4A Wichita Falls Economic Development Minutes - 06/21/2013MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
June 21, 2013
PRESENT:
Gary Shores, President § Members RECEIVED In
Dick Bundy, Vice Preside nt/Sec.- Treasurer § CITY CLERK'S 0-F.17
Reno Gustafson § DATE:
Dave Lilley §
Gary McLendon § BY: _-' T! ^ ,;F, _8 %h
Glen Barham, Mayor § City Council
Kevin Hugman, Assistant City Manager § City Staff
Miles Risley, City Attorney §
Linda Merrill, Recording Secretary §
Michael Paris § Chamber of Commerce & Industry
Joe Walraven § Eagle Rail Car Services
Marc Walraven §
Marie Libby § Attendee
1. CALL TO ORDER
President Gary Shores called the meeting to order at 3:30 p.m.
2. APPROVAL OF MINUTES /REPORT OF FINANCIAL CONDITION
Dave Lilley moved for approval of the April 24, 2013 minutes. Seconded by
Reno Gustafson, the motion carried.
I EAGLE RAIL CAR SERVICES RECRUITMENT PROJECT
Mr. Shores introduced Joe and Marc Walraven with Eagle Rail Car Services.
Their company refurbishes and repairs rail cars, and they are interested in opening a
branch in Wichita Falls.
Michael Paris said the letter of incentives for Eagle Rail outlines the following: a
forgivable loan of $500,000 for a seven -year term; cash for jobs at $352,000 for three
years; and a skills development training grant at $76,800 for a five -year term. The full
package totals $928,800.
Marc Walraven asked the Board to extend the term on the cash - for -jobs incentive
from three to seven years. They will maintain the forgivable loan employment criteria for
that same length of time. Even though their goal is still three years, it would give them
flexibility in an uncertain economy.
Joe Walraven distributed a map indicating the existing railroad tracks on the
property they are purchasing, as well as the eight to ten more feet they propose to add.
Initially, they will be able to hold 130 cars. The company's other three shops (in Elkhart
HA legaNA & 4B \4A Corp \4a Minutes\2013\2013.6.21 4a minutes\2013.6.21 4a minutes.doc
WFEDC — Minutes of June 21, 2013 2
and Roscoe, Texas, and Cairo, Ohio) have acquired air permits for blasting, painting,
and cleaning of tank cars. It will take about six months to receive those permits for this
location. In the meantime, they have construction work to be done, and they can
perform other repairs that do not require such permits.
Marc Walraven added that the current layout is phase 1 of the construction. They
will add more track and facilities as is required. They will spend $800,000 to $900,000
on painting and blasting booths. Mr. Risley asked if the booths are portable. Marc
Walraven said they are bolted to concrete, but come in panels and can be removed
without damaging the property.
Mr. Shores thanked the Walravens for their presentation.
4. EXECUTIVE SESSION
Mr. Shores adjourned the meeting into executive session at 3:47 p.m. pursuant
to TExas GOVERNMENT CODE § §551.071, 551.072, and 551.087. He closed the
executive session and announced the meeting back into regular session at 3:52 p.m.
Reno Gustafson moved for approval of the proposed incentives for Eagle
Rail Car Services in the amount of up to $928,800 for costs related to the
retention and recruitment of primary jobs at the company's proposed facility in
Wichita Falls. Seconded by Dave Lilley, the motion carried.
5. MODIFICATION OF ECONOMIC DEVELOPMENT SERVICES CONTRACT WITH THE
CHAMBER OF COMMERCE
Mr. Paris said this request would divert $33,000 from the salary of the
President/CEO position and allocate that sum to the search for someone to fill that
position. Mr. Shores said the search committee, of which he is a member, is holding its
third meeting next Wednesday with the search team to review the first several resumes.
The process is going very well. The company doing the search is well respected and
their sole activity is to search for Chamber executives nationwide.
Dick Bundy moved to divert $33,000 from the salary of the PresidenvCEO
of the Chamber of Commerce and Industry and allocate said sum to the search
for a replacement for that position. Seconded by Reno Gustafson, the motion
unanimously carried.
6. UPDATES AND /OR POSSIBLE ACTION ITEMS RELATED TO NATURA AND CARTER
AVIATION
Mr. Paris gave a briefing regarding Tobol Enterprises. Their cash - for -jobs
incentive package was set up based upon salaries ranging from $17 per hour up to
compensation for executives. Of the 20 employees hired, 12 are paid less than $17 per
hour. Tobol is asking that the incentive be restructured on a prorated format. They
would still receive some incentive, but obviously not as much. The President can
approve this amendment; this is simply a briefing.
WFEDC — Minutes of June 21, 2013 3
Gary McLendon asked the status of Carter Aviation. Kevin Hugman said Jay
Carter signed the promissory note this week and his payment was processed. Mr.
Risley said he has met seven of the eight milestones; he will probably not reach the last
milestone of 50 employees. Mayor Barham urged Jay Carter to fly the aircraft from
Olney to Wichita Falls. Mr. Carter said they would try. It is not unusual for them to fly
two to three hours at Olney; however, their certificate only allows them to fly within a
five -mile radius of the airport.
Mr. McLendon asked about the open projects of Sharp Iron and Health Care
Equipment (buydental.com). Mr. Shores said those companies, as well as others with
whom the WFEDC had outstanding commitments, were sent letters informing them that
the WFEDC's commitment would be terminated, subject to renewal, should they not
request an extension. Mr. Hugman said no communication has been received from
either company.
Mr. Paris said the first installment on Magicaire's loan is due now. This is the first
year they have had to meet the criteria of 105 positions. They are six positions short, so
they will owe the Board $3,300 for those positions on the first loan payment. They do
expect to fill those positions, however.
Mr. Paris said the Chamber has received an RFI from the Governor's office for a
graphite tube manufacturer. The company would need at least 1 million gallons of water
per day. This water actually comes back as recycled water. They want to see
confidence from the City that the water will be there. Mr. Shores said it was unclear
whether it needed potable water, or if it could be gray water. Mr. Paris said he could see
if they can get an answer from the consultant.
Mayor Barham said they want 20 -25 acres in an industrial park, where they
would build a 1600 x 550 building that is 50 feet in height. Whatever water they will use
would go right back into the waste water system. They do not need the water until 2016.
By then, the City will have its emergency reuse project finished and a long -term project
well underway. They would employ 60 people.
Dick Bundy suggested Excalibur be mentioned to the Walravens. They do have
to paint some of those refurbishments, and Excalibur has a federally approved coating.
Gary Shores asked if any more has been heard from regarding the electric plant.
Mr. Paris said they will take no further action here until they have obtained air quality
permits for their plant in the Harlingen /Brownsville area.
7. ADJOURN
The meeting adjourned at 4:15 p.m.
Gary Sh res, Pre ident