By: SEDC
It’s ingrained in all of us –– the mythical resilience and determination and toughness is the stuff of legends. Whether you were born here or arrived later, most either possess innately or absorb the pride to call themselves Texan.
It’s not just people that love Texas. Texas is now home to more Fortune 500 companies than any other state. For every adjective that describes being a Texan, there is an equal number of reasons for companies to love Texas: lower cost of living, highway infrastructure, cheaper utilities costs and gas prices, and no state income tax. Texas is now also home to many Tier-1 universities. Most importantly, Texas is known for its business-friendly common sense regulatory environment.
Like everything else Texas does different, so does the idea of placing the power of government at the local level. A quick history lesson teaches us that because Texas was so big, early founders wanted counties to be small enough that residents could travel on horseback in a day for business at the county seats1– the responsible party for courts, jails, schools, and roads. To this day, the county determines these above-mentioned responsibilities along with the levying of taxes.
In 1979, the Texas Development Corporation Act of 1979 was created to give cities and counties the ability to finance new and expanding businesses, via tools such as abatements or refunds of property tax to help underdeveloped or blighted areas. In 1997, the City of Schertz adopted the policy via local voter approval and thus began the operations of the Schertz Economic Development Corporation (SEDC).
Since the inception of the SEDC, the local business community has grown to 124 primary employers with over 7,500 employees. In the last year and half alone, three Fortune 500 companies have chosen to expand their companies in Schertz, with local officials citing pride to partner with global brands that are doubling down in Schertz.
In 2012, Fortune 500 company Amazon invested in over a million square feet facility in Schertz and in 2021, expanded their footprint with a new delivery-type station that brought new, full-time jobs. Schertz Mayor Ralph Gutierrez said, “Amazon continues to provide opportunities and reaffirm the competitiveness of our city and region as a premiere location or business.”
“We welcome the expansion and continued investment from this global industry leader, he said.
In 2012, Fortune 500 company Sysco built a 630,000 square foot facility to serve as a regional distribution center and combine two locations into one. In 2022, the corporation announced plans to expand the facility by adding 100,000 square feet and 40 jobs. Sysco Regional President John Miller said Sysco was committed to continuing the growth trajectory in Schertz with these substantial investments and increased the employee count to over 500.
Additionally, Sysco and the SEDC were able to help secure a State Enterprise Zone project designation, an economic development tool to be considered for State of Texas sales tax refund of qualifying expenditures based on the number of good-paying jobs and sales tax paid. Companies must meet the capital investment thresholds and/or retain jobs that employ a certain percentage of economically disadvantaged individuals, enterprise zone residents or veteran.
Tools like the EZP continue to make Texas a preferred choice for companies considering new investments,” said Adrian Perez, Executive Director of the Schertz Economic Development Corporation. “Sysco is a model corporate partner and is the first project to be nominated for a State Enterprise Project designation,” added Perez.
The EZP is a tool provided by the State of Texas that provides local jurisdictions to utilize Sales Taxes Collected by the State of Texas to ensure that local companies are encouraged to expand in the Great State of Texas. The State puts its money where its mouth is. For the first time in its history, the City of Schertz took hold of this authority and adopted the local ordinance that allows the City to make these nominations. Its first nomination was Sysco and in a particularly competitive year for these nominations – the State chose Sysco.
In 2010, Fortune-500 company Caterpillar Inc. established a manufacturing facility that machined C27 and C32 liter engine blocks and 9.3-18-liter cylinder heads to support various Caterpillar products, particularly the Large Engines business in nearby Seguin, Texas. In 2022, Caterpillar announced plans to expand investment in the City of Schertz, adding $24 million in state-of-the-art equipment to the manufacturing facility, and 24 new primary jobs by 2026, on top of the existing 145 jobs. This addition will bring the total payroll to more than $8 million.
Under the 10-year agreement, Caterpillar will maintain a total of 169 jobs and a base payroll exceeding $8 million. The company must also maintain a minimum in personal property investment. With a successful annual performance, the company will receive a grant from the Schertz Economic Development Corporation.
“Schertz is a wonderful place to work, and we’re excited to be a part of this community,” said Mark Stratton, General Manager of Large Engines in Caterpillar’s Industrial Power Systems Division. “We are helping our customers build a better, more sustainable world by executing our strategy through operational excellence, expanded offerings, services and sustainability.”
These three Fortune 500 companies in Schertz continue to recognize the benefits and profitability of doing business in Schertz, TX and that is a reflection of Texas core values and business practices. With over 1200 cities and 254 counties practicing economic development in the State of Texas, it’s no wonder the state is:
- #1 for Corporate Moves, 6 years in a Row
- #1 in Capital Investment, by Site Selection magazine
- #1 in Population Growth
- #1 Energy Producer in the US
- #2 for Agricultural Science Doctorate Degrees
- 9th largest economy in the world
The State of Texas does it right. They lead by example, support the local government in providing the tools to keep secure better jobs and investment, and stay true to what makes Texas one of the fastest growing states in the Country. And in true Texan fashion, live to tell about it.
“it ain’t braggin’ , if its true!”
SOURCE: https://www.texastribune.org/2018/07/03/beto-orourke-visited-all-254-counties-texas-why-are-there-so-many/