2016 Opportunity Austin Annual Report

2016

ANNUAL REPORT

OPPORTUNITY AUSTIN

Economy Business Retention & Expansion | 5 Relocations | 6 Expansions & Relocations | 8 Innovation | 10

Talent Education | 13

Place Transportation & Infrastructure | 17 Transportation Bond | 17 Energy | 18 Air Services | 18

OA 3.0 Financials | 21 Mid-Course Assessment | 22 Regional Partners | 24 OA 3.0 Board | 27 OA 3.0 Investors | 28

Message to Investors To our Opportunity Austin Investors, We are pleased to report another strong year of economic growth and development in 2016. Performance of the Austin area is especially encouraging as we approach completion of our five-year plan focused on three strategic areas. They include growing our economy, increasing our talent and improving our infrastructure to ensure Austin remains a great place to work, live and play for everyone in our region.

For more information on overall progress, please see the Opportunity Austin 3.0 midcourse highlights in this Annual Report.

In the area of attracting and retaining companies, the Austin region turned in one of its strongest performances on record. The combined number of relocations and expansions in 2016 was the highest ever tracked: • 81 local businesses announced they were expanding workforces, 13 percent higher than the previous mark set in 2004. This translated into the creation of more than 5,300 new jobs.

• 50 companies new to the Austin region announced they were opening operations.

This total ties the third strongest year (2013) and is expected to create 4,800 new jobs.

While attracting additional venture capital funding continues to be challenging, the region experienced 112 deals and about $834 million in funding – the most in Texas. The largest number of deals and dollars invested were in the Internet sector. In addition, Austin was ranked No. 1 in the annual index of the top performing metropolitan areas in America for entrepreneurial activity by the Kauffman Foundation.

Progress continued in the areas of talent and education.

Our volunteers worked with about 16,000 high school students and their parents across the region to complete college financial aid forms (FAFSA), which generated over $130 million in financial aid for our students.

More progress was made on expanding air travel options for the Austin region. New nonstop service was announced to Frankfurt, Germany, and Guadalajara and Mexico City, Mexico. There are now 60 non-stop destinations via ABIA, up from 51 the previous year.

continue working to ensure our region’s success. This includes advocating for critical transportation projects in Austin and throughout the area as well as addressing mounting affordability concerns. In a recent survey sponsored by the Austin Chamber, 82 percent of Austin registered voters said the city has an affordability issue.

One of the most significant accomplishments in 2016 came from advocacy efforts to help pass a historic transportation bond package for the City of Austin. With financial support from Opportunity Austin investors, we worked together with the mayor, business, active transit and bicycle advocacy groups to raise $1 million to promote and ensure the largest single transportation bond in Austin’s history would be approved by voters overwhelmingly.

In addition, while the latest available data reveal adult and child poverty rates – key OA success metrics – declining in the Austin MSA over the past five years, there is more to be done, including additional funding and programs for workforce training, especially for those in need.

While approval of the mobility bond package was one of several major accomplishments, the need for our community to stay focused and fight complacency with respect to economic development has likely never been greater. We have one of the strongest economies in the country, but there are no guarantees it will stay that way, so we must remain vigilant and

Lastly, the Greater Austin Economic Development Corporation board approved efforts in 2016 to consider and fund the next phase of Opportunity Austin, currently labeled OA 4.0. We expect to continue evaluating the fundamental needs of our community to position the business community to do all possible to ensure a prosperous regional economy in Central Texas for years to come.

Thank you for your continued support of Opportunity Austin.

PHIL WILSON

TONY BUDET

2016 Opportunity Austin Chair

2016 Austin Chamber Chair

ECONOMY

5

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

2016 Scorecard for Relocations, BR&E 2016 RESULTS

2014-2016

OA 3.0 GOALS

New Jobs

32,200

111,500

102,663

Payroll Increase

$1.86 billion

$6.43 billion

$7.08 billion

Corporate Relocation Announcements

50

167

150

Out of Region Visits

293

836

800

Prospect Visits to Central Texas

125

377

250

Regional Retention Surveys

446

1,088

1,500

Poverty Rates Declined Throughout Region The most recent data available through 2015 show the estimated total poverty and child poverty rates declining throughout the Austin MSA, Travis County and City of Austin. More diligence is needed to remained focus on this important metric.

Total Poverty Rate

Childhood Poverty Rate

Source: U.S. Census Bureau, American Community Survey

Source: U.S. Census Bureau, American Community Survey

30%

30%

25%

25%

20%

20%

15%

15%

10%

10%

5%

5%

0%

0% 2011

2012

CITY OF AUSTIN

2013

2014

TRAVIS COUNTY

2015

2011

AUSTIN MSA

2012

2013

2014

2015

6

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

R ELOCATIONS EMPLOYMENT

COMPANY

EMPLOYEE COMPENSATION (MILLIONS)

TOTAL ECONOMIC IMPACT (MILLIONS)

Direct

Indirect/ Induced

Total

Direct

Indirect/ Induced

Total

Abel Design Group

20

30

50

$1.84

$1.29

$3.12

$4.37

Aliya Financial *

15

23

38

0.51

1.09

1.60

2.80

Alpine Consulting *

35

56

91

3.79

2.39

6.19

9.75

500

620

1,120

54.18

26.56

80.74

101.40

20

36

56

2.51

1.71

4.22

8.44

100

59

159

4.52

2.44

6.96

12.48

50

32

82

1.21

1.30

2.51

8.06

300

191

491

7.23

7.82

15.05

48.33

Blueshift *

25

93

118

2.14

4.41

6.55

18.54

CipherLoc

40

71

111

5.02

3.42

8.45

16.87

100

245

345

11.98

11.13

23.11

35.17

Comprehensive Healthcare Management

50

30

80

2.26

1.22

3.48

6.24

Condé Nast *

50

215

265

4.29

10.12

14.41

24.41

Creative Alignments

20

9

29

0.82

0.36

1.18

1.89

Credit Risk Management Analytics *

40

71

111

5.02

3.42

8.45

16.87

Dominion Payroll Services

10

6

16

0.45

0.24

0.70

1.25

Duo Security

30

53

83

3.77

2.57

6.34

12.66

Eseye

12

15

27

1.30

0.64

1.94

2.43

Express Scripts *

100

178

278

12.56

8.56

21.12

42.19

Facebook

500

2,154

2,654

42.89

101.18

144.07

244.06

Flint Hills Resources

12

18

30

1.16

0.78

1.94

4.13

GE Aviation

50

62

112

5.42

2.66

8.07

10.14

HeartFlow *

125

222

347

15.70

10.70

26.40

52.73

20

36

56

2.51

1.71

4.22

8.44

Home Depot Technology Center *

600

1,468

2,068

71.90

66.75

138.65

210.99

Hyperwallet Systems

100

178

278

12.56

8.56

21.12

42.19

20

40

60

3.79

1.85

5.63

9.89

Amazon * Automic Software Baker Tilly * Best Buy Blue Apron *

ClearDATA *

Hello Soda

InnowaveRF *

7

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

EMPLOYMENT

COMPANY

EMPLOYEE COMPENSATION (MILLIONS)

TOTAL ECONOMIC IMPACT (MILLIONS)

Direct

Indirect/ Induced

Total

Direct

Indirect/ Induced

Total

40

45

85

2.20

2.04

4.24

7.64

Kuka Robotics *

200

435

635

19.60

19.04

38.65

66.34

Ledcor Technical Services

100

66

166

3.72

2.94

6.65

14.17

80

142

222

10.05

6.85

16.90

33.75

250

374

624

24.27

16.21

40.48

86.06

Logical Position

50

73

123

2.76

2.78

5.54

13.06

Magic Leap *

60

74

134

6.50

3.19

9.69

12.17

Namely *

30

53

83

3.77

2.57

6.34

12.66

Noren Products

40

46

86

1.73

2.35

4.08

8.23

Outdoor Voices *

20

30

50

1.94

1.30

3.24

6.88

Performance Services *

70

103

173

6.43

4.50

10.93

15.31

Promimic U.S. *

10

15

25

0.97

0.65

1.62

3.44

Ride Fare

30

15

45

1.03

0.66

1.69

2.99

Rocket Software

35

62

97

4.40

3.00

7.39

14.77

Seed Sumo

10

10

20

0.60

0.40

1.00

1.52

Shopgate *

75

133

208

9.42

6.42

15.84

31.64

SolarCity *

120

79

199

4.46

3.52

7.98

17.01

SpeachMe

10

18

28

1.26

0.86

2.11

4.22

500

1,651

2,151

47.96

79.45

127.41

249.34

ThousandEyes

30

53

83

3.77

2.57

6.34

12.66

Twitch *

10

18

28

1.26

0.86

2.11

4.22

100

245

345

11.98

11.13

23.11

35.17

4,814

9,948

14,762

$451.41 $458.15 $909.56

$1,609.95

KOMPAN Playground Solutions *

Lightspeed Systems * LKQ *

Superior HealthPlan *

USAA TOTAL

* Projects directly assisted by Austin Chamber Note: One company is not reflected in the chart above as they were not known to have created at least 10 jobs. The company is reflected in 2016’s total relocations because they took more than 10,000 square feet.

8

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

EX PA NSIONS & RE L O CATI O NS 81 Companies expanded in the region OA 2.0

81 69 62 52

54

55

55

2010

2011

2012

2013

35

OA 3.0

2009

2014

2015

5,353 Direct New Jobs were added to the region

2016

5,353 4,470 3,955 3,520

OA 2.0 OA 3.0

3,072 2,115

2009

2,568

2,307

2010

2011

2012

2013

2014

2015

2016

9

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

50 Companies relocated to the region

64 53

50

OA 2.0

34 29

OA 3.0

50

31

17

2009

2010

2011

4,814 Direct New Jobs were brought to the region

2012

2013

2014

2015

2016

8,380 7,047

5,131

OA 2.0

5,098

4,814

3,779 3,128

OA 3.0

547 2009

2010

2011

2012

2013

2014

2015

2016

10

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

IN NOVATION 2016 A-List Winners EMERGING

GROWTH

Received less than $1M in funding or revenue under $1M

Received funding between $1M-$10M or revenue of $1M-$20M

EMBARK VETERINARY

IDEALSPOT

ESO SOLUTIONS

Leverages the newest DNA, tech, and biotech technologies to provide owners and veterinarians individualized pet care products and services.

A commercial real estate application that matches tenants to their ideal locations and building owners and managers to their ideal tenants by applying machinelearning, predictive algorithms to real-time market data.

Builds software that helps healthcare and public safety professionals improve community health through the power of data.

FACTOM Brings honesty and transparency to data systems using the block chain. With their tools, you can publish a mathematical proof for any event or record.

RE:3D Gigabot, re:3D’s flagship technology, enables industrial strength, large format 3D printing at an affordable price point.

FIREFLY SPACE SYSTEMS A satellite launch company that provides low-cost, high performance space launch capability for the underserved small satellite market, where secondary payload launches are often the only option.

NSS LABS A world leading security product testing laboratory, offering in-depth security product test reports, research, and analyst services.

OJO LABS A world class team of engineers, data scientists, product gurus, and proven entrepreneurs who are building an artificial intelligence technology that replicates, adapts, and scales human conversations.

11

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

SCALE Received funding above $10M or revenue of $20M+

THE ZEBRA

CIVITAS LEARNING

A car insurance comparison marketplace and digital agency.

With just a zip code and car model, drivers can shop quotes in real time from over 200 insurance companies, learn about coverage options, and secure policies.

Provides a scalable analytics infrastructure for colleges and universities to transform disconnected data into actionable insights that help every student succeed.

MODERNIZE

TRENDKITE Helps PR professionals build a timely, highly accurate picture of their brands’ media coverage with ease.

Connects homeowners with the best pros specializing in four areas of exterior home improvements: solar panel installations, roofing repair and installation, window replacement and HVAC solutions.

Funding Activity

Dollars

Deals

$1,092.0M $756.7M

$858.7M

$834.0M

$606.2M

98

124

129

121

112

2012

2013

2014

2015

2016

TA L E N T

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

13

ED UCATION DTC70 Partnership Highlights National Recognition The Austin Chamber and its partners are working to achieve our goal of a regional 70 percent direct to college enrollment rate. The partnership has been recognized by the White House, ACCE, and NLC as a best practice or strong regional model in 2015 and 2016.

Improvement in Student Financial Aid Awards, Research Shows

Summer Melt Program Expands Support to 10,000 Graduates

Over the last two years, national researchers from leading universities partnered with the Austin Chamber and eight local school districts to conduct a study on the effectiveness of text messaging campaigns on FAFSA filings. They recently released a study finding that when Texas students were reminded by text message to complete key college financial aid completion steps, they filed their FAFSA earlier and received up to $2000 in additional aid.

To remove college enrollment barriers, last summer DTC70 partners in nine school districts supported 10,000 high school graduates. The collaboration provided ground-breaking, realtime data on student completion status of key Austin Community College enrollment milestones to school district counselors, to more effectively target assistance.

Counselors also supported students heading to other in/ out of state colleges. Harvard University and UT-Austin Ray Marshall Center evaluations demonstrated DTC70 partners improved direct college enrollment rates for first generation, low income and underrepresented students who received summer college transition support by four to ten percentage points.

14

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

DTC70 ISD Partners Led State on FAFSA filings Record Class of 2016 FAFSA filing rate.

80 percent of high school seniors who submit their FAFSA directly enroll in college. For over a decade, the Austin Chamber has worked with districts, businesses and over 150 volunteers to assist families in the FAFSA completion process through its Financial Aid Saturdays Program. This past spring, DTC70 partner districts achieved a 50 percent Q1 FAFSA filing rate for the Class of 2016 and topped the state in first-time FAFSA filings for this period.

Our volunteers worked with 16,000 high school students and their parents to complete the FAFSA which resulted in over $130 million in financial aid through the Financial Aid Saturdays program.

College In Sight The Chamber helped to create CollegeinSight.com in 2016 to make it even easier for students and families to pay for college, especially with new advance filing deadlines.

FINANCIAL AID IS CLOSER THAN YOU THINK

15

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Q1 First-Time FAFSA Filings 11,277

11,504

2011

2012

12,319 11,123

11,507

11,204

2014

2015

10,361 8,604 6,713 5,579

5,662

2006

2007

2008

2009

2010

2013

2016

Financial Impact of FAFSA Filings Based on Average Aid Award $133M $121.8M

$124.2M

2011

2012

$120.1M

$124.3M

$121M

$111.9M

$77.4M $60.4M $50.2M

$51M

2006

2007

2008

2009

2010

2013

2014

2015

2016

Source: U.S. Department of Education

PLACE

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

T R A N SPORTATI O N & IN FR ASTRUCTU RE Transportation Bond Package Austin voters approved largest bond package in history of Austin The Chamber, with financial support from Opportunity Austin investors, worked together with the Mayor, business, active transit and bicycle advocacy groups to raise $1 million to ensure the largest single transportation bond in Austin’s history passed overwhelmingly.

This has already leveraged an additional quarter billion dollars from TXDOT for Highway 360.

Austin Voters approved the $720 million roads-focused mobility bond package in November 2016 with 59.1% of the vote (passed by about 20 points) in favor of moving Austin forward.

The important bond package was four times larger than any transportation bond previously approved in the City of Austin.

The bond plan includes spending in three separate buckets: $101 million for suburban highway and road projects; $482 million for investments along identified and to-be-determined

corridors; and $137 million for local streets, pedestrian and bicycling infrastructure, and safety programs.

Since Opportunity Austin began, our transportation advocacy efforts, along with others, have now resulted in more than $7 billion in funded road infrastructure projects either completed, under construction, or will begin construction soon.

17

18

Austin Energy Rate Settlement We advocated on behalf of members to propose new energy rates to help the business community and consumers. This led to the Austin Energy rate case settlement, approved by Austin City Council, which cut base electric rates paid by almost all customers, including large and small businesses, starting on January 1, 2017. Through a yearlong process, the city-owned utility worked with two-dozen parties to reduce Austin Energy’s revenue by a total of $42.5 million. Included in that was a reduction in commercial rates by about $37.5 million.

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Air Services Through our Air Services Task Force, we continue work throughout the year to further expand international non-stop flight options for Austin, such as Frankfurt, Germany; and Guadalajara and Mexico City, Mexico.

AUS continues to enjoy a healthy mix of air service offerings. There are 60 nonstop destinations, up from 51 last year, including seasonal and announced services.

British Airways added a first class option to London-Heathrow with the Boeing 787-9 aircraft, and the flight performance continues to exceed expectations.

19

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Austin is the Best Place for Small Business in the U.S. American City Business Journals

Austin is No. 1 on Kauffman Index of Startup Activity.

Kauffman Foundation

Austin tops “America’s Cities of the Future” ranking of cities most likely to prosper over the next decade.

Forbes

OA 3.0

21

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

FINA NC IAL S PROGRAM EXPENSES TO DATE (2014-2016) $10,947,277 TOTAL

5 YEAR PLAN $20,000,000 TOTAL

ECONOMY (Recruiting, Business Retention & Expansion, Technology)

$5,554,649

$9,706,929

TALENT (Education/Talent Attraction)

$3,470,680

$922,477

PLACE (Advocacy, Mobility, Infrastructure)

$2,517,053

$639,545

INVESTOR RELATIONS $1,066,429

$359,926

OPPORTUNITY FUND $550,000

$6,159,590

22

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

MID - COURSE A S S E S S M E NT

Opportunity Austin 3.0 In September of 2016, Market Street Services provided a detailed assessment of programming for the purpose of reviewing progress and recommending adjustments since the start of Opportunity Austin 3.0 in 2014.

For this effort, quantitative data was married with qualitative input from top Chamber leaders and staff and representative from public and private partner entities. These included 15 interviews, two focus groups, and an online survey of OA investors and partners that garnered nearly 100 responses.

Key Assessment findings Overall rankings show that Greater Austin has maintained its position as one of the nation’s top performing metropolitan areas. Across six key areas that measure greater Austin’s economic entrepreneurship, business climate, quality of place, and overall performance, the Austin region finished at or near the top of the rankings.

Greater Austin’s private sector employment growth outpaced all of its peers over a one- and fiveyear period. From 2010 to 2015 the region added approximately 170,000 private sector jobs – a gain of 25.5%. Only San Jose (20.5%) saw five-year job growth above 20 percent. Likewise, year-over-year job growth in greater Austin (3.7%) outpaced all of its peer metros – only Raleigh (3.2%) and San Jose (3.1%) experienced year-over-year growth above three percent.

Opportunity Austin’s six target sectors have experienced considerable growth over the last five years. Compared to its peer metros, greater Austin ranked first in employment growth in all but three sectors: advanced manufacturing, creative and digital media, and corporate and regional headquarters. Overall, employment in Opportunity Austin’s target sectors grew by 33.4% – adding nearly 33,000 jobs to the regional economy since 2010.

Greater Austin is making strides in its efforts to slow the rise of poverty. While the region’s total and youth poverty rates still rank among the top third of comparison geographies, poverty in both categories rose at slower rates than all but two competitor metros in the previous five-year period.

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

23

Transportation is a key competitive concern for the greater Austin region. Public input participants frequently cited greater Austin’s growing congestion as undermining business competitiveness and diminishing the region’s quality of life. Various data measuring congestion and commute time substantiate stakeholder concern.

As was highlighted by stakeholders during public input, addressing greater Austin’s transportation challenges will require public and private consensus around both short- and long-term solutions.

Entrepreneurship is thriving in the greater Austin region. Whether it is academic spending on research and development or the percentage of greater Austin area workers who were self-employed, the regional innovation and entrepreneurship ecosystem ranked favorably against many of its peer metros. As new startups continue to fuel growth, Opportunity Austin has the potential to elevate its visibility and continue to expand its ecosystem through investments in South by Southwest Interactive, Innovate Austin, and Austin A-initiatives.

Greater Austin’s population growth over the last five years is the fastest among its competitor metros.

Over a five-year period (2010-2015), the greater Austin region added roughly 270,000 new residents.

Domestic and international migration continues to be a driving force propelling growth in greater Austin. From 2010 to 2015, the region attracted nearly 200,000 net domestic and international migrants.

Opportunity Austin, the Austin Chamber, and the regional business community face a challenging political landscape in the City of Austin. While many feel that the shift demands the business community’s voice grow louder, others feel outreach and advocacy efforts must be more nuanced, inclusive and acknowledge that there is a “new day” for economic development within the city of Austin.

Despite greater Austin’s ability to attract and retain talent, workforce shortages in particular skills sets are a persistent challenge. While the Austin Chamber’s partnership with the education community is cited as a model to follow, stakeholders noted that the Chamber’s approach to workforce development may be due for adjustment.

24

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

R EGIONAL PAR TNE RS 2016 Highlights Austin • Austin-based Indeed plans to hire 1,000 additional employees.

Indeed moved into a new building in Northwest Austin, as well additional space Downtown.

• Another half dozen employers announce new or expanded operations each creating 500 or more jobs including Amazon, Apple, Facebook, Home Depot and Superior HealthPlan.

• Samsung Semiconductor announces plans to invest another $1 billion in its Austin manufacturing facilities and add hundreds of new jobs.

Buda • Deep Eddy closes on a 197,000 square foot manufacturing facility in Buda.

• Chip Semiconductor constructs a new 45,000 square foot facility in Buda.

• Speed Tech Lights expands with an additional 25,000 square feet.

• Two Wheel Brewing Company moves into 10,000 square feet.

Cedar Park • TIG Real Estate completes two spec buildings (25,000 & 30,000 square feet) in Scottsdale Crossing.

• Comprehensive Healthcare Management relocates their headquarters creating 50 jobs.

• Industrial Group Southwest breaks ground on 230,000 square feet of spec office/ logistics/manufacturing space.

Bastrop • Single-family housing permits hit five-year high in the Greater Bastrop area.

• AEI Technology to relocate medical device headquarters and assembly operations to Bastrop Business Industrial Park.

• Bastrop EDC acquires a downtown Bastrop property to develop as mixeduse retail/office infill.

• Hunter’s Crossing announces new 182-unit multifamily development.

Elgin • Elgin City Council approves the construction of a new five lane boulevard to open up an area along highway 290 for retail, residential and business development.

• ATX Jerky locates to Elgin creating 7 new jobs.

• A new job grants program to assist new and existing businesses.

25

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Georgetown

Hutto

Jarrell

• Opens its first EB-5 project, the Sheraton Georgetown Hotel & Conference Center.

• H-E-B anchors masterplanned retail development completed in just 7 months.

• Sun Fresh Markets breaks ground on 28,000 Sq. ft. grocery store in Jarrell Town Center.

• Georgetown is ranked the fastest-growing city in 2016 with a population of 50,000+.

• A 150% increase in site visits last year confirms new development is coming our way.

• Tractor Supply to open in late 2017 in Jarrell Town Center.

• Rentsch Brewery, Georgetown’s first micro-brewery, expands in 2016 to increase production by 10-fold and to add canning.

• Ranks #2 Safest City in Texas.

Kyle • High tech manufacturer, RSI Inc., announces expansion bringing 82 more jobs to the city.

• Kyle annexes 7,000 acres in the Summer of 2016, increasing the city limits by 50%.

• Austin Community College Hays Campus in Kyle announces $22.4 million expansion that includes a first responders training center.

• City Council makes economic development the #1 priority.

Leander • Austin Community College breaks ground on 100-acre Transit Oriented District (TOD) campus; Classes begin fall 2018.

• St. David’s Hospital commits to build a 51-acre health service campus in the TOD. • The city initiates small business grant program for Old Town development with three grants awarded.

• Major infrastructure improvements: new interstate overpass at Bud Stockton Loop, increased water storage capacity and added ground storage water capacity.

Lockhart • Lockhart attracts 3 industrial projects adding over 100 jobs.

• SH-130/FM-142 west of Lockhart historic district attracts over $30 million of new capital investment including healthcare, logistics and new housing projects.

• The “BBQ Capital of Texas” continues to attract over 1 million tourists annually.

26

Pflugerville • EOS, an industrial 3D manufacturing company, locates their North American headquarters to Pflugerville creating 75 jobs.

• Medway Plastics locates their southwest manufacturing plant and R&D lab to Pflugerville.

• Living Spaces to construct a 650,000 square foot fulfillment center creating 100 jobs.

Taylor • Noren Products relocates from CA and constructing a 35,000 square foot headquarters providing 75 new jobs.

• Summit Manufacturing to construct a 44,000 square foot facility providing 75 new jobs.

• Texas Beer Company opens a brew pub in downtown and to construct a manufacturing facility with national distribution.

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Round Rock

San Marcos

• New $350 million Kalahari Resort to provide 975 hotel rooms and 150,000 square foot convention center.

• Amazon opens new 855,000-square-foot fulfillment center creating over 1,000 new jobs.

• UPS to invest $70 million to construct a new distribution center in Round Rock.

• Best Buy opens its first and only Texas E-Commerce Sales Operation Center in San Marcos.

• Insys Therapeutics completes third expansion with additional 30,000 square foot building and $20 million investment in new equipment.

• Forbes hails Austin-San Antonio MSAs as America’s Next Great Metropolis centered on San Marcos region.

West Lake Hills, Rollingwood & West Travis County • Two Class A office buildings under construction at Overlook at Barton Creek and at Walsh Tarlton Overlook, and 189 townhomes under construction at The Walsh.

• Eanes ISD and all 9 schools recieve top rankings by research site Niche, including Westlake H.S. named 4th best high school in Texas. Eanes ISD was 2nd in the nation, No. 1 in the state.

27

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

2 016 B OARD Chairman Phil Wilson General Manager Lower Colorado River Authority (LCRA)

Vice Chairman Kerry Hall President – Austin Region Texas Capital Bank

Treasurer

Terms Expiring December 31, 2016

Terms Expiring December 31, 2017

Terms Expiring December 31, 2018

Paul Bury

Mark Curry Community Bank President Wells Fargo

Tim Crowley Regional President – Austin Region Frost

Casey Dobson Partner Scott, Douglass & McConnico

Matthew Dow Partner Jackson Walker LLP

Gary Farmer President Heritage Title Company Rob Golding Principal Boyd Creek Capital

Donnie Williams President/Austin Area Sovereign Bank

Kerry Hall President – Austin Region Texas Capital Bank

General Counsel/ Assistant Secretary

David Huffstutler President/CEO St. David’s HealthCare

Matthew Dow Partner Jackson Walker LLP

President/Secretary Mike Rollins President Greater Austin Chamber of Commerce

Austin Chamber Chairman Tony Budet President/CEO University Federal Credit Union

Chamber Immediate Past Chair Gene Austin CEO Bazaarvoice

Bart Matheney Principal AQUILA Commercial Donnie Williams President/Austin Area Sovereign Bank Howard Yancy President Zydeco Development

Adam Hauser President & CEO Meals on Wheels & More

Greg Fenves President The University of Texas at Austin

Jim Jarrett Vice President Operations Texas Gas Service

Laura Gottesman Owner Gottesman Residential Real Estate

Chuck Lipscomb Vice President – Business Development Director JE Dunn Construction

Tim Hendricks Senior Vice President Cousins Properties LP

Elysia Ragusa International Director Jones Lang LaSalle

Joe Holt Chairman, Austin Region JPMorgan Chase Bank

Don Reese Principal/President Riverside Resources

Chad Marsh Managing Principal Endeavor Real Estate Group

Richard Ridings Vice President HNTB Corporation

Rick Whiteley Executive Director Cushman & Wakefield

Pete Winstead Shareholder Winstead PC Director Emeritus Pike Powers

28

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

I NVESTORS Lead Investors $100,000 and up ($20,000 minimum/year)

3M

Cushman & Wakefield

AQUILA Commercial, LLC

Cypress Real Estate Advisors, Inc.

Armbrust & Brown, PLLC

D.R. Horton – Austin

Austin American-Statesman

Data Foundry

Austin Board of Realtors

Delaware North Companies

Austin Commercial, LP

Dimensional Fund Advisors, LP

Austin Community College District

DivcoWest Services LLC

Avison Young

Downtown Austin Alliance

Baker Botts, LLP

DPR Construction

Bank of America

Dynamic Systems, Inc.

BBVA Compass

Edgenuity

The Beck Group

Endeavor Real Estate Group

Benchmark Development & Momark Development

Forestar Group, Inc.

Brandywine Realty Trust

Friends of Austin Opera

Brookfield Residential

Frost

Capital Metropolitan Transportation Authority

Garza EMC

CapRidge Partners, LLC

Goveia Commercial Real Estate

CBRE, Inc. & Trammell Crow Company

Graves, Dougherty, Hearon & Moody, PC

Central Texas Regional Mobility Authority

Greenberg Traurig, LLP

Cielo Property Group

Hanger, Inc.

Cintra US

H-E-B Austin Regional Office

Circuit of the Americas

Hensel Phelps Construction Company

City of Austin / Austin Energy

Heritage Title Company of Austin

CleanScapes, LP

HFF

Clinical Pathology Laboratories, Inc.

Hill & Wilkinson Construction Group

Cousins Properties LP

HNTB Corporation

29

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

HPI Real Estate Services and Investments

Samsung Austin Semiconductor

Husch Blackwell, LLP

Scott, Douglass & McConnico, LLP

IBC Bank

Seton Healthcare Family

Independence Title

Silverback Enterprise Group

Jackson Walker, LLP

Simon Property Group

JE Dunn Construction

Sovereign Bank

JMI Realty

SpawGlass Contractors, Inc.

JPMorgan Chase

Spear Street Capital

Kuper Sotheby’s International Realty

Spire Realty Group, LP

Lincoln Property Company

St. David’s HealthCare

Live Oak – Gottesman

Stantec

Locke Lord, LLP

Stratus Properties

Lower Colorado River Authority

Stream Realty Partners – Austin, LP

Maxwell Locke & Ritter LLP / ML&R Wealth Management

Tenura Holdings, Inc.

MET Center / Zydeco Development Milestone Community Builders, LLC & Topfer Family Foundation Newmark Grubb Knight Frank Norton Rose Fulbright NXP Semiconductors Professional Janitorial Service Randolph-Brooks Federal Credit Union (RBFCU) RANGER Excavating, LP Real Estate Council of Austin, Inc. Riverside Resources

Texas Gas Service Texas Mutual Insurance Company Texas State University TIER REIT, Inc. United Heritage Credit Union University Federal Credit Union The University of Texas at Austin Wells Fargo White Construction Company Winstead PC WP Glimcher

30

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Advanced Investors $50,000 to $99,999 ($10,000 minimum/year)

ABC Home & Commercial Services

Howdy Honda

American Bank, NA

Hutto Economic Development Corporation

American Campus Communities

Intertech Flooring

AT&T

JLL

Austin Regional Clinic

Kinnser Software

Bartlett Cocke General Contractors

LegalZoom

Bastrop Economic Development Corporation

Luminex Corporation

Bazaarvoice

Metcalfe Wolff Stuart & Williams, LLP

Berkadia Commercial Mortgage LLC

Moore & Associates, Inc.

Capital One Bank

Munday Enterprises

Capitol Anesthesiology Association

nFusion

Catellus Development Corporation

Pflugerville Community Development Corporation

Cenpatico

PlainsCapital Bank

Charter Communications

Regions Bank

Cirrus Logic

Round Rock Chamber

City of Georgetown- Economic Development Department

Schlosser Development Corporation

Comerica Bank Cypress Semiconductor Deloitte, LLP DLA Piper, LLP (US) First State Bank Central Texas Gemalto Greater San Marcos Partnership GSC Architects HDR Engineering, Inc. HID Global Hilton Austin

Slack & Davis, LLP STG Design, Inc. Swinerton Builders Taylor Economic Development Corporation Terracon Consultants Texas Capital Bank Tokyo Electron US Holdings TRANSWESTERN Vinson & Elkins LLP Workplace Resource Wortham Insurance & Risk Management Zapalac/Reed Construction Company, L.P.

31

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Investors Up to $49,000 ($9,999 maximum/year)

360 Electrical Contractors, Inc.

Bay & Associates, Inc.

9Gauge Partners, LLC

BB&T

A+ Federal Credit Union

Mr. Rudy Belton/Belco Equities, Inc.

Active Power

Benchmark Bank

ADP

Bergelectric Corporation

Airco Mechanical, Ltd.

Berkshire Realty Holdings, LP

Amelia Bullock Realtors, Inc.

Biggs Plumbing and Mechanical Inc.

American Bank of Commerce

Blazier, Christensen, Browder & Virr, P.C.

American Constructors, Inc.

Bonner Carrington LLC

AmeriFirst Insurance Agency, LLC

Borgelt Law

Ameripro Funding, Inc.

The Brandt Companies, LLC

Amplify Federal Credit Union

Bridgepoint Consulting, LLC

anthonyBarnum Public Relations, LLC

Broaddus & Associates

Applied Materials, Inc.

Broadway Bank

Approved By Jake

Buda Economic Development Corporation

ARA, A Newmark Company

Buena Vista Foundation

Ardent Residential

Buffington Homes

Asuragen, Inc.

BuildASign

Austin Business Journal

Burks Digital Reprographics

Austin Convention & Visitors Bureau, Inc.

The Burt Group

Austin Hotel & Lodging Association

CalAtlantic Homes

Austin Ventures

CAM-I

Baker Drywall Austin

Capform, Inc.

Balcones Resources

Capital Pumping, LP

Ball Peoples

Capitol Chevrolet

BancVue

Cappello Capital Corporation

Bank SNB

Cardno Haynes Whaley

Barshop & Oles Company

Carollo Engineers, Inc.

32

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Carr, Riggs & Ingram, LLC

Elizabeth Christian Public Relations, LLC

Catapult Systems, LLC

Ellis & Salazar Garage and Body Shop

Cedar Park Economic Development Corporation

Emerson Process Management

Central National Bank

Enoch Kever, PLLC

Christianson Air Conditioning & Plumbing, LLC

Equitable Commercial Realty (ECR)

City of Kyle

Ernst & Young, LLP

City of Leander

ETS-Lindgren

CLS Partners

Farmers Insurance Group of Companies

Coleman & Associates

First United Bank

Community Impact Newspaper

Flieller, Kruger, Skelton & Plyler, PLLC

Concordia University Texas

Flynn Construction, Inc.

Cathy Coneway, Stanberry & Associates

Focus Strategies Investment Banking

Mr. Jimbo Cotton

Four Seasons Hotel Austin

CTA Architects & Engineers

FourT Realty

Customer Research International

Fox Service Company

CWS Apartment Homes

Mr. Jerry M. Frey

CWS Corporate Housing

Frost Insurance

Danze & Davis Architects, Inc.

Gensler

David Petrick Company, Inc.

Glass & Company, Certified Public Accountants, PC

David Weekley Homes

Google, Inc.

DCA Construction, LP

Gottesman Residential Real Estate

Documation

Grande Communications

Dominion Advisors

Granite Properties of Texas

Don Hewlett Chevrolet Buick Inc.

Gray Engineering, Inc.

Door Number 3

A Greater Austin Development Company, Ltd.

Doucet & Associates

Group Solutions RJW

DuBois Bryant & Campbell

GSD&M

Elgin Economic Development Corporation

Haegelin Construction Company, Ltd.

33

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Hagler & Kerr, LLC

K Friese & Associates

Hahn Public Communications

Karlin Real Estate

Harvey-Cleary Builders

Kennedy Wilson Austin, Inc.

Hawkeye Partners, LP

KEYE-TV Channel 42/CBS

HealthCare Facilities Development Corporation

Kimley-Horn and Associates, Inc.

Heldenfels Enterprises, Inc.

KMD Studley

Higginbotham

Knight Office Solutions of Austin

Highland Resources, Inc.

KPMG LLP

Hill Country Electric Supply

Land Strategies, Inc.

The Historic Norwood Tower

Larry Peel Company

Holtzman Partners, LLP

LASCO Acoustics and Drywall, Inc.

Home Builders Association of Greater Austin

LEDIC Realty Company, LLC

Horizon Bank

Lennar Homes

The HT Group

LNV, Inc.

Hulsey Hunt IP Lawyers

Lockhart Economic Development Corporation (LEDC)

Huston-Tillotson University

Lott Brothers Construction Company, Ltd.

Hyatt Regency Austin

Luther King Capital Management

ICON Plumbing, Heating & Air LTD

The Marek Companies

Imagecraft Exhibits

Marsh & McLennan Agency

Independent Bank

Mathias Partners Commercial Real Estate

Investors Alliance, Inc.

McGarrah Jessee

Ironwood Real Estate

McGuyer Homebuilders, Inc. “MHI”

J.R. Schneider Construction

McKinney Drilling Company

Jack Nash & Wayne Burklund

McLean & Howard, LLP

Jarrell Economic Development Corporation

Meador & Jones

JMEG, LP

Mechanical Reps, Inc.

Jones & Carter, Inc.

Moreland Properties

Journeyman Construction, Inc.

Morrison & Head, LP

34

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

Mtech/Comfort Systems USA

SACHEM, Inc.

Northstar Fire Protection

Saunders, Norval, Pargaman & Atkins, LLP

The Nyle Maxwell Family of Dealerships

Seaholm Power, LLC Commercial Developer

O’Connell Robertson

Siemens Industry, Inc.

Oden Hughes, LLC

Silicon Valley Bank

Office Furniture NOW!

SkylesBayne Company

Pape-Dawson Engineers, Inc.

Santa Rita Ranch

Pfluger Associates Architects

Southside Bank

PMB Helin Donovan, LLP

Staats Falkenberg & Partners, Inc.

Post Properties, Inc.

The Steam Team Cleaning and Restoration

Private Label Realty

Stellargy Services, LLC

Prosperity Bank

Steve T. Matthews Company

Protocol & Etiquette Worldwide / Sharon Schweitzer

Stewart Title of Austin, LLC

PulteGroup

Strait Music Company

R & R Limousine & Bus

Studio 8 Architects, Inc.

Realty Austin

Summit Commercial

Reliant Title

TBG Partners, Inc.

Rhode Partners

TDIndustries

Rifeline

Teeple Partners, Inc.

RKB Contractors, Inc.

Terry McDaniel & Company - Investment Counsel

Rockford Business Interiors

Texas Document Solutions, Inc.

Rogers-O’Brien Construction Company

Texas DPS Credit Union

Rollingwood Community Development Corporation

Texas Engineering Solutions

RPS Klotz Associates

Texas Realty Capital, LP

RS&H

Thomas Graphics, Inc.

Ryan Companies US, Inc.

Robert & Amy Thomas

Sabre Commercial, Inc.

Thrive, FP

35

2016 OPPORTUNITY AUSTIN ANNUAL REPORT

ThyssenKrupp Elevators America TIG Real Estate Services Inc. Time Insurance Agency, Inc. Titus Electrical Contracting, LP, a Division of the Titus Industrial Group Tramor Properties Trinity Real Estate Finance TyRex Group, Ltd. United Commercial Realty

Austin is the No. 2 BestPerforming City in annual assessment of Where America’s Jobs are Created & Sustained.

Milken Institute

Urbanspace Real Estate + Interiors vcfo, Inc. Walmart Walters Southwest Watkins Insurance Group

Austin is America’s Fastest-Growing City.

Forbes

Wattinger Company, Inc. Weaver Wes Peoples Homes Westlake Chamber of Commerce Yellow Cab Austin

As of December 1, 2016.

Austin is America’s Best Place to Start a Business.

CNBC

Austin is No. 2 on global ranking of the Top cities to Live & Work in Tech.

Fast Company

OPPORTUNITY AUSTIN 535 East 5TH St. | Austin, TX 78701