Diversifying Your Economy – Post Disaster Identifying Emerging Industries GEDP is a private, non-profit 501(c)(6) organization that is membership based Supporting Business and Community Jeffrey Sjostrom President February 25, 2015

The list of damages and problems included:  Approximately 75 to 80 percent of the 2,500 businesses experienced severe damage  Water levels greater than nine feet and mold in the historic “Strand” district  Significant damage to the Port of Galveston, major cultural facilities, and UTMB campus  80 percent of residences had flood damage; one out of five units have been condemned  Only 60 percent of the city’s population had returned six weeks after the storm  Significant labor shortages for most of the local businesses that have re-opened. Hurricane Ike Impact: Hurricane Ike struck the southeast coast of Texas on September 13, 2008 as a Category 2 storm causing an estimated damage of over $30 billion to the state with direct impacts to 29 Texan communities. Although the water quickly receded in Galveston, there was considerable recovery and rebuilding to be accomplished on the island.

Island Recovery: In the six years after Hurricane Ike, Galveston has begun to see an increase in it’s economy. In some industries, the figures meet, if not exceed those from  City Financial Foundation strong and positioned for growth  Sales Tax and Hotel Occupancy Tax Performance experiencing positive gains  Housing and Real Estate markets already continue growing by both volume and sales price  Industrial/Maritime industries continue seeing significant new investments  Healthcare remains one of Galveston’s leading markets with jobs and capital investments  Education sectors seeing continued growth in enrollments and addition of new programs  Population stabilized after losses from Ike, with signs of improvement  Galveston retains job center of Galveston County and unemployment rates dropping

Economic Drivers of Galveston  Education and Healthcare  Maritime & Support Service for Offshore Oil  Tourism and Hospitality “…economic trends in effect prior to Hurricane Katrina – intensified after the storm…” Brent Warr, Gulfport MS GEDP TARGET MARKETS:  MARITIME  SUPPORT SERVICE FOR OFFSHORE OIL & GAS  EMERGING TECHNOLOGY  MIDDLE INCOME HOUSING  TOURISM  BUSINESS - RETENTION - EXPANSION - DIVERSIFICATION ECONOMIC RECOVERY AND DIVERSIFICATION Business Recovery Funding City Infrastructure and Housing UTMB – TAMUG Port of Galveston Tourism Beaches and Amenities

GEDP STRATEGIC INVESTMENT AREAS

 Disaster Planning and Preparedness mitigates against financial loss and hardship  Businesses are left to their own determination and ingenuity  Economic Development organizations can play a pivotal role in providing resources and/or stability to the redevelopment and revitalization of their communities  Economic Development is a marathon, not a sprint GEDP I NITIATIVES : The GEDP maintains focus on expanding Galveston Island employment and tax bases through:  Business Recovery Activities - Over $100 million in business development / recovery resources facilitated by GEDP since 2008  GEDP Disaster Recovery Guide & Business Recovery Task Force  GEDP Economic Development Summit  GEDP Annual Plan of Work  Information Clearinghouse  GEDP Investor Profile magazine

FOR ADDITIONAL INFORMATION, CONTACT : ============================= GALVESTON ECONOMIC DEVELOPMENT PARTNERSHIP Strand – UTMB Customs House