McALLEN, RGV – Over the past 17 to 18 months, McAllen Economic Development Corporation has brought in 27,800 new jobs and $209 million worth of investment in Reynosa and McAllen, the group’s president, Keith Patridge has reported.
While the bulk of the new jobs and investment is in Reynosa, where wage rates are lower, McAllen has done well, Patridge told the MEDC board of directors.
“On the McAllen side, we have 11 new companies that have brought in 2,010 new jobs. With the wages that we know they will pay, that is $55.5 million of new wages that will be coming in from those 2,010 jobs. So, that is 55.5 million new dollars that are coming in to the community from those new companies we brought in,” Patridge said.
In addition to new companies coming to McAllen, MEDC also helps existing companies, mostly in the manufacturing and logistics industries, to expand.
“We had 19 expansions in McAllen for 477 new jobs and that will bring in conservatively another $10.5 million in new wages. There was also $81 million of new investment that came with those companies, and that, just for McAllen, will result in $386,268 in new property taxes, just for the city of McAllen, not counting the school district or any of the other taxing entities,” Patridge said.
MEDC’s budget is $1,383,195. Looking at just the McAllen business activity, Patridge said: “That gives us a return on our budget of about $66 million per year. That is what we are bringing in for that investment of $1.383.195. I will let you figure out if that is a good deal or not.”
Patridge also explained in depth the business activity MEDC has been involved in with Reynosa, which focuses on maquiladoras.
“In Reynosa, we had five new companies, for 3,500 new jobs, and 13 expansions for 22,165 new jobs. We have a history with these companies. We see what their highest peak number for employment was and then we compare what their current number is to that number. If they are below that number they are considered to be recovery jobs, if they over that number they are considered new jobs. With the new companies, it is a total 25,665 new jobs. That is pretty substantial,” Patridge said.
Looking at new prospects that could materialize soon, Patridge noted:
“We are currently working 13 companies in McAllen for another 965 jobs, with $60 million of investment. One of those companies has committed this month. In Reynosa, we are working seven new companies, for another 8,425 jobs, and $158 million of investment and one of those companies has already committed.”
Patridge gave his report on manufacturing and logistics activity in McAllen and Reynosa while updating the MEDC board of directors on the group’s budget. He said the MEDC’s management team appeared before the City of McAllen’s CDBG board on June 1.
“I think it went well. Our budget request is the same we have had for nine years. It is $1,383,195. That is what we requested. Our proposed budget is $1,627,847. Of this, $150,000 will be a carried over from this year. About $25,000 of that will be donations for the annual picnic. INDEX and MEDC partner up on picnic, so if we have a shortfall we split that between INDEX and MEDC,” Patridge said.
“That still leaves us with a shortfall of about $70,000. That $70,000 has traditionally come from the board of the McAllen Foreign Trade Zone. The McAllen Foreign Trade Zone has always been gracious enough to provide a donation to MEDC to make up the budget shortfall. We said 11 years ago that we would not raise or ever ask for an increase from the city commission and we would make up any shortfall through other sources. That is what we continue to strive to do.”