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[A.1 CALL TO ORDER, QUORUM DETERMINED, MEETING DECLARED OPEN.]
QUORUM DETERMINED.B1 REPORT ON ECONOMIC DEVELOPMENT DEPARTMENT ACTIVITIES.
[B.1 Report on Economic Development Department Activities. (Arthur Jackson, Chief Economic Development Officer)]
ARTHUR.WELL, THANK YOU FOR COMING OUT.
PRESENTATION AND EVEN A SPECIAL GUEST, WHICH SOME OF YOU HAVE SPOKEN WITH ALREADY.
BUT AS WE MOVED INTO THIS MONTH, THE TEAM CONTINUED TO OUTPERFORM ACROSS THE MAJORITY OF OUR KEY METRICS.
AS YOU CAN SEE, STARTING WITH OUR ANNOUNCEMENTS AND PROJECT WINS, WORKING YOUR WAY DOWN TO BUSINESS RETENTION VISITS.
THE TEAM IS REALLY KICKING BUTT THIS YEAR.
WE ALSO CONTINUE TO BE ON TRACK TO MEET OR EXCEED OUR BUSINESS RETENTION VISITS, AND VICTORIA HAS A GREAT UPDATE AND REPORT FOR YOU LATER THIS EVENING IN OUR PRESENTATION.
ALSO DURING APRIL, WE HAD TWO NOTABLE PROJECT ANNOUNCEMENTS WHICH YOU'LL SEE ON SCREEN.
THE FIRST WAS OF COURSE, OUR EXPANSION IN OUR PARTNERSHIP WITH PLUG AND PLAY, WHICH INCLUDED THE LAUNCH OF OUR CEDAR PARK AEROSPACE AND DEFENSE ACCELERATOR, WHICH WE BELIEVE WILL FURTHER STRENGTHEN THE CITY'S POSITION WITHIN THE REGION'S GROWING INNOVATION ECOSYSTEM AND SUPPORT THE WORK DIRECTLY.
THE CENTRAL TEXAS SPACEPORT DEVELOPMENT CORPORATION IS ENGAGED IN.
NOW, I'M GOING TO LEAVE YOU HANGING ON THE EDGE OF YOUR SEAT FOR A LITTLE BIT LONGER.
THE SECOND ANNOUNCEMENT IS TIED TO A SEPARATE PROJECT THAT I'LL INTRODUCE ON A LATER SLIDE.
SO KEEP YOUR YOU ON THE EDGE OF YOUR SEAT HERE.
THE NEXT COUPLE OF SLIDES HIGHLIGHT THE DEPARTMENT'S CONTINUED MARKETING AND BUSINESS DEVELOPMENT EFFORTS, PARTICULARLY WITHIN THE AEROSPACE AND DEFENSE SECTORS.
SCOTT HAD A CHANCE TO REPRESENT CEDAR PARK AT THE 41ST ANNUAL SPACE SYMPOSIUM, WHERE HE CONDUCTED 33 MEETINGS WITH INDUSTRY STAKEHOLDERS, COMPANIES AND PARTNERS TIED TO THE BROADER SPACE AND DEFENSE ECOSYSTEMS. HOWEVER, I'M GOING TO HAVE TO APOLOGIZE TO SCOTT, TO OUR FRIENDS FROM LIBERTY HILL AND LEANDER PICTURED.
BUT IN MY OPINION, THE HIGHLIGHT OF THIS TRIP WAS BEING ABLE TO HAVE COMMISSIONERS SIMPLY ALONG JOIN US FROM WILLIAMSON COUNTY.
OF COURSE, AS YOU'LL REMEMBER, CYNTHIA LONG PLAYED AN INSTRUMENTAL PART IN HELPING US FORM THE CENTRAL TEXAS SPACEPORT DEVELOPMENT CORPORATION BETWEEN THE CITY AND WILLIAMSON COUNTY.
NOW, DURING THEIR VISIT, I WAS ABLE TO HELP COORDINATE A MEETING AND FACILITY TOUR WITH A COMPANY CALLED NYX, PLEASE.
INITIALLY AT A SITE SELECTOR CONFERENCE OF ALL PLACES LAST YEAR IN ORLANDO, FLORIDA.
CHRISTIAN I KNOW ONE OF YOUR FAVORITE PLACES, VICTORIA AS WELL, BUT THIS WAS A SITE SELECTOR CONFERENCE.
I WAS NOT EXPECTING TO RUN INTO A COMPANY THAT OPERATES IN BILL SKIFFS.
SO AFTER THE SESSION THIS GENTLEMAN IS NAMED AFTER HE PRESENTED.
I JUST CASUALLY WALKED UP TO HIM, INTRODUCED MYSELF AND TOLD HIM WHAT WE WERE DOING AROUND THE CENTRAL TEXAS SPACEPORT DEVELOPMENT CORPORATION AND THAT AS SKIFF IS PLANNED FOR THIS DEVELOPMENT HERE IN CEDAR PARK, HE STOPPED ME.
HE SAID, I'M ALREADY FAMILIAR WITH CEDAR PARK.
I'M FAMILIAR WITH THE AUSTIN AREA.
WE'VE BEEN IN CONVERSATIONS WITH UT.
WE'RE ALSO VERY FAMILIAR WITH FIREFLY, AND HE SAID WE'D BE EAGER TO CONTINUE ON THOSE CONVERSATIONS.
AND RIGHT NOW, COMING OFF OF THAT TRIP, I DON'T KNOW, CHRISTIAN, IF YOU'VE EVER BEEN TOLD THAT YOU WERE BLOWN AWAY OR SOMEONE WAS BLOWN AWAY BY WALKING OUT OF A SKIFF, BUT THAT'S EXACTLY THE FEEDBACK THAT WAS SHARED BY SCOTT AND CYNTHIA.
I'VE BEEN LARGELY TOLD THERE CONCRETE BUNKERS AND CONCRETE AND DARK AND COLD, AND YOU DON'T WANT TO SPEND YOUR ENTIRE DAY IN SOME OF THOSE GIFTS.
I'VE NEVER BEEN IN ONE. BUT THE RECONNAISSANCE THAT THEY BROUGHT BACK, WHICH I THINK IS AN APPROPRIATE WORD FOR TONIGHT, WAS NOTHING SHORT OF REMARKABLE IN THAT THEY SAID WE SHOULD ABSOLUTELY PARTNER WITH THIS COMPANY IF WE MOVE FORWARD WITH A SKIFF AS PART OF THAT DEVELOPMENT.
SO WE'VE CONNECTED THEM WITH SOME OF OUR REAL ESTATE DEVELOPERS IN THE AREA, AND THEY'VE GONE THROUGH DESIGN PHASES AND HELPED THEM REALLY LOOK AT WHAT IT TAKES TO BUILD OUT A SKIFF.
AND I BELIEVE WE'RE CLOSE TO ACTUALLY SIGNING LOEWY WITH THE COMPANY TO HAVE THEM BUILD THE FIRST BUILDING OF THAT PHYSICAL SPACEPORT.
SO THANK YOU, SCOTT, AND THANK YOU, COMMISSIONER, ALONG FOR MEETING WITH THAT COMPANY AND TAKING THE TOUR.
AND FOR THOSE EVERYBODY FAMILIAR WITH THE SKIFF, DO I NEED TO GIVE THE DEFINITION? OKAY.
AND WE'RE GOING TO KEEP WITH THE THEME OF RIDDLES TODAY.
SO WE'RE GOING TO KEEP YOU ON YOUR SEAT.
CAN ANYONE TELL ME WHAT THIS NUMBER REPRESENTS ON BOARD MEMBERS I'LL GIVE YOU FOUR GUESSES.
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IT'S CLOSE.WHAT, ARE YOU NOT IN OUR BANK ACCOUNT? ALL RIGHT.
YOU HAVE TO GO EASY ON ME TODAY.
SO THIS REFLECTS THE TOTAL AMOUNT OF FLEX SPACE CURRENTLY PROJECTED TO BE DELIVERED IN CEDAR PARK OVER THE NEXT CALL AT 1 TO 18 MONTHS.
SO, TO GIVE SOME CONTEXT TO THIS SLIDE, PRIOR TO OUR LAST BOARD MEETING, STARTING VICE CHAIR BRIAN RICE RAISE AN IMPORTANT QUESTION TO SCOTT AND MYSELF REGARDING WHETHER THE CITY HAS ENOUGH AVAILABLE REAL ESTATE PRODUCT TO SUPPORT THE PROGRAMS AND INITIATIVES WE'RE ACTIVELY PURSUING.
MORE SPECIFICALLY, HE WAS CONCERNED ABOUT LAUNCHING AN AEROSPACE AND DEFENSE VERTICAL.
IF WE DID NOT HAVE THE REAL ESTATE TO SUPPORT THAT.
SO THAT CONVERSATION PROMPTED US TO TAKE A DEEPER LOOK AT OUR DEVELOPMENT PIPELINE AND OVERALL INVENTORY.
AND UNFORTUNATELY, BRIAN CAN'T BE HERE WITH US THIS EVENING, BUT I AT LEAST WANTED TO TAKE A FEW MOMENTS TO PROVIDE THE BOARD WITH AN UPDATE ON OUR CITY'S REAL ESTATE DEVELOPMENT ACTIVITY AND THE PRODUCT THAT IS ANTICIPATED TO COME ONLINE IN THE NEAR TERM.
SO FIRST UP IS THE DEVELOPMENT.
I THINK SOME OF YOU ARE FAMILIAR WITH THIS IN THE HISTORY.
OF COURSE, THIS DEVELOPMENT WAS ANNOUNCED BEFORE I STARTED, I BELIEVE SCOTT, MAYBE PRIOR TO YOURSELF AS WELL.
HOWEVER, THE GOAL FOR THIS DEVELOPMENT WAS ALWAYS TO GO SPEC, RIGHT? FAST FORWARD TO 2023.
THEY CAME TO THE CITY AND SAID, WE'RE NOT GOING TO BE ABLE TO DELIVER SPEC BUILDINGS.
WE'RE GOING TO NEED YOU TO BRING US A USER IN TOW OR BUILD A SUIT OPPORTUNITY, AS WE CALL IT, JUST DUE TO MARKET CONDITIONS.
WE'VE HAD MULTIPLE MEETINGS BETWEEN MYSELF, THE ENTIRE TEAM, SCOTT AND VICTORIA.
THEY'VE DONE A GREAT JOB OF PUTTING PROSPECTS IN FRONT OF PROLOGIS IN NORTHWEST DEPOT.
AND ALSO ONE OF THE OTHER THINGS THAT HAS REALLY HELPED OUT WITH OUR RELATIONSHIP WITH THIS DEVELOPER IS THE NEW CRM PLATFORM, WHICH CAN'T REALLY CALL NEW ANYMORE, THAT WE LAUNCHED IN THE SUMMER OF 2024, WHICH REALLY GAVE US THE ABILITY TO DRILL DOWN INTO THE REAL ESTATE NEEDS OF EACH RFP COMING THROUGH.
SO WE ARE ABLE TO TRACK THAT NOW AND PROVIDE THAT DATA ONGOING TO DEVELOPERS THAT ARE NEW OR EXISTING DEVELOPERS THAT ARE ALREADY WITHIN THE CITY OF CEDAR PARK.
SO WITH THAT SAID, WE HAVE BEEN TOLD THAT THEY ARE NOW COMING BACK AND THEY'RE WILLING TO DO SPEC.
SO YOU'LL SEE THAT THEY HAVE A PHASE ONE.
THIS WILL BE STARTING SOMETIME THIS SUMMER, AND THIS WILL BRING OVER 400,000FT² ACROSS THREE BUILDINGS.
NOW YOU SEE THERE IS A PHASE TWO, WHICH RIGHT NOW IS NOT PLANNED AS A SPEC DEVELOPMENT, BUT THIS WILL BRING ANOTHER THREE BUILDINGS TOTALING OVER 350,000FT² OF SPACE.
THE PHASE ONE WILL DELIVER SOMETIME IN Q1 OF NEXT YEAR.
IN ACCESS 183 FEELS LIKE WE JUST APPROVED THIS DEVELOPMENT DEAL YESTERDAY, BUT THIS WILL BE BRINGING IN OVER 265,000FT² OF SPACE.
AND IF YOU'LL REMEMBER, THIS DEVELOPMENT IS ALSO CONNECTING BELL TO 183 A ALONG THE FRONTAGE ROAD WITH IMPROVEMENTS TO CITY FACILITY DRIVEWAYS AS WELL.
THIS DEVELOPMENT IS ANTICIPATED TO START OR DELIVER IN Q2 OF 27.
AND I THINK PROBABLY ONE THAT YOU'RE MOST FAMILIAR WITH IS CEDAR TECH, ONE YOU'LL REMEMBER DALLAS BASED DEVELOPER HOLT LUNSFORD CAME IN, ACQUIRED THE PROPERTY FROM CORDOVA AND RIVERSIDE, WHO DEVELOPED THE PROPERTY JUST TO THE LEFT OUTSIDE OF VIEW OF THE SCREEN HERE, WHICH IS CALLED NEW HOPE CORPORATE PARK.
SO ESSENTIALLY THIS IS PHASE TWO OF THAT DEVELOPMENT.
THEY'RE BUILDING THREE BUILDINGS THAT TOTAL OVER 280,000FT².
IF YOU DRAW BY THEIR OWN SCOTTSDALE TODAY, IT LOOKS LIKE THE BUILDINGS ARE ALMOST READY TO MOVE IN. THAT'S HOW FAST ARE MOVING.
WE ALSO MAY HAVE A GENTLEMAN AND A COMPANY THAT WILL BE SIGNING A LEASE SOMETIME THIS WEEK OR NEXT, AND WILL BE THE FIRST COMPANY, HOPEFULLY TO TAKE DOWN SPACE IN THIS DEVELOPMENT LATE SUMMER THIS YEAR.
SO HOLT LUNSFORD HAS BEEN SO IMPRESSED WITH THE CITY, NOT ONLY OUR TEAM, BUT ALSO WORKING ACROSS OUR ENGINEERING DEPARTMENT, OUR DEVELOPMENT SERVICES DEPARTMENT THAT THEY WENT OUT AND ACQUIRED A SECOND PIECE OF PROPERTY, EVEN WENT THROUGH OUR PNC PROCESS.
AND THEY WILL BE BUILDING TWO BUILDINGS THAT TOTAL OVER 100,000FT² OF SPACE.
AND THIS WILL DELIVER IN Q3 OF 2027.
AND IF YOU RECALL, THIS IS JUST DOWN THE ROAD FROM THE CEDAR TECH ONE DEVELOPMENT OFF OF SCOTTSDALE IN THE FRONT EDGE OF 183 A.
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AND LAST, THE FREE HILL DEVELOPMENT WILL BRING TWO BUILDINGS TOTALING OVER 64,000FT² OF SPACE.BUILDING ONE WILL BE JUST OVER 28,000FT² AND 34,000FT² FOR THE SECOND BUILDING.
NOW, THIS IS ALSO A LOCAL AUSTIN BASED DEVELOPER, AND THEY HAVE AS WELL EXPRESSED STRONG INTEREST IN CONTINUING TO WORK WITH CEDAR PARK.
BEING SO IMPRESSED BY OUR TEAM, OUR CITY, AND OUR PARTNERSHIPS THAT THEY'RE ALSO IN DISCUSSIONS NOW TO ACQUIRE A SECOND PIECE OF PROPERTY TO BUILD A SIMILAR DEVELOPMENT.
NOW, IN ADDITION, FREE HILL, WE'LL BE HAVING A RIBBON CUTTING CEREMONY, AND I WANTED THE BOARD TO BE AWARE OF THIS.
IT'S CURRENTLY ANTICIPATED FOR JUNE 26TH AT 9 A.M..
OUR STAFF AND TEAM WILL CONTINUE TO KEEP THE BOARD UPDATED AS THOSE PLANS GET SOLIDIFIED.
IN CASE ANY OF YOU ARE INTERESTED.
AND AS I'LL CLOSE OUT ON THIS SLIDE, I DON'T HAVE A PARTICULAR SLIDE DEALING WITH THIS DEVELOPMENT, BUT I DO WANT TO LET THE BOARD KNOW THAT BIG REAL ESTATE GROUP THAT WE'VE STAYED IN CONSTANT CONNECTION WITH OVER THE LAST COUPLE OF YEARS, PROVIDING SOME OF THAT DATA THAT I MENTIONED FROM OUR CRM PLATFORM OVER THE LAST 24 MONTHS OR SO IN OUR PROJECT PIPELINE, RECENTLY REACHED OUT PROBABLY ABOUT A MONTH OR SO AGO, AND SAID THEY'RE IN ACTIVE NEGOTIATIONS FOR A TRACT OF LAND HERE IN CEDAR PARK TO DEVELOP WHAT LOOKS LIKE COULD BE 200,000 ADDITIONAL SQUARE FEET OF FLEX LIGHT INDUSTRIAL SPACE HERE FOR CEDAR PARK.
AND REALLY, AGAIN, I'VE SAID IT BEFORE, BUT I'LL SAY THIS IS IN LARGE PART SCOTT AND VICTORIA'S WORK AND PROSPECTS IN FRONT OF DEVELOPERS, WHICH GIVES US A REALLY GOOD REPUTATION IN THAT REAL ESTATE REALM.
BUT IT ALSO IS A TESTAMENT TO US BEING ABLE TO UTILIZE THE TOOLS, THE DATA, AND MORE IMPORTANTLY, BEING ABLE TO SHARE THAT DATA CONFIDENTIALLY WITH DEVELOPERS SO THEY CAN MAKE THE CASE TO THEIR EXECUTIVE TEAMS ABOUT WHERE THEY'RE GOING TO BUILD NEXT.
SO THANK YOU, TEAM, FOR ALL YOUR COMMITMENTS.
RIGHT? I'VE KEPT YOU WAITING LONG ENOUGH.
SO OUR OTHER APRIL COMPANY ANNOUNCEMENT IS CALLED.
I WAS TOLD THIS IN JAPAN LAST YEAR.
SO I THINK THEY PRONOUNCE IRON IAN.
THIS IS A VERY LARGE JAPANESE GLOBAL COMPANY.
THEY WILL PRIMARILY BE OPERATING IN THE SEMICONDUCTOR SPACE HERE IN THE AUSTIN AREA.
THEY FIRST CAME IN ORIGINALLY WITH THE FAB, THE SAMSUNG FAB IN PALMER LANE IN AUSTIN.
SO THEY'RE KIND OF A OG, IF YOU WILL, TO THE SEMICONDUCTOR INDUSTRY HERE WITHIN THE AUSTIN AREA.
BUT A LITTLE BIT MORE ABOUT NISSAN IAN AS THEY PRONOUNCE IT IN JAPAN.
BUT THEY ARE AN EQUIVALENT SUPPLIER AND SUPPORT COMPANY FOCUSED PRIMARILY ON ION IMPLANTATION SYSTEMS USED IN CHIP MANUFACTURING.
NOW, I DON'T KNOW WHAT ANY OF THIS MEANS WHEN I WAS TALKING WITH THE COMPANY AND VISITING WITH THEM, BUT ESSENTIALLY WHAT THAT MEANS IS IRON IMPLANTS.
THEY ARE HIGHLY SPECIALIZED SEMICONDUCTOR FABRICATION TOOLS USED TO.
AND I TOLD YOU YOU'RE GOING TO HEAR THIS TERM AGAIN TONIGHT.
DOPE SILICON WAFERS WITH IONS TO ALTER ELECTRICAL PROPERTIES OUT OF CONTEXT DURING CHIP PRODUCTION.
SO THE TERM DOPE DOES NOT MEAN WHAT WE TRADITIONALLY THINK IT MEANS.
ESSENTIALLY, IT MEANS INTENTIONALLY ADDING TINY AMOUNTS OF IMPURITIES TO SILICON TO CHANGE ITS ELECTRICAL BEHAVIOR.
PURE SILICON, WHICH I DIDN'T KNOW.
THIS PURE SILICON BY ITSELF IS ONLY MODERATELY CONDUCTIVE.
MODERN CHIPS ONLY WORK BECAUSE ENGINEERS ARE ABLE TO PRECISELY ALTER THE SILICON PROPERTIES. DOES THAT THEY RELOCATED BUSINESS DEVELOPMENT TEAM SERVICES INSTALLATION AND SUPPORT TEAM OUT OF THIS OFFICE.
THEY'VE SIGNED A LEASE TO DO ABOUT 15 JOBS, ROUGHLY $500,000 IN CAPITAL INVESTMENT FOR 6000FT² AT THE FREE HILL SITE.
THAT WAS ON THE PREVIOUS SLIDE.
HOW WE GOT THIS PROJECT AGAIN, WORKING CLOSELY WITH OUR DEVELOPMENT PARTNERS, FREEHILLS ACTUALLY CONNECTED US WITH THE COMPANY.
THEY WILL HAVE A COUPLE OF CONVERSATIONS WITH SOME OF THEIR SITE LEADERSHIP, WALK THROUGH INCENTIVES, REALIZE THAT IT PROBABLY WASN'T GOING TO BE SOMETHING THAT WAS POSSIBLE GIVEN THE SIZE AND SCOPE OF THEIR PROJECT, BUT WE WERE ABLE TO HAVE ENOUGH CONVERSATIONS TO CONVINCE THEM THAT CEDAR PARK WAS THE RIGHT PLACE FOR THEM TO DO BUSINESS AND TO LOCATE THEIR NORTH AMERICAN HEADQUARTERS.
SO JOIN ME IN WELCOMING NISSAN IRON EQUIPMENT, AND I'LL HAVE TO SAY, THIS IS OUR SECOND LARGE GLOBAL JAPANESE COMPANY HERE, ALONG WITH TDK.
SO AND WITH THAT SAID, MADAM CHAIR, THAT CONCLUDES MY PRESENTATION AND HAPPY TO ANSWER ANY QUESTIONS BEFORE WE KICK IT OVER TO WHAT YOU'RE REALLY HERE TO SEE, WHICH IS ITEM B2.
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MORE EXCITING STUFF.[B.2 Report on Economic Development Department Activities. (Victoria Dunlap, Economic Development Manager)]
AS I CONTINUE TO GROW IN THIS ROLE, I APPRECIATE THE OPPORTUNITY TO SHARE UPDATES WITH THIS YEAR'S PROGRESS.KEY TRENDS EMERGING WITHIN OUR BUSINESS COMMUNITY AND HOW WE'VE BEEN SUPPORTING EMPLOYERS THROUGH YOUR WORKFORCE DEVELOPMENT, STRATEGIC PARTNERSHIPS, AND CONTINUED BUSINESS GROWTH.
SO THIS SLIDE PROVIDES A SNAPSHOT OF THE ACTIVITY AND EMPLOYER ENGAGEMENT ACROSS MULTIPLE INDUSTRY SECTORS FROM OCTOBER 1ST THROUGH APRIL 30TH.
WITHIN THAT PERIOD OF TIME, I HAVE MET WITH 39 EMPLOYERS.
THE STRONGEST ENGAGEMENT THIS YEAR HAS COME FROM LIFE SCIENCES, ENERGY AND ADVANCED MANUFACTURING, ALONG WITH A RENEWED FOCUS ON RETAIL TO STRENGTHEN THE RELATIONSHIP WITH OUR MAJORS SALES TAX PRODUCERS AMONGST THE COMPANIES IN THE OTHER CATEGORY.
THE OTHER CATEGORY REFLECTS SEVERAL EMPLOYERS IN SECTORS SUCH AS RECRUITING, CONSULTING SERVICES, FURNITURE, HOSPITALITY AND A CO-WORKING AND OFFICE SPACE.
ONE OF THE KEY TRENDS ACROSS NEARLY ALL SECTORS IS A CONTINUED FOCUS ON WORKFORCE DEVELOPMENT, OPERATIONAL EFFICIENCY AND PARTNERSHIP OPPORTUNITIES.
THESE CONVERSATIONS HAVE HELPED IDENTIFIED BOTH EMPLOYER CONCERNS AND OPPORTUNITIES FOR STRONGER COLLABORATION WITH EDUCATION, WORKFORCE AND CITY PARTNERS.
NEXT, WE'LL LOOK AT THE BREAKDOWN OF FULL TIME EMPLOYEES BY EMPLOYER SIZE.
IN THIS GRAPH, EMPLOYERS ARE CATEGORIZED INTO THREE GROUPS.
101 TO 300 EMPLOYEES AND 301 PLUS EMPLOYEES.
THE MAJORITY OF OUR EMPLOYERS, 83% OR 31 COMPANIES FALL WITHIN THE 1 TO 100 EMPLOYEE RANGE.
ANOTHER 7%, REPRESENTING THREE EMPLOYERS, FALL WITHIN THE MEDIAN 100 TO 100 AND 1 TO 300 EMPLOYEE CATEGORY.
AND FINALLY, 10% OR FOUR EMPLOYEES HAVE MORE THAN 301 FULL TIME EMPLOYEES WHEN COMPARED TO FY 2025, WE CONTINUE TO SEE A STRONG PRESENCE OF SMALL TO MID-SIZED EMPLOYERS WITHIN OUR COMMUNITY.
HOWEVER, WE HAVE ALSO SEEN A 15% INCREASE IN LARGE EMPLOYERS OPERATING WITHIN THE CITY, REFLECTING CONTINUED ECONOMIC GROWTH AND BUSINESS EXPANSION.
WHEN EMPLOYERS WERE ASKED ABOUT THEIR BUSINESS OUTLOOK OVER THE NEXT 12 MONTHS, THE RESULTS REFLECTED IN OVERWHELMINGLY POSITIVE SENTIMENT.
FEWER THAN FIVE EMPLOYERS REPORTED A NEUTRAL OUTLOOK, AND NOTABLY, NO EMPLOYERS INDICATED A NEGATIVE OUTLOOK FOR THE COMING YEAR.
SOME OF THE POSITIVE FEEDBACK INCLUDED.
A LOCAL DISTRIBUTION EMPLOYER SHARED THAT CONTINUED CORPORATE GROWTH THROUGHOUT THE REGION HAS INCREASED ACCESS TO NEARBY CLIENTS, REDUCING THE NEED TO PURSUE BUSINESS OPPORTUNITIES OUTSIDE OF THE CEDAR PARK AREA.
A LIFE SCIENCE EMPLOYER HIGHLIGHTED A STRONG UNIVERSITY PARTNERSHIP FOR RESEARCH AND INTERNSHIP PROGRAMS AS A KEY FACTOR SUPPORTING FUTURE WORKFORCE GROWTH AND BUSINESS EXPANSION OPPORTUNITIES.
ADDITIONALLY, A FINANCIAL SERVICE EMPLOYER NOTED THAT INVOLVEMENT WITH THE CHAMBER AND ENGAGEMENT WITH THE CITY HAVE STRENGTHENED BUSINESS RELATIONSHIPS AND INCREASED AWARENESS OF LOCAL RESOURCES AND NETWORKING OPPORTUNITIES WITHIN OUR COMMUNITY.
OTHERS WITH A MORE NEUTRAL OUTLOOK PARK, HOWEVER, INCREASED THE NEED FOR CONTINUE MARKET ANALYSIS AND CUSTOMER POSITIONING STRATEGIES WITHIN THE FUTURE.
AT ADVANCED MANUFACTURING, EMPLOYERS SHARE THAT ORGANIZATIONAL RESTRUCTURING AND SIGNIFICANT WORKFORCE DEMANDS HAVE CREATED A SHORT TERM OPERATIONAL CHALLENGE.
DESPITE THIS, THEY REMAIN OPTIMISTIC THAT LONG TERM PARTNERSHIPS AND WORKFORCE INITIATIVES WILL SUPPORT THEIR FUTURE GROWTH.
OVERALL, WHILE EMPLOYERS IDENTIFIED SOME WORKFORCE AND OPERATIONAL CHALLENGES, BUSINESS SENTIMENT ACROSS THE COMMUNITY REMAINS HIGHLY POSITIVE, WITH AGAIN NO EMPLOYERS REPORTING NEGATIVE OUTLOOK.
I WANTED TO START BY NOTING NOT ONLY RESPONDED TO THIS QUESTION RELATED TO AI, LARGELY DUE TO THE UNCERTAINTY AROUND AI CURRENTLY AND HOW IT WILL IMPACT THEIR EMPLOYMENT IN THE FUTURE.
SO THROUGH CONVERSATIONS, I'M SEEING THAT AI IS INFLUENCING HOW COMPANIES OPERATE, BUT IT'S NOT CURRENTLY RESULTING IN WIDESPREAD WORKFORCE REDUCTIONS AS OF TODAY.
THE MAJORITY OF EMPLOYERS REPORTED THAT AI HAS EITHER NOT SIGNIFICANTLY CHANGED THEIR WORKFORCE YET, OR THAT IT'S PRIMARILY CHANGING HOW WORK IS BEING COMPLETED, RATHER THAN REDUCING PHYSICAL STAFF COUNT.
ADVANCED MANUFACTURING EMPLOYERS SHARED UNCERTAINTY REGARDING THE FUTURE STRUCTURE OF THEIR HR AND RECRUITING FUNCTIONS DUE TO RAPID ADVANCEMENT OF AI AND WORKFORCE AUTOMATION.
THE EMPLOYER NOTED THAT WITHIN THE PAST SIX MONTHS, ALL DEPARTMENTS HAVE TRAINED ON NOT ONE, BUT THREE AI PLATFORMS TO SUPPORT THEIR DAY TO DAY OPERATIONS.
A SMALLER NUMBER OF EMPLOYERS INDICATED THAT AI HAS CONTRIBUTED TO CONSOLIDATION OR OPERATIONAL EFFECTIVENESS, PARTICULARLY WITHIN THE REPETITIVE REPETITIVENESS OR ADMIN FUNCTIONS OR THOSE TYPES OF ROLES.
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WHAT I'M HEARING MOST CONSTANTLY IS THAT EMPLOYERS ARE SHIFTING TOWARDS PRODUCTIVITY, EFFICIENCY AND UPSKILLING.COMPANIES ARE INCREASINGLY SEEKING WORKERS WHO CAN ADAPT TO NEW TECHNOLOGIES AND UTILIZE AI, RATHER THAN TAKING OUT EMPLOYEE COUNT.
THIS REINFORCES THE IMPORTANCE OF WORKFORCE DEVELOPMENT AND DIGITAL LITERACY TO CONTINUE PREPARING OUR REGIONAL WORKFORCE FOR THE INVOLVING BUSINESS MEANS AT THIS CURRENT STAGE OF OUR EMPLOYERS.
THE MAJORITY OF EMPLOYERS I MET WITH ANTICIPATED SIMILARLY AI WERE TASK AUTOMATION THEN HAVE IMMEDIATE IMPACT TO OVERALL HEADCOUNT.
THIS SUGGESTS THAT BUSINESSES ARE VIEWING AI MORE AS A TOOL TO ENHANCE THEIR OPERATIONS WITH THEIR CURRENT EMPLOYEES, RATHER THAN DIRECT WORKFORCE REPLACEMENT.
SEVERAL EMPLOYEES INDICATED THEY DO NOT YET EXPECT AI TO SIGNIFICANTLY IMPACT THEIR WORKFORCE, WHILE OTHERS EXPRESSED OVERALL UNCERTAINTY HOW AI WILL SHAPE STAFFING NEEDS OVER THE NEXT 2 TO 3 YEARS.
THAT UNCERTAINTY IN CERTAINTY ITSELF IS IMPORTANT AND REFLECTS THE RAPID PACE IN WHICH TECHNOLOGY IS ADOPTING AND EVOLVING OUR INDUSTRIES.
ONE LOCAL LIFE SCIENCE EMPLOYER MENTIONED THAT THEY ARE TAKING AWAY THE NEEDS FOR INTERNS BECAUSE OF THE TASK AUTOMATION CAPABILITIES THAT THEIR AI PLATFORM CAN DO.
THEY ARE UNSURE WHAT THIS WILL LOOK LIKE WITHIN THE NEXT 2 TO 3 YEARS, BUT AS FOR NOW, THEY ARE LOOKING AT TAKING AWAY THAT INTERN ROLL OVER.
OUR EMPLOYERS ARE STILL NOTING THAT AI ADVANCEMENT WILL PLAY A PART IN THEIR COMPANY, BUT ARE UNSURE LONG TERM WHAT THAT CAN LOOK LIKE.
THIS IS OUR FIRST FISCAL YEAR, TRACKING THE CHANGES OF AI AND THE FUTURE IMPACT THAT IT MAY MAKE.
AS I CONTINUE TO MONITOR THESE TRENDS, I WILL KEEP YOU ALL POSTED HOW IT AFFECTS HEADCOUNT WITH OUR EMPLOYERS.
AS PART OF THE EMPLOYER OUTREACH PROCESS, SEVERAL PROMINENT THEMES AND KEY INSIGHTS EMERGE REGARDING CHALLENGES WITHIN OUR BUSINESS COMMUNITY.
THE FOLLOWING INSIGHTS ARE NOT DIRECT EMPLOYER QUOTES, BUT FAIR PARAPHRASE STATEMENTS FROM MY INTERVIEWS.
A LOCAL IT EMPLOYER REPORTED THAT A RISING ONBOARDING AND TRAINING COSTS, COMBINED WITH RAPID ADVANCEMENT IN AI, MAY REDUCE THE NEED FOR CERTAIN ENTRY LEVEL POSITIONS AS ROUTINE FUNCTIONS BECOME MORE INCREASINGLY AUTOMATED.
A RETAIL EMPLOYER EXPRESSED CONCERNS THAT ONGOING TRAFFIC CONGESTION AND CONSTRUCTION ACTIVITY IN THE AREA ARE NEGATIVELY IMPACTING CUSTOMER ACCESS AND OVERALL BUSINESS ACTIVITY.
AND LASTLY, AN IT EMPLOYER REPORTED RISING SALARY.
COMPETITION WITHIN THE GREATER AUSTIN MARKET IMPACTS THEIR COST TO RECRUIT TALENT.
WHILE EMPLOYERS IDENTIFIED SEVERAL CHALLENGES IN AREAS OF CONCERN OUTREACH AND ALSO HIGHLIGHTED WE ALSO HAVE TRENDS IN SUCCESSES WITHIN THE BUSINESS COMMUNITY.
I DID WANT TO NOTE THAT WITHIN THE 39 BRS THAT I DID, THERE WERE 227 STRENGTHS CHOSEN.
THAT MEANS WITHIN THE 39 COMPANIES I MET WITH, THEY CHOSE MORE THAN ONE STRENGTH, ROUGHLY ABOUT SIX STRENGTHS PER COMPANY.
ONE OF THE EMPLOYERS STATED A LIFE SCIENCE COMPANY SECURED A SEPARATE GRANT.
SEPARATE STANDS FOR CANCER PREVENTION AND RESEARCH INSTITUTE OF TEXAS, A $4 MILLION.
THIS SUPPORTED CONTINUED RESEARCH AND POSITIONED THE COMPANY FOR POTENTIAL FUTURE EXPANSION.
A DISTRIBUTION EMPLOYER WAS CONNECTED WITH DEVELOPMENT SERVICES.
OUR AMAZING DEVELOPMENT SERVICES TEAM TO ADDRESS QUESTIONS RELATED TO ZONING AND SPACE REQUIREMENTS, RESULTING IN CROSS-DEPARTMENTAL COLLABORATION THAT SUPPORTED THE EMPLOYER IN IDENTIFYING THE BEST COURSE OF ACTION.
AND LASTLY, THROUGH CONNECTIONS FACILITATED BY CP WORKS IN OUR DEPARTMENT AND ENERGY EMPLOYER PARTNERED WITH ACC AUSTIN COMMUNITY COLLEGE TO EXPLORE COLLABORATIONS ON HVAC AND ENERGY CURRICULUM DEVELOPMENT PIPELINES AND PARTICIPATION ON ADVISORY BOARD TO SUPPORT ONGOING INDUSTRY ALIGNMENT.
THIS YEAR, A KEY FOCUS HAS BEEN STRENGTHENING OUR EMPLOYER ECOSYSTEM BY INTENTIONALLY CONNECTING BUSINESSES WITH EDUCATION AND WORKFORCE PARTNERS ACROSS THE MAJOR INDUSTRY CLUSTERS.
TO DATE, WE HAVE FACILITATED 45 STRATEGIC CONNECTIONS, NOTING THAT SEVERAL EMPLOYERS ENGAGED IN MULTIPLE PARTNERSHIP REQUESTS.
THESE CONNECTIONS SPAN SEVERAL KEY CATEGORIES EDUCATION PARTNERS, SO LIST AND TECHNICAL CERTIFICATION PROGRAMS FOCUS ON CTE PROGRAM ALIGNMENT AND COURSE COLLABORATION.
OUR VETERANS TRANSITION PROGRAM AT FORT HOOD SUPPORTED WORKFORCE TRANSITION AND VETERAN EMPLOYMENT PATHWAYS.
UNDERREPRESENTED TALENT IS OUR 18 PLUS POPULATION WITHOUT A POST-SECONDARY EDUCATION.
CONNECTING OUR EMPLOYERS WITH ALTERNATIVE TALENT PIPELINES.
OUR CROSS INDUSTRY EMPLOYER COLLABORATION INCLUDES SERVICE EXCHANGES, PROJECT BASED PARTNERSHIPS, AND SHARED INITIATIVES BETWEEN BUSINESSES WITHIN OUR COMMUNITY.
AND LASTLY, THE CITY AND PUBLIC SECTOR SERVICES, PROVIDING EMPLOYER SUPPORT THROUGH OUR DEVELOPMENT SERVICES AND CROSS ASSISTANCE TO APPROVE AND ADDRESS BUSINESS NEEDS OR EXPANSION OPPORTUNITIES.
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THE INTRODUCTIONS MADE BY OUR PROGRAM AND THE RESULT OF OUR SURVEYS ARE A STRONG INDICATOR THAT OUR ENGAGEMENT EFFORTS ARE WORKING, AND OUR MEANINGFUL CONNECTIONS ARE BEING ESTABLISHED BETWEEN EMPLOYERS AND WORKFORCE PARTNERS THROUGHOUT THE YEAR.WE'RE EXCITED TO PRESENT OUR SECOND ANNUAL CP WORKS.
WE'RE PLEASED TO WELCOME KEYNOTE SPEAKER MARK PERNA AND ACTUALLY RECOGNIZED SPEAKER, AUTHOR, WORKFORCE DEVELOPMENT EXPERT SPECIALIZING IN EDUCATION TO CAREER ALIGNMENT.
HE PARTNERS WITH COMMUNITIES, EMPLOYERS AND EDUCATION SYSTEMS ACROSS THE COUNTY, SORRY ACROSS THE COUNTRY TO BRIDGE THE GAP BETWEEN EDUCATION AND INDUSTRY NEEDS.
HIS WORK FOCUSES ON STRENGTHENING TALENT PIPELINES AND PREPARING STUDENTS AND JOB SEEKERS FOR HIGH DEMAND AND FUTURITY CAREERS.
THIS YEAR'S PROGRAM WILL FEATURE ONE PANEL HIGHLIGHTING STUDENTS FROM SEVEN OF OUR EDUCATION PARTNERS AND TRAINING PROVIDERS.
THESE STUDENTS HAVE PARTICIPATED IN PROGRAMS ALIGNED WITH OUR KEY INDUSTRY CLUSTERS IN CEDAR PARK, AND ARE EITHER CURRENTLY EMPLOYED FULL TIME IN THESE FIELDS, OR SENIORS ACTIVELY TRANSITIONING INTO THE WORKFORCE AFTER GRADUATION.
WHILE LAST YEAR FOCUSED ON IDENTIFYING AND SHOWCASING THE RANGE OF EDUCATION AND TALENT PROGRAMS, THIS YEAR WILL CENTER ON REAL WORLD OUTCOMES, HIGHLIGHTING HOW THESE PARTNERSHIPS DIRECTLY PREPARE OUR STUDENTS FOR THE REAL WORLD AND BENEFITING OUR EMPLOYERS.
FINALLY, ALL EMPLOYER ATTENDEES WILL BE SEATED BY INDUSTRY CLUSTER BASED ON THEIR RCP SELECTIONS.
OVER THE PAST MONTH, I'VE WORKED CLOSELY WITH EIGHT WORKFORCE AND EDUCATION PARTNERS TO ALIGN SEATING GROUPS BY INDUSTRY SECTOR.
THIS STRUCTURE IS DESIGNED TO ENCOURAGE TARGETED CONVERSATIONS AROUND CURRENT AND FUTURE WORKFORCE NEEDS, ADVISORY BOARD PARTICIPATION, CURRICULUM DEVELOPMENT, AND OPPORTUNITIES TO STRENGTHEN AND EXPAND PROGRAM ALIGNMENT AND PARTNERS IN OUR CITY.
THAT WAS A GREAT REPORT. THANK YOU.
AND I LOOK FORWARD TO CONTINUE TO TRACK HOW AI IS AFFECTING OUR OUR WORK.
I THINK WE WILL BE CLEAR FOR A WHILE, BUT I THINK IT'S REALLY VALUABLE TO BE ABLE TO TRACK THAT META HERE.
AND IT DEFINITELY, EVEN IF I'VE ALREADY ASKED THEM JUST SO WE CAN MAKE SURE LIKE WE'RE ALL SO ALIGNED IN HOW WE CAN SUPPORT.
SO YEAH, I'M NOT SURE IF IT'S BECAUSE OF THE MICROCOSM OF THE SMALL AMOUNT OF PEOPLE THAT WERE IN THE SURVEY OR NOT, BUT OR IF IT'S MORE OF THE TYPE OF BUSINESSES THAT WE HAVE IN CEDAR PARK, WHICH IS REALLY GOOD, THAT AI SO FAR HAS NOT HAD A GREAT EFFECT ON THE OVERALL EMPLOYEE.
YOU KNOW, I THINK IT'S GROWING RAPIDLY AS AS OUR CITY IS.
SO IT'S IT WILL OBVIOUSLY CHANGE SOME. YEAH.
BUT I THINK IT'S A TESTAMENT TO THE, THE BUSINESSES AND THE CULTURE THAT WE ARE GETTING HERE IN CEDAR PARK, THAT THEY WILL BE USING AI MORE FOR PRODUCTIVITY AND INCREASING THAT AND BEING MORE EFFICIENT AS OPPOSED TO ACTUALLY REPLACING TALENT.
I AM CURIOUS ABOUT WITH SEEMINGLY THE IMPRESSION FROM THIS AND OTHER PLACES I'VE READ, IS IT REALLY IS IMPACTING THOSE ENTRY LEVEL POSITIONS.
WHAT ARE WE DOING TO TRAIN TALENT? BECAUSE THAT WAS WHERE YOU GOT YOUR SKILLS.
YOU WENT TO SCHOOL, BUT YOU LEARNED ON THE JOB.
WHAT WHAT ARE THE BUSINESSES OF THE SCHOOLS DOING TO BRIDGE THAT GAP? YEAH.
SO AN EMPLOYER I TALKED TO THAT'S CONSIDERING TAKING AWAY INTERNS AND THE EMPLOYER CONSIDERING TAKING AWAY ENTRY LEVEL TALENT.
ONE OF THE MAIN RESOURCES IS PWC HAS INTERNSHIP AND UPSKILLING GRANTS.
AND IF COST IS AN ISSUE, WHAT I THINK WOULD BE HELPFUL IS SUPPLYING THEM WITH THOSE TYPES OF FUNDS.
IF WE CAN HELP THEM WITH THAT GRANT PROCESS.
TO ENSURE THAT STUDENTS FROM UT, TEXAS STATE, WHATEVER ARE ABLE TO STILL GET THAT EXPERIENCE AND POSSIBLY FUNDED BY THE STATE.
SO I'M TRYING TO KIND OF FIGURE OUT EXACTLY WHAT THE REASONING BEHIND IT IS, WHETHER IT IS COST.
WHAT I'M HEARING A LOT IS AI IS CHEAPER THAN HAVING A FULL TIME INTERN.
HOW CAN WE KIND OF THAT WOULD HELP SUPPORT THEM WITH BUSINESS.
WHERE THEY WILL LIKELY IN THOSE COMPANIES FOCUS ON BUILDING OUT AI AGENTS.
SO WE'RE SEEING A LOT OF JUST CONTINUES TO BUILD OUR WORKFORCE.
AND I'M CONTINUING HAVING THOSE CONVERSATIONS WITH OUR EDUCATION PARTNERS AS WELL.
I JUST MET WITH A POST-SECONDARY COLLEGE TODAY AND ASKED THEM WHAT'S GOING ON WITH THE CURRICULUM OR DIFFERENT DEPARTMENTS SHIFTING WHAT THEY'RE TEACHING STUDENTS BECAUSE OF AI, RAPID CHANGE.
AND SO THEY'RE WANTING TO HEAR
[00:30:02]
OUR FEEDBACK FROM INDUSTRIES AND WE'RE WANTING TO HEAR THEIRS.AND I THINK, YOU KNOW, WITH CP WORKS, THAT WAS A BIG REASON WHY I WANTED INDUSTRY CLUSTERS FOR THEM TO SIT AND TALK ABOUT THESE THINGS, BECAUSE WE NEED TO MAKE SURE OUR STUDENTS ARE TRAINED LIKE K THROUGH 12 AND ABOVE, WITH THESE TYPES OF AI TOOLS, IF THAT IS GOING TO GIVE THEM A LEVERAGE TO GET A JOB.
CAN YOU GIVE US AN EXAMPLE? YOU DON'T HAVE TO USE NAMES, BUT JUST SOMETHING A LITTLE BIT MORE THAT TELLS A STORY BEHIND.
YOU TALKED ABOUT ALL THE DIFFERENT PARTNERS THAT WE WORK FOR, WORK WITH, FOR WORKFORCE DEVELOPMENT AND THEN PARTNERING THOSE WITH COMPANIES.
SO, LEANDER, I SAID THEY HAVE A THING CALLED TEACHER EXTERNSHIP OR TEACHER SHADOW DAYS WERE ESSENTIALLY A TEACHER IS EITHER WITH AN EMPLOYER FOR A WEEK OR A FULL DAY WITHIN THAT CTE PROGRAM.
SO IN THAT CAREER TECHNICAL EDUCATION PROGRAM, WHICH WOULD BE MANUFACTURING LIFE SCIENCES, THEY WANT TO GET MORE HANDS ON EXPERIENCE.
AND THEY HEARD ABOUT ONE OF OUR LIFE SCIENCE COMPANIES.
LEANDER REACHED OUT TO ME AND SAID, CAN WE ASK THEM IF THEY WOULD BE INTERESTED IN HAVING 1 OR 2 TEACHERS? THIS WAS ABOUT A MONTH AGO.
I CONNECTED THEM, AND THEY'RE HAVING A TEACHER THERE IN A FEW WEEKS.
AND SO THAT'S GOING TO REALLY HELP HANDS ON EXPERIENCE FOR OUR TEACHERS TO MAKE SURE THAT THEY ALSO HAVE A PULSE ON WHAT'S GOING ON.
AND IT'S GOOD FOR OUR EMPLOYERS TO SEE THAT THERE'S DIFFERENT COLLABORATIONS WITH ALL AGES OF STUDENTS THAT THEY'RE ABLE TO KIND OF PIN INTO.
ALL RIGHT. EXECUTIVE SESSION. YES.
[EXECUTIVE SESSION]
SEE YOU ON IN ACCORDANCE WITH CHAPTER FIVE FIVE, ONE OF THE GOVERNMENT CODE, THE ECONOMIC DEVELOPMENT TYPE A BOARD WILL NOW CONVENE AN ENCLOSED EXECUTIVE SESSION PURSUANT TO THE FOLLOWING PROVISIONS OF THE TEXAS OPEN MEETINGS ACT.SECTION 551087 AND ACCORDANCE WITH AGENDA ITEM C1 AND SECTION 5510712 AND ACCORDANCE WITH AGENDA ITEM C2.
NEED TO MAKE THE MOTION RIGHT? YES.
CAN WE MAKE A MOTION? I MOVE TO APPROVE A RECRUITMENT AGREEMENT WITH 240 TECH LLC ON THE TERMS DISCUSSED IN EXECUTIVE SESSION.
[D.1 Consideration of A Resolution Authorizing a Performance Based Economic Development Agreement Between the Economic Development Sales Tax Corporation of Cedar Park and Aeon Industrial Inc. (Arthur Jackson, Chief Economic Development Officer)]
D1 CONSIDERATION OF A RESOLUTION AUTHORIZING A PERFORMANCE BASED ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT SALES TAX CORPORATION OF CEDAR PARK AND IAN INDUSTRIAL, INC..SO I'M NOT GOING TO SPEND TOO MUCH TIME THIS EVENING DISCUSSING THE SPECIFICS OF IRON AND WHAT THEY DO, PARTICULARLY SINCE WE ARE FORTUNATE ENOUGH TO HAVE A SPECIAL GUEST WITH US WHO CAN SPEAK TO THE COMPANY AND ITS MISSION FAR BETTER THAN I EVER COULD.
BUT WHAT I WILL SAY, HOWEVER, IS THAT AION COMBINES REAL WORLD WARFIGHTER EXPERIENCE WITH WORLD CLASS ENGINEERING TO DEVELOP AND MANUFACTURE ADVANCED WEAPON SYSTEMS AT SCALE, HELPING BUILD A NEXT GENERATION OF OUR NATION'S TACTICAL DEFENSE CAPABILITIES.
SO ON SCREEN IS ONE OF THEIR PRODUCTS CALLED ZEUS.
AND YES, WE DID CODENAME THE PROJECT AFTER THIS PRODUCT.
VERY CREATIVE, I KNOW, BUT THIS IS AN INTELLIGENT MISSILE SYSTEM EQUIPPED WITH A PROPRIETARY ONBOARD COMPUTER VISION AI SOFTWARE DESIGNED TO ENHANCE TARGETING PRECISION, OPERATIONAL EFFECTIVENESS AND RESPONSE SPEED, AND DYNAMIC ENVIRONMENTS.
NOW, BEFORE I INVITE OUR SPECIAL GUEST UP TO COME FORWARD AND SHARE A FEW REMARKS, I'D LIKE TO FIRST PLAY A SHORT 22ND THAT I THINK IS REALLY COOL. HOW? ALL RIGHT.
WELL, WITHOUT FURTHER DELAY, ALLOW ME TO INTRODUCE THE FOUNDER AND CEO OF IRON INDUSTRIAL NAVY, THOMAS, WHO CAN GIVE YOU A LITTLE BIT MORE ABOUT THAT VIDEO AND WHERE IT WAS SHOT, WHAT THEY WERE DOING, AND OF COURSE, THE PICTURE ON SCREEN RIGHT NOW.
[00:35:01]
SO NAVY. COME ON UP YOU.THANK YOU FOR ALL YOUR WORK AND HELPING SET THIS UP.
AND EVERYBODY ON THE CEDAR PARK TEAM, THERE'S A REASON WE'RE REALLY EXCITED TO MOVE HERE, AND IT'S BEEN AMAZING TO WATCH CEDAR PARK GROW AND LEAN IN ON INNOVATION.
SO AS ARTHUR SAID, MY NAME IS NABI THOMAS.
I'M THE FOUNDER AND CEO OF AON.
I FOUND THE COMPANY ALMOST THREE YEARS AGO TO MODERNIZE THE US'S TACTICAL WEAPON SYSTEMS. TODAY, OUR WARFIGHTERS DEPEND ON WEAPONS THAT ARE BETWEEN 3 TO 6 YEARS OLD, SOMETIMES EVEN OLDER THAN THAT.
A LOT OF TIMES THEY DEPEND ON UNGUIDED, DUMB WEAPONS THAT REQUIRE MANUAL TARGETING, AND THAT WERE DESIGNED BEFORE THE DESIGN OF THE PRE SOFTWARE ERA.
AND SO THAT'S WHY I STARTED THE COMPANY WAS TO GIVE OUR WARFIGHTERS THE VERY BEST TECHNOLOGY TO REBUILD OUR DEFENSE INDUSTRIAL BASE, NOT ONLY WITH MODERNIZING THE WEAPON SYSTEMS THEY DEPEND ON, BUT BECAUSE ELON'S VERTICALLY INTEGRATED, WE BUILD NEARLY EVERY COMPONENT OURSELVES IN-HOUSE AT OUR FACTORY, FROM THE ROCKET MOTORS, THE FUZE BOARDS TO THE IGNITER.
AND ALL OF THESE INDIVIDUAL COMPONENTS ARE SUPPLY CONSTRAINED.
FOR THE PAST 70 YEARS, THERE'S BEEN 1 OR 2 COMPANIES THAT HAVE DOMINATED EACH OF THESE COMPONENTS, AND THAT'S WHAT'S CAUSED US TO NOT HAVE ENOUGH WEAPON SYSTEMS TO PROVIDE EFFECTIVE DETERRENCE.
TO CHANGE THAT IS TO ENSURE OUR WARFIGHTERS HAVE THE VERY, VERY BEST WEAPON SYSTEMS AT THE SCALE THAT THEY NEED TO ENSURE THEY COME HOME SAFELY.
AND SO, IN A VERY SHORT AMOUNT OF TIME, THE VIDEO YOU SAW THAT WAS FROM NINE MONTHS TO LITERALLY HAVING A NAPKIN DRAWING TO WHAT YOU SAW THERE.
NOT ONLY DID WE ACTUALLY BUILD A MISSILE SYSTEM, WE ALSO VERTICALLY INTEGRATED ALL THE KEY COMPONENTS OURSELVES IN-HOUSE, AND WE'RE GROWING INCREDIBLY QUICKLY.
WE WORK WITH SOME OF THE BEST OPERATORS IN THE COUNTRY, IF NOT THE WORLD, INCLUDING SOME OF THE UNITS HERE UP THE STREET AT FORT HOOD.
BUT I'LL LEAVE IT AT THAT OPEN TO ANY QUESTIONS, ANY THOUGHTS, BUT REALLY EXCITED FOR THE OPPORTUNITY IN THE POSSIBILITY OF MOVING UP TO CEDAR PARK TO EXPAND OUR OPERATIONS, GREW OUT OUR TEAM BECAUSE RIGHT NOW OUR SPACE IS LIMITED AND WE HAVE A LOT OF DEMAND FOR OUR PRODUCTS, BUT WE DON'T HAVE ENOUGH SPACE TO DO IT.
AND THIS NEW SPACE WILL ENABLE US TO DELIVER.
AS A VETERAN WHO'S FAMILIAR WITH A LOT OF THE DUMB WEAPON SYSTEMS. I APPRECIATE WHAT Y'ALL ARE DOING AND THE DIRECTION YOU'RE TRYING TO GO IN SUPPORT OF THE WARFIGHTER, AND ANYTHING YOU CAN DO TO INCREASE LETHALITY AND SURVIVABILITY FOR THE FOR THE PEOPLE BEHIND THOSE SYSTEMS IS GREATLY APPRECIATED.
AND OUR GOAL IS TO ALSO GROW WITH CEDAR PARK AND REALLY PUT CEDAR PARK ON THE MAP AS THE DEFENSE INNOVATION HUB.
AND I THINK YOU GUYS ARE DOING A GREAT JOB GETTING THERE.
ANY MORE QUESTIONS? THANK YOU FOR BEING HERE.
SO WE HAVE ARTHUR ACTUALLY IN THE PHOTO. OKAY.
THAT'S A GENERAL ADMIRAL WHO'S THE COMMANDING GENERAL OF FORT HOOD AND ONE OF OUR EARLIEST CHAMPIONS AND SUPPORTERS, AND HELPED CONNECT US WITH THE UNITS THAT HE'S RESPONSIBLE WITH OVERSEEING.
AND, YOU KNOW, PART OF OUR DESIGN PHILOSOPHY AND OUR CULTURE IN THE COMPANY IS TO WORK DIRECTLY WITH WHARF TO ENSURE WE'RE BUILDING WHAT THEY NEEDED.
AND WE TALKED TO A LOT OF SO UNFORTUNATE INTERESTING THING IS, THEY SAID MOST COMPANIES DIDN'T ACTUALLY GO UP THERE TO ASK THEM WHAT THEY THOUGHT.
THEY WERE JUST KIND OF HANDED STUFF.
AND SO WE WORKED DIRECTLY WITH THEM.
SOMETIMES THEY WOULD LITERALLY LOOK AT OUR COMPUTER SCREEN, AT THE ENGINEER'S COMPUTER SCREEN AS THESE, BUILDING IT OUT AND DESIGNING AND SAYING, ACTUALLY, I NEED THAT TO BE A LITTLE BIT DIFFERENT HERE OR THERE.
AND SO WE REALLY AND TRULY BUILT A SYSTEM THAT WARFIGHTERS NEED DEPEND ON AND ARE EXCITED FOR THE ALL WORK WITH THE STRATEGIC FARMING FACILITY HERE IN AUSTIN OR WE DO.
YEAH, BECAUSE THAT'S KIND OF WHAT THEY'RE DOING.
RIGHT. TO MAKE SURE THAT WE'RE UP TO DATE AND ALL THAT.
THAT'S RIGHT. YEAH. WE HAD A CONTRACT WITH THEM.
I THINK YOU'RE TALKING ABOUT T2. COM IN DOWNTOWN AUSTIN.
USED TO BE OUR FUTURES COMMAND.
YEAH. IT WAS ONE OF OUR FIRST CONTRACTS AND WE DELIVERED.
I HAD A SCHEDULE AND A PRETTY COMPLEX, AGGRESSIVE CONTRACT TO BUILD OUT A LOT OF THINGS THAT GO IN A MISSILE SYSTEM THAT NORMALLY TAKE YEARS.
SO WHERE WAS THAT TESTING VIDEO? THAT WAS IN YOUR EL PASO, A SPOT CALLED MILE HIGH RANGE.
WE USED TO TEST NOT TOO FAR FROM HERE, BUT WE NEEDED MORE SPACE TO FLY.
SO THAT'S WHY I HAD TO GO ALL THE WAY OUT THERE.
THANK YOU FOR YOUR WORK, THE OPPORTUNITY.
[00:40:04]
ALL RIGHT.SO FOR YOUR CONSIDERATION THIS EVENING IS A PROPOSED $1.5 BILLION PERFORMANCE BASED GRANT AGREEMENT BETWEEN THE CITY OF CEDAR PARK AND AON INDUSTRIAL INC.
IN RETURN, THE COMPANY IS COMMITTING TO LEASE AND OCCUPY A FACILITY WITHIN CEDAR PARK, CREATE 135 FULL TIME JOBS, COMPLETE APPROXIMATELY $8.5 MILLION IN CAPITAL INVESTMENT WITHIN THE CITY, AND GENERATE NOT LESS THAN $200,000 IN ANNUAL SALES TAX REVENUE TO THE EDC.
AND AS ALWAYS, THE AGREEMENT IS STRUCTURED AS A PERFORMANCE BASED INCENTIVE, WITH THE GRANT PAYMENTS TIED TO THE COMPANY MEETING THE OUTLINE, INVESTMENT AND OPERATIONAL MILESTONES.
SO HAPPY TO ANSWER ANY MORE QUESTIONS BEFORE THE BOARD MAKES A MOTION IF THERE ARE ANY.
SO MOVED. I MOVE AS PRESENTED.
IT IS D1 A MOVE THAT WE APPROVE.
AGENDA ITEM D1 THE CONSIDERATION OF A RESOLUTION AUTHORIZING AND PERFORMANCE BASED ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE EDC SALES TAX CORPORATION OF CEDAR PARK AND A ON INDUSTRIES, INC.
[D.2 Consideration of Minutes from the April 20, 2026 Board Meeting]
DO YOU TWO CONSIDERATION OF MINUTES FROM APRIL 20TH, 2026 BOARD MEETING.ALL RIGHT, ALL IN FAVOR? THAT PASSES.
[E.1 Board Member Closing Comments.]
BOARD MEMBER CLOSING COMMENTS.VERY PRODUCTIVE WORK BEING DONE.
ALL SAYS I'M EXCITED TO BE A PART OF IT.
YOU KNOW, YOU GUYS DO A FABULOUS JOB.
AND IT'S OBVIOUS THAT, YOU KNOW, OUR CITIES WHERE IT IS BECAUSE OF THE PEOPLE THAT WORK FOR IT.
YOUR EFFORTS AND JUST AMAZING.
GREAT. AND THANK YOU FOR BEING HERE.
STAFF IS ALWAYS MAKING THINGS OKAY.
AND GIRLS, THANK YOU FOR BEING HERE TONIGHT.
CAN'T WAIT TO HEAR ABOUT ALL THE GAMES THAT YOU WIN THIS YEAR.
ADDING SOME ADDING SOME COLOR TO OUR.
IS THE HARDEST TODAY, BUT I THINK YOU ARE OUR FIRST GUEST BEFORE YOU.
YEAH THAT'S RIGHT, THAT'S RIGHT.
WELL WE'LL KEEP UP WITH YOUR GAMES.
YEAH. ALL RIGHT.
* This transcript was compiled from uncorrected Closed Captioning.