By DUSTIN WENZEL
Chronicle Correspondent

The rapid development of homes and schools in the Katy area has been frequently noted over the last 12 months.

Lost in the shadows of this news, however, has been the maturation of the area’s business sector, which built off momentum from a record-breaking 2006.

While exact numbers will be unavailable until later this month, Katy Area Economic Development Council CEO Lance LaCour expects 2007 business additions to be drawing near to the 7,000 jobs and more than $1.5 billion in capital investment in 2006.

“I have been told by numerous sources that the Katy area is the hottest area in Houston for new development,” LaCour said. “Many developers and projects have their spotlights on this community.

“Our impressions and expectations at the beginning of 2007 were great. We felt we were going to have a great year, but we knew it would be hard to top 2006, which yielded the announcement of BP America’s $650 million, 2,000-job expansion at Westlake.”

BP’s announcement drew jobs and dollars to the Katy-area economy a year ago and continues to pay huge dividends for the area’s business sector because growth attracts more growth.

‘Medical Center West’
Notable announcements are in the medical sector, where Texas Children’s Hospital, The Methodist Hospital and St. Luke’s Hospital have committed to add more than 1,000 jobs through $770 million in development. Existing hospitals Christus St. Catherine’s and Memorial Hermann Katy completed expansions in 2007.

“You also have to recognize how quickly our community is becoming the ‘Medical Center West,’ ” said Ann Hodge, Katy Chamber of Commerce president and CEO. “When we moved to Katy 25 years ago, these health-care services could only be obtained in the (Texas) Medical Center.”

Office space
Along with medical development came movement in industrial and business sectors.

Developments include:

• Furniture retailer Rooms To Go plans to open a $50 million distribution center.
• Murphy Oil and Technip leased more than 189,000 square feet at The Offices at Park 10.
• The Maxwell Group, an executive search firm, plans to build a 135,000-square-foot, LEED-certified office building at The Offices at Park 10.
LEED refers to the Leadership in Energy and Environmental Design Green Building Rating System.

• Foster Wheeler, global engineering and construction contractor and power equipment supplier, revealed plans for a 330,000-square-foot office tower that will add 1,000 jobs in 2008 and an additional 500 jobs by 2009.
• Opus, a real estate development company, announced a 400,000-square-foot office building off Texas 6 and the Katy Freeway.

Added LaCour, “It is my understanding that many other retailers, including dining establishments, are considering Katy.”

The Katy EDC has been impacted by growth, seeing membership increase to nearly 100 and building relationships with other development entities, he said.

It is working on 30 prospects that could create 6,000 jobs and $600 million in capital investment, LaCour said.

“There is a great spirit of cooperation in the business community and between Katy-area business organizations like the chamber and other area economic development organizations,” LaCour said.

“I believe you will see a healthy, diverse mix of office, industrial and commercial users locate in the Katy area in the next two years.”

Chamber membership
Among the most notable additions to Katy’s retail sector was the first phase of LaCenterra, a 33-acre, mixed-use project developed by The Vista Companies that features 170,000 square feet of retail space and 90,000 square feet of office space in Cinco Ranch. The development’s second phase, which includes 230 residential units, is expected to open this fall. Within four months of the opening of the development’s first phase, the Katy Area Chamber of Commerce moved its offices to LaCenterra.

The growth resulted in 137 new members to the chamber’s roster in 2007 and compelled the entity to dramatically increase programs offered by its Business Resource Center, which gives members tools and resources to grow their businesses. It also conducted an extensive survey to address the needs of its members and launched a relocation program for new families moving to Katy.