4A Wichita Falls Economic Development Minutes - 04/18/2019MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
April 18, 2019
PRESENT:
Leo Lane, President § WFEDC Members
Darron Leiker §
Dave Lilley §
Stephen Santellana, Mayor
R. Kinley Hegglund, Jr., City Attorney
Jim Dockery, Deputy City Manager
Paul Menzies, Assistant City Manager
Karen Montgomery -Gagne, Planning Administrator
Linda Merrill, Recording Secretary
Kevin Pearson, V.P., Economic Development
Alysia Cook
ABSENT:
Reno Gustafson, Secretary -Treasurer
David Toogood, Vice -President
1. Call to Order
Leo Lane called the meeting to order at 3:30 p.m.
2. Financial Report
§ Mayor & Council
§ Administration
III
§ Opportunity Strategies
§ WFEDC members
Jim Dockery noted $5.664 million is budgeted for revenues, which includes the $1.5
million DEAAG reimbursement. Expenditures are set at $2.650 million thus far, leaving the Board
in a $3 million positive situation. The unreserved fund balance is $4.575 million as budgeted.
The Board has received $1.645 million in sales tax revenues, representing a 5.41 % increase
over last year's collections at this same five -month mark. He budgets a flat revenue amount, so if
it continues at this pace, this fund would exceed the budgeted amount by 5%.
3. Approval of Minutes (3/21/19)
Mr. Lilley moved for approval. Seconded by Darron Leiker, the motion carried 3-0.
4. Discussion and possible amendment to employee recruitment contract with Sharp
Iron Group, LLC
Travis Haggard explained that Sharp Iron was requesting to substitute one welder position
under their current agreement for a manager position at their Reilly Road facility. This is a six -
figure income position. While the $3,000 would not cover a lot of costs, it would help in the
recruitment.
Kinley Hegglund said this would be a budget neutral amendment. If the Board chose to
make this amendment, it would not require City Council approval.
Darron Leiker expressed reservations. The granting of funds to recruit a high -salaried
employee is a deviation from recruiting a hard -to -hire welder. He feared it could send a message
to other companies that the WFEDC assists in paying moving costs. Mr. Dockery agreed; the
original intent of this agreement was to recruit those needed employees who are hard to hire, rather
than to offer a hiring bonus. Mr. Lane countered that in this economy, managers are hard to hire.
Mr. Lilley concurred with Mr. Leiker, adding that the 4BSTC has been good partners with
Sharp Iron for the past 7-8 years. Mr. Leiker asked if this was a new position, or a retained one.
Mr. Haggard said it is a retained position. Mr. Leiker feels this amendment would be getting too
far away from the original goal.
Henry Florsheim said that local manufacturers have a hard time recruiting managers and
engineers. This particular program was for welders, but managers are either stolen from other local
plants or they are brought in from out of town. Mr. Leiker said the City is paying moving costs for
its new Finance Director. It is important to think about what this Board does and to be careful.
Mayor Santellana suggested that Sharp Iron could come back to the Board with this as a
new request, rather than attempting to substitute this position under the current agreement.
Mr. Leiker said the $3,000 was meant for welders just out of school with not a lot of
resources. That money would mean a lot more to them than to a six -figure employee. Mr. Haggard
said on the other hand, it may be helpful to look at the impact that manager's salary would make
on the community. Mr. Leiker asked if this incentive was necessary to get them to make the move.
5. Executive Session
Mr. Lane adjourned the meeting into executive session at 3:44 p.m. pursuant to Texas
Government Code §§551.072 and 551.087. He announced the meeting back into regular session
at 4:32 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
Amendment to Employee Recruitment Contract with Sharp Iron Group, LLC
No action was taken on this item.
10. Adjourn
Dave Lilley moved to adjourn the meeting. The meeting adjourned at 4:33 p.m.
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Leo Lane, President