Killeen/Harker Heights

In a report release mid July 2007 and reported by the Killeen Daily Herald, the "fifth-strongest economic region in Texas includes the Killeen, Temple and Fort Hood area, according to an independent firm that analyzes local and state economies for investors. POLICOM Corp. reported only the Dallas, Houston, Austin and San Antonio metropolitan areas have stronger economies. The firm defines economic strength as the long-term tendency for an area to consistently grow in both size and quality.”

Even with half of Fort Hood’s 50,000 troops deployed to Iraq, Killeen still experienced a boom year in new housing starts in 2006.  Building officials say that 2007 may well match the 2006 feat if early indications hold throughout the year.

In addition to the new housing starts, commercial building also continues to be brisk as more and more businesses discover the Killeen market and decide to locate facilities in the Central Texas city.

Military families are remaining in the Killeen area while spouses are deployed, keeping retail sales at a high level, and, along with the building boom, keeping Killeen’s economy strong. The strength of the economy was reflected in sales tax rebates, which jumped to $17,379,426.93 in 2006, a five percent increase over figures for 2005. The first quarter of 2007, compared to 2006, saw increases in sales tax rebates for each month.

Killeen has experienced a big surge in the number of hotel/motel rooms created, most of them along or extremely near, U.S. Highway 190.  The largest of these, Shilo Inn and Suites, is a new convention hotel located next to the Killeen Civic and Conference Center on South W.S. Young Drive.  The Shilo, which opened in April of 2007, is a full service hotel, has 160 rooms, conference facilities and a restaurant serving three full meals a day. This is one of 10 motels/hotels that have opened – or are being built in Killeen – in the past two years.

Restaurants also are being added regularly, with Texas Land & Cattle Company and Pignetti’s Italian restaurant being among the latest to open facilities here.

Retail establishments also are being added to the economy on a regular basis, with Walgreen’s selecting three sites in Killeen for new drug store facilities. In addition to the 2006 opening of Kohl’s 68,000-square-foot building, another major chain store, Guitar Center, also has located in Killeen.

Most of the retail business growth has occurred on the U.S. Highway 190 corridor, where available locations range in price from $14 to $18 NNN. Pad sites range from $6 to $16, depending on the location.

Killeen’s abundant labor supply is a major factor in the growth of the area and holds much potential for future growth. Of course, much of that labor source is nearby Fort Hood, where 600 to 1,000 soldiers separate from the Army monthly. A vast majority – especially those who retire from the service – remain in the area and provide a vast pool of dependable, highly skilled, technology-trained labor that replenishes itself every month.

With a growing population estimated at 112,000 and a growing public school enrollment of approximately 37,000, Killeen Independent School District has a steady building program, with at least one new elementary school opening each year.  The City of Killeen also is in the process of spending some approved bond money to construct a new youth and recreation center, a new senior citizens center, a new police station and new fire stations.

Action by the 80^th Texas Legislature also has put the establishment of Texas A&M University – Central Texas a big step closer to reality. The legislation puts into easy reach the Texas Higher Education Coordination Board’s requirement of 1,000 full-time students at Tarleton State University – Central Texas before it can be converted to a stand-alone Texas A&M – Central Texas. Once the process for establishing TAMU-CT has been completed, the new higher education facility will be constructed on 662 acres of land donated by Fort Hood. Funding was increased to expand course offerings, plan construction and pay debt service on the first building.

Fort Hood, the area’s primary economic engine, currently is well above its assigned capacity with approximately 52,000 troops assigned to the post. The future of the post looks bright. Most officials believe that because of the excellent training and housing facilities available at the post, Fort Hood will remain above the 50,000 figure. There already have been soldiers stationed at Fort Hood that were supposed to be assigned to other bases under the BRAC review. This speaks well of Fort Hood’s ability to accommodate more troops for the future.

In addition, the Department of Defense has changed the status of Darnall Army Community Hospital to Darnall Army Medical Center. This will result in an increase in service and the addition of research and development missions to be carried out by approximately 2,000 additional employees. The Medical Center will be a public-private partnership – the first of its kind in the Department of Defense.

With the addition of twice-daily, direct flights to Atlanta by Delta Airlines, enplanements at the Killeen-Fort Hood Regional Airport continue to grow at a rapid pace, with 15,394 reported in April. American Eagle flights to Dallas-Fort Worth and Continental Express flights to Houston continue to have most seats filled, and American Eagle has now flies only regional jets.

The Killeen area’s future looks bright! TXDOT is expanding Highway 190 to the west and reversing on/off ramps through Killeen to accommodate the increased traffic. Highway 190 traffic counts exceed those on I-35 through Bell County. We have become the dining and shopping destination for a 50-60 mile radius, or approximately 250,000 people.