Community Profile

Katy Area, Texas

Katy Location

• Southeast Texas
• 20 Miles West of Downtown Houston, Texas
• Latitude: 29°47′33″N, Longitude: 95°49′21″W
• Central Time Zone
• Suburban
• 181 Square Miles
• Part of the Houston-MSA
• Major Part of Energy Corridor
   

The Katy Area, a rapid population growth center located west of Houston, enjoys the benefits of being part of the Houston Metro area. Katy offers a quality suburban atmosphere, "small town" lifestyle, and an energetic talent base for quality companies. Katy's location is key for many businesses located here. Some features of the Katy Area include:

• Part of the Houston Metro Area, the 4th largest city in the United States, featuring a suburban and small town atmosphere and lifestyle
• Well educated, talented workforce with high educational attainment
  • Large white collar, world class, workforce
• Contains a major part of the acclaimed Energy Corridor
• Award winning, acclaimed, K-12 public education system
• 181 square miles in 3 counties: Fort Bend, Harris, and Waller
• Great transportation access:
  • Highway: I-10, Grand Parkway, Westpark Tollway, Katy Tollway
  • Intercontinental (International) Hub Airport – 45 miles,
  • Hobby Airport – 45 miles
  • Houston Executive Airport (General Aviation)
  • Union Pacific Rail - Branch Line
  • Port of Houston – 35 miles to Turning Basin, Three Other Ports in the Houston Area

• Diversified economy strong in corporate headquarters, energy services, engineering, medical,  distribution, and retail sectors
• Moderate climate, award winning master planned communities, housing costs well below the national average, low cost of living, and excellent quality of life
• Quality, available, industrial, and office buildings, and sites
• Available tax and non-tax incentives, training grants, and low-interest financing

Population and demographics in the Katy Area are strong and booming.  Katy is home to a diverse, family oriented, and a highly educated population.

World-class business leaders such as BP America, Conoco Phillips, Igloo, Mustang Engineering, and Shell Oil North America are headquartered in the Katy Area and enjoy a high level of employee productivity.  Additionally over 150 companies headquartered here.  The energy services sector is strong in the Katy Area; however, other strong economic sectors include: wholesale trade, plastics and advanced materials, service, and retail.  Business expansions and new projects in Katy are booming!

Major New and Expansion Projects

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Katy Area (Katy ISD) Economic Sectors 2008

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New & Expanding Industries

The Katy Area offers employers a growing, energized, and world class talent and workforce base with high educational attainment.  A majority of existing employers rate the Katy Area workforce as available, high quality, productive, and available at a reasonable cost.

Availability:

• 1,564,567 civilians employed * (2008)
• Average Unemployment Rate, 3.86%, 94,107 unemployed * (2008)
• Manufacturing Employment: 167,213 * (2008)
• Engineering, Research, and Accounting workers: 105,928 * (2008)
• High Workforce Participation Rate in KISD: 70.17%

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 *Within a 30 mile radius of The City of Katy

 Quality

•  In 2007, 25 major employers; representing 15,000 workers, were interviewed and rated the Katy Area workforce characteristics.  Employers rated Katy employees high in productivity, reliability, attitudes, and teamwork skills.

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• The Katy Area has a very low union presence, with a low percentage of unions in the industrial and office workforce.  The Houston Area has a low unionization rate of less than 5%.  Texas is also a Right-to-Work State.

Cost

• Highly Educated

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The Katy Area offers excellent access to all modes of transportation including Interstate 10, the Port of Houston and 3 other ports, two commercial airports, and a new general aviation airport.

Highways

• Interstate 10 - Number of Interstate Exits: 13
• Interstate 10 - Number of Interstate Entrances: 12
• Interstate 45 - 16 Miles
• State Highway 99 (The Grand Parkway)
• The Katy Tollway
• The Westpark Tollway
• FM 529, FM 1463, FM 1093

Ports

The Port of Houston ships cargo to 200 ports around the world. Katy Area companies have easy access to the Port via Interstate I-10. The Port’s turning basin facilities are only 35 miles from industrial sites.

• Ship Channel Depth: 45 feet
• Ship Channel Width: 530 feet
• Other ports that serve the Katy Area include Freeport, Galveston, and Texas City

 Motor Freight

• 1,174 Carriers serve the Houston MSA
• Katy has a major terminal of Knight Transportation

 Commercial Air

• George Bush Intercontinental (HUB): 45 Miles
  • Number of Airlines: 17
  • Over 43 million passengers served in 2007
  • Nearly 700 daily departures
• Hobby Airport: 45 Miles
  • Number of Airlines: 5
  • Over 8.8 million passengers served in 2007
• Air Cargo
  • Number of Air Cargo Airlines: 13
  • Handled more than 837 million pounds of Cargo in 2007

 General Aviation

• Houston Executive Airport (6,600 Feet of Runway)
• 2,000 acre development with 500 acres available for aviation operations
• West Houston Airport (4,000 Feet of Runway)

 Rail

• Union Pacific Service - Branch Line
• Miles of track in the Katy Area: 10.7 Miles
• Intermodal Centers located within 20 Miles
• Major products moved in the Katy Area: Aggregates, Plastics, and Lumber

 Post and Parcel

• New US Postal Annex in the City of Katy
• Served by major carriers such as FedEx, UPS, DHL, and Texas Carrier Lonestar

 Public Transit

• Houston Metro Transit
  • Three Park and Ride Locations Located in Katy
• Colorado Valley Transit
  • Contract Based Service with Employers Serving Waller County
• Energy Corridor

The Katy Area local governments, protective services, and agencies are pro-business and provide quality protective services to residents and businesses.

Harris County Precinct 3
Road & Bridge, Parks, Hike & Bike Trails, Community Centers

Police Protection

• City of Katy: 43 Officers, 16 Civilian Employees, and three K9 Partners
• Katy ISD: School oriented, 27 peace officers, and seven support personnel
• Harris County Sheriff’s Department: 4,000+ employees, 180 Deputies who serve the Katy Area
• Harris County Constable, Precinct 5: 34 deputies serve Katy area .
• Fort Bend County Sheriff’s Department:  Employ 621 persons and provide two to three patrol units at a time in the Katy Area.  In some areas patrol units patrol 24 hours a day, 7 days a week
• Constables:  Serve county subdivisions and homeowners, 51 Deputy Constables serve the Katy Area
• Waller County Sheriff’s Department: 36 deputies, and five investigators

Fire Protection 

• City of Katy:  Full time department with over 50 employees
• Class 2 ISO rating
• Emergency Service Districts (ESD):  Numerous volunteers in ESD districts throughout Katy provide fire protection services and emergency medical services ISO Ratings vary according to jurisdiction

Local Government 

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Other Services

Libraries:  

• Fort Bend County Cinco Ranch Library:  80,000 Collections
• Harris County Library-Katy Branch: Collections: 74,712
• Harris County Library-Maud Marks Branch: Collections: 92,891
• Harris County Library-Katherine Tyra Bear Creek Branch: Collections: 84,322

The City of Katy and Utility Companies in the Katy Area provide reliable, reasonably priced utility service to residents, businesses and industry.  The City of Katy has received awards for the past 20 years for its acclaim as a Superior Water System in the State of Texas.  Areas located outside the City limits are served by Municipal Utility Districts (MUD’s) which are public boards appointed to operate and manage public infrastructure for major development areas such as Master Planned Communities.  MUD’s are regulated by the Texas Commission on Environmental Quality (TECQ).  Fire protection is provided for businesses by overhead and ground storage tanks.

Electricity

• Deregulation in effect
• Local Distribution Company: CenterPoint Energy
• Voltage Available in Industrial Areas
  • Transmission: 138,000 Volts
  • Distribution: 34,500/19,000 Volts - 3 Phase
• Numerous Retail Providers Available

 Natural Gas

• Local Distribution Company: CenterPoint Energy
• Size of Gas Line in Industrial Areas
  • 4 inches
  • 60 psi (high pressure)

Telecommunications

Facilities Based Government Regulated Carriers:
Consolidated, AT&T

Services Available:

• ADSL From Central Office
• Central Office on Fiber Ring
• Digital
• Fiber, VOIP, Frame Delay, ISDN
• Dual Redundancy
• Multiple Points of Presence

  Solid Waste

• Residential / Commercial service provided by private companies such as Republic, BFI, and Waste Management
• Recycling of newspaper, magazines, aluminum, plastic, and cardboard drop-off service is available at public schools.  Some curbside recycling is provided in some neighborhoods.

The State of Texas and the Katy Area offer a pro-business tax structure, and reasonable fees for development and businesses. Some key features of the tax structure include:

• No State Income Tax on Persons or Businesses
• No Unitary Tax
• No Local Income or Occupational Tax
• Decreasing Property Tax Rates

• Revised Franchise Tax: 1% for most taxable entities
  • Revised tax base is based on the taxable entity’s margin.
  • Margin equals the less of three calculations:
    • Total Revenue minus cost of goods sold
    • Total revenue minus compensation or
    • Total revenue times 70%

• Total Property Tax at Selected Locations per $100.00 of assessed value: 

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• Sales Tax
  • City of Katy: 1%
  • County: 0%
  • Special Purpose (Metro): 1%
  • State: 6.25%

• Lodging Tax
  • City of Katy: 4%
  • City of Houston: 7%

• Fuels Tax
  • State of Texas: $0.20 per gallon

• Unemployment Insurance
  • 2.7% starting rate
  • Based on the first $9,000 in earnings

• Workers Compensation Insurance
  • Options include self-insurance, the state operated Texas Workers Compensation Insurance Fund or a licensed private insurance company

Energy Services
The Katy Area, which includes the world famous Energy Corridor, is home to headquarters for BP America, ConocoPhillips, ExxonMobil, Mustang Engineering, and Shell. This concentration of the “majors” has resulted in the area also being a leading business destination for a number of energy related companies. Examples of Industries: energy consulting services, energy related software and other IT services, corporate headquarters for energy firms, and energy related research and development.  Link to Flyer

Advanced Materials
Katy is in close proximity to one of the largest petrochemical complexes in the world. This location allows suppliers of advanced materials to be strategically situated among multiple suppliers of resins and other upstream inputs, as well as at the heart of one of the world’s leading advanced materials research centers. Examples of Industries: advanced polymeric materials, composites, extrusion-molding, and advanced building materials research and testing.  Link to Flyer  

Business and Professional Services
Examples of Industries: software development, information technology services, and financial services.

Healthcare
Strong population growth in the Katy Area is driving demand for increased healthcare services, as evidenced by ongoing expansions among primary medical facilities. The Katy Area’s healthcare sector has a workforce totaling more than 4,200 workers and generates revenues of over $500 million annually. Examples of Industries: allied health, medical and diagnostic labs, outpatient care centers, and specialty hospitals.

Transportation and Logistics
The Katy Area and the wider region are served by an excellent transportation system, including major interstate, rail, seaport, and air facilities. The Katy Area also offers several large prime acreage tracts suitable for transportation and logistics firms with both interstate and rail access. Examples of Industries: trucking and warehousing, port-related distribution, retail distribution centers, logistics, and supply chain management.

Recreation and Leisure Services
Examples of Industries: outdoor recreation, semi-pro or minor league spectator sports, and family entertainment parks and venues. 

Integrated Building Systems
Katy is at the epicenter of the nation’s booming Sunbelt region. The strong regional transportation system provides quick access to thriving residential and commercial markets throughout Texas and the South Central US.  Examples of Industries: materials research, computer systems integration, and modular or prefabricated buildings design and assembly.

The Katy Area is known for its excellent quality of life.  The Katy Area has a diverse population with high educational attainment, low-cost of living, an available and broad diversity of housing, and beautiful master-planned communities.  Abundant and diverse recreational opportunities are available with professional sports teams, arts and cultural opportunities, and diverse shopping and dining experiences.  The Katy Area also has growing health care options, a low crime rate, and a moderate climate.

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Low Cost of Living Index

• Cost of living in the Katy Area is well below the national average.
  
  
  

  Cost of Living Index, Selected Texas MSA's 2008
  ACCRA COLI, US = 100	Houston	Dallas	Austin
  Grocery Items	83.1	99	89.9
  Housing	74.4	72.3	81.8
  Utilities	101	98.9	95
  Transportation	96.2	103.5	99.3
  Health Care	101.2	101.6	98
  Misc. Goods & Services	93.1	97.5	105.4
  Average Rent	$812	$715	$946
  Average Home Price	$214,931	$213,140	$228,613
  Total	88	91.5	94.8

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The Katy Area has recently been named “Medical Center West” for the Greater Houston Area.  Why?  For good reason, Katy’s healthcare options are growing rapidly.  Over the next few years hospitals will invest nearly $800 million in new and expanded facilities.

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Robert T. Berry, SIOR

Executive Vice President, Industrial

Jones Lang LaSalle Americas Brokerage

“I have worked closely with the Katy Area Economic Development Council over the past two years on several development and user projects.  In my opinion, their professionalism, experience, knowledge and access to instantaneous, quality information is second to none.  These attributes have enabled them to become one of top economic development organizations in the Greater Houston area.  These qualities also helped the Katy Area EDC land the 1,000,000 sq. ft., $30,000,000, Rooms to Go Distribution Center, in which Jones Lang LaSalle managed the site selection process.”

“Katy is a great place for plastics manufacturing and distribution.  The strengths for doing business here include access to an available and large world-class workforce, a great transportation system, low cost of living, and an excellent quality of life.”

Jim Vanghn
Vice President
Igloo Corporation

“We have been seeing a site to build a distribution center over the past year to support our new stores opening in Houston, as well as our stores in San Antonio, Austin, and surrounding states.  Recently, we closed on the 118 acre tract and look forward to beginning construction in the spring of 2008.  The facility will become operational in the fourth quarter of 2009.  We feel confident that this site will satisfy our needs in several respects.”

Jeff Seaman
CEO, Rooms To Go

Seaman credited The Staubach Company, Waller County, the State of Texas and the Katy Area EDC for their help in identifying a suitable site and providing technical assistance, support and incentives that were important factors in the decision.