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Palacios 2003 Economic Report is Positive but Guarded

The 2002 Annual report submitted to the Palacios City Council on Monday evening, February 18, 2003 shows a "lower" growth rate and the outlook for 2003 remains the same. All areas of interest indicated a lower growth rate as with all of Texas this past year. These areas included Retail with 11 new businesses opening up that employ 139 of our citizens (85 full-time and 54 part-time).  A decline in tourism due primarily to 9/11/02 accounted for a portion of the decrease in our local sales tax as fewer people traveled. Our Chamber of Commerce also had a very good year adding new members to the list. We continued to support our Junior College in Palacios and the TSTC staff. Increased marketing efforts from the corporation will assist our local campus this next year to help recruit students. Also, our airport has seen recent activity by the permanent relocation (from Ft. Lauderdale, Florida) of a commercial air cargo company (GeoAir). Palacios can expect to see 10 new families move to our city!

We continue to support our Port and Navigation District #1 for their economic development efforts and expansion plans. One of those efforts resulted in the development of Palacios Shipyard, Inc., with assistance from the Texas Department of Agriculture with a Texas Capital Fund Grant for $500,000 for infrastructure improvements. The shipyard is up and running employing over 35 full-time new positions.

Our efforts to support Matagorda County EDC and Bay City CDC are a continuing process and we have all worked together for mutual benefit this past year. We believe in a strong team effort and together, we can make Matagorda County as strong as it wants to be in Texas.

Our Director represented the corporation and/or the city in over 76 separate functions this past year. We participated in over 20 major "Projects" as well, some of which are still open.

New construction showed increases with:
1. 16 new mobile homes with a total value of $170,000.
2. 6 new commercial building permits issued for a total value of $560,000.
3. 6 new residential home permits for a total value of $560,000.
4. 93 permits issued for new construction on existing buildings (residential/commercial) for a total value of $576,000.

City sales tax had a 9% decrease from the previous year for $350,000. Hotel/Motel Occupancy Tax had a increase from $17,000 in 2001 to $17,829 in 2002.

Our Executive Director was also the recipient of a "Certificate of Completion" for the now mandatory 4a/4b Sales Tax Training Seminar on September 24, 2002.

The outlook for 2003 and beyond continues to show a steady economic growth pattern although at a slower pace than the past few years. There will be our seasonal ups and downs related to the commercial fishing industry but I think the continued growth will still prevail for Palacios in all areas of economic and community development. New development at our Port, development of our municipal airport and plans for the development by private investors of the former Camp Hulen all contribute to much needed growth for our future. Private concerns are also talking to our Port for a major hotel development with 50 units and other tourist amenities to accompany this project. Our Urban Design Plan, which was completed in May 2003, will also contribute greatly towards the development of all areas within Palacios. Our thanks go  to Texas A&M University's Department of Architecture and their Graduate Students for this challenging endeavor.

It is important to recognize that all of our Directors have been instrumental in the leadership, wisdom and vision that this corporation tries to promote. They have recognized that new changes in the very structure of our city and partnerships with LCRA (Lower Colorado River Authority) will be necessary in order to keep pace with our growth. Having gone over 5,000 in population at this last census has caused our citizens to vote in favor of establishing a "Home Rule Commission" that will change the way we conduct our local government "our" way as opposed to the "General Law A" of government currently in force since the city was incorporated many years ago.

All in all, Palacios is a great place to live, especially now with so many things happening...we invite you to be a part of it.

Mike Sherrod
Executive Director

Copyright © 1999, 2000 City of Palacios Economic Development Corporation
P.O. Box 877, Palacios, Texas 77465
[Phone: 361-972-3729]- [Fax: 361-972-5258]
E-Mail: copedc@wcnet.net

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