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4A Wichita Falls Economic Development Minutes - 01/18/2018MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION January 18, 2018 PRESENT: Dick Bundy, President § WFEDC Members Reno Gustafson, Vice President/Secretary-Treasurer § Leo Lane § Darron Leiker § David Toogood § Stephen Santellana, Mayor Brian Hooker, Councilor, District 3 Jim Dockery, Deputy City Manager/CFO R. Kinley Hegglund, Jr., City Attorney Linda Merrill, Recording Secretary Kevin Pearson, V.P., Economic Development Travis Haggard, V.P., BR&E Adrene Wike, Research Associate Brian Havins, Marketing Sarah Harpole, Administrative Assistant Wade Chaney, Staff Scientist Sheri Larson, Principle Enviroscientist Michael Stanford, President Michael Thompson Jody Bloodworth Leland Wetzel, CEO Rachel Wetzel Kevin Darnell, Owner Don Daugherity 1. Call to Order § Mayor and Council § City Staff § Chamber of Commerce and Industry § Braun Intertec § Sharp Iron Group § NexStar § Xylo Bats § M & F Litteken § Consulting Architect Dick Bundy called the meeting to order at 3:30 p.m. 2. Approval of Minutes (11/16/17) Reno Gustafson moved for approval of the minutes. Seconded by Darren Leiker, the motion carried 5-0. 3. Financial Report —presented by Jim Dockery Sales tax receipts are running 3% ahead of this time last year. However, only two payments have been received (for October and November), so it is premature to be too hopeful. There was discussion concerning funds that are contractually committed for projects that may never materialize. The Board desires that staff continue to monitor these projects, and if and when funds can be unencumbered, they should be released pursuant to the contractual terms. 4. Discussion/possible approval of Phase Il Environmental Study for ATCO building Kevin Pearson noted that Clayton Homes pulled out of the deal to purchase the ATCO building after their Phase 2 environmental study found contamination at the southeast corner of the property. The Board feels it is prudent to do another Phase 2 study and look at the entire parcel. He introduced Sheri Larson and Wade Chaney of Braun Intertec. They have submitted a proposal to conduct this second study. Mr. Chaney said there are several `recognized environmental conditions' on the property, including an above -ground storage tank, tractor/trailer storage, a railroad spur with a loading rack, as well as a former pond. There are stains on the concrete. The previous assessment revealed problems with the manufacturing facility's solvents from their processes. They propose to convert 12 soil bores into permanent monitoring wells, down to 20 feet, in order to capture any potentially hazardous substances in clay. There are no other wells in the area for comparison, so it is possible they may have to drill even further. The cost for additional drilling would be nominal, but they would seek authorization before doing so. The cost for this work is estimated at $50,665. It should take six to eight weeks, from drilling to lab data results. The company does not make any reports to the state; as property owners, the WFEDC would be responsible for such reporting, should it be necessary. 5. Discussion and possible approval of funds for workforce recruitment for Sharp Iron Travis Haggard said he has visited with Michael Stanford of Sharp Iron since October regarding its need for more welders. However, the company was not interested in `cannibalizing' employees from other companies. Mr. Stanford has contacted Vernon College and the CTC, and while these are good sources of employees, they are not sufficient in quantity for their needs. They have been hiring for the past 90-120 days, but they are still lacking eight welders. Their discussions led them to the Tulsa Welding School, the largest in the country. Sharp Iron is interested in piloting a program that Mr. Stanford feels could be used by other companies and be helpful not only to those companies, but to the community. The total request before the Board is $24,000. The proposal is that Sharp Iron would offer a graduated welding student a position. They offer a salary of about $55,000 per year, including overtime, a $1,000 sign -on bonus, and what they call a "demand premium" of an additional $3.00 per hour. This is a short-term stipend that can be withdrawn at any time, but is paid when there is a high demand for these workers. It amounts to about $650.00 per welder per month. Sharp Iron would be responsible for administering the program, but would not keep any of the money. The WFEDC would provide a $1,000 match to the sign -on bonus and relocation expenses of $2,000, and the Chamber of Commerce would provide recruiting support and resources. 2 Mr. Dockery asked if Sharp Iron intended to front the money. Mr. Stanford said it would depend on when the incentives would kick in. The relocation incentive is by nature immediate. If the agreement required that the employees had to be residents for six months prior to those expenses being released, the company would have to front that money. 6. Discussion and possible approval of incentives for Nexstar, Inc. Mr. Pearson introduced Michael Thompson, who is interested in starting a new welding fabrication shop in the former Lone Star Tool building in downtown Wichita Falls. Mr. Thompson said the 70,000 square foot facility already has cranes and electricity. He has worked the past 2-3 weeks to gain new customers. He is in partnership with Jody Bloodworth, who has been in the real estate business for over 30 years and has several oil and gas contacts, and Akshay Lazaruz, a consultant for Amazon, who brings diverse marketing and computer skills. Mr. Pearson said the incentive is $7,000 per job for 25 jobs for this year. If they hit this year's goal, they may come back next year with a similar request. Mr. Dockery asked if he anticipates problems filling those positions, due to the lack of welders in the area. Mr. Thompson said he won't have a problem with the first 10-15, as he has worked with them for many years. He applauded the ingenuity of Mr. Stanford's plan to bring more welders to the area. David Toogood referred him to his financials, and questioned him about a plateau, but an increase in labor by 18 employees. Mr. Thompson said they will buy products semi -finished. Over time as they get more employees, they will do more sub -assemblies in-house. Mr. Toogood asked if he is confident in their growth. Mr. Thompson said that he is, as demand is outweighing supply tremendously. Mr. Leiker asked the average annual wage. Mr. Thompson said it is $20 per hour. 7. Xylo Bats presentation Travis introduced Leland Wetzel and his wife, Rachel, of Xylo Bats. They do not have a request before the Board today. A request might come at some time, however, and theirs is an inspiring story. Mr. Wetzel explained to the Board the beginnings of his Christian -based bat - making business, and how his desire to make a gift for his nephew turned into an opportunity to make bats for Major League Baseball (MLB). He has been making bats since 2012, and the company was formed in 2014. It is operated by Leland and his brother-in-law. They received their MLB certification as of September of last year, but did not have the money to buy enough wood. However, Mr. Wetzel entered a contest sponsored by Chip Gaines of HGTV's Fixer Upper and was awarded $25,000. He will be going to spring training and handing out bats, hoping to generate orders. Between 30,000 to 50,000 bats were sold to MLB organizations last year. He is excited to be a supplier in 2018. Mr. Bundy asked how long it takes to make a bat. Mr. Wetzel said it takes 12 minutes. He hopes to buy a lathe that allows for a bat to be made in 1.5 minutes. 8. Stanley building update Kevin Darnell said all repairs and renovations to the Stanley building should be finished in six to eight weeks. The entire parking tot has been cleaned, restriped and resealed. The exterior has been cleaned, patched and painted. The interior offices have been cleaned back to the outside walls, and masonry walls have been demolished. They pressure washed the roof and deck. 3 Mr. Pearson noted the Board put_a new roof on the structure in 2016, and replaced the switch gear. Mr. Darnell said it has not yet been energized. Marvin Groves (Electric) wants to wait until all the painting is completed. Mr. Dockery asked what size of business would work in this building. Mr. Pearson said a 20 jgab company, preferably in aerospace. It is 171,825 square feet in size. Mr. Bundy noted that Binswanger can begin to market the spec building; soon. . Executive Session Mr. Bundy adjourned the meeting into executive session at :50 p.m. pursuant to Texas Government Code §551.087. He announced the meeting back into regular session at 5:36 p.m. The subjects pasted in the Notice of Meeting were deliberated., and no votes or further action was taken on these items in executive session. 10Motions Phase II Environmental.Str Study for A TCO Building. David Too good moved to a p.1� rave up to $55,000 to Braun Intertec to perform a Phase II Environmental Study for the ATCC Building Seconded by Marron Leiker, the motion carried 5-£1. Workforce RecruitinentforSharp Iron. Leo Lane moved to approve up to $24,000 to hire eight people to fill welding positions for Sharp Iron, so long as each employee is brought from outside Wichita Ciaur-ity, establishes residency for at least six months within Wichita County, and remains employed by Sharp Iran for at least six months. The amount of money per job from the 4A Beard is $3,000. Seconded by Reno Gustafson, the motion carried 5-0. Incentivesfor NexStar. Mr. Lane moved to approve lip to $75,000 to hire 25 people to till welding positions for NexStar, so lona as these positions are filled in 2018, and each employee is brought from outside Wichita County, establishes residency in Wichita County, and remains employed by NexStar for at least six months. The amount of money per jobfromthe 4A Beard is $3,000. Seconded by Mr, Leiker, the motion carried 5-0. ATCO operating budget. Mr. Lane moved to approve an additional $75,000 for-ATCO's operating budget for 2018. in addition to the $30,000 already budgeted. for a total of $105,000. Seconded by Mr. Leiker, themotioncarried. 5-0. 1. Adjourn Mr.- Gustafson moved to adjourn the meeting. Seconded by Mr. Toogood, the meeting adjourned -at 5:44 p.m. 'Dick Bundy, President 4