Economic Development - Investment Created
Strong Local Economy
Status Indicators: Proceeding as Anticipated | Monitoring Progress | Reviewing for Improvement | Information Unavailable
Proceeding as Anticipated
Reviewing for Improvement
Please note that Q1, Q2, Q3, and Q4 refer to the first, second, third, and fourth quarters of the Fiscal Year. The City’s Fiscal Year runs from October 1st – September 30th and is denoted by FY.
The City’s ability to create investments is a strong sign of economic vitality within our community. Evidence of this is the relocation of ABM Industries’ corporate shared services headquarters to Sugar Land and the expansion of Team Industrial Services’ corporate headquarters.
This fiscal year the following investments have been created:
- ABM Industries’ relocation to Sugar Land: $9,400,000.
- Team Industrial Services’ expansion: $2,425,000.
- Total investment created: $11,825,000
With the decrease in oil and gas market and other related factors, capital investment showed a decrease for new business expansion and business relocation. Since total investments are below $40,000,000 this measure is below target. The number of investments generated has not increased since the first quarter. However vital progress has been made on projects like Imperial Market, Central Unit, and Telfair-Tract 5. Without those projects, the extremely low vacancy rate does makes capital investment difficult.
Capital Expenditures Investment are required in a company’s performance obligations, which are set forth in Economic Development Incentive Agreements (SLDC Performance Agreements, Tax Abatements or Chapter 380). For the purpose of this measure, the numbers will be reported in the fiscal year in which the agreement is signed and approved.
This measure encompasses Capital Expenditures Investment, including investment through the full life of the incentive agreement, for all incentive agreements approved and established during a fiscal year. The City of Sugar Land’s fiscal year runs from October 1 through September 30.
Capital Expenditures Investment: Funds spent on materials, design, and for construction of the agreed upon improvements and for any applicable (if included) personal property to furnish and equip the improvement, not including land costs.
The target is ≥$40,000,000, which is based on performance better than or equal to the trailing 10-year average of investment created, as required in a company’s performance obligations, through the full life of the City’s various incentive agreements. Excluding the Schlumberger project, which drastically skews the annual averages, historical data shows that the 10-year average annual capital investment created through incentives is over $30,000,000.
Capital Expenditures Investment is a key component of economic advancement resulting from economic development incentive agreements between the City of Sugar Land and corporations or developers. Furthermore, it is a strong sign of economic activity and growth within the City.