Proposed Automotive Assembly Plant Site

With the recent ground breaking of a Chinese North American automotive assembly plant in Mexico, automakers are looking for ways to stay competitive. An automotive assembly plant in McAllen, TX offers several advantages. From our strategic geographic location to the over 200 existing automotive suppliers currently operating within a 2 hour drive of the proposed site, McAllen, TX is the ideal location for an automotive assembly plant.

Location

Strategic location provides timely access to national and international markets by air, rail, road and water Redundant utilities are on site There are over 200 existing auto suppliers currently operating within 2 hour drive of proposed auto assembly plant

Distribution

20% cost reduction and 3 day reduction over traditional routes Distribution of globally produced products from one point, making Texas the Third Coast Provides direct connection from one of the largest cities in the world to the population centers of Texas.

Workforce

There is a person turning 60 years of age every 7 seconds in the U.S. and in 3 years 40% of the existing workforce will reach retirement age according to a Forbes magazine article. This puts the McAllen MSA at a competitive advantage with a 4% annual population growth rate, being the #8 fastest growing metro in the U.S., having the 4th largest available workforce in the state and having an average age of 26.3 Texas is a right to work state There are 10 million people within a 150 mile radius The Reynosa metro is the fastest growing city in the state of Tamaulipas and in the top 5 fastest growing cities in Mexico. Reynosa's Maquiladora industry is recognized nationally for continued job growth and has a 5% annual population growth rate with an average age of 24 The average full-loaded manufacturing entry wage rate for laborers for McAllen is $7.93/hour and for Reynosa is $2.40/hour

Airport

Within 10 miles of McAllen-Miller International Airport and Reynosa International Airport

Bridge

McAllen/Hidalgo International Bridge connects to downtown Reynosa and Pharr International Bridge connects to east side Reynosa The new Anzalduas International Bridge provides direct access from Reynosa to the proposed auto assembly plant site

Port

The Mexican ports of Manzanillo, Lazaro Cardenas and Altamira are being utilized to save time and money. Shipments arriving at these ports are moved by truck and rail to a new dry port in Reynosa, Mexico or distribution warehouses in McAllen, then can be shipped to points across North America. With the increased emphasis on logistics cost and speed to market, it is easy to see the benefits of being able to ship all global production to customers from a single North American location

Rail

Rail on site

- Ranked as one of the ten best places in the South for location of an automotive assembly plant (Southern Business and Development Magazine 2004)
References http://www.mcallenedc.org/auto-assembly-plant.php http://www.mcallen.net/ about McAllen, Texas http://www.mcallenedc.org/incentives.php

Incentives
The following are some incentives that could apply to this project. With all City, County and State incentives, the McAllen Economic Development Corporation would serve as an advocate and resource for assistance during the application process. Details are provided below on selected City and County incentives.

City of McAllen Incentives:

1. 2. 3. 4. City Economic Development Grant City Property Tax Reimbursement Freeport Exemption-Texas Property Tax Code 11.251 Goods-In-Transit Incentive

Hidalgo County Incentives:

1. County Property Tax Abatement

Employee Training Incentives:

1. 2. 3. 4. 5. 6. 7. City of McAllen Supplemental Job Training Incentive Program Texas Skills Development Fund Texas Self Sufficiency Fund State of Texas Refund for Employers of TANF Clients U.S. Department of Labor-Apprenticeship Program Work Opportunity Tax Credits On-The-Job-Training

Training incentives 1 and 2 are administered through South Texas College (STC), which offers a variety of programs that can be customized to fit your training needs. A few of the programs included in this effort are: tool and die, industrial maintenance, precision manufacturing, plastics, leadership and supervisory training. STC is the only college in the state of Texas to be accredited by National Institute for Metalworking Skills (NIMS). In addition to STC, the Rapid Response Manufacturing Center located at the University of Texas-Pan American (UTPA) in the McAllen MSA focuses on new research, advanced manufacturing and customization. The center is one of several strategies, including workforce recruitment and training, of the North American Advanced Manufacturing Research Initiative (NAAMREI). NAAMREI is a network of 47 partners from K-12 and higher education, business, economic development, industry, finance and government focused on offering manufacturers across North America and the globe, access to proprietary, world-class advanced and rapid response manufacturing.

State of Texas Incentives:

1. Texas Enterprise Fund 2. Texas Enterprise Zone Program 3. Emerging Technology Program 4. State Sales & Use Tax Exemptions 5. Tax Exempt Industrial Revenue Bonds 6. Texas Product Development Fund 7. Texas Small Business Fund 8. Texas Economic Development Act 9. Pollution Control Equipment Incentive 10. Economic development Refund 11. Renewable Energy Incentive 12. Permit Assistance 13. Economic Development & Diversification In-State Tuition for Employees 14. Moving Image Industry Incentive

15. Cancer Prevention and Research Bonds

Private Incentives:
1. Hunt Power
http://www.mcallenedc.org/resources/mcallen-incentives.pdf - detailed list of potential available incentives Infrastructure

Infrastructure
The business parks in the McAllen area and Reynosa are surrounded by a strong infrastructure network including:

Transportation

McAllen-Miller International Airport Reynosa International Airport Rail Highways Nearby Seaports International Bridges

Utilities
Starting Jan. 1, 2002, the electric industry in Texas was restructured and partially deregulated to provide customers choices in many markets. On that date, investor-owned electric utilities officially began to compete for electric customers. Deregulation means that providers, other than utilities, may compete for retail customers formerly served by regulated utilities. Please use the external links below to learn about all service providers to the McAllen region.

Electricity Natural Gas Water and Sewer

Industrial Parks Industrial Parks

Industrial Parks

City McAllen Area Reynosa Mexico

Parks 16 14

Lease Rates $/SqFt/Month

Land Rates per Acre

Electric Rates Negotiated Rate/Kwh $.11/Kwh $120/KVA

.31-.38 + NNN $65,000-$120,000 .31-.45 + NNN $85,000-$150,000

http://www.mcallenedc.org/infrastructure.php http://www.mcallenedc.org/why-invest-mcallen.php Why invest in Mc Allen