Hondo EDC invests in city’s future

By Rosanne Fohn

Anvil Herald Reporter

As the Hondo Economic Development Corporation completes its 21st year, the goals are the same, but the economic picture is looking up. Fiscal year 2025 ended Sept. 30 with a 15.3% increase in sales tax growth over 2024. 

“This reflects a thriving local business environment,” Executive Director Sean Patty said. “As sales tax revenue grows, it enables the HEDC to budget for more reinvestment programs that benefit both local businesses and the residents of Hondo, extending the positive cycle of local spending and community development.” 

The HEDC’s efforts are supported by a half-cent sales tax Hondo voters approved in March 2004. The HEDC was incorporated in April of that year, with efforts ebbing and falling with the political climate of the city.

With an engaged effort in place since the board was revitalized about three years ago, the HEDC has increasingly initiated programs that are significantly benefitting the local economy:

The Open Rewards Program encourages local shopping. The app-based rewards program provides cash-back incentives for shopping at local businesses. This is the second year the program has been in place. The program was initiated in October 2004, just in time for the holiday shopping season, taking a break after the new year. This year, however, it was started in August in time for some of the back-to-school shopping and will run through the end of January. “The program has already generated a local economic impact of $437,210.35, keeping more dollars circulating in Hondo,” Patty reported.

Façade Improvement Grants help property and business owners in the Central Business District and commercial zones to restore and enhance their storefronts, improving curb appeal and supporting business vitality. “Nearly $50,000 has been awarded in fiscal year 2025 for façade improvement,” Patty said. The details about applying for the grants is on the HEDC’s website, https://growhondotx.com.

Capital investment and job growth incentives have also been funded by sales tax dollars, helping businesses invest in their assets and grow their employee base. The HEDC staff is available to guide business owners through state and local incentives to lower costs. The nonprofit has partnerships with Workforce Solutions Alamo, the U.S. Small Business Administration’s San Antonio district office and UTSA’s Small Business Development Center.

A new incentive for business development in 2026 is a 0% loan buy-down program. “The HEDC is investing $100,000 into a 0% interest buy-down program loan program through LiftFund. This partnership will give local business owners access to low-cost capital, helping them expand operations, invest in equipment or navigate economic challenges,” Patty said. The program is expected to start in early 2026.

The HEDC also is investing in future business owners through INCubatoredu, a yearlong entrepreneur curriculum for high school juniors and seniors. The 2025-26 school year will be a shadow year for school personnel to learn how the program works, with hopes of initiating it at Hondo High School for 2026-27. Through the curriculum, “students will identify problems, develop business solutions and ultimately pitch their ideas for funding in a real-world setting,” Patty said. “The program includes mentorship, professional development for teachers and a structured curriculum that covers everything from creating ideas for businesses to legal issues and product marketing. Hondo ISD will lead the program and the HEDC will sponsor it to fund startup costs and provide mentors,” he said.

Another new initiative being considered is purchasing key dilapidated buildings that pose a barrier to development in the Central Business District or in other commercial areas. Discussion at recent HEDC board meetings indicate that these efforts will help the HEDC recruit new businesses, such as chain restaurants or retail businesses, to the city.

Meanwhile, the HEDC is continuing to focus on recruitment of businesses to the South Texas Regional Airport and business park, and support the development of new housing, as there is a critical shortage that prevents growth of the community and enrollment in Hondo schools.

HEDC goals unchanged

Throughout its history, the HEDC has stayed true to its goal, stated in the first economic plan developed for Hondo: “Economic Development is development and maintenance of a quality of life that provides job creation, infrastructure, safety, housing and growth, respecting the community’s unique history and culture.”

The key issues then are strikingly the same as today. Straight from the founding document are HEDC goals that are still current today:

• “Hondo needs a clearly defined sense of identity.

• “There is a need for major resources for economic development in Hondo.

• “The need for housing in Hondo has been identified as a major issue requiring attention.

• “Infrastructure (streets, drainage, water, sewer, Hwy 90, etc.) is not only the backbone of a city, it is a necessary part of any economic plan.

• “Business development is the heart of an economic development plan.

• “It is essential for Hondo to capitalize on the positive asset it has in its airport.

• “The Economic Development Committee should encourage and assist the Airport Advisory Board to hire an Airport Manager, to examine the current Airport Master Plan, and design and construct an airport terminal.

• “Hondo needs a revitalized and beautified downtown, commercial district that is attractive to travelers into and through Hondo as well as to local area citizens.

• “Parks and recreation facilities and programs are important amenities for any community, especially communities that have a commitment to a strong economic development process.”

Key HEDC accomplishments

In answer to the original goals, Patty provided a list of projects to which the HEDC’s half-cent sales tax has contributed to date:

• The extension of 22nd Street and Veterans Boulevard.

• Significant infrastructure development within the South Texas Regional Airport and industrial park including the construction of the airport terminal and supporting business recruitment and aviation-related growth. This includes a $100,000 contribution to the city’s new wastewater trunk line project that will extend through the airport and industrial park’s boundaries south across U.S. 90.

• Expansion and renovations to city hall and the police department annex, which strengthened public services and safety operations.

• Investments in the youth baseball complex and T.A. Lopez Park.

• Major upgrades to drainage improvements, including the reduction of flood risk and improvement of stormwater flow on Elm Slough.

• Systemwide water and sewer system upgrades such as the construction of two new water towers, preparing Hondo for population and commercial growth.

• Ongoing efforts to restore and modernize alleyways and utility corridors that improve safety and utility access in key areas of the city.

• Expansion and modernization of the city’s electric utility system, increasing reliability and capacity.

• Acquiring a railroad switch and spur line near the airport, opening the door for future rail-served industrial employers.

• The recruitment of a number of businesses at the Hondo airport, including the recent recruitment of Boise Cascade, will have an impact on the city as a whole for years. 

“Every project and program supported by the HEDC can be traced back to a simple act of community confidence — Hondo voters’ decision in 2004 to invest half a cent of every taxable dollar to their own future,” Patty said. “As the HEDC enters its third decade, its purpose remains unchanged: to reinvest locally, support local businesses and build a lasting foundation for Hondo’s future prosperity.”