ANNUALREPORT2014

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The Woodlands Area Economic Development Partnership Accomplishments & Report

September 01, 2013 to May 27, 2014 BUSINESS RELOCATIONS Major employer relocations announced or completed during this reporting period represents approximately 1,790 new jobs and 674,000 square feet of new office space. Clariant Oil and Mining Services Switzerland-based Clariant opened the new global headquarters for its Oil and Mining

Services business unit in The Woodlands The campus includes two 32,000-square-foot office buildings The new campus will allow Clariant Oil and Mining Services to double its workforce in the

area by 2015 to approximately 100 employees ExxonMobil Consolidating professional level jobs from the Houston region to Hughes Landing in The

Woodlands Represents approximately 482,000 square feet of Class A office space The company will bring 1,430 new jobs to the community with $179 million in annual

salaries Kiewit Kiewit provides integrated engineering, procurement and construction services to the oil,

gas, refining, chemicals, petrochemicals, biofuels and other process industries Relocating approximately 160 jobs from the Houston region and Kansas City to The

Woodlands Represents approximatley 70,000 square feet of Class A office space Annual payroll of $10.5 million

Layne Christensen Corporate headquarters relocation from Kansas City to The Woodlands Layne is a global water management, construction and drilling company, providing

responsible solutions to the world of essential natural resources — water, mineral & energy Represents approximately 50,000 square feet of Class A office space and approximately

150 new jobs currently Plans to increase staff to approximately 210 jobs

Requests for Proposals Project Condor A U.S.-based Fortune 250 company corporate headquarters relocation Built-to-suit opportunity that can accommodate approximately 550,000 square feet Estimated to create between 600 and 1,500 new jobs, many with executive level skills and

compensation at or near $100,000 annually

Project Delta Ryan A U.S.-based Fortune 250 company corporate headquarters relocation Build-to-suite opportunity that can accommodate approximately 80,000 square feet Estimated to create approximately 290 new jobs with an average salary of $82,000 annually

Project Keystone Company headquarters relocation for a service provider and manufacturer with over 50

years of experience serving primarily the oil and gas industry Built-to-suit opportunity that can accommodate approximately 60,000 square feet. Estimated to create approximately 250 new jobs with an average salary of $70,000

Project IT LAX California-based computer software company corporate headquarters relocation Existing Class A office space that can accommodate approximately 20,000 square feet Estimate to create 40 new jobs with an average salary of $110,000 annually

Project Spring Relocation of an existing inbound technical call and research center from outside the state Estimated to create approximately 125-150 new jobs with an average salary of $45,000

annually Business Recruitment Missions Thanks to the Greater Houston Partnership, we had the opportunity to participate in a

business recruitment trip to Los Angeles. During this trip, we had a chance to meet one-on-one with targeted company representatives, who are vetting relocation or expansion projects. In addition, we attended the Lakers/Rockets game at the Staple Center, where Opportunity Houston hosted area site selectors. Site Selectors are the people every economic developer wants to impress. Professional site selectors help their clients through the process of choosing the optimal location for their business.

During this reporting period, we hosted two national site selectors on individual familiarization trips of The Woodlands.

Avalanche Consulting, Austin, TX Szatan & Associates, Chicago, IL

We had the chance to attend two unique events through the Greater Houston Partnership’s Opportunity Houston. The first was the long awaited American premiere of ―The Passenger‖ presented by The Houston Grand Opera. Bob Harvey, President and CEO of GHP, was our host for the evening and we had the opportunity to meet other investors from the Houston Region. The evening’s events included a cocktail reception, private dinner, orchestra seating, back stage tour and casting party. The second event was the Houston Livestock and Rodeo. The attendees included other Economic Development Allies from around the region and site selectors from out of state.

In conjunction with the Greater Houston Partnership, we are hosting a familiarization trip of The Woodlands for four national site selectors. They will arrive on Friday, June 6th and depart on Sunday, June 8th. Participants include:

Ann Harts, Principal – Hickey & Associates Lew Mollenkamp, Principal - American Corporate Location Services Jack Allston – JBA & Associates Jan Dickson - Dickinson Consulting Group, Inc

Corporate Connections After successfully recruiting Layne Christensen to our community, we held a welcome reception for their executive team, during this fiscal year. As we have done over the years, this exclusive event for our Partners, allows us the opportunity to officially welcome our newest corporate citizens to our community. BUSINESS RETENTION AND EXPANSION American Financial & Automotive Services Adding 40 to 60 new employee due to bringing in a new service product line They are out of room in their current space

Anadarko Petroleum Completed a 31-story building with 550,000 square feet of space to the current

headquarters facility in The Woodlands To date, approximately 700 new positions have been added

CB&I Started construction on an expansion project on their campus in Research Forest, The

Woodlands The expansion includes a 150,000 square foot building, a new parking garage and an

additional floor to the existing parking garage The facility's expansion can accommodate up to 600 employees and could increase the

number of staff to more than 1,000 in The Woodlands Kelsey-Seybold Construction has started on their new $30 million medical office building in Shenandoah. The three-story clinic will double its square footage from 41,000 to 80,000 square feet with

room for 38 physicians This new facility is will open in the winter of 2014, and is located at 106 Vision Park Blvd.

Repsol USA Building an eight-story, 200,000 square foot facility in Research Forest Lakeside in The

Woodlands Company already occupies 140,000 square feet of office space in The Woodlands Expected to increase their local workforce to 700 employees

Schlumberger 80 employees will be moving into McKesson’s Building on the 5th floor. Target date is by

end of June/early July This office will house a portion of their sales division

Strike Expanded to a new 70,190-square-foot lease in One Hughes Landing in The Woodlands 150 employees today, but expected growth is 2 to 3 times that in 5 years

Major Employer Survey Each year, we survey The Woodlands area Major Non-Retail Employers for their local

employee count Represents 61 employers with at least 100 employees Collectively, they added over 2000 jobs since January of 2013 for a total of over 28,016

people Energy and Professional/Specialty Services are the significant growth industries

Corporate Forums We hosted 3 Human Resource forums so far this year. These luncheons provide a great

place for our HR executives of many of our area employees to come to together, network and share best practices. One of these HR forums was particularly interesting as we partnered with Workforce Solutions, a state wide agency who provided a speaker, Dr. Angie Zacharias. She spoke on the topic of How to handle Employee turnover. This event was held at Sam Houston State University, The Woodlands Campus

We have held one Facilities forum to date. These meetings, like our HR group, are meant for facilities executives to gather together and network as well as share best practices. In our first meeting of the year we brain stormed topics that would be of interest to them.

Transportation Forums The EDP has hosted two focus group led by the Choices Transit plan group. We assisted in

facilitating access to the major employers in the area in an effort to understand, from their perspective, our transit needs

Regional Business Retention & Expansion We continue to participate in an initiative started by the Greater Houston Partnership that focuses on Business Retention and Expansion. The group consists of business leaders in the banking, life sciences, oil and gas industries, as well as other economic development organizations from around the city. The idea is that we create a network of people that serve as ―match makers‖ in the business world to make it easier for companies to continue doing business in the greater Houston area. Also, this network can assist with companies expanding and contracting in the region through workforce development, job training, and resume readiness. The committee plans to meet five times this year to develop a framework for the program and an execution strategy moving forward. ORGANIZATIONAL ACTIVITY Membership During the current fiscal year (September 1, 2013 – May 23, 2014) we were able to recruit the following new Partners, representing $102,000 in new annual income:

1. Deutsche Bank 2. Zenith Real Estate 3. LJF Marketing 4. The Blair Law Firm, P.C. 5. Kelsey-Seybold Clinic 6. Community Impact Newspaper 7. BB&T 8. Nexeo Solutions 9. Strike, LLC 10. Bayside Printing Co., Inc. 11. Corporate Incentives, Inc. 12. First Bank 13. Bush Law Firm 14. Fidelity Investments 15. Knighton & Stone, PLLC

We successfully retained 55 Partners, with four losses reported for the year. Speaking Engagements BisNow The Future of The Woodlands Once again, we provided the opening remarks at the annual BisNow, The Future of The Woodlands conference. Over 700 attendees associated with commercial real estate attended this highly anticipated event. BisNow is the largest commercial real estate events producer and publication in the US, covering 31 markets and national news. C.R.E.A.M We were the guest speaker for the November 2013 meeting of the Commercial Real Estate Association Montgomery County (CREAM), where we provided an overview of business recruitment and business expansion projects in The Woodlands area.

The Chamber’s Economic Outlook Conference We had the opportunity again this year to address approximately 600 attendees at The Chamber’s Annual Economic Outlook Conference. We provided insight into business relocations and expansions to this large group of business and community leaders. Frost Bank The Woodlands We joined Bruce Tough, Board Chairman, The Woodlands Township and The Woodlands Development Company on a panel discussion on our community for the management team of Frost Bank, Houston Region. Shortly after, Frost Bank opened their first branch in The Woodlands. GHP Business Council We had the opportunity to participate on a panel discussion at the Greater Houston Partnership’s business Council Meeting comprised of business leaders throughout the Houston region. We joined our counterparts from the Bay Area Houston Economic Development, Central Houston, Inc. and Katy Area Economic Development Council to provide an overview of our organization’s structure, service area and active projects.

The Greater Houston Partnership seeks to build collaboration within the business community. The new Councils give Members a chance to gather with their peers along with leading experts from the business community to gain insights into the key trends and issues impacting the region’s economy.

Houston Apartment Association We presented an economic development update including business relocations and business expansions to The Woodlands/Conroe Chapter of the Houston Apartment Association. InterConnect Expo and Conference 2014 Participated on a business panel discussion on The Woodlands’ vibrant economy and how foreign nationals can invest and be a part of it. Regus Executive Suites We were the keynote speaker for a networking luncheon for the business tenants at Regus Executive Suites in Market Street. The attendees represented approximately a dozen small businesses in The Woodlands. Texas Women in Finance We were the keynote speaker at the quarterly meeting of Financial Women in Texas (FWIT) Montgomery County branch in December 2013, where we provided an overview of our organization including our mission and projects that are in the pipeline. This group brings together women in the financial services industry for the exchange of ideas, experiences and interests. Their mission is to further the meaningful professions or careers of their members and women in general. South Texas College of Law's Annual Commercial Real Estate Course We had the privilege of joining Paul Layne with the Howard Hughes Corporation on a panel discussion at the South Texas College of Law’s 16th Annual Commercial Real Estate Course. This two-day event is for real estate brokers and for attorneys who practice in any segment of the real estate industry. Our panel highlighted the current status, future plans and expected impact from booming North Houston and The Woodlands area.

Organizational Events Quarterly Partner Luncheons To date, we have held two Partner Luncheons. Our first luncheon provided insight into Healthcare Reform with a panel of experts from Gallagher Benefit Services, Lone Star Family Health Center, Memorial Hermann The Woodlands Hospital and St. Luke’s The Woodlands Hospital. Our second luncheon topic was the State of Residential Living. Large residential developers from Johnson Development Company, Holcomb Properties, Toll Brothers and The Woodlands Development Company provided an overview of their respective developments. Elected Officials Reception We held our 16th Annual Elected Officials Reception at The Woodlands Resort & Conference Center. We had over 150 in attendance including Partners, guests and elected officials from federal, state and local levels. Leadership Montgomery County The EDP once again hosted the current class of Leadership Montgomery County for their annual economic development session. Our day started with a panel discussion by economic development professionals from Entergy Texas, Greater Houston Partnership, Greater Conroe EDC, Lone Star College System, The Woodlands Township and Montgomery County Tax Assessor Collector, J.R. Moore. Following our panel discussion we heard from two corporate executives from Conroe and The Woodlands, who provided insight on why they chose Montgomery County to relocate their companies. Representing The Woodlands area, was Jan Sieving, Vice President, Public Affairs, Repsol USA. We ended our session with a behind-the-scene tour of Anadarko’s headquarters in The Woodlands. Industry Tours Lone Star Family Health Center provided EDP Partners a VIP tour of their new community

health facility. Lone Star Family Health Center was founded in 2002 with a Mission to "provide high quality, easily accessible health services to the underserved and the community at large." In 2004, LSFHC achieved the Federally Qualified Health Center (FQHC) status, which means that it's a stable organization with a mission to strengthen, stabilize and expand patient access to healthcare services in Montgomery County. LSFHC now routinely exceeds its mission objectives with over 50,000 low cost patient visits each year at its Conroe facility, as well as another 15,000 hospital visits. In addition to its state-of-the-art family health care services, Lone Star Family Health Center serves as a nationally recognized Family Medicine Residency Program, graduating up to 10 family medicine residents each year.

Black Forest Ventures provided a spectacular tour of their new Galaxy FBO and Black Walnut Restaurant for EDP Partners. The Galaxy FBO is a state-of-the-art facility in the Lone Star Executive Airport and is the benchmark in the industry for general and corporate aviation, and features world-class amenities including an arrival/departure canopy large enough to accommodate even the largest corporate jet.

Senator Cornyn Visit The Woodlands Area Economic Development Partnership recently coordinated a Roundtable Discussion for U.S. Senator John Cornyn and local executives from several of the major employers in its service area. The meeting was hosted by Anadarko Petroleum. The theme of the discussion was, ―The Texas Model‖ of doing business and how The Woodlands, the EDP, the Chamber, and its businesses embody it. Participants discussed what makes The Woodlands and Texas a good place to do business and shared the growth they are experiencing. Other items of discussion were tort reform, mobility funding, Healthcare Reform Act, workforce training, and other pressing issues that affect their businesses. EDP Marketing Thanks to The Woodlands Township funding, the EDP was able to co-op advertise with The Woodlands Development Company in the Houston Regional Economic Development Guide. Designed to become the ultimate resource for site selectors, consultants, and anyone starting, expanding or relocating a business to the 10–county region, the guide will showcase the region marketplace through descriptive and statistical overviews on the regional economy and work force. In addition, we were able to advertise (see attached EDP produced ad) in multiple issues of Opportunity Houston Magazine. Opportunity Houston features articles on living in and doing business in the Houston region and introduces readers to Houston’s diverse economy, global character, and superb quality of life. This magazine targets decision makers in the C-suite in both the manufacturing and energy industries. The standard press run is 10,000 copies, distributed at events and conferences attended by GHP and mailed to decision makers in the targeted industries.

Appointments

During this fiscal year, Gil Staley was appointed for a second term by Montgomery County Commissioner’s Court to the Gulf Coast Workforce Board of Directors. The Gulf Coast Workforce Board is the local board of directors for Workforce Solutions, which serves 13 counties in the Houston-Galveston region. In addition to being the largest of 28 local boards in the State of Texas, The Gulf Coast Workforce Board - Workforce Solutions plans and oversees the delivery of employment services, education, and training. Its local system is one of the largest in the nation.

The board itself is business-led, with a majority of its members representing the private sector. Other board members come from labor and community-based organizations, education, economic development organizations and state agencies. The board sets policy and annually directs expenditures that underwrite services for more than 125,000 businesses and 5.7 million residents in the region.

In addition, Gil Staley, was appointed by Montgomery County Commissioner’s Court to the Gulf Coast Economic Development District Board of Directors. The Gulf Coast Economic Development District (GCEDD or the ―District‖) is the federally designated economic development planning body for the 13-county Gulf Coast State Planning Region. The District’s primary functions are to coordinate the economic development activities of the planning region, provide technical assistance to economic development organizations of the region, and maintain the region’s eligibility to apply for economic development grants and assistance from the Economic Development Administration (EDA).

The GCEDD was incorporated in the State of Texas as a non-profit corporation on June 10, 1988. The EDA officially designated the GCEDD as an Economic Development District (EDD) in January 1991, and the District became an IRS 501(c) (3) in 1995.

The Houston-Galveston Area Council provides administrative and operational staff support for the District. Their work is directed by the District's Board of Directors, which is composed of 28 representatives from local governments, businesses, economic development organizations, and minority interests. The Board of Directors meets quarterly and the Board's five-person Executive Committee meets monthly.

Professional Development Laura Lea Palmer attended a two day certification program through the Community

Development Institute that earned her a Business Retention and Expansion coordinator

EDP staff attended Entergy’s Diversity and Inclusion Summit

EDP staff attended Lone Star College’s Workforce Education Conference

EDP Staff, Holly Gruy and Laura Lea Palmer, attended The Women in Economic Development Forum this fiscal year as a guest of CenterPoint Energy. It was a forum focused on the growing importance in the leadership roles women are bringing to the industry, and is intended to encourage and inspire both professional and personal growth. The Forum's unique programs were designed to allow you to network with some of the most influential women currently working in the industry and learn more about today's best practices.

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