Qu~arterly Update/67531/metapth1032361/m2/1/high_r… · air conditioning, demand control and...

7240 . .'Z*0 f Z6 TEXAS STATE DOCUMENTS

TIC takes exceptionTo study rankingState eighteenth

The Texas Industrial Commis-sion (TIC) has analyzed and takenexception to a survey of the 48contiguous states' business climatesmade by Alexander Grant andCompany (AGC), a firm of certi-fied public accountants in Chicago.Their findings rank Texas 18thin business climate.

The AGC report followsanother such study made in 1975by The Fantus Company (a sub-sidiary of Dun and Bradstreet)whose business is to recommend toits clients the most attractive areasfor expansion and relocation. Texasranked number one in the Fantusreport.

The AGC report, commissionedby the Conference of State Manu-facturers' Associations (COSMA),judged the states on the basis ofcriteria which were weightedaccording to the value placed oneach by COSMA members. Thusthe retail, wholesale, service andprofessional sectors were not con-sulted. "Since manufacturing ac-counts for approximately 17% ofthe labor force in Texas, it appearsthat a major portion of our econo-my was excluded in this determina-tion of optimum business climate,"says Danny Choate, manager ofTIC's Research & Data ServicesDepartment.

TIC's research department alsofound that selected factors thatcould be used as a reliable measureof business climates were not in-cluded. For example, in the num-ber of manufacturing jobs won/lostbetween 1968-1978, Texas rankednumber one. This is a definite

(See AGC REPORT, Page 7)

Fourteen hundred attendees participated in the third annual IndustrialEnergy Conservation Technology Conference and Exhibition held inHouston April 26-29. A special supplement covering the conference isincluded in this issue of TQU.

Texas Manufacturers shouldBeware of directory scheme

Texas businesses should bewareof a scheme that could cost themmillions of dollars.

The U.S. Postal Service hasfiled a motion in the Austin federalcourt that would allow postalinspectors to detain mail for the"Texas Manufacturers Directory."According to Postal InspectorHarold Cross, businesses have beensolicited by telephone or billed forexpensive listings in the non-existent directory. Listings general-ly run between $200 and $300.

The sales people involved in thescam imply a connection with alegitimate book, The Directory ofTexas Manufacturers, a University

of Texas publication that does notcharge firms for listings. The UTpublication, which lists more than14,000 firms, is probably beingused as a source for potentialvictims.

Postal authorities don't knowyet how many businesses havebought listings in the allegedlyfraudulent "directory," but Crosssaid he is aware of at least 50complaints to the Postal Service.

The Austin address listed forthe company is 333 Perry-BrooksBuilding, a legitimate mail for-warding firm. The headquarters forthe alleged scam is in North Holly-wood, California.

i U LIBRARY

VULLELON

Te a w SUMMER, 1981

laas

Qu~arterly Update Published by the Texas Industrial Commission

2 f If 1 8 1984

Texas QuarterlyUpdate

Vol. 1 SUMMER, 1981 No. 2

GOVERNORWilliam P. Clements

COMMISSIONERSDon Adams, Chairman

Ray Clymer, Vice ChairmanLewis E. Bracy, Jr.

Zack BurkettHector Gutierrez, Jr.

James T. HuntPat MauritzSam Naifeh

Jim SaleJames H. SimmsC. Truett SmithJon Underwood

EXECUTIVE DIRECTORGerald R. Brown

STAFF AND CONTRIBUTORSCheryl L. Rummel, Editor

Ralph Hausser, Associate EditorSarah Hubert, Contributing EditorLofton Levels, Editorial Assistant

Nancy J. Gamble, TypographyJackie Powell, Reproduction

For Information Call:512/472-5059

Executive DivisionFiscal & Staff Services

Communications & InformationRural Loan Fund & Revenue

Bond Administration

Economic Development DivisionIndustrial Locations & Services

Energy UtilizationSmall & Minority Business

DevelopmentResearch & Data Services

International Development DivisionInternational Trade

State of Texas Office (Mexico)

The Official Publication of the TexasIndustrial Commission. Editorial con-tributions are welcome and should beaddressed to Editor, P.O. Box 12728,Capitol Station, Austin, Texas 78711.

PERSONALLYSPEAKING

Ft. Bend County Judge Jodie Stavinoha

The industrial tax base is a most important factor in deter-mining the financial stability of a county or municipality. This is thereason I have placed industrial development as one of my top prior-ities in Fort Bend County. Two years ago Fort Bend County receivedan A-1 bond rating by the rating agencies, being denied a higher andmore desirable AA rating only because our industrial tax base wasnot in proper proportion to the residential and commercial base.

There are several reasons for the importance of the industrialrate. Good industry provides more stability in the tax structure andalso normally requires much less people-related services than aresidential area would require. For instance, a 10-acre tract of landcould be the site of an industrial facility valued at $10 million. Toaccomplish this with a residential area on a 10-acre tract wouldrequire at least 100 residences, each with a value of $100,000. Sucha development would require that additional services, includingpolice and fire protection, roads, educational facilities, drainage,sewage and garbage pick-up, would have to be provided for 100families.

Often-quoted statistics indicate that a reasonable tax rate ona residence can only cover 40 to 50 percent of the cost of theseservices. The remainder must come from the industrial, utility andmineral tax base, or otherwise the residential taxes suffer the con-sequences.

The ideal situation would be for the tax base ratio to be 40percent residential and light commercial and 60 percent industrial,utilities and minerals. However, a 50 percent ratio would beacceptable.

Fort Bend County's ratio for the past three years has been asfollows: 1978 - 63 percent residential and light commercial, 15percent utilities and industrial, 22 percent minerals; 1979 - 61percent residential and light commercial, 18 percent utilities andindustrial, 21 percent minerals; 1980 - 55 percent residential andlight commercial, 18 percent utilities and industrial, 27 percentminerals.

Another problem Fort Bend County is facing is depletionof our mineral reserves, and we must plan for continued depletionin future years. Even though the percentage of mineral values in-creased in 1980, this was due only to the increased prices of oil andgas.

Therefore, it is imperative that we increase our industrial baseto make up for this loss of mineral values in future years. Severalcities and the chambers of commerce in the county have continuingprograms to attract new industry which I commend very highly.However, industrial development cannot be accomplished withoutthe complete cooperation and support of our many governmententities, citizens and real estate developers.

(Continues on Page 4)

3

MWW

Fetrioavance-', Venezuela

Petroavance -Mexico will showcase Texas firmsTo most, Petroavance-Mexico

'82 is in the distant future, but inthe minds of TIC's internationalstaff and many Texas business-men, it is close at hand.

February 16-19, representativesfrom participating Texas firms willtravel to the National Auditoriumin Mexico City for Petroavance '82,an international trade showdesigned to provide businessmen anopportunity to display their pro-ducts and services.

A. F. Alagna, director of Inter-national Development at TIC, hasalready made his predictions forthe distant show. "Last year, Texascompanies grossed more than $33million in sales. I feel that we canat least repeat that amount thisyear," Alagna said.

The Mexican trade show, whichis sponsored by the U.S. Depart-ment of Commerce, will featureoil petroleum equipment. "Weplace Texas manufacturing andsales companies in a block ofbooths and try to provide themwith. the most advantageous posi-tion in the show," Alagna said.

Alagna feels that the primelocation for the "Texas section"was at least partially responsiblefor the great success of TIC's mostrecent trade show, Petroavance-Venezuela, which took placeMarch 10-14. Texas companiesaccounted for more than half the$40 million in reported sales fromthe show.

Maracaibo, Venezuela, was thesite of this exhibition of both on

and offshore petroleum and naturalgas exploration production, pipe-line and refinery equipment. TheHotel Del Lago-Intercontinental'snewly completed exhibition hall,located in the heart of this oil-producing center of South America,made a spectacular setting for theshow.

"This show exceeded our ex-pectations with regard to numbersof interested prospective buyers.We received several inquiries foractual purchase. This was a firstfor Afton," said Harold J. Derr,president of Afton Pumps, Inc.in Houston.

"Good show, the attendeesappear to be those who are able toinfluence the specification andpurchase of our equipment," saidTed Wilson, Houston DivisionManager of Norvell Wilder SupplyCompany.

"The show gave us an excel-lent opportunity to display a pro-duct we feel ideal for shallowoil operations in eastern Venezuela,and introduced our company to'decision-making' individuals inVenezuela's petroleum industry,"said Bill Massengale, sales managerfor Challenger Rigs and Manufac-turing in Odessa.

In addition to recruiting, spon-soring and assisting Texas areacompanies, TIC also provided on-site services. A hospitality suite wasmaintained for a few hours at thecompletion of each day's events.This space was used for Venezuelanbuyers and Texas exhibitors to

meet on an informal basis. Theroom was also used during days forbusiness meetings and conferencesby Texas participants.

Other Texas companies thatparticipated in TIC's Texas sectionat Petroavance-Venezuela '81 in-clude: Acme Cleaning Equipment,Houston; Baker World Trade, Inc.,Houston; Cameron Iron Works,Houston; Compressor EngineeringCompany, Houston; Dearman Inter-national, Inc., Pearland; Delta XCorporation, Houston; Geosource,Inc., Houston; Geolograth-Pioneer,Houston; and Hughes Tool,Houston.

Alagna said TIC is interestedin increasing Texas exports whichin turn provides employmentopportunities for Texans.

"Our trade shows can helpindustries advance and employmore people. The shows give buyersthe opportunity to become betteracquainted with Texas productsfirsthand on a personalized basis."

Judging from the past, Alagnasaid he is optimistic concerningthe number of Texas companiesthat will participate in Petroavance-Mexico.

"Texas is the energy capitalof the world. Anyone planning todrill for oil and gas needs ourproducts and services. This exhi-bition will give foreign buyers anopportunity to view the equip-ment firsthand."

I

Attendance at energy workshopPrograms climbs 74% over 1980

Attendance at TIC's energyconservation workshops is up 74%according to a recent departmentreport.

Eleven workshops were heldduring the past three months withattendance reaching 438 - anaverage of 40 persons per work-shop. This compares with a 23person attendance average forworkshops held during the sametime period last fiscal year.

Ted Waldrop, manager of theEnergy Utilization Department,attributes the increased attendanceto two factors - the continuingincrease in energy costs and aquality product. "Over the yearsthe industrial sector in Texas hascome to realize that by attendingour workshops they can really

save money. Our surveys show that84% realize a significant reductionin energy costs by implementingmeasures learned through ourprograms," Waldrop said.

Recent workshops were heldin Amarillo, Canyon, Conroe,Dallas, Harlingen, Houston,Lubbock and Waco covering thefollowing subjects: small plantenergy management, heat recovery,air conditioning, demand controland employee motivation.

Since its beginning in 1978,TIC's energy conservation programhas contributed to a savings of448.1 trillion BTUs of energy.This converts to 77.3 millionbarrels of oil equivalent or $2.7billion of avoided energy costs toTexas industries.

Personally SpeakingI was very pleased that the Fort Bend County Commissioners

Court agreed to form the Fort Bend County Industrial Develop-ment Corporation in 1979. The Fort Bend County Industrial Cor-poration is comprised of the mayors of all the municipalities and thecommissioners of Fort Bend County, thereby making it a verydiversified group covering all areas of our county.

The county IDC has attracted several good, clean industrialprojects to Fort Bend County. Within two years, when all of theseprojects are completed, they should have a total value approaching$50 million.

An added benefit of locating industries of this type in FortBend County is that it provides for a larger and more diversifieddemand for jobs of all types. The industries locating here will offerjobs from the executive level to technical positions to blue collar.They will also require various support services from existing countyindustries and business, and the potential of moving people hereoffers obvious benefits to real estate development.

The effect of this industrial expansion will be felt in all areasof Fort Bend County and the effect on the tax rolls of the muni-cipalities, the county, the school districts and other taxing entitieswill obviously be favorable.

Jodie StavinohaCounty JudgeFort Bend County

Legislation amend -

ing IRB's receivesGovernor's action

Governor Bill Clements hassigned into law legislation amendingthe Development Corporation Actof 1979. The Bill provides for sev-eral significant changes.

Senate Bill 978 was sponsoredby Senator Ed Howard of Texar-kana and Representative Tim vonDohlen of Goliad. Howard and vonDohlen were the authors of theoriginal bill.

A brief summary of the changesis as follows:

1. The Act clearly specifies thatneither sales tax nor ad valoremproperty tax exemptions areallowed on projects financed byindustrial revenue bonds.

2. The Act clearly restricts com-mercial projects to economi-cally distressed areas.

3. The Act more clearly definesindustrial projects to includeair and water pollution controlfacilities, airport and port facil-ities, truck terminals operatedby regulated common carriers,distribution centers and sewageand solid waste disposal facili-ties in addition to manufac-turing projects.

4. The Act allows the IndustrialCommission to incorporate aSmall Business DevelopmentCorporation which would beprimarily used to issue bondsfinancing small business pro-jects backed by SBA guaran-tees.

5. The Act allows financing ofindustrial revenue bond projectswithin the coastal waters of thestate.

6. The Act requires the IndustrialCommission to charge a $1,500filing fee.

7. The Act specifies that the In-dustrial Commission requirenonprofit development corpora-

(See REVENUE BONDS, Page 7)

Supplement to Summer TQU

Energy conference '8Hailed as a success by atten-

dees, participants and media, TIC'sconference on Industrial EnergyConservation Technology andExhibition completed its thirdannual presentation in Houston,April 26-29.

Fourteen hundred energy mana-gers, engineers and educators fromacross the nation and five foreigncountries attended the three-dayconference and viewed the 120exhibits of the latest innovativeenergy equipment and services.They attended 145 back-to-backtechnical sessions ranging in sub-jects on energy management, heatrecovery, electrical systems andcogeneration. Some of the ses-sions were so well attended thatit was standing room only.

The technical sessions stressedpractical energy management andwere organized so that all of theattendees could hear each subjectof interest to them without missingthe other sessions. The preconfer-ence planning paid off.

According to Energy UserNews, a business newspaper stream-lined to the energy field, severalattendees reported the industrialconference was far superior to simi-lar programs such as the Associa-tion of Energy Engineers' annualconference in Atlanta, the EnergyTechnology Conference in Washing-ton, DC, and an annual plant main-tenance conference in Chicagobecause of the careful timing ofevents and the informal feedbackin discussion groups.

"It's one of the tightest shipsI've ever seen - that is the way torun a meeting," said Emory Kim-ball of Monsanto Company, St.Louis. "It's more slanted to theprocess industries than buildingslike some of the other shows are.

- r HY 5'. dl

1


With 27 attendees, Canada led theforeign countries in attendance atthis year's conference. Representa-tives came from as far as Australia,Japan, England, Belgium and Wales.

The papers in general are highlevel and some of the speakers usesuperb slides."

Return on Investment - a termheard frequently in energy manage-ment - was also applicable to theenergy conference attendees.

"There is only one conferenceI really want to go to and that isHouston," said Bill Allinson, Direc-tor of Energy Conservation forCarnation Company in Los Angeles."Last year I picked up an idea thatis going to pay for my trip 5,000times over." He said that at theconference last year he heard aFrito Lay, Inc. engineer deliver apaper on recovery of heat frompotatoe fryer stacks which led himto instigate a similar project atCarnation Company.

"This year I think I might havealready got a couple of new ones,"Allinson said. "I have to thinkabout them," he recalled, sayingthat a paper on recovering energylost when steam line pressure dropsto low levels was of particularinterest. "We have a lot of applica-tions where we drop the steampressure," he said.

Funding cutbacks could devastatePrograms, DOE official warns

The effect upon energy con-servation programs by the currentproposed budget cuts in Washing-ton was the subject of an addressby Federal Energy RegulatoryCommissioner John David Hughes.Hughes, the first Texan to serve onthe Commission, was the govern-mental speaker at the morningsession of the Industrial EnergyConference in Houston, April 27.

In his speech entitled, "IsThere a Future for Energy Conser-vation," Hughes said that he wasnot speaking as a representative ofthe Reagan administration, but hedid emphasize his clear preferencefor federal commitment to moreeffective conservation as well asincreased production of energy.

"With the Reagan administra-tion's budget cut from $1 billionto $200 million for the Departmentof Energy (the agency which fundsTIC's Energy Utilization Depart-ment) conservation programs, thereis great concern that a federal rolein conservation cannot survive,"Hughes said.

"The only major office whichdirectly deals with industrial energyconservation, the Office of Indus-trial Programs, has been eliminatedby the Reagan administration in thefiscal year 1982 budget.

"That means no more work-shops, energy audits for small firms,publications, or annual reports onindustrial energy efficiency. Jointresearch and development ventures. . . are on the doubtful list,"Hughes continued.

"Unfortunately, without gov-ernment support, industry is notlikely to address either the informa-tional or long-term research needs."

Cutting energy conservationprograms seems to violate a beliefpracticed by other departments ofthe federal government, Hughessaid.

Citing a parody practiced bythe State Department's Agency forInternational Development (whichadministers to the U.S. participa-tion foreign aid programs in Africa,Asia and the Middle East), Hughessaid, "AID says there are twoways to feed a starving man. Youcan give him a fish that will keephim alive for a day, or you canteach him to fish so he can feedhimself. AID prefers to teach theman to fish.

"I believe that analogy alsoworks with energy. If you find aman freezing to death in the win-ter, you can make him warm bygiving him a stack of wood anda match. But wouldn't it be more

Legislative Update

House BillsHB 4 by Schlueter. Amends method of determining theamount of corporate franchise tax payable to the state. Com-panion to SB 390 by Jones. Signed into law 5/1. Effectiveimmediately.

HB 25 by Kubiak. Appropriates funds for loans administeredby TIC to establish plants to make fuel from renewable energyresources. Referred to Appropriations Committee. No actiontaken.

HB 69 by Hudson. Expands Small Business Act of 1975 re-quiring state agencies to make 10% of purchases from "smallbusinesses" when possible. Business & Industry Committeehearing 3/9. Referred to subcommittee. No action taken.

HB 329 by Ragsdale. Establishes a procedure for "assigningrisks" associated with providing performance and paymentbonds for prime contractors who wish to contract with thestate or political subdivisions but who are unable to obtainsuch bonds on the open market. Identical to HB 331. Referredto Insurance Committee. No action taken.

HB 336 by Ragsdale. Increases required state contracts withand purchases from small businesses to 20% of the amount ofall such contracts and purchases with 20% of that amount tobe purchased from and contracted through minority busi-nesses. Reported favorably from Business & Industry Com-mittee 4/27. No floor action taken.

HB 397 by Patterson. Amends taxation of family businessproperty under the state inheritance tax. Referred to Ways &Means Committee. No action taken.

HB 629 by Henderson. Changes maximum rate of interestfor state and local government bonds and other evidenceof indebtedness from 10% to 15%. Amends Article 717k-2of Vernon's Civil Statutes. Companion to SB 428 by Jones.Signed into law 4/15. Effective immediately.

HB 902 by Messer. Allows certain employers to self-insuretheir workers' compensation risks and prohibits unfair ordeceptive claims practices. Companion to SB 415 by Traeger.Referred to Employment Practices Committee. No actiontaken.

HB 913 by Wolens. Allows agreements between cities andproperty owners for the redevelopment of unproductive areasand property tax relief. Reported favorably from Ways &Means Committee 5/25. No floor action taken.

HB 939 by McBee. Establishes a foreign trade zone in Del Rio.Signed into law 5/13. Effective 8/31.

HB 1056 by Coody. Permits the $100 corporate franchise taxdeposit to be credited to the payment of a corporation'sfranchise tax liability. Referred to Ways & Means Committee.Tabled 4/8.

HB 1409 by McBee. Establishes a foreign trade zone in EaglePass. Signed into law 5/13. Effective 8/31.

HB 1438 by Semos. Companion to SB 939 by Brown. Esta-blishes a small business loan guarantee program administeredby TIC. Reported favorably from Business & Industry Com-mittee with amendment 4/27. No floor action taken.

HB 1635 by Ragsdale. Programs by home rule cities toincrease participation by minority businesses in contractawards. Companion to SB 977 by Mauzy. Reported favorablyfrom Business & Industry Committee 4/29. No floor actiontaken.

HB 1673 by Wolens. Encourages support and developmentof small and minority business development throughout thestate. Passed both Houses. Awaits Governor's signature.

HB 1823 by Semos. Creates state agency to promote industrialand small business development, travel and film production inthe state. Referred to State Affairs Committee. No actiontaken.

HB 1972 by Sutton. Provides for set asides for minority busi-nesses bidding on construction contracts awarded by govern-mental entities. Reported favorably from Business & IndustryCommittee 5/4. Died on the floor.

HB 2044 by Hall. Establishes foreign trade zone for Laredo.Referred to Intergovernmental Affairs Committee. Tabled4/22.

HB 2058 by Crawford. Establishes a foreign trade zone in thePort Arthur Customs District. Companion to SB 1016 byParker. Referred to Intergovernmental Affairs Committee.Tabled 5/20.

HB 2212 by Thompson. Exempts certain corporations fromthe corporate franchise tax. Referred to Ways & Means Com-mittee. No action taken.

HB 2262 by Von Dohlen. Amends Development CorporationAct of 1979. Referred to Business & Industry Committee. Noaction taken.

HB 2385 by Schoolcraft. Authorizes San Antonio to esta-blish a foreign trade zone. Passed both Houses. AwaitsGovernor's signature.

House ResolutionsHJR 8 by Schlueter. Constitutional amendment prohibitingimposition of income tax. Identical to HJR 18 by Riley. Noaction taken.

HJR 40 by Brown. Constitutional amendment prohibitingthe imposition of net income taxes on individuals. No actiontaken.

HJR 55 by Wolens. Constitutional amendment authorizingcities to undertake and finance certain improvements in areasneeding redevelopment. No action taken.

HJR 71 by Semos. Constitutional amendment relating to theguarantee of small business loans by the state. Identical toSJ R 47. No action taken.

(Continues overleaf)

6

Senate BillsSB 15 by Traeger. Establishes foreign trade zone in RioGrande City. Signed into law 4/30. Effective immediately.

SB 264- by Mengden. Amends the existing "right-to-work"law to outlaw union and agency shops. Reported favorablyfrom Economic Development Committee 2/9. No flooraction taken.

SB 369 by Farabee. Amends Texas Miscellaneous CorporationLaws Act. Signed into law 6/10. Effective 8/31.

SB 390 by Jones. Companion to HB 4 by Schlueter. Re-ferred to Finance Committee. No action taken. Companionbill passed.

SB 399 by Traeger.to establish plantssources. Referred to

Appropriates $15 million to TIC for loansto make fuel from renewable energy

Finance Committee. No action taken.

SB 415 by Traeger. Companion to HB 902. Reported favor-ably from Economic Development Committee with substi-tutions 4/21. No floor action taken.

SB 428 by Jones. Companion to HB 629 by Henderson.Reported favorably from State A ffairs Committee 2/25.No floor action taken. Companion bill passed.

SB 539 by Harris. Creates state agency to promote industrialand small business development, tourism and film productionin the state. Referred to State Affairs Committee. No actiontaken.

SB 939 by Brown. Companion to HB 1438 by Semos. Esta-blishes small business loan guarantee program administered byTIC. Referred to Economic Development Committee. Noaction taken.

SB 977 by Mauzy. Companion to HB 1635 by Ragsdale.Referred to Intergovernmental Relations Committee. Noaction taken.

SB 978 by Howard. Amends Development Corporation Actof 1979. Passed both Houses. Awaits Governor's signature.

SB 1016 by Parker. Companion to HB 2058 by Crawford.Passed both Houses. A waits Governor's signature.

SB 1122 by Traeger. Establishes foreign trade zone for Laredo.Signed into law 5/9. Effective immediately.

Senate ResolutionsSJR 8 by Travis. Constitutional amendment prohibitingthe imposition of net income taxes on individuals or cor-porations. Referred to Finance Committee. No action taken.

SJR 9 by Travis. Constitutional amendment to make "right-to-work" part of the Constitution. Referred to State AffairsCommittee. No action taken.

SJR 11 by Mengden. Constitutional amendment guaranteeingthe right of a person to work without regard to whether theperson is a member of or makes payment to a labor organiza-tion. Reported favorably from Economic Development Com-mittee 2/9. No floor action taken.

SJR 36 by Mengden. Constitutional amendment prohibitinglegislature from taxing personal or corporate incomes withoutapproval by a popular vote. Referred to Finance Committee.No action taken.

SJR 37 by Mengden. Constitutional amendment requiringvoter approval on new or increased state taxes. Referred toFinance Committee. No action taken.

SJR 38 by Mengden.the power of politicalto Finance Committee.

Constitutional amendment restrictingsubdivisions to create taxes. ReferredNo action taken.

SJR 39 by Mengden. Constitutional amendment relating tovoter approval of local government debt. Referred to FinanceCommittee. No action taken.

SJR 47 by Brown. Companion to HJR 71 by Semos. Referredto Economic Development Committee. No action taken.

HB = House BillSB = Senate BillHJR = House Joint Resolution (used to introduce proposed

Constitutional amendments).SJR = Senate Joint Resolution (used to introduce proposed

Constitutional amendments).

The Denison Area Chamber ofCommerce was one of manyorganizations sending a communitydelegation to Austin. Pictured fromleft to right are Garland Thornton,president of the Denison Chamber;State Representative Bob Bush ofSherman; Senator Ed Howard ofTexarkana; and Ken Lovell, direc-tor of the Chamber's GovernmentalRelations Division.

y'.


practical to teach him how to builda shelter and gather his own wood?

"I believe that conservation isthe least costly, most efficient,best long-term solution to thenation's energy problems," headded, stating that "conservationdoes not mean going without -being hot in the summer and coldin the winter.

"I also do not believe there isany conflict between energy pro-duction and energy conservation.We can have the best of bothworlds without sacrificing eithereffort."

Hughes praised the Texas Indus-trial Commission's role in the fieldof energy conservation workshopsand the annual industrial confer-ence. "I firmly believe that thisnation's energy future will largelybe determined by industries likethese brought together by TIC.Individual enterprise and thehealthy spirit of a free market-place is as important in energy con-servation as it is in energy produc-tion." he said.

US. using energy more wisely, saysPresident of API

Energy conservation and in-creased energy production was alsoemphasized in a speech by CharlesDiBona, president of the AmericanPetroleum Institute. DiBona, ChiefExecutive Officer of the oil indus-try's largest association, said thatthe United States is "making realprogress in reducing the amount ofoil it imports," but warned that,"we are far from out of the woodsyet."

"In fact, we will probably facea crisis or two during the 1980s, aswe did during the 1970s. But thedifference between the '70s and'80s," DiBona said, "is that todaywe are choosing - not avoiding -the difficult road to recovery. Weare turning the corner now becausewe are using energy more wiselyand because we're producing moreof our own energy in the U.S."

DiBona pointed out that totalU.S. energy consumption fell bymore than three percent last year -"only the second decline in the last22 years," he said, noting that atthe same time, the gross nationalproduct rose slightly. This, he said,"was due to our using energy moreefficiently, (while) not giving upeconomic growth or stability.

"I think many people wouldbe surprised to learn that we savedenergy last year by using it moreproductively. Most Americans stillthink that conservation meansdoing without rather than doingmore with less."

Noting that the word "conser-vation" once meant "preservation,"DiBona said "conserving energy isnot like conserving woodlands orconserving wildlife. We do not con-serve energy mainly by preservingit. We save energy principally bymaking it more productive, bygetting more output from less fuel,rather than by simply cutting downon the fuel itself."

While DiBona stressed that pro-gress had been made on the energyfront, "no serious forecaster sug-gests that energy consumption willlevel out during the 1980s.

It is clear that conserva-tion cannot, by itself, solve today'snumber one energy problem: ourcountry's excessive dependence onexpensive and insecure foreign oil.

"To get our dependence onimports under control, we will needto produce more energy as well asto conserve more energy."

"Shirt-sleeve session addressesEnergy management topics

"The Shirt-Sleeve Session," anew feature of the 1981 Confer-ence, was an outstanding success.Held the second night of theconference from 7:00 to 10:00p.m., it was specifically designed tobring together the engineers andeducators with the experts inenergy fields. More than 130attendees met with Walter F.Allaire, Allied Chemical; RichardKelly, General Motors; Ed H.

Mergens, Shell Oil; Robert Shade,Boise Cascade; Ray Doerr, Mon-santo; and Milt Williams, Techni-cal Conference Director, to infor-mally discuss specific energy ques-tions and problems relating totheir specific areas of interest.

The forum will be expandedfor the 1982 Conference with theseShirt-Sleeve Sessions incorporatedinto the regular conference sche-dule.

A


Seven firms winEnergy Conser -vation Awards

Seven Texas firms, manufac-turing products that range frompetrochemicals to electronic tele-phone switching equipment, werepresented awards for OutstandingLeadership in Industrial EnergyConservation by TIC's ExecutiveDirector Gerald Brown.

Through their combined con-servation efforts over the pastyear, these seven companies savedapproximately 1.46 million barrelsof oil equivalent.

Each of the companies hadrepresentatives attend one or moreof TIC's Energy Utilization Depart-ment workshops on areas of energyconservation applicable to its parti-cular industry. These workshops,funded by the U.S. Department ofEnergy through the Texas Energy &Natural Resources AdvisoryCouncil, are held regularly through-out the state and cover subjectssuch as waste heat recovery, energymanagement, alternate energysources, and other subjects whichaffect small- to medium-sized Texasfirms. After following the work-shop recommendations, the com-panies submitted detailed explana-tions of their conservation effortswith the breakdowns in percen-tages of energy saved for electricity,natural gas and other energysources.

The winners were chosen on apercentage basis, enabling thesmall firms to compete equallywith the larger companies.

Accepting the awards from left to right are:

T. Bruce Brunelli, Senior Electrical EngineerKelly Springfield Tire Company, Tyler, TexasKelly Springfield is a division of Goodyear Tire and Rubber Company.

Jose I. Verdin, Refinery EngineerTesoro Refining Marketing & Supply, Carrizo Springs, TexasTesoro, a crude oil refinery, is based in San Antonio.

Robert R. Baker, Plant ManagerAir Products & Chemicals, Pasadena, TexasAir Products manufactures chemicals which are made into polyurethanefoam for car seats and insulation.

Harold L. Gluckman, PresidentHouston Die Casting Company, Houston, TexasThe company manufactures aluminum and zinc die castings.

Gerald R. Brown, Executive DirectorTexas Industrial Commission

J. C. Stewart, P.E., Managing EngineerWestern Electric Company, Mesquite, TexasWestern Electric manufactures electronic telephone switching equipment.

Fred Jackson, Manufacturing AdministratorOxirane Corporation, Houston, TexasOxirane makes petrochemicals such as propyleneand tertiary butyl alcohol.

A. Fred Dohmann, Project EngineerGulf Oil Chemicals, Orange Plant, Orange, TexasThe Orange Plant for Gulf manufactures polyethylene.

oxide, styrene monomer

7

AGC report findings

Questionable(Continued from Page 1)

indicator of how manufacturersview business climate, yet thisfactor was eliminated from the1980 study, Choate said.

Another question involves thetime period in which the study wasdone. The AGC study states thatthe data used was the latest availa-ble. On each table the date postedis 1980, however, in most casesthe data used was for 1977-78. Forexample, in the factor "Stateand Local Taxes per Capita," thetable ranking Texas 18th in 1980was actually taken from 1977-78information. Using the same sourceand 1978-79 data, Texas ranks11th.

In another factor ranking on"Percentage Change in State andLocal Taxes per Capita" Texasimproves its ranking from number31 to number six if more currentdata is used.

"We feel that each table shouldstate the date of the informationto indicate what conditions existedin those years rather than falselyconnoting conditions in 1980,"Choate said. "Since different yearsare used on various factors, the cal-culation of an overall businessclimate score is not statisticallycorrect for any given year.''

Revenue bond

Regulations

tions to file fee schedules andbond procedures. Bond counseland financial advisors partici-pating in an issue shall bemutually acceptable to the cor-poration and the user.

Governor Clements has untilmidnight June 21 to act on pendinglegislation. At that time all legisla-tion not signed or vetoed becomeslaw.

r ,

Throughout the 67th legislative session many communities sent delega-tions to Austin, hosted legislative receptions and took time to write, tele-phone or personally visit their elected officials to voice their opinions onpending or proposed legislation. Pictured above, the delegation fromDenison visits with Lt. Governor Bill Hobby (center).

41 new IRB Corporations formedFollowing is a list of non-

profit development organizationsincorporated and not published inprevious newsletters:

Allen Industrial Development CorporationAzle Industrial Development AuthorityBell County Industrial Development

CorporationBosque County Industrial Development

CorporationBowie County Industrial Development

CorporationBrazos County Industrial Development

CorporationBrookshire Industrial Development Corporation

Burleson County Industrial DevelopmentCorporation

Capital Industrial Development Corporation

Cass County Industrial DevelopmentCorporation

Cherokee County Industrial Development

CorporationChildress Industrial Development Corporation

Collin County Industrial DevelopmentCorporation

Conroe Industrial Development Corporation

Denton Industrial Development AuthorityEdcouch Industrial Development CorporationElsa Industrial Development CorporationFairfield Industrial CorporationGrand Saline Industrial Development

CorporationHays County Industrial Development

CorporationPort Development Corporation (Houston)Lamar County Industrial Development

CorporationThe Laredo Industrial Development

Corporation

Development Corporation of MercedesMidlothian Industrial Development CorporationPotter County Industrial Development

CorporationOchiltree County Industrial Development

CorporationOlney Industrial Development CorporationRaymondville Industrial Development

CorporationRed River Industrial Development CorporationRichardson Industrial Development

CorporationRockwall Industrial Development CorporationSabine Pass Industrial Development

CorporationSan Saba County Industrial Development

CorporationSelma Industrial Development AuthoritySonora Industrial Development CorporationTomball Industrial Development Corporation

Ward County Industrial DevelopmentCorporation

Washington County Industrial DevelopmentCorporation

Wichita County Industrial Development

CorporationWood County Industrial Development

Corporation

The Industrial Commissionmaintains a complete computerizedlisting of all development corpora-tions in Texas. The listing is availa-ble at no charge upon request.

EDITOR'S NOTE: New incorporations arereminded to provide TIC with a personal con-tact, complete mailing address and telephonenumber. This information is kept on file foruse by industrial prospects.

10

4 ~

®m ILZB3 @r®fg LINDUSTRIALDEVELOPMENTCORPORATION

El Paso County IndustrialDevelopment Corporation

Trinity River IndustrialDevelopment Authority



Fort Bend County Indus-trial Development Corpora-tion

Grand Prairie IndustrialDevelopment Authority


Garland Industrial Develop-ment Authority, Inc.

Galveston IndustrialDevelopment Corporation

Port DevelopmentCorporation

Waco Industrial Develop-ment Corporation

San Antonio River Indus-trial Development Authority


Capital Industrial

Development Corporation


Gulf Coast IndustrialDevelopment Authority


Lancaster IndustrialDevelopment Authority


Industrial DevelopmentAuthority of Harlingen, Inc.

DATE OFFINAL

APPROVAL COMPANY

3/5/81 Continental Water SystemsCorporation

3/5/81 Dotty Corporation

3/5/81 Tony Lama LeatherProducts, Inc.

3/12/81 General Mills ProductsCorporation

3/12/81 Harrison-Tate Interests

3/12/81 The Metalsource Corpora-tion

3/12/81 Newspaper Enterprises,Inc. of Texas

3/12/81 Sullair Corporation

3/12/81 Todd Shipyards Corpora-tion

3/19/81 Atlas Van LinesInternational Corporation

3/19/81 Kirsch Window Treatments,Inc.

3/19/81 S&B Properties

3/19/81 Williamette Industries,Inc.

3/19/81 Rolm Corporation

3/23/81 Willis & Cox Associates

3/26/81 Amega Corporation

4/2/81 Lack Properties, Inc.

4/2/81 Perfect Tinning & ChemicalCompany, Inc.

4/2/81 Reynolds Metals Company

4/2/81 Varmicon Industries, Inc.

AMOUNTAVERAGE RATE

TERM

$ 2,318,00010%-12 yrs.

$ 1,250,0009.75%-10 yrs.

$ 750,0009.6%*-18 yrs.

$ 1,000,00010%-19 yrs.

$ 5,000,00010%-15 yrs.

$ 1,000,0009.75%-16 yrs.

$ 1,750,0009.875%-9 yrs.

$ 2,000,0009.25%-5 yrs.9%-5 yrs.

$ 40,000,0009.5%-3 yrs.

$ 200,0009.5%-5 yrs.

$ 1,500,00010%-25 yrs.

$ 1,400,0009.75%-12 yrs.

$ 6,000,0009.25%*-20 yrs.

$ 8,300,0009%-15 yrs.

$ 2,200,0009.75%-10 yrs.

$ 6,000,0009%-3 yrs.

$ 2,500,00010%-10 yrs.

$ 170,0007.5%-10 yrs.

$ 1,500,0008.75%-12 yrs.

$ 2,500,0009.75%-13 yrs.

ESTIMATEDNO. OF

LOCATION EMPLOYEES

El Paso

Fort Worth

Fort Worth

Addison

Houston

Grand Prairie

Dallas

Garland

Galveston

Houston

Waco

San Antonio

Irving

Austin

San Antonio

Houston

Victoria

Lancaster

Dallas

Harlingen

PROJECTDESCRIPTION

122 ExpansionManufacture customwater filtration systems

30 NewManufacture diesel powerequipment

50 ExpansionManufacture leatherproducts

20 NewManufacture yogurtproducts

20 NewManufacture industrialelectronics

6 NewSteel conversion &distribution center

25 ExpansionOffset printing

46 NewManufacture rock drillingequipment

500 NewDry dock repair facility

35 NewAtlas/Aramco Interna-tional distribution center

50 ExpansionManufacture wovenwindow coverings

15 NewDistribution center

84 NewManufacture printedbusiness forms

400 NewManufacture electronicequipment


100 NewConcrete plant


15 NewManufacture glass pro-cessing equipment

17 NewAluminum recyclingfacility

40 NewManufacture concretepipe

INDUSTRIALDEVELOPMENTCORPORATION

DATE OFFINAL

APPROVAL COMPANY

AMOUNTAVERAGE RATE

TERM

ESTIMATEDNO. OF

LOCATION EMPLOYEESPROJECT

DESCRIPTION


Waller County IndustrialDevelopment Corporation

Port DevelopmentCorporation (Houston)

City of Farmers BranchIndustrial DevelopmentCorporation

Hillsboro IndustrialDevelopment Corporation

McAllen IndustrialDevelopment Authority

Brazos Harbor IndustrialDevelopment Corporation

City of Cuero IndustrialDevelopment Corporation

Brazos Harbor IndustrialDevelopment Corporation

Corsicana IndustrialDevelopment Authority


North Central TexasIndustrial DevelopmentAuthority, Inc.

McKinney IndustrialDevelopment Corporation

City of Belton IndustrialDevelopment Corporation

Longview IndustrialCorporatoin

Port of Corpus ChristiIndustrial DevelopmentAuthority

San Antonio RiverIndustrial DevelopmentAuthority




4/9/81 Whittaker Corporation

4/9/81 Tubular Steel, Inc.

4/24/81 Allied Tube & ConduitCorporation

4/24/81 Thermalloy, Inc.

5/8/81 Tidwell Industries, Inc.

5/8/81 McAllen Public ColdStorage, Inc.

5/15/81 Monsanto Company

5/15/81 Crossroads CanningCompany

5/15/81 The Old River Company

5/19/81 Guardian IndustriesCorporation

5/19/81 ESCO Elevators, Inc.

5/21/81 Fellowes ManufacturingCompany

5/21/81 Control & InformationSystems, Inc.

5/21/81 Rockwool Industries, Inc.

5/21/81 Anvil Products, Inc.

5/21/81 Saber Energy, Inc.

5/29/81 Alamo Cement Company

5/29/81 Wilson, Wilson & Rowland

5/29/81 Lone Star BrewingCompany, Inc.

5/29/81 Coca-Cola Bottling Companyof Fort Worth

$ 3,500,00010%-18 yrs.

$ 5,750,0009.5%-25 yrs.

$ 1,000,00010%-12 yrs.

Carrollton

Katy

Houston

$ 4,200,000 Farmers10%-20 yrs. Branch

$ 1,500,00010%-15 yrs.

$ 2,600,00015%-10 yrs.

$ 8,100,00011%-20 yrs.

$ 2,500,00010%-15 yrs.

$ 5,400,0009.14%-10 yrs.

$ 1,000,00010%*-4 yrs.

$ 5,500,00015%*-5 yrs.

$ 2,500,0009.9%-5 yrs.

$ 1,100,00010%-15 yrs.

$ 1,500,0009.75%*-20 yrs.

$ 5,000,00066% of prime*-10 yrs.

$ 20,000,00013.7%-30 yrs.

$ 1,000,00010%-15 yrs.

$ 1,250,00010%-15 yrs.

$ 3,600,0009.9%-18/2 yrs.

$ 1,000,00010%-10 yrs.

Hillsboro

McAllen

Freeport

Cuero

Freeport

Corsicana

Fort Worth

Plano

McKinney

Belton

Longview

16 NewBulk steel processingplant

48 NewManufacture specialtymetal products

50 AcquisitionFinish and distributetubular steel products

115 ExpansionManufacture semi-conductor accessories

50 NewMobile homemanufacturing

45 NewIndustrial refrigerateddistribution complex

15 NewBulk liquid storagefacility

13 NewManufacture cannedbeverages

15 NewPublic marineterminal

212 NewGlass manufacturingfacility

20 NewManufacture oilhydraulic & freightelevator equipment

65 NewManufacture & dis-tribute corrugatedpaper board products

45 NewManufacture printedelectronic circuitboards

40 ExpansionManufacture insula-tion products

26 ExpansionManufacture pipecouplings & fittings

Corpus Christi 12 ExpansionRefinery dockingfacility

San Antonio

San Antonio

San Antonio

Fort Worth

(Continues on Page 10)

50 NewCement plant

72 NewManufacture woodenbuilding components

35 ExpansionBeer brewingfacility

20 NewProduce & distributeCoca-Cola

NTSU LIBRARYTEXAS INDUSTRIAL COMMISSIONP. O. Box 12728, Capitol StationAustin, Texas 78711

SUMMARY OF IRB APPROVALSINDUSTRIALDEVELOPMENT

CORPORATION

North Central TexasIndustrial DevelopmentAuthority, Inc.

The Greater LaredoIndustrial DevelopmentCorporation

Gulf Coast IndustrialDevelopment Authority

Sabine River IndustrialDevelopment Authority

City of San AntonioIndustrial DevelopmentAuthority


City of MansfieldIndustrial DevelopmentCorporation

Capital IndustrialDevelopment Authority

Brazos County IndustrialDevelopment Corporation

Port of Corpus ChristiIndustrial DevelopmentAuthority

DATE OFFINAL

APPROVAL COMPANY

5/29/81 Bowater North AmericanCorporation

5/29/81 Laredo Cold Storage, Inc.

5/29/81 Haldor Topsoe, Inc.

5/29/81 National Casein Company

5/29/81 American Hospital SupplyCorporation

6/4/81 Dual-Lite, Inc.

6/4/81 United States GypsumCompany

6/4/81 Austin Coca-ColaBottling Company

6/4/81 Norton Company

6/4/81 BWT-Moore, Inc.

* Variable

YEAR-TO-DATE TOTALS AS OF 6/12/81TOTAL APPLICATIONS APPROVED - 72

TOTAL PROJECTS APPROVED - 169

AMOUNTAVERAGE RATE

TERM

ESTIMATEDNO. OF

LOCATION EMPLOYEES

$ 8,800,000 Plano12.375%-20 yrs.

$ 1,000,00010%-8-1/3 yrs.

$ 4,000,0009.95%-6 yrs.

$ 700,00010%-7 yrs.

$ 2,100,00010%-17 yrs.

$ 1,850,0009.5%-10 yrs.

$ 3,800,00010%*-3 yrs.

$ 520,00010%-15 yrs.

$ 2,000,00065% of prime*-

$ 1,500,00010%-10 yrs.

AMOUNT - $249,748,000

AMOUNT - $644,066,517

Laredo

Pasadena

Tyler

San Antonio

Dallas

Mansfield

Austin

Bryan

PROJECTDESCRIPTION

130 NewManufacture com-puter business forms

25 ExpansionRefrigerated foodprocessing & distri-bution center

50 NewCatalyst manufacturingplant

5 ExpansionProduce polyvinylacetate glue

9 NewHealth care productswarehouse & distribu-tion center

100 NewManufacture modularwiring

43 NewDrywall steelmanufacturing

16 NewManufacture & dis-tribute soft drinks

8 ExpansionProduce petrochemicalproducts

Corpus Christi 30 ExpansionProduce oil and gasequipment

ESTIMATED EMPLOYMENT - 5,394

ESTIMATED EMPLOYMENT - 13,911

EDITOR'S NOTE: TIC has computerized reports available on all revenue bond projects approved to date. In addition to the above information,these reports list the original bond purchasers or underwriters, the bond attorneys and the financial advisor. This information isavailable upon request at no charge.

Qu~arterly Update/67531/metapth1032361/m2/1/high_r… · air conditioning, demand control and...

Documents

Transcript of Qu~arterly Update/67531/metapth1032361/m2/1/high_r… · air conditioning, demand control and...