Greater Waco Business Magazine - Fall 2020

FALL 2020

A GREATER WACO CHAMBER PUBLICATION

WACOCHAMBER.COM

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FROM THE PRESIDENT

2020 EXECUTIVE COMMITTEE CHAIRMAN

VICE CHAIR

Capstone Mechanical

Lalani Lodging, Inc.

CHAIR-ELECT

PAST CHAIR

Pattillo Brown & Hill, LLP

Merrill Lynch Wealth Management

VICE CHAIR

PRESIDENT & CEO

Insurors of Texas

Greater Waco Chamber of Commerce

Rick Tullis

Jennifer Manning

George Chase

CHAMBER STAFF

Rachel Alston Jessica Attas Jennifer Branch Kris Collins Gabriella Colurciello Leigh Davis Nancy Gupton Keith Kusler

EDITOR

Leigh Davis

Kary Lalani

Loren Schwartz

Matt Meadors

Rachel Martinez Debbie McCutchen Matt Meadors Seth Morris Jason Powers Lexy Reil Michelle Williams

ASSOCIATE EDITOR Gabriella Colurciello

ART DIRECTOR

In early March, it became clear to your Chamber’s leadership and professional team that the COVID–19 pandemic was going to create an extremely difficult environment for our business community, and overall community. As we moved forward, we steeled ourselves for the impacts and responded with great energy and purpose.

We created and are continually updating a new website buildout, Waco Supporting Waco, to help inform, assist, and guide our members, the broader business community, and fellow citizens through the crisis. We immediately engaged with our local, state and national elected officials and leaders to advocate for rapid and robust relief for our businesses and employees. This advocacy continues unabated.

Further, we have continually educated our business community about vital local, state, and federal funding and workforce programs. We conducted many business and industry sector conference calls with our area businesses, and developed and launched a new workforce initiative, Find Your Waco Jobs Spotlight, in order to connect workers with companies seeking talent. We helped secure PPE for our hospitals, other medical care providers, and critical industries. We also developed and launched a Reopen Waco buildout on our website to provide guidance to our businesses on how to safely reopen.

Importantly, we developed and launched a Buy Local initiative designed to encourage people to support our local small businesses. Small businesses are commonly referred to as the lifeblood of the U.S. economy. They create two-thirds of net new jobs, drive innovation and competitiveness, and add uniqueness to the fabric of a community. Unfortunately, and as anticipated, many of our small businesses have been hard hit by the pandemic.

Our community entered 2020 in a very strong position. In February, our unemployment rate stood at just 3.3 percent. In April, our unemployment rate had moved up to 10.6%. In July, our unemployment rate had fallen to 6.5 percent. The numbers are moving in the right direction, but the table below shows that some sectors of our economy are still experiencing great pain. Our Leisure and Hospitality sector, in particular, is still very seriously stressed.

Keith Kusler

For advertising, contact Gabriella Colurciello (254) 757-5618 • gcolurciello@wacochamber.com

ON THE COVER In this issue, contributors from state associations and local, small businesses discuss the effects of the pandemic on their respective industries.

This issue also reminds readers of the great experiences that await in our community, whether a Wacoan or visitor, and the significance of supporting small businesses at this time.

Greater Waco Business is published and distributed to Chamber members and economic development prospects. Digital copies are available online at WacoChamber.com.

This publication is printed on FSC-certified paper.

This edition of Greater Waco Business magazine is dedicated to our small business community. Now, perhaps more than ever before, our small businesses need our support.

Please lift them up with your words and your dollars.

Thank you for your continued support of your Chamber of Commerce.

With appreciation,

© 2020 Greater Waco Chamber 101 S. Third St. Waco TX 76701 • (254) 757-5600 The Greater Waco Chamber reserves the right to reject editorial or advertising content in the Greater Waco Business publication, and via the organization’s full range of communications | FALL 2020 platforms, at its sole discretion.

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Matthew T. Meadors President & CEO

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CONTENTS

FALL 2020

BUY LOCAL EDITION

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THE IMPACT OF BUYING LOCAL IN WACO

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12

WACO ON THE VERGE OF PROPOSING A NEW TOURISM PUBLIC IMPROVEMENT DISTRICT

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HELPING TEXAS RETAILERS RECOVER

28

REDISCOVER THE HEART OF TEXAS

32

THE TEXAS RESTAURANT PROMISE

34

LEGAL MINUTE: ADA BASICS FOR EMPLOYERS

38

PUBLIC POLICY: SMALL BUSINESSES ARE THE HEART OF WACO

40

ECONOMIC DEVELOPMENT MARKET REPORT

TEXAS CRAFT BREWERS GUILD HELPS WACO CRAFT BEER SCENE STAY ALIVE

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ON THE MARKET ECONOMY IN FOCUS

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CHAMBER NEWS

50

MEMBER NEWS

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NEW MEMBERS

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We encourage you to shop and buy local.

Greater Waco comprises a variety of small, locally-owned businesses, including unique boutiques, retailers, and restaurants.

Now is the time to support these small businesses and ensure that they withstand the current storm.

This issue explores the impact of the pandemic on a multitude of industries and reiterates the importance of supporting local businesses and their employees.

Visit our membership directory for a list of member businesses that will welcome you and value your patronage. We are Waco Supporting Waco.

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by M. Ray Perryman, PhD, President & CEO of The Perryman Group

BUYING LOCALLY IS ABOUT MORE THAN JUST SUPPORTING INDEPENDENT LOCAL BUSINESSES; IT ALSO HAS A MUCH WIDER IMPACT BY SUPPORTING THE ENTIRE LOCAL ECONOMY. In the midst of the global coronavirus pandemic, the primary focus has rightfully been placed on public health and slowing the spread of COVID-19.

At the same time, social distancing requirements and other consequences of the virus are causing substantial harm to the economy. Millions of jobs have been lost across the nation, with more than 4,200 lost in the Waco area from June 2019 to June 2020 (which is actually a substantial improvement over the 11,100 lost between January and March). It is absolutely essential to balance economic recovery and public health concerns. The sharp downturn in the economy was brought about by a health crisis, and a full rebound cannot occur without solutions being found. In the interim, however, it is possible to support local economies by spending more at local businesses.

Increasing local spending generates benefits across the economy. Every dollar spent in an economy has a broader impact within the entire economic system.

When the revenues of local businesses increase, they are more likely to add or retain employees. They also spend more with other local businesses providing necessary goods and services. When employees spend their earnings, additional benefits occur. This concept of the additional impact every dollar spent can have is referred to as a multiplier effect. While this indirect and induced impact can occur anywhere within a larger economy, local businesses generate a greater impact within the area economy.

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Studies performed by Civic Economics in conjunction with the American Independent Business Alliance found that local, independent businesses have a greater local economic impact than chain businesses. Specifically, these studies found that local retailers recirculate three times as much revenue as chain retailers and local restaurants recirculate twice as much compared to chain restaurants. While chain businesses also provide stimulus to the local economy, particularly in the form of wages for their workers, local businesses offer a larger premium.

The Perryman Group’s US Multi-Regional Impact Assessment System was used to measure the total potential economic benefits of increasing local spending in Waco in some of the sectors most impacted by the pandemic. We estimate that if people in the Waco area increased spending at local retail stores, restaurants, and personal services establishments to levels consistent with local product and service availability and patterns in other comparable areas, it would lead to an increase in direct spending of almost $3.2 billion per year. When multiplier effects are considered, this increase in local spending leads to additional economic benefits of over $1.0 billion in gross product, $605.1 million in personal income, and 17,628 jobs in the Waco area.

This additional activity would represent a significant boost to the local economy, with the increase in employment representing a 13.9 percent increment for the area.

Photos provided by L3Harris

The Potential Impact of Increased Local Purchases on Economic Activity in the Waco Area — monetary values in millions —

RETAIL

RESTAURANTS PERSONAL SERVICES

TOTAL

Direct Spending $2,315.8

$662.4

$198.3

$3,176.5

Gross Product $769.0

$188.6

$56.9

$1,014.5

Personal Income $459.4

$105.7

$39.9

$605.1

677

17,628

Employment 10,347 6,603

Note: Based on 2019 Spending Levels. Direct Spending estimates based on the potential gains if local consumers exhibited purchasing patterns consistent with local product and service availability and those observed in other comparable areas. The measures of potential economic gains reflect simulations of the Waco MSA submodel of The Perryman Group’s US Multi-Regional Impact Assessment System with overall benefits constrained to reflect those achieved through the incremental direct spending.

Source: The Perryman Group

When it comes to local spending, a little can go a long way, and jobs can be created with very small increases in spending per person. The Perryman Group estimates that a job would be created in the Waco area if everyone in the area spent just another $0.82 per year at a local retail store, $0.37 per year at a local restaurant, or $1.06 per year at a local personal services firm.

Prior to the pandemic, the Waco economy was growing at a steady pace and was in a healthy place.

Now, due to the decreased demand and limitations placed on businesses over the past few months for public health reasons, many of the normal supports for the economy are disrupted and businesses are struggling to maintain jobs and cash flow. Waco has also typically enjoyed a large amount of tourism in recent years, especially during the summer months.

According to the Waco Convention and Visitors Bureau, the number of visitors to Waco through the first half of the year is down 61 percent compared to 2019, a shortfall of over 800,000 so far. Visitors to Waco

provide extra money to inject into the local economy, which then spurs additional local spending.

Due to the disruption in the area economy, supporting local businesses is more important than ever. The loss of a substantial number of visitors coupled with the other difficulties in the economy caused by the pandemic will lead to a large shortfall of revenue for local area businesses. However, simple actions from local residents can make a big impact.

Intentionally spending money at local businesses (or choosing a local chain store over an online retailer) can provide additional money to circulate throughout the local economy. Even choosing a staycation in lieu of typical summer destinations can provide additional stimulus for the local economy, especially as others’ travel plans have been substantially curtailed by COVID-19.

Choosing local establishments can make a very real difference in overall performance. In the end, we will get through this time – we just need to hang on for the bumpy ride. n WACOCHAMBER.COM

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by Scott Joslove, President & CEO, Texas Hotel & Lodging Association

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n the days of COVID-19, the Waco tourism industry and city officials are not sitting idle. Plans are currently underway by Waco hoteliers to propose and seek creation of a Waco Tourism Public Improvement District (TPID). The proposed District has received strong support from the Waco Convention Center & Visitors Bureau, Waco City Council, the Waco City Manager’s Office, and the City of Waco Legal Department. The process for creation of the District is being facilitated by Todd Bertka and Carla Pendergraft of the Waco Convention & Visitors Bureau (CVB). If approved, the District will include all hotels within the City of Waco that have 75 or more sleeping rooms. The creation of this District was actually initiated prior to the onset of the COVID-19 pandemic. However, the impetus has changed with the onset of the pandemic.

What was a great idea to promote the economic growth of a thriving Waco hotel sector will now be an essential tool for achieving the economic recovery of a COVID-19 impacted Waco tourism industry. COVID-19 shelter at home orders, travel bans, and the cancellation of conventions, group meetings, and large events has had a draconian 12 | FALL 2020

impact on Waco hotels — that prior to the pandemic were leading the state in hotel occupancy growth. From January to April of this year, Waco hotel occupancy levels dropped from 72.0 percent annualized occupancy of all hotel rooms to a below subsistence level of 29.8 percent occupancy of Waco hotel rooms.

While we don’t expect the impact of COVID-19 to last forever, it is not clear when the ability to freely travel and meet will return. The creation of a Waco Tourism PID, however, will allow Waco to “hit the ground running” with enhanced funding to market Waco hotels and tourism venues once that time arrives. We will want to get the word out that Waco hotels are open for business and be able to provide incentives to secure group meetings, sporting events, and other gatherings that are essential to filling hotel rooms, restaurants, and countless other community businesses.

Texas currently has four operating Tourism Public Improvement Districts. The first District was created in Dallas, Texas. The work of the Dallas Tourism District

resulted in a 17 percent increase in the overall occupancy level for Dallas hotels city-wide.

And, for each dollar that the Dallas TPID expended in meeting incentives, it yielded an average of $14 in room night revenues to Dallas hotels. This unprecedented level of return on investments resulted in requests by the Cities of Fort Worth, San Antonio, Arlington, and Austin for state legislative authority to create a Tourism PID in each of their areas. This legislative authority was secured in 2013 followed by bills in 2019 that opened this state authority for all Texas cities to create a Tourism PID, including the City of Waco.

What is the secret to the success of these tourism public improvement districts? If you ask hoteliers that work with these districts, they will quickly point to its governance. The expenditure of all Tourism PID funds are closely managed by a non-profit board of the local hoteliers within the District in partnership with their area Convention and Visitors Bureau. These local hoteliers know better than anyone when their slow season is, the dynamics of a “shoulder season,” and what local events and programs have the capacity to have a meaningful impact on area hotel activity. And the Waco hoteliers will not feel pressure to spend the TPID funds unless there is a projected ROI that meets the board’s standard for investment of TPID funds. In the case of the Waco TPID, the criteria for spending TPID funds will require at least $7 in room nights for each dollar of TPID incentives. If the event turns out to have a lower ROI, the amount of any incentive award may be proportionately reduced. The marketing that is done by these tourism districts is also similarly measured and evaluated by the TPID Board of Directors.

In fact, eight percent of the TPID funds are reserved for research programs that measure the impact of the TPID marketing and incentive initiatives.

This research evaluates whether the TPID marketing and incentives had their projected impact in the number of visitors who were influenced to make a trip to Waco, the number of visitors who actually booked a Waco hotel room, how long they stayed, and the other area attractions that they visit while they are in town.

Todd Bertka, Director of the Waco Convention & Visitors Bureau, concurs with the need for the District. “The Waco Tourism Public Improvement District will be an important means to promote Waco hotels and tourism to the convention and event industry. There will be a 41 percent increase in Waco’s hotel product by 2023, and those hotel rooms will need to be filled with customers in order to support the hundreds of jobs they will generate in the Waco market,” said Bertka.

Waco will not be the only Texas city looking to create a Tourism District in the near future. The cities of Austin, Amarillo, Frisco, and Denton are actively pursuing local tourism districts for their areas and expect to have them operational within the next year. That being said, Waco will be the first of these cities to implement its District.

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And it could not be soon enough for the Waco area hoteliers. The organizers of the Waco TPID, and the Waco CVB which will administer the District, will be laser focused on retaining and growing local hotel occupancy to generate economic activity for Waco tourism and nontourism businesses alike. The hoteliers have been before the Waco City Council once to secure approval of the general format for the proposed Waco Tourism PID. Subsequent city council meetings will consider formal creation and implementation of the Waco Tourism PID. Target implementation date for the new district to begin is October 1, 2020. n

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by George Kelemen, President and CEO of the Texas Retailers Association

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rior to a few months ago, it never would have crossed your mind that the landscape and availability of retail as you know it would completely change, then the COVID-19 pandemic hit. On March 15, the Texas Retailers Association (TRA) issued the following statement on its website: TRA is actively engaged on being a key resource for retailers in Texas on how to manage through the increasing impacts of the Coronavirus. As we all know, the impacts so far include cancellation and/or postponement of large scale events such as the SXSW festival in Austin, and the Houston Livestock Show & Rodeo, in addition to companies restricting corporate travel and asking employees to work from home. The retail sector and TRA’s member companies have not gone without impact thus far. We are in close communication with our members so that we can be aware of measures they are taking to manage through this disruptive time.

Additionally, TRA is actively engaged with our national retail and food industry trade association partners to stay aware of everything that is happening related to the Coronavirus on an industry-wide basis, as well as at the federal government level. These resources, which are continually updated, are available on the TRA website.

Specific to Texas, TRA is coordinating with state and local authorities, to monitor actions that are taken at the state and local levels regarding the Coronavirus, as well as 16 | FALL 2020

serving as a resource where we are asked. It is our hope that the current disruptions and impacts related to the Coronavirus will be a temporary situation, but TRA is here to help Texas retailers get through this challenging time.

The good news for retailers in Texas is that TRA advocates every day for the retail industry at all levels of government. Therefore, our ability to pivot quickly to focus on helping our industry manage through the COVID-19 pandemic is the latest example of what TRA does for the industry and how effective of a voice TRA is for retailers across Texas. TRA represents companies and retail professionals who make up one of the world’s largest economies and provides them a voice in Austin and Washington, D.C., as well valuable membership benefits. Through TRA’s various initiatives we aim to improve the lives of not just retailers, but customers as well. By providing government advocacy, industry information and education resources and events, as well as supporting educational programs and scholarship funds, we ensure our members concerns are met and protected.

Over the subsequent months we have had to work like never before to ensure protections for the retail industry.

The sudden closures mandated by local and state government brought to light just how necessary it is to speak up, get involved with your industry association, and

assess your business needs. These unprecedented events showcased TRA’s deep relationships with and effectiveness in representing the retail industry with state and local officials who were taking swift actions that impacted retailers.

TRA was and continues to be actively engaged, functioning as a key resource for retailers in Texas on how to manage through the increasing impacts of the pandemic, new regulations, and ordinances. Specifically, we are keeping the TRA members continuously updated with as much relevant information as possible, through timely calls, blast emails, and by attending hearings, meetings and calls with legislators and agency officials to effectively represent the retail industry.

Additionally, TRA coordinates with state and local authorities, advocating for retailers and monitoring actions as well as serving as a key resource to state and local authorities who are continuing to make critical decisions for the communities across our state. Although the pandemic has been and continues to be our top priority, other priorities haven’t necessarily stopped during this time. In addition to our work on helping retailers manage through the COVID-19 pandemic, in late March TRA scored a major victory against

local Paid Sick Leave (PSL) ordinances. One-size fits all policies like these local PSL ordinances do nothing but create burdensome mandates for retailers, especially during the uncertain economic times we currently live in. TRA will use this legal victory to push for a statewide solution through legislation we will be pushing during the next session of the Texas Legislature in 2021.

Whether it’s helping retailers manage through the COVID-19 pandemic or through other issues, TRA’s goal is to keep Texas “retailfriendly” and ensure that legislative action is taken to protect business owners so that they can continue to employ hardworking Texans and serve communities across the great state of Texas. Since 1926, our diverse membership has represented every segment of the retail industry throughout Texas, we advocate for retail, and provide excellent discounted services and partner programs for our members. TRA is the voice of Texas retail and represent retailers ranging from mom and pop stores to large chain stores. Strength comes in numbers, and a strong voice is important to impact laws and regulations affecting retailers.n

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by Jill King, Owner/CMO, Bare Arms Brewing

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Photo by Sarah Gualtieri

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aco has a strong history of people perfecting their craft, from bridge builders, to soda makers to today’s craft breweries. The modern craft beer scene in Waco started when Bare Arms Brewing opened its doors in 2015. Today, Waco enjoys five craft breweries – Bare Arms Brewing, Balcones Distilling, Brotherwell Brewing, Southern Roots Brewing Co., and Waco Ale Company. A strong demand for craft beer exists in Waco. But, all five have been largely shut down this year due to the government’s response to the coronavirus, potentially spelling disaster for the industry. On July 20, the Texas Craft Brewers Guild (TCBG) stated that one in three breweries would close their doors due to the government-mandated shutdowns in less than three months. If the closures continue to the end of the year, like some predict, we will lose two in three breweries. Statistically, up to three of Waco’s breweries could be lost by the end of the year if mandates are not modified quickly.

In 2018, the breweries created the McLennan Pro-craft Forum to share and manage industry-specific regulations and continue to build the Waco craft beer culture. It quickly expanded to include other craft beverage manufacturers like distilleries, wineries, and kombucha producers. The forum was created because “A rising tide lifts all boats,” says Kevin Yackley, owner of Bare Arms. However, in recent months the tides have not been rising. The Pro-craft Forum has been collaborating on ways to stay afloat in the wake of COVID-19, unitedly encouraging craft beer lovers to Think Local Drink Waco and for restaurants to offer more local craft beers to keep Waco strong!

In addition, local breweries have turned to the TCBG for guidance.

“They have worked feverishly to help identify legal adaptations to the shutdown and have advocated at the state level for reasonable restrictions and freedoms during COVID-19,” says David Stoneking, co-founder of Brotherwell. Based on guidance provided by the Texas Alcoholic Beverage Commission (TABC), many breweries modified their licensed premises to exclude their outdoor patios so customers could use that space while practicing social distancing and adhering to mask ordinances and sanitation guidelines. It gave a way for customers to return, providing much-needed relief to breweries across the state. But five days later, the TABC issued an update to the closure mandate that breweries may not allow customers to consume alcohol on their premises, even if the area in which they are consuming the alcohol isn’t covered by the license.

Photo by Gonzalo Remy

In another adaptation, the TCBG petitioned the TABC to restructure the calculation of beer sales allowing breweries to separate their curbside and distribution sales (restaurant, bar, and grocery/liquor store sales) from taproom sales to help offset the 51 percent alcohol/food ratio calculation. Using taproom-only sales changes a breweries calculation making them more likely to be

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Photo by Julianna Arjes

considered a restaurant vs. a bar. “This requires additional paperwork and restructuring of our license – we are considering it, but this forces us to change our business model just to survive during the mandated shutdowns,” says Dustin Evens, general manager of Southern Roots. However, this helps very few breweries state-wide as most don’t serve food or serve food in greater numbers than they sell beer. Here in Waco, this is a viable option for Southern Roots and Waco Ale but unfair to the other breweries who do not sell food.

However, Southern Roots and Waco Ale would still need to sell more food than beer to open their doors. “This adaptation does not provide equality nor establish order in which a law is supposed to provide. Furthermore, it’s not the government’s job to pick winners and losers,” says Yackley. It’s also counter-intuitive for a brewery to be forced to sell an additional product in greater numbers just to enable their core product. So again, the TCBG tries to give breweries relief, but regulation hinders economic progress.

In May 2018, Texas Senate unanimously approved a bill continuing the operation of the TABC for the next 12 years. The bill called for a significant overhaul of the TABC code and the agency itself. The Texas Craft Brewers Guild fights for breweries’ rights to help guide this overhaul so that the government does not overreach and infringe upon freedoms.

However, with the onset of COVID-19, state government has thrown our industry back to Prohibition – restricting beer sales, increasing regulations, and adding higher surcharges.

If breweries don’t comply, they are threatened with fines, revoked licenses, and shutdowns through the TABC agency. During Prohibition, speakeasies became prevalent, and crime dramatically increased. “Where there is a vacuum, free enterprise will fill the void legally or illegally, and breweries would rather be on the right side of that argument,” says Brett Stewart, Owner of Waco Ale Company.

Waco breweries ask beer consumers and restaurants to buy Waco craft beer. Also, don’t forget to come by the breweries for curbside pickup to enjoy great beer at home. “Your efforts will help keep the Waco craft beer scene alive and hopefully one day return the rising tides,” says Thomas Mote, distillery manager of Balcones. And if you feel so inclined to support your local breweries further, visit craftpac.org/savetexasbreweries for an easy way to help. n

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225 S. 11th St. BalconesDistilling.com

806 Austin Ave. WacoAleCo.com

2515 La Salle Ave. BareArms.beer

219 N. 8th St. SouthernRootsBrewingCo.com

400 E. Bridge St. Brotherwell.com

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by K. Paul Holt, CentexAGC, President/CEO

Photo by Charles Deluvio

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A

community has been defined as a social unit with commonality such as norms, religion, values, customs, or identity.

Communities may share a sense of place situated in a given geographical area. In this instance, we will look at community as a social and economic entity, recognizing that we all share the same tax base. As our economic substructure grows, our cities and county benefit.

When local building contractors are hired for construction projects within the community, the benefit is significant on several levels! Local specialty or subcontractors are employed and supplies and materials are purchased from local vendors. It is estimated by Dr. M. Ray Perryman of The Perryman Group, that for every $1 of a $10 million construction project paid to a local contractor, it benefits $3.10 to the community. That means 68 percent of those tax dollars “churn” in the local economy after the general contractors receive payments. When an out-of-town contractor is hired, there is a decline of at least 35 percent in economic benefit to the local community.

There was a time when our Central Texas economy was agrarian, with farms, ranches and all the support services that go with them. Picture a “barn raising” where a farmer had been gathering the materials necessary to construct a huge storage facility for equipment, hay, feed, and animals. The entire community would come and spend the day helping one family achieve their dream of a new barn.

The ladies would prepare food for the crowd; children were assigned tasks; and draught horses would help hoist timbers into place. The framework would be assembled with delicacy and brute force.

No single individual or pair could achieve this fabrication. The community, working together, could easily make it happen.

These barn raisings achieved an almost festival-like atmosphere of an “all for one, one for all” spirit and helped create a stronger community and economy.

What is to be gained by hiring local contractors?

As a new company is moving into our area, there is a sense of familiarity and of community as its place of business is being prepared and it is integrated into the community more rapidly. It benefits from the pride of local constructors and are drawn into the local business community.

As local contractors work on site preparation and erection of the building, more is learned about the place that facility and its employees will have in our community. Conversations over coffee, meals, at church and at the grocery store spread the word of a new entry into our area.

The Greater Waco area is blessed to have a strong and vibrant commercial construction community as well. There is an array of general contractors, specialty contractors, suppliers and service providers offering services in the McLennan County MSA (Metropolitan Statistical Area). Construction firms make up 6.8 percent of the employment, according to the United States Bureau of Labor Statistics (BLS). While this number is a smaller percentage than government, education, health care, and retail workers, the construction industry supports each and every one of these other sectors.

The focus of this article is on “vertical” commercial construction, such as churches, schools, libraries, office buildings, industrial buildings, retail complexes, apartment complexes, and city and county buildings.

Two companion areas of construction are “horizontal” or road and bridge construction, and single family residential.

The CentexAGC is delighted to participate in this special edition of Greater Waco Business. The major turning point for supporting local businesses was borne from two city council sessions in December 2009. Commercial contractors packed the two work sessions to bring awareness to council members that local tax paying firms deserved an opportunity to construct buildings commissioned by tax supported entities. Procurement methods were being used that put the local folk at a distinct disadvantage.

Photo by Keith Kusler

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Photo by Charles Deluvio

THERE ARE THREE PREVALENT MYTHS WITH REGARD TO LOCAL VERSUS TRAVELING CONTRACTORS: Using a local contractor really does not make a difference to the local economy One of the main factors that helped the Greater Waco economy survive the 2008 economic meltdown was the passage of bond issues in 2006-07 by several scholastic and municipal entities. The economy was booming, and people felt that this was a good time to invest in their communities.

There were, however, organic issues that minimized the positive impact on the local commercial construction industry including the use of “hard bids” by municipalities to give out-of-town contractors an opportunity.

The local contracting community made it very clear that they were being impacted by the repeated hiring of “big city” contractors who did not always pay their subcontractors, and frequently ran up the tab with change orders. Neither of these practices were common by the folks at home. In many cases, deadlines were missed and projects ran over schedule. These delays cost the owner, and the final price paid was rarely the price quoted at the time of the bid.

One of the advantages of hiring locals is the pride in workmanship in delivering the project on time and on budget. A local firm’s reputation is at stake on each project.

An “out of town” general contractor will hire local subcontractors The Perryman study illustrated that local subcontractors may not always be hired. Some municipalities began to recognize this and began using Competitive Sealed Proposals (CSP) in lieu of the hard bid method.

This proposal method is graded on a points scale, where price is not the only factor considered. The general contractor lists specialty contractors to be used, as well as subcontractors and suppliers. The impact on the community can be measured.

In our area, the price quoted and accepted on a bid was final. With out of town firms, the quoted bid was often treated as a “starting” point, not the final price. The scope of work was not expected to change, just the price.

Local contractors cannot perform the same quality of work as “big city” firms One local school district official convinced their school board that local contractors could not deliver the quality of work that the school district deserved. The proactive outreach of a large group of local contractors made their case for quality performance. As a result, district officials changed their practices for more local contractor consideration.

Ironically, there was already a local example of a taxing entity who made sure that local bidders were aware of projects and encouraged them to bid. That was McLennan Community College (MCC), who had

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begun this practice in the 1990’s for all phases of purchasing, be it supplies, furniture or construction.

MCC utilized local design professionals, local contractors, and local suppliers to construction a number of LEED® (Leadership in Energy and Environmental Design) certified buildings following a $74.5 million bond passed in 2006. Three new buildings and a number of renovations took place to vastly expand the classroom space for the College.

certified Chamber headquarters in America. That made it very easy for MCC to commit to LEED® certified construction. The new Chamber headquarters resulted in a state award winning office as well.

To prepare the community for LEED® certified construction the CentexAGC brought in trainers to educate and qualify our contractors for LEED® certification.

In tallying the various general contractors, specialty contractors, subcontractors, and suppliers, it was estimated that almost 95 percent of the work at MCC was achieved by local firms. Science laboratory equipment had do be ordered from out of state, but all else was ordered through McLennan County suppliers, or at least Texas based suppliers.

For over a decade, MCC was already utilizing Construction Manager at Risk (CMAR) and Competitive Sealed Proposals to procure construction services. The results were state award-winning projects that more than proved local designers and contractor’s ability to perform at a very high and competitive level.

A new science building and the Michaelis Academic Center were certified as LEED® Gold, and the Emergency Services Education Center was certified as LEED® Platinum! Older buildings were retrofitted with energy efficient windows and solar power and LEED® certified as well. The Science and Emergency Service buildings won Outstanding Construction Awards from the Associated General Contractors – Texas Building Branch. These projects were in competition with projects from Austin, Dallas-Fort Worth, Houston, and San Antonio. Our local design professionals and contractors put Central Texas construction quality at the forefront of Texas. The Academic Building was recognized by the National Masonry Council as an award winner in its category.

Meanwhile, choices being made by the local school district in hiring out of town general contractors actually resulted in their students’ parents being unemployed because non-local contractors were hired.

LEED® Leadership in Energy and Environmental Design During MCC’s deliberations for campus expansion, the Board of Trustees was leaning towards embracing LEED® principles. As an educational institution, they felt it was important to set a positive example regarding energy savings and sustainability.

Simultaneously, the Greater Waco Chamber was planning to design and construct the first green-

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Fortunately, this tide has turned, and governmental entities recognize that the people who pay their taxes deserve the opportunity and privilege to construct new projects and renovate older ones. They also take pride in workmanship, of meeting deadlines, and sharing the project with friends and neighbors that enhances the relationships throughout the city and county. People at church and at the grocery store ask about progress and completion, inspiring them to meet those deadlines, and exceed them whenever possible.

There is also the importance of warranties on various systems such as HVAC, Plumbing, Roofing, and the like.

Why have one contractor perform work, and have another one perform the warranty work? Start local and stay local.

Welcome to Waco-McLennan County We welcome the new community members recruited by the Greater Waco Chamber. Greater opportunities to be involved in the construction of their facilities would be an added benefit to our economy. New jobs in the community are terrific and necessary to keep our economy growing. Enhanced maintenance of local businesses and industries would be a boon to our economy as well. Additional incentives for utilization of local contractors and suppliers could encourage this inclusion earlier in their integration into our community.

Local building contractors make huge contributions to the local economy on several levels. First, there is the impact of employing citizens, which includes payroll, benefits, employment taxes. There are the employees living expenses, such as housing, transportation, clothing, and many other expenses. Next, is the economic impact of purchasing building materials and supplies to construct those projects. We recognize that requirements are disincentives, but positive incentives can benefit even more folks.

Coronavirus Impacts Safety training, and efforts towards protecting our workforce have minimized the incursion of the novel coronavirus on our local jobsites. Thanks to best practices adopted by the local construction workforce Central Texas construction has been minimally impacted by absenteeism on the jobsite. Of course, there have been brief quarantines, and occasional positive testing workers, but the show has gone on.

Innovation and ingenuity created handwashing stations on jobsite. Wearing masks in transport vehicles protects workers from one another, and social distancing whenever possible prevents cross contamination.

Construction has been deemed “essential� by Southern governors and CISA, the Cybersecurity & Infrastructure Security Agency. CISA is part of the Department of Homeland Security.

By working strategically at the State and National levels and by providing educational and safety materials at the local level, we have persevered against the coronavirus.

This type of esprit de corps is the hallmark of our local construction community. Is this not the team you want working to welcome you into your new home? n

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by Todd Bertka, CDME Director, Waco Convention Center & Visitors Bureau

Have you changed travel plans this summer due to the pandemic?

You are not alone. According to surveys collected from Destination Analysts as of the end of July, 56 percent of travelers agreed that they will probably take a staycation this summer versus a vacation. And Waco is ready, when you are.

Touring in your hometown is the perfect opportunity to rediscover the Heart of Texas. Take in the beautiful natural parks, support our unique museums, attractions, and local shops. Check out the local cuisine. Treat yourself to a stay in a local hotel or B&B; hotel rates have not been this favorable in a long time. Learn why Central Texas has become a bucket list destination for millions of visitors from near and far. Take advantage of the shorter wait at restaurants and attractions while you can.

Where to start?

Cooler mornings are perfect for a game of disc golf, or a bike ride in Cameron Park or play a round of golf at the Cityowned Cottonwood Creek Golf Course, a great course for all ages and skill levels. Stroll the Riverwalk and take in the Doris Miller Memorial and the wonderful new zoo animal sculptures, or see some wildlife in the Cameron Park Zoo, Carleen Bright Arboretum, or at the Lake Waco Wetlands. Try paddle boarding or kayaking on the Brazos. Seek out the murals and sculptures that have popped up. Have a picnic at one of our neighboring state parks, Mother Neff and Lake Whitney State Parks are just minutes away. Go fish. Area lakes and rivers offer a variety of shady spots for a day of angling.

As a community, we are fortunate to have many one-of-a-kind museums and attractions. Think you’ve seen them all? Think again. All work hard to keep their experience ever evolving with new exhibits, expansions, classes, demonstrations, and events.

The Dr Pepper Museum, Mayborn Museum Complex, Texas Ranger Museum, Texas Sports Hall of Fame, Waco Mammoth National Monument, Homestead Craft Village, Armstrong Browning Library and Museum, Martin Museum of Art. Each of these can only be found in The Heart of Texas! You’ll be busy for days.

See for yourself why people flock to the world-famous Magnolia Market at the Silos.

The cupcakes really are that good! Be one of the first to see the new shops and grounds renovations. To get special offers for locals only text ‘WACO’ to 51404. Magnolia Table offers 20 percent off to locals on Wednesdays, and you can reserve your time online.

Have you taken a tour of Waco? Even native Wacoans can enjoy learning a little about the history of our city, and how it has grown. Waco Tours and Brazos Tours both offer driving tours, including stops at some neighborhood hotspots.

Waco Tours and Waco

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River Safari offer river tours. Brazos Bluffs Stables offers scenic horseback tours along the bluffs east of the Brazos River.

Go on a Waco foodie mission.

What has always made Waco special to Wacoans are our neighborhoods and the diverse culture they offer, and the dining options in each neighborhood are worth discovering!

Pick your favorite cuisine and try all the local options. BBQ? Who has the best ribs or sauce? Mexican food? Best queso, fajitas, or margaritas. You could spend months comparing breakfast, burgers, pizza, chicken fried steak, curry, desserts, and more. Waco’s dining options are becoming more varied, with Jamaican, Indian, Middle Eastern, and soul food all available. Several restaurants offer specials for locals. Look for deals on social media. Don’t forget the food trucks!

Wineries, craft breweries, and distilleries seem to be popping up all around. Some offer site tours. All offer a relaxing atmosphere. Balcones Distilling is known worldwide as one of the best craft whisky distilleries. Ask the wineries when you can participate in harvesting and stomping grapes.

Shop Visit your old favorites and check out some of the new. Waco has become a shopping destination for those who enjoy antiquing, collectibles, crafts, clothing, locally crafted jewelry, and art. You’ll want to make room in the trunk before heading out.

Watch for events in town like the popular “First Fridays” of each month featuring local artists and musicians and dining specials. Waco is home to some amazing talent. Venues are reopening, so be sure to follow safety guidelines and social distancing.

Need help navigating it all? There’s an app for that. Go to your app store and download the free Visit Waco TX app. It is available for Apple and Android devices and is updated almost daily with new events, restaurants, shops, and more.

Supporting local businesses, including attractions, dining establishments, shops, hotels, and artists benefits our community by boosting the economy, sustaining business, and jobs.

The Greater Waco Chamber of Commerce reports that the Leisure and Hospitality Business and Professional services are the fifth largest employer in the Waco MSA accounting for 10.1 percent of the area’s employment.

2019 TOURISM ECONOMIC IMPACT OVERVIEW I WACO MSA

• DIRECT VISITOR SPENDING $629.9 MILLION (UP 1.6%) • DIRECT EMPLOYMENT 6 THOUSAND JOBS (UP 3.1%) • DIRECT EARNINGS

In the past few years, $170.0 MILLION (UP 6.4%) Waco has been the recipient of a trifecta • TAX REVENUE of special designations $59.0 MILLION (UP 2.9%) awarded by the State of Texas: the Waco Downtown Cultural District, Film Friendly Community, and now Music Friendly Community. These designations indicate that the Heart of Texas wants to attract activity in these sectors and supports these important parts of the local economy. n

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In partnership with the Texas Restaurant Association and health officials across the State, restaurant owners and operators make a set of commitments to their employees and customers and earn the endorsement of the Texas Restaurant Promise during the COVID-19 recovery period. When customers see this endorsement, they can be certain that the restaurant is taking all necessary steps to protect their employees and customers and that they are taking a leadership role in protecting their community. The Texas Restaurant Promise also empowers customers to learn what they can do to help keep everyone safe. With restaurants and customers working together, we can make the restaurant industry as vibrant as it was prior to the impact of COVID-19.

The Greater Waco area is full of locally-owned restaurants. From burgers and fries to tacos to Asian cuisine, there’s something for everyone! For a full list of Greater Waco Chamber member restaurants visit ExploreWacoTX.com. We encourage you to eat well and eat often! n

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LEGAL MINUTE

by Teresa Schiller, Beard Kultgen Brophy Bostwick & Dickson, PLLC

W

ith limited resources in a constricted economy, business leaders are relying more on internal teamwork to get the job done. On any team, there is diversity -- a variety of strengths, weaknesses, viewpoints, tolerance levels, and levels of internal influence. This diversity may make good financial sense. It may help a business to develop goods and services that are more attractive to a variety of consumers, and to develop them more efficiently.

To promote diversity, certain federal laws – including the Americans with Disabilities Act of 1990, as amended by the ADA Amendments Act of 2008 (together, the “ADA”) – protect certain workers and impose requirements on certain employers. Here is some basic information about the ADA as it relates to private employers’ responsibilities toward their employees with regard to non-discrimination, non-retaliation, and non-coercion.

1. What is the ADA? The ADA -- along with myriad judicial and agency opinions interpreting it -- is broad and complex. The ADA, as written, is divided into five parts, or titles. Title I prohibits employment discrimination. Title II covers public services.

Title III addresses public accommodations. Title IV covers telecommunications. Title V discusses retaliation, coercion, and miscellaneous requirements.

Titles I and V are most relevant to private employers, as outlined below.

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2. What private employers are subject to the ADA’s non-discrimination, non-retaliation, and non-coercion requirements?

In general, the following private employers are subject to these requirements: (a) employers with 15 or more employees; (b) employment agencies; (c) labor unions; (d) certain federal contractors and subcontractors; and (e) certain employers who receive federal assistance.

3. What discrimination does the ADA prohibit?

The ADA requires private employers not to discriminate against any employee or job applicant (collectively, “employee”) because of any of the following: (a) the employee has a disability; (b) the employee has a record of disability; (c)

the employee is regarded as having a disability that is not minor, and that lasts or is expected to last more than six months (even if he does not actually have such a disability); or

(d) the employee has an association with a person known to have a disability.

Discrimination can occur as early as the job application process, and throughout employment. During the job application process, discriminatory practices can relate, for example, to (a) written job descriptions, (b) the selection of interviewees, (c) interview questions, and (d) pre-employment testing. During employment, discriminatory practices can relate, for example, to (a) hiring, (b) training, (c) testing, (d) manner and method of work, (e) compensation, (f) benefits, (g) advancement, and (h) termination.

Actions that may constitute disability discrimination are often grouped as follows: (a) “unfavorable treatment,” and (b) failure to accommodate.

First, the ADA helps to protect employees with disabilities from being treated unfavorably at work.

Unfavorable treatment may occur when an employee is treated unfavorably because of his disability. Examples of unfavorable treatment include (i) adverse employment decisions, and (ii) harassment so frequent or severe that it creates a hostile work environment. An employer can be liable for unfavorable treatment by supervisors and coworkers, as well as third parties, such as customers and vendors.

Second, the ADA helps to protect employees with disabilities by requiring their employers to provide “reasonable accommodations” under certain circumstances so that they can perform their work duties.

Reasonable accommodations may include, for example, (i) accessibility to work sites, (ii) restructured job duties, (iii) acquisitions or modifications of equipment, (iv) modifications of work schedules, (v) adjustment of training requirements, and (vi) reassignments to vacant positions.

Generally, an employee with a disability must ask his employer for an accommodation. The employee is expected to engage in an “interactive process” with his employer, if required, to discuss his disability and to help the employer determine what reasonable accommodation, if any, is appropriate under the circumstances so that the employee can perform the necessary work. An accommodation is not reasonable if it would pose an “undue hardship” on the employer. Undue hardship is determined on a case-by-case basis, and relevant factors include expense and the effect on a facility’s operation.

This is an example of a situation where it is helpful for employers to have written job descriptions describing duties and required attributes for all positions.

4. What is a “disability”?

A “disability” is (a) a physical or mental impairment that (b) substantially limits one or more (c) major life activities.

An “impairment” is a condition, disorder, or illness.

“Physical” impairments include blindness, diabetes, and missing limbs. “Mental” impairments include mental illnesses like depression, memory loss, Down’s Syndrome, and certain learning disabilities.

“Major life activities” include (i) activities such as standing, walking, thinking, and working, and (ii) the operation of major bodily functions.

Whether an impairment is “substantially limiting” can depend on a number of factors, including (i) how the impairment affects a person’s ability to perform a major life activity, as compared with most people in the general

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population, and (ii) whether federal regulations relating to the ADA identify a particular impairment as one that should easily be concluded to be a disability, such as a mobility impairment requiring the use of a wheelchair.

5. Are all employees with disabilities eligible for ADA protection?

No. Employees with disabilities must be “qualified individuals” to be eligible for ADA protection. A qualified individual (a) meets a job’s general requirements, and (b) can perform the essential functions of the job, with or without a reasonable accommodation.

The “general requirements” of a job may include certain (i) physical or mental abilities, and (ii) health or safety requirements, to the extent actually required by the job to be done. “Physical abilities” can include the ability to lift a certain amount of weight. “Mental abilities” include the ability to type or use good judgment. “Health and safety requirements” are intended to prevent an employee with a disability from harming himself or others.

“Essential functions” are fundamental job duties. For instance, an essential function of a computer programmer is to write computer programs. For ADA purposes, a computer programmer must be able to write computer programs, with or without reasonable accommodation.

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6. What retaliation and coercion does the ADA prohibit?

Regarding non-retaliation, the ADA requires private employers not to discriminate against any employee (with or without a disability) for complaining about an act that is unlawful under the ADA. Regarding non-coercion, the ADA requires private employers not to threaten or interfere with any employee’s exercise or enjoyment of his rights under the ADA. In conclusion, this overview of ADA requirements regarding non-discrimination, non-retaliation, and noncoercion may help private employers to be more mindful of their treatment of employees with disabilities – a group that adds valuable diversity to business teams. Please note that this is a complicated and nuanced topic which changes regularly and often offers no clear answers. Further consultation and thought on any specific instance often is advisable. n

Teresa Schiller is a business and employment lawyer at Beard Kultgen in Waco and Dallas. Teresa can be reached at schiller@thetexasfirm.com.

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PUBLIC POLICY

SMALL BUSINESSES ARE THE HEART OF WACO

by Jessica Attas, Vice President of Public Policy, Greater Waco Chamber

S

mall businesses are the backbone of the American economy and the heart of American communities.

According to the U.S. Small Business Administration (SBA), in Texas there are 2.7 million small businesses employing 4.7 million Texans- more than 45 percent of the state’s private sector workforce. In our Congressional District, TX-17, according to the SBA’s newly released U.S. 2020 Small Business Profiles, 92 percent of businesses are small businesses and 48 percent of the workforce are small business employees.

Small businesses create jobs for people who in turn spend throughout the community. As noted in the article by local famed economist Ray Perryman, every dollar spent locally has broad impacts through the economic system. With the Chamber’s membership predominantly comprised of small businesses, we are especially aware of the challenges our small businesses face, and how those challenges can be overcome.

When businesses can’t open or must operate at reduced capacity, how can we still ensure dollars are spent locally, so that businesses may keep their doors open and their people employed? One answer may be in robust digital technology.

COVID-19 has had a significant impact on local businesses and forced both small and large companies to pivot and innovate. In response to the health and economic crisis, American ingenuity has been unleashed, in businesses large and small. Interestingly, digital tools and online marketplaces made possible by “big tech” have supported this adapting we’ve seen in many smaller businesses. Tech companies like Google, Apple, Zoom, Microsoft, MailChimp and Facebook have rolled out tools to offer small businesses a lifeline in an unpredictable environment- not to mention platforms to keep us all connected during these uncertain times. Free and low-cost tools like digital advertising, analytics, online marketplaces, e-commerce platforms, delivery/ordering apps, and others, have allowed our businesses to keep their doors open by providing flexibility to continue operations online.

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Many tech companies are offering small businesses expanded access to email and cloud storage, facilitating communication with customers through search and advertising solutions, and even offering direct cash assistance and microgrants to small businesses. While “big tech” often faces criticism, the role the industry is playing in keeping American businesses open and running, and Americans connected to one another, is critical.

Google continues to introduce tools and initiatives to serve businesses through COVID-19, and it recently announced that they are making shopping listings free for merchants. Through grants and ad credits for small and medium sized businesses, Google is working to support retailers and the e-commerce industry through the COVID-19 crisis and beyond. Similarly, Facebook has also announced $100 million in grants and ad credits for small businesses to help lessen the burden. We certainly encourage all our local businesses to pursue these and other similar opportunities.

As we all faced the challenges of the shelter-in-place orders, and continued limitations on capacity, small businesses throughout the state and community, from restaurants to retailers to service providers and beyond, were able to adapt and keep their doors open because of the federal funding supports, state policies such as shared work programs, and importantly, because of their access to critical digital tools.

Technology is enabling small business to meet consumers where they are – often online (or curbside). As Texas Land Commissioner George P. Bush commented in the webinar, The Tech Forward Webcast: How Technology is Fueling the Texas Recovery, “technology can unlock opportunities for small businesses,” noting that entrepreneurs now have new strategies for reaching out to customers and clients. We have seen a shift in the business models of nearly every industry as they work to serve clients and customers. From grocery shopping to virtual gatherings and online collaboration,

technology has built resilience for businesses that will likely have a lasting impact on how our economy functions post COVID-19.

Local and state governments are facing tough decisions related to budget matters, reduced sales tax revenue, and meeting the needs of citizens and business community in the future. As Comptroller Hegar noted in his July update, while Texas sales tax remittance is down, it has been offset and “buoyed by increased online shopping.� Digital technology and robust technology infrastructure can provide critical lifelines to support small businesses through these difficult times to be able to participate fully in the digital marketplace. This also bolsters sales tax revenues necessary for local services and infrastructure.

Small businesses bring growth and innovation and local character to our community. Your Chamber is working to ensure policies and programs are in place for our business community to thrive. We look forward to reconvening and gathering with our members as soon as it is safe to do, and in the meantime, are grateful for access to the virtual space and technological infrastructure to continue our work and do business locally, online. n

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ON THE MARKET

210 S. 5th St. Retail / Office

Specifications: • 210-212 S 5th St. • 10,676 Square feet • Built in 1913, renovated in 2017 • Excellent frontage in the heart of downtown between River Square and the Silo District • Great Walkability and Nearby Public Parking • Ongoing business within property • 21,000+ vehicles per day • Asking price: $1,300,000 / $121.77 psf • Listed by: Gregg Glime, Coldwell Banker Commercial Jim Stewart, Realtors; 254-776-0000

210 S. 5th St. Population (20-Minute Drive Time) # of Households Median Age Average Household Income

197,199 55,576 32.9 years $70,584

Labor Force (20-Minute Drive Time) 93,866

Employed (Feb ‘20) 90,754 Unemployment Rate (Feb ‘20) 3.15% Top 5 Industries (5 Mile Radius) Healthcare and Social Services Other Services Retail Banking, Finance and Insurance Accomodation and Food Services Education (20-Minute Drive) Graduate Degree Bachelor Degree Associate Degree Some College (No Degree) High School/Equivalency Degree No Degree

Establishments % 1,423 21% 751 11% 631 9% 618 9% 475 7%

Employed 16,588 4,541 5,888 3,605 8,457

Count Attainment 10,618 8.3% 17,974 15.0% 11,161 9.3% 26,152 21.8% 32,986 83.3% 21,339 17.8%

Source: Info USA, Applied Geographic Solutions 2020

For more information on available properties, including demographic reports and surrounding businesses in Greater Waco, visit WacoProspector.com or call (254) 757-5627

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MARKET REPORT

Tractor Supply Co. Industry: Distribution Market: National

Tractor Supply Co. will construct a new trucking entrance to its Waco distribution facility. The project will be a $9 million capital investment and retain its 400 current employees. This new trucking entrance will stem off of Bagby Avenue.

Texas Meter & Device Industry: Manufacturing Market: National

Texas Meter & Device has announced the construction of its new corporate headquarters in Waco. This project will involve a $3.5 million capital investment with the construction of a 50-70,000 square foot headquarters and assembly center. TMD will retain 60 jobs at its new facility.

Aspen Custom Trailers Industry: Manufacturing Market: National

Aspen Custom Trailers, a Canadian trailer manufacturer, will construct its first US operation in Waco, TX. The company will invest $11.27 million in the construction of a 70,900 square foot facility, creating 79 new jobs in the community.

Ryonet Corporation Industry: Manufacturing Market: National

Ryonet Corporation, a screen printing supply manufacturer, will consolidate its US Distribution center from Kansas and Georgia to Waco, TX. Its new 35,000 square foot facility will have 10 employees initially with plans to grow in the future.

Laminate Technologies Industry: Manufacturing Market: National

Laminate Technologies, a custom laminate panel and fabrication manufacturer, will relocate its Texas production facility to Waco. The company will invest $4 million into a new 50,000 square foot facility.

It plans to create 40 jobs by 2021.

FALL 2020 2018 42 | WINTER

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ECONOMY IN FOCUS

UNEMPLOYMENT RATE JULY 2019

3.7%

126,660

10.5% 8.0% 6.5%

126,324

4.0% 3.7%

UNITED STATES

JULY 2020

UNITED STATES

TEXAS

TEXAS

LABOR FORCE 130000 125000 120000 115000 110000 105000

LABOR FORCE JULY 2019

WACO MSA

JULY 2020

WACO MSA

SOURCE: BUREAU OF LABOR STATISTICS

TOP 5 TEXAS METROS WITH LARGEST INCREASE IN MANUFACTURING JOBS Waco Austin / Round Rock El Paso Fort Worth / Arlington Amarillo

900 700 400 300 200

5.9% 1.1% 2.5% 0.3% 1.5%

GREATER WACO IS LEADING TEXAS CITIES IN JOB CREATION IN THE MANUFACTURING SECTOR

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CHAMBER NEWS

WACO ISD PRESENTS GREATER WACO CHAMBER WITH THE WACO ISD AWARD FOR OUTSTANDING COMMUNITY PARTNERS We are proud to announce that we have received the Waco ISD Award for Outstanding Community Partners in August for our LEAD and Leadership Waco programs.

In the 2019-2020 school year, nearly 100 students from Waco High and University High participated in LEAD. Twelve 2020 graduates from both high schools were awarded scholarships through their participation in the LEAD program totaling $53,000.

We have also had several Waco ISD leaders participate in our Leadership Waco program. Dr. Rachelle Warren, assistant superintendent for student services and support, will join the newest class. Thank you, Waco ISD for this award! We are proud of the work we do to build the leaders in our community! n

NEW PROGRAM DESIGNED TO CONNECT JOB SEEKERS AND EMPLOYERS Launching earlier this year as part of the Find Your Waco initiative and aligning with the talent portal WacoTxJobs.com, the Jobs Spotlight Series is designed to highlight area employers with a need for talent and connect them with local job seekers. This virtual event features hiring representatives from local organizations who discuss current job openings, the skills and experience required to apply, benefits offered and tips to complete the application process. To date, we have hosted more than 50 local employers and the video archives have received more than 500 views. To learn more about the series and access the archives, visit wacochamber.com. n

GREATER WACO CHAMBER PARTICIPATES IN #WACOSAFE Over the summer, nearly 20 #WacoSafe murals popped up all over Waco. In addition to beautifying our community, they served as a reminder to locals and tourists to stay safe. The Greater Waco Chamber partnered with Creative Waco to bring one local artist’s vision to life. Cade Kegerreis braved the Texas heat and created a mural recognizing the frontline workers who are supporting our community during this time. We are proud of the work he has done and the message it sends! n

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Greater Waco is a special place. A community where phrases like “collaboration,” “working together,” and “helping each other” are far more than words. They define who we are and how we act. We are so proud of our community. There are heroes among us. Ordinary people working through extraordinary and challenging times for the betterment of all. As we move to reopen our economy, let’s continue to show the world the Waco way.

Take care of each other and support our local businesses and their employees.

acoans have always pulled together during tough times. That’s what a group of downtown-area merchants had in mind when they envisioned the “All in for Downtown” campaign, intended to help reverse some of the economic effects of the pandemic. We’re asking you to join us in this effort!

Downtown Waco Biz Bucks t the center of the campaign is a voucher program designed to push locals to small, locally owned businesses in the downtown, uptown, East Waco and La Salle areas.

Participating businesses will be listed on AllinforDowntownWaco.com, where consumers will buy “Downtown Biz Bucks” vouchers that cost $5.00 apiece and have a redemption value of $10.00. Partner organizations will underwrite the cost difference, helping to drive dollars into the economy immediately.

The program will run from September 8 to November 15, 2020.

It’s a win-win for local shoppers and businesses!

ARE YOU

IN?

Partners Greater Waco Chamber of Commerce Downtown Public Improvement District CenTex African American Chamber of Commerce CenTex Hispanic Chamber of Commerce City Center Waco Startup Waco City of Waco

If you’d like more information on how to participate, please visit:

AllinforDowntownWaco.com

THE GREATER WACO CHAMBER KICKS OFF THE 2020 COLLEGE FOOTBALL SEASON In August, we hosted our annual Kick Off Luncheon, virtually. The event featured an engaging conversation between John Morris, Baylor University’s new Head Football Coach, Dave Aranda, and Baylor’s Senior Associate AD, Austin Thomas.

We heard about expectations for the upcoming season and Coach Aranda’s plan for the future of the Baylor Football program. We will host the annual Tip Off Luncheon later this year and the First Pitch Luncheon in early 2021.

Thanks to our presenting sponsor, Walk On’s Bistreaux & Bar, our gold sponsors, Baylor University, TFNB – Your Bank for Life, Texas Farm Bureau Insurance and Baylor Bear Sports Properties, our silver sponsors, Automatic Chef Canteen, First National Bank of Central Texas, JRBT, Ascension Providence and Pattillo, Brown & Hill, LLP and our bronze sponsors. n

2020 TRC LAUNCHES WITH A KAPOW! Due to the COVID-19 situation, we postponed the start of our annual Total Resource Campaign. The 2020 TRC kicked off in early September with a group call and fun to be had by all. We’re excited to announce that our theme this year is Super City and our fabulous team of volunteers are working on behalf of the Chamber in our community and securing additional support for our economic development efforts. Watch our kick off video at youtube.com/GreaterWacoChamber and look for our wrap up in the coming issues of Greater Waco Business. n

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CHAMBER NEWS

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MEMBER NEWS

DIVERSIFIED PRODUCT DEVELOPMENT BREAKS GROUND ON NEW HEADQUARTERS Diversified Product Development, marketer of the LineWise, LiftWise and DesignWise brands, has broken ground on a new headquarters and production facility in Waco, Texas.

The 60,000-square-foot building, which is scheduled for completion in January 2021, will replace the company’s current facility in Waco, Texas.

Diversified currently employs approximately 60 people, including engineers, designers, sales and support staff, with plans to hire additional workers after moving into the new facility. “Each of our divisions has experienced steady growth over

the years, and this new facility will better meet our needs,” said Ray Fritel, president of Diversified. “Plus, it opens up exciting new opportunities for our company.”

For more information, visit the website at www.diversifiedproduct.com. n

WACO TOURS RIVER CRUISE RANKED #1 BY USA TODAY “2020 BEST BOAT TOUR IN NORTH AMERICA”

In August, the Editors of USA TODAY 10 Best announced that Waco Tours River Cruise is ranked #1 in the category of “2020 Best Boat Tour in North America.”

A panel of travel experts partnered with USA TODAY 10 Best editors to pick the initial top 20 nominees, and the top 10 winners were determined by popular vote.

Waco Tours co-owner David Ridley shares, “We are beyond excited to be awarded this title! When we were creating this experience, we wanted to pioneer an excellent cruise that was relaxing, luxurious, informative and peaceful. Our staff is what put us at the top - they are hospitality experts, they value every guest, and provide inspirational fun.”

Waco Tours was started in June of 2016 by David Ridley and Luke & Rachel Whyte, initially running their first tour experience, their Classic Tour, on Mercedes Benz vans to showcase a little bit of all of Waco with its history, homes from the TV show, and hidden gems.

They have since hosted over 72,000 guests and have over 3,700 excellent TripAdvisor reviews, more than any other attraction in Waco. They are honored to be ambassadors for their city, to pioneer excellent hospitality experiences, and value every person they meet. n 50 | FALL 2020

WACOCHAMBER.COM

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MEMBER NEWS

AMERICAN BANK ANNOUNCES PROMOTIONS AND NEW ADDITIONS

American Bank recently announced several promotions and new additions, adjustments that focus on maintaining excellent customer service and providing Face to Face Banking for all customers, a hallmark of the Bank’s vision. The promotions recognize the expertise of existing employees of the Bank while the new hires provide an expanded base of talent in the areas of Commercial Lending, Business Solutions, Compliance and Information technology.

Promotions:

VANTRAN TRANSFORMERS MAKES INC. 5000 LIST Inc. magazine ranked VanTran Transformers #2249 on its 39th annual Inc. 5000, the most prestigious ranking of the nation’s fastest-growing private companies.

The list represents a unique look at the most successful companies within the American economy’s most dynamic segment— its independent small and midsized businesses.

Earning their first national exposure as honorees of the Inc. 5000 award were companies such as Microsoft, Dell, and LinkedIn. In addition to the national recognition, VanTran also received state recognition by making the Inc. 5000 Series: Texas list earlier this year. VanTran is ranked #137 for one of the fastest growing companies in the state of Texas.

“Being included in the Inc. 5000 reflects the tireless effort since 2016 by our entire team who saw the opportunity to take a 57-yearold business and jump start it with new energy. I am especially proud to have accomplished this with an established business in a mature industry. We have gone through exceptional growth and are very fortunate to be honored with this award,” remarked Don Bolin, CEO of VanTran.

Not only have the companies on the 2020 Inc. 5000 been very competitive within their markets, but the list as 52 | FALL 2020

a whole shows staggering growth compared with prior lists as well.

The 2020 Inc. 5000 achieved an incredible BOLIN three-year average growth of over 500 percent, and a median rate of 165 percent. The Inc. 5000’s aggregate revenue was $209 billion in 2019, accounting for over 1 million jobs over the past three years.

Headquartered in Waco, Texas, VanTran provides distribution transformer solutions for industrial, petrochemical, transportation, renewable, and utility markets where short delivery cycles and on-time delivery are critical for project success. VanTran has been a part of the Waco community since 1973, and a Waco Chamber of Commerce member for many years, employing around 100 people locally, and delivering products both domestically and overseas.

VanTran also supports our Texas economy by procuring many of its goods and services locally. The company is known as the leader in the industry for custom and specialty transformers and is growing at an unprecedented rate. n

• Tonya Malcom – Executive Vice President, Director of Operations • Jordan Barry – Senior Vice President, Manager of Credit Department • Nick Deaver – Senior Vice President, Commercial Lending • David DeLeon – Vice President, Manager of Information Technology • Kristy Owens – Vice President, Assistant Manager of Loan Operations • Allyson Blackman – Assistant Vice President, Commercial Lending • Matthew Reeser – Banking Officer, Commercial Lending • Alicia Lansdown – Assistant Vice President, Customer Care Center and ITM Manager • Kelly Moss – Assistant Vice President, Assistant Cashier • Brian Birkes – Security Officer • Stormi Hegefeld – Banking Officer, Customer Care Center New Hires: • Clif Lamar – Executive Vice President, Chief Information Officer • Mark Arias – Vice President, Commercial Lending • Suzanne Newell – Vice President, Business Solutions Consultant • Logan Vick – Vice President, Commercial Lending • Alison Ragsdale – BSA and Compliance Officer These contributions of these team members span all American Bank locations – Downtown, Central Operations, the Plaza, the new Woodway branch, and Bellmead, where a state-of-the-art Drive-Thru area opened last month. Construction of a new building in Bellmead is also underway with expected completion in Summer 2021. n

TFNB YOUR BANK FOR LIFE WINS TOP STATEWIDE BEST OF COMMUNITY BANKING AWARD The Independent Bankers Association of Texas (IBAT) recently honored TFNB Your Bank for Life with Best of Community Banking (BOCB) Awards. The bank received both a Gold Eagle and the “Best of Show” award, which is the competition’s top honor, for its community service program, Charity Champions.

TFNB created Charity Champions six years ago in celebration of its 125th anniversary. To recognize this milestone, bank leadership wanted to do something special for the community that would create an everlasting way to help those who help others on an ongoing basis—one of TFNB’s core values. From that vision, Charity Champions was born. Every year, six Central Texas nonprofits are chosen as Charity Champions. These worthy organizations are nominated by the community, and TFNB employees vote to select that year’s recipients.

Champions then receive a full marketing awareness campaign, leadership development training and a team of interns all at no cost.

visibility to more than 500,000 people.

Additionally, they receive fully produced videos, commercials, and podcasts by the TFNB creative team. Lastly, throughout the year all past and present Champions receive world class Leadership and development training, from TFNB partner 360 Solutions.

“TFNB loves Central Texas and understands that it’s people who matter the most,” says TFNB President and CEO David Littlewood.

“It was our mission to establish an ongoing way to lift up and give back to our community. Charity Champions has been built around those ideals and from our perspective, we’re just getting started!” n

The TFNB/Charity Champions initiative has recognized 43 non profits in its first seven seasons. Through several different media outlets, digital channels, social media and Baylor athletic events, each Champion has WACOCHAMBER.COM

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NEW MEMBERS

PRESENTED BY

Amelia’s Fashion Exchange 2452 W. Loop 340 Waco TX 76711 (254) 662-1000 Myamelias.com

Greenhouse Marketplace 6501 Airport Rd. Waco TX 76708 (254) 717-3069 Greenhousemarketplace.com

Maynard CPA, PLLC 1101 Wooded Acres Drive Waco TX 76710 (254) 572-8676 Maynard-cpa.com

Data Center Solutions (214) 616-8422 Data-cs.com

HOTWORX 10020 Sailboard Dr. McKinney TX 75072 (254) 300-5024 Hotworx.net/studio/wacocentraltexasmarketplace/

Noble Leadership Solutions (432) 214-5862 Nobleleadershipsolutions.com

Dollar Store & Cafe 1223 N. 18th St. Waco TX 76707 (214) 909-3369 Down To Earth Technology 10124 Saddle Creek Rd. Waco TX 76708 (254) 523-4304 Downtoearthtech.net Farmers Insurance District Office - Brandon Parks 213A Old Hewitt Rd Waco TX 76712 (254) 776-2454 Farmersagent.com/bparks3

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Kirby-Smith Machinery 415 Enterprise Blvd.

Hewitt TX 76643 (254) 261-1370 Kirby-smith.com Laminate Technologies 1001 W. Loop 340 Waco TX 76712 (936) 829-0079 Lamtech.net LL Sams Historic Lofts 2000 S. 1st St. Waco TX 76706 (254) 755-7267

The Mediation Practice 4126 Evergreen Cir. Waco TX 76710 (856) 524-3464 CaroleGoldstein.com University of Phoenix 4025 S. Riverpoint Pkwy Phoenix AZ 85040 Phoenix.edu Wolf Manufacturing Company 1801 West Waco Drive Waco TX 76701 (254) 753-7301 Wolfmfg.com

PRSRT STD US POSTAGE PAID PERMIT NO. 30 Waco, Texas P.O. Box 1220 Waco TX 76703-1220