Wednesday, February 20, 2013

"You'll Love Lufkin!"

Yep, that's our motto.

Whether it applies to you or not, there is no denying that Lufkin is certainly a..."unique" place.

Founded in 1882 as a depot along a misrouted railroad, Lufkin has grown into the county seat of Angelina County and the largest "city" in Deep East Texas.  I use city as a relative term, because our population sits at just a shade above 35,000.  To find us, you have to venture deep into the thick pine forests of east Texas.  Once you arrive at the intersection of Interstate 59 and US Highway 59, about two hours north of Houston and 45 minutes west of the Louisiana border, you'll find enough of a break in the trees to notice civilization that seems to be void of much of the surrounding landscape.  That's us.

Lufkin houses several noteworthy locations, such as: the Texas State Forestry Museum, The Medford Museum of Western Art, and Ellen Trout Zoo.  The Zoo is likely the most remarkable of the attractions that seem out of place in town, as it houses over 800 animals and has been hailed as the "best small town zoo" in America.  I only elaborate on this so I can include two events in the Zoo's history that embody some of the strange happenings that seem to be synonymous with my hometown.  In 2002, Ellen Trout Zoo opened their crown jewel: the hippo exhibit.  We proudly boasted that our town had only the second ever hippo exhibit west of the Mississippi River, a truly remarkable feat.  Unfortunately, several years later, a visitor lobbed an inflatable ball into the hippo habitat.  The hippo ate the ball and suffered fatal internal injuries as a result.  Secondly, in the 70's, the zoo housed two beautiful whitetail deer in one of their earliest exhibits.  Said exhibit was promptly closed, however, due to a crazed hunter shooting the buck in the exhibit, cutting through the fence, and stealing the poached deer as a prize.  That actually happened.

Back to the town.  Lufkin was once a traditional east Texas small town, driven by agriculture and resource based industry.  We boasted two major paper mills, Temple-Inland, a fortune 500 building and packing materials production company, and Lufkin Industries, the largest producer of long-haul trailers and one of the largest oilfield equipment producers in the world.  However, as the changes of the new millennium have implemented themselves, Lufkinites have seen the closure of both paper mills, the downsizing, merger, and relocation of most of Temple's services, and the product base of Lufkin Industries reduced to only replacement gears and maintenance parts for trailers and derricks.


Lufkin Industries' "Rudolph the Red-Nosed Pumping Unit, seen in action here

The town has seen major demographic changes as a result of this.  We now feature a <50% married couples rate and a near 15% rate of households with a single mother.  The median income of Lufkin sits at a meager $30,922, the per capita income has fallen to $17,613, and almost 20% of the population lives under the poverty line.  Despite these staggering stats, the people of our town love and take care of one another.  As a result of this ever-changing economic environment, Lufkin's younger demographics are starkly different from the older folks in town.  

The best example of this new age is seen at Lufkin High School, the lone high school serving the city.  Upon dissecting the student body, you would find that the caucasian, hispanic, and African-American populations each account for almost exactly one-third of the students, each.  We boast the only 5A classification for any high school within two hours of us, regardless of direction.  The Lufkin Panthers boast a proud athletic tradition, producing state championships in all three major boys sports and producing such football stars as Dez Bryant, Reggie McNeal, and Jorvorskie Lane.  Although I concentrated my athletic career in baseball, Abe Martin Stadium (Lufkin's football stadium) is my favorite of our athletic landmarks due to its iconic status and my memories of never missing a home game for 18 years.

One of many packed playoff games at Lufkin's Abe Martin Stadium

Many of my other fond memories of home come from the landscape and all that comes with it.  For an outdoorsman, Lufkin serves as an ideal location to do a little bit of everything.  The abundance of water, foliage and plant life, and high levels of undeveloped land surrounding the town harbors a vast array of game.  Whether you fancy deer, duck, hog, varmint or even gator hunting, you can find a place to do it within 30 minutes of your home.  If you're searching for gators, you'll find yourself at either Toledo Bend, the reservoir that straddles the Louisiana-Texas Border, or Lake Sam Rayburn, the largest lake located wholly in Texas.  Either of these places provide world-class freshwater fishing and have served as hosts of some of the most prestigious fishing tournaments in existence.  I prefer Rayburn, as it is much easier to engage in watersports there without damaging your boat.

Lake Sam Rayburn from above (the Lufkin side)

Although all these other places are great, I've saved my absolute favorite location in Lufkin for last.  If you venture into the old parts of town that have become a bit run-down as Lufkin grew outward, you'll find Taylor Bros. Paint and Floor Covering, my family business.  Entering its 85th year of operation, Taylor Bros. has served as the life-blood of my family since soon after our arrival in Texas.  In the 1910's, my great-great-grandfather moved his family from Tennessee, deciding to settle at the community around the railroad junction in Lufkin.  Fast forward about 15 years: the eldest of the six Taylor children, my great-grandfather, proposes an idea to his three brothers that the four of them open a paint store in town.  The four brothers, all of whom worked into their eighties, forged what would come to be known as the most respected paint and floor covering business in east Texas.  Over the 85 years, 17 different Taylor men, including myself, have worked at the "shop" in some different capacity, which is now owned by my father, uncle, and great-uncle.  We are responsible for some venues that Aggies are very familiar with, having done the paint and floor covering work in the Zone Club in 1999 and doing the same work on the upcoming RC Slocum Nutrition Center, next to the Bright Complex.  I grew up in the shop, learned just about everything I know about life there, was assumed to have and expected to maintain an image of hard-working, respectful, and fiercely loyal that had become synonymous with our last name there, and spent invaluable time with our sprawling, now 40+ member family tree there.  The shop is the nearest and dearest place to my heart and it's really not even close.  The pride I feel that it is still around and still stands for everything my great-grandfather wanted it to means more to me than I could ever imagine.  Though it isn't something that will immediately come up in others' discussions of Lufkin, it warrants inclusion in this one.  If you ever stop through town, feel free to drop in and say hello.  The door is always open, there is always great conversation and visitors to chat with, and there's always a complimentary cold beer (or two, maybe three..)

Google Earth screenshot of Taylor Bros. Paint and Floor Covering


Wednesday, February 6, 2013

Thoughts on a Guest Lecturer

Last Monday, my finance class had the privilege of hosting two guests speakers during our lecture.  These two speakers, Dr. Samuel Harrison and Mike Gentry, spoke of their experience with real estate development and contractual issues that pertain to topics we were covering at the time.  After listening to the business partners tell of their current real estate deal, I was able to further confirm my growing suspicion that I might be interested in a career in real estate.

Harrison and Gentry came to speak with us about a commercial development project they are in the process of brokering.  The site of the development is a plot of land, owned by Harrison's family (his great-grandfather won it in a poker match!), at Highway 6 and Briarcrest.  After receiving an offer worth consideration, Harrison's family decided to move forward with the development of their property.  As of now, the plan for commercial development includes a hotel and "super" gas station.

At this juncture, Harrison enlisted Gentry, a real estate attorney, as counsel moving forward in the deal. As seems to always be the case in development deals, several hurdles presented themselves along the path to the current point.  The notable setback that was discussed involved the removal of oil pipeline infrastructure that was no longer in service.  During the removal process, a small amount of oil was spilled onto the property.  Though not catastrophic in its quantity, the spilt oil proved to be potentially hazardous enough to warrant concerns about foundation issues on the land.  The end result?  Complete soil replacement, costing $250,000.  As tends to happen, this issue managed to trigger another one.  This second roadblock required a search of the property for historical artifacts, due to its proximity to a historical site, the town of Boonville, TX.  Upon solving this problem with no issues, the project was able to continue smoothly.

In conjunction with their field experiences, the two men spoke of the contractual elements of their deal. They explained escrow to us, a topic I had always been unclear on, and the inner-workings of negotiating development deals.  I learned that escrow is a bit of a cousin of layaway in principle, requiring a buyer to provide a seller with payment in return for exclusive rights to the property during negotiation.  In said negotiation, things like feasibility tests and zoning rights are handled, culminating in the buyer's decision on whether or not to move forward with the deal.  The two men provided us with a few seller's tricks in the negotiation that serve to skirt as much of the costs as possible towards the buyer (that I'll hopefully get to carry these out someday), as well as other issues, like dealings with TxDOT (my grandfather's employer for 40 years.)

Everything about this lecture managed to pique some part of my interest.  My personal experiences with land transactions were comparable to our lecturers circumstances, but differed enough to provide with with some full circle perspective.  The legal issues also fascinated me.  I've always been one to thoroughly examine anything I'm given, searching for loopholes, caveats, or any inaccuracies to use as ammo in an argument.  The "seller's tricks," as I've been calling them, were a perfect example of something I would do in the situation.

As this class progresses, I'm realizing that I would love, as well as be suited for, a career in real estate.  Stay tuned to see if anything changes!