Matagorda County has fared better than most during 2009--a "challenging" year for economic development nationally, according to a year end summary of activity from the Matagorda County Economic Development Corporation (MCEDC).  The county had several large industrial projects either completed or underway in 2009.  Tres Palacios Gas Storage had its $130 million project in operation for almost a full year.  Williams Field Services completed a $70 million expansion at its Markham natural gas processing facility.  Texas Brine is undergoing a $30 million process expansion at its Clemville plant.  These projects will add nearly a quarter billion dollars in new tax base to Matagorda County.

The county's two largest industrial projects are proceeding forward in their permitting processes.  The South Texas Project's power generation units 3 & 4 expansion is on schedule toward an early 2012 permit issuance date by the Nuclear Regulatory Commission.  White Stallion Energy Center expects final Texas Council on Environmental Quality action on its air quality permit in April or May 2010.   Construction should start shortly after permits for these projects are issued.  The two projects represent $12.5 billion in new investment.  Either project would significantly boost the county's tax base, bring increased temporary construction activity and add to its permanent employee base.  Having both proceed simultaneously would cause a major construction cycle running from mid-2010 through 2017 that would have outstanding economic impacts to tax base, construction activity, the housing and retail sectors, and the addition of over 1,000 good career jobs.

We have not escaped feeling recessionary impacts, however.  A synthetic gas prospect has delayed its plans until higher prices for natural gas again make synthetic gas competitive.  A cellulosic ethanol prospect is still interested in Matagorda County for a plant site.  It has two plants to complete before it can focus full attention on Matagorda County as a future plant location site.  Matagorda County also has to address the issue of where to get additional water that would be needed to irrigate 20,000 more acres to provide the natural feedstock that a plant would convert into cellulosic ethanol.  The 2009 drought in the Colorado River basin pointed out the limitations on irrigation water that severe drought conditions impose.  We hope the current El Nino will break the drought and bring rains in the Texas Hill Country needed to replenish the Highland Lakes and provide for all needed irrigation water in the Lower Colorado River Basin.

Most of the projects cited above have a common thread.  That common thread is "energy generation" or "energy fuel production and processing".  We had many more conventional and renewable energy-related companies make inquiries of and explore opportunities in Matagorda County.  We have the resources that many of these companies need.  Therefore, the MCEDC is focusing its efforts on recruiting energy related companies.  We want Matagorda County to become an "energy cluster" for conventional and renewable energy generation and energy fuel production/processing.  These companies represent high investment values, good paying career opportunities, non-exportable jobs, and long-term site commitments by companies.  This is a good economic niche on which to build the industrial future of Matagorda County.

Bay City has experienced a surge in new hospitality sector accommodations with the 2009 openings of the La Quinta, Comfort Suites and Hampton Inn facilities.  Those openings give Bay City 955 motel rooms.  That number equals 39.7 rooms per 1,000 city residents, compared to 13.7 rooms per 1,000 residents in the Houston area and 15.1 rooms per 1,000 residents for all of Texas.  Bay City motels experience over a 60% occupancy rate with double the nightly occupancy of rooms per 1,000 residents than either the Houston area or the Texas average.  Business visitors serving regional industries, temporary housing for contractors during industrial outages, and tourism-related lodging are the major reasons for high occupancy rates.

Palacios also has economic development activity in 2009.  The Bowers catfish processing plant opened.  An ALCO department is under construction.  The Navigation District and the City of Palacios partnered with The Welded Boat Company to help build a new manufacturing facility on the District's new Turning Basin #4.  A new fabrication prospect has selected a site owned by the Navigation District for a new plant to be constructed in Palacios in 2011. 

The MCEDC contributed $70,000 over the past three years to support countywide tourism marketing programs conducted by the Matagorda County Convention and Visitors Bureau.  These programs are yielding positive results, with indications that 2009 may have been Matagorda County's best year for tourism.

Matagorda County's housing market, like the housing market everywhere, has suffered during this recession.  We have new waterfront houses available for purchase in Matagorda.  New lots are ready for home construction in Palacios, Matagorda and Blessing.  We hope to see the lending market open in 2010 to allow qualified purchasers reasonable access to funds for primary and second home purchases.  Matagorda County is going to need a lot of new residential units of all types constructed for the demands projected for 2011 and 2012.  We want the new permanent employees of our new plants to live in Matagorda County.

The MCEDC is financially healthy.  We thank our contributing partners--Matagorda County Commissioners Court, Bay City Community Development Corporation, Navigation District #1, City of Palacios Economic Development Corporation and the Port of Bay City Authority--for their on-going financial support.  Careful management of their annual contributions has enabled the MCEDC to build up a reserve to use as a "closing fund" when a financial contribution is needed to get a desired company to commit to locating in Matagorda County.  We appreciate the time commitments of our eleven board members representing our five funding agencies and the four Chambers of Commerce in the county. 

2009 could have been a lot worst for Matagorda County that it has been.  We hope that the stimulus packages put into place will soon begin to play their desired roles of getting our national economy moving forward again.  Matagorda County had some very positive industrial projects happen in 2009.  We have large and exciting ones on the horizon.  Our future looks very encouraging going into 2010.  We need to use these opportunities to lead the way back to a more expanding local economy, more job creation and more contributions to the quality of life for all our citizens.