4A Wichita Falls Economic Development Minutes - 09/20/2018MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
September 20, 2018
Leo Lane, President § WFEDC Members
Reno Gustafson, Secretary -Treasurer §
Darron Leiker §
Dave Lilley §
Bobby Whiteley, Councilor at Large § Mayor & Council
Jesse Brown, Councilor District 4 §
R. Kinley Hegglund, Jr., City Attorney §
Jim Dockery, Deputy City Manager § Administration
Paul Menzies, Assistant City Manager §
Linda Merrill, Recording Secretary §
Henry Florsheim, CEO § CCl
Kevin Pearson, V.P., Economic Development §
Travis Haggard, V.P., Business Retention & Expansion
Steve Sage, Plant Manager § Arconic
Jana Schmader, Executive Director § Downtown WF Dev.
Jeanette Charos, Marketing Director §
Scott Poenitzsch §
Jackie Hoegger § i.d.e.a.WF
ABSENT:
David Toogood, Vice -President § WFEDC Member
1. Call to Order
Leo Lane called the meeting to order at 3:30 p.m.
2. Approval of Minutes (August 29, 2018)
With changes noted by Dave Lilley, Darron Leiker moved for approval. Seconded by Reno
Gustafson, the motion carried 4-0.
3. Discussion of financial support for railroad crossing upgrade at Arconic
Kevin Pearson noted the Board had previously discussed the condition of the railroad
crossing into the businesses of Vitro and Arconic. He introduced Steve Sage of Arconic.
Mr. Sage has been with Arconic, a manufacturer of parts for the aerospace industry, since
April. They currently have 1,050 employees, and look to add 100 more. He estimates there are
700,000 crossings a year over the tracks in question. Their condition is rough; the railroad has not
worked on this crossing in over 15 years.
Mr. Pearson went through a photographic presentation, showing the condition of the
crossing and the approaches. The County would improve the approaches to the tracks, from the
subgrade up. The Wichita, Tillman & Jackson Railway would straighten the tracks, to ease some
of the bumpiness. The 4A Board is requested to fund the cost of the materials for the crossing.
Mr. Leiker noted that it is a common scenario that the Railroad would provide the labor to
repair a crossing if another entity purchases the materials. The City had been given the same offer
in discussions with BNSF concerning the 7 th Street crossing.
Mr. Pearson said Vitro is in favor of this project, as well. He believes this is what business
retention and expansion is all about — fixing issues that are important to the area's larger employers.
4. Financial Report (as reported by Jim Dockery)
The financial report reflects the budget through September 17, and provides year-end
projections for this fiscal year.
Sales tax receipts are slightly less than 7% ahead of last year's actuals. The projected
revenue from this source is $3.984 million; the budgeted amount was $3.735 million. Therefore,
the Board's main revenue source should exceed estimates by $250,000.
Interest earnings are doing better than anticipated; $100,000 was budgeted, and $187,000
has been earned through September 17. The big line item for revenues is the $1.5 million for
DEAAG grant funds for the SAFE Main Gate Project. As those funds come in, that revenue will
be recorded.
Annual programs are going to be almost identical to what was budgeted; the Chamber
budget will be less due to the vacancy in the Choose director position.
Payments have been made to USA800 totaling $1.659 million. Pratt Whitney has requested
another portion of the $1.8 million approved under its performance agreement, and Vitro has been
paid $900,000, the first phase of its $3 million payment. Once the super coater is completed, the
remainder of the money will be released.
The Board's unreserved fund balance is projected to end at $4.77 million. It was budgeted
at $4.25 million, but due to the additional revenue and a few projects coming in under budget, that
balance is greater than anticipated.
5. Discussion and possible approval of operating budget for FY 2018-19
i. d. e. a. WF
Jackie Hoegger spoke on behalf of Dr. Scott Manley, who was ill and unable to attend the
meeting. He is requesting an increase of $20,000 for the program. The funds are used as prize
money; $12,000 for a new business; $12,000 in business expansion; and $6,000 as judges' choice.
Her own research showed that other Texas cities grant much higher amounts in similar programs.
i.d.e.aWF is going into its I 01h year, and the prize money needs to be increased in order for the
program to remain viable and attract a high quality of entries.
2
Mr. Dockery provided an overview of the proposed operating budget for 2018-19:
Revenues:
Sales tax revenues are projected at $3,984,690. Ile will continue to conservatively budget
no growth into next year's budget. Interest earnings are budgeted at $180,000.
Total revenues: $4,164,690
Annual programs:
Ad valorem tax on two buildings - $80,000, depending upon valuation
Professional fees - $30,000 for experts, environmental
Chamber - $610,144 flat amount, or slightly higher from prior year
Economic development marketing - $370,000
SMAC - $151,175
DWFD - $150,000 ($50,000 increase. There is still the question about the additional
economic development position, but this amount does not include funding for same)
i.d.e.a.WF - $50,000 ($20,000 increase)
Business park maintenance - $105,696
Water, sewer, sanitation, gas and electric — $7,000
City administrative expenses - $50,000
Regional airport debt - $140,000
Choose Wichita Falls - $5,000
Total expenses: $1.960 million
Revenues less Expenses: $2.2 million left for future projects
$6.977 million in unreserved fund balance if this budget is approved
6. Discussion and possible approval of Binswanger contract renewal for Stanley
building marketing
Mr. Pearson reminded the ' Board that it entered into a contract one year ago with
Binswanger to act as broker for the Stanley and Atco buildings. The Board also approved funding
for marketing. Binswanger created a marketing brochure for both, and a video for the Stanley
building. They now wish to extend the brokerage agreement. The Stanley building is the only one
on today's agenda; due to Atco's environmental issues, it may be some time before that building
is ready for marketing.
7. Executive Session
Mr. Lane adjourned the meeting into executive session at 4:01 p.m. pursuant to Texas
Government Code §551.087. He announced the meeting back into regular session at 5:12 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. Motions
Railroad Crossing - Mr. Gustafson moved to authorize a grant of up to $50,000 for
materials for the railroad crossing upgrade at Arconic for the creation and/or retention of primary
jobs. Seconded by Mr. Leiker, the motion carried 4-0.
Binswanger Brokerage Agreement -Mr. Leiker moved to approve the asking price of $3.5
million on the Stanley building, and to authorize staff to work with Binswanger to market the
building. Seconded by Mr. Lilley, the motion carried 4-0.
Motions regarding the budget.
SMAC — Mr. Leiker moved to approve the funding of SMAC at $151,175 as requested..
Seconded by Mr. Lillev. the motion carried 4-0.
i.d.e.a. WF— Mr. Leiker moved to approve the funding, of i.d.e.a.WF at $30,000. Seconded
by Mr. Lilley, the motion carried 4-0.
Downtown WF Development — Mr. Leiker moved to approve the funding, of DWFD at
$100,000. Seconded by Mr. Lilley, the motion carried 4-0.
Chamber of Commerce and Industry — Mr. Leiker moved to approve the funding of the
CCI at $985,144 as requested. Seconded by Mr. Lilley, the motion carried 4-0.
Operating Budget — Mr. Leiker moved to approve the operating, budget for FY 2018-19
with the previously stated amendments. Seconded by Mr. Lilley, the motion carried 4-0.
9. Adjourn
Mr. Gustafson moved to adjourn the meeting at 5:18 p.m.
Leo Lane, President