DATA POINTS

www.datapoints.org AUGUST 2013

Most Recent Monthly Data Current

www.capcog.org
Previous Month MoM YoY

VITAL SIGNS
The unemployment rate rose in May to 5.8 for seasonal reasons, however the Professional and Technical Services sector turned upward after several months of job losses June Single-family permits are up 2.5% yearover-year, while Multi-family permits are down sharply Sales tax receipts gained strongly Patent activity picked up somewhat in July but was flat compared to the same time last year Capital area stock performance was generally positive across the board

Unemployment Rate Employment Growth

(June) (June) (June)

5.8 -4,261 789 183

5.4 2,449 839 744

7.4% -0.5% -6.0%

-9.4% 3.2% 2.5%

Bldg. Permits Single-Family Bldg. Permits Multifamily Sales Tax Receipts Patents Awarded
(June) (July)

(May)

-75.4% -68.6% 15.9% 3.1% 6.1% 20.1%

$33,702,012 $29,086,741 233 226

CAPTEX Stock Index I

CAPTEX Stock Index II

(Aug. 1)
(Aug. 1)

278.67
181.72

273.47
170.75

1.90%

3.76%

6.42% -8.67%

Dive deeper into the data at DataPoints.org for sources, notes and other information.

IN FOCUS: Back to the Future of Economic Development Finance

While grappling with the economic challenges of our day, it can be easy to look past the extraordinary lessons that can be found in history and the tools that were used to lead the world economy where it is today. Two examples in particular demonstrate just how often we cover ground that has already been traveled. They not only offer case studies for present use, but can cut through many misperceptions about our not-so-modern tools for economic development and the people who have used them in the past.
Public Improvement Districts (PIDs) can seem like a relatively recent tool for funding revitalization and infrastructure projects, drawing on funds assessed to property owners in a particular district to fund improvements in that district. But one of the earliest to use this type of approach in America was none other than the innovative Founding Father, Benjamin Franklin. Recognizing how much more business could be brought to the shop owners along Market Street in colonial Philadelphia if their customers didnt have to walk through the muddy, unpaved road, Franklin convinced property owners along the street to contribute funds to have the street paved. Franklin next had the property owners commit six pence to hire a man to sweep away the mud and keep the street clean, and before long, the street was equipped with sidewalks and street lamps and shop owners thrived along the busy street. Surprisingly to those who know Franklin and his peers only as men who fought against taxation, Franklin later bragged that it was this project that helped him successfully establish a city-wide tax to pave all of the streets in Philadelphia.

Market Street: Benjamin Franklins Early American Public Improvement District

Source: Bryn Mawr College

The Tax Increment Financing That Reshaped Paris

Source: Thierry Bzecourt Source: Benjamin Franklins Autobiography

DATA POINTS
www.datapoints.org AUGUST 2013 www.capcog.org

IN FOCUS: Back to the Future of Economic Development Finance (continued)

Between 1853 and 1870, Paris experienced one of the most dramatic physical and economic transformations of any city in history. Led by Baron Haussmann, the narrow and crooked streets of Medieval Paris that held raw sewage and crumbling buildings were replaced with the wide boulevards and elegant apartment buildings that define Paris today. Constructed beneath the boulevards was the most modern infrastructure of the day. To complete this massive undertaking without bankrupting the nation, Haussmann relied on a method that is very near to what would be considered Tax Increment Financing today. After developing a long-term plan for the redesign of the city, Haussmann strategically acquired property in key locations within the city. Focusing on just a few blocks at a time, existing structures were cleared, water, gas and sewer lines were put in place, and a section of boulevard was constructed. After these improvements were made, the land would then be sold to developers to build the buildings. To ensure that the buildings were designed and maintained in a way that accomplished the long-term vision for the city, regulations were applied that ensured that the new buildings met a number of design standards (an early version of Form-Based Zoning) and building owners were required to clean and refresh the faade every decade. With the high premium paid by developers to build along the citys newest section of boulevard, the government was able to fund improvements to the next few blocks that would be acquired and so on until the boulevard was complete. These examples not only provide a look at how modern economic development tools have roots that stretch well into history, they offer guidance for how to overcome future economic development challenges. When taking on a new economic development project, a good place to start is to see if and when it has been done before.
To learn more about Tax Increment Financing or TIFs, visit http://www.capcog.org/documents/newsletters/CAPCOGConnectionsFinal_Aug2013.pdf

SPOTLIGHT ON: Fayette County

Each month, Data Points will highlight economic development in one of the capital areas 10 counties.

The Productive Value of Fayette County

Earnings (2011) $558,634,733

Almost perfectly centered between Austin, San Antonio and Houston, the rural landscape of Fayette County can lead one to lose site of the enormous economic engines that surround it. The economy of Fayette County is still very much driven by agriculture, although its geographic location, rail access and the presence of I-10 along the southern portion of the county, have allowed it to support a manufacturing industry that contributes nearly $66 million in productive value. The county has experienced steady growth that is projected to continue well into the future. Of particular interest to the future of the countys economy is its position atop the Eagle Ford Shale. Nearly as much of the countys economy is driven by the Oil & Gas sector as it is by Agriculture, and if any portion of the shale boom finds its way to the CAPCOG region, it is likely to pass through Fayette County.

Property Income Taxes on Total GRP (2011) (2011) Production (2011) $338,486,985 $88,596,953 $985,718,671
GRP (2011) $119,559,939 $105,721,926 $107,283,665 $75,906,471 $64,970,979 $65,944,229 $65,127,385 $65,892,155 $58,957,509 $46,665,002 $51,038,805 $26,903,465 $30,245,411 $25,844,881 $18,618,755 $22,470,322 % of Total 12% 11% 11% 8% 7% 7% 7% 7% 6% 5% 5% 3% 3% 3% 2% 2%
SOURCE: EMSI

Industry Agriculture, Forestry, and Hunting Mining and Oil and Gas Extraction Government Finance and Insurance Utilities Manufacturing Retail Trade Other non-industries Wholesale Trade Real Estate and Rental and Leasing Health Care and Social Assistance Construction Transportation and Warehousing Accommodation and Food Services Information Professional, Scientific, and Technical

ABOUT CAPCOG ECONOMIC DEVELOPMENT

CAPCOGs Economic Development Program works closely with cities, counties, chambers of commerce and economic development corporations of the Texas capital area, providing education, training and expert assistance. Services include providing in-depth economic analysis, managing special projects related to regional planning and economic strategy and helping communities devise new strategies for improved competitiveness. To discuss specific projects or available services, contact Program Manager Michael Hennig at mhennig@capcog.org.