4A Wichita Falls Economic Development Minutes - 05/17/2018MINUTES OF Tilt'
WICHITA FALLS ECONomic DEVELOPMENT CORPORATION
May 17, 2018
PRESENT:
Dick Bundy, President § WFEDCMembers
Reno Gustafson, Vice Presideiit/Secretary-'I'reasurer §
Leo Lane §
Darron Leiker §
DavidToogood §
Stephen Santellana, Mayor § Mayor & Council
Bobby Whiteley §
. I lim, Dockery, Deputy City Manager/CFO § City Staff
Paul Menzies, Assistant City Manager §
R. Kinley I legglund, Jr., City Attorney §
Linda Merrill, Recording Secretary §
Henry Florsheim, CE'O § CC1
Kevin Pearson, V.P., Economic Development §
Travis Haggard, V.P., BR&E §
Adrene Wike, Research Associate §
Brian Havins, Marketing §
Sarah Harpole, Administrative Assistant §
Glenn Barham § SMAC
Ron Duncan, President § MagicAire
Doug Burns §
1. Call to Order
Dick Bundy called the meeting to order at 3:30 p.m.
2. Financial Report
Jim Dockery said May's sales tax receipts had been received (for March's actual sales),
and they reflect an increase of 8.84% over the prior May's receipts. Out of the six months of` sales
tax receipts received, all have shown positive numbers except for one, which \vas virtually flat.
The fund is running 4.74% ahead on sales tax collections. If this pace continues, it would end the
year at $3.9 million - $200,000 more than was budgeted.
3. Approval of Minutes (4/19/18)
Mr. Dockery and Kevin Pearson noted corrections to be made to the minutes. Reno
Gustafson moved for approval as revised. Seconded by Darron Leiker, the motion carried 5-0.
4. Discussion and possible approval of incentives for MagicAire
Travis Haggard noted that Ron Duncan, President of MagicAire, made a presentation at
the April 19 meeting, and was back today to present additional int'orination.
Mr. Duncan presented an overview and history of the company. MagicAire manufactures,
designs and sells I IVAC equipment. They have found niche segments in the industry:
• Products: Unit ventilators are 3011/o of their sales.
• Delivery: a 3-4-week schedule, or a 2/5/10 day special.
• U.S. Manufacturing
The company has a new opportunity with Carrier Replacement Components, an existing
customer. This venture would create 20 new jobs and hell) retain the existing I 00jobs. They need
$1.3 million in the form ofa forgivable loan from the WFI--'1DC in order to make this happen.
Their Current 100 jobs break down into 40 salaried positions averaging $73,000 per year,
and 60 hourly positions, averaging $42,000 per year. The new positions would include six salaried
positions ofat least $55,000, plus 14 hourly positions.
Carrier has been buying the coil product from a competitor., but MagicAire is a potential
location lor this business. Carrier wants to split the business between Wichita Falls and Grenada,
Mississippi. They are prepared to commit three -fourths of the business to Wichita Falls and one-
fourth to Grenada. If MagicAire cannot accommodate there, the entire project would go to
Grenada. MagicAire has to acquire new equipment, as two-thirds of the new product cannot be
built with its existing equipment.
Mr. Bundy thanked him for the presentation.
5. SMAC Update
Glenn Barham said SMAC had made its annual trip to Washington, D.C. in April. During
this trip, they were fortunate to visit with the Secretary of the Air Force I leather Wilson, and Under
Secretary of the Air Force Mathew Donovan. They discussed wind farm issues, the T-X training
aircraft and its maintenance facility.
They also met with Major General Brian Robinson, head of Operations. Mr. Barham
believes his office will make the final decision where the T-X will be located. They gave him a
strong argument on the multi -national aspect of ENJ.JPT.
Next on their list was Steve Sample, Deputy Director of the [)oD Siting Clearinghouse.
bast year, the focus was on renewable energy. This year, since the passage of the National Defense
Authorization Act, the focus is on national security. If a wind farm will cause a negative benefit to
national security, a permit will be denied.
Richard Hartley, the Secretary of Installations. LAivironment and Energy, also met with
them. He is very non -committal but does listen to their argument.
They have also enlisted NATO support. Kay Bailey Hutchison is the U.S. Ambassador to
NA'ro. She will lobby the Air Chiefs of other NATO nations to push for this to happen.
While in Washington, they also met with Senators Cornyn and CRIZ, and Representative
Thornberry. This is Mr. Barham's second trip to D.C., and the first one he has coordinated. lie
feels good about the reactions from, those they visited.
He reminded the Board that they helped to fund the SWOT analysis in February -April. It
listed nine strengths, including the base mission, community relations, support and services, and
encroachment management. Weaknesses include Sheppard's training base status, which limits its
perceived significance and prominence.
There were 45 opportunities, one of which was to push Rep. Thornberry to take a stronger
stand for SAFB on the House Armed Services Committee.
The analysis suggested a shift away from BRA( proofing to finding new opportunities and
promoting base readiness and mission enhancement. This was already in the works.
Sheppard would be a good place for drone training, for the T-X maintenance facility, and
more nations could be added to the ENJJPT prograrn.
The work that the Work Services Corporation does on base is a strength, and the dining
contract is a benchmark for the Air Force.
The analysis listed 23 threats, including security to the facility. The gate project is meant
to address security, among other things. There are also encroachment concerns. The City and
Sheppard should work together to bring the entire base into the city limits. That would take care
of encroachments to the facility, but not of its air space.
1"'here should be more Tricare specialists in Wichita Falls; many medical providers are
getting out of the network.
SMAC's senior leadership will nicet to detennine how the organization can help address
the results of the analysis.
fie noted the cost for the analysis came in under budget, and lie will be returning the balance
of those funds to Mr. Dockery.
6. Strategic Plan Update
Henry Florsheirn said the implementation plan was discussed April 26. They are waiting
on the final version based on feedback given to Market Street. Once they have it, they will
assemble action teams and assign chairs. These teams will stay together over the next year, and
will also include interested persons who have not been involved from the beginning.
7. Executive Session
Mr. Bundy adjourned the meeting into executive session at 4:16 p.m. pursuant to Texas
Goverrinient Code §551.087. f le announced the meeting back into regular session at 4:55 p.m. The
subjects posted in the Notice of Meeting were deliberated, and no votes or further action was taken
on these items in executive session.
8. Motion
MagicAire - Mr. I-eiker moved to grant a $500,000 seven-year forjvable loan incentive
package to MagicAire for the purchase ofnecessary equipment for their new RC Coil Project, to
be contingent upon the creation of 20 new jobs above its current threshold of 100 -c�Io ees.
Seconded by Mr. Lane, the motion carried 5-0.
9. Adjourn
The meeting adjourned at 5:00 p.m.
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