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Economic Development
December 1, 2008
Bernanke: Economy will remain weak for a while
Federal Reserve Board Chairman Ben Bernanke said today that the economy will remain weak for the near term, but said recent government efforts had begun to shore up the financial markets and “greatly reduced” the risk that a “systemically important” financial institution would fail.
Speaking at the Greater Austin Chamber of Commerce economic forecast lunch, Bernanke said the economy was already under stress before the government launched a series of bailouts and other measures in August. He said recent signs indicated it had worsened since then, especially in terms of the job market and pressure on consumers.
But Bernanke said falling oil prices have alleviated some of the pressure on consumers, and for now eased concerns about inflation, which erodes household buying power.
And he said recent moves have promoted “a few tentative signs of stabilization” in the financial markets. But he said credit remains tight.
Bernanke began with a defense of government actions, starting with the $700 billion financial industry bailout, and specific actions to rescue individual firms, such as Bear Stearns and most recently, Citigroup.
The moves “have been controversial at times,” Bernanke said. “But in each case, we judged that the failure of the institution in question would have posed substantial risk” to the overall economy.
In cases where the government did not step in, such as Lehman Brothers, which was forced into bankruptcy, Bernanke said the Fed and other agencies did not have the right powers or authority to intervene.
Bernanke said recent moves have strengthened the ability of the Fed, Treasury Department and Federal Deposit Insurance Corp. to confront future circumstances where a huge nonbank financial institution was at risk of failing and hurting the economy.
But he said lawmakers and regulators needed to keep working to bolster the government’s ability to protect the economy against such circumstances.
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March 21, 2007
Chamber jobs initiative hits five-year goal in just three
A news release from the Greater Austin Chamber of Commerce
Opportunity Austin, the Austin Chamber’s five-year initiative aimed at creating 72,000 jobs and a $2.9 billion increase in payroll to the five-county region by the end of 2008, announced year-end numbers for 2006 today, surpassing the program’s goals for job creation and payroll two years ahead of schedule.
“I’m proud the City of Austin stepped up to be a part of Opportunity Austin three years ago. We clearly have the strongest metro economy in the country right now,” said Mayor Will Wynn of Austin. “Fundamentally, we can’t rest when it comes to job creation, because we will continue to grow.”
In 2006, 33,100 jobs were added to the Austin region, bringing the total to 80,900 jobs created since Opportunity Austin’s launch in 2003. This past year, the region saw a payroll increase of $1.4 billion, bringing the region to $3.5 billion and surpassing the original goal of a $2.9 billion payroll increase.
“This is an incredible effort, and we can’t afford to relax,” said Joe Holt, Chair of Opportunity Austin and Chairman of JPMorgan Chase-Austin, addressing the investors at the annual meeting. “Our work is never done and it will take all of us to continue this success.”
Corporate relocations to the Austin region numbered 36, including the much coveted Samsung next-generation semiconductor plant, the single largest foreign investment in the U.S. in 2006. Out-of-region company visits numbered 124, while Economic Development made 141 visits to other regions to ensure retention.
All of these developments are bringing Opportunity Austin closer to its 2008 goals, and as we approach the end of the first phase of Opportunity Austin, the Chamber plans to work with Market Street Services again to devise a new five-year goal. Opportunity Austin is focusing on target industries and specific regions in the U.S. where Austin has a distinct cost advantage.
Susan Davenport, Vice President of the Chamber’s Business Retention and Expansion Program, updated investors on efforts to work with existing businesses in the area. In 2006, the BR&E team undertook 119 business retention and expansion surveys throughout the five-county MSA. These companies informed the BR&E team of major issues hindering growth and development, including talent and workforce development, traffic congestion and non-stop air service to Austin. The Chamber will continue to focus on addressing these crucial issues to attract and retain companies in the region as well as ensure steady job growth.
Opportunity Austin includes 260 investors who contributed more than $14 million to the five-year initiative run by the Greater Austin Economic Development Corporation.
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March 20, 2007
Kyle company gets Emerging Technology Fund Grant
A news release from the Texas Governor’s Office
Gov. Rick Perry awarded $2 million to Xtreme Power Inc. of Kyle to develop a large scale energy load leveling system capable of efficiently and more cost effectively storing and delivering large quantities of electric power. The grants are awarded through the Texas Emerging Technology Fund (TEFT), a $200 million initiative created by the Texas Legislature in 2005 at the governor’s request.
“These funds allow Texas to invest in technologically innovative companies which are key to driving competition and advancement not only in our state’s robust economy, but also the global marketplace,” Perry said. “Continued investment in emerging technology creates more jobs and generates substantial capital investments, diversifying and enriching our economy.”
A 17-member advisory committee of high-tech leaders, entrepreneurs and research experts reviews potential TETF projects and recommends funding for projects to the Governor, Lieutenant Governor and Speaker of the House.
To date, the TETF has allocated $73.4 million in grant funds to Texas companies and universities in areas promoting:
Increasing research collaboration between public and private sector entities through new Regional Centers of Innovation and Commercialization where the seeds of an idea can take root in a university lab and eventually grow into a new product marketed by a new or expanding firm; Matching research grants provided by both federal and private sponsors to help innovators acquire the capital they need to bring their idea to life; and Attracting more top-notch research teams from other universities around the nation that will help put Texasuniversities on the cutting edge of technology research and development.
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January 3, 2007
Chamber names Gary Farmer Austinite of the Year
A news release from the Greater Austin Chamber of Commerce
Economic Development in Central Texas has flourished over the years thanks to the leadership of Gary Farmer who will be honored as the Greater Austin Chamber’s 2006 Austinite of the Year at its 129th annual meeting.
Farmer is president of Heritage Title Company of Austin and played key leadership roles within the Chamber for a number of years including Chair of the Greater Austin Economic Development Corporation, Vice-Chair of the Chamber’s Economic Development division and Chairman of Opportunity Austin. Farmer led the strategic planning and fundraising efforts for Opportunity Austin, the Chamber’s five year economic development plan to create 72,000 new jobs. With Farmer’s direction, Opportunity Austin fundraising efforts exceeded its goal by $3 million, bringing in a record-setting $14 million. Farmer has represented the Chamber around the world on marketing and business retention trips to places that include Korea, Japan, San Jose and New York City.
“Gary saw the tremendous need for this community to re-establish its focus on all aspects of economic development,” said 2006 Chamber Chairman Tim Crowley, President-Austin Community Banking Group, Frost Bank. “Due to his tireless leadership, Opportunity Austin has been an unprecedented success. The monies raised in this program have benefited many aspects of economic development, including educational initiatives and the diversification of this community’s employers and talent pool. “
Farmer will be recognized at the Chamber’s 129th Annual Meeting on February 6, 11:30 a.m.-1 p.m., at the Hilton-Austin, 500 East Fourth Street.
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December 22, 2006
Luling gets $1 million economic development grant
A news release from U.S. Rep. Lloyd Doggett
Washington, DC - Today, Congressman Lloyd Doggett announced that the City of Luling is receiving a $1 million grant he helped secure from the Economic Development Administration of the U.S. Department of Commerce.
“This grant continues Luling’s efforts to capitalize on our region’s success in the high-tech industry,” said Congressman Doggett, a senior member of the House Ways and Means Committee. “This grant is not just about building security devices, it is about creating the economic security working families in Luling need.”
“Our partnership with the EDA on this project will enable us to compete in the growing economic development arena in our area,” said Luling Mayor Mike Hendricks. “In the past we have missed opportunities because we did not have available land in a public Business-Industrial Park setting. By getting the infrastructure out to this new facility it will open the door for continued development opportunities.”
Today’s $1 million in federal funding is part of a $16 million package of combined private and community investment for the creation of Luling’s first-ever Business-Industrial Park. The Business-Industrial Park has already signed as its anchor-tenant Security Cameras Direct, a supplier of closed-circuit television security systems to museums, businesses, homes, and law enforcement agencies. Security Cameras Direct is expected to employ as many as 120 people at the Luling site.
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