WHAT YOUR DOLLARS MEAN TO ALLEN

Jennifer Grimm, Marketing Director

Allen Economic Development Corporation

 
 
It does matter where Allen residents spend their money! As Allen’s residential population and daytime employment base has grown, more retail, restaurants and service businesses have opened in Allen. Patronizing these establishments brings valuable sales tax revenue, helps to retain jobs and funds superior community services.
 
In fact, the return on the investment on a $1.00 purchase of ordinary consumer goods in a local store (in Collin County) generates $2.71 in our local economy, according to noted economist Dr. Ray Perryman. “This ‘multiplier effect’ occurs as the dollar is re-spent; the store pays its employees, who purchase more goods with the same original dollar,” Perryman stated.
 
There has been explosive growth in retail sales in Allen since 1995, when gross sales for the year were just $86.657 million. In 2001, gross retail sales had increased 587% to over $509.2 million. That growth was fueled by an increase in the number of retail outlets, from 251 in 1995 to 465 in 2001. Allen’s population has more than doubled, with over 61,000 residents today, which has attracted major retailers, boutique stores, restaurants, and services.
 
These businesses also serve the nearly 13,000 daytime employees in Allen. Approximately one-third of those employees work in the high-tech businesses and corporate campuses located in Allen’s “tech district”, along US 75. The City of Allen employs 534 and Allen ISD has over 1400 employees. The remaining half of Allen’s daytime employment is, in part, a result of retail growth, providing jobs for construction-related workers, managerial positions, full-time, part-time and seasonal jobs for high school and college students and additional family income. Jobs are also realized in the service sector to provide financial, medical and other professional as well as semi-professional services to the growing community.
 
Sales tax is collected on most retail transactions, with 6.25% going to the State of Texas. State law allows local municipalities to add up to 2% more, for a maximum of 8.25%. Each city determines how to spend the additional 2%. In Allen, one-cent goes to the City of Allen’s general operating budget. In 1992, voters approved one-half cent to fund economic development through the foundation of the Allen Economic Development Corporation. In 1996, voters approved the remaining one-half cent to fund the Allen Community Development Corporation.
 
As sales tax revenue collected by the City of Allen increases, the pressure on property taxes is reduced. City services, which are already favorably rated by Allen citizens, can be maintained and improved.  The revenue generated by the one-cent sales tax currently accounts for approximately 19% of the City of Allen’s $33.3 million dollar 2002-2003 general budget. “The sales tax is extremely important to city operations,” stated Allen City Manager Peter Vargas.  “It helps pay the cost for Police, Fire and other basic city services.  By shopping in Allen, we are investing in our own community, helping to make it a better place to live and work.”
 
The Allen Community Development Corporation is responsible for the development of parks and many of the excellent recreational amenities enjoyed by Allen residents. Through Town Hall meetings and regular community surveys, the Allen Community Development Corporation Board of Directors ascertains the needs and desires of the growing community. The Allen Community Development Corporation has approved $22 million in funding for 61 projects including parks, fire department vehicles, and sidewalk repair. “Not only has the funding from the Community Development Corporation allowed the expanded scope of currently funded projects,” according to Allen Parks and Recreation Director Tim Dentler, “but it has also provided the funds for construction of new facilities and amenities that may not have been constructed for years to come without their support.”  The Allen Community Development Corporation has assisted in funding the Don Rodenbaugh Natatorium, a fully enclosed swimming facility at the southwest corner of Exchange Parkway and Rivercrest Drive, as well as Allen Station Park and Celebration Park.  The Board of Directors of the Allen Community Development Corporation is made up of Allen residents appointed by the Allen City Council.
 
The Allen Economic Development Corporation’s mission is to recruit and retain business and industry to Allen that increase the ad valorem tax base and create quality jobs. Since its inception in 1992, the Allen Economic Development Corporation has brought over 30 projects to Allen’s office and technology parks. The Allen Economic Development Corporation funds have been used in the development of two premier business parks, Millennium Technology Park and Millennium Corporate Center. The Corporation also assists developers to create infrastructure improvements, such as roads and utilities, needed to attract desirable tenants in their parks including, Enterprise Business Park and Allen Station Business Park.
 
Recruitment efforts also yielded other services for the community including Presbyterian Hospital and the Hilton Garden Inn, which provides Allen excellent accommodations for the business traveler and 12,000 square-feet of conference and meeting space.
 
The Corporation, run by a five-member Board appointed by City Council, has also worked in public/private partnerships to facilitate retail development including Twin Creeks Village, Allen Central Market and most recently, Allen Premium Outlets, located on the northwest corner of Stacy Road and US 75. The developers, Chelsea Properties Group, worked with the Allen Economic Development Corporation, the City of Allen and Collin County to upgrade Stacy Road from a two lane highway to a six-lane divided thoroughfare between US 75 and SH 121. The upscale name brand and designer outlet center has 90 stores and draws shoppers from a 60-mile radius. Some of the most popular stores include Tommy Hilfiger, Banana Republic, Ralph Lauren Factory Store, Oshkosh B’Gosh and Mikasa.
 
“When people shop, dine and use essential services locally, those dollars are effectively reinvested in Allen’s ongoing business recruitment,” noted Charisse Reaume, Allen Economic Development Corporation Executive Director. “The impact of our successful economic development activity has resulted in relieving the property tax burden of the individual citizen while preserving the excellence of our schools, services and quality of life in Allen.”  The business and industry recruited to Allen by the AEDC cover the equivalent of $.053 of the City’s 2002 $.562 tax rate and $.258 of the Allen ISD’s $1.808203 tax rate.
 
The Allen Chamber of Commerce plays a vital role in promoting Allen’s business community and providing resources to Chamber members. A non-profit organization, funded by member investments, the Chamber has launched “Shop Allen” as a major initiative over the past few years. Recently, the Chamber’s Small Business Task Force rolled out a health insurance program offering reasonably priced medical, dental and prescription coverage for its members with as few as two employees.
“Our programs and initiatives benefit the entire business community,” noted Sharon Mayer, President of the Allen Chamber. “We provide promotional and networking opportunities, as well as representation of the business community on legislative issues. And, as with the Economic Development Corporation, the primary focus of our mission is to promote economic growth and business retention within our community.”
 
With a median household income of $102,390, an average household income of $94,976, and many active young families, Allen’s demographics are desirable to a diverse range of retail development. Shoppers can find just about everything within Allen’s city limits; from men’s, women’s and children’s apparel to pet supplies. Allen is home to a number of great gift and specialty shops, as well as major “big-box” retailers. With Allen’s bright growth prospects for the future, the city continues to be a consideration for new retail development.
 
Fitness enthusiasts have a number of choices including the new 24 Hour Fitness, north of Twin Creeks Village on Watters Road. The 37,000 square foot facility offers basketball and volley ball in addition to weight and cardio training.
 
Major grocery chains have opened in Allen to serve the growing population. Albertson’s, Brookshire’s, Kroger and Tom Thumb have locations here. Allen was one of the earliest choices for Walmart to debut their new Neighborhood Market concept, which opened in January on the southeast corner of Exchange and Angel Parkway. CVS Pharmacy also chose Allen as one of its first locations as it expanded into Texas, opening on the southwest corner of Angel Parkway and Stacy Road.
 
The number of restaurants, eating and drinking establishments in Allen has steadily increased from 29 in 1995 to 86 in 2001. The gross sales grew from $12.4 million to $51 million in the same period. Dining choices range from casual burger joints and sports bars, to Italian, Mexican, Japanese and Thai food. New restaurants continue to move into Allen. Bennigan’s is under construction at an Allen location, on the west side of US 75 just north of On the Border. The restaurant, which will seat 162, is scheduled to open this summer. P.F. Chang’s, a popular Chinese restaurant, will begin construction on their “quick/casual” concept, Pei-Wei, in May. In addition to featuring some of P.F. Chang’s signature dishes, Pei-Wei offers choices from other popular Oriental cuisines – Thai, Japanese, Korean and Vietnamese.
 
“When they consider Allen, retailers and restaurateurs take a look at the current sales figures,” according to Ms. Reaume. “They are much more likely to locate here when they see the community supporting the businesses already in place. Shopping locally helps Allen to continue to grow.”