WAREHOUSING & DISTRIBUTION / INLAND PORT

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1 WAREHOUSING & DISTRIBUTION / INLAND PORT Credit: The Allen Group / Kimley-Horn & Associates Credit: The Allen Group / Kimley-Horn & Associates

2 The Economic Development Profile introduces Dallas to prospective investors, developers, businesses and residents. The Profile s purpose is to support the development process by informing the private sector so that both public and private returns are maximized. The individual pages are also designed so that they can be combined in ways to support each client s individual needs. All components are available on the OED website at Dallas-EcoDev.org. City of Dallas Publication: 06/07-84

3 Centrally located within Dallas-Fort Worth Centrally located within North America

4 DFW Economic Overview 6th largest economy by output (2011) 7th largest by income (2011) $420.3 Billion Gross Metro Product (2012) 1.5 Billion Sq. Ft. Commercial Space (May 2014) 95.9% of U.S. Average Cost of Living (Q4 2013) Industry Share (Annual 2012) City of Dallas DFW Trade, Transportation, and Utilities 19.6% 20.6% Professional and Business 17.1% 15.7% Government 12.9% 12.8% Health and Education 12.4% 12.6% Leisure and Hospitality 8.8% 10.0% Manufacturing 7.9% 8.5% Financial Activities 9.8% 8.1% Resources, Mining & Construction 5.0% 5.6% Other Services 3.4% 3.6% Information 3.1% 2.6% DFW Demographic Overview 4th largest population in U.S. Largest population growth of U.S. metro areas over 2 million Demographics City of Dallas DFW Residents 1,241,162 6,810,913 Median Age Bachelor s Degree or Higher 29.0% 31.6% Source: U.S. Census Bureau, Annual Estimate of the Resident Population for Incorporated Places Over 50,000 July 2012 (City of Dallas) and July 2013 (DFW). Source: Texas Workforce Commission, Bureau of Labor Statistics, Bureau of Economic Analysis, Info USA (June 2012), OED, C2ER, CoStar.com.

5 City of Dallas Dallas-Fort Worth Metro Population 2012 Estimate % 2012 Estimate % Residents 1,241,108 6,647,496 Median Age Race and Ethnicity Non-Hispanic White 364, ,264, Non-Hispanic Black 305, , Hispanic 514, ,863, Non-Hispanic Other Race 57, , Foreign Born 300, ,173, English as Second Language Primary Language; Spanish 429, ,431, Primary Language; Other 58, , Household and Income Total Households 463,719 2,337,076 Median Household Income $41,354 $56,954 Per Capita Income $26,032 $28,306 Source: U.S. Census Bureau American Community Survey 1-Year Estimates, 2012.

6 Workforce Employment (Annual 2012) Dallas City DFW Total Labor Force 581,653 3,339,582 Total Employed 539,041 3,116,834 Unemployment Rate 7.3% 6.7% Source: Training and Hiring Assistance Dallas-Fort Worth Educational Attainment (Highest Level Achieved, 2010) Level The Texas Workforce Commission can facilitate customized training through state-funded skills grants. Texas workforce development boards offer monetary assistance to businesses that hire unemployed Texans. Number Percent With Graduate or Professional Degree 414, % With Bachelor's Degree 877, % With Some College/Associates Degree 1,195, % With High School Diploma 948, % Source: U.S. Census Bureau 18.2% increase in jobs forecast for 2020 Source: Texas Labor Market Information for Dallas WDA Dallas-Fort Worth Labor Market by Occupation (Annual 2012) Occupation Workers Annual Wages All 2,976,380 $46,130 Architecture & Engineering 63,370 $83,110 Art, Design, Entertainment & Media 33,520 $48,960 Building/Grounds Maintenance 84,520 $22,480 Business & Financial 169,240 $71,970 Community & Social Services 23,590 $45,970 Computer & Math. Science 116,010 $79,790 Construction and Extraction 119,410 $36,480 Education, Training & Library 164,000 $49,120 Farming, Fishing & Forestry 1,830 $26,460 Food Prep. and Serving Related 253,190 $20,190 Healthcare Practitioner & Technical 158,240 $73,890 Healthcare Support 66,940 $29,340 Installation, Maintenance & Repair 119,570 $41,990 Legal 21,800 $95,630 Life, Physical & Social Science 15,920 $67,560 Management 149,620 $111,340 Office and Administrative Support 546,490 $34,850 Personal Care & Service 79,310 $22,890 Production 181,740 $31,810 Protective Service 66,860 $41,370 Sales and Related 335,000 $41,220 Transportation & Material Moving 206,230 $32,550 Source: U.S. Bureau of Labor Statistics, May 2012

7 1 China 2 South Korea 3 Japan 4 Canada 5 Taiwan 6 Malaysia 7 Great Britain 8 Thailand 9 Singapore 10 Germany 12 Mexico Total Africa The Dallas-Fort Worth International Airport serves as a regional Port of Entry to clear customs. In 2013, over 59,600 tons of cargo enplaned and deplaned at DFW Airport alone, a 4.7% increase from Dallas-Fort Worth District International Trade* 2013 (Millions) $30,000 Dallas is a major distribution hub for trade with Mexico. Trade with Mexico (Millions) Origin or Destination of Trade Texas United States Through Dallas $138 $450 Through Texas $162,039 $353,486 Source: North American Transborder Freight Data, Bureau of Transportation Statistics, $25,000 Exports Imports $20,000 $15,000 $10,000 $5,000 $0 Total International Trade * Import Export Total Top 10 Trading Partners 86% 64% 80% Total World Trade ($Million) $53,525 $18,790 $72,315 Source: Dallas-Fort Worth Trade District, USA Trade Online *The Dallas-Fort Worth Trade District is defined by the US Census Bureau. Ports in the DFW District include: Dallas/Fort Worth, TX; Amarillo, TX; Lubbock, TX; Oklahoma City, OK; Tulsa, OK; Austin, TX; San Antonio, TX; Midland International Airport; Fort Worth Alliance Airport, Addison Airport

8 Dallas is centrally located in North America and connected to the continent and the world by highway, rail and air. Within 48 hours from Dallas, over 35% of the US population can be reached by truck and over 98% by rail. By plane, all major U.S. business centers can be reached in 3.5 hours or less. DFW Airport provides non-stop access to 148 U.S. and 51 international cities, and is a hub for American Airlines. In 2013 DFW Airport served over 60.4 million passengers and 652,300 tons of cargo. It s the U.S. s fourth busiest airport and 8th busiest in the world. Dallas Love Field flies 135 daily nonstop flights, on three runways, serving 8.5 million passengers annually. Home to the corporate headquarters of Southwest Airlines, in October 2014 the last 8 gates of a new 20-gate terminal will open as flight restrictions lift to allow more nonstop destinations. Dallas is a major interstate hub, with five interstate highways (I-20, I-30, I-35, I-635, and I-45) within the city limits, two major loop roads and 19 federal and state highways. Three major rail lines pass through Dallas: Burlington Northern Santa Fe (BNSF), Kansas City Southern and Union Pacific. Four rail intermodal facilities operate in the region. Destination Distance (miles) Air Travel (hours) Road Travel (hours) Atlanta hour Chicago Denver Detroit 1, Kansas City Los Angeles 1, Memphis Mexico City N/A Monterrey, MX N/A Montreal 1, New York 1, Seattle 2, Toronto 1, Vancouver 2, Washington, D.C. 1, Source: American Airlines (air), Google Maps (road), Times and distances approximate

9 Dallas is positioning its southern half to benefit from domestic and international trade with the International Inland Port of Dallas (IIPOD). IIPOD, a public-private partnership, is Dallas-Fort Worth s third intermodal development (with Dallas-Fort Worth International Airport and AllianceTexas). IIPOD is a catalyst for southern Dallas investment, job growth and development of sustainable communities. It makes Dallas the nation s premier logistics and distribution center. The project takes advantage of Dallas interstate highways, two Class I railroads and the UP intermodal facility, focused at the confluence of I-35, I-30, I-45, I-20, I-635 and the future Loop 9. When completed, IIPOD will serve as a prominent inland port with enhanced security to facilitate the customs process and expanded Foreign Trade Zone acreage. Multiple projects are currently underway, with over 17 million square feet of new building completed or under construction. Occupancy is at 83%. More than 7,500 acres of industrial-zoned land is available within the site. Additionally, almost 2,500 additional acres of IIPOD land is part of Foreign Trade Zone #39. At buildout, there will be 60 million sq. ft. of new facilities and 30,000 jobs related to warehousing, distribution, assembly and office support. In September 2012, the City of Dallas, in partnership with the North Central Texas Council of Governments, Dallas County and other IIPOD cities, issued a report analyzing the infrastructure needs in the IIPOD area to ensure successful future growth. Inter-jurisdictional coordination on the implementation effort is underway. Presently, there is about $25 million in new roads under design or construction in the City of Dallas portion of the IIPOD. Courtesy of the Allen Group and KimleyHorn and Associates Courtesy of Urban Land Institute Courtesy of Urban Land Institute Courtesy of Allen Group and KimleyHorn & Associates

10 The International Inland Port of Dallas (IIPOD) Draws from a Local & Regional Workforce Investing in Southern Dallas provides job opportunities not only to local residents in the City but also draws from the full strength of the regional workforce of Dallas-Fort Worth. The IIPOD workforce: 51.4% live in Dallas County 11.3% live in Ellis County 9.9% live in Tarrant County 2.8% live in Kaufman County 2.7% live in Collin County 2.4% live in Denton County 19.5% live elsewhere Source: U.S. Census Bureau Local Employment Dynamics, 2011

11 The IIPOD s Trade, Transportation & Utilities Sector Draws from a Local & Regional Workforce Investing in Southern Dallas provides job opportunities not only to local residents in the City but also draws from the full strength of the regional workforce of Dallas-Fort Worth. The IIPOD Trade, Transportation & Utilities workforce: 45.2% live in Dallas County 11.8% live in Tarrant County 8.0% live in Ellis County 3.2% live in Kaufman County 31.8% live elsewhere Source: U.S. Census Bureau Local Employment Dynamics, 2011

12 Economic Development Business Incentives Dallas offers an array of economic development incentives to qualifying businesses. Incentives include: City of Dallas Regional Center (CDRC) (EB-5) The CDRC is dedicated to assisting individuals and their families through the EB-5 immigration process via investment into businesses and development projects located within the Dallas city limits. The CDRC offers a variety of qualified investments to foreign investors that meet or exceed Program requirements, and offer investors features unique to the EB-5 community. Economic Development Grants Companies considering a relocation/expansion or new commercial development may be eligible for a grant in lieu of tax abatement or to defray project costs such as: land purchase, building costs, public infrastructure costs, development fees, right of way abandonment fees, loan guarantees, training costs, relocation costs, etc. Foreign Trade Zone Dallas two Foreign Trade Zones allow duty-free importing of foreign-made components that are assembled, manufactured, processed or packaged. Duties are charged when completed products are distributed into the U.S. market. Products for export are not taxed. Freeport Tax Exemptions Ad valorem tax exemptions for goods that are detained in Texas for 175 days or less. Incentive depends on location. Historic Tax Credits Abatement of city real property taxes for a period up to 10 years if a building has been designated as a Dallas landmark and a restoration is planned. Job Training Workforce development in Dallas is coordinated and implemented by the Dallas County Community College District (DCCCD) and Workforce Solutions Greater Dallas. DCCCD opportunities include: basic skills, GED preparation, and skills enhancement. Workforce facilitates employer access to qualified employees, as well as provides job training, workplace education, child care and educational initiatives. New Markets Tax Credits The NMTC program is a federal program operated by the Department of Treasury that provides opportunities for new development in traditionally underserved areas. Corporate or individual investors can receive tax credits for qualified investments. Tax Abatements City provides tax abatement on the value added to real property or new business personal property. When you are ready to discuss your business or development needs contact the Office of Economic Development at NOTE: INCENTIVES NEGOTIATED OR PROPOSED BY CITY STAFF ARE SUBJECT TO SPECIFIC FEDERAL, STATE AND LOCAL GUIDELINES, FUNDING AVAILABILITY AND CITY COUNCIL APPROVAL. DEPENDING ON THE INCENTIVE, THERE MAY BE ADDITIONAL RESTRICTIONS BASED ON GEOGRAPHY, PROJECT SIZE AND OTHER FACTORS.

13 Dallas Sales Tax* State 6.25% Local 2.0% Total 8.25% *Exemptions, such as manufacturing, may apply. Local Property Tax Per $100 of Appraised Value for Real & Business Personal Property*, City Rate $ County Rate $ Carrollton-Farmers Branch ISD *Homeowner and other exemptions may apply. $ Coppell ISD $ Dallas ISD $ Duncanville ISD $1.41 Garland ISD $ Highland Park ISD $ Mesquite ISD $1.41 Plano ISD $ Richardson ISD $ Texas does not have: State Personal Income Tax Local Personal Income Tax State Property Tax Local Occupation Tax Local Wage Tax Franchise/Margin Tax Applicable to any legal entity doing business in Texas and that is organized to have some form of limited liability protection (i.e. corporations, partnerships and business associations). Does not apply to most sole or general proprietorships; partnerships that have only individuals as partners; certain passive entities; certain grantor trusts, estates of natural persons and escrows; real estate mortgage investment conduits and certain real estate investment trusts; and unincorporated political committees. Qualified wholesalers and retailers pay % and most businesses pay 0.975% of either: gross revenue minus the cost of goods sold; gross revenue minus employee compensation; 70% of total revenue; or total revenue minus $1 million. Tax rules are likely to change every two years due to legislative actions. For the most recent information, contact the Texas Comptroller of Public Accounts at or at

14 Dallas Water Utilities Residential 1 Water Cost Per 1,000 Gallons Sewer Cost Per 1,000 Gallons Up to 4,000 Gallons $1.80 $4.90 4,001 to 10,000 Gallons $3.77 $ ,000 to 15,000 Gallons $5.20 $4.90 Above 15,000 Gallons $7.09 $4.90 Dallas Water Utilities General Services 1 Water Cost Per 1,000 Gallons Sewer Cost Per 1,000 Gallons Up to 10,000 Gallons $2.70 $3.47 Above 10,000 Gallons $3.30 $3.47 Above 10,000 Gallons and 1.4 Times Annual Average Monthly Usage $4.65 $3.47 Electricity Most of Texas, including Dallas, is in a deregulated area for electricity choice. Business customers may choose from multiple electricity providers and negotiate best rates based on their individual needs. For more information about Texas electricity providers, visit The residential average per kwh in Texas is cents, the commercial average is 7.96 cents and the industrial average is 5.82 cents as of January 2014, according to the United States Energy Information Natural Gas 2 Customer Charge/Mo. Commodity Charge/CcF or MMBtu Residential $17.75 $ Commercial (<3,000 avg. McF/Yr) $35.00 $ Industrial $ $ to $ Excludes additional charges such as gas cost recovery, weather normalization, taxes and fees. Rate is current as of June 1, 2013 and is subject to change. Source: Dallas Water Utilities Optional General Services 1 Water Cost Sewer Cost 1st Million Gallons or Less (Minimum) Above 1 Million Gallons (Per 1,000 Gallons) 1 Prices reflect prompt-pay discount and are effective October 1, $1, $3.22 $2.55 $3.22 Sewer Metered Separately $3.40 Telephone 3 Single flat business line with unlimited long distance bundle Small office with T-1-type facility (about 92 voice lines with limited data) - 36-month term Higher bandwidth with 100 voice lines and more data 3 Estimates Source: AT&T. Please go to ATT.com for further assistance. Price/Mo Starts at $50 $900 to $1,800 $1,500 to $2,500

15 Unions Texas is a right-to-work state: Mandatory union membership is prohibited. No person can be denied employment or otherwise discriminated against in employment decisions based on the status of his or her membership in a union Union Members % of Workforce Covered Workers % of Workforce DFW Total Workforce Organized 163, , DFW Private Workforce Organized 82, , DFW Public Workforce Organized 81, , State of Texas Total Workforce Organized 517, , Source: U.S. Bureau of Labor Statistics. Workers Compensation In most cases, workers compensation coverage is voluntary. Rates that companies pay for coverage vary based on the company and that company s past history. Average weekly wage is $ for October 1, September 30, Source: Texas Department of Insurance, Workers Compensation Division. tdi.texas.gov/wc/employee/maxminbens.html. Unemployment Insurance 2014 taxable base is up to $9,000 per employee per year Rate Existing Employers (after 6 quarters of existence) 0.51% to 7.41% New Employers (for first 6 quarters) Higher of 2.7% or applicable industry average Maximum Weekly Benefit $440 Source: Texas Workforce Commission.