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.
For the 3rd quarter of FY19, there have been two new City Council approved agreements totaling $23.6 Million. These agreements include:
- The expansion of Heavy Construction Systems Specialist, Inc. (HCSS) totaling $12,000,000; and
- The approval of "Project Y" (development of two industrial speculative buildings, not associated with a business) totaling $11,600,000.
Since the year-to-date total for FY19 is not above the 75% threshold (or $30,000,000) through Q3, this measure has been evaluated as caution. With one more quarter in FY19 to go (July through September), this measure has the opportunity to reach the goal of $40,000,000. Staff continues to work with corporations and developers to bring investment opportunities to the City of Sugar Land.
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.