1

MEMBERSHIP

INFORMATION PACKET

GALVESTON ECONOMIC DEVELOPMENT PARTNERSHIP P. O. BOX 8029 GALVESTON, TEXAS 77553

409-770-0216 WWW.GEDP.ORG

2

3

ECONOMIC DEVELOPMENT

action plan

4

The GEDP provides businesses and prospective developers interested in investing or expanding in Galveston with the necessary tools to evaluate and complete their projects.

THE FOLLOWING SERVICES ARE AVAILABLE THROUGH THE GEDP:

SERVICES OF GEDP

INFORMATION CLEARINGHOUSE - The GEDP is equipped to supply demographic and socioeconomic Information, available land and/or buildings, and overall economic climate data to interested parties. In addition to these basic services the GEDP can also provide:

* Access to a comprehensive GIS system available for economic development projects in Galveston

* Information on alternative financing programs and incentives available for consideration

* GEDP Investor and Developer Profile magazines detailing Galveston’s Economic Climate

* Access to the GEDP database of available property and building information enhanced by the GEDP’s knowledge of upcoming projects and proposed investments throughout the Island

* Insight into Galveston’s regulatory environment for project development

PROJECT FACILITATION -

The GEDP provides a means for businesses and potential developers to meet with the appropriate resource contacts and/or stakeholders in an effort of streamlining the due diligence process in evaluating potential projects.

As the GEDP is focused on the long-term economic progress of Galveston, facilitation activities are enhanced with the GEDP’s working knowledge and Task Forces focused on sectors including Housing, Emerging Technology, Maritime and Support Services for the Offshore Oil and Gas Industry and others.

OVERVIEW

The mission of the GEDP is to utilize broad-based community support for the expansion of Galveston’s employment and tax bases. The GEDP provides businesses and prospective developers interested in investing or expanding in Galveston with the necessary tools to evaluate and complete their projects. Founded in 1999, the GEDP works to facilitate new projects and/or investments across Galveston Island. Through a Public/Private membership base, the GEDP is available to assist in providing economic, demographic, socio-economic, GIS, and other development information depicting the economic climate of the Galveston business community..

5

Galveston Economic Development Partnership 5007 Avenue U — Building 3311

TAMUG Fort Crockett Campus P.O. Box 8029 Galveston, Texas 77553

409 / 770 - 0216 www.gedp.org

ACTION PLAN

Supplemental to the Services of the GEDP listed above, this action plan is intended to outline what the primary focus of the Galveston Economic Development Partnership will be over the next 24 months, the strategies to be implemented, the deliverables that will occur and how outcomes will be measured. All objectives and strategies of this action plan are intended to achieve outcomes that are consistent with the mission and vision of the GEDP - to support business and community by increasing the employment and tax bases in Galveston. The Industries that will continue to be a priority remain: the Maritime Industry, the Support Services for Offshore Oil and Gas Industries and the Emerging Technology Industry. Strategic Investment Areas will continue with an emphasis on the property surrounding the City’s Incinerator, the Falstaff Building and the UTMB Customs House.

SPECIAL PROJECTS

FORT CROCKETT SEAWALL PROPERTY

Explore redevelopment of the Fort Crockett property located on the seawall. Working with

appropriate stakeholders, identify redevelopment barriers and develop redevelopment

options for returning this property to a viable site contributing to Galveston’s economic and

community benefits.

STORM SURGE SUPPRESSION — IKE DIKE

Continue collaboration with Texas A&M University at Galveston and the Bay Area Houston

Economic Partnership in the development of strategies and actions focused on the

furtherance of a regional storm surge suppression system that would serve to protect the

Galveston-Houston region from future catastrophic events.

6

PROJECT #1: Pelican Island Bridge

Steering Chairman, Galveston County Navigation District #1 Mayor, City of Galveston

Committee: Chairman, Galveston Wharves Board of Trustees

Working General Manager, Galveston County Nav. District Port Director, Port of Galveston

Committee: Deputy City Manager, City of Galveston Mike Alford, TX Dept. of Transportation

Alan Clark, Houston-Galveston Area Council

Potential Harborside Drive Management District Texas A&M Univ. at Galveston

Stakeholders: Pelican Island Organization (Private Industry) Galveston Park Board

Adjacent Property Owners Utility Companies (Centerpoint/Texas Gas)

Galveston County Rural Rail Transportation District Rail Companies (UP/BNSF)

Agencies: Texas Department of Transportation Houston-Galveston Area Council

Galveston County Port of Houston Authority

U.S. Army Corps. of Engineers U.S. Department of Transportation

U.S. Coast Guard Texas General Land Office

Local, Regional, State and Federal Elected Officials Texas Historical Commission

Overview: Two issues regarding the future maximization of economic potential for Pelican Island:

a) Reconstruction of the Pelican Island Bridge for vehicular traffic, and

b) Development of Rail Bridge for rail transportation to/from Pelican Island.

OBJECTIVES Develop a successful strategy for the Galveston County Navigation District #1

for the replacement of the Pelican Island Bridge. This plan will be focused on

three phases 1) Feasibility Analysis; 2) Environmental Studies/Engineering &

Design; and 3) Implementation/Construction.

STRATEGIES a. Utilize the Steering Committee, under the leadership of the Galveston County

Navigation District, to manage the progress and implementation of this plan.

b. Develop and convene the Working Committee for participation and data

collection needed for the development of this plan.

c. Develop a communication strategy for disseminating project progress and

receiving input.

7

PROJECT #2: Gateway Redevelopment - Incinerator

Partners: City of Galveston/Industrial Development Corp. Galveston County

Tax Increment Reinvestment Zone #12 (TIRZ) Galveston Redevelopment Authority

Stakeholders: Property owners adjacent to project site

Agencies: Regulatory Agencies (TCEQ/TWDB/etc.) Texas Department of Transportation

Houston-Galveston Area Council

Overview: Located at the entryway to the City of Galveston this site previously known as the "Incinerator

Site" includes approximately 20 acres of property long desired for new commercial/retail

development.

OBJECTIVES

STRATEGIES a. Develop a baseline assessment of the site's environmental status

with recommendations to the City/IDC for redevelopment options.

b. Develop a listing of development options for the City/IDC to consider

in developing a public-private partnership for developing this site.

c. Develop a working task force of Partner's/Stakeholder's to

participate in the redevelopment process for this site.

d. Develop a conceptual plan of this redeveloped site with an emphasis

on transportation, infrastructure and ancillary development

opportunities.

Develop a successful funding/development strategy for the redevelopment of

this under-utilized asset to the benefit of the island's employment and tax

bases.

8

PROJECT #3: North Broadway Redevelopment - Falstaff

Partners: Private Developer Galveston Redevelopment Authority

City of Galveston/Industrial Development Corp. Galveston County

Stakeholders: Property owners adjacent to project site The Grace Corporation

Galveston College (Job Training)

Agencies: Regulatory Agencies (TCEQ/TWDB/etc)

Overview: Redevelopment of the previously known "Falstaff Brewery" provides an opportunity to

stimulate redevelopment between 25th Street and 61st Street on the North side of Broadway

Boulevard. Although the subject tract is less than 6 acres in total property, the

redevelopment of this site could act as a catalyst for greater redevelopment and connectivity

with multiple projects running east and west of this property.

OBJECTIVES

STRATEGIES a. Continue positive working relationship between the City and the Private

Developer (operating under an earnest money contract) on the acquisition

and redevelopment of the Falstaff building.

b. Develop a working database of properties located between 61st and 25th

Streets North of Broadway.

c. Develop a working task force of Partner's/Stakeholder's to participate in

the redevelopment process for this site.

d. Develop a conceptual plan of this redeveloped area (61st - 25th street,

North of Broadway) with an emphasis on transportation, infrastructure and

ancillary development opportunities.

Develop a successful redevelopment strategy for the redevelopment

of this derelict property and surrounding area to the benefit of the

island's employment and tax bases.

9

PROJECT #4: Strand Redevelopment - Customs House

Partners: City of Galveston/Industrial Development Corp. University of Texas - Medical Branch

Galveston Housing Authority Galveston Housing Finance Corp.

Stakeholders: Property owners adjacent to project site Downtown Strand Business Groups

Galveston Alliance of Island Neighborhoods Philanthropic Institutions

Galveston County

Technology Greater Houston Partnership Bay Area Houston Econ. Partnership

Partners: Bio-Houston Houston Technology Center

Texas Healthcare and Bioscience Institute The Center for Innovation

Agencies: Houston-Galveston Area Council Governor's Office of Eco. Dev.

Overview: Redevelopment of the Strand corridor between 19th and 13th Streets. This connector between

the Historic Downtown Strand District and UTMB has historically been viewed as an "eyesore".

Redevelopment of this area could create the foundation of a "Galveston Land Bank" and fully

connect the Strand area between 25th Street and UTMB.

OBJECTIVES

STRATEGIES a. Develop a working task force of Partner's/Stakeholder's to participate in the

redevelopment process for this site.

b. Develop a conceptual plan of this redeveloped area (19th - 13th street) with an

emphasis on transportation, infrastructure and development opportunities. Included

within this plan will be an updated land use database on the properties located within

this area to explore the creation of a land bank for property redevelopment.

c. Develop a working task force of Partner's/Technology Partner's in formulating an

action plan for emerging technology business development and marketing outreach

activities.

d. Develop a marketing plan that encompasses technology development associated

with UTMB and provides marketing/outreach/participation in regional and statewide

initiatives focused on emerging technology and commercialization.

Develop a successful redevelopment strategy for the redevelopment of this development

area that leverages public and private sector investments and benefits the island's tax and

employment bases. Central to the successful redevelopment of the area will be the creation

of a working committee dedicated to emerging technology from a regional perspective.

10

Galveston’s Economic Base is highlighted by a

broad cross section of businesses. The Top 10 Employers are in the Education, Healthcare, Hospitality & Tourism sectors.

Galveston’s Tax Rate has remained competitive with

area communities and in spite of a decreasing population, the tax base has been supported both by existing companies and the addition of many new projects across Galveston Island.

ECONOMIC OVERVIEW:

“Galveston’s economic development is moving -Dr David Callender

forward in a robust and diversified way.” 2013-14 Chairman of the Board

GEDP Developer Profile

Demographic data and statistics from the 2010 U.S. Census and the Bureau of Labor and Statistics

GALVESTON - WORKFORCE

POPULATION 47,743

WORKFORCE 25,215

JOBS IN GALVESTON 36,645

EMPLOYED 22,717

UNEMPLOYED 2,498

UNEMPLOYMENT RATE 7.6%

Source: US Census Bureau, American Commu-nity Survey, Multi year estimates 2007-2011

TOP 10 EMPLOYERS –GALVESTON (2011)

1 UNIVERSITY OF TEXAS MEDICAL BRANCH - GALVESTON

7500 EDUCATION & HEALTHCARE

2 GALVESTON INDEPENDENT SCHOOL DISTRICT

1366 EDUCATION

3 LANDRY’S, INC. *(Employment increases by 45% - almost 600 additional jobs -during the summer)

1300* TOURISM & HOSPITALITY

4 ANICO 866 INSURANCE

5 GALVESTON COUNTY 864 GOVERNMENT

6 MOODY GARDENS 810 TOURISM & HOSPITALITY

7 CITY OF GALVESTON 722 GOVERNMENT

8 MITCHELL HISTORIC PROPERTIES 460 HOSPITALITY & REAL ESTATE

9 TEXAS A&M – GALVESTON 423 EDUCATION

10 GALVESTON COLLEGE 300 EDUCATION

** SCHLITTERBAHN **(Employment increases to almost 700 during the summer)

286** TOURISM & HOSPITALITY

SNAPSHOT OF GALVESTON ISLAND

GALVESTON TAX RATE

(2012)

Per $100 Assessed Value

Galveston ISD $ 1.165

City of Galveston $ 0.554

Galveston College $ 0.189

Galveston County $ 0.613

County Road & Flood $ 0.009

Navigation District 1 $ 0.047

Total $ 2.584

Source: Galveston CAD

Galveston’s Workforce statistics show that Galveston is a job generator

11

ECONOMIC OVERVIEW:

SNAPSHOT OF GALVESTON ISLAND

CITY OF GALVESTON - 2012 TOP TAXPAYERS TOTAL TAXABLE VALUE

RNK ENTITY ASSESSED VALUE

1 CENTERPOINT ENERGY, INC. $ 40,778,190

2 FERTITTA HOSPITALITY, INC. $ 28,380,190

3 GALVESTON TERMINALS, INC. $ 24,831,240

4 GALVESTON ISLAND WATER PARK, LP. $ 15,980,730

5 SILVERLEAF RESORTS, INC. $ 14,824,635

6 HALLIBURTON ENERGY SERVICES, INC. $ 14,618,482

7 DIAMOND BEACH VP, LP. $ 13,414,575

8 WALMART REALTY CO, #504 $ 13,015,320

9 EIGHTEEN SEVENTY STRAND, CORP $ 12,940,810

10 ISLAND HOSPITALITY, INC. $ 11,834,790

SOURCE: GALVESTON CAD

Galveston: First 6 Months - Real Estate Sales Comparison

SINGLE FAMILY RESIDENTIAL

2010 2011 2012 2013

All Galveston $ 63,425,354 $ 60,245,402 $ 64,507,029 $ 86,086,408

# of Units 259 259 273 314

Real Estate Market in

Galveston is showing increases and figures above those from Pre-Ike years. Single Family residential and condo sales have seen a spike.

Hotel Occupancy Tax (HOT) Collections have

increased as well as the number of rooms available. While some figures show actual occupancy flattening, the Average Daily Room rate has increased.

Quarterly Sales Tax Collections in Galveston has

been increasing since 2010 and has now surpassed pre-Ike collections.

Galveston’s Property Tax Base while decreasing in value

after Hurricane Ike, property values and tax collection in Galveston are on the rise and now exceeding values from 2008.

Galveston: Property Taxes

Taxable Value

2008 $ 3,960,575,825

2009 $ 3,434,657,656

2010 $ 3,753,541,340

2011 $ 3,875,058,554

2012 $ 3,992,505,686

Galveston Taxpayers have remained fairly

consistent over the years with the exception of a slight increase in the Maritime and Offshore Oil and Gas industries.

12

ECONOMIC OVERVIEW:

SNAPSHOT OF GALVESTON ISLAND

Galveston’s Student Population is comprised of a myriad of educational opportunities. In addition to the Galveston Public School System, Galveston Independent School District, Galveston also offers 8 additional learning environments ranging from Pre K to High School alternatives. These schools include: Moody Methodist Day School, Trinity Episcopal School, Holy Family Catholic School, Odyssey Academy, KIPP Coastal Village, Ambassador’s Preparatory, Satori Elementary and O”Connell College Preparatory High School. Galveston is also home to three institutions of higher education, which collectively contribute greatly to making Galveston a center for federal, scientific and maritime research and state-of-the-art research/health care facilities. The three institutions are the University of Texas Medical Branch at Galveston, Texas A&M University at Galveston, and Galveston College. In addition to Educational programs, Galveston also boasts a robust health care system providing health care services in Galveston and across the State of Texas.

Student Population

Galveston ISD 6,639

Galveston College 2,200

Texas A&M-Galveston 2,014

UTMB-Galveston 3,012

Galveston Economic Development Partnership 5007 Avenue U — Building 3311

TAMUG Fort Crockett Campus P.O. Box 8029 Galveston, Texas 77553

409 / 770 - 0216 www.gedp.org

13

Galveston Economic Development Partnership

2014 Calendar of Events ===================================================

GG EE DD PP BB OO AA RR DD MM EE EE TT II NN GG SS

MM AA RR II OO '' SS SS EE AA WW AA LL LL II TT AA LL II AA NN RR EE SS TT AA UU RR AA NN TT 44 :: 00 00 PP .. MM .. –– 55 :: 33 00 PP .. MM ..

FF EE BB RR UU AA RR YY 22 00 ,, 22 00 11 44 AA NN NN UU AA LL MM EE EE TT II NN GG

MM AA YY 11 55 ,, 22 00 11 44 QQ UU AA RR TT EE RR LL YY BB OO AA RR DD MM EE EE TT II NN GG

DD EE CC EE MM BB EE RR 11 88 ,, 22 00 11 44 HH OO LL II DD AA YY OO PP EE NN HH OO UU SS EE

FF EE BB RR UU AA RR YY 11 99 ,, 22 00 11 55 AA NN NN UU AA LL MM EE EE TT II NN GG

PP RR EE SS II DD EE NN TT '' SS RR OO UU NN DD TT AA BB LL EE

22 NN DD TT UU EE SS DD AA YY EE AA CC HH MM OO NN TT HH 88 :: 00 00 AA .. MM .. –– 99 :: 33 00 AA .. MM ..

MM AA RR II OO ’’ SS SS EE AA WW AA LL LL II TT AA LL II AA NN RR EE SS TT AA UU RR AA NN TT

22 00 11 44 EE CC OO NN OO MM II CC DD EE VV EE LL OO PP MM EE NN TT SS UU MM MM II TT

TT HH UU RR SS DD AA YY ,, OO CC TT OO BB EE RR 22 33 ,, 22 00 11 44 88 :: 00 00 AA .. MM .. –– 11 :: 33 00 PP .. MM ..

MM OO OO DD YY GG AA RR DD EE NN SS CC OO NN VV EE NN TT II OO NN CC EE NN TT EE RR –– EE XX PP OO AA

GG EE DD PP WW OO RR KK II NN GG GG RR OO UU PP SS Meetings Monthly - Schedules Determined by the Committees

PP EE LL II CC AA NN II SS LL AA NN DD BB RR II DD GG EE FF AA LL SS TT AA FF FF AA RR EE AA UU TT MM BB // SS TT RR AA NN DD AA RR EE AA

GG AA TT EE WW AA YY // II NN CC II NN EE RR AA TT OO RR AA RR EE AA II KK EE DD II KK EE FF OO RR TT CC RR OO CC KK EE TT TT PP RR OO PP EE RR TT YY

All GEDP members are considered Board Members and are invited to attend these meetings. If you are interested in sponsoring a meeting, please contact Michele Hay for details at hay@gedp.org or 409-770-0216. www.gedp.org

14

15 Years in Review15 Years in Review

Projects, Issues and Activities since inception

Galvez Mall Redevelopment Public Policy on Economic Development

Planned Conservation Development Strategy TIRZ 12 - Galvez Mall

Bio Technology Venture Capital Conference TIRZ 14 - Airport

Academy Sports Silverleaf Resorts

County Criminal Justice Center Developer Day

Galveston Island Convention Center Center for Marine Training and Safety

International Bio Trade Show GIS Program Implementation and Consortium

Bolivar Crossing (Ferry Removal) UTMB National Laboratory

Coast Guard Rulings on Rig Movements Harborside Environmental Enforcement

Middle Income Housing Study/Housing Initiatives Port Merger

City Height and Density Study Harborside Drive Management District

Hurricane Recovery Task Force 4B Sales Tax

Texas Industry Development Loan for Port Port/Navigation District/County consolidation

Panama Canal Windstorm Legislation

UTMB Legislation Economic Outlook Conference

East End Flats Technology Center - Customs House

Process Technology Conference Workforce Training Center Galveston College

Sports Stadium for GISD Hurricane Ike Preparedness/Response/Recovery

Economic Development Administration Recovery Act (Oil Spill)

GEDP Economic Summit Investor-Developer Profile Magazines

Exxon Helicopter Base at Scholes Airport First Wave New Park

Edison Chouest Project Dienst Distributing/Broome Welding

Lieutenant Blender Trend Investments

Deep Sea Flexibles Martin Midstream (Tesoro) Expansion

Gulf Copper BP LNG Terminal on Pelican Island

Schlitterbahn Waterpark Clara Barton

Beachtown Palisades Palms

Evia Centex-Pointe West

Anchor Bay Beachside Village

Stella Mare Sweetwater

Piazza Blanca Sunset Cove

East Beach Development Club of the Isle Apartment Complex

Jordan Towers Coast Guard Housing Development

Weekly Homes Maceo Property Developments

Industrial Material Corporation Rolls Royce Marine Facility

Stolt Nielsen Jean Lafitte

Falstaff Historic Medical Arts Building

Weingarten Realty Incinerator

Martini Theatre United Fire

St. Vincent’s House Arlan’s

Jungle Surf 61st and Stewart property

Gulf Of Mexico Foundation Farmer’s Alloy

Elliot Electric Supply Sherwin Williams

Pelican Island Storage Terminals Southwest Shipyards

15

15 Years in Review15 Years in Review

Committees, Boards, Commissions GEDP Task Forces (maritime, bio tech, housing, etc) ESF 14 Regional Plan

West End Land Use Policy Committee Pelican Island Organization

Gulf Coast Economic Development District District Education Council

Airport Advisory Committee Galveston Island State Park

Galveston Island Redevelopment Authority Long Term Recovery Committee

Bay Area Houston Economic Development Partnership Governor's Commission on Recovery

Parks Board Tourism Economic Impact Study IEDC Galveston Recovery Report

Comprehensive Plan Committee Bolivar Rebuilds

Galveston County Economic Development Organization East End Lagoon Project

UTMB Citizens Advisory Committee P-16 Education Council

Galveston Housing Finance Corporation IEDC Oil Spill Report

Multiple Chamber Committees ULI Planning Initiatives

Space Alliance Technology Outreach Program CDM Housing Market Study

Houston Regional Economic Development Association IEDC National Recovery

Downtown Redevelopment Plan Industrial Development Corporation

Plans and Reports that GEDP has participated in since September 13, 2008 ESF 14 Regional Recovery Report

IEDC/US Chamber of Commerce Post Disaster Report

Governor's Commission on Hurricane Ike

Governor's Disaster Report on Hurricane Ike

Long Term Recovery Committee

Downtown Strand Redevelopment Plan

Urban Land Institute Disaster Report

Tourism Economic Development Report - Economic Impact

Urban Land Institute Housing Panel

IEDC Oil Spill Disaster Report

University of Houston SBDC Business Recovery Center

Texas A&M Population Study - Post Ike

CDM Housing Market Study

IEDC Economic Development National Retreat and Recommendations to the Federal Government

City of Galveston Comprehensive Plan and committees

GHA Redevelopment Plan

Revitalization Authority development

16

Term Expires 2014 Term Expires 2015 Term Expires 2016

Keith Bassett David Callender Jayson Levy

Nick Gaido Betty Massey Keith Palmer

Harris L. "Shrub" Kempner Jimmy Rasmussen Jim Pozzi

Robert Smith, III William Rider Victor Pierson

Gwen Wagner William A. Ross, Jr. Leonard Hale

Maureen Patton (2013 CofC) Albert Shannon (2012 CofC) Fred Raschke (2013 CofC)

Ex-Oficio with Voting Rights

Mayor of Galveston Honorable Lewis Rosen

Chairman of Chamber William A. Ross, Jr.

Immediate Past Chair Johnny Smecca

Galveston County Judge Honorable Mark Henry

Ex-Oficio Non-Voting Rights

President of Chamber Gina Spagnola

Galveston Wharves - Chair Benny Holland

Galveston City Manager Brian Maxwell (Acting)

GISD Superintendent Larry Nichols

2014 Executive Committee Roster

17

Galveston Economic Development Partnership Membership Application

The Galveston Economic Development Partnership (GEDP) was founded by the business and community leaders of Galveston Island in 1999 for the expansion and diversification of Galveston’s tax and employment bases.

(Other) Voting member Non-voting member “Under 50-500”

Membership Level: ___________ $5,000 $2,500 $1,000 $500 (under 50 emp) We accept checks and credit cards as payment options. If paying by credit card, please contact Michele Hay at 409-770-0216.

Name of Company:

Primary Representative:

Title:

Type of Business:

Number of Employees:

Address:

Phone number:

Fax number:

Email:

Website address:

PLEASE RETURN FORM BY MAIL TO: P.O. BOX 8029 GALVESTON, TEXAS 77553 DROP BY OFFICE: 5007 AVENUE U GALVESTON, TEXAS 77551 (TEXAS A&M- FORT CROCKETT CAMPUS)

BY EMAIL TO: Michele Hay, Director of Communications at hay@gedp.org

WORKING COMMITTEES/TASK FORCES Please select ALL areas you are interested in participating in:

DISASTER RECOVERY INCINERATOR AREA PELICAN ISLAND BRIDGE

EMERGING TECHNOLOGY MARITIME REAL ESTATE/HOUSING

FT. CROCKETT AREA MARKETING/MEMBERSHIP DEVELOPMENT

STORM SURGE SUPPRESSION / IKE DIKE

GEOGRAPHIC INFORMATION SYSTEMS (GIS) CONSORTIUM

NORTH BROADWAY/ FALSTAFF AREA STRAND CORRIDOR/ CUSTOMS HOUSE AREA