By Moses Leos III
Its creators call it a plan that will bolster Buda’s economy, providing a first for the rapid growth city.
On Aug. 27, Pegasus Planning and Development recommended an Economic Development and Tax Incentive plan, the latter something Buda never had.
Sean Garretson, President of Pegasus, led a joint workshop between the city and the Economic Development Corporation (EDC).
Pegasus was hired several months ago by the EDC. They were asked to help further economic diversification, increase the city’s tax base and bring more jobs.
Currently, Pegasus estimates Buda is losing over $365 million a year in retail leakage to Kyle Marketplace, Southpark Meadows in Austin and the outlet malls in San Marcos.
But, according to Garretson, the city can recoup up to $225 million dollars in retail leakage.
“[Buda] has great retail potential,” Garretson said during the workshop.
But the EDC felt the city needed more direction.
Enter Pegasus, which recommended a seven-point approach.
Garretson and his colleagues stressed the need for more entertainment, retail and hotel/hospitality/tourism development.
In a survey of Buda residents conducted by Pegasus, 80 percent said they travel outside the city for retail or entertainment purposes. The same survey showed 65 percent of citizens wanted more entertainment, retail and downtown development.
“Those are the types of business that want to come here, but also citizens want,” Mayor Todd Ruge said. “Survey after survey shows we would love to have more entertainment and more shopping.”
Pegasus recommended Buda support the Lone Star Rail line. The line is proposed to go from Georgetown to San Antonio, with Buda as a stop. Surveys showed 53 percent of Buda citizens supported it. They also support the development and construction of SH 45, which will connect SH 45 (which connects with south MoPac) and FM 1626 near the City of Hays.
“[Buda citizens] are tired of transportation issues,” Garretson said.
He also focused on office development. Due to Buda’s young demographic, Garretson said many Budaites hold white-collar jobs outside of the city.
“Office development is a low-hanging fruit [for Buda],” Garretson said.
The idea is to create a way for citizens to live-work-play in the city. Garretson felt reaching out to developers and partnering with them will help.
The big question: where to put all the development?
With limited space, Pegasus emphasized a commitment to consider retail/office flex spaces. Called “co-working,”the city can maximize office development by fitting multiple businesses into one space.
Not talked about was a need to expand vertically. Garretson said promoting single story, mixed use buildings was necessary. However, if there ever came a time to build higher, Buda’s current city council has already indicated it would not approve any building taller than three stories.
Taking a lighter approach on light-industrial work is also necessary, Garretson said, since 65 percent of citizens rated light industrial of lowest importance.
In total, Garretson believed the city should focus 50 percent on entertainment/retail and hospitality, 30 to 40 percent on offices and 10 to 20 percent light industrial development.
Ruge was satisfied with what Pegasus found. He believes the city now has a game plan.
“I think Sean and his team did a fantastic job. They put everything in layman’s terms so we can understand it,” he said. “We kind of figured we were losing out on a lot of opportunity. We don’t have a lot of things Southpark Meadows, Kyle or San Marcos have, but we are getting there.”
Many council members were impressed with the framework for a tax incentive plan. Currently, Buda has no incentive plan for businesses.
That may change.
During the meeting, minimum standards were set. Business must create at least 10 jobs, invest at least $250,000 into the city and may receive an incentive package not to exceed ten years.
Pegasus also came up with an incentive scoring scale to judge businesses. The scale goes from 0 to 100. Businesses scoring less than 50 are not eligible for incentives. Businesses scoring 50 to 75 are eligible for up to 30 percent, and those scoring 75 and higher are eligible for up to 50 percent overall capital investment.
A task force comprised of the EDC, planning and zoning committee, the public works department and City Manager Kenneth Williams will judge businesses to decide if they will receive an incentive.
The task force will assess business using a matrix that includes how many jobs, the capital investment, and the quality of the jobs created.
Ultimately, council hopes the city does not give too much incentive to any one business.
It also takes political favoritism out of the equation, leveling the playing field.
“This policy makes sure there are guidelines,” EDC Executive Director Ann Miller said. “It makes sure everyone is on the same page.”
While only a draft, the incentive plan offered optimism to the EDC board. It also ensures any missteps in the past are not repeated.
“I think it is great that they are offering us some kind of plan,” EDC Vice-Chairwoman Lisa Sauceda said. “[It’s] something we can look towards.”
Buda aims to adopt both plans in September.
