4A Wichita Falls Economic Development Minutes - 08/02/2012i
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MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
August 2, 2012
PRESENT'
Gary Shores, President
Dick Bundy, Vice President /Sec.- Treasurer
Reno Gustafson
Dave Lilley
Gary McLendon
Glenn Barham, Mayor
Tim Ingle, Councilor District 4
Darron Leiker, City Manager
Jim Dockery, Assistant City Manager /CFO
Kevin Hugman, Assistant City Manager
John Burrus, Director, AT &T
R. Kinley Hegglund, Jr., Sr. Asst. City Attorney
Linda Merrill, Recording Secretary
LeAnn Moran
Ross Little
Hank Anderson
Glenn Beavers
Sid Gills
Amy Bobrowitz
Tim Chase, President
Kevin Pearson, Vice President
Chuck White, Executive Committee Member
Jay Carter
Cynthia Laney
Mike Derr
Andy Lee
Clayton Lane
Danny Ahern
Crystal Adler
Lindsay Greer
Susan Martin
Misty Rae Gazdacko
Tom Whaylen
Linda Beltchev
Jeff Stambaugh
§ Members
§ City Council
§ City Staff
§ Wichita Falls Municipal Airport
§ Chamber of Commerce & Industry
§ Carter Aviation
§ Downtown Wichita Falls Development
§ Convention Visitors Bureau
§ Pride in the Falls
§ Sheppard Military Affairs Committee
§ MSU /Idea WF
H: \_legal \4A & 4B \4A Corp \Minutes\2012\2012.8.2\2012.8.2 4a minutes.doc
WFEDC — Minutes of August 2, 2012 2
1. CALL TO ORDER
President Gary Shores called the meeting to order at 3:00 p.m. and welcomed new
member Reno Gustafson.
2. APPROVAL OF MINUTES
Dave Lilley moved for approval of the June 29, 2012 minutes. The motion carried.
3. BUDGET REQUESTS
Carter Copter
The 4A Board has paid Carter Aviation for six of the eight milestones listed in the
contract; there are two remaining milestones that Carter has yet to achieve. Mr. Carter requested
the 4A Board make those final two payments. Carter Aviation cannot agree to give its
Intellectual Property as collateral (as proposed by the 4A Board); that would limit the company's
ability to raise money. Rather, he offers to put up all its hard assets totaling $2.7 million.
Poland is interested in licensing Carter Aviation's technology. Mr. Shores asked if a
proposed September meeting with Polish officials had been arranged. Mr. Carter said that it had
not, but the matter has reached the Ministry of Transportation office in Poland.
Gary McLendon questioned whether production of the aircraft would occur in Wichita
Falls. Mr. Carter said that it would depend upon his company's abilities to meet AAI's needs. He
feels sure AAI will give the company the jobs it could handle.
Chamber of Commerce
Tim Chase said that since its inception, the 4A Board has outsourced its economic
development activities to the Chamber. He devotes more than 50% of his work toward economic
development, while Kevin Pearson's job is 100% dedicated to those duties. The Chamber
requests 100% of Michael Paris' salary for workforce development. The salary for the Vice -
President for the community -wide marketing effort is also sought. The total request is $380,164.
Executive Committee member Chuck White told the Board the Chamber will attempt to
collect more money from the private sector for economic development activities.
Downtown Wichita Falls Development (DWFD)
Cynthia Laney said DWFD requests the sum of $75,000 from the 4A Board. Last year,
the Board granted the group $50,000 plus a $12,500 incentive. The reasons for the increased
request are as follows:
1. DWFD will host the Texas Downtown Association fall conference November 6 -9.
There will be a minimum of 100 -150 people attending the conference on any given day.
2. DWFD assumed the operation of the Farmer's Market in May. Revenues to date
total $2,932, a little over $1,000 over the City's revenues from the market the prior year. The
electrical system has been replaced and expanded; the landscaping has been redone; and a drip
irrigation system was installed. They eventually want to enclose the market and have it open
year -round with a variety of vendors.
WFEDC — Minutes of August 2, 2012 3
3. DWFD is working with the City to replace 30 -year old Christmas banners for City
Lights. The cost to replace 60 banners is $9,000.
DWFD brings 10,000 to 14,000 visitors downtown every year for its events. The Zombie
Crawl brought in enough funds from its first year sufficient to give the Red Cross $1,500.
Membership fees totaled $17,000 in 2010; this year, the total has reached $31,399.
MSU17dea WF
Jeff Stambaugh thanked the Board for three years of support of Idea WF. He attributes 10
jobs created in the local area due to this program, with potential for more jobs in some of the
businesses. They are requesting the same amount of money as last year - $27,500. That is enough
to generate interest and get the new business owners out of the gate.
Sheppard Military Affairs Committee (SMAC)
Tom Whaylen thanked the Board for its support of SMAC. SMAC is requesting the same
level of funding this year as in years past, $100,000.
It has been a successful year. Kay Yeager recently accepted the AETC award for
outstanding community support. The NCO Academy is a six -week school that brings about 200
students to Sheppard every six weeks. The Royal Saudi Air Force bought U.S. planes. Sheppard
received the maintenance contract for them, and may be in the running to provide English
language training for the Saudis. In May, the last of two transmission lines were moved north of
the runway. In addition, some beacons will be installed on the east side of the runway.
Wichita Falls, Wichita County, Burkburnett and Frederick, Oklahoma are all
participating in a joint land use study at Sheppard Air Force Base to ensure there is no land use
around the base that would have a negative impact on the missions.
A consultant study was recently completed. SMAC hired two senior retired leaders — a
civil and a three -star general, both involved with installations and both with less than 12 months
of retirement.
In the spring, SMAC hosted the ENJJPT steering committee meeting; the Memorandum
of Understanding for this program expires in 2016.
Pride in the Falls
Tim Chase introduced Susan Knowles Martin, the new Vice President of Community-
Wide Marketing. Ms. Martin said she the group is ready to move forward with Phase 2. Short-
term strategies involve finding what sets Wichita Falls apart from other communities, utilizing
water resources, and developing a city signage project. Kevin Hugman added that signage
needed to be developed to show what Wichita Falls has to offer. A draft master plan was
presented to the Council at a cost of $1.6 million. The plan is to use $500,000 from reserve
funds, and approach the 4B Board for a matching amount.
The group is asking for the balance of Phase 1 funds to carry them through December
2012 ($84,000), and $200,000 for each of the following three years for Phase 2.
WFEDC — Minutes of August 2, 2012 4
4. DISCUSSION OF 2012 -2013 BUDGET ISSUES, LONG TERM ECONOMIC DEVELOPMENT
FUNDING, AND WFEDC PROCEDURES.
Airport Renovation
Jim Dockery said a new airport terminal has long been a high priority for the City. URS
Consultants prepared a three phase, $36 million plan for the new terminal. The City is optimistic
it will receive $16 million from federal grants, but in order to receive those funds, the City must
move forward with Phase 1 — the entrance road and parking lot. That is a $5 million project. The
City receives an annual entitlement grant from the FAA, and $300,000 to $400,000 in airport
income. The City needs to find $420,000 per year for a 20 -year debt service payment. The City
contemplates approaching the City Council at its August 7 meeting to ask for an endorsement to
approach the 4A Board to request assistance on this debt service payment.
Financial Statement
Mr. Hugman distributed the Board's financial statement. The statement shows the last
three years of adopted budgets and year -to -date expenditures. Revenues are predominately sales
tax driven. He is conservative with revenue projections. He estimates where the sales tax
revenues will be at the end of the current fiscal year and assumes no increase going into the next
year. Sales tax revenues for the current fiscal year (and thus the beginning of FY 2013) are
estimated at $3,565,121.
Other revenues are lease payments at 2400 Burkburnett Road from Atco Structures.
Reimbursement revenues represent the property tax that the 4A Board pays that Atco reimburses.
Total revenues projected for fiscal year 2013 total $3,715.627.
Mr. Shores asked if the money set aside to reimburse City staff time on projects is
sufficient. Mr. Hugman said probably not, and he would take another look at it.
Mr. Hugman reported that the 4A Board has a projected fund balance at the end of fiscal
year 2013 of $9,615,097, provided no other projects are approved. Total expenditures equal just
over $1 million, with a revenues -less- expenses total of $2.5 million.
Mr. Shores adjourned the meeting into executive session at 4:45 p.m. pursuant to TEXAS
GOVERNMENT CODE § §551.071, 551.072, and 551.087. He announced the meeting back into
regular session at 5:35 p.m. The subjects posted in the Notice of Meeting were deliberated, and
no action was taken on these items in executive session.
Dave Lilley moved that the 4A Board approve the expenditure of the loan under
Item 7 upon the completion of the modification of the agreement to include the $2.7 million
inventory and assets of Carter Aviation be included as collateral, and if this or any prior
loan goes into default, then item 7 is in default. Seconded by Mr. Gustafson, the motion
carried.
5. ADJOURN
The meeting adjourned at 5:37 p.m.
Gary aores, resident