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PROJECT

BRIGHT STAR

TABLE OF CONTENTS
AVAILABLE SITES ..................................................................................................................................................................... 4
INCENTIVES ............................................................................................................................................................................. 9
COMMUNITY DEMOGRAPHICS ............................................................................................................................................. 10
LABOR STATISTICS ................................................................................................................................................................... 8
AREA UNIVERSITY, COLLEGE AND TECHNICAL SCHOOLS ...................................................................................................... 13
UTILITIES................................................................................................................................................................................ 23
LOCAL PROPERTY TAX RATES ................................................................................................................................................ 24
TRANSPORTATION ................................................................................................................................................................ 26

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March 11, 2014


Dear Mr. Chen,
First and foremost we would like to thank you for the opportunity to share the many advantages and opportunities McAllen has to
offer your clients company. We have two readily available sites for your clients review and feel either would be a perfect fit. Both
sites are located within a sustainable, ecofriendly and modern development called Tres Lagos in McAllen, Texas. Tres Lagos is a
2,571 acre, fully-entitled, master planned community in one of the fastest growing areas of the city.
Tres Lagos will be the most technologically advanced and secure community in the Rio Grande Valley and its development will be the
first in the region to provide Fiber-to-the-Home (FTTH) and bundled services to the entire community. Utility service is already
installed to the southern perimeter of the property, with sewer capacity already available. Tres Lagos is currently in agricultural use,
with drainage and irrigation canals installed that will benefit the development of the tract by allowing flood control and landscaped
water feature installation throughout the property.
The McAllen Economic Development is dedicated to assisting your client in each step of opening or expanding their operation to
McAllen, TX. This includes handling and expediting any permitting and/or zoning requirements. We also recognize incentives are
important and we stand ready to secure those that may be available to your client at the state, county and city levels. We will
partner with the City of McAllen and with Affordable Homes of South Texas to provide up to 20 lots in a future development for
your clients exclusive use for building 20 demonstration homes. AHSTI will purchase those lots and hold title of them during the
period of time your client is constructing demonstration homes. This property would be held under AHTSTIs name with the title
transfer not taking place until the time of sale for up to a maximum of three years with no property tax liability. AHSTI also controls
an affiliate entity that specializes in property management services for rental properties and thus has a significant pool of potential
clientele for your client. Please see page 9 for more information on incentives.
In addition to incentives, McAllen has a number of other unique assets to offer your company. One of those unique assets is a
customized training program through our local community college and university to provide a qualified workforce. From engineers
to warehouse personnel, there is a wide variety of training opportunity available for both start-up and established companies.
McAllen values innovation and sustainability and has a strong research partnership with local educational institutions, including the
University of Texas Pan American. In 2009, Forbes ranked UTPA in their 100 Americas Best Public Colleges as 3rd in the state of
Texas behind UT Austin and Texas A&M College Station; it was 32nd in the nation. UTPA strives to be a beacon of leadership to the
Rio Grande Valley and Texas in sustainability.
Companies in McAllen are using mass customization, rapid response manufacturing, warranty repair, product remanufacturing and
now product reuse to promote the Green Campaign and to also increase profit from a product's lifecycle. The McAllen Economic
Development Corporation works with manufacturing companies who continue to find ways to reduce energy and product
consumption while reusing and recycling wherever they can to lower costs of production.
We are very interested in welcoming your client into our community and would like to extend an invitation to you and your client to
visit our area and show you why McAllen is the right place for this operation. We would be honored for your client to call McAllen
home. Please feel free to visit our website www.mcallenedc.org for further information. If you have any questions, please do not
hesitate to contact me at (956)682-2875 or via email at adrienne@mcallenedc.org.
Sincerely,

Adrienne Downey
Business Development Specialist
McAllen EDC
(956) 682-2875
adrienne@mcallenedc.org

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AVAILABLE SITE ONE

A variety of Smart Home features will be available to each homeowner including state of the art security systems and
optional thermostat controls, lighting controls, window blind controls, door controls, and garage door monitors that will
all be accessible via desktop/laptop as well as iPhone/iPad/Android apps
Proposed interface with the Citys police and fire departments for increased response time and a higher degree of
security
Proposed site for all levels of public school education as well as site for a high performing charter school
It will incorporate extensive pedestrian trails and landscaping, as well as innovative and efficient street layouts and land
uses allocated according to projected market absorption rates.

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AVAILABLE SITE TWO

Proposed site for religious and recreational facilities including linear hike and bike trail systems, regional parks, 3 lakes,
and much more
Over 100 acres dedicated for hospital, medical school, and healthcare education facilities
Green Build and Energy Star Efficient Development. Residents and businesses will have access to Gigabit Internet
capability via fiber and a community WiFi system designed to support residential subdivisions and parks
Tres Lagos will be the first in the region to provide Fiber-to-the-Home (FTTH) and bundled services (high-speed internet
access, community WiFi, alarm monitoring, video surveillance, IPTV, IP telephony and smart home technology) to the
entire community

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INCENTIVES
The following incentives are only an approximation and must be presented and approved by the respective
governing bodies and may be enhanced based upon more complete understanding of the project.
City Incentives
Property Tax Abatement: 5 years at 100% for new Construction, 5 years at 50% for an existing building
Job Grant: $1,000.00 - $1,500.00 for each new job created during the first 5 years of operation

(This monetary amount awarded is dependent upon salary level paid)


Potential Land Purchase Subsidy
Potential Site Preparation Subsidy; offsite drainage, utilities to lot line
Employee Training Assistance at no cost to company
County Incentives
Hidalgo County will provide 5 years at 80%

South Texas College


Provides customized training to meet companys needs at, generally, no cost and on a continual basis

State of Texas
All State of Texas Incentives eligible for this project will be available in McAllen. We also are prepared

to offer a number of non-cash incentives based on the client requirements


Affordable Homes of South Texas, Inc.

Will provide 20 lots in a future development or scattered redevelopment of the exclusive use of the
manufacturer to build 20 demonstration homes
Will provide the manufacturer three years with no property tax liability

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COMMUNITY DEMOGRAPHICS
GEOGRAPHIC LOCATION
McAllen is located 75 miles from the Gulf of Mexico and 4 miles from the Mexico border.
Coordinates:
Average Elevation:
MSA Area:

26.396 N; 98.1848 W
121 ft.
1,567 Sq. Miles

NEAREST METRO AREAS TO MCALLEN


McAllen is part of the McAllen-Edinburg-Mission
Metropolitan Area.
Distance to nearest neighboring metro areas:
Brownsville-Harlingen: 59.8 Miles
Laredo: 144.9 Miles
Corpus Christi: 153.4 Miles
Victoria: 223.3 Miles
San Antonio: 238.8 Miles
CLIMATE
Humid Sub tropical
Average Annual
Rain:
Snow:
Temp.:
Wind Speed:

22.61
0
84.7 F
8.15 Miles/Hour

Seasonal Temperature
January:
69.9 F
July:
96.1 F
Direction of Prevailing Wind: Southeast
POPULATION
By MSA:
The McAllen MSA is the 8th fastest growing MSA by percentage in the State of Texas Growing 36.1% from
2000 to 2010. (U.S. Census Bureau 2010 vs. 2000 & 2009)

Population

2000
569,463

YEAR
2009
741,152

2010
774,769
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By City
McAllen:
129,877
Mission:
70,129
(Source: U.S. Census Bureau 2010)
Median Age
McAllen MSA:
Reynosa, Mexico:

27
24

Population Distribution (MSA)


Male:
47.6%
Female:
53.4%
18 years and over
Male:
Female:

30.6%
34.1%

Population by Age Group


U.S. Census Bureau 2010
Under 18
259,807
18 - 24
94,545
25 - 44
209,532
45 - 64
140,164
65 - Older
68,997

WORKFORCE
Bilingual Workforce
Approximately 90.6% of our MSA population is Hispanic, making a bilingual, bicultural workforce very commonly
available. (Source: U.S. Census Bureau, Census 2010)
Labor Market-McAllen MSA*
Total Civilian Labor Force:
311,265
Unemployment Rate:
10.8%
Average commute time/distance: 15-30 minutes/30 miles
*Texas Workforce Commission, 2013 Data

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LABOR STATISTICS

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2012-2013 Unemployment Rates in Hidalgo, Starr & Willacy Co.


Source: Texas Workforce Commission, Texas Labor Market Review Issues Jan. 2013-Jan. 2014

18

Unemployment Rate

16
14
12
10
8
6
4
2
0
Jan.
'13

Feb.
'13

Mar.
'13

Apr.
'13

Hidalgo County

May
'13

Jun.
'13

July
'13

Aug.
'13

Starr County

Sept.
'13

Oct.
'13

Nov.
'13

Willacy County

Dec.
'13

Jan.
'14

Texas

Percent of Labor Force Unionized: 0% Manufacturing Union Presence

No unions in the manufacturing sector


Abundant Labor Supply
Texas is a right-to-work state
Texas has instituted major reforms in workers compensation, lowering employers costs
substantially over the past several years
Bilingual & Young labor force; Median Age: 27

Unemployment Percentage
* Unemployment rates are NOT SEASONALLY ADJUSTED

Civilian
Labor Force
January
2014
154,381,000

#
Unemployed
January
2014
10,855,000

12,817,900

Hidalgo County
McAllen

Community or MSA

USA
Texas

UI Rate

#
Unemployed
January
2013
13,181,000

UI Rate
January

2014
7.0%

Civilian
Labor Force
December
2013
154,794,000

743,400

5.8%

12,712,500

892,300

7.0%

323,581

34,018

10.5%

320,722

37,901

11.8%

62,240

3,930

6.3%

61,766

4,814

7.8%

January

2013
8.5%

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Unemployment:
The chart below shows the number of job seekers throughout the different industries in the entire McAllen
MSA (Hidalgo County). Please note job seekers related to the categories of your operation.

Job Seekers
15,248

8,456

7,871

2,014

TRANSPORTATION AND MATERIAL MOVING

SALES AND RELATED

PROTECTIVE SERVICES

PRODUCTION

PERSONAL CARE AND SERVICE

OFFICE AND ADMINISTRATIVE SUPPORT

103
MANAGEMENT

LIFE, PHYSICAL, AND SOCIAL SCIENCE

LEGAL

INSTALLATION, MAINTENANCE, AND REPAIR

HEALTHCARE SUPPORT

HEALTHC ARE PRACTITIONERS AND TECHNICAL

FOOD PREPARATION AND SERVING RELATED

FARMING, FISHING, AND FORESTRY

321 402
EDUCATION, TRAINING, AND LIBRARY

2,858

2,729

1,406

1,339

CONSTRUCTION AND EXTRACTION

COMPUTER AND MATHEMATICAL

COMMUNITY AND SOCIAL SERVICES

BUILDING AND GROUNDS CLEANING AND

ARTS, DESIGN, ENTERTAINMENT, SPORTS, AND

ARCHITECTURE AND ENGINEERING

BUSINESS AND FINANCIAL OPERATIONS

1,7111,427
465

472 635

3,2413,209

2,9273,205

MILITARY SPECIFIC

3,450

7,119
6,552

***This is DUPLICATED data; if a job seeker indicates they are willing or interested in working in 3 different sectors, they
will be counted 3 times on this report. This report also does not guarantee the job seekers are trained or qualified for
particular jobs, but most have some experience in the sectors in which they are looking for work.***

*Source: Texas Workforce Commission, January 2014


Underemployment Information
Data collected by Workforce Solutions indicate that there are skilled people currently seeking employment in
the McAllen area. The economic downturn and company downsizing has led to this scenario. College
graduates often work in the retail sectors, as well as in administrative and support positions.
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2013 Largest Employers in Hidalgo County (EXCLUDING Cities and ISD's)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Employer Name
H.E.B. Foods- Cumulative Count for All Stores in Hidalgo Co. (Total of 19
stores)
University of Texas Pan American
Doctor's Hospital-Renaissance
County of Hidalgo
Wal-Mart -Cumulative Count for all stores in Hidalgo County (9)
South Texas Health Systems- Incudes McAllen Medical, Edinburg
Regional, Edinburg Children's and Heart Hospital
South Texas College
Rio Grande Regional Hospital
Knapp Medical Center
T-Mobile
Ticketmaster
Hidalgo County Sheriff's Office
Convergy's
Lack's Valley Stores- Includes all Lack's stores in Hidalgo Co. +
warehouses
GE Aviation (both plants)
* # Employees are approximate and subject to change.

City

Zip

Est. Head
Count

Edinburg 78539

4200

Edinburg
Edinburg
Edinburg
Edinburg

78539
78539
78542
78539

3900
3100
3000
2500

Edinburg 78539

2200

McAllen
McAllen
Weslaco
Mission
Pharr
Edinburg
Pharr

78501
78503
78596
78572
78572
78542
78577

1800
1100
900
800
800
750
700

Pharr

78577

700

McAllen

78503

600

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Median Wage Information


OCCUPATION TITLE
All Occupations
Management Occupations
Business and Financial Operations Occupations
Computer and Mathematical Occupations
Architecture and Engineering Occupations
Life, Physical, and Social Science Occupations
Community and Social Service Occupations
Legal Occupations
Education, Training, and Library Occupations
Arts, Design, Entertainment, Sports, and Media Occupations
Healthcare Practitioners and Technical Occupations
Healthcare Support Occupations
Protective Service Occupations
Food Preparation and Serving Related Occupations
Building and Grounds Cleaning and Maintenance Occupations
Personal Care and Service Occupations
Sales and Related Occupations
Office and Administrative Support Occupations
Farming, Fishing, and Forestry Occupations
Construction and Extraction Occupations
Installation, Maintenance, and Repair Occupations
Production Occupations
Transportation and Material Moving Occupations

TOTAL
EMPLOYED
227,710
7,250
4,700
1,680
1,100
780
2,800
720
24,090
1,530
15,210
9,160
5,410
19,110
5,830
24,520
27,880
37,950
1,540
7,490
7,070
7,160
14,720

MEDIAN
HOURLY
10.92
35.14
23.90
23.95
26.14
25.30
18.81
29.35
21.50
14.69
27.20
8.98
16.57
8.69
9.13
8.48
9.25
11.06
8.73
12.82
13.57
10.87
9.32

Source: Bureau of Labor Statistics May 2012

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AREA UNIVERSITY, COLLEGE AND TECHNICAL SCHOOLS


McAllen-Edinburg-Mission MSA
Name
# Students Attending Type of School
City
University of Texas-Pan American
20,000+
University
Edinburg
University of Phoenix
2,000+
University
Mission
South Texas College
31,000+
2-Yr. College* McAllen
TOTALS
53,000+
* 4 Bachelor Degree Programs Also Offered (Business Technology Management)

South Texas College


www.southtexascollege.edu
About South Texas College
Founded in 1993, South Texas College is accredited by the Commission on Colleges of the
Southern Association of Colleges and Schools to award baccalaureate and associate degrees.
More than 30,000 students attend STC, and a faculty and staff of more than 1,600 serve STCs
five state-of-the-art campuses and one virtual campus.
Associate Degrees and Certificates
The college offers more than 100 degree and certificate program options in a variety of liberal
art, math, social science, science, technology, nursing and allied health fields of study.
Bachelor of Applied Technology
STC offers Bachelor of Applied Technology degrees in Computer and Information
Technologies, Medical and Health Services Management and Technology Management. The
college is the only Texas community college accredited to offer three BAT degrees. Applied technology and
science means STC links education with hands-on, real world experience. Students will learn theory and
practice from the nation's top industry leaders and innovators, who weave professional experiences and
firsthand knowledge into an academically rigorous curriculum
Bachelor of Applied Science in Organizational Leadership
The Bachelor of Applied Science (BAS) in Organizational Leadership is first competency-based bachelor degree
offered at STC and will prepare innovative leaders for employment in an increasingly diverse technological and
global society. The degree develops practical workplace competencies that meet the current and future
challenges through real world coursework utilizing personalized academic mentoring and tutoring.
Graduates of this program pursue careers in education, government, non-profit, and business organizations.

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Dual Enrollment Opportunities


STC has instituted a variety of dual enrollment programs, including early college high schools,
drop-out recovery programs, academies and other unique initiatives with high schools
throughout Hidalgo and Starr counties. The programs allow eligible students to take college
courses with the opportunity to earn certificates and associate degrees while attending high
school. Combined, more than 10,000 students are currently enrolled in these programs.
eSTC Virtual Campus
Through the colleges new virtual campus, students not only have access to more than 500
online courses, they can also take advantage of library services, admissions, advising,
payment services, financial aid, bookstore and testing. STC also offers 10 online associate
degrees options so students never need set foot on an STC campus to earn their degree.
Continuing, Professional and Workforce Education
The program provides opportunities for lifelong learners who want to upgrade their skills,
change careers, renew licenses and certifications, or seek personal enrichment. There is a
wide variety of course offerings including online classes. Additionally the division also offers
customized training to area businesses, industries and the community. Training programs are
tailored to a clients specific needs in terms of content, schedule and location.
NAAMREI
The college is the fiscal agent and home of the executive offices for the North American
Advanced Manufacturing Research and Education Initiative. STC serves as the Regional
Institute for Advanced Manufacturing linked to all community and technical colleges in the
region. The college has taken the lead in helping train workers to fuel a regional manufacturing
economy and to support innovations in advanced, rapid response manufacturing.
Articulation Agreements
For those students who wish to continue their education beyond an associates degree, STC
has more than 60 articulation agreements in place with colleges across the country.
Technology Campus
The state-of-the-art facility provides a wide range of electronic training labs, technical machinery labs and
classrooms to prepare students for careers to meet the targeted workforce needs of this vital and growing
area. Courses of study range from business administration to precision manufacturing, computer science,
diesel technology, and computer aided drafting and design. The campus is also home to the colleges largest
Workforce Training Center, which provides customized training programs to area employers in a number of
technical and managerial skill areas.

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University of Texas-Pan American


www.utpa.edu
The University of Texas-Pan American, a Hispanic serving institution, is in the middle of one of the fastest
growing areas in the nation, the southern tip of Texas known as the Rio Grande Valley. UTPA is located in
Edinburg, Texas, approximately 10 miles north of the UA/Mexico border and 75 miles northwest of South
Padre Island. UTPA provides program specific classes in Rio Grande City, McAllen and South Padre Island in
addition to those offered through the online learning center.
Since its inception in 1927, The University of Texas-Pan American has conferred over 2,600 Associates, 58,000
Bachelors, 13,000 Masters and 155 Doctoral degrees.
UTPA provides and affordable education and global opportunities with a choice of 56 bachelors, 53 masters,
three doctoral and two cooperative doctoral programs within 7 colleges.
The University of Texas-Pan American has experienced growth at an annual rate in excess of 6% for the past
few years; about 10% in Fall 2013 compared to Fall 2012, and 14.5% in Spring 2014 compared to Spring 2013.
Specifically, UTPA currently offers eight Bachelor Degree programs within six departments in their College of
Engineering and Computer Science, with six of them pertaining to Engineering:
Computer Engineering
Computer engineers design and develop computer hardware, software, peripheral devices, and
communication networks. They are actively involved in web development by developing new features, tools,
and services for the World Wide Web and the Internet. They manage the design, content and development of
websites and features for the Internet including e-commerce, web streaming and Internet security.
The Computer Engineering program is offered jointly by the Department of Computer Science and the
Department of Electrical Engineering and offers a Bachelor of Science in Computer Engineering degree (BSCE).
There are two available tracks: the Hardware track and the Software track.
Electrical Engineering
Electrical engineering is a broad field with applications in almost all areas of industry, including computer
systems, control systems, telecommunications, semiconductors, electronics, and electric power. The
Department of Electrical Engineering offers a Bachelor of Science in Electrical Engineering (BSEE) degree that is
accredited by the Engineering Accreditation Commission of the Accreditation Board for Engineering and
Technology (ABET). This degree provides a broad, solid education in engineering fundamentals as well as the
opportunity for in-depth study in specialized topics.
Manufacturing Engineering
The UT Pan American offers the Bachelor of Science degree in manufacturing engineering that is equivalent in
scope to engineering programs at other institutions in Texas. The bachelors degree has accreditation from the
Engineering Accreditation Commission of the Accreditation Board for Engineering and Technology (ABET)
effective May 1996. The engineering curriculum provides a rigorous foundation for engineering practice in
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industrial and governmental organizations as well as for graduate studies in engineering, business
administration, law and medicine. In addition, a number of graduate engineering courses are offered for
professional development and a Master of Science degree in engineering-concentration manufacturing.
Mechanical Engineering
The mechanical engineering curriculum provides a rigorous foundation for engineering practice in industrial
and governmental organizations as well as graduate studies in engineering. Mechanical engineers possess a
broad technical background that enables them to work in virtually every industrial sector. They are concerned
generally with the development of energy systems, power generation, environmental control machines and
vehicles, as well as materials processing. Mechanical engineers usually work closely with engineers having
other specializations
Civil Engineering
Civil engineering is providing the conveniences required for modern civilization. Civil engineers conceive,
design and oversee the construction of public works; facilities that promote and sustain the development of
society and civilization. They are the masterminds behind systems for water, structures, transportation and
electricity. The Panama Canal, Hoover Dam, Sears Tower and Golden Gate Bridge are a few examples of
landmark civil engineering projects that provide transportation, flood control, water and electric power to
society. You dont have to travel the world to see a civil engineering feat; their work is evident in every aspect
of modern life. Clean water is available to drink at the turn of a tap and electricity to power lights and
computers at the flick of a switch. The facilities to treat millions of gallons a day of drinking water and waste
water, to control storm water drainage, the roads that allow you to comfortably travel from home to work or
school, the airports that make it possible for you to be virtually anywhere in the world tomorrow are in every
village, town and city. Civil engineers plan for the growth of communities, the preservation of our
environment, and the wellbeing of mankind. Civil engineers impact the lives people.
Computer Science
The department offers four degrees: Bachelor of Science in Computer Science (BSCS) as a broad-field major,
Bachelor of Science (BS) with a major in computer science with a required minor field, Master of Science (MS)
with a major in computer science, and Master of Science in Information Technology (MSIT). The BSCS degree is
accredited by the Accreditation Board for Engineering and Technology Computing Accreditation Commission
(ABET/CAC). The department offers courses leading to teacher certification in computer information systems,
service courses to fulfill University core curriculum requirements, and computer science courses required for
degree programs in engineering, science, and mathematics.

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University of Texas-Pan American

Total Head Count College of Engineering and CS:


Fall Enrollment
2500
45

2000
28

1500
1000
500

554

612

647

116
14
246

126
16
278

114
22
279

366
105

297

304

294

202

217

2007

2008

2009

20
359

6
397

3
413

505

144
293

162
303

153
260

157
286

110
10
275

376

391

2005

2006

34
250
132
297

36
298
134
307

401

415

372

386

2001

2002

2003

2004

36

545

589

102
30
260
298

43

622

567
94
36
265
330

110
36
280
388

305

371

245

238
234

253

249

2010

2011

2012

2013

- Computer Engineering

- Civil Engineering

- Computer Science

- Electrical Engineering

- Engineering Management

- Manufacturing Engineering

- Mechanical Engineering

- Pre-Engineering

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UTPA is at the forefront for scholarship and research related to sustainability topics. The universitys six
colleges all participate in sustainability-related research through formally established agencies as well as
individually formed groups of students and faculty members who are dedicated to integrating their research
into classroom teachings. This commitment of the UTPA community continues to add knowledge and
understanding of sustainability, and incorporate that into professional and personal lives.
Specifically, faculty of the College of Science and Engineering actively engage students in research related to
the impact that human actions have on the environment, with projects that develop alternative energy
sources such as solar and wind power, as well as protecting water quality of the Rio South Texas region. The
library of UTPA contains resources as well as knowledgeable staff who can assist students and faculty in their
research pursuits.
The scientists, engineers, and economists at UTPA are working together to develop sustainability research that
will respond to climate change, economic problems, and social justice. They are bringing the newest advances
in technology and changes in human behavior, all of which relies on innovative cross-disciplinary
research. This dialogue, conducted on a regional, national, and transnational level, is aimed at bringing
information to business leaders, policy advisors, and the media to help create a more informed public of the
advantages of the research done on campus.
Research at UTPA in the area of sustainability is increasing as efforts focus on bridging disciplines and
conducing socially relevant work. This plan posits sustainability research as key in the strategic priority of
encouraging the UTPA community to encourage pedagogic research in this area. While seeking opportunities
for faculty and students, UTPA promotes research development in the area of sustainability across the broad
swath of departments and research institutes. Our intention is to undertake evidence-based research in this
interdisciplinary field, in search of financial support for education for sustainability in programs at the
university.

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UTILITIES
ELECTRICITY (McAllen MSA)
Provider: Magic Valley Coop

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RESIDENTIAL RATES

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COMMERCIAL RATES

*1 kw/h=.003412 MM BTU

NATURAL GAS (McAllen MSA)


Provider: Texas Gas Service Company
(956) 630-0742
Average Cost Industrial:
A Customer Charge per meter per month of $66.85 plus - All Ccf @ $ 0.35258 per Ccf
Additional surcharge:
*All Ccf during each billing period: $0.0023 per Ccf
*This rate will be in effect until all approved and expended rate case expenses are recovered under the
applicable rate schedules.
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WATER:
Provider: McAllen Public Utility
Water Resource: Rio Grande River
Type of Treatment: Conventional
Plant Capacity 59 MGD
Average Daily Use
Average Demand

22 MGD
25 MGD

Peak Demand
Elevated Storage:
Ground Storage:

30 MGD
6.75 MG
10 MG

Pressure in Mains: 47 psi


Rate: Water Base Fee
Commercial & Industrial:
Usage for first year
Usage over first year

$5.65
$5.65
$1.30/1,000
$1.80/1,000

Does Tres Lagos provide a water re-use program?

Yes

SEWER
Provider: McAllen Public Utility
Treatment Type: Conventional
Solid Waste Disposal: Yes
Rate: Sewer Base Charge:
Commercial & Industrial:
Usage for first year
Usage over first year
Industrial:
Level 1
Level 2
Level 3
Level 4

$9.00
$9.00
$1.40/1,000
$1.40/1,000

comsumption X 0.10
consumption X 0.50
consumption X 0.70
consumption X 0.90

TELECOMMUNICATIONS
Bundled Services Provider (Cable TV / High-Speed Internet Access / Digital Telephony / Security
Monitoring / Smart Home Technology / Residential and Commercial):

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SolStar Network delivers Fiber-to-the-Premise (FTTP) with residential Internet access up to 1 Gbps and
commercial Internet access up to 10 Gbps (per circuit). SolStar Network offers competitive rates and packages on
all services. Basic Internet access and security monitoring are included in the monthly HOA fees.
Providers: AT&T, Mci, Integrity Communications, Marcatel International, A&D Phone Service, Westel Inc., SmartCom
Telephone, etc.
Long Distance Providers: Multiple: AT&T, Sprint, Verizon, etc.
Switch Technology: Digital and Analog

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LOCAL PROPERTY TAX RATES


Corporate Income Tax:

None

Texas Franchise Tax:


The Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing
business in Texas. The tax was previously only imposed on corporations doing business in Texas, but because
of recent revisions to applicable statutes, it is now more broadly applied.
The revised franchise tax applies to partnerships (general, limited and limited liability), corporations, LLCs,
business trusts, professional associations, business associations, joint ventures and other legal entities.
The revised franchise tax does not apply to:
Sole proprietorships (except the tax does apply to single member LLCs filing as a sole proprietor for federal
income tax purposes);
General partnerships directly and solely owned by natural persons (except the tax does apply to all limited
liability partnerships);
Entities exempt under Subchapter B of Chapter 171; and
Passive entities (as defined under TTC 171.0003).
The most up to date information on the Revised Texas Franchise Tax is available at
http://www.window.state.tx.us/taxinfo/franchise/
Personal Income Tax:

None

Sales Tax
City:
County:
State:
Total:

2.00%
None
6.25%
8.25%

Real Property Tax for Site:


Tax Structure: Real Property tax (Rate/$100 of assessed value)
Area

Rate *

Assessment

City of McAllen:
County of Hidalgo:
McAllen ISD
South Texas College:
South Texas School:
Drainage District #1:

$ 0.4313
0.5900
1.1650
0.1500
0.0492
0.09570

100%
100%
100%
100%
100%
100%

Total Tax Rate:

$2.4812
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Inventory Tax
Inventory tax is exempted under the Texas Freeport Exemption. A freeport exemption is a property tax
exemption. Freeport property includes various types of property that are detained in Texas for a short period
of time (175 days or less) to be transported out of Texas. The goods must be in Texas for certain purposes.

The exemption applies to goods, wares, ores, and merchandise other than oil, gas, and petroleum
products (defines as liquid and gaseous materials immediately derived from refining petroleum or
natural gas) and to aircraft or repair parts used by a certificated air carrier.
The Freeport goods qualify if they leave Texas within 175 days from the date they are brought into or
acquired in the state.
Goods must be in Texas for assembling, storing, manufacturing, repair, maintenance, processing or
fabricating purposes.

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TRANSPORTATION
Airport
Nearest Commercial Airport:
Airline Carriers:
Runways:
Hub Status:

McAllen Miller International Airport


United, American, Aeromar, Allegiant
2 runways
Non-Hub

Shipping Information:

UPS 757 services flies directly into McAllen Miller International Airport
through the Foreign Trade Zone Air Cargo facilities. Fed Ex & DHL services
are also available, both land and air.

Nearest Port City:

Brownsville, TX (Approximately 60 Miles)

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Rail Service
Providers:

Rio Valley Switching


Union Pacific

Short Line:

Rio Valley Switching


Matthew Cundiff
VP of South Texas
Operations

Main or Branch Line:

Branch Line of
mainline to interior
U.S. & Mexico

Switching Yard:

Blue: Short line

Rio Valley Switching


connects to Union
Pacific Railroad;
Burlington Northern

Coming Soon: Regional Multi-Modal Center for South Texas

This is a new type of rail service to be started out of McAllen, Texas.


This new rail project will utilize RoadRailer technology for fast, secure, and cost efficient short haul
truck and long haul rail movement.
Contractors will pick up loaded trailers from shippers and take them to a train assembly terminal in the
McAllen Foreign Trade Zone
Trailers ride on rail bogies, minimizing the risk of cargo damage due to shifting freight.
Construction of Phase I began early 2011.

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