Perryton Community Development Corporation Honored for Economic Development Success

Shawn Campbell (Perryton CDC Administrative Assistant), Kerry Symons (President of the Perryton CDC board), and Sheryl Hardy (Executive Director of the Perryton CDC) with the Community Economic Development Award plaque

The Perryton Community Development Corporation (CDC) was honored recently with the Community Economic Development Award from the Texas Economic Development Council (TEDC). The prestigious award honors excellence and exceptional contributions of Texas communities in economic development. The Perryton CDC received this recognition at the TEDC’s annual conference on October 17 in San Antonio.

Criteria used to judge nominees included innovativeness, transferability, community commitment and leveragability, measurable objectives, and ancillary benefits to the community.

The Perryton CDC was recognized for its success with business retention and business expansion through its recent Perryton Equity Exchange Distribution Project. The project took place following a three-year drought and Perryton’s loss of the short-line railroad, which had critically affected the movement of goods and services; both factors required the Perryton CDC to become more creative in its economic development efforts.

In 2012, dialogue opened between the Equity Exchange and the Perryton CDC concerning an expansion project. The CDC deemed the location of the Distribution Center would succeed because of its location on major US Highway 83 (the only north/south U. S. Highway that connects Canadian to Mexico) and its proximity to a diversified agricultural economy. U.S 83 runs 1,885 miles from the Canadian border just north of Westhope, North Dakota, to Brownsville, Texas, on the Mexican border. It is one of the last and longest stretches of contiguous highway in America. It passes through North Dakota, South Dakota, and the Lakota Nation on the Rosebud Reservation, Nebraska, Kansas, Oklahoma, and Texas. The highway follows in the footsteps of Lewis and Clark, Buffalo Bill Cody, Chief Spotted Tail, Jedediah Smith, Francisco Vasquez de Coronado, and numerous other historical figures.

Equity Exchange Distribution Center

The Distribution Center would allow Equity Exchange to diversify and broaden its delivery of crop production products, seed, and crop nutrients to other company-owned stores and retailers in the tri-state area. The CDC demonstrated several pioneering approaches to this project.

Perryton Equity Exchange is a locally owned and operated. The cooperative had 2,988 members. In 2007, Perryton Equity Exchange started doing business as Equity Exchange for all its agricultural-based business and as Equity Energy Services for the commercial-based business. With Perryton Equity being a cooperative, it posed a number of challenges both financially and legally. The coordination was exceedingly intense working with a twelve-member cooperative board of directors, the CDC Board, Perryton City Council attorneys, etc.

Because Perryton Equity is a full-service coop, this project allowed for the expansion of Perryton Equity into four distinct areas of operation. Each area will have substantial opportunities for growth as a result of the project.

  1. Crop Production Department – focuses on the products and services of producing crops such as crop protection, seed, and crop nutrient products
  2. Grain Department – oversees the day-to-day operations of the grain elevators while Equity Marketing Alliance LLC does the merchandising of grain
  3. Petroleum Department – is responsible for the marketing and servicing of energy products to producers and various commercial businesses throughout Texas, Oklahoma, Kansas, and New Mexico
  4. Farm and Ranch Department – focuses on the products and services related to the production of livestock

The exchangeable aspect of this project was substantial because of the myriad other communities throughout the United States that could potentially work with cooperatives to grow and create wealth. Equity Exchange is not only located in Ochiltree County but also in Hansford, Hemphill, Hutchinson, and Hall counties of the Texas Panhandle; Beaver and Texas Counties of the Oklahoma Panhandle; and Seward and Stevens counties of Southwest Kansas. Anyone of those communities could have potentially recruited this project but failed to utilize their creativity to craft this unique project. The Perryton CDC began with the conceivable end results. The amount of research and legal work on this project could easily become a new footprint for other communities that have the presence of a cooperative.

The program or project makes it possible for others to achieve a greater impact by joining public/private participation or by intergovernmental or state/local involvement to leverage resources.

The Perryton CDC and City Council agreed to loan Equity Exchange the principal amount of $800,000 for a term of 120 months at zero percent interest for the purpose of constructing the distribution center. The terms of the loan were put into play 30 days after the first shipment of farm supply product from the distribution facility. The terms of the project were placed in the Performance Agreement Contract. The total project was $1.2 million dollars to construct a 25,000-square-foot facility, and this was without the land purchase. It was truly a partnership in that the company made a sizeable investment. The Perryton CDC also took into account the amount of investment being made by Equity Exchange for the inventory required to initiate distribution.

The total potential contribution of Equity Exchange’s sales and grain management to the City of Perryton economy included

  • 192.5 jobs
  • $7 million in labor income
  • $120.6 million in total economic activity attributed to the company

Contributed

  • $40.3 million in value-added

When cooperative members’ grain sales are included, the coop’s total employment contribution is estimated at

  • 1,829.7 jobs

Output is estimated at

  • $221.8 million

Including

  • $75.1 million in value-added
  • $30.6 million in labor income

Four types of multiplier effects are reported in the contribution analysis. The employment contribution measured jobs attributable to the direct economic activity. Contribution to labor income measured the effect of final demand spending on the incomes of households in the region and indicated the benefit to local residents. The value-added measure’s contribution to gross regional product is a measure of regional welfare. The output or gross sales contribution measured economic activity in the region. Labor income is a subset of value added, which is part of output, so this contribution could not be summed.

The Perryton Community Development Corporation’s intent in investing in this project was to induce a substantial effect on the Perryton economy. It is expected to create new jobs as well as retain jobs and bring substantial additional revenues from outside the community into Perryton. Therefore, the Perryton CDC agreed to provide economic assistance to Equity Exchange a Texas Nonprofit Cooperative Association.

 

 

 

 


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