Bay City Tribune

Owen Bludau, director of Matagorda County Economic Development Corporation, presented a positive economic summary of 2009 to Matagorda County commissioners during their regular session on Monday, Dec. 28, citing completed and ongoing industrial expansion, hospitality sector expansion and prospects for prosperous future projects.

"In summary, the county has faired better than most counties in Texas and the nation this year," Bludau said.

Three large industrial projects were either completed or underway in 2009 that will add nearly a quarter billion dollars to the tax base of Matagorda County.

Tres Palacios Gas Storage, a $130 million project, has now been in operation for one full year. Williams Field Services completed a $70 million expansion at its Markham facility, and Underground Services Markham is undergoing a $30 million process expansion.

The two largest projects within the county, the STP units 3 and 4 expansion and White Stallion Energy Plant, are currently in the permitting stage of development. White Stallion could receive final permitting this year, while STP continues to move forward and looks to a 2012 permit issuance date.

These two multi-billion dollar projects would boost the tax base significantly, while bringing construction activity, housing and retail sectors and 1,000 career jobs to the area.

Matagorda County continues to interest other industrial companies who are considering the county for future plant locations, said Bludau.

"We believe that Matagorda County can become an 'energy cluster' for both conventional and renewable power generation and energy fuels production and processing," Bludau said in his review.

This year Bay City saw an expansion of its hospitality sector with the opening of LaQuinta, Comfort Suites and The Hampton Inn and Suites, bringing the city's hotel room total to 955.

Bay City's occupancy rate exceeds 60 percent overall, Bludau said.

According to studies commissioned by the Bay City Community Development Corporation, Houston has about 13.7 rooms per 1,000 people, whereas Bay City now has 39.7 rooms per 1,000 residents.

"We've got a strong market."

One area that has been hit hard locally by the national recession is Matagorda County's housing market, Bludau stated in his activity review.

"We have new houses available for purchase in Matagorda and Blessing. We have lots ready for builders in Palacios, Blessing, Matagorda and Bay City, but housing loans are now harder to get."

"We hope that mortgage money will begin flowing again soon, and that borrowing requirements will not be so strict as to enable qualified people to again begin creating demand for new housing. We will need a large supply of new housing throughout Matagorda County by 2012 to accommodate the expected housing demands from the new permanent employees our industrial projects will bring."

Bludau thanked the commissioners for their support of MCEDC.

"We look forward to continuing to serve you in the coming year," he said.