BG Reads | News You Need to Know (March 8, 2021)
[BINGHAM GROUP]
NEW// BG Podcast EP. 132: 2021 Sector Outlook with Ed Latson, CEO, Austin Regional Manufacturers Association
Today’s episode (132) features Ed Latson, CEO of the Austin Regional Manufacturers Association (ARMA).
Founded in 2013, ARMA’s mission is to strengthen the Central Texas manufacturing community through advocacy, workforce development, and networking.
Ed and Bingham Group CEO A.J. discuss the 2021 outlook for Central Texas’s manufacturing sector, including impacts of the February blackouts, incentive programs, and the competition for Samsung’s $17 billion chip plant.
You can listen to this episode and previous ones on Spotify, Apple Podcasts, and SoundCloud. Please like, link, comment and subscribe!
[MEETING/HEARINGS]
Travis County Commissioners Court Voting Session (3.9.2021 @9AM)
Austin Council Work Session (3.23.2021 @9AM
Regular Meeting of the Austin City Council (3.5.2021 @10AM)
[THE 87TH TEXAS LEGISLATURE]
LINK TO FILED HOUSE BILLS (3,403)
LINK TO FILED SENATE BILLS (1,272)
[AUSTIN METRO NEWS]
Icon selling first 3D-printed homes to public in East Austin (Austin Business Journal)
No longer just a promise, 3D-printed homes by Austin-headquartered Icon Technology Inc. are now on sale in the Texas capital.
Kansas City-headquartered housing developer 3 Strands Neighborhoods, which does business as 3Strands, announced March 4 it has partnered with Icon to build two- to four-bedroom East Austin homes that will be ready for move-in this summer.
3D printing started in November on the four homes but they just went on the market this week. The homes range from 1,000 to 2,000 square feet and prices start in the mid-$400,000 range. 3Strands already has received offers, according to Kansas City Business Journal.
“We want to change the way we build, own and how we live in community together,” Gary O’Dell, 3 Strands co-founder and CEO, said in a statement. “This project represents a big step forward, pushing the boundaries of new technologies, such as 3D-printed homes.”
Icon already has built about two dozen 3D-printed homes in Central Texas and Mexico. That includes homes in Community First Village, Alan Graham's community for the formerly homeless in far East Austin.
But these are the first homes for sale to the public. That marks a major milestone for Icon, which was founded in 2017 by CEO Jason Ballard, Alex Le Roux and Evan Loomis. Residential real estate experts have long wondered how 3D printing could be implemented at scale, especially in a hot housing market like Austin.
Austin-based Logan Architecture PLLC designed the new East Austin homes and Austin-based designer Claire Zinnecker oversaw the interiors’ finishes and fixture selection. The interiors feature open floor plans, vaulted master bedrooms and high-performance heating and cooling systems.
Icon used its 3D-printing construction technology to build the first floor of the energy-efficient homes, then wood was used for the second floors.
In addition to printing homes, Icon is also using its technology for military and space applications. The company in October announced a $14.55 million federal Small Business Innovation Research contract, awarded by the U.S. Air Force, to develop an automated construction system that may be used on the surface of the moon.
Icon caught the public's attention with a 3D-printed tiny house at South by Southwest 2018. Since then it has raised at least $44 million in funding, including a $35 million series A round announced in August and a $9 million seed round announced in 2018. And in January, the company reported in a securities filing selling about $7 million in equity to 17 investors.
Icon employs the full-time equivalent of more than 40 people.
Meanwhile, 3Strands already is eyeing additional projects in Austin and wants to bring 3D-printed homes to the Kansas City area, according to KCBJ… (LINK TO STORY)
'A basic human necessity': Countless Austinites still without water weeks after winter storm (Austin American-Statesman)
It had been 15 days since the water inside Maria Mata's apartment ran when she and her sister crossed the parking lot Thursday night, soup pot in hand, to scoop water from the complex's pool. The trick, used by several residents since last month's severe winter storm left thousands without power and water, allowed Mata and others to keep flushing their toilets.
The storm took one of Austin's water treatment plants offline, and water reserves drained from broken water mains and burst residential pipes. Most Austin Water service was restored and a boil order notice lifted a few days later. But several apartment residents, like Mata, still are unable to bathe in their homes and cook in their kitchens.
Austin utility officials said they couldn't tell how many individual customers are without water. But officials said all or portions of about 50 apartment complexes across the city still were without water, as of Thursday evening.
While the city repaired burst mains, the demand for commercial and residential plumbing repairs has been overwhelming. For two weeks, plumbing companies have not just worked long hours, but struggled to find needed supplies.
"It's really hard," Mata said. "It's more than just not having water. You can't wash clothes. You can't wash dishes. You can't even cook — because if you do, the dishes are going to pile up. You have to spend more money."… (LINK TO STORY)
Council postpones decision on Delta Kappa Gamma rezoning (Austin Monitor)
City Council last Thursday postponed rezoning the historic Delta Kappa Gamma headquarters at 416 W. 12th St., yielding to a request from a property owner on the same block.
Delta Kappa Gamma, an organization that supports women educators worldwide, seeks Downtown Mixed-Use (DMU) zoning to allow Stratus Properties to replace the circa-1959, midcentury-modern building, which is on the National Register of Historic Places, with a residential tower. Preliminary plans call for a 375-foot-tall building with 280 units.
The Planning Commission voted 11-0-1 to approve the requested DMU zoning. City staffers recommended that the site be zoned historic and with a conditional overlay limiting height to 60 feet. The Historic Landmark Commission voted to zone the site historic to prohibit redevelopment, but couldn’t reach the supermajority needed to force Council to vote on the historic zoning.
If the rezoning passes at Council’s next meeting on March 25, the developer will apply for a Downtown Density Bonus to exceed the DMU zoning’s 120-foot height limit. The bonus allows more height in exchange for compliance with streetscape, design and green building standards, in addition to either on-site affordable housing or a fee-in-lieu for affordable housing elsewhere.
Chinna Natesan, who owns the vacant tract at 1200 Guadalupe St. on the same block, said he needed more time to assess how the rezoning would affect his property. Council typically grants one postponement request from a neighbor or neighborhood association.
Michael Whellan, DKG’s representative, urged Council to proceed, as the postponement request, he emphasized, came from a single property owner. The Old Austin Neighborhood Association asked Council to approve the rezoning without delay.
Natesan said he was caught unawares when the developer informed him of plans to also buy the historic A.O. Watson House, which is sandwiched between Natesan’s property and the Delta Kappa Gamma site. These plans are unconfirmed. Natesan worried over the fate of the house, though it cannot be altered as a property zoned historic by the city… (LINK TO STORY)
What the weeks-long shutdown of Samsung, NXP semiconductor fabs mean for those companies (Austin Business Journal)
With the shutdown of huge semiconductor factories belonging to Samsung Austin Semiconductor LLC and NXP Semiconductors NV surpassing two weeks, the losses are piling up into the hundreds of millions of dollars.
The outages could have already cost the companies more than $250 million combined, based on an estimate of lost revenue from one semiconductor sector analyst. Their Austin fabrication plants, or fabs, likely generate "something along the lines of about $500 million per month of revenue," said Risto Puhakka, president of California-headquartered VLSI Research Inc.
The factories remained shut down as of the morning of March 5, more than two weeks after the plants halted operations in mid-February at the request of Austin Energy, as the entire state dealt with freezing winter weather and surging electricity demand.
The Samsung and NXP factories in Austin employ thousands of people, and their challenges resuming operations raise questions about what governments should do to avoid a repeat. And they also contribute to worries about a global chip shortage, as outlets such as Bloomberg Intelligence have noted.
Worse, Puhakka said, “even though a fab might announce the start of production, it takes a while to ramp back up to normal levels. It’s something like a three-week disruption.”
Such announcements might not come for a while. Samsung Austin Semiconductor spokeswoman Michele Glaze said March 4 in an email that the company had “not resumed normal operations and will not before the weekend.”
Similarly, NXP spokeswoman Jacey Zuniga said in a March 4 email that the company had “no estimate to share at this time” when it could restart manufacturing.
Multiple storms and single-digit temperatures last month caused millions in Texas to lose electricity as power plants ill-equipped to withstand the cold shut down at the same time demand spiked.
“The semiconductor industry relies on stable power,” Puhakka said. The state’s failure to provide that is sure to spur questions from chipmaking companies such as Samsung, which is considering building a $17 billion factory in the Texas capital, he added.
Site selectors and economic development experts told ABJ last month that the brutal weather conditions that Texans experienced earlier this month likely won't pose a threat, at least in the short term, to Austin's growing reputation as a magnet for business. But there could be a long-term impact if nothing is done on the state level to make the electrical grid more resilient.
"We can’t get companies like Tesla and Samsung to invest billions of dollars here if there is not a resilient grid," Ed Latson, Austin Regional Manufacturers Association executive director, told Austin Business Journal last month… (LINK TO STORY)
Fire at homeless campsite under highway shuts down multiple lanes at Texas 71 and I-35 (Austin American-Statesman)
A fire at a homeless encampment near Interstate 35 and Texas 71 forced authorities to close multiple lanes of traffic in the area, Austin Fire Department officials said Sunday morning.
The fire was reported at about 9:45 a.m. near I-35 in the 700 block of East Ben White Boulevard (Texas 71), according to information from Austin fire officials and the Texas Department of Transportation.
“All the tents were on fire in the camp,” Fire Division Chief Thayer Smith said.
Investigators determined that the cause of the fire was accidental: A candle was too close to combustible contents, officials said.
One person was arrested for interference with public official, the Fire Department said.
As of about 10:50 a.m., at least three lanes of the interstate were shut down and traffic was backed up for a mile in both directions of the highway, TxDOT reported.
A fire at a homeless encampment near Interstate 35 and Texas 71 forced authorities to close multiple lanes of traffic in the area, Austin Fire Department officials said Sunday morning.
The fire was reported at about 9:45 a.m. near I-35 in the 700 block of East Ben White Boulevard (Texas 71), according to information from Austin fire officials and the Texas Department of Transportation.
“All the tents were on fire in the camp,” Fire Division Chief Thayer Smith said.
Investigators determined that the cause of the fire was accidental: A candle was too close to combustible contents, officials said.
One person was arrested for interference with public official, the Fire Department said.
As of about 10:50 a.m., at least three lanes of the interstate were shut down and traffic was backed up for a mile in both directions of the highway, TxDOT reported… (LINK TO STORY)
[TEXAS NEWS]
H-E-B says signs requiring mask use will remain, customers 'expected' to comply (CBS Austin)
H-E-B has clarified what their mask policy will be when Gov. Greg Abbott ends the statewide mask mandate this Wednesday after facing questions on social media.
Initially, H-E-B said it will continue to enforce mask wearing among employees and vendors while "urging" customers to do the same.
However, in response to criticism on social media for not requiring customers to wear masks as other retailers have, H-E-B posted an update on Friday:
While statewide policy has changed, our store protocol has not. Mask use at our stores will remain. Our signs requiring mask use will remain posted at entrances and we will continue to make announcements in store.
We will continue to expect shoppers to wear masks while in our stores. Additionally, we will still require all our Partners and vendors to wear masks while at work.
In a tweet, the Texas grocery giant added that "to protect the safety of our Partners, we will not engage in confrontation."… (LINK TO STORY)
Texas businesses must decide whether to require face masks. Some worry they could lose customers either way. (Texas Tribune)
As small-business owners and managers across Texas went to work Wednesday morning, they faced yet another 2021 headache: deal with losing business from customers who don’t want to wear face masks during the pandemic or from patrons who will only frequent places that require them.
The dilemma was abruptly thrust upon them after Gov. Greg Abbott announced yesterday afternoon that the state will lift its mask mandate and allow all businesses to operate at 100% capacity starting March 10.
Some businesses barely had an opportunity to reopen after last month’s deadly winter storm and power outage crisis before hearing about this massive change to the state’s COVID-19 safety protocols.
“I do feel that we’ll probably lose guests based on whatever decision we do make, but I guess that’s just part of the environment that we are in now,” said Jessica Johnson, general manager of Sichuan House in San Antonio. “It’s either you wear masks and piss a couple people off, or you don’t wear masks and you piss a couple people off.”
At least one business owner, Macy Moore of HopFusion Ale Works in Fort Worth, said Wednesday on CNN that he had not slept since Abbott’s announcement because he’s so worried about the health and safety of his staff. Others, like Anne Ng of Bakery Lorraine in San Antonio, have decided to keep mask requirements in place for staff and customers regardless of what Abbott and the state government say.
“By repealing the mandate, the government is putting everyone at risk, and foodservice workers are sadly at the front lines in facing potential hostility from folks who will refuse to respect our mask policy,” Ng said. “We don’t deserve that.”
Meanwhile, Rep. Dustin Burrows, R-Lubbock, filed legislation last week that would prevent any business entities from being held liable for exposing people to pandemic illnesses. That provision in House Bill 3 is one of Abbott’s top priorities for this year’s legislative session. The governor was joined by Burrows in Lubbock on Tuesday when announcing plans to rescind many coronavirus restrictions against the advice of federal and local health officials… (LINK TO STORY)
A Mexican restaurant in Houston is keeping its mask rule. People threatened to call ICE on the staff. (Texas Tribune)
When the coronavirus pandemic hit and restaurant owners faced difficult decisions, the Richards family that owns Picos, a Mexican restaurant in Houston, quickly adapted to continue sharing their Latin cuisine — from selling to-go margarita kits to stationing a mariachi band at the curbside pickup.
This week, after Republican Texas Gov. Greg Abbott said Tuesday that he would rescind the statewide mask mandate while the vast majority of residents remain unvaccinated, the tough choice to enforce public health guidance fell to business owners, and Picos announced it would continue requiring masks. But, after such a challenging year, the reaction to their decision was disheartening, co-owner Monica Richards said: Several people sent hateful messages through social media and called the restaurant, threatening to report staffers to Immigration and Customs Enforcement.
“It was just horrific,” Richards said. “People don’t understand unless you’re in our business what it felt like, how hard it was to go through everything we went through during COVID. For people to be negative toward us for trying to remain safe, so that this doesn’t continue to happen, just makes zero sense to us.”.
Abbott’s decision to lift the mandate will make Texas the largest state to not require masks, which has not come easily for many businesses that are navigating enforcement mask rules to protect employees and customers while facing backlash. Masks, which health experts say are among the most effective ways to curb the spread of the coronavirus, have become a partisan symbol, with one conservative group planning a mask burning party for March 10, the day the order is lifted.
When the mandate is rescinded, the majority of Texas restaurant owners say they will continue requiring staff to wear masks, but they are split on making the same demands of customers, according to the Texas Restaurant Association, which informally surveyed its members this week. The association’s updated guidance recommends restaurants mandate employees wear masks and encourages guests to do the same, spokeswoman Anna Tauzin said.
If a restaurant requires masks, it is unfair to argue the choice infringes on business, Tauzin said.
“This is a decision business owners are making, and it’s right for them,” Tauzin said. “For a group that touts personal responsibility is something key to good stewardship of your business, it seems strange that they might criticize or throw insults at people who are trying to do just that. It’s alarming.”… (LINK TO STORY)