President's Blog

Oct 06, 2018

 

Texas is known for its leadership in attracting new businesses to the state. The Gulf Coast currently is the “Gold Star” of new industry and job creation. Most of this success is because of the refineries and oil companies in the area. The new kid on the block is the Liquid Natural Gas projects. In our area those include Chenier, Golden Pass and Port Arthur LNG (Sempra). These projects cost approximately 12 billion each and require 4 – 5 thousand construction workers each. When you couple these labor requirements with the turn arounds and existing plant expansions, the numbers are phenomenal.

 

Almost all states and cities, in an effort to attract new projects, offer tax incentives. Some people see this as giving tax money to companies to entice them but it’s allowing the companies to keep more of their own money in lieu of giving it to the government. Still, the idea, to some politicians and citizens is a gift. And with any gift comes strings. In the case of Port Arthur, if a company signs a tax agreement, there are incentives that will lower their tax burden. These incentives are, hire Port Arthur Citizens and Buy from Certified Port Arthur Businesses.

 

How do you become a Certified Port Arthur Business? The city website has this requirement.  

 

  • Any Port Arthur business, including, but not limited to, a Port Arthur minority and/or woman owned business enterprise (MWBE),
  • A Port Arthur historically underutilized business (HUB), and a Port Arthur disadvantaged business enterprise (DBE) is eligible to apply.
  • An eligible business must maintain its principal place of business within the boundaries of the City and have been in operation for at least six months
  • within the City;

 

Since “principal place” has been determined as their headquarters, this noble idea, that sounds good for political purposes, is not realistic in today’s global market. Currently, out of all the businesses in Port Arthur, Texas, there are 28 listed on the city’s website as having been certified. This program is, at least, 8 years old.

 

The reason for the Certified Business Program is to encourage companies to hire local people and spend their money locally. But, according to city rules, locally means, with a Certified Port Arthur Business. If an industry purchase from any other Port Arthur business, it does not count towards your contract. Since there are so few qualified businesses there is no way industry can comply with the contract.

 

I have an example of a company that spend hundreds of thousands of dollars, annually with a company, located in Port Arthur but gets no credit. A company that has hundreds of employees and pays thousands of dollars in property tax and sales tax does not meet the criteria of “Certified Port Arthur Business.”

 

The chamber has asked to be allowed to work with the city to design a more realistic program that rewards companies for spending their money in the city limits of Port Arthur, to any company that pays property tax or sales tax to the city. To date we have not been asked to help.

 

Other incentives are based on sound ideas and do work. The chamber and the Small Business Development Center – Lamar State College, constantly encourage qualified businesses to apply for the HUB (Historically Underutilized Business Certification.”

 

Who qualifies to be a Historically Underutilized Business?

  • a for-profit entity that has not exceeded the size standard prescribed by 34 TAC §20.294, and has its principal place of business in Texas, and
  • is at least 51 percent owned by an Asian Pacific American, Black American, Hispanic American, Native American, American woman and/or Service Disabled Veteran, who reside in Texas and actively participate in the control, operations and management of the entity's affairs.

The federal government, in an effort, to help these businesses, require certain contractors, by contract, to make every effort to award a percentage of their work to a HUB certified business. The Port, city, state, county, and many other agencies live under this regulation. It gives the HUB business an edge in any bid. Linda at the SBDC Port Arthur knows her business when it comes to helping a business complete the requirements necessary. Her services are free. The chamber encourages its members to call and ask us about this program.

In September the Chamber hosted its first SETX Industrial reverse trade show. Local industries set up booths to allow participating contractors the opportunity to make contact and obtain information about bidding on future or existing projects. There were 9 sponsoring booths and 4 industrial booths. Approximately 150 contractors attended, all giving this first attempt good reviews. I congratulate the chamber’s membership and events coordinator, Paige Snyder, and her ambassador volunteers for their hard work to make this event a success. Rachel Ochoa designed a PowerPoint presentation highlighting the sponsoring and participating companies.

The Beaumont, Orange and Port Arthur Chambers continue to meet, jointly, for the purpose of setting legislative agendas for the Golden Triangle Days in Austin, scheduled for February 12, 2018. I continually encourage business to become more involved in government affairs and pay attention to the direction our state legislatures are going, regarding regulations and taxes. To date, these three chambers are working with other coastal chambers, targeting Windstorm insurance, health facilities, environmental regulations and the funding of higher education and transportation. There will be more issues popping up on our radar. If you know of other legislative issues that hurt or help business development, call the Beaumont, Orange or Port Arthur chambers and give us the information.  

If you want to be a member of an organization that works to keep existing business and attract new business, call Paige Snyder at 409-963-1107 or send her an e-mail at paige@portarthurtexas.com.

 

President's Blog

Sep 01, 2018

 

This time last year we were all digging out from Harvey. A record rainfall had put water in about 80 percent of the structures in Port Arthur and much of the surrounding area. When the chamber staff was finally able to return to work we set about preparing to assist those members that needed help. As it turns out, only about 6 to 10 members asked for our assistance. Volunteers flooded into the area, helping to rebuild. Those with insurance rounded up contractors to begin repairs. FEMA began the long process of helping those without insurance but, a lack of contractors and materials has slowed the process.

The Golden Triangle was not alone in its struggles. The gulf coast, from Corpus Christi to Lake Charles, was flooded. Rockport was almost removed from the map. City services in all cities suffered but Port Arthur was hurting because many of our city vehicles were flooded. Replacing these specialty vehicles takes a long time and is very expensive.

A year later many of our storm drains and ditches remain clogged with debris and silt. The city is addressing these issues as manpower and money becomes available.

As with all disasters there are those pointing fingers and trying to blame someone. The blame game is easy. It is usually from people that think the government can protect them from everything.

The chamber is continuing to offer any assistance, within their resources, to any business. We do not take tax money, so we must rely on our business members for funding. Our biggest assets are our members. Gradually our city is being repaired and, as we look back on August 29th, 2017 the spirit of Port Arthur survived and is moving forward and the Greater Port Arthur Chamber of Commerce will continue to look to the future.

As the end of 2018 draws nearer, the chamber begins to concentrate on electing new directors and appointing new officers for 2019 – 2021.  The officers for 2019 shall be, Chairperson Elizabeth Cravens - MidAmerica Contractors, Chairperson Elect, Ron Fletcher - Entergy, Vice Chairperson - Ron Arceneaux - Arceneaux, Wilson and Cole Architects, Treasurer, Stuart Salter – Salter Insurance, Members at large Randy Sonnier - Total, Art Thomas - Texas Gas Service and Immediate Past Chairperson, Jeff Hayes - Hayes Real Estate.  These seven will comprise the 2019 Executive Committee. The chamber will also have 21 board members.

The chamber is planning a new event, targeting area contractors. The SETX Industry Show will be held in the Robert A. “Bob” Bowers Civic Center on September 18, 2018, 4 pm – 6 pm. The purpose of the industry show is to allow area contractors to meet industrial clients to discuss upcoming projects and gather all information required to become eligible to receive request for bid packets. The event is free, but reservations are required. You may register by going on-line at www.portarthurtexas.com.

The board will participate in a half day planning retreat in October for the purpose of finalizing the budget, planning the next year’s events and board training.

The 119th annual banquet will be in January 2019 at the Robert A. “Bob” Bowers Civic Center.  This fund-raising event for the chamber will also see the awarding of the Ambassador of the Year, Business of the Year, Retiring Directors and the Arthur E. Stilwell Award. Although new directors take office, per the by-laws, on January 1, 2019, they will be recognized at this event. The exact date and speaker are yet to be determined but incoming chairperson, Elizabeth Cravens promises it will be entertaining.

On February 11 – 12, 2019, Golden Triangle Days will be held in Austin. Rooms may still be available at the Driskel or Intercontinental SFA, but you had better call now because they were filling up fast. You may go to the chamber website at www.portarthurtexas.com and register online. All events will take place on Tuesday the 12th. There will be no reception on Monday night. Tuesday will begin with a breakfast, followed by legislative sessions and end with the party that evening.  If you don’t need a hotel you are required to register for the event.  Our legislative committee and transportation committee has already begin meeting to map out which issues needing our attention. Since Golden Triangle Days in Austin is a collaborative effort we will work with Beaumont and Orange chambers to find common ground. It appears TWIA and school finance will be on the agenda once again. We will also be looking at highway funding in an effort to get some of our highway projects funded.

In 2019, The Greater Port Arthur Chamber of Commerce will continue to focus on economic development through its education foundation, transportation committee and legislative committee. If you wish to be part of a Five Star accredited chamber and make a difference in your community, or make a difference in your business, call Paige Snyder at 409 963-1107 – Extension 3.

 

 

President's Blog

Aug 01, 2018

 

Every chamber is challenged with getting and keeping new members.  We are constantly asked to prove why a company should join or remain with the chamber. Of course, we can point to the networking and advertising opportunities such as lunches, breakfasts, morning mixers, on our website and in the Resource Guide. But some companies just don’t take advantage of these obvious and easy benefits.

What is most difficult is to prove the indirect benefit. For example, it is not unusual for a restaurant to tell me “The chamber hasn’t done anything for me.” What is frustrating is to have them tell me this in the middle of a restaurant filled with Valero, Motiva or Total employees. In its 118-year history this chamber has been responsible for helping locate the forbearers of these industries and keeping or expanding them here. These industries are responsible for the success of every business in Port Arthur and the only reason Port Arthur has a tax base.

Some of the, not so visible, efforts at supporting economic growth in the area are our, behind the scenes, action taken in support for the EDC, Port of Port Arthur and local industries. Several times each year our board and many of our 620 members make calls to, communicate or visit with city, county, state and federal agencies or commissions expressing our support or opposition to new regulations, grants, program funding, or laws.  

Last month I mentioned our efforts to support Valero at the Texas Commission on Environmental Quality public hearing. We arranged to fill the room with supporters for their new project in Port Arthur. Its important that the TCEQ see our area does want and support our industries.

In July we wrote letters of support to General Land Office’s Commissioner Bush for the Port Arthur Economic Development Corporation’s application for program funding for Implementation of an Economic Revitalization Program under the Community Development Block Grant – Disaster Recovery Program.

We also wrote a letter to The Honorable Elaine Chao, U.S. Department of Transportation in Washington supporting the Port of Port Arthur's: Berth 6 Expansion Project to improve our region's multimodal freight transportation capabilities. Part of the letter stated, our port is critical to our local employment, regional economy and our nation's transportation infrastructure. The on-dock rail and berth extension project produces desirable national, regional and local long-term outcomes. With increased transportation congestion and new export opportunities for Southeast Texas there is a need for added public dock capacity on the Sabine-Neches Waterway. Area business supports this project. The port is seeking a $20 million grant for a $55 million project.

On Friday, July 20, Chairman of the Board, Jeff Hayes and I attended Senator John Cornyn’s Flood Protection Round Table to discuss the 800 million dollars allocated for flood control in Texas. Our interest was the money to be spent repairing the levee that protects Port Arthur, Groves, Nederland and Port Neches. We were also excited to learn that our neighbors in Bridge City and Orange would be getting a levee. Included in the discussion were the mayors from those cities, the Corp of Engineers, local industries and the Regional Planning Commission. 

A good education system is vital to economic development. The Port Arthur Education Foundation, created and administered by the chamber, is a conduit, through which hundreds of thousands of dollars have been given to Port Arthur schools and to Lamar State College Port Arthur.

All of these, ongoing, efforts provide major benefits to our members and all citizens of Port Arthur and the Golden Triangle. While these benefits may not be as visible, they are real and benefit members and non-members alike. But without businesses that are willing to pay their fair share and invest in the chamber, these programs it would not be possible.

To make our presence known to or Texas elected state officials we will be working the other area chambers to continue our visit to Austin for Golden Triangle Days. Over the next 7 months I will include an invitation to everyone to participate in our Golden Triangle Days in Austin. This event is a great opportunity to meet and visit with state elected officials and mingle with several hundred Golden Triangle business leaders. This is a coordinated effort between the Beaumont, Orange and Port Arthur Chambers of Commerce. That event will be in Austin on February 11-12 of 2019. A block of rooms is available at the Driskel and Continental Hotels in Austin. To register for this event, you may go online at www.gtdatx.com. Of course, you may stay at other hotels but buses to and from the sessions at the capitol and to the Tuesday night celebration will leave from the Driskel. All events and sessions will be from Tuesday morning until Tuesday night. Get your reservation early.

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