DRAFT Tyler, Texas Response

TYLER ECONOMIC DEVELOPMENT COUNCIL WWW.TEDC.ORG (903) 593 2004 | (800) 648 9537

TABLE OF CONTENTS

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PRESIDENT'S LETTER

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TEDC SERVICES & STAFF BIOS

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INCENTIVE INFORMAITON

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COMMUNITY ADVANTAGES

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COST OF DOING BUSINESS

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DEMOGRAPHICS

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HIGHER EDUCATION

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LABOR PROFILE

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QUALITY OF LIFE

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WELCOME TO TYLER, TEXAS

Dear Consultant, I am pleased to hear that your client is considering Tyler for a new operation. The Tyler Economic Development Council, in concert with the City of Tyler, Smith County, and our workforce training partners such as Tyler Junior College and the University of Texas at Tyler, will work diligently to facilitate your client's needs.

Our community has experienced double-digit growth over the past decade and can accommodate growing companies like your client's. With over 23,000 full time college students, a population of 105,729 in the City of Tyler, a population of 232,751 in the Tyler MSA, and 338,286 in our labor shed, there is an engaged and educated workforce to meet your client's labor needs.

I stand ready to assist your client's in exploring available sites and potential economic incentives that, coupled with some of the lowest property tax rates in the country, make Tyler a profitable business location.

I appreciate your interest in Tyler and look forward to continued work on this project. In this booklet, you will find additional information on Tyler. Should you have any questions or require further information, please feel free to contact me at (903) 593-2004 ext. 246 or via email at jsmartinez@tylertexas.com Additional information can also be accessed on our website at www.tedc.org.

Sincerely,

Scott Martinez, CEcD President/CEO

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THE TYLER ECONOMIC DEVELOPMENT COUNCIL

The Tyler Economic Development Council (TEDC) is a non-profit organization that promotes the creation and retention of primary jobs for Tyler and the diversification of the economic base to expand employment opportunities in the region.

Since its inception in 1989, TEDC has consistently and aggressively promoted business growth through a highly effective, four-point strategy: Retention and Expansion of Existing Businesses New and Small Business Development Targeted Marketing and Attraction of New Business Incentives and Infrastructure The TEDC's focus is on primary employers; that is, companies that sell a majority of their products and services to markets outside our regional economy, thereby funneling those new dollars into our local economy.

Benefitting from a strong labor force and excellent local infrastructure, TEDC has assisted in the creation and retention of over 27,000 jobs since its inception in 1989 and generated over $1.31 billion in new investment in the Tyler area during that time.

Whether you need information or are looking for expansion or relocation opportunities, TEDC is available to help you find the tools you need to succeed in the marketplace.

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Scott Martinez, CEcD President & CEO Scott Martinez became the President and CEO of the Tyler Economic Development Council and CEO of the Tyler Area Chamber of Commerce in October 2020. In a career spanning over 20 years, he has worked directly on projects culminating in over $1.1 billion in direct capital investment. Martinez has served in economic development roles in the Houston and Austin, Texas markets, North Louisiana, and his home state of Mississippi. Scott is a native of Laurel, Mississippi, and earned a bachelor’s degree from Ole Miss as well as a Master of Science degree in Economic Development from the University of Southern Mississippi. He has been designated a Certified Economic Developer by the International Economic Development Council and serves on its Board of Directors and Governance Committee.

Felecia Herndon, DBA

Executive Vice President, Finance & Operations Felecia Herndon manages our Revolving Loan Fund programs, tax abatement and tax increment financing programs, state designated Enterprise Projects, and other financial incentives offered by TEDC to businesses locating and expanding in Tyler/Smith County. Felecia is an Economic Development Finance Professional (EDFP), and in 2015, she became certified as a Professional Community and Economic Developer (PCED) through the Community Development Institute. In 2020, Felecia was elected to the board of directors for Greater Texas Capital Corporation and serves on the loan committee. She has a BS degree in Business Management, an MBA, with a focus on Corporation Finance, and a Ph.D. in Business Administration specializing in Finance.

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Victor Valle, MBA Vice President, Economic Development Victor Valle oversees the preparation of prospect proposals for companies seeking to expand within or relocate to the Tyler/Smith County region, including preparing incentive summaries for interested parties. Additionally, he is responsible for maintaining local demographic and economic data and maintains a comprehensive site and building database. Since 2017, Victor has served on the East Texas Council of Governments' East Texas Economic Development District Board of Directors. Victor is a Tyler native, graduated from Tyler High School then earned a Bachelor's degree in Finance and an MBA from the University of Texas at Tyler.

Karla Anders, EDFP Bookkeeper and Loan Program Manager

Karla Anders is the Bookkeeper for the Tyler EDC and is responsible for payroll and financials. Karla also helps market and manage the Smith County Revolving Loan Fund and the COVID 19 Revolving Loan Program. She assists Felecia with organizing the Finance Committee, crafting the TEDC Operating Budget, and TEDC Audits.

Karla has a Bachelor's degree in Business and Marketing from Stephen F. Austin State University and earned her designation as an Economic Development Finance Professional in 2018.

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Lauren Hayden

Economic Development Specialist Lauren Hayden joined the Tyler Economic Development Council in 2021 as the Economic Development Specialist. She has over 9 years of experience in property management. Lauren graduated Summa Cum Laude from The University of Texas at Tyler, where she earned a Bachelor of Science degree. Lauren is engaged in all facets of the Tyler Economic Development Council’s activities, including operations, project support, as well as serving as the assistant to the President and Chief Executive Officer. Lauren is a native of Tyler, TX.

LaToya Young

Executive Director, Business Education Council LaToya Young is the Executive Director of the Tyler Area Business Education Council and serves as the Tyler Area Partnership 4 Education coordinator. The Business Education Council serves as an organizer of stakeholders and partners to businesses, schools, colleges, and universities to develop new programs, facilities, and events to assist area students and families. LaToya works with partners in all sectors to elevate education as one of the region's most critical issues. The Business Education Council also serves to ensure available educational and skills training programs are properly aligned with local workforce needs.

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INCENTIVE INFORMATION STATE AND LOCAL INCENTIVES

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STATE INCENTIVES Texas takes the initiative to invest in its future by offering competitive incentives to companies who are creating jobs and driving innovation in Texas.

Data Center Exemption Texas provides 100% exemption on sales tax for computers, equipment, cooling systems, power infrastructure, electricity and fuel for data centers meeting the minimum thresholds of $200 million in capital investment, 20 new jobs and an average salary at least 120% of the county average salary. For more information, visit https://comptroller.texas.gov/taxes/data-centers/

Texas Enterprise Fund The Texas Enterprise Fund (TEF) is the largest “deal-closing” fund of its kind in the nation. The fund is used as a performance-based financial incentive tool for projects that offer significant projected job creation and capital investment and where a single Texas site is competing with another viable out-of-state option.

Texas Enterprise Zone Program The Texas Enterprise Zone Program is an economic development tool for local communities to partner with the State of Texas to promote job creation and significant private investment that will assist economically distressed areas of the state.

Skills Development Fund The Skills Development Fund is an innovative program created to assist Texas public community and technical colleges finance customized job training for their local businesses. The Fund was established by the Legislature in 1995 and is administered by the Texas Workforce Commission.

Grants are provided to help companies and labor unions form partnerships with local community colleges and technical schools to provide custom job training. The average training cost is $1,800 per trainee; however, the benefit may vary depending on the proposal. Funding assistance requires that the company partner with Tyler Junior College for training.

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LOCAL INCENTIVES Tax Abatements Tax abatements are primarily considered for manufacturing or distribution facilities, corporate offices, research parks, major tourism attractions, or similar facilities if it can be demonstrated their development would create substantial capital improvements or jobs. The minimum project requirements are: Capital costs to be $1 million (excluding land and existing facilities), new annual payroll of $400,000, and a minimum of 25 new full-time jobs to be created.

Freeport Tax Exemption Smith County is one of only a few counties in Texas in which ALL taxing entities elected to grant the Freeport exemption. The freeport exemption exempts certain types of tangible personal property (i.e., inventory) from ad valorem (property) taxation provided the property is acquired in or imported into Texas to be forwarded out of state, detained in Texas for assembling, storing, manufacturing, processing, or fabricating purposes by the person who acquired or imported it; and transported out of state within 175 days after the date the person acquired or imported it into Texas.

Tax Increment Financing (TIF) A tool that local governments can use to publicly finance needed structural improvements and enhanced infrastructure within a defined area. These improvements are associated with economic development; i.e., they usually are undertaken to promote existing businesses' viability and attract new commercial enterprises to the area. Tax increment financing is based upon the pledge of future real property (not personal) taxes generated by new development within that defined geographic area. The public improvements make development of the area possible, which in turn enhances the value of the property. The taxes generated as a result of the enhanced property values are used to fund the public improvements within the area and other incidental costs.

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LOCAL INCENTIVES City of Tyler Incentive Fund The City of Tyler has guidelines in place to use City funds for land, facilities, equipment, and infrastructure grants to support primary employers that impact primary jobs, expand the City's tax base and diversify the local economy. Eligible companies must create or retain a minimum of 50 full-time jobs and sell 70% of their goods and/or services outside a 50-mile radius of downtown Tyler. Company property must be within the Tyler City limits or agree to be annexed within two years.

Discounted Land The Tyler Economic Development Council currently manages approximately 100 acres in the Tyler Industrial Park and the Tyler Business Park, as well as the 120 acre Tyler Bioscience Research Park adjacent to UT Health Science Center. Our mission is to attract Primary employers that will add new investment and new jobs to the Tyler market. TEDC is willing to discount land for projects that help us fulfill our mission.

Smith County Revolving Loan Fund The TEDC manages the Smith County Revolving Loan Fund, which provides loans to firms that create or retain permanent jobs through the retention, expansion, or establishment of companies in Smith County. Businesses located or locating in Smith County that are producing a product or providing a service from which 50% of their sales are derived outside of Smith County are eligible to apply. The maximum loan amount will be $200,000; the minimum loan will normally be $50,000

TEDC COVID Revolving Loan Fund In partnership with the Economic Development Administration, TEDC has established a revolving loan fund to provide assistance to small businesses in Smith County impacted by COVID-19.

Businesses adversely affected by COVID-19 or businesses producing a product or service related to the needs of the pandemic are eligible to apply. Loan amounts range from $15,000 to $50,000, but larger amounts may be allowed if certain economic impact criteria are met.

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COMMUNITY ADVANTAGES

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Business Friendly Texas consistently ranks as one of the top states for business climate. Business Facilities ranked Texas number 1 for business climate in 2020. Winning Strategies in Economic Development Marketing ranked Texas as the best state for business in 2020.

Tyler ranked as the second Texas city on Forbes' 2019 Best Small Places for Business & Careers. Tyler also ranked 54th in the nation for job growth.

Excellent Transportation Tyler is strategically located midway between Dallas and Shreveport and 200 miles north of Houston. We have excellent interstate and U.S. highway systems with I-20, U.S. 271, U.S. 69, and four state highways that provide efficient and economical transportation to all destinations. Tyler is less than 2 hours from DFW International Airport, and Tyler Pounds Field has daily flights to DFW. A network of class 1 rail also serves Tyler.

Quality Workforce Tyler benefits from a dedicated workforce, which many employers tout as highly productive. Tyler's union membership is only 4.5%, according to Unionstats. Our workforce is enhanced by comprehensive workforce training programs delivered by Tyler Junior College. TEDC is working with TJC to establish an Advanced Manufacturers Council to oversee the Advanced Manufacturing Degree program for the Tyler area.

Medical Destination Center The Tyler area is home to three primary hospitals and a variety of specialty clinics. Over a quarter of the Tyler workforce is employed in the healthcare industry. UT Tyler is currently constructing a new College of Nursing complex and has received funding and approval for a new Medical School and Resident Teaching facility.

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MULTIMODAL LOGISTICS Highways and Interstates Tyler is located along I-20, midway between Dallas and Shreveport, and is the East Texas Area's regional hub. The region's trucking companies offer competitive costs to ship your products to over 53.7 million customers within a 600-mile radius in some of America's largest markets. Dallas, Houston, Austin, Little Rock, Oklahoma City, New Orleans, Memphis, and Kansas City are all within a one-day truck haul.

Railroads Union Pacific's class 1 railroads and numerous short track railways serve Tyler and Smith County. Union Pacific operates a railyard in downtown Tyler, and the nearest intermodal facilities are located an hour's drive from Tyler through Union Pacific in Dallas.

Airports The Tyler Pounds Regional Airport provides commercial air service. American Airlines offers American Eagle jet service to DFW International Airport in Dallas with 5 daily flights. DallasLove Field and DFW International Airports are also accessible within a two-hour drive from Tyler.

Ports The nearest port to Tyler is the Port of Caddo-Bossier, which is regarded as one of the fastest-growing inland river ports in the U.S. In Texas, the Port of Houston is the largest gulf coast container port, handling 67% of U.S. Gulf Coast container traffic. Also, in Texas, the Port of Beaumont ranks in the top 10 among all U.S. ports for total cargo volume.

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600 Mi le

TYLER'S CENTRAL LOCATION ACCESSES OVER 53.7 MILLION CONSUMERS

us di a R

53.7

MILLION CONSUMERS WITHIN A ONE-DAY TRUCK HAUL

Major Markets Within a One-Day Truck Haul (Approximately 600 Miles) Dallas-Fort Worth, Texas Houston, Texas San Antonio, Texas Austin, Texas New Orleans, Louisiana

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Baton Rouge, Louisiana Jackson, Mississippi Little Rock, Arkansas Oklahoma City, Oklahoma Tulsa, Oklahoma

Birmingham, Alabama Mobile, Alabama Memphis, Tennessee Kansas City, Missouri Monterrey, Nuevo Leon, MX

COST OF DOING BUSINESS

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DEMOGRAPHICS

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QUALITY EDUCATION HIGHER EDUCATION CENTER

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THE UNIVERSITY OF TEXAS AT TYLER STUDENTS ENROLLED

10,000 GRADUATE & UNDERGRADUATE PROGRAMS

80+ DEGREES AWARDED (2019)

2,970

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The University of Texas at Tyler is part of the prestigious University of Texas System that includes 14 institutions located throughout the state. Founded in 1971, UT Tyler enrolls nearly 10,000 students and consists of six colleges.

With more than 80 bachelor's, master's, and doctoral degree programs offered, UT Tyler provides a wealth of learning opportunities and dynamic programs.

Most UT Tyler classes are taught by professors, not teaching assistants, and our average studentprofessor ratio of 19:1 is a definite advantage over larger, less intimate campuses.

UT Tyler students represent 167 Texas counties, 45 states, and 58 nations.

UT Tyler is a young, fast-growing university offering outstanding facilities such as the renowned R. Don Cowan Fine and Performing Arts Center, a centerpiece of cultural entertainment in the East Texas region.

Employers confirm that UT Tyler graduates are among the best-prepared graduates from any public university in Texas.

TYLER JUNIOR COLLEGE STUDENTS ENROLLED

13,000 DEGREE & CERTIFICATE PROGRAMS

125+ ASSOCIATE DEGREES AWARDED (2019)

2,666

Since 1926, Tyler Junior College has led the way in higher education by offering a quality education at an affordable price while being close to home.

TJC is accredited by the Southern Association of Colleges and Schools Commission on Colleges to award associate and baccalaureate degrees and certificates.

TJC's awards are offered through a variety of programs in healthcare, business, arts, sciences, technical/industrial trades, and more.

As one of only five community colleges in Texas to be accredited as a Level II institution, TJC is authorized to offer up to five baccalaureate degrees. TJC offers a Bachelor of Science in Dental Hygiene and a Bachelor of Applied Technology in Healthcare Technology and Medical Systems. Both programs meet an important need in our community by providing graduates with more employable skills in the ever-growing healthcare industry.

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TEXAS COLLEGE STUDENTS ENROLLED

1,000 BACHELOR'S & ASSOCIATE PROGRAMS

42 DEGREES AWARDED (2019)

111

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Texas College is a Historically Black College that has been providing a liberal arts education since 1894. Texas College's mission continues to embody the principles of the Christian Methodist Episcopal Church. The College shall prepare students with competencies in critical and creative thinking related to the knowledge, skills, and abilities as defined in areas of study.

Texas College's vision represents a commitment to working and interacting with groups, organizations, and communities. This interaction can assist with enriching the further development of students, staff, and faculty; while also contributing to the community's enrichment. Simply stated, Texas College's vision is to "Enhance the Culture of Learning" for the benefit of a better society.

Texas College awards baccalaureate degrees in the arts and the sciences to students in one of its four major divisions: General Studies and Humanities, Business and Social Sciences, Natural and Computational Sciences, and Education.

LABOR PROFILE DEMOGRAPHICS & WORKFORCE

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TYLER LABOR PROFILE

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THE ROSE CAPITAL OF AMERICA TYLER'S QUALITY OF LIFE

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Welcome to Tyler, Texas, The Rose Capital of America Charming brick streets. Antique shops and unique specialty stores. Crystal-clear lakes. Challenging golf courses and scenic campgrounds. Tyler has something for everyone. Centrally located in Northeast Texas, Tyler is a hub for the region and easily accessible to several major cities. Amenities you can expect in Tyler include a wide variety of flexible and affordable accommodations, first-class service provided by our team of experts, attractions and adventures fun for the whole family, and the best culinary selection in East Texas

Lower Cost of Living

The Tyler MSA enjoys one of the lowest cost of living in the U.S. The Cost of Living Index for Q3 2020 puts our cost of living at 91.9 percent of the national average. According to the Council for Community and Economic Research, Tyler's housing costs are only 77.9 percent of the national average. The median listing price of a single-family house in the Tyler MSA is $229,000, according to Realtor.com (2020). Tyler offers various affordable living options, from waterfront properties to downtown living or a dream house in a gated community.

Destination Health Care Center The Tyler area offers many excellent hospitals and medical facilities.

Baylor Scott & White Texas Spine & Joint Hospital Baylor Scott & White Texas Spine & Joint Hospital’s multiple specialties and departments include back and neck, pain management, joint replacement, orthopedic services, sports medicine, radiology services, outpatient surgery, and sports medicine. The network comprises four facilities in Tyler and Longview, including a new urgent care clinic in Tyler that’s open six days a week. The hospital’s new $27 million state-ofthe-art hospital offers the latest surgical and noninvasive procedures using cutting-edge technology to provide diagnoses, treatment, and recovery, including 21st-century technologies for surgical pain relief procedures. Construction is currently underway on Baylor Scott & White Sports and Orthopedic Center, a 106,000-square-foot, four-story facility offering under one roof a full spectrum of sports medicine and sports performance services for athletes of all ages.

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Baylor Scott & White Texas Spine & Joint Hospital was formed by the merger of three entities in 2017 to enable physicians and other caregivers to provide patients throughout East Texas increasingly coordinated care and allow providers to access quality clinical resources easily.

CHRISTUS Trinity Mother Frances Health System CHRISTUS Trinity Mother Frances Health System offers a complete range of services for patients of all ages. Its nationally recognized cardiology program, advanced surgical capabilities, and innovative neurological services draw patients from near and far.

In that vast system, CHRISTUS Trinity Mother Frances Hospital has served East Texans for more than 80 years and is a 402bed acute care facility in the heart of Tyler that offers many services and Tyler’s only neonatal intensive care unit. A multimillion-dollar expansion project has recently been completed, which hospital officials say will increase capacity to treat the growing numbers of patients with a state-of-theart Emergency Care Center, advanced Intensive Care Units, and an 850 space parking garage.

University of Texas Health East Texas University of Texas Health East Texas has a vast network of hospitals and clinics throughout the area to offer services that include cancer care, heart care, emergency services, labor and delivery, neurology, and wound care. UT Health Tyler also provides a rehabilitation and fitness network, a regional trauma/emergency system, and regional home health care.

The University of Texas Health Center East Texas is the region’s only university medical center and includes the University of Texas Health Science Center at Tyler, which began 75 years ago as a barracks hospital. Today, UTHSC offers a range of services for patients throughout Northeast Texas and beyond with an academic mission of graduate medical education, graduate education, and biomedical and clinical research. The institution is training the next generation of doctors to combat a physician shortage in rural counties of Northeast Texas.

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K-12 Education The Tyler area offers excellent public, magnet, private, and charter school options for a quality education. Tyler's K-12 education provides residents with a range of public school options for every grade level, including many students with high student achievement. The Tyler MSA has ten public independent school districts (ISD's), the largest being the Tyler ISD. Tyler ISD opened a new facility in the Fall of 2015, the Career & Technology Center, which connects students with real-world experiences from various career fields and interests, such as Accounting and Financial Services, Automotive Service, Business Management, Culinary Arts, Diesel and Heavy Equipment, Engineering, HVAC and Sheet Metal, Information Technology, and Manufacturing Technology, to name a few.

Tyler also has thirteen private and charter schools providing a premier educational experience for students at all class levels.

A smaller student to teacher ratio allows for in-depth learning and a collaborative environment.

Regional Retail Hub Situated about halfway between Dallas and Shreveport, Tyler ranks as the largest retail, medical, and business center in East Texas. Serving as a one-stop shopping location for most of East Texas, Tyler has it all. Our mall and shopping centers offer the top name brands, spa and salon services, and plenty of dinner choices! Our local boutiques capture everything that is Tylerhandmade local goods, unique accessories, personalized pieces, and high-end fashion staples.

Eat and Drink Sink your teeth into the Tyler culture by trying one of many delicious restaurants. Barbecue is a work of art, and local Tyler barbecue joints are in a league of their own. With the best culinary selection in East Texas, there’s a unique variety of dining options available for every taste.

In Tyler, there are plenty of opportunities to socialize and enjoy a drink-whether it’s a family-friendly brewery where you can even bring the dog-or a winery where you can enjoy a romantic glass of vino. Cheers!

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Arts and Entertainment Tyler boasts a full spectrum of performing and fine art venues, including a nationally recognized “premier” small-town art museum attracting world-class exhibitions and a performing arts center featuring international touring performers.

The University of Texas at Tyler R. Don Cowan Fine and Performing Arts Center serves the university, Tyler area, and East Texas region as a major focal point for cultural arts. The UT Tyler Cowan Center presents various classic and contemporary professional touring events, including the Performing Arts Series, Broadway Series, Distinguished Lecture Series, special events, and more.

From the concert hall to the classroom to the community, the East Texas Symphony Orchestra has played a vital role in Tyler's cultural life and the surrounding region since 1936. For the past twenty-one years, the orchestra has offered its main subscription series at the R. Don Cowan Fine and Performing Arts Center at The University of Texas at Tyler.

Recreation and Nature If you’re looking for recreation and nature, we’ve got you covered. Tyler has multiple city parks, a state park, lakes for fishing, boating, and swimming, golf courses, camps, and fun for all ages.

Established in 1952, the world-famous Tyler Municipal Rose Garden is the nation's largest rose garden, spanning 14 acres, it features 35,000 rose bushes and more than 500 varieties of roses. Special areas of interest include the Ida Garden, Heritage Garden, camellia, and day lily collections. The Rose Garden is open from dawn until dark, seven days a week, and admission is free. Roses are at peak bloom twice a year, in October and mid-late May. Caldwell Zoo is an 85-acre zoo located in the City of Tyler. It features more than 2,000 animals from 250 species from Africa, North and South America living in natural habitats. The zoo includes a children’s petting pen, two aquariums, picnic areas, and a café. Caldwell Zoo is accredited by the Association of Zoos and Aquariums and is a member of the World Association of Zoos and Aquariums. levels.

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TYLER ECONOMIC DEVELOPMENT COUNCIL 315 N BROADWAY AVE TYLER, TX 75702 WWW.TEDC.ORG