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4A Wichita Falls Economic Development Minutes - 03/21/2019MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION March 21, 2019 PRESENT: Leo Lane, President § WFEDC Members Reno Gustafson, Secretary -Treasurer § Darron Leiker § Dave Lilley § Bobby Whiteley, Councilor at Large § Mayor & Council R. Kinley Hegglund, Jr., City Attorney § Administration Jim Dockery, Deputy City Manager § Paul Menzies, Assistant City Manager § Linda Merrill, Recording Secretary § Henry Florsheim, CEO § CCI Kevin Pearson, V.P., Economic Development § Scott Poenitzsch, Chairman § Katie Britt, Marketing Director § Adrine Wike, Director of Research § Hillary Robinson, Executive Assistant § Martin Bohn § Cobra Kai/JPAG Uwe Zeizinger, Chief Flight Instructor § Jaron Spor § KFDX-TV Peyton King § ABSENT: David Toogood, Vice -President § WFEDC member 1. Call to Order Leo Lane called the meeting to order at 3:30 p.m. 2. Financial Report Jim Dockery noted the Board has $3.62 million available for expenditures. Four months of sales tax revenues have been received, and are running 4.81 % ahead of this time last year. Sales tax revenues from the last 12 months compared to the prior year reveal that revenues have increased 6.68%. Retail, utilities, and the wholesale trades are the primary drivers of that increase. 3. Approval of Minutes (3/1/19) Mr. Dockery requested the word "budgeted" preface the phrase "unreserved fund balance" in his financial report. With that change, Reno Gustafson moved for approval. Seconded by Dave Lilley, the motion carried 4-0. 4. Discussion and possible action concerning Director's and Officer's Insurance Kinley Hegglund said that the Texas Supreme Court has issued an opinion that 4A/4B Economic Development Corporations are not entitled to governmental immunity. Staff wanted the Board to be aware of this development should they choose to purchase insurance for coverage in their official capacity in the event of potential litigation that resulted in damages. The 4B Sales Tax Corporation has budgeted $5,000 for $5 million of personal liability coverage. Mr. Gustafson asked the deductible. Mr. Dockery said there is none. 5. Discussion and possible action concerning property insurance Mr. Dockery said the insurance carried on property owned by the WFEDC, including the Business Park, is coverage for the buildings and their contents. There is no coverage for personal injuries anyone might sustain while on the properties. Mr. Hegglund added that prior to the Supreme Court opinion, there would have been a $250,000 cap on damages through the Tort Claims Act. However, since the WFEDC does not enjoy that immunity, that cap does not exist. Mr. Dockery said he will obtain pricing, and it will be complicated for the Business Park. He asked whether the coverage should be up to $10 million. Mr. Hegglund said $5 million should cover most situations. Mr. Lane advised staff to get some options. 6. Discussion and possible approval of incentives for Joint Pilot Academy Grob, LLC expansion Travis Haggard noted there are a couple of changes to the jobs table since the last meeting, as noted in today's packet. Martin Bohn has some concerns about creating 42 jobs in the first year of operation. Mr. Gustafson asked the status of the contract with the Air Force. Mr. Bohn said he meets with General Doherty and staff on April 18. He hopes it will be figured out then. The Air Force is still indecisive. It may start out as an experiment where he is asked to train anywhere from 3-15 pilots. Mr. Lane asked how the project would be structured around a small group. Mr. Bohn said the Air Force would pay the costs of operation, but not for the infrastructure. If they like the results, then they will enter into a contract. Mr. Lane asked how the deal with the WFEDC would work. Mr. Bohn said they could still work out the details, but he would like to have some measure of funding, as he would be financially constrained if he had to come up with the cash during the first six months of operation. If they only take three to five students, they may not need the entire $1 million initially, but perhaps a six figure number until a contract is executed. Mr. Dockery said that once JPAG and the Air Force have agreed to a contract, a 4A meeting can be scheduled. In the meantime, the letter that Mr. Haggard has prepared shows the Air Force the incentives the WFEDC is offering. Mr. Bohn said that will help tremendously. 7. Discussion and possible approval of Braun Intertec proposal for final environmental work at former ATCO building Kevin Pearson noted that Braun Intertec is requesting $139,660 for its third and final contract for environmental work at the former ATCO building. Mr. Pearson added this could be discussed at length in executive session. 2 8. Executive Session Mr. Lane adjourned the meeting into executive session at 3:54 p.m. pursuant to Texas Government Code §§551.072 and 551.087. He announced the meeting back into regular session at 4:36 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further action were taken on these items in executive session. 9. Motions Director's and Officer's Insurance Mr. Leiker moved that staff be authorized to secure Director's and Officer's Insurance in an amount not to exceed $5,000 in annual premiums. Seconded by Mr. Gustafson, the motion carried 4-0. Braun Intertec proposal for environmental work at ATCO Mr. Leiker moved to approve the expenditure of $139,660 to complete the third and final phase of environmental work at the former ATCO building. Seconded by Mr. Gustafson, the motion carried 4-0. 10. Adjourn Dave Lilley moved to adjourn the meeting. The meeting adjourned at 4:39 p.m. Leo Lane, President