Southeast Texas Growth Issues

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Southeast Texas Growth Issues
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• Southeast Texas has seen modest growth from 1960
  to 2006
• Many outsiders moving to Southeast Texas have
  gravitated to the school districts of Lumberton,
  Nederland, Port Neches-Groves, Bridge City,
  Orangefield, Little Cypress- Mauriceville, and
  Hampshire-Fannett.
• Future industrial expansions are creating
  significant housing and workforce challenges.

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• Projects Announced
• Company Total Cost Timeline Staffing
  Need
• Cheniere 1.0 B 2006-2008 1,000
• Golden Pass 1.0 B 2007-2009
  600
• Motiva 4.5 B 2007-2010 4,500
• Total 1.8 B 2007-2010 3,500
• Valero 1.0 B 2007-2010 2,000
• Sempra 1.0 B 2008-2010 530
• Total Projections 10.3 B 2006-2010 12,130

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• It is predicted that the industrial capital
  projects in SETX will be approximately 10,000 to
  15,000 workers during the period of 2007 through
  2010.
• It is believed that the shortage of skilled labor
  can cause an increased staffing need to attain
  the same productivity needed to complete the
  projects.
• It is anticipated that the ripple effect will add
  an additional workforce need of 2,000 to 5,000 of
  commercial construction workers.

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• This does not include the need for workers in the
  residential construction market, the maritime and
  drilling rig repair sector and the service and
  public sectors impacted by the projects and boom
  of the energy economy.
• Another several billion in new projects could be
  announced to add to the expansions. A one
  billion project is negotiating the land purchase
  as we speak and a 180 million project will be
  announced December 7. These are Beaumont
  projects.
• It is anticipated that the total workforce need
  of just the industrial and commercial workforce
  will range from 27,000 35,500 (current usage
  plus future projections).

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Other workforce challenges

• CBI purchased Trinity Island and plan to employ
  1000 in the next three years
• Lamar University has 25 million in new research
  dollars and there is a goal to expand to 50
  million. Research dollars translate into new
  professors, graduate assistants, and other
  support workers.
• Port of Beaumont has record years with military
  and energy cargo to support expansion to Orange
  County. The military is expanding its presence at
  the Port of Beaumont.

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Other workforce challenges (continued)

• Memorial Herman Hospital seeking to expand by 56
  beds. Beaumont is already a regional healthcare
  hub.
• The local call center industry is thriving
  seeking to expand by hundreds of jobs.
• We can estimate 8000 permanent new jobs just from
  the announced industrial expansions. We believe
  the number is higher.
• We are faced with a significant expansion of
  infrastructure. At least one third of the workers
  who come from outside the area for the expansion
  projects need to stay to maintain our expanded
  facilities.
• The workforce of construction workers and
  petrol-chemical workers are aging suggesting the
  need to recruit replacements.

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Many housing initiatives are being planned

• Hurricane repair / rebuild (26 428 million)
• Development / New Construction
• Single family home development
• Multi-family developments (2000 permits)
• Downtown lofts and townhouses
• Metropolitan Park
• 20 million grant to the City of Beaumont for
  assisted housing

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Many housing initiatives are being planned
(continued)

• Lodging (there are a number of hotels being
  constructed in the Port Arthur and Beaumont
  areas).
• Temporary solutions such as RV Parks

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Summary

• We have the opportunity to attract new workers
  and families to the area.
• We need to address one of the biggest barriers to
  moving to Beaumont, crowded outdated schools in
  our growth areas.
• We should promote the growth of the tax base to
  allow us to further invest in education and
  community infrastructure.