Eight companies eyeing Waco would spend combined $2 billion

Eight businesses interested in Waco and McLennan County would invest more than $2 billion combined getting operational, McLennan County commissioners learned Tuesday.

County Judge Scott Felton said the figure is significantly higher than what county officials usually hear during monthly reports on Greater Waco Chamber of Commerce recruitment efforts.

Chamber vice president and industrial recruiter Kris Collins told commissioners eight prospects stand apart from the others as the most likely to have their plans come to fruition. Their combined investment “would be well above $2 billion,” Collins said. She told commissioners a decision by any or all to locate locally would expand the tax base and create well-paying jobs.

She did not identify the prospects during the public meeting, but presented commissioners a fact sheet listing the prospects, each assigned a code name, estimated investment values, and the month and year each started talks with the chamber. Many more than eight names appeared on the summary.

“I’m amazed at the demand for Texas locations among manufacturers, not only statewide but in our community, in McLennan County,” Felton said.

Collins said interest in local sites reflects well on city and county efforts to provide businesses with grants, tax breaks and tailored job training options.

The city and county each increased by $500,000 its contribution to the Waco-McLennan County Economic Development Corp. fund beginning Oct. 1. Each now contributes $3.75 million annually to the war chest tapped to sweeten deals with businesses moving here or expanding.

Collins said business operating locally are inclined to stick around and grow here, “if we treat them right.”

Waco, McLennan County and Texas State Technical College have agreed to build a 40,000- to 60,000-square-foot job training center in a Waco industrial park. They will spend more than $20 million completing the venture, with McLennan County pledging $8.4 million. TSTC will operate the center, which will focus on specialized training for employers in the area.

“I think it’s going to be a real asset, one more tool, one more feature,” Felton said. “As we bring manufacturing facilities to our community, we can provide training in new technologies and innovative ways to manufacture. TSTC can do that, so the company does not have to itself.”

The city and county have taken diverse approaches to funding.

“The city preferred to contribute over time. We (the county) said that’s fine, we have the money now,” Felton said. “TSTC made the land available, swapping a piece it owns near the old James Connally Golf Course site for one the Waco Industrial Foundation owned at everyone’s preferred location.”

In other action Tuesday, commissioners approved a grant to Howmet Fastening Systems, which will spend $9.1 million to install new machinery at 8001 Imperial Drive. The company, which since 1973 has operated under various names, including Alcoa Fastening Systems and Huck Manufacturing, will hire 17 new staffers, giving it 504, with new hires averaging $55,000 a year.

The county and city of Waco will give Howmet a little more than $100,000 in tax breaks on personal property between 2023 and 2027. Howmet will pay new employees at least $15 an hour, according to an information packet prepared for Waco City Council.

Collins said Howmet chose Waco over similar Howmet facilities in New York, where it operates in Rochester and Kingston, and in the United Kingdom.

Commissioners also agreed to spend $257,527 in American Rescue Plan Act funds to buy 101 new radios for volunteer fire departments in McLennan County. Waco attorney Mike Dixon said radios now used by 15 volunteer departments “are obsolete, with often poor reception.” He said the new Kenwood radios allow communication between departments, “critical when you have just four people show up to a fully involved house fire.”

Radios will be installed in firefighting units, not personal vehicles.