City officials estimate total economic impact at $8.4 million over the next decade
The City of Tomball is making room for a new Baker Hughes campus that is estimated to bring millions of dollars to the city. The company plans to construct its Western Hemisphere Education Center at the northeast corner of FM 2920 and FM 2978, which will see more than 65,000 trainees per year.
"This project will bring a state-of-the-art educational center to Tomball and provide a world class environment to train employees in the oil and gas industry," said Kelly Violette, executive director for the Tomball Economic Development Corporation. "This project will generate new direct and indirect jobs, new residents, additional sales and property taxes, etc."
Tomball is in the process of annexing the property into the city limits, and it has set two public hearings for 6 p.m. Nov. 5 and Nov. 19 at City Hall. Once the land is annexed, Baker Hughes can begin the permitting process, and Violette said construction could begin as early as December.
Baker Hughes currently operates its Pressure Pumping Technology Center at the southwest corner of FM 2920 and FM 2978. The integrated campus is dedicated to advancing technologies focused on pressure pumping products and services for the oil and gas industry. The company operates with more than 58,000 employees in 80 countries.
Complex campus
To assist in construction of the multi-faceted center, the Tomball Economic Development Corporation has awarded Baker Hughes a grant of more than $900,000. The estimated overall capital investment from Baker Hughes is $54 million.
"There will be a training well where they drill into the ground and test different equipment as well as train people to drill into a concrete casing," said George Shackelford, Tomball city manager. "But there will not be continuous drilling into the ground."
Initial discussions with Baker Hughes indicated that a future expansion may include a conference center with possible dorm rooms, Violette said. They have indicated only plans for the education center have been finalized.
Pam Easton, a spokeswoman for Baker Hughes, said the company is not providing additional details at this time because it is premature in the planning process.
City benefits
In the next 10 years, the new facility could bring more than $8 million into the city, Violette said, by generating a bigger customer base for local businesses, especially hotels. Tomball Chamber of Commerce President Bruce Hillegeist said the facility is a rare and fruitful opportunity for the city.
"If the chamber of commerce and the TEDC and the city all worked for hundreds of years we could not have landed such a coup with Baker Hughes," he said. "They're not having a major number of jobs added, but they expect between 50,000 to 70,000 people to come through this one training facility annually. That will mean new money from outside of our area. Retail, restaurants and hotels will all be the benefactors. Really, our entire community will be."
Until possible dormitories are constructed, Tomball hotels will be filling up as thousands filter through the city each month. Violette said she estimates the facility will generate more than 50,000 hotel stays per year.
"Baker Hughes is a global leader in the oilfield industry and a major employer in the City of Tomball," she said. "This project will have a tremendous impact on the local economy."
Increased hotel use results in increased hotel occupancy tax revenue. Holly Cook, chairwoman of the Tourism Advisory Committee, said the committee takes that money and advises the City Council on how to re-invest it into the community.
"Individuals can approach us about using the hotel occupancy tax funds if it involves hosting an event that will promote tourism," Cook said. "[Baker Hughes coming] means more money in everybody's pocket."
Festivals and initiatives, such as the fountain in the Historic Tomball Depot Plaza, can be funded by HOT revenue, which helps businesses in the long run by making Tomball a more attractive city to live in and visit.
"We're just excited and thrilled that they are expanding here locally," Hillegeist said. "It makes quite a statement when people come into Tomball and see their buildings. To have a corporation move to the place like this says a lot about the community."
Additional reporting by Shawn Arrajj