TEXAS SNAPSHOT, AUGUST 2012 ODESSA As oil goes, so does West Texas. The record oil prices have made Odessa one of the fastest growing cities in terms of economic and population growth in the country, according to a report released by the U.S. Conference of Mayors. The report conveys Odessa’s average annual growth in the past decade at 9 percent, growing from $3 billion in 2001, to $7.2 billion in 2011. Every sector of the economy is growing, but for how long remains the million- (or billion-) dollar question. Commercial expansion has been steadily increasing from early 2011 to present. In 2010, new commercial construction was just shy of $21 million. Through the first 6 months of 2012, new commercial construction is north of $35 million. Major commercial projects have been under way along the Interstate 20 corridor and Highway 191 by prominent West Texas developers John Bushman and Larry Lee. National retail stores and restaurants have been few and far between in Odessa until recently. Parks Legado Town Center is one of the most popular developments in Odessa. Located on Highway 191, this 68-acre center will be known as the gateway between Odessa and Midland. The Parks Legado Town Center will be the new home for Sewell Ford-Lincoln of Odessa, Residence Inn by Marriott, AimBank, Marble Slab Creamery, Nutrition Bunker and many other restaurants and businesses. A couple of miles west of the Parks Legado Town Center, the Chimney Rock Center is located on Highway 191 and Loop 338. The Chimney Rock Center was started in April 2010 and its first store was Academy Sports+Outdoors. Best Buy opened their doors in late 2011, with ULTA, Marshalls and Kirkland’s opening soon. The new stores are proof that this boom is expected to last. The newest and probably most anticipated project for the area is the new Texas Clean Energy Project (TCEP). TCEP, with only a few more details to iron out before construction begins this fall, has plans for a 600-acre clean coal plant about 15 miles west of Odessa. This coal plant expects to trap 90 percent of its CO2 emissions, making it the cleanest coal plant in the United States. But what makes West Texans the most excited about the plant is not necessarily the technological advances of clean coal, but the potential 1,500 new jobs for the area. The economic boom has also created problems for Odessa and the surrounding area. The influx of oil-related jobs, housing crisis, water shortage and a lack of workers for non-oil related jobs are real issues for the community. Don’t expect to stop through the area and be able to find a hotel. With minimal housing for sale or lease, many oil companies have booked up hotel rooms, even entire hotels, for their workers. The residential rental market has seen a 15 to 20 percent spike in price since early 2011, which have out priced non-oil related jobs. The city has already issued 251 residential building permits for 2012, only 16 shy of the permits issued for all of 2010. Apartment complexes and houses are being built quickly, but to this point, the demand is far greater than the supply. Builders and other industries are having trouble keeping hired hands from darting for the lucrative oil field jobs. Restaurants are being built and unable to open due to the lack of workers. When restaurants are open, often sections are closed and waits are long. City traffic has increased, which means the need for public jobs has also increased. The public sector then looks to hire qualified workers from elsewhere, but have issues finding them available affordable housing. It’s a cycle that doesn’t seem to have an end in the near future. As bad as the housing trouble seems to be, the most critical issue for the West Texas economy is the lack of water. Odessa and other surrounding areas have seen one of the most extreme droughts in recent memory. Rapidly increasing population, a greater water need for oil wells and fracking techniques, and minimal rain, have led local leaders to heighten water restrictions and look for new water sources. Sprinklers are foreign to many Odessa residents. Unless residents have a water well, they are only allowed to hand water their yards once a week for two hours to conserve water. Reclaimed water, groundwater districts and even costly desalination plants have been discussed with no solution in sight. The demand for commercial and residential real estate has increased dramatically during the past year. Houses, apartments, hotels, retail, offices, industrial buildings, education facilities and hospitals are expanding rapidly based on the price of oil and increased population. Most seem to think the prosperity will continue, but no one really knows how long the price of oil will remain high, or if the lack of water will abruptly shut down this well-oiled machine. Only time will tell. — Brent Sims, Realtor with Sims & Guess Realtors ©2012 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 553-9037.