CAPCOG, ARMA submit for Build Back Better funding

CAPCOG’s Capital Area Economic Development District (CAEDD) board developed one of likely hundreds of regional Build Back Better project applications in October working with the Austin Regional Manufacturers Association (ARMA) as the lead institution. Taking a goal from the CAEDD’s newly completed economic development plan (Comprehensive Economic Development Strategy or CEDS) last December, the board chose to focus on expanding the semiconductor industry in Central Texas and worked closely with several semiconductor company representatives to identify barriers to expansion — a pipeline of skilled workers, reliable sources of water and energy, and expanded air freight services.

Build Back Better Phase 1 grants will be awarded by the U.S. Economic Development Administration (EDA) in mid-December based on projects that will cause transformational economic activity from an industry cluster. According to Dennis Alvord, Assistant Secretary of EDA, at a recent meeting in Galveston of the COG executive directors from across the nation, the first phase should be conceptual with component projects identified that will be funded with a successful Phase 2 application.

The region’s Phase 1 scope also includes working with the semiconductor industry to identify supply chain companies and recruit them to the area and work with Texas Manufacturing Assistance Centers to help suppliers scale production and operate at a high-quality level. Expansion of suppliers would be targeted to the eastern side of the region where jobs are needed, the cost of development is affordable, and the labor force could be retrained for these jobs. Ensuring the eastern county road networks to support expanded truck freight could also be a project in Phase 2, according to Betty Voights, CAPCOG executive director, who noted many workers from the eastern counties still commute into the region’s core for employment opportunities but with workforce training, could access jobs with good wages closer to home.

The project aligns with goals in the CEDS, adopted by the CAEDD in December 2020, related to diversification of major employment sectors of tourism, government, and technology to add manufacturing, addressing freight issues, and using the region’s workforce development efforts to expand better wage, higher skill jobs.

Phase 1 awards are expected in mid-December; successful projects will have until March 15, 2022 to submit the Phase 2 application with possible funding up to $75 million.

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