Monday, October 12, 2009

New Companies Moving to Edinburg Renaissance Industrial Park this Year | Rio South Texas

New companies moving to Edinburg Renaissance Industrial Park this year
By Ramiro Garza, Jr.
Texas Border Business
Picture of Ramiro Garza, Jr. Executive Director for the Edinburg Economic Development Corporation




The local economy continues to be one of the strongest in the nation through the second quarter of 2009 according to MetroMonitor report by the Brookings Institution.

In fact, the Mcallen-Edinburg-Mission MSA was the only metro that gained jobs in both the first quarter second quarters of this year.

The MetroMonitor report also showed that this MSA was one of three that surpassed their pre-recession peak output by the second quarter of 2009.

While economic activity is down overall compared to previous years, it is good to see these types of reports confirming that this area continues to be in a relatively strong position as we move forward out of this global downturn of the economy.

The key to sustaining this momentum is continuing to maximize our comparative advantage which is our proximity to the Mexican border and coastal area.

And we are doing just that in Edinburg. While we continue to promote ourselves to clusters of industries tied to trade activity from manufacturing to logistics, we are doing that not only in the USA but in Mexico as well.

Most recently, we have had as many leads come out of Mexico as we have from anywhere else. Out of these leads, we have recruited two small manufacturing companies from Mexico to our Renaissance Industrial Park this year.

One is a candy manufacturer called Dulces Ravi from Monterrey, N.L. The other is Muller coating company from Satillo, Coahilia.

The reason these companies are interested to locate here is because they are already exporting to the USA and are looking to have their produce their product here and distributed to penetrate the Hispanic market in the USA.

In working with these foreign companies, we have found that our area has many advantages for them aside from simply serving as a distribution point.

Aside from the economic stability, these companies have found that utility costs are less expensive and they are in a better position to explore different markets in the USA to be able to grow their business.

Many of these companies have been identified by our trade office in Monterrey, N.L. This office serves as a first point of contact when foreign companies are exploring expansions into the USA.

This office in Mexico promotes Edinburg in trade shows and networking events including site visits to companies with growth potential.

It’s a new trend we’re seeing emerging of Mexican manufacturers locating here which is a reverse concept of the trend that we’re familiar with of American companies locating in Mexico.

To us, it’s about maximizing this comparative advantage of our location to bring about new opportunities to facilitate future growth.

Ramiro Garza is the Executive Director for the Edinburg Economic Development Corporation. He is a Texas Border Business guest writer.

McAllen, TX Recognized as Community of the Year

McAllen recognized as Community of the Year
McAllen Economic Development Corporation Blog Post
October 12, 2009

The Texas Chapter of the American Planning Association recognized McAllen, TX as the “Community of the Year.” Planning department staff, along with city planning commissioners, headed to Galveston to receive the prominent award and to attend the annual TXAPA state conference.


In 2008, McAllen received recognition from TXAPA for Foresight McAllen, the city’s long-term comprehensive plan. Also, Sonia Falcon, chair of the Planning & Zoning Commission, was named Commission of the Year by TXAPA.


In photo (L-R): Xavier Cervantes, Neighborhood Planner; Julianne Rankin, McAllen Planning Director; Israel Juarez, Neighborhood Planner l; Pepe Cabeza de Vaca, Planning & Zoning Commissioner; and Miguel Martinez, Planner l.

 
 
 
 
 
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Advanced Manufacturing Talent Pipeline Runs Through Rio South Texas Region

Advanced Manufacturing Talent Pipeline Runs Through Rio South Texas Region
October 12, 2009
BusinessWire


MCALLEN, Texas--(BUSINESS WIRE)--The first step in creating a world class advanced manufacturing region starts with creating a talent pipeline. That pipeline is flowing through the Rio South Texas region thanks to the North American Advanced Manufacturing Research and Education Initiative.

“We’re developing human capital to form the talent pipeline,” explains Wanda Garza of South Texas College, who serves as executive officer for NAAMREI, a network that stretches across seven Mexican border counties.

The region’s community colleges, universities, public schools and other education entities are developing a talent network focused on advanced manufacturing. More than 60 private and public sector groups form the NAAMREI alliance, which includes economic development corporations, manufacturers, workforce agencies, and city and county governments.

“We see ourselves as a world leader in rapid response manufacturing,” Garza said, adding that the goal is to dramatically increase the manufacturing base that already exists in the region.

By “rapid response,” Garza means speeding up the time it takes to turn ideas into finished products. The focus is to help companies develop next-generation products for aerospace, automotive, industrial, medical, consumer electronics and other key markets.

Keith Patridge, CEO of the McAllen Economic Development Corporation, says NAAMREI is helping area manufacturing companies compete in the global arena.

More manufacturing opportunities mean more jobs for the region, says Patridge, which leads back to the need for a skilled workforce.

South Texas College’s Technology Campus, located in the McAllen Foreign Trade Zone, houses the NAAMREI headquarters. For the past nine years, STC has worked with area manufactures to provide workforce training in precision manufacturing, welding and other needed trades.

The Rapid Response Manufacturing Center at The University of Texas-Pan American is another education component. The center provides services and expertise in research, development and demonstration; education; and innovation and technology based entrepreneurship and business incubation.

NAAMREI’s talent pipeline doesn’t stop at the Mexican border. Talent also comes from neighboring border cities and other parts of Mexico.

Future plans include a research park for the region. The network approach has helped regional partners leverage $22 million in start up funds, including a $5 million U.S. Department of Labor WIRED grant and a $3 million Texas Workforce Commission Skills Development grant.

For more information, contact Wanda Garza, wandag@southtexascollege.edu, 956-872-2770; or visit www.naamrei.org.

Exciting Plans in Edinburg! A New Medical Conference Center and UTPA's Renovations to their Fine Arts Facility

Exciting Plans in Edinburg! A New Medical Conference Center and UTPA's Renovations to their Fine Arts Facility

Exclusive: UTPA announces new plans for fine arts facility

By Joey Gomez
Rio Grande Guardian


EDINBURG, Oct. 9 - Plans to build a standalone fine arts facility at the University of Texas-Pan American have been scrapped, according to university officials.



Earlier this week UTPA officials revealed that, instead, the university will renovate its current fine arts complex, possibly by late 2012 or early 2013. A market feasibility study previously conducted by UTPA found that the $40 million allocated to the university does not cover the cost of a proposed standalone facility.

“We are going to do a major renovation, the building will be completely gutted and it will have new mechanical systems, new acoustical systems, new lighting, and everything will be brand new,” said Marianella Franklin, UTPA’s director for sustainability programs who has been overseeing the project.

“We are really hoping we can increase the capacity as well. Based on the programming that we did, we are going to have a wonderful facility.”

Appeals by UTPA to key legislators in Austin failed during the 81st legislative session, when the university requested an increase of the total funds allocated for a new fine arts facility to $70 million. Franklin said the status of the current economy factored into the decision to renovate the current facility instead. The total cost of the facility is still not determined.

“We were looking at the possibility of having $70 million to build the new facility. We would have had to request additional monies or to do a campaign for additional funding and we opted, (differently) because of what is happening with the economy,” Franklin said. “We are very conscious of it, our solution is basically put our monies into the existing facilities and renovate it completely.”

Holzman Moss, the architecture firm selected to renovate the current facility, specializes in the design of fine arts facilities, according to Franklin. The firm designed the current Radio City Music Hall, the Brooklyn Children’s Museum and closer to home designed the Texas A&M University-Corpus Christi Performing Arts Center among many others.

Design and schematics for the renovation project at UTPA are expected within the next six to eight months, Franklin said. “The students are doing such wonderful job and they are in need of a facility,” she said. “This is an old facility, and if you take a look at all the facilities, we have over 51 buildings and of course we try to address the needs of our faculty and staff and most importantly our students.”

At least one more facility is planned in Edinburg by next year. In August, the City Council approved a development agreement between the city and Doctors Hospital at Renaissance to have the upcoming Edinburg Medical Conference Center operational within 18 months.

The 54,000 square foot medical conference center would generate about 293 jobs in the Rio Grande Valley. The facility would be comprised of a 552 seat conference room, a 620 seat capacity ballroom, and an 800 square foot state of the art auditorium that could be the home to the Rio Grande Valley Symphony Orchestra or ballet performances. A proposed hotel is also slated for construction at the facility.

DHR first unveiled its plans to the city for the proposed Medical Conference Center at a presentation by the Warren Group, principal architect of the facility on June 16.

At the meeting architects emphasized that the facility would provide a venue to the medical community to inform the Rio Grande Valley of medical resources and procedures available in the area. It would also support health awareness programs in a state of the art medical campus, and enhance medical education programs by partnering with local universities and colleges.

Franklin said UTPA’s market feasibility study intended to make sure that whatever venue selected by the university was not one that was going to compete with any other facility. A recent meeting between UTPA and DHR assured that there would be no competition between the two, Franklin said.

“This is a completely separate facility. We did not want to compete with the Dodge Arena, we have no intentions of competing with the (McAllen) Convention Center and we have no intentions of competing with this particular conference center or performing center that they will have at DHR,” Franklin said.

“We did meet with all the entities to make sure that at any time there would be no type of threat of competition with anyone. The meeting with the group from DHR took place not to long ago and it is for a separate purpose or function so by no means would we be competing in any form or fashion.”

Link to Rio Grande Guardian

Hilton resort to open in 2010 in South Padre Island, South TX | Rio Grande Valley

SPI Hilton resort to open in 2010

Antonio Vindell/Special to the Island Breeze
Link to Article 

Sometimes in the spring of 2010, visitors will be greeted by the newest hotel in this island resort on the Mexican Gulf that still has not fully recovered from the 2008 hurricane season.

The Hilton Garden Inn Beach Resort is set to add 156 rooms to the local lodging industry, giving vacationers another hotel choice.

The new facility is the first major full-service hotel and conference center to be built here within he last 30 years, Island officials said.

Dan Quandt, the executive director with the South Padre Island Convention & Visitors Bureau,described the hotel as a nice addition for the Island .

"For many years, we have had four major hotels here," he said, "So this is going to be the first conference hotel to be built here in quite a while."

The four hotels he was referring to the Isla Grande Beach Resort, the Sheraton, the Bahia Mar and the South Padre Beach Resort, formerly known as the Holiday Inn.

Quandt said only the Isla Grand and the Sheraton are up and running, while the two other have been closed since late July 2008 when Hurricane Dolly slammed into the Island.

"The reality is that we really need to think about the ones we lost," he said. "Those two hotels might never get back on the market."

While the Bahia Mar is getting a major face lift and it could open as early as March 2010, nothing has been done to the old Holiday Inn.

The new hotel, under construction across from the South Padre Island Convention Centre, is another project of Barry Patel, an entrepreneur who already operates the Best Western La Copa Beach Resort and La Quinta Beach Resort here.

The Hilton Garden Inn is going to be a fourstory,156-unit hotel equipped with a large meeting room that could be divided into three rooms. Patel could not be reached for comment, but a company spokesman said the hotel is scheduled to open in late February or in early March. "It's going to have 156 rooms," he said, "and more than 8,000 square feet of meeting rooms." The hotel is being constructed just outside the Town of South Padre Island limits, James Mitchim, the town's building department official said.

A building permit was issued by the Cameron County transportation department office in San Benito.

Although the 156 rooms will not quite make up for the nearly 400 rooms the Islands lost to Hurricane Dolly, but they will come in handy for visitors coming here in 2010.

Quandt said the Island has about 4,000 lodging rooms and added the Hilton Garden Inn is going to be a big plus for the Island.

"We are really excited that we are getting a new hotel," he said. "The Hilton Garden Inn is going to be our next full-service hotel."

Thursday, October 8, 2009

Valley Benefits from NAFTA

Valley Benefits from NAFTA
By Rafael Carranza
Action 4 News | Valleycentral.com

Tuesday, October 06, 2009 at 7:06 p.m.

Despite a severe recession in both countries, thousands of trucks will cross the U.S./Mexico border using one of the 10 functioning bridges in the Rio Grande Valley.


The trucks transport a variety of goods between both countries and Canada under the North American Free Trade Association, better known as NAFTA.

Gilberto Salinas is the vice president for the Brownsville Economic Development Council. He said the Valley has largely benefited from NAFTA, tripling in size and business in more than a decade. "The Rio Grande Valley, were doing ok, and ok is good right now,” he said. “If NAFTA was not here right now, if we did not have NAFTA we could be doing a lot worse." According to Salinas, the Valley has seen a 1 to 2 percent decline in business. He said the number of jobs lost is in the hundreds, what he referred to as a small number looking at the bigger picture.

The BDEC said they have noticed that for every job created in the Valley, seven are created in Mexico. But similarly...for everyone job that is lost on this side, seven jobs are lost across the border.  But for the everyday person, Salinas said the biggest impact NAFTA will have on them is in their wallets. "NAFTA has helped in reducing prices for the regular consumer."To him the bottom line is that NAFTA can only help the valley grow out of the recession and move forward.

Tuesday, October 6, 2009

Knowledge Center: Learn Which Factors Are Crucial in Office Space Decisions

What Office Tenants Want



Despite the fluctuating economy and current design trends, two factors remain constant when tenants select office space: cost and location. But in today's market, other factors also influence the decision-making process. From turnkey buildouts to shorter lease terms to adaptive work space, office tenants want flexibility, functionality, and responsiveness.

Tenants also want value, and a down market is a good place to find it. Due to the abundance of office space in most markets and many companies' consolidation of their employees into fewer square feet, most tenants today are spending less for their space, says Barry Spizer, CCIM, principal of SRSA Commercial Real Estate in Metairie, La. An exception is small tenants that have less negotiating leverage, so their costs can be somewhat higher, he says.

In today's environment, offering the best financial deal is no longer enough to secure tenants, since many “are more than willing to spend the money in order gain operating efficiencies,” says Gregory C. Hobbs, CCIM, owner of Olympic Properties in Raleigh, N.C. Instead, landlords need to educate tenants (and potential tenants) about the space's footprint, the potential costs over and above the lease price, and other factors that help them “make the best decision they can make,” says Kimberly Surratt, a senior project designer at Dallas-based WorkPlaceUSA.

On the other hand, knowing what tenants are looking for helps landlords anticipate their needs and keep space filled. “Landlords working hardest to stay informed are the ones who will keep cash flow high,” says Norman G. Marquardson, CCIM, an agent with Prime Commercial in Midvale, Utah.

Ready for Change “Flexibility seems to be the key word for the offices of the future because businesses are changing so fast,” says Michael Orr, architectural team leader and vice president of WorkPlaceUSA. Tenants view their companies as growing organisms, and they don't want spaces that inhibit growth. They prefer facilities that can be adjusted to fit their current and future business needs, from movable walls to buildouts.

“Landlords should remember to market their space as flexible,” Spizer says. Even if furniture already is in place, landlords should provide space-planning services to show how offices can be configured to meet tenants' needs, he says. Computer-aided drawings make it easy to generate space plans that illustrate how the new space will look and feel.

In today's market, “Tenants dictate exactly what they want,” and they are willing to pay for it if they have to, Marquardson says. Overall, improvement costs are going up. “Many owners are pushing those costs through to the tenant as part of their buildout cost,” Spizer says. “While allowances are increasing due to the competitive economics of office deals, tenants are still having to come out-of-pocket and pay for a portion of the buildout or at least amortize it on top of their rent.”

But tenant expectations vary from market to market. In Knoxville, Tenn., more tenants expect landlords to provide turnkey offices for new leases so they don't incur any out-of-pocket improvement costs, says Louise R. Fogarty, CCIM, CPM, leasing manager for Blue Ridge Development. “This is a more common concession than offering free rent or a reduction in the rental rate,” she notes. “Tenant improvement allowances are usually in the $12 per square foot to $20 psf range, but a turnkey buildout can average $22 psf to $32 psf depending on the level of finishes, so this can be a significant concession.”

No matter how the space is configured and who pays for improvements, leases should be as flexible as possible. Tenants are cautious about making long-term leasing decisions, especially until the economy stabilizes. They want “the flexibility to cancel or downsize, even if they have to pay a penalty to do so,” Fogarty says.

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Monday, October 5, 2009

Another Indication that the Rio Grande Valley is Weathering the Recession Better than Most of the Country

Another Indication that the Rio Grande Valley is Weathering the Recession Better than Most of the Country

McAllen credit rating upgraded
Standard and Poor's calls it the best in Rio Grande Valley

Nick Pipitone
The Monitor

McALLEN –- The city’s credit rating was recently upgraded by the financial services company Standard and Poor’s, another indication that the city and regional economy are weathering the recession better than most of the country.

S&P cited continued employment and population growth, an increasingly diversified economy, strong financial management policies and moderate overall debt levels as the primary reasons for upgrading the city’s rating two spots, from AA- to AA+, the second-highest possible rating, behind AAA.

Horacio Aldrete-Sanchez, S&P’s primary analyst on the McAllen rating, said the city has the highest rating in the Rio Grande Valley. It also brings the city in line with the state’s bigger metro areas and other mid-level U.S. metro areas S&P considers financially stable, like Knoxville, TN and Cincinnati, OH.

The city requested S&P re-visit their credit profile in August because they no longer had any outstanding debt bonds, which is what credit agencies usually rate, city Finance Director Jerry Dale said.

“I know the agencies have all been reviewing credit in light of what they’ve called the new international standards,” Dale said. “Because of that, I wanted them to look at the city to see where we were in comparison to others.”

The city will also be looking to issue approximately $14 million in debt to fund the new main library at North 23rd Street and Nolana, so will be soon accessing the credit markets again, Aldrete-Sanchez noted in the report S&P issued last month on the city’s new rating.

The higher credit rating is a “significant step” for the city, Aldrete-Sanchez said, and will mean a couple of things.

First, the city will be able to borrow money at a lower cost when looking to fund capital improvement projects, which could translate to savings of up to $1 million in the library bond transaction, City Manager Mike Perez said.

For residents, those savings should help the city keep its tax rates and utility fees low, Dale said.

The higher rating also can be used as a recruiting tool to draw companies looking to relocate.

“When (companies) look at a community, it’s important to them that it’s well-run, stable and tends to be pro-business, or at least not anti-business,” said Keith Patridge, president of the McAllen Economic Development Corporation. “To increase the credit rating for the city, it very clearly through a third party demonstrates that McAllen hits all three.”

The credibility of financial research and analysis companies like S&P and Moody’s took a hit during the economic meltdown last fall. Both agencies had several of the sub prime loans and bonds that contributed to the financial collapse rated high, sometimes at AAA. But the agencies’ track record on local government and municipal bonds is better, and most investors still look to them, said Ansley Chua, finance professor at the University of Texas Pan-American.

“People still trust them,” Chua said. “We basically have nobody else to grade them, so we kind of have to trust somebody.”

Dale said the city has been working to improve its credit profile for several years and reverse the misperception held by many investors that the Rio Grande Valley was “a collection of dusty little towns with no economic development and everybody starving to death.”

Since 1982, the city’s rating has improved from A-plus to AA-minus in 2004, to its AA-plus rating today.



—

Sunday, October 4, 2009

McAllen to launch major marketing campaign in U.S. and Mexico | NAI Rio Grande Valley

McAllen to launch major marketing campaign in U.S. and Mexico
By Steve Taylor
Rio Grande Guardian

McALLEN, Oct. 3 - McAllen civic and business leaders are set to mount a major marketing effort nationally, locally, and in Mexico.


Some aspects of the ad campaign were unveiled to chamber of commerce officials from the state of Tamaulipas by McAllen Chamber of Commerce President and CEO Steve Ahlenius. He did not say how much was being spent on the campaign.

“McAllen is going to be running an ad campaign along the Rio Grande Valley from Matamoros to Reynosa promoting McAllen as a destination for restaurants and shops within the next 90 days. We are also going to run some of that campaign in northern Mexico,” Ahlenius said, during a power-point presentation. “That’s going to shoehorn into a larger campaign that is going to happen nationally, both in Texas and the national market.”

Ahlenius made his remarks when his Chamber hosted a meeting of the Rio Grande Valley-Tamaulipas Chambers of Commerce group.

Ahlenius said the City of McAllen, McAllen Economic Development Corporation and the McAllen Chamber of Commerce would be jointly hosting news conferences in Saltillo, Monterrey, San Luis Potosi and Ciudad Victoria to promote the opening of the Anzalduas International Bridge.

“Obviously, those markets are critical to Mexican visitors coming here. We want them coming through the new bridge, through the Hidalgo Bridge, or any of the other bridges, that gets them to the U.S,” he said.

Part of the marketing strategy will include the promotion of McAllen as a growing destination for arts and entertainment. Ahlenius said the city has commissioned three different artists to design high quality pieces of art that will be displayed in different parts of the city. The money for this is coming for a $25,000 public art grant, he said.

In addition, McAllen will be hosting over 100 artists from across Mexico during an arts event last two and a half days next February. “It’s going to be fun. We are going to have music, it will be a family event and I think you are going to enjoy it,” Ahlenius said. Luis Cantu, a native of Houston who lived in Mexico for many years will be in charge of this project. Cantu is vice president of Community Development and Inter-American Relations for the Chamber.

There will also be a major “matchmaking” event to connect businesses in McAllen with businesses in Sinaloa, Mexico. “It is all about fostering business opportunities between our community and communities in Mexico,” Ahlenius said.

In addition to announcing the marketing campaign, Ahlenius spoke at length about a critical new role the chamber had identified for itself – providing added value to the group’s members and the wider community. “If we are not creating wealth or adding value to our members and to the business community then we have failed our mission as a business association,” he said.

Ahlenius said the days are long gone when the Chamber would put on an event and then go home saying, ‘that was a good event.’

“How do you know it is a good event? How do you measure success? Is it profitable?” Ahlenius asked. He said he tells folks that the McAllen Chamber is a non-profit in name only. “We are a business association run by business people. The expectation is that we are also profitable. When we do things we are not losing money, we are making money,” he said.

Ahlenius said his Chamber is also “highly productive” because it has to be. “We have got to produce and we have got to produce more with less,” he explained. He said he has a story he likes to tell to illustrate this point. Five years ago he visited Ireland to see a new Dell computer manufacturing complex. The plant manager explained that Dell’s goal in the next 18 months was to cut a billion dollars in expenses through gearing up the new factory “That’s phenomenal. I think our challenge as an operation is, how do we get more out of less - because everybody else is,” Ahlenius said.

Ahlenius listed some important attributes a chamber of commerce has to have, including high customer satisfaction, positive relationships, both inside and outside of an organization, and innovation. “Businesses create innovation. The challenge for chambers is to become innovative, to try new things, not to do the same things over again over again,” he said. A chamber can become irrelevant if it does the same things over and over, he said.

Ahlenius said there are five key areas the McAllen Chamber is focusing on to bring about added value to the community. The five are securing conventions, bringing tourists to the city, fostering creativity, fostering innovation, and entrepreneurial development.

With regard to the new $65 million convention center, Ahlenius said the aim is to book 20,000 hotel room nights a year for events connected with the center.

With regard to attracting tourists, the Chamber is specifically targeting two types, the Mexican national and the nature tourist, Ahlenius said. He pointed out that the Chamber has an office in Monterrey and that a “good deal of money” is spent on advertising aimed at Mexican nationals that could be spending a weekend in the city. “We feel very strongly that we have a lot of the restaurant and retail experiences that people are looking for,” Ahlenius said.

With regard to McAllen becoming home to a vibrant class of creative thinkers, Ahlenius cited Richard Florida’s book, The Rise of the Creative Class. In the book, Florida argues that artists, educators, scientists, engineers and the like are the driving force behind innovation, entrepreneurial activity and economic growth.

“The communities of 21st century that succeed will be the ones that foster arts; that foster creativity, those where people want to go to experience different things,” Ahlenius said.

The City of McAllen was catering to such people, Ahlenius said, pointing to Art Walk, an arts-related event that takes place on the first Friday evening of each month on Main Street. He also pointed to the live music on offer in Archer Park and the convention center. Another example, he said, is the creative incubator the McAllen Chamber runs, which has 16 different studios for graphic designers, photographers, filmmakers and other artists to work in. He said the Chamber has awarded $16,000 in grants to local artists over the last year.

A great example of creative people being a driving force in the economy, Ahlenius said, are the two guys that created You Tube in a garage in Palo Alto, California. About 18 months ago You Tube was sold for over a billion dollars, Ahlenius said. “Our board has made a commitment to do things that foster inventors, people who have new ideas, whether it is software, technology, etc. The idea is to get that concept from the garage to the market place,” Ahlenius said.

Focusing on innovation is also a key area, Ahlenius said. The Chamber is providing up to $10,000 in grants to someone who has a good idea that needs to get to a market place. That money can be used for patent searches, testing, prototype development, filings, etc. “The idea is to move that project along for them as far as what they are wanting to see happen,” Ahlenius explained.

Another area the McAllen Chamber is focusing on is entrepreneurship. Ahlenius said this is a critical component for any chamber. He said a small business grant would be awarded to a McAllen area business, probably within the next 60 days, worth up to $25,000. “The idea is to help to grow that small business,” he said. The Chamber also has an entrepreneurial boot camp that is run in conjunction with the University of Texas-Pan American. Ahlenius said this program helps put entrepreneurs in contact with investors who are looking at opportunities to help locally grown small businesses. Ahlenius also pointed to a business plan competition the Chamber runs with South Texas College. The student with the best business plan gets $1,000, the student with the second best business plan gets $750, and the third placed student gets $250. “We do that every semester. The idea is to get college kids thinking about starting their own business,” Ahlenius said.

Matchmaking events are also important to the McAllen Chamber. Recently, the Chamber hosted an event with the state of Veracruz. About 30 businesses from Veracruz and 15 from the Valley were matched to try to foster deals. “That’s what it comes down to. If we are not fostering those types of exchanges, if we are not providing those types of opportunities to our members to do business we have really missed the boat in terms of what we need to be doing in this community,” Ahlenius said.

One new program the McAllen Chamber will be launching, probably within the next 60 days, is helping Latinas who want to run their own business. The program is being launched in association with Wells Fargo Bank, which has chipped in $10,000. It will be called the Latina HOPE program. Hope stands for Home, Office, Part time, Entrepreneur. “It’s for women who are at the poverty level who, by having a home-based business, can make an additional $200 or $300 a month, to help supplement their income, from their homes. That idea was taken from a lot of businesses that we have seen in Mexico,” Ahlenius said.

Friday, October 2, 2009

IRS Rule Change Leads To Spike In Commercial Loan Modifications | NAI Rio Grande Valley

IRS Rule Change Leads To Spike In Commercial Loan Modifications

South Lake Tahoe, United States (IBwire.com - October 02, 2009) The IRS rule change issued on September 15, 2009 allows loan servicers and commercial property owners to agree on a workable modification before a default of the loan. Prior to this change, owners of commercial property could only get a small change in the terms because a major change would jeopardize the REMIC's tax exempt status.


REMIC's are essentially trusts that were established to purchase loans from commercial mortgage bankers. These trusts would then sell the income stream as an investment vehicle on Wall St to institutional and individual investors.

The market for CMBS investments broke down following the sub-prime crisis in 2008. The Federal Reserve has made efforts to restore liquidity to that market with the TALF (term asset lending facility) program which funds loans to owners of recently issued CMBS.

From 2005 - 2007 about 70% of commercial loans were packaged into CMBS. Many of these loans were made with loose underwriting standards to feed the demand for high yield investments. These loans typically have a 3 to 7 year maturity. With the commercial real estate price deflation that is occurring and the tightening of lending standards, property owners will have a hard time finding financing.

"We have seen an increase of 30% in lead production at commercialmodification.com since the IRS changed the rules two weeks ago" says Ted Schmidt, President of Leadsnet, Inc., a leading provider of commercial mortgage modification leads.

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