Tuesday, April 23, 2024
Looking to boost economic development in the area, the Gatesville City Council approved an application for a $200,000 grant that requires a $40,000 commitment from the city.
The $200,000 American Rescue Plan Economic Adjustment Assistance Act grant would pay for Gatesville to hire a consultant to create an economic development plan for the city.
A council resolution outlines a plan that would focus on economic resilience, which includes “identifying persistent economic challenges, development of early warning tools, creating flexibility and promoting a positive vision” for the community.
City Manager Bill Parry said if the grant is approved the economic development study would help Gatesville “put together a strategy. This is about taking care of small business and generate job creation.”
The two areas of focus would center on downtown development and also development along the Highway 36 corridor.
“I think it’s important for Gatesville and would recommend two lines of development (downtown and Highway 36),” Parry said.
“You’d think (those areas) could feed off each other,” said Councilwoman Meredith Rainer.
“I think so,” Parry said. “I would hope the consultant would recommend programs for small business development to take advantage of resources available.”
KEY AREAS FOR GROWTH
A previous economic study for Gatesville done by Charley Ayres, director of industry-education partnerships for Central Texas Workforce Solutions indicated that department stores and sporting goods stores were two areas in which the community was underserved and where it could potentially see growth.
Putting together a plan to focus on key areas for growth would be beneficial to the community, Parry said.
A memorandum to the Council noted “the lack of a comprehensive economic development plan that has broad community buy-in has been a deterrent to achieving our primary economic development goal – which is to increase the tax base in order to relieve some of the pressure associated with generating sufficient general fund revenues in order to provide (the best) level of service for our residents.”
One of the challenges Gatesville faces in its economic goals, according to its application for the American Rescue Plan money, is that “approximately one-half of the city’s population is incarcerated in five Texas Department of Criminal Justice facilities.”
The application also noted that while Gatesville experienced an increase in population between 2010 and 2020, it was “not at the rate seen along the (Interstate 35/Interstate 14) corridors.”
ECONOMY IN NEED OF BOOST
A report from the Comptroller’s regional report indicated the median household income in the region was $50,242, while the median household income for Gatesville was $42,122 — 67 percent of the national average and 84 percent of the regional average.
Another challenge cited in the application for funds is that “Gatesville is not significantly economically impacted by Fort Hood as the mission at North Fort Hood is to mobilize and demobilize reserve component soldiers who lack transportation, do not have family members, nor do they reside in the city.”
A third challenge listed is that “a large number of Gatesville residents are not employed in Gatesville, opting to commute greater distances for better-paying jobs.
Also, “the current low tax base … coupled with a low number of taxable commercial properties makes it difficult to generate enough revenue to pay for municipal services. The intent of this economic development strategy will be to determine the best use of the downtown area to create opportunities for small businesses/entrepreneurs, while identifying the ideal location for larger commercial businesses.”
The application further noted that the city grew by 928 residents from 2010 to 2020 despite the fact that there was a decrease of 544 prison inmates.
“Over the past 20 years, numerous businesses around the square have closed resulting in vacant buildings which are an eye-sore. There are several interested small business entrepreneurs who have said they cannot afford the capital cost associated with rehabilitating an existing building.”
The economic study would help identify ways these entrepreneurs could tap into funds to develop viable businesses that would provide the community with additional services and shopping while also helping to boost Gatesville’s tax base and revenue.
“Attracting businesses that are the right fit for the available workforce is critical to the success of the economic development strategy,” the application stated.
