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Friendswood Gets Creative

Economic development professional guides growth.

By Karen Hudgins

Editor’s Note: The following article appeared in the April 2008 issue of Texas Rising.

As Friendswood’s economic development coordinator, Karen Capps helps shape projects that will bring in new jobs and businesses.

The town of about 34,000 residents ranked as one of the country’s “Best Places to Live” in Money magazine and CNN/Money’s 2007 list. Primarily a residential community, the city has its own unique set of challenges. While about 545 Texas cities fund economic development projects through either a Section 4A or 4B economic development sales tax. Friendswood does not have either tax as a revenue source.

Friendswood does have Chapter 380 of the Local Government Code, which lets cities provide grants and loans of city funds or services to promote economic development. In 2002, the city adopted its municipal grant program and has since awarded the following economic incentive grants:

• A $50,000 grant in June 2007 for the expansion of two businesses – Dr. Ronald Baden’s medical practice and Memorial Hermann Imaging Center. Both will be part of a proposed 28,940-square-foot Medical Wellness Center, a $4.9 million project.
• A $100,000 grant in October 2007 for the development of Home Town Center, a mixed-use development downtown.
• A $30,000 grant in January 2008 to Crystal Creek Developers for a mixed-use commercial project.

Friendswood Mayor David Smith credits Capps’ tireless efforts behind projects like these.

“Karen’s just been outstanding when it comes to keeping the big picture in mind and keeping to the goals of the city that have been developed by the council and volunteer committees,” says Smith.

Capps says a Chapter 380 Agreement allows cities to compete when they don’t have an economic development sales tax. “These three grants will produce $16 million in additional taxable values, 111,330 square feet of new development and create or retain about 70 jobs, which will in turn help improve our local economy.”

For resources on using Chapter 380 Agreements, contact the Comptroller’s Local Government Assistance and Economic Development Division at (800) 531-5441, ext. 3-4679.