Over the past few months, City of Sugar Land
officials have taken proactive steps to assure that future
development in the city will not only be carefully considered from a
land planning standpoint, but also through the consideration of the
highest and best uses for the remaining undeveloped tracts. In this
effort, the city, along with the Fort Bend Economic Development
Council and corporate contributions from Alltel and Ondao Nalco,
commissioned Angelou Economics in Austin to perform a "target
industry study". In less than a decade, Angelou Economics has become
one of the largest and most respected economic development
consulting firms in the country. In addition to recognition for
writing the strategic plan for the State of Texas under George Bush,
the firm is highly regarded for its role as the architect in
developing the Austin area into one of the country’s top technology
regions.
The results of the Sugar Land study, focusing on
commercial development in TxDot tracts 3, 4, and 5 and the Fluor
tract along Highway 6, were revealed to City Council in late
January. TxDot tracts 3, 4, and 5 are the former prison tracts
between 59, Hwy 6, Hwy 90 and the Brazos River. The purchase rights
for these tracts were awarded to developer Newland Communities as
the top bidder in an auction concluded this past October. Amy
Holloway, Vice President of Economic Development for Angelou, told
council members that the Sugar Land study was unusual in that the
majority of the analysis that her firm had performed previously had
been for communities which were struggling economically and were
looking for recommendations for a turnaround. Angelou
representatives praised Sugar Land officials for being visionary and
for continuing to exhibit the type of leadership which has molded
Sugar Land into one of the most desirable communities in the
country. "It is much easier to plan for economic development from a
position of strength rather than a position of weakness".
The Angelou study identified high tech, high
growth, target industries which would create an economic base which
would position the city for success and produce the highest quality
of life in future years. The firms recommendations were based on its
analysis of the current business climate in the community and of
existing city assets which would be attractive to the cutting edge
technology, energy, biomedical and life science, and financial
services companies targeted. Those assets include a highly educated,
well paid, culturally diverse population, many of which are already
employed in medical, energy, and technology industries. Also
highlighted were Sugar Land’s exponential growth rate and the
quality of existing development, both of which would be attractive
to the targeted companies. Ironically, Holloway said one of Sugar
Land’s greatest weaknesses is its proximity to Houston, which is
generally viewed negatively by these same types of cutting edge
companies.
The manner in which this remaining 2,800 acres is
developed will have a significant impact on the future of Sugar
Land. Different land uses produce different revenues for the city.
The city could allow continued development focusing primarily on
residential projects, but a significant opportunity would be lost.
The tax base created by this type of development may not allow the
city to maintain the same level of services in the future and the
quality of life would decrease. The long term sustainability of the
development would be at risk. The Angelou representatives presented
three different land plans for the tracts. All three plans
represented an increase in commercial development ranging from two
percent (2%) to eight percent (8%) over existing Sugar Land planned
communities. The commercial development would not only be targeted
to the types of companies outlined above, but would be marketed to
attract users compatible with existing assets such as the University
of Houston and Town Center. Angelou also demonstrated the benefit of
a research center in Sugar Land, specifically proposing a Texas
Energy Center which could become a renowned offshore platform R
& D facility. Also suggested were facilities for nanotechnology
biomedical research. Rice University researchers met with Angelou
representatives to discuss this rapidly expanding area of biomedical
cancer research. All of these projects would bring a demand for
highly skilled and educated workers which would have a significantly
higher impact on the city economy than would alternative
retail/office development. When annexed, the 2,800 acres would
represent a twenty percent (20%) increase in land area for the city.
The economic impact to the city, however, would be double (revenue
would increase 100%). The Angelou study estimates that the three
land use plans presented would increase city revenues between $16
million and $26 million per year over development focusing primarily
on residential neighborhoods. At the city council meeting, Herb
Appel, president of the Fort Bend Economic Development Council noted
that these numbers were very significant in that they represented
annual recurring revenue.
While the Angelou study provides the city with
recommendations for what may be best for the development of the
remaining tracts from a city perspective, those recommendations must
be reconciled with the goals and desires of the land owner (Newland
Communities). Not coincidentally, both Newland, the city, and
Angelou have been working together to create a plan which will
satisfy both parties. The initial conceptual development plan
presented by Newland is very similar to one of the plans presented
to the city by Angelou Economics. In no small part due to the
visionary steps taken by City of Sugar Land staff and officials, the
eventual development of the TxDot tracts will not only be profitable
for Newland, but will also continue to position Sugar Land as one of
the leading communities in the country as both a place to live and a
place to work.