2008Resolution No. 2008-RO501 December 17, 2008 Item No. 6.10 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Lubbock Economic Development Alliance, Inc. and the Market Lubbock, Inc. 2008 Annual Reports are hereby approved as presented to the City Council of the City of Lubbock, including the projects, programs and activities therein. Said Annual Reports are attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 17th day of December, 2009. TOM MARTIN, MAYOR ATTEST: Rebecka Garza, City Secretary APPRQVED ,A S TO CONTENT: Rob A14n, Assistant City Manager, Development Services APPROVED AS TO FORM: Linda L. Chamales, 9ei Office Practice Section City Att / Linda Res-LFDA and N11.1 annual report 2008 December 10. 2008 Resolution No. 2008-R0501 LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE VISIT LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE VISIT VISIT LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE VISIT LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE ALLIANCE VISIT LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE VISIT LUBBOCK ECONOMIC DEVELOPMENT DEVELOPMENT ALLIANCE VISIT LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE VISIT LUBBOCK ECONOMIC 2008 ANNUAL REPORT _ ryas, .t ss- ...� �� _ _ . �.... ._-K.}'—�y....,�_•�.` � .. ONO �= _ i., ��� — < '1 Hyl ,r, .,�.y i _ �. w +4t�iiy���w�` G _ 13 i. .P� •FY , ,y t. �+ fir. r::-' ra • r y �'t _; .-, rfl�"it A1'� v.. �. ry ^n -.w ®I 'tl +.' a a 7Ff`•y =_ _ ter~- - �`■R � .. `?•- „i a �' .r icBFA,wa`i s 'ago a►y 4 _ -„_ iu._- - � �i r �&. �r��y - -_.~ �� ''ids �y - '.r IMON ' - 1;6oa —jar =tea Y �4a.-dam � ac.'�•` •'-�1 _ - sir -"'r �� � rt�. �� `'-��.` .. S . �I.,N-.' p_, ��. � R J " ccs - � ^�� y ��s" • .� , _ I!!'T�":a. V 4/��: cif . I. � +__c_:.�-+ : rdll - ...... '-o. _0 0 Table of Contents Message from the CEO 1 Mission Statements 2 Organizational Chart 3 Board of Directors 4 Staff 4 Lubbock Economic Development Alliance Condensed Financial Statements 6 Incentive Investment Locations 7 Lubbock Business Park 12 Lubbock Rail Port 12 Business Recruitment 13 Business Retention 15 Workforce Development 17 Foreign Trade Zone 260 (FTZ-260) 19 Young Professionals of Greater Lubbock (YPGL) 21 Promotions 23 Visit Lubbock Condensed Financial Statements 26 Communications Department 27 Sales Department 29 Lubbock Sports Authority 31 Closing Statements 33 Message from the CEO We are here to serve you. Please do not hesitate to contact us and allow us to show you why we are your resource for success. Sincerely, Gary Lawrence Chief Executive Officer The combined efforts of the Lubbock Economic Development Alliance -� (LEDA) and Visit Lubbock have truly paid off over this past fiscal year, resulting in business investments, job creation, increased tourism, and a better quality of life for those residing in Lubbock and the South Plains region. It is our commitment to continue to meet these demands of a c growing business economy for our clients, our citizens, and the city of `{ Lubbock as a whole. " Both the Lubbock Economic Development Alliance and Visit Lubbock are highly resourceful organizations, working together in order to achieve organizational goals. Lubbock Economic Development Alliance .. strives to help businesses with every part of their development and expansion, while Visit Lubbock strives to generate high economic impact through the development of the convention and tourism industries. We are here to serve you. Please do not hesitate to contact us and allow us to show you why we are your resource for success. Sincerely, Gary Lawrence Chief Executive Officer L U B B O C K FC0NOINIC DF. V F.I.0PN1FN I Ai,LIANCF [IV Mission Statement The mission of the Lubbock Economic Development Alliance is to promote economic growth by creating high-quality jobs, attracting new capital investment, retaining and expanding existing businesses, and improving Lubbock's quality of life. Mission Statement The mission of Visit Lubbock, the Convention and Visitors Bureau, is to use leisure activities, meetings, conventions and sporting events, arnong all other aspects of the travel industry, to create a positive economic impact in Lubbock. 2 Organizational Chart Chief Executive Officer Lubbock Economic Foregn Trade Zone V sit Lubbock Development Alliance 260 Bus ness Business WorkforceHIF Rec. tment Retent on Marketing Development Communicat ons Saes11 Sports The Lubbock Economic Development Alliance (LEDA) is a Texas non-profit, tax-exempt economic development corporation, LEDA is responsible for supporting the creation of new and existing primary jobs under the Economic Development Act of 1979. Under the provisions of this statute, applicants must submit a written request for assistance providing the necessary information in order for the Board of Directors to become satisfied that the applicant and the project fall within the parameters of the Act, our corporate purposes, and the goals of the City of Lubbock. Each year, LEDA submits this report to the City of Lubbock for ratification and approval of our projects and activities throughout the year. Board of Directors David Alderson, Chairman President and CEO, Alderson Enterprises Tony Whitehead, Vice Chairman Executive Vice President, American State Bank Mike McDougal President, McDougal Properties Curtis Griffith Chairman, City Bank Van May Consultant, Plains Cotton Cooperative Association John Baldwin, M.D. President, Texas Tech University Health Sciences Center Lubbock Economic Development Staff Gary Lawrence Chief Executive Officer Jana Johnston Chief Financial Officer Christine Allen Accountant Marc Farmer Director of Business Recruitment Visit Lubbock Staff Marcy Jarrett Executive Director Abie Cox Director of Communications Amy Zientek Director of Sales Lisa Grinstead Sales Manager Leslie Mathews Sales Manager Kenny McKay Director of Business Retention Terri Patterson Director of Workforce Development David Petr Director of Marketing Warren Warner Director, FTZ-260 Erica Perry Sales Manager Leigh Martzall Services Manager Scott Harrison Sports Manager Josh Dill Sports Sales Manager Diana LeMaster Communications Coordinator Velma Medina Realtor Associate, Coldwell Banker Rob Meyer (Visit Lubbock) Owner, Arbor Inn & Suites Gretchen M. Miller Project Coordinator Gary Hatfield Research Coordinator Maggie Allen Research Specialist Linda Davis Executive Assistant Rosalind Alexander Administrative Assistant Ryan Callison Online Media Coordinator Jessica Mendoza Sales and Services Coordinator Kathy Lennox Visitor Information Specialist ,I L U B B0 C K ECONOMIC DEVELOPMENT ALLIANCE Lubbock EDA Financial Statements For the fiscal year ending September 30, 2008 Fund Balance Sheet Assets Cash and equivalents $3,620,198 Prepaid expenses $14,130 Accounts receivable $776,154 Total Assets $4,410,482 Liabilities Accounts payable $348,231 Accrued liabilities $38,238 Other current liabilities $16,929 Due to affiliate $496,770 Incentives and special projects payable $116,150 Total Liabilities $1,016,318 Fund Balance Incentive and special project contractual commitments $1,688,615 Unreserved, undesignated $1.705.549 Fund Balance $3,394,164 Liabilities and Fund Balance $4.410.482 Fund Statement of Revenues, Expenditures and Changes in Fund Balance Revenues $14,580,680 Expenditures $15,70U.719 Revenues over Expenditures $<1,120,039> Fund balance - beginning $4.514.2Qa Fund balance - ending $3,394,104 6 t eb y Aw . sp...� n /' _ : �i ..�.. •JL ,rte !', d + .._.._ ic "' � 'A w r fir {{ ,nl ' ! � .. - . ° �j}"` � � �y x . T •ti�rv+ M.t�' ¢ill t _ j an 6r}u.,• ..-T�_, �/� T c� Irl_ K s_� '�� tl W,w y . 414 _�• - � .�7. ....� ..�`+,� �-.t.--c �r .ice �:' 'L�.r-:fi{ -�_ . a or i .y �- dl A I •• `` _ _ t. _tialp _ , 9 l r n Board Commitments to the Lubbock Economy Approved Performance Agreements, FY 2007-2008 Total: 589 56 $1,404,500 $100,000 $34,750,000 Map Value Date Approved Company Number of Jobs Years Paid Over Job Incentive Capital/Relocation Incentive Capital Investment g 1 11/19/07 Cafe Venture Company 6 5 $43,000 $0 $0 C -i 2 11/19/07 Food Concepts International 43 5 $215,500 $0 $0 1 01/21/08 Osteogenics Biomedical 9 5 $44,500 $0 $0 2 03/17/08 McPherson Cellars, Inc. 7 5 $26,000 $0 $1,400,000 3 03/17/08 Vertical Turbine Specialists 35 5 $101,500 $0 $50,000 4 04/21/08 United Supermarkets 25 5 $114,000 $0 $4,400,000 5 04/21/08 VXI Global Solutions 329 5 $562,000 $0 $2,500,000 0 6 06/16/08 Kendrick Oil 7 5 $37,500 $0 $0 7 06/16/08 SemMaterials 11 5 $38,000 $0 $14,000,000 8 08/18/08 Flat Wireless, LLC 67 5 $152,000 $0 $0 9 08/18/08 Llano Estacado Winery 0 1 $0 $50,000 $1,000,000 1 u 09/15/08 Hurley Packaging of Texas, Inc. '�Q $70.500 $50.000 $11.400.000 Total: 589 56 $1,404,500 $100,000 $34,750,000 Economic Impact of Lubbock EDA Financial Incentives 9 Fiscal Year 2005-2006 Number of Economic Impact Jobs Incented Incentives Per Year 46 Fiscal Year 2004-2005 $22,574,528 Number of Economic $9,167 Jobs Impact Company Incented Incentives Per Year Southwestern Bell Telephone, LLC 46 $47,833 $22,574,528 eBank Systems `. $9,167 $897,076 Panhandle Deli $15,000 Vertical Turbine Specialists 38 Hurley Packaging of Texas, Inc. $25,109,782 Module Truck Systems $4,667 Stephen Joseph, Inc. Lighted Edge Peerless Pump Company Incode Empire Paper Company Xanadoo, LLC Cash Register Services, Inc. Potato Specialty Humdinger Enterprises, Inc. Humdinger Equipment, Ltd. Bimbo Bakeries Mrs Bairds Bakeries Bahama Buck's J.L. Benton & Associates, LLC Enprotec/Hibbs & Todd, Inc. Ryan & Company, Inc. J & B Industrial Services, L.P. X -Fab Shearer's Foods Food Concepts Caprock Manufacturing, Inc. 9 Fiscal Year 2005-2006 Number of Economic Impact Jobs Incented Incentives Per Year 46 $49,500 $22,574,528 5 $9,167 $897,076 5 $7,167 $1,567,203 49 $59,833 $24,240,895 9 $15,000 $5,679,470 38 $17,500 $25,109,782 5 $4,667 $977,107 Return on Investment — shows how much total economic impact results from every one dollar incented Fiscal Year 2006-2007 Number of Economic Jobs impact Incented Incentives Per Year 46 $49,500 $22,574,528 5 $9,167 $897,076 5 $7,167 $1,567,203 43 $56,500 $21,272,621 9 $15,000 $5,679,470 38 $17,500 $25,109,782 15 $7,000 $4,701,610 3 $4,333 $1,484,136 5 $8,833 $1,267,960 18 $25,000 $5,642,293 7 $5,583 $3,500,485 5 $4,750 $2,500,346 3 $5,500 $424,929 13 $15,667 $4,074,729 1 $417 $730,519 15 $12,333 $10,957,796 Fiscal Year 2007-2008 Number of Economic Total Jobs Impact Total Economic Incented Incentives Per Year Incentives Impact ROI* 10 $146,833 $67,723,584 $1 to $460 $27.500 $2,691,228 $1 to $97 5 $7,167 $1,567,203 $21,501 $4,701,609 $1 to $218 31 $63,833 $19,933,951 $180,166 $65,447,467 $1 to $363 9 $15,000 $5,679,470 $45,000 $17,038,410 $1 to $378 34 $15,750 $25,003,896 $50,750 $75,223,460 $1 to $1,482 5 $4,667 $2,060,117 $9,334 $3,037,224 $1 to $325 $7,000 $4,701,610 $1 to 671 3 $4,333 $1,484,136 $8,666 $2,968,272 $1 to $342 3 $12,833 $610,657 $21,666 $1,878,617 $1 to $86 8 $10,333 $3,241,513 $35,333 $8,883,806 $1 to $251 5 $4,667 $2,500,346 $9,417 $5,000,692 $1 to $531 7 $15,000 $9,707,840 $20,500 $10,132,769 $1 to $494 12 $16,166 $4,862,269 $31,833 $8,936,998 $1 to $280 1 $417 $1,190,145 $834 $1,920,664 $1 to $2,302 15 $12,333 $10,957,796 $24,666 $21,915,592 $1 to $888 6 $3,000 $2,356,772 $3,000 $2,356,772 $1 to $785 6 $16,666 $2,308,542 $16,666 $2,308,542 $1 to $138 2 $1,667 $248,663 $1,667 $248,663 $1 to $149 1 $2,000 $465,461 $2,000 $465,461 $1 to $232 3 $6,666 $939,134 $6,666 $939,134 $1 to $140 2 $2,333 $432,392 $2,333 $432,392 $1 to $185 8 $7,000 $4,284,868 $7,000 $4,284,868 $1 to $612 59 $38,500 $125,311,892 $38,500 $125,311,892 $1 to $3,254 81 $112,167 $123,745,716 $112,167 $123,745,716 $1 to $1,103 1 $10,000 $456,132 $10,000 $456,132 $1 to $45 4 $5,700 $1,903,901 $5,700 $1,903,901 $1 to $334 Total Total Total $846,698 $564,655,475 $1 to $597 10 _1-1166.7 �_ 1r � "" r- R Lf � ..� •-'� L _fin— ;�.� .,...'. -,Yp�s' � _- ' ._ ... , . , -__ _ . � -•--w- +F�p-- w r "+��t4,,�v .. •'.- __ p r 4 � _--,mom+�'r' 1S �va __ __�_ � SE ��. .._ '� � 'M - +T.� n 4 I ~ 77An- _1-1166.7 Lubbock Business Park This is an exciting time for Lubbock EDA and the city of Lubbock. With the development of the new Lubbock Business Park, companies now have the facility they have been looking for. Only minutes away from the Lubbock Preston Smith International Airport (LBB), the newly developed Lubbock Business Park presents a matchless opportunity for commerce and industry. The 51 -lot Business Park resides on 548 prime acres of West Texas and provides corporations with transportation advantages and first class infrastructure. The Business Park is in close proximity to the Foreign Trade Zone 260 (FfZ-260). In January of 2009, O'Reilly Auto Parts and Standard Bag - WesTx Packaging Company will be the first to open their doors in the new Business Park, creating many jobs for the citizens of Lubbock and thus improving the quality of life for the region as a whole. With this begins a new chapter in the success of these two U.S. companies, the city of Lubbock, and the entire South Plains region. It is the goal of Lubbock EDA to embark on a journey to improve the business environment and provide companies with the tools they need to achieve their organizational goals and objectives. With the opening of the new business park, Lubbock EDA is able to do just that. Lubbock Rail Port Located on over 300 acres only a few miles north of the Lubbock Preston Smith International Airport, the Lubbock Rail Port provides companies with convenient access to the airport, Foreign Trade Zone 260 (FEZ 260), and the Burlington Northern Santa Fe (BNSF) rail system. Lubbock EDA understands the importance of efficiency and effectiveness in today's business world and strives to meet these necessities with the Lubbock Rail Port. With Lubbock's central United States location and the expedient business facilities, transportation needs are easily met. Mexico -based Molinos Anahuac (MACSA) has selected Lubbock for their new flour mill and laboratory. The growth of this asset signifies the growth of the manufacturing industry in the South Plains region. 12 Business Recruitment The Business Recruitment division focuses on creating new jobs through the attraction of new business to the Lubbock area. This is accomplished through site selection assistance, preparation of proposals, development and coordination of partnerships with the business community, government officials, site selectors and others, extensive travel and implementation of marketing strategies. Goals and Responsibilities • Market the city of Lubbock in Texas, regionally and nationally • Establish and maintain relationships with the Governor's Office • Create relationships with site selectors and location specialists • Maintain memberships through national/state economic development organizations 0 13 The Business Recruitment division at Lubbock EDA utilizes knowledge of regional resources, industry clusters and the business community to remain competitive within the market. In order to meet the demands and needs of national and international companies looking to expand or relocate, Lubbock EDA acquired land to develop both the Lubbock Business Park and the Lubbock Rail Port. 00- The efforts of the Business Recruitment division continue to bring in new companies to the Lubbock Business Park. With the addition of O'Reilly Auto Parts, WesTx Packaging Company, and the new Department of Public Safety campus, the Business Park is well on its way to bringing in new business and employment opportunities. However, this is not where Business Recruitment stops. This year, VXI Global Solutions, Inc. created 329 new jobs for the Lubbock community. VXI Global Solutions, Inc. began as a multicultural center specializing in Asian languages and soon expanded across the globe. As a leader in call center outsourcing, VXI works for many Fortune 1000 companies, such as DirecTV, AT&T, Western Union, and Verizon. Lubbock EDA is committed to continue the efforts to sustain and increase the growth of the South Plains Region. Recruitment of new companies provides for the increase of high paying jobs, capital investment and overall economic impact to the Lubbock community. Lubbock EDA's division of Business Recruitment is positioned to focus on the following industries (although not limited to) in the future: Manufacturing, Transportation/Logistics, Wind Energy/Clean Energy, Food Technology, Biotechnology among other emerging industries throughout Lubbock and West Texas. 14 Business Retention The Business Retention program works with local companies to expand in Lubbock through capital investment, job incentives, and training programs. Lubbock EDA strives to help companies flourish in Lubbock. By using a variety of resources, Lubbock EDA offers a helping hand to local businesses looking to expand and thrive throughout the Lubbock area. Goals and Responsibilities • Continue to build relationships with corporate headquarters • Increase supplier base in Lubbock • Serve as a liaison between businesses and the City of Lubbock • Support networking among local businesses • Support relationships between local businesses and Texas Tech University This past fiscal year, the Business Retention program has done an excellent job in promoting our local businesses. Although there were many events that impacted the community, there were a couple of events in particular which caught the eye of the public. 15 Lubbock EDA welcomes the construction of a new, technologically advanced piece of green machinery at Hurley Packaging of Texas, Inc. Scheduled to come online in 2010, the machine will handle 30 tons of recycled paper a day in order to transform items such as old phone books into eco -friendly packing materials. Initially, the machine will produce egg crates for the retail and wholesale food industries. Currently, this type of machinery is being built in Lubbock, Canada, Germany, and New Zealand, making Lubbock a true pioneer in the industry. Not only does this project bring new technology to the area, but 50 new jobs will be created in order to help with Hurley's expansion into this new venture. In May, Tyler Technologies unveiled plans to begin construction of two new office buildings in West Lubbock. The INCODE Division plans to double in size within the next six years. Not only will these new buildings be a sign of growth in the Lubbock community, but the buildings themselves will be constructed using recycled construction debris and materials. It will also use an integrated energy management system, alternative refrigerants, non -odorous indoor construction materials, and automatic and solar -powered faucets. McPherson Cellars, Osteogenics BioMedical, SemMaterials, and Vertical Turbine Specialists also added a combined total of 62 new jobs through their business expansion efforts. Lubbock EDA strives to help the Lubbock community grow through local businesses, employers, and the opportunities presented each day. With this in mind, the Business Retention program works to develop and expand local companies and help them achieve their personal and organizational goals. 16 Workforce Development Workforce Development is an essential tool to economic development. By collaborating with local and regional partners, providing network and support groups for industry clusters, and supporting workforce development projects, Lubbock EDA aims to help Lubbock support one of the most dedicated and knowledgeable workforce teams within the South Plains region. Goals and Responsibilities • Collaborate with local and regional partners • Provide up-to-date data on and for the South Plains • Provide networking and support groups for industry clusters • Support workforce development projects • Develop workforce proposals for business prospects • Participate in site selector and business site visits • Develop cutting-edge programs for business and industry Community Workforce Partnership This unique partnership includes community leaders, business professionals, workforce and economic development specialists who have come together in order to have an ongoing dialogue about workforce development programs for the South Plains region in an effort to increase coordination and collaboration between the many valuable workforce development programs for the region. Industrial Manufacturing Certification Program This year marks the second year of Lubbock EDA's participation in the Manufacturing Skills Standards Council (MSSC) certified Industrial Manufacturing Certification Program. Working together with the Byron Martin Advanced Technology Center (ATC), the Lubbock Independent School District (LISD), South Plains College (SPC), and Texas Tech University (TTU), the program provides a strong framework for students interested in the manufacturing industry. 17 National Marketing Campaign Lubbock EDA has launched a creative national marketing campaign in order to connect job seekers with potential employers, create business growth, establish a new brand image, increase the civilian labor force, and retain high school, college, and university students. The campaign includes: • Ads in Spirit Magazine, Red Raider Magazine, and other national and regional periodicals • Airport dioramas • The www.lubbocktx.jobs Web site • Radio commercials and metro tags • Regional job fairs • Web banners • 1-866-WORK-LBK toll-free phone number to connect job seekers with potential employers • "The Only Thing Missing is U!" campaign logo Career and Technology Association of Texas Award The Career and Technology Association of Texas' annual recognition program seeks "to promote excellence in career and technical education by recognizing individuals who have made extraordinary contributions to the field, programs that exemplify the highest standards and organizations that have conducted activities to promote and expand career and technical education programs". Workforce Development received the statewide award at the Texas Career Education Conference Awards Ceremony on July 23, 2008, due to Lubbock EDA's accomplishments. State of Texas "Best Practices" Awards: - Workforce Best Practices Award - Honorable Mention - Workforce Best Practices Award - 1 st Place - Workforce Best Practices Award - Merit Recognition 18 Foreign Trade Zone 260 (FTZ 260) Foreign Trade Zone 260 (FTZ 260) is strategically located in the South Plains area in order to provide a central U.S. location for businesses looking to meet increasing trade demands. Cost-effective, modern FTZ operations and inventory management software programs with refined U.S. Customs procedures have created a better operating environment benefitting both the businesses and the customer. As a result of business demands, importing manufacturers and importer -distributors are now required to have sophisticated international procurement and supplier operations that are able to minimize inhouse inventories while being able to supply their customer and manufacturing requirements. " Advantages • Expedited logistics where imports flow through the Port of Entry and directly to the Foreign Trade Zone. The importer eliminates all Port delays and U.S. Customs receives and admits these imports to the FTZ on-site. • These imports enter the FTZ duty -deferred, resulting in significant cash flow savings for the FTZ-located operator. Import duties are paid only when the imports finally enter the U.S. Market. • All import inventories allowed in FTZ are exempt from year-end local property taxes • There are other import related taxes that are deferred, reduced, or exempt, depending on specific -use factors. Community Benefits • Increased employment • Increased property tax values by encouraging capital investment in new facilities • Allows the city of Lubbock and the entire United States to be more competitive in a world of international business Supachill USA, Inc., a major leader in the cooling and freezing process for the biomedical and food industries, was the first authorized company to conduct operations in the F2. Currently, there are three additional companies with pending applications for F2 status, Holiday LiteSource, Inc., Venus Decorative Hardware, Inc., and Tyco Fire and Building Products. 20 Young Professionals of Greater Lubbock (YPGL) During an evaluation conducted by AngelouEconomics, over 100 young professionals answered a survey indicating they would like to have a local organization to network and collaborate with peers. Lubbock EDA wanted to help start this organization in order to promote Lubbock, attract and retain young professionals, and utilize the talent and interest of young professionals as a resource to attract business. This organization further serves as a resource for existing businesses by providing a pool of young and talented potential employees. Since its creation in the fall of 2005, YPGL has grown to nearly 600 active members. This group of civic -minded professionals sees Lubbock as a great place to live, work, and play. YPGL is dedicated to developing emerging leaders and attracting and retaining diverse young talent throughout the Lubbock region. Active Board Kelli Stumbo, Board Chair Texas Tech University Student Regent Alex Arzia Katy Christy Field, Manning, Stone, Hawthorne & Aycock, P.C. Lindsay Cooper Merrill Lynch Gretchen M. Miller Lubbock Economic Development Alliance Kerri Schoonvelt Family Life Radio 21 Committees The WHY Committee markets Lubbock to soon-to-be graduates as well as alumni who may be interested in moving back to Lubbock through Web sites, job fairs, and other publicity. The HIRE Committee identifies opportunities to encourage local companies to create internships, hire, and promote new graduates and Lubbock young professionals. The ENJOY Committee organizes events as well as assists in the publicizing of community events that may be of interest to YPLL members. Networking and Professional Development Young Professionals of Greater Lubbock provides opportunities for networking and professional development, which include: First Tuesday Networking, Lunch & Learn, and social events. YPGL is also very committed to having its membership active within the Lubbock community. Volunteer opportunities are promoted to all members on a weekly basis. This year, YPGL supplied volunteers for the Cattle Baron's Ball. In the near future, YPGL will adopt Literacy Lubbock and the Lubbock Youth Core as two local non-profit organizations, by means of supporting them through volunteering and financial assistance. Twenty under Forty Awards Program 2008 marked the second year of Lubbock's Twenty under Forty Awards Program. This exciting initiative aims to recognize outstanding individuals under the age of forty who exemplify leadership in their careers, while actively participating in the community. The 2008 honorees were announced at a special reception on Thursday, October 23rd, at the Texas Tech University Frazier Alumni Pavilion. Gary Lawrence, Chief Executive Officer of LEDA, is proud of this initiative stating, "The 20 under 40 Awards Program is great recognition for the young professionals of the community of Lubbock. The recipients of this award are those that reflect strong leadership qualities and do what they can to make Lubbock an even better place to live and work". 22 Promotions Annual Golf Tournament In 2008, the 9th Annual LEDA Golf Tournament took place on September 29, 2008. A total of 34 teams and over 140 golfers participated in what was the largest attended outing yet in LEDA history. This appreciation event allows for networking opportunities between business partners in the Lubbock area, while assisting with Business Retention efforts. Economic Forecast Event The Lubbock business community is invited to this annual January event that highlights two distinguished speakers that portray the forecasts of the national and Lubbock economy. In years past, the featured speakers have included: Angelos Angelou of AngelouEconomics, Chancellor Kent Hance of Texas Tech University, and Zanny Minton Beddoes of The Economist. Pheasant Hunt The 2007 4th Annual LEDA Pheasant Hunt was a huge success and provided for great exposure to Lubbock for our 25 out-of-town guests which included a hand -full of new site selectors. This year's event consisted of a fine steak dinner at the Wind Power Museum with entertainment by the Matt Martindale Band, an evening watching the Texas Tech Red Raiders Men's Basketball Team led by Coach Bob Knight defeat the Louisiana Tech BUlldog's, a competitive casino night at TTU's Skyviews Restaurant and two days of pheasant hunting. The purpose of the annual pheasant hunt is to expose those interested in expansion to our wonderful city and region. It's a common theme in our community that if we c they will be interested in Lubbock. This is an opportunity for site selectors to learn at network with local leaders, and have a great time. 23 No Text ■ 10 \ Market Lubbock, Inc. Financial Statements For the fiscal year ending September 30, 2008 MLI: Market Lubbock, LCVB: Lubbock Convention and Visitors Bureau, LSA: Lubbock Sports Authority Fund Balance Sheet MLI LCVB LSA Total Assets $4,4331533 a1.t359.943 "17 1,487 $G b74 903 Cash and equivalents $243,000 $697,054 $132,568 $1,072,622 Investments $100,408 - - $100,408 Prepaid and deferred charges $508 $84,412 $882 $85,802 Accounts receivable - $273,205 $86,637 $359,842 Due from affiliate $496,770 - - $496,770 Inventory - $51,138 - $51,138 Restricted assets: Incentive advances $5.000,000 $5.000,000 Total Assets $5,840,686 $1,105,809 $220,087 $7,166,582 Liabilities Accounts payable $19,823 $65,045 - $84,868 Accrued liabilities $4,430 $177,102 $4,418 $185,950 Deferred revenues $5,000,000 - - $5,000,000 Incentives and special projects payable $42.000 - - $42.000 Total Liabilities $5,066,253 $242,147 $4,418 $5,312,818 Deserved for: Incentive and special project contractual commitments $288,709 - - $288,709 Inventory - $51,138 - $51,138 Unreserved for: Designated for open convention and event offers - $206,503 $191,250 $397,753 Unreserved, undesignated $485.724 6 21 $24,419 $1,116,164 Fund Balance $774,433 $863,662 $215,669 $1,853,764 Liabilities & Fund Balances $5.840.686 $1.105.809 $220,087 $7.166.582 Fund Statement of Revenues, Expenditures and Changes in Fund Balance Revenues $4,244,221 $1,990,761 $642,516 $6,877,498 Expenditures $4,4331533 a1.t359.943 "17 1,487 $G b74 903 Revenues over Expenditures <$189,312> $130,818 $61,029 $2,535 Fund balance - beginning $963,745 $732,U4-4 $154,64 $1.851.229 Fund balance - ending $774,433 86 662 $215,669 $11 $!3 7a4 26 Communications Department The Communications Department manages all advertising, marketing and public relations for Visit Lubbock by creating an overall image of Lubbock to the travel industry. This includes printing 200,000 visitor guides, managing VisitLubbock.org and assisting the Sales Department with creative sales tools to put "heads in beds" in Lubbock hotels. Advertising In order to ensure the maximum amount of positive exposure is obtained, the design team works to devise creative advertisements for local, regional, and national publications in order to reinforce sales efforts and increase overall economic impact. Publications are chosen from results of the Randall Travel Marketing Study in an effort to determine where Texas travelers live and why they want to visit Lubbock. Publications include: • Home and Away magazine • Midwest Vacation Guide • People • See Texas First Travel Insert • Spirit Magazine • Southern Living • Southern Traveler • Texas Highways • Texas Monthly • Texas/New Mexico Journey • Texas State Travel Guide • Tourtexas.com In the past year, Visit Lubbock offered advertising opportunities for local businesses, including advertising space in the 64 -page visitor guide and on the Web site, VisitLubbock.org. The cost for local businesses to advertise is a small quarterly to annual fee. The advertising provides the tourist with an opportunity to see Lubbock like a local and experience West Texas products. Over $277,955 was spent in advertising publications to generate 28,726 inquiries. The ad placement on the tourtexas.com Web site alone generated 3,658 total responses at a cost per inquiry of $0.50. 27 Public Relations Public relations efforts to add local awareness of Visit Lubbock were increased this past year. This was done by sponsoring local events and showcasing local restaurants and retail stores on the Web site. Visit Lubbock also launched the volunteer section of the Web site "Lubbock Hosts" where citizens of Lubbock can log on and sign up to volunteer at various Lubbock events, including sports and conferences. The Lubbock Sports Authority was introduced in new publications such as Sports Destination Management magazine. Public relations efforts were emphasized with sporting events through additional press releases, as well as increased distribution of padded maps and programs. Travel writers are an essential part of making Visit Lubbock known to the travel industry. Editorial stories provide the traveler an experience that cannot be achieved by an ad alone. In 2008, the department hosted three travel writers, resulting in 15 editorial stories equivalent to $400,000 of comparable advertising space. Web site Visit Lubbock is always trying to stay ahead of the technology curve by providing residents and tourists with current information through the Web site, VisitLubbock.org. Over the past year, the Web site was revamped to provide a more image -driven experience. Web site research shows visitors want information in less than five seconds and they want to "see" the data rather than read it. To achieve this, many sections were added to the Web site to grab the travelers attention. These include a night life section and an interactive trip planner that prepares a custom itinerary for the visitor. Additional sporting and facility information for meeting planners was also added. Through the Web site, there were 31,280 visitor guide requests, which marks an increase of 5,239 over the previous fiscal year. Nearly 175 Web site visits take place each day. Awards Visit Lubbock received a 3rd place People's Choice Award for Tourism Awareness in August 2008 from the Texas Association of Convention and Visitor Bureaus (TACVB). 28 Sales Department During the 2008 fiscal year, Lubbock welcomed the new Hampton Inn & Suites on the West Loop. The Hampton Inn & Suites added an additional 80 rooms and 29,200 room nights to the Lubbock area. Over the course of the next fiscal year, Lubbock will benefit from the newly renovated Days Inn South, Hawthorn Suites, and the Overton Hotel & Conference Center. Events Visit Lubbock' hosted over 225 conferences, meetings, and tours while servicing over 30,000 room nights. Conventions • National Taxidermists Association (NTA) chose Lubbock as the host city for their 2008 Annual Convention and Competition. Over 300 taxidermists and their families from across the United States traveled to Lubbock to attend seminars, learn new techniques, and compete in the NTA Annual Competition, which featured over 100 museum quality entries. Participants were treated to an evening at the National Ranching Heritage Center. • County Treasurers Association of Texas hosted their 59th annual conference in October 2007. Over 125 County treasurers from across the state came to Lubbock in order to gather new information about their industry. The Association also chose to add their logo to the infamous red and black tote bag, which was passed out to participants. • Texas State FFA Association held their 80th annual conference in July 2008. The United Spirit Arena hosted over 10,000 FFA members and guests. This year's convention marked several milestones for the FFA Association, including: - Over $2 million in scholarships were awarded during the convention - Dr. Larry Case, Executive Director of the National FFA, attended the Convention for the first time - The Lubbock Host Committee raised over $250,000, the largest amount ever raised by a Host Committee 29 Group Tours • In March 2008, Lubbock was greeted by a tour group of British citizens. This group came to Lubbock after changing their itinerary to include the George Strait concert. Visit Lubbock also welcomed a group of 23 tourists from Belgium, who came to visit the agricultural facilities in the area. Meet Lubbock In an effort to become the Lubbock Chapter of Meeting Planners International, Meet Lubbock holds a quarterly luncheon with meeting planners and conducts weekly sales calls to Lubbock Independent School District, Region 17 Schools, Lubbock Christian University, Texas Tech University, Wayland Baptist University, as well as corporate offices throughout the city. Return on Investment 30,975 room nights were occupied at an estimated stay of 3.29 nights per attendee. This yielded 15,003 attendees with an average reported trip expense of $322.88. This resulted in a direct economic impact estimated at $10,001,208 from convention and meeting attendees. Awards Texas Meetings + Events recognized Lubbock as a finalist in the category for "Best Destination Marketing Organization" in the western portion of the state. Hotel Information Visit Lubbock has a goal of maintaining 621/10 occupancy for the city of Lubbock. Occupancy for Fiscal Year 2007- 2008 is 61.6°0. This is an increase of 4.9% over Fiscal Year 2006-2007. This is calculated as a percentage of the rooms that are available in any given month. Room rates for Fiscal Year 2007-2008, at $73.10, are 6.8% higher than Fiscal Year 2006-2007. Proportionately, revenue per available room (RevPAR) increased 12.1 % during Fiscal Year 2007-2008 to $45.12. This number is calculated based on total revenue divided by all of the rooms in the supply, which also includes vacant rooms: * Data provided by Smith Travel Research, June 2008 Destination Report 30 Lubbock Sports Authority The Lubbock Sports Authority (LSA) manages and services all sporting events for Visit Lubbock, Inc., the Convention and Visitors Bureau. This includes events by the University Interscholastic League (UIL), the National Junior College Athletic Association (NJCAA), and others. For all events that bring in participants from outside the community, the LSA offers to: • Enhance credibility of the event by providing an increased level of visible city and community support • Assist with objectively assessing exact, specific event needs in order to determine if Lubbock is a suitable host destination • Check potential event dates against master calendars to prevent conflicts • Request room blocks and rates for consideration • Assist with the evaluation of facility needs and final selection • Work with the client to provide professionally prepared event hosting proposals and presentations • Host site inspections by governing body • Provide experienced, objective, and professional assistance in planning events • Use existing relationships with sponsors and vendors to package events with other sports events to enhance the overall level of attractiveness • Market the event to increase the number of participants and spectators • Provide city maps, visitors guides, and event -specific restaurant guides for participants and spectators 31 For the Lubbock Sports Authority, servicing the event from the time it arrives within city limits until it departs is all part of the package. During this successful year, the LSA has exceeded its original servicing goal, hosted the largest Texas State USBC Women's Bowling Championship Tournament, and built a relationship with Texas Tech and the NCAA. The LSAs involvement in public relations is a recent expansion of the department. Press releases advertising events to the public, the organization of event volunteers, and the promotion of local awareness through advertisements, sponsorships, and the distribution of Visit Lubbock products, are only a few of the responsibilities of the public relations sector. The LSA continues to advertise in a variety of magazines and sporting event programs, such as: • Collegiate Baseball Hall of Fame Program • Gator Bowl Program • Southwest Softball • Sports Destination Management • Texas Six -Man All-Star Program Select Events and Economic Impact Event Room Nights Estimated Economic Impact Buffalo Springs Lake Triathlon 4,479 Caprock Holiday Basketball Tournament 2,350 NJCAA Region V Baseball 2,480 Texas Six -Man All-Star Games 2,990 Texas State USBC Women's Bowling Championship 2,890 Tumbleweed Volleyball 2,886 UIL Regional Cross Country Total 1,975 20,050 $1.46 million $758,768 $800,742 $965,411 $933,123 $931,832 $637,685 $6,487,561 32 Closing Statements Through the years, the Lubbock Economic Development Alliance and Visit Lubbock have worked together to provide a better quality of life for Lubbock and her citizens by promoting economic growth through job creation, new capital investment, promotion of local businesses, sporting events, and tourism. Lubbock EDA and Visit Lubbock are proud of their accomplishments. Over the next year, both organizations will strive to achieve and surpass their company goals. This next fiscal year brings new opportunity to Lubbock. Lubbock EDA has already begun to take steps towards a promising future. Our National Marketing Campaign continues to develop with new ideas each and every day, helping to provide a strong workforce for the Lubbock community. Business Retention efforts strive to support our local business community. With the new Business Park and Rail Port set in place, new industry has never had a better opportunity than Lubbock, Texas. Lubbock EDA is determined to bring the absolute best to the table. Even though the national economy experiences challenging economic times, Visit Lubbock plans to grow in advertising and marketing, hotel room bookings, and sporting events. The Sales Department has already booked 12,500 hotel rooms for FY 2008 — 2009 and the Lubbock Sports Authority has already scheduled 135 events for servicing at time of publication. The Visit Lubbock. org Web site continues to grow in order to better inform the interested traveler of this great city and cater to their needs. We owe our success to the Lubbock community and our regional partners. Without their assistance, what we do would not be possible. L U B B O C K ECONOMIC DEVELOPMENT ALLIANCE � LUBB(*CK.