Economic Development Committee Meeting: Integra TEZ & HISD Update – September 17, 2025

The Houston City Council Economic Development Committee, chaired by Mayor Pro Tem Martha Castex Tatum, met on September 17, 2025, to hear two major presentations: an update from Integra Mission Critical on its Texas Enterprise Zone (TEZ) investment in District B, and a progress report from Houston ISD Superintendent Mike Miles on academic outcomes and district reforms. The meeting also included extensive public testimony, primarily critical of HISD’s New Education System (NES) model. No votes were taken; questions and concerns will be submitted to HISD for follow-up.

Consent Calendar

• No consent calendar items were discussed.

Public Comments & Testimony

• State Representative Lauren Ashley Simmons urged council to hold HISD accountable, stating that parents and community members are not simply “disgruntled” but have legitimate concerns about top-down mandates, curriculum errors, and loss of local control. She emphasized that she does not want Superintendent Miles to fail but wants transparency and collaboration.
• Neely Stewart, a parent at Durham Elementary, described abrupt changes: removal of teachers and librarians, reassignments after school year began, substitutes in classrooms, and the dismantling of the library into a “team center” despite available empty classrooms. She cited worksheets with errors, denied bathroom breaks, and shortened recess as undermining learning.
• Jessica Yannis, a former Love Elementary parent now at Durham, argued that Miles’s leadership lacks trust and that ratings do not reflect the real decline in student and teacher morale. She invited council members to visit schools unannounced.
• Ruth Kravitz, former AP math/chemistry teacher, claimed Miles misrepresented satisfaction data (e.g., parent and teacher surveys) and argued that scores are inflated by restricting access to advanced coursework (e.g., biology, algebra) in NES schools, harming student pathways.
• Case Mundy, a Durham parent and business owner, used TEA rating methodology to argue that gains are largely due to a flawed formula that discards average STAAR scores. He cited a 32.2% teacher turnover rate and a 4% enrollment decline (with NES schools down 12%) as evidence of deeper problems.
• Jackie Anderson, President of Houston Federation of Teachers, reported that since June 2023, over 10,000 employees have left HISD; teacher turnover hit 32.2% (nearly double the state rate). She warned that enrollment loss harms funding and long-term workforce readiness.
• Diane Almos Guzman (East End LULAC) and Jessica Campos highlighted failures for English language learners and immigrant families, claiming that bilingual/ESL services are being waived inappropriately and that Spanish-speaking parents are too scared to speak up.
• Amy Erickson raised concerns about the Houston First Convention District Transformation Project, arguing that street closures and a $40M garage have begun without a vetted budget or master plan update, and that the debt (projected at $2.9B) puts taxpayers at risk.
• Kyle Tucker (last speaker) thanked the chair for her humanity and rejected Miles’s characterization of concerned parents as “extremists” or the “great unwashed,” noting that many are business owners, voters, and taxpayers who chose to be there for their children.

Discussion Items

Integra Mission Critical TEZ Update

• Senior Staff Analyst Andrew Busker introduced the presentation, noting that Integra is the first company to return to the committee after a TEZ nomination to report on progress.
• Elaine Undergraff (VP Sales & Marketing) and Melina Marshall (Director, Indirect Tax) described Integra’s turnkey data center design and manufacturing. The Houston facility (1.25 million sq ft) is their largest, opened in 2024. They committed $10M investment; $6.2M already invested, $3.7M remaining for office buildout.
• Employment: 863 total headcount at Houston facility as of September 11, 2025 (up from 744 a week earlier). The company promised 291 jobs in five years but far exceeded that. Assembly technicians start at approximately $25/hour.
• Innovations: “OptiStack” modular equipment stacks to double data center density for AI workloads, reducing land and resource use. Heat maps show employee residences across Houston.
• Turnover: Company turnover is one-fourth the industry standard, attributed to a buddy system, 90-day onboarding, and training programs.
• Council Questions: Councilmember Kamin asked about environmental mitigation (water recirculation, low PUE). Councilmember Flickinger asked about competitors (none for full turnkey) and requested dollar amounts for tax abatement benefits (not provided). Staff from Councilmember Alcorn’s office expressed interest in learning more about permitting and incentives. Councilmember Kamin clarified that the $25/hour wage is for full-time work.

HISD Update with Superintendent Mike Miles

• Superintendent Miles presented two years of academic data, emphasizing that HISD went from 121 D/F-rated campuses in 2023 to 16 D and 0 F in 2025, and from 93 A/B campuses to 197. He claimed 74% of students now attend A/B schools, and that the district has broken the link between zip code and destiny.
• Achievement Gaps: Miles showed that Black, Hispanic, economically disadvantaged, and students with disabilities improved at faster rates than white students, narrowing gaps. Reading scores rose 7 points for white students, 14 for Black, 15 for Hispanic. Math gains were similar but slightly smaller.
• Methodology: Miles attributed success to a “high performance culture” with clear expectations, accountability with support, non-negotiable instructional strategies, and pay-for-performance. He stated that teacher salaries are the highest in the region (up $8,000 average since 2023).
• Council Q&A:
  • Councilmember King probed safety (classroom doors unlocked if sprinkler system present? Miles confirmed, emphasizing vestibules). She raised concerns about budget deficits, executive salaries, PR spending (billboards), non-working AC, and the failed bond. Miles responded that the district inherited a $256M deficit from one-time ESSER spending on recurring expenses, and that prioritizing resources led to gains.
  • Councilmember Pollard noted that her child’s school (St. George) dropped from 89 (almost A) to 79 (C) under new leadership, while some historically low-performing schools jumped to high ratings. Miles said variability exists but the overall trend is positive; he maintained that even high-rated schools with large achievement gaps (e.g., 45%) need intervention.
  • Councilmember Martinez asked about enrollment decline and sustainability. Miles acknowledged a drop (attributed partly to deportation fears) and said cuts in staff and services will occur over time if enrollment continues to fall.
  • Councilmember Ramirez pressed on allegations that test scores were boosted by moving students out of advanced courses (e.g., algebra, biology). Miles countered that the percentage of 8th graders in algebra remained stable (21%), and that moving biology to 10th grade is a smart strategy for English learners to avoid over-testing in 9th grade.
  • Councilmember Evans-Shabazz asked about teacher morale and certification. Miles reported that 17% of teachers are not yet certified (1,700 out of ~10,500) but said 9,000 applied for 1,700 jobs; he argued that certification is less important than on-the-job coaching and results.
  • Councilmember Kamin sought specifics on deportation-related enrollment loss (Miles said data will come in October) and asked about policies to protect children and families. Miles said schools are safe spaces and entry requires a warrant. She also asked about retention; Miles said effective teachers are retained at 85-90%.
• Rick Campo, President of HISD Board of Managers, then spoke. He emphasized the connection between education and workforce development, citing the Port of Houston’s need for skilled workers. He stated that HISD is improving and that changes are necessary, though he acknowledged communication must improve. He read an email from a supportive parent and asked for a more civil discourse.
• Councilmember Kamin thanked Campo for his service and asked how to improve community engagement. Campo responded that change is hard and that the district is working on communication, but urged the public to focus on data.

Key Outcomes

• No votes were taken during the meeting.
• Committee members will submit written questions to the superintendent’s office; responses will be posted on the Economic Development Committee webpage.
• The next economic development committee meeting is scheduled for Wednesday, October 15, 2025, at 2:00 p.m.