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A year ago, the Magnolia 4B Economic Development Corporation assumed the debt service for moving the utility lines along FM 1774 between Friendship Drive and 10^th Street. This act removed the debt from the City of Magnolia, which would have been forced to raise property taxes in order to pay it.

The debt was a result of a $2 million loan from the Texas Department of Transportation (TxDOT) Special Infrastructure Fund used by the city to move the utility lines, which was necessary due to the widening of FM 1774 within the city limits. Just last week, the 4B Corporation approved a $160,000 interest payment on this loan, which will be paid from sales taxes collected by the corporation.

These types of projects are funded through both the 4A Economic Development Corporation and the 4B Community Development Corporation.  The purpose of both corporations is to provide funds from another revenue source, other than just property taxes, which is the only way the city itself can raise funds.

The 4A Corporation is tasked with managing infrastructure projects and the 4B Corporation handles community projects. The corporations are managed by board members who are appointed for a two-year term and volunteer their time. Many Texas cities have similar corporations, which typically raise funds through sales taxes.

The Magnolia development corporations make it possible for the city to provide services to additional areas and overhaul structures that are wearing out, as well as provide parks and recreational opportunities for residents. As Magnolia grows, officials said these projects become more critical to improving the quality of life for the area.

The 4B Corporation manages the Farmers Market, Unity Park and The Stroll. The next event at The Stroll is “A Stroll through the Renaissance,” which salutes the Renaissance Festival and will be held from 4 to 8 p.m. on Saturday, September 29. Renaissance-themed games, food, drinks and crafts will be offered.

The 4A and 4B Corporations impose serious responsibilities on the board  members.

As newly-elected 4B Corporation president Pat Zaiontz  stated, “This (4B) Corporation is just like a business. We need to watch our spending and pay our debts.”

The City of Tomball recently added land to its extraterritorial jurisdiction, which is currently being purchased by Baker Hughes, on the northeast corner of FM 2978 and FM 2920.

The land, once developed, will include a new 72,445 square-foot classroom building, a 36,000 square-foot workshop, a 16,730 square-foot lab and two training oil rigs.

The $50-plus million project will be Baker Hughes Western Hemisphere Education Center once complete. The company has a similar site in the eastern hemisphere located in Dubai, India.

The Tomball Economic Development Corporation (TEDC) is also in the middle of the project, as it will contribute a little more than $900,000 towards the cost of the projects infrastructure.

TEDC executive director Kelly Violette said she is confident that the project will create new jobs, new growth and lots of additional sales and property tax revenue.

The project is designed to help with training and education of Baker Hughes personnel and customers.

Officials said that the center will generate around 66,000 trainees per year, who will use more than 50,000 hotel room nights each year. The city estimates that the new facility will create 50 new jobs, as well as nearly 30 indirect jobs.

Officials are estimating more than an $8 million dollar benefit to the city over a 10-year period, with many of those dollars going into the hotel/motel fund, which is used to put on various events in the city and to promote Tomball as a tourist and business destination.

Construction on the site is expected to begin later this year or early 2013. Baker Hughes is now negotiating to buy the land and expects construction to be completed with a year of the start of construction.

Once the purchase of the land is completed, Baker Hughes will submit an application for annexation. Once that is complete the permitting process will begin, according to city officials.

Walgreens recently opened a new store at the intersection of FM 1488 and FM 1774 in downtown Magnolia. At the Oct. 26 grand opening, Walgreens officers were welcomed by the Magnolia Area Chamber of Commerce with a ribbon cutting for the new member.  City officials and chamber members were in attendance as well. At left, Walgreens-Magnolia Manager Chad Reno does the honors.