4A Wichita Falls Economic Development Minutes - 11/07/2019MINUTES OFTHE
WicHiTA TALI. S ECONOMIc DEVELOPMENT CORPGRATION
November 7, 2019
PRESENT:
Leo Lane, President
David Toogood, Vice -President
Darron Leiker
Bobby Whiteley, Councilor at Large
Jeff Browning, Councilor District 3
Paul Menzies, Assistant City Manager
Blake Jurecek, Assistant City Manager
R. Finley Hegglund, Jr., City Attorney
Linda Merrill, Recording Secretary
Ken I lines, Attorney
Henry Florsheirn, CEO
Travis Haggard, 'M.P., Business Retention & Expansion
ABSENT:
Reno Gustafson, Secretary -Treasurer
Phyllis Cowling
1. Call to Order
Leo Lane called the meeting to order at 4:00 pni,
2. Approval of Minutes (October 17, 2019)
§ WITDC Members
§ City Council
§ City Staff
§ CCI
§ WFFDC Members
Henry Florsheim requested that a sentence attributed to him be expanded to read, "All
NAICS codes allowed under 4A legislation will be allowed to apply." Darron Leiker moved for
approval,_subject to such change. Seconded b David Too good the motion carried.
3. Discussion and possible action related to sale of former Stanley building to Rise
Properties, LLC.
'Travis Haggard said he has received a signed copy of the purchase and sale agreement from
Scott Lampe. Attorney Ken Hines noted the document, after some back. -and -forth, is a pretty
straightforward deal. Mr. Lane said this will be discussed in executive session.
4. Discussion and possible action related to incentive proposal for Cleanaire, LLC, dba
Pamlico Air
Mr. Leiker asked that someone explain the protections afforded by a 24-month irrevocable
letter of credit, and whether it offered sufficient security, Mr. I -lines said he has had Ifinited
experience with economic development letters, but observed they are typically an Upfront loan
secured by equipment or property. In the event of default. the WFEDC would then have to go
through the process of foreclosure or repossession.
An irrevocable letter of credit is much better collateral. It would only require that the
WFED�C as the lender provide a certificate that says Pamlico defaulted under the terms of the
agreement, and the WFEDC Would be entitled to draw the money. Tile bank would have no other
option but to comply. Its agreement is with Pamlico, and it becomes a loan transaction between
those two parties.
Mr. Leiker asked if the WFEDC would receive notification if something happened between
the issuing, bank and Pamlico. Mr. Hines, said the letter of credit would be issued to the WF'EDC:
as the beneficiary. Pamlico could go broke, but the credit agreement would now be with the bank.
If Pamlico defaults, then WFEDC draws on the bank, and the bank in turn has to deal with Pamlico.
Kinfey Hegglund added that the letter of credit (1) must be irrevocable, and (2) spell out
the terms for the WFEDC, to recoup the money. They will insure that language is included that
provides for payment in the event of default.
5. Executive Session
Mr. Lane adJourned the meeting into executive session at 4:07 p.m. pursuant to Texas
Government Code §§551.072 and 551.087. He announced the meeting back into regular session
at 4:13 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.
6. Motions
Sale of former Stanley building to Rise Properties, LLB`
Mr. Too :good moved that the president of the WFEDC be authorized to enter into an
agreement on behalf of the WFEDC for the sale of the forrner Stanley building to Rise Properties,
LLC, in accordance with the purchase and sale agreement -presented. Seconded by Mr. Leiker, the
motion carried 3-0.
Incentive proposalfor Cleanaire, LLC, (1ba Pamlico Air
Mr. Leiker moved for approval of the incentive .,prol2osal for Cleanaire, LLC, dba Pamlico
Air, asdescribed in the performance agreement. Seconded by David Toogood, the motion carried
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7., Adjourn
The meeting aqjoumed at 4:15 p.m.
Lco Lane, President