BusinessLink Magazine September 2020

BUSINESS LINK

THE HILL COUNTRY’S PREMIER BUSINESS PUBLICATION Vol. 8, Issue 9 • September 2020

LANDING SUCCESS

HOW KERRVILLE, KERR COUNTY WON THE RACE TO ATTRACT KILLDEER MOUNTAIN MANUFACTURING TO THE HILL COUNTRY AND WHAT IT MEANS FOR THE FUTURE

Business Link KERRVILLE AREA CHAMBER OF COMMERCE 1700 Sidney Baker St., Suite 100, Kerrville, TX 78028 PHONE: 830-896-1155 | FAX: 830-896-1175 | kerrvilletx.com

CHAMBER LEADERSHIP CHAMBER STAFF Tim Rye | Chair Peterson Medical Associates Lisa Winters | Past Board Chair Peterson Health Allison Bueche | Leadership Kerr County Kerrville Public Utility Board Tricia Byrom | Secretary Guadalupe Bank Mike Wittler | Chair Elect, Policy & Governance Kerrville Public Utility Board Justin Foster | Treasurer Community First National Bank Brian Bowers | 1st Vice Chair Government Affairs Centennial Bank Michael Anglin | Communications ARTIFEX42 Summer West | Events and Fundraising Alegria Barn E Kerry Sutton | Membership HCTC Shawna Fahrenthold | Education Alamo Colleges Sue Tiemann Brinkman Preferred Properties David Reast Schreiner University Rose Bradshaw So Fast Printing Clint Fiore Texas Business Buyers, LLC Colby Johle Brookdale Guadalupe River Plaza

Kristan Weaver|Interim-President and CEO president@kerrvilletx.com Angela North | Director of Membership angela@kerrvilletx.com Jennifer Lord | Receptionist info@kerrvilletx.com

BUSINESS LINK STAFF Carlina Villalpando, Publisher Louis Amestoy, Managing Editor Jeanette Nash, Asst. Managing Editor Tom Holden, Photographer John Doran, Advertising Director Advertising: Brandon Baldwin, Valerie Tucker and Luly Bliss Composing: Manager Dean Heep and Johanna Rangel

A PUBLICATION IN PARTNERSHIP WITH

ANOTHER WIN FOR KERRVILLE ➤ Prime Metal Buildings and Components opened its new facility on Harper Road, and it aims to do some big things here in the Hill Country.

PAGE 12

2 BusinessLink • September 2020

A mountain of a deal lands in the lap of Kerr County There have been moments during the Skymaster Project when I’ve searched for clues as to what it might be, including scouring all references to the code name on the internet.

I certainly came up with some compelling ideas but, as former Kerrville Area Chamber of Commerce President and CEO Walt Koenig pointed out, I was wrong.

Regardless, the pursuit of Killdeer Mountain Manufacturing will turn out to be one of the most important events for this community as we head into the 2020s.

The truth is that it may be the defining moment for the community because of the circumstances of the announceLouis Amestoy ment. The deal took less than a year to complete, involved the Kerr Economic Development Corp., Kerrville’s Economic Improvement Corp., KPUB, the Kerr County Commissioners Court, the Kerrville City Council and state leaders all the way up to Gov. Greg Abbott.

While Kerrville had the advantage of being a known place to the Hedger family, which founded KMM in the 1980s, it certainly wasn’t a lock to land the business. While the call of sentimentality is a reason to potentially minimize the achievement, anyone who has worked in a small business knows that the advantages of adjacency to a major market, quality of place and incentives, along with familiarity of an old hometown, will help solidify any deal.

And for those who may doubt that Kerrville can’t repeat the achievement, they’re probably not able to see the community’s great strengths — access to a major east-west interstate, which directly connects Texas to California, and a close proximity to the emergent technological communities in Austin and San Antonio.

In this scenario, KEDC Executive Director Gil Salinas foresees the development of a small hub of supportive industries that can help fulfill the needs in bigger markets. In this magazine, there are examples of that with the work being done by All-Plastics, which has become a vital manufacturer of medical components, and the new Prime Metal, a metal building manufacturer. These two businesses, along with KMM, are examples of what could be coming here in the months and years to come.

While the work done on the economic development front is impressive, it’s still clear that we have much to do when it comes to finding those workers affordable housing. In this edition, we talk with Laura Fore, owner and broker at Fore Premier Properties, about that issue and how the market is responding to the pandemic. Fore points out that the market is stabilizing, but the need for affordable housing, especially homes costing less than $250,000, has never been greater.

Louis Amestoy is the managing editor of Business Link magazine and The Kerrville Daily Times. Watch him at 10 a.m. Monday-Friday on KDT Live — The Kerrville Daily Times’ webcast on Facebook Live.

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CHAMBER NEWS

Criteria set for 98th Chamber awards Staff report news@dailytimes.com Even with a move to a virtual format for the 98th Chamber of Commerce Awards, there will still be plenty to celebrate and organizers are looking for nominations for four major categories.

The annual event, along with the Chamber’s annual Business Expo, have both been moved to virtual events due to the coronavirus pandemic.

Nominees are sought for the the following categories: Bill Dozier Citizen of the Year Nominations can be sent to publisher@ dailytimes.com.

Business Person(s) of the Year • Nominee should have contributed above and beyond the normal scope of a businessperson in the community (Kerrville/Kerr County).

• Nominee should have participated in other volunteer activities that have contributed greatly to the community.

• Nominee must be a Chamber member owning/operating a business located in Kerrville or Kerr County.

Mary C. Williams Memorial Volunteer of the Year Mary Williams volunteered weekly at the Kerrville Area Chamber of Commerce from 1992 to 1997, meeting the public, making phone calls, answering mail, training other volunteers and doing general office work.

Additionally, she served as a volunteer at the VA Hospital providing many services to the patients there. The winner of this award will be a person that exemplifies the Volunteer Spirit in their involvement in the Kerrville area.

• Number of hours contributed a volBBB as KERRVILLE unteer (20%)

• Variety of places this person has volunteered (15%) • Volunteer services provided (25%) • Special contribution this person has made through their volunteer commitment (25%) • How did the nominee’s volunteer service positively impact the business community? (15%) Health Care Leadership Award • Nominee should have contributed above and beyond the normal scope of a person in the health care industry in the community (Kerrville/Kerr County).

• Nominee should have participated in other volunteer activities that have contributed greatly to the community.

• A Chamber member owning/operating a health care business or employed by a member1 in 7/9/20 the health care AD Chamber 2020 INDEED.pdf 3:33 PM industry located in Kerrville or Kerr County.

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COVER STORY

SKY HIGH PROGRESS THE SCALE OF KILLDEER MOUNTAIN MANUFACTURING DECISION COULD CHANGE KERR COUNTHY FOREVER Louis Amestoy and Sean Batura news@dailytimes.com

Gil Salinas has done some boxing in his life.

He’s used to jabbing and ducking, and he’s used to delivering a punch.

Salinas, 47, makes it clear that he’s focused on delivering not punches but economic development. As the executive director of Kerr Economic Development Corp., Salinas delivered a knockout blow to competitors around the state and nation when it was announced last month that North Dakotabased Killdeer Mountain Manufacturing would develop a facility in Kerrville, near the Kerrville-Kerr County Airport.

It’s a get that could be worth more than $100 million for the community in salaries, taxes and other spending in the next decade. If you believe the forecast, that number could double by 2040.

Salinas isn’t content with a singular deal. He’s already ready for the next fight.

“Now we have an opportunity to build a cluster,” Salinas said during a recent interview on KDT Live, just days after the KMM deal was announced.

6 BusinessLink • September 2020

That cluster could be high-tech businesses aimed at supporting aerospace or other technology companies in Austin and San Antonio. There is still plenty of work to be done, but without question, as Salinas predicted, the value of KMM’s move to Texas is a game changer for the community.

Julian Alvarez III, Texas Workforce commissioner representing labor, likened the project to Toyota’s plant in San Antonio, which attracted ancillary companies that provide dashboards and upholstery for the new vehicles built at the plant.

Killdeer’s work is focused on military and commercial aircraft, primarily in the wiring assemblies that help run the onboard avionic systems. The company supports many major manufacturers, including Boeing.

Long code named “Skymaster,” Salinas said that the name of the project draws upon KMM’s initial work with the Skymaster airplane — a unique push-pull engine built by Cessna. That plane, interestingly, is still on the forefront as companies look to use the aircraft for hybrid-electric engines.

See KMM, page 10

COVER STORY

Killdeer Mountain Manufacturing Vice President Kristin Hedger is coming home to Kerrrville, where she spent her high school years. Hedger graduated from Tivy High School in 1999.

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COVER STORY: QUOTABLE

ROB KELLY Kerr County Judge

ANDREW MURR Texas State Representative

➤ “What we’re doing here today is a chance to grow the way that we want to grow. This is clean industry. This is good jobs. These are living-wage jobs that will support families and keep our kids here. This is the kind of economic development that we’re looking for. Now when we started talking about economic development, we start talking about the dreaded word: growth. There are those of us in the county — trust me, there are those of us that are really not that growth oriented… but this is the kind of growth that even the naysayers can welcome.”

➤ “You’re giving us one more reason to brag. KMM demonstrates what we continue to talk about all along, and that’s how great of a place it is to live and work in Texas and in the Texas Hill Country. This is a great place to live, work, and raise a family, and we’re so thankful that you agree with us. And we’re appreciative of the fact that the great state of Texas has incentives in place to help businesses come to Texas so that we can continue the vitality and the opportunity that we afford our residents and our newest Texans.”

DON HEDGER President, Killdeer Mountain Manufacturing ➤ “We’re looking now to take advantage of this opportunity to be part of your community here and we see great things coming. We realize the support we’re getting from all across the state and the city for training and recruiting for these people, and yes, we will become ever-growing in this area.”

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COVER STORY: QUOTABLE

MIKE WITTLER KEDC Chairman

GREG RICHARDSON President, Kerrville EIC

GREG ABBOTT Governor of Texas

➤ “We are particularly pleased to welcome Killdeer Mountain Manufacturing as our newest corporate citizen and business partner as we work to make Kerrville a destination for aerospace and aviation manufacturing. I truly believe this is the first of many projects and partnerships we’ll see in aerospace thanks to the opportunity provided to us by KMM.”

➤ “Killdeer Mountain Manufacturing represents a very significant opportunity to add hundreds of well-paying jobs to the Kerrville market. As a Tier-1 supplier, it is certainly within the realm of possibilities this project will attract other clean industry jobs. It is a privilege to have the opportunity to welcome a project like Killdeer Mountain Manufacturing to our city. I expect EIC’s investment in this project to catalyze significant growth in our tax base, helping to bring in quality commercial development that will ease some of the tax burden off of individual taxpayers.

Furthermore, the number of employees expected to be hired by KMM will bring significant employment opportunity to our community.”

➤ “Texas is a leader in aerospace and aviation, and we are proud to welcome KMM’s new manufacturing facility to the Kerrville community.

Texas’ welcoming economic climate continues to attract the best and brightest from all sectors thanks to our strong workforce, low taxes, and reasonable regulations. I know that this new facility will strengthen Texas’ aerospace and aviation sector.”

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COVER STORY: KILLDEER MOUNTAIN MANUFACTURING

BY THE NUMBERS ➤ 400 KMM jobs created in Kerrville over the next 25 years. ➤ 200 jobs incentivized with up to $360,000 in training funds from the Texas Workforce Commission — $1,800 per employee. ➤ $3,000 from the governor’s office in the form of a veteran created job bonus for KMM. ➤ $900,000 from the governor’s office as a Texas Enterprise Fund grant to KMM. ➤ $42,612 as the average annual wage of each KMM job created in Kerrville, or a $20.47 average hourly wage will full benefits including retirement. ➤ $8.34 million capital investment by KMM. ➤ $3.76 million in tax revenue for the state over 10 years. ➤ $764,290 in tax revenue for the county over 10 years ➤ $752,909 in tax revenue for the city over 10 years. ➤ $32 million in value added to the community by the 20th year of the project. ➤ $80.8 million in economic activity by the 20th year of the project.

KMM Continued from Page 6 However, the work being done in Kerrville will focus on KMM’s core work around avionics. The jobs that will be brought to Kerrville are expected to add nearly $50 million in immediate economic impact to the region.

The average annual wage of each KMM job created in Kerr County is anticipated to be $42,612, according to a fact sheet provided by the city of Kerrville. The company is anticipated to make a capital investment of $8.34 million in Kerrville and, over a 10-year period, result in tax revenues of $3.76 million for the state, $764,290 for the county and $752,909 for the city.

For the KMM management, Kerrville is not an unfamiliar place, but Salinas said that did not mean that the area was a lock to land the company. KMM’s vice president, Kristin Hedger, graduated from Tivy High School and split time between here and North Dakota as a teenager.

Salinas said the company could have easily moved to another state or to another part of Texas, but instead, a slew of incentives, including the backing of Texas Gov. Greg Abbott, helped secure the deal for Kerrville.

With Abbott’s backing, along with the city, Salinas and Kerrville City Manager Mark McDaniel, along with others, were able to move quickly to make the deal happen.

“Usually these deals take two or three years,” Salinas said. “Sometimes they take five years.”

Kerrville and state officials were able to steer about $2.3 million worth of incentives toward the company, along with another $1.76 million from the state — most of that coming from Abbott’s office.

The deal, which is still being negotiated, calls for the North Dakota-based aerospace parts manufacturer to acquire the land and existing 44,000 square-foot building necessary to begin

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Kerrville City Manager Mark McDaniel was a key negotiator to bring Killdeer Mountain Manufacturing to Kerrville. operations at Airport Commerce Park across the highway from Kerrville’s airport.

The land and existing building would be purchased mostly with cash from the Kerrville Economic Improvement Corporation, which funds such projects with a portion of the local sales tax rate. The city of Kerrville would further sweeten the deal by forgiving permit fees, extending utilities and other in-kind services.

Because the EIC is funded by the 4B economic development sales tax rate, not all EIC monies come from city residents, as out-of-town shoppers also contribute their dollars.

The building at 5275 Texas 27 and an adjacent 3.2-acre, unimproved parcel are to be sold for $1.8 million, according to a presentation Kerrville City Manager Mark McDaniel made to the EIC. McDaniel said this price is based on an independent appraisal.

See KMM, page 19

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COVER STORY: KILLDEER MOUNTAIN MANUFACTURING

Tom Holden/Times Photo Editor, photo@dailytimes.com The building at 5275 Texas 27 will be the home of the Killdeer Mountain Manufacturing plant in Kerrville.

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PRIME TIMING Staff report

news@dailytimes.com

T

he much-awaited Prime Metal Buildings & Components officially opened off Harper Road in Kerrville. Prime is a Texas family-owned and operated company that has been manufacturing, designing, and supplying metal buildings and components for more than 23 years.

The new store manager is Kerrville resident Raymond Gallego.

“On behalf of my wife Arlette, son Gunnar, daughter Gianna and the Brown family, we are very excited for the opportunity to bring Prime to the Texas Hill Country,” Gallego announced.

Prime has designed and shipped buildings all over the country

12 BusinessLink • September 2020

With a focus on metal buildings, another business opens in Kerr County

including to the Northeast, West Coast, and even Hawaii.

“You will not find a metal building supplier in the Texas Hill Country with better pricing, better quality products, or better customer service, I can promise you that,” assured Gallego. “We have over 3½ acres of structural inventory, 18,000 square feet of manufacturing facilities, and over 1,500 square feet of construction tools and necessities.”

Prime’s new facility in Kerrville is equipped with high-speed roll formers and long folders which allow them to fill orders with on-demand production for sheet metal and trim. They offer sheet metal and trim in more than 20 different stock colors and can special order custom colors.

Prime Kerrville is a part of a larger Prime family of companies with four full-service retail locations such as Kerrville and three

other manufacturing divisions housed in more than 200,000 square feet of Prime metal buildings. Prime has more than 120 employees and the manufacturing capacity to make 100% of the steel products that go into metal buildings.

“We are looking forward to expanding into the Texas Hill Country and are eager to be a part of the Kerrville community,” co-owner and COO, Austin Brown said. “It is our hope that by providing builders the opportunity to purchase manufacturer direct, we will be able to save them valuable time and money while supplying them with the topquality building components they need to do their jobs efficiently.”

Prime offers pre-engineered, bolt-together metal buildings and metal building components for weld-up construction, as well as metal roofing material.

Prime’s design and manufacturing capabilities are what set

the company apart from the competition. With a full-blown design department, Prime helps customers take their ideas and create an efficient metal building design. Prime has designed and supplied pre-engineered metal buildings that range from more than 2 million square feet to less than 100 square feet. No project is too big or too small for Prime.

“We are big enough to handle any size project but still small enough to care about the details of each customer’s projects and what the customer wants and needs in service and dependability,” Brown said.

More information about Prime Metal Buildings & Components and the products that will be offered at the Kerrville location can be found at www.primebldg.com, or stop by and visit them at 854 Harper Road in Kerrville.

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BUSINESS IN THE TIME OF CORONAVIRUS

From left: Dale Robertson, Texas Workforce Commission, Interim Director, Office of Employer Initiatives; Julian Alvarez III, Texas Workforce Commission, Commissioner, Representing Labor; Shannon Herrera-Mendoza, Alamo Colleges, Economic & Workforce Development; Jennifer Latiolais, ll-Plastics, Development Director; Theresa Metcalf, Kerr Economic Development Corporation, Business Retention & Expansion Manager

WORKFORCE INVESTMENT AN ESSENTIAL COMPANY IN THE PANDEMIC, ALL-PLASTICS EARNS GRANT TO HELP DEVELOP SKILLS OF FUTURE EMPLOYEES Staff report

news@dailytimes.com All-Plastics, a plastics injection molding manufacturer that largely serves medical and pharmaceutical markets has received a COVID-19 initiative training grant through the State of Texas and Alamo Colleges.

The Skills Development Fund COVID-19 Special Initiative is a new program from the Texas Workforce Commission (TWC) in direct response to the COVID-19 Pandemic Outbreak. The funding provides assistance to employers for training new and incumbent workers for business partners affected by COVID-19.

Since the global pandemic started there has been an increase in

14 BusinessLink • September 2020

required production of disposable medical componentry to support the rise in healthcare demand. When the United States declared national emergency the demand for disposable infection prevention products has tripled alone. All-Plastics primarily manufactures medical products for infection prevention, vascular, respiratory, diagnostics, orthopedic and wound management Companies.

All-Plastics has a very diverse workforce and has available jobs from non-skilled entry level positions all the way up to highly technical trade and engineering positions. All-Plastics manufactures and ships more than 30 million components per month.

“Even though it might have felt like the world stopped in March, we have continued to hire new talent throughout the pandemic. We are seeing an influx of applicants from all walks of life. People are getting engaged in manufacturing and see the job sustainability for the future. Not everyone gets to go to work every day and make something that will save someone’s life; we do. Its fun, interesting and challenging work,” said Jennifer Latiolais, Development Director.

The Company will utilize the training grant to teach needed skills specific to injection molding manufacturing while advancing employees into tier training programs for higher wages based on skills or promoting them into new job positions created or available within the company.

BUSINESS IN THE TIME OF CORONAVIRUS

GLASS NEARLY FULL AFTER MANY ATTEMPTS TO REVERSE AN ARCHAIC DRINKING LAW, PRECINCT 2 BUSINESSES ARE ONE STEP CLOSER TO VICTORY Sean Batura

sean.batura@dailytimes.com After years of efforts, this year’s November General Election ballot will include a question about whether to normalize alcohol law in Precinct 2.

During a meeting last month, members of the Kerr County Commissioners Court voted unanimously to place the measure on the Nov. 3 ballot.

The measure will ask Precinct 2 voters whether all alcoholic beverages, including mixed drinks, can be sold in the area.

Commissioners were able to vote on the matter after the Tax Assessor-Collector’s Office certified a petition requesting the measure be placed on the ballot.

Signatures had been gathered for the petition by the Precinct 2

Prosperity Project, a group of residents and business owners who have argued current restrictions on alcohol sales stifle the area’s economy. Additionally, because the county’s large events center is in Precinct 2, no cash bars are allowed there, which limits the ability of the facility to generate income to help cover its operations.

A representative of the Tax Assessor-Collector’s Office was on hand at the meeting to report that although more than 400 signatures on the petition were found to be invalid, the certified signatures — all 2,498 of them — still well exceeded the 2,016 needed to allow the measure to be placed on the ballot.

The representative reported that of the invalid signatures, 177 were of nonregistered voters, 121 were registered in other precincts, 74 were duplicates and 64 were from other counties.

As it stands now, people in Center Point and other unincorporated portions of Precinct 2 can’t sell beer stronger than 5% or liquor without going through costly legal hoops. Even with a current legal loophole, wine sales are prohibited without a winery permit. A sole winery operates in Precinct 2 and can sell its wares on the condition the wine is bottled in Texas and at least 75% of the fermented fruits are grown in Texas.

Precinct 2 County Commissioner Tom Moser hailed the efforts of the Precinct 2 Prosperity Project, including its program director, Claudia Richards, and those who helped finance the effort.

“It was amazing what they did,” Moser said. “So Claudia, we thank you, we thank your team.”

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THE REAL ESTATE MARKET

Q&A WITH LAURA FORE, FORE PREMIER PROPERTIES

MARKET STABILITY W

e recently had a chance to talk with Laura Fore, owner and broker of Fore Premier Properties in Kerrville, about the overall market. She also appeared on The Kerrville Daily Times’ weekday webcast — KDT Live. Here’s some of the highlights from her interviews.

BUSINESS LINK: How is the market?

Laura Fore: The Kerrville of Board of Realtors Residential Sold Monthly Report (which reports on all areas contained within the multiple listing service) indicates positive increases for the housing market for the Kerr County area. The report showed 94 homes sold during the month of July, which is an increase of 16% from the prior month — a sign that stability is returning to the market.

The increasing sales numbers over the last three months display a positive

16 BusinessLink • September 2020

outlook for our housing market overall which means we can expect that the remainder of the summer will follow a similar pattern of positive sales, our area offers a wide spectrum of homes and that also helps to keep the numbers stable.

Compared to July 2019, Kerrville’s average price of a home increased by 10% (from just over $330,000 to just over $363,000) in July of 2020.

Since the start of 2020, there have been 1,441 active residential listings — 936 of those were posted as new to the multiple listing service, and there were 467 total home sales with an average of 120 days on the market. Which speaks to our supply and demand levels.

You offer a lot of beautiful properties, what kind of movement are you seeing in the high-end market?

I define the high-end market as anything over 500K for our area — and that is also the threshold as defined by the Institute

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BUSINESS LINK THE HILL COUNTRY’S PREMIER BUSINESS PUBLICATION

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Monthly glossy magazine featuring business development in the Hill Country.

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LAURA FORE INTERVIEW ➤ On Aug. 14, Laura Fore sat down for an interview with KDT Live, The Kerrville Daily Times’ weekday webcast. You can see the interview in its entirety by visiting DailyTimes.com, where you can also listen to an audio version of the show, or by visiting facebook.com/kerrvilledailytimes. During the interview, Fore discussed some of her efforts in the community, including with the Museum of Western Art. For more about Laura Fore visit her website at forepremierproperties.com.

for Luxury Home Marketing for our county: • Total inventory: 75 homes (over 500K) • Total Sales (in the last 6 months): 37 (over 500K) • Sales ratio is 49% which means for the luxury market we are in a seller’s market ~ Sales Ratio defines market speed and market type: Buyer’s < 14.5%; Balanced >= 14.5 to < 20.5%; Seller’s >= 20.5% plus.

Over the last six months, homes sold for an average of 95.94% of list price.

• The most active price band is $500,000-$599,000, where the sales ratio is 98.2%.

• The average days on market was 138 days for the 500K+ market overall.

Comparing this to last year… we had 34 sales in 2020 between May-July and comparing that to 2019 there were 35 sales so again very stable, but if you break out specifically the 1M+ market there were five in the past three months compared to just two in 2019.

BL: How has COVID-19 changed real estate?

Laura Fore: Let’s start with the market. Amid the COVID-19 pandemic, our two declining months were April and May — we went from 76 sales in March to 56 in April and 59 in May before we rebounded in June to 81 and July’s 94 — thankfully we rode the storm, but that has also been true for our area during prior times of economic crisis’ — Kerrville enjoys stability compared to other markets that have extreme highs and lows and I think that can be attributed to the wonderful lifestyle that we have here… we will always be a place that people flock to.

See HOUSING, page 18

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Thank You to Our Diamond & Platinum Investors

Diamond Investors • Kerr County Federal Credit Union • Jam Broadcasting 94.3 • Alamo Colleges • Kerrville Public Utility Board • Alara Strategic and Creative • Martin Marietta • Ashley HOMESTORE • Mo-Ranch • Brookdale Senior Living • Moore’s Home Furnishings • Calvary Temple Church • Palate Thyme • Centennial Bank • Peterson Health • Century 21 The Hills Realty • Precision Dentistry and • China Bowl Implants of Kerrville • Ragsdale Family Camps Chinese & Vietnamese • Randolph Brooks Federal • Comerica Bank • Community First National Bank Credit Union • Sam’s Club • Cypress Roofing • Schreiner University • Frost Bank • Security State Bank & Trust • Ronnie Gesell Construction • Texas Lions Camp • Robert Glossop Jr. • Gravity Check Saloon & Arena • Texas State Optical • United Hunting • HCTC • H.E.B. Foods-Drug Store Heritage International • Hill Country MHDD Centers • UTSA Small Business • Inn of the Hills Resort & Development Center Conference Center • Wal-Mart Store, Inc. #508 • James Avery Artisan Jewelry • Wells Fargo Bank • Joe Cook & Associates, Inc. • Wine-O-Bout It • Ken Stoepel Ford

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KDT Chamber Diamond Platinum Investors & Platinum 2798

• 72 Degrees Air Conditioning & Heating • Airtech A/C & Heating • All-Plastics • Broadway Bank • Douville, Goldman & Associates, PLLC • Guadalupe Bank • Hill Country Memorial • Hill Country Youth Event Center • Home Simple Goods • Kerrville Hills Winery • Kerrville Plumbing Plus • Laity Lodge Youth Camp H E Butt Family Foundation • LeMeilleur’s RV, Truck & Equipment Repair Co. • Precision Dermatology, PA Kerrville Dermatologist

• Prime Capital Investment Advisors • Safeguard Business Systems • San Carlos Ranch • State Farm Insurance Justin Hamilton • Superior Services Tree Care • Talarico and Associates, A Wealth Management Firm • Texas Hill Country Bank - Kerrville • Turtle Creek Olive & Vines • Volunteer Services Council for Kerrville State Hospital • Windstream Communications • Y.O. Ranch Resort Hotel and Conference Center • Y.O. Ranch Headquarters

Your Membership Is An Investment In Your Business The Kerrville Area Chamber of Commerce 1700 Sidney Baker St., Suite 100 • Kerrville, TX 78028 Phone 830-896-1155 / Fax 830-896-1175

www.kerrvilletx.com 18 BusinessLink • September 2020

Housing Continued from Page 17 Though home sales have come back strong, the market is still seeing some sellers are hesitant to list their home, ultimately creating a competitive environment for buyers. Active listings are going fast.

For buyers, the latest data released Thursday by Freddie Mac, shows the 30-year fixed-rate average increased to a 2.96% interest rate. It was 2.88% a week ago and 3.60% a year ago. The 30-year fixed average has remained below 3% for four of the past five weeks. It’s the first time the rate has fallen below 3% in 50 years. Financially this is good news but active buyers should be prepared to compete for their dream home in this tight market. Experts are optimistic that the effect of COVID-19 will not cause much damage to the overall estate market. Strong home sales in June and July are good news for the real estate market across the region. The increases will help limit the pandemic’s impact on the first half of the year overall. But as always we will have to remain cautious. As for business practices we follow a number of guidelines — we are seeing more digital tours, virtual tours, matterports, facetimes, and of course masks and social distancing… most importantly we want our clients and agents to be safe, happy and healthy.

BL: What is your take on affordable housing in Kerrville?

Laura Fore: Homes for working-class and low-income families is a big issue. The shortage is actually pushing up house prices. There are so many factors that play into this lack of supply, cost of land, cost of labor, cost of materials, wages not keeping up with cost of living.

I believe a public/private partnership is needed for Kerrville.

Our city has the dirt and the ability to provide infrastructure and we need to find the right developer to partner to develop lots that are convenient to town and places of work.

We need a builder that knows how to build efficiently smaller homes. It’s amazing what you can do with an open concept and yet still provide a wonderful lifestyle.

We need to educate families and individuals that there are loan programs available to them that allow for 100% financing — meaning no down payment required — often we can even roll in closing costs, we are blessed to have USDA financing available in our county because we are considered rural, and don’t forget FHA loans. Paying rent eats up more of a paycheck than a mortgage.

The faster we can get our working-class and low-income families into homeownership, the sooner they can build equity and wealth. Homeownership offers financial advantages over renting.

Making regular payments on an amortizing mortgage is a “forced savings” mechanism, meaning that homeowners are paying down debt and accumulating equity with each payment. By contrast, rent payments only cover the consumption value of housing and do not accumulate savings.

KMM Continued from Page 12 There’s an additional anticipated $40,000 expense for due diligence and closing costs, which are not included in total estimated local incentives of $2.3 million. The market value of the two properties as assessed by the Kerr Central Appraisal District is $577,304 less than the price under consideration.

Company founder and president Don Hedger, in his remarks at the announcement event, thanked everyone who made the project possible.

“I’m almost speechless with being proud and so thankful for the way we’ve been welcomed here,” Hedger said. “You people are so, so smart, so extremely hospitable to us, and it feels … like we’re coming back home again. I say that very sincerely.”

Hedger remarked that his hometown of Killdeer, North Dakota, has a historical connection to Texas by way of the cattle drives of yesteryear, by which intrepid, strong people brought their traditions and values northward from the Lone Star State.

“It just shows the persistence, and the character of these folks who came and basically served as the basis for our schools and our churches and our culture. It’s so meaningful for me to come back and see that result here with all of the hospitality and hardworking, smart people,” Hedger said. “In a way this is kind of like we’re hoping to repay some of the things that you gave us many years ago.”

The project is expected to benefit companies that provide housing, employment services, durable goods wholesalers, and aircraft parts and auxiliary equipment.

In order to entice the company to expand in Texas and in Kerrville, state and local officials had to prove that Kerr County could help provide a qualified workforce to fill the future positions. To help prepare students who might want to work for KMM, Alamo Colleges will work with the company to train employees in the production of three products: military and commercial cables, circuit card systems and fiber optic bundles. The Texas Workforce Commission committed to giving the company $1,800 per position created in Kerr County, up to a maximum of 200 employees, to help in this training effort.

Alvarez said a program at Tivy High School that qualifies students as drone operators was indicative of the commitment local officials have made to ensuring younger generations of Kerr County residents are qualified to work at KMM and at other hightech companies. The Hedger Family expressed the hope that the new KMM jobs in Kerrville would also be suitable for military veterans, he added.

In addition to assembly positions, KMM will provide jobs related to quality, shipping, receiving, engineering, supply chain, management, accounting and human resources, according to a factsheet provided by the city.

“Kerrville is home to one of five Veterans Affairs Medical Centers in the State of Texas, and because of that Kerr County attracts numerous veterans to the area,” Murr said in a press release. “A manufacturing warehouse in the county could provide job opportunities and security to those veterans, especially those transitioning back into civilian life and into the workforce.”

The company is expected to generate more than $80.8 million in economic activity and more than $32 million in value added to the community by the 20th year of the project and afterward.

Now, Salinas, along with others who have had the taste of success, is ready to make another deal.

“Let us do our thing,” said Salinas. “And we will get results.”

Please join us in extending a word of “Thanks!” to these businesses for sponsoring the major events being held in 2020 by the Kerrville Area Chamber of Commerce.

Because of their generosity and support, we will be able to continue to educate and serve our membership and community about shared opportunities, issues and challenges.

BUSINESS EXPO Will be held virtually this year.

Please refer to www.kerrvilletx.com for further announcements and follow us on Facebook.

1/2 98TH ANNUAL CHAMBER CHOICE AWARDS & MEMBERSHIP MEETING

KDT Chamber Major Events 4 ANNUAL HILL COUNTRY 2799 ECONOMIC SUMMIT

Will be held virtually this year.

Please refer to www.kerrvilletx. com for further announcements and follow us on Facebook.

TH

February 2020

HILL COUNTRY YOUTH EVENT CENTER

25TH ANNUAL CHAMBER GOLF CLASSIC June 2020

ROBERT GLOSSOP JR. - INDIVIDUAL SPONSOR SCOTT SCHREINER MUNICIPAL GOLF COURSE

1700 Sidney Baker St.,Suite 100 • Kerrville (830) 896-1155 • www.kerrvilletx.com

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8/11/20

10:01 AM

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20 BusinessLink • September 2020 is an equal opportunity provider and employer.

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