Loading...
4A Wichita Falls Economic Development Minutes - 12/19/2019MINurES OF THE WICHii,,4, FALLS EC ONOmic DEVELOPMENT CORPORATION December 19,2019 PRIESENT: Leo, Lane, President § WF'EDC Members DavidToogood, Vice -President § Reno Gustafson, Secretary -Treasurer § Phyllis Cowling § Darron Leiker § Stephen Santellana, Mayor § City Council Bobby Whiteley, City Councilor -at -Large § Paul Menzies, Assistant City Manager § City, Staff R. Kinley Ilegglund, Jr., City Attomey § Jessica Williams, Director of Finance § 'Ferry Floyd, Director of Development Services § Linda Merrill, Recording Secretary § Henry Florsheim, CEO § CCI David Leezer, Vice President of Business Attraction § Travis Haggard, V.P., Business Retention &, Expansion § Scott Poenitzsch, Chair § Ripley Tate, Past -Chair § Jana Schmader, Executive Director § DWFD A.J. Du Plooy § Du Plooy'Erucking Matthew Wood § 1. Call to Order Leo Lane called the meeting to order at 3:00 p.m. He noted the paperwork had been signed that day for the sale ofthe Stanley building. A lot of hard work had gone into getting this property sold, and he specifically credited former 4A president Dick Bundy and the Chamber team. 2,. Financial Report Paul Menzies said the sales tax report for December (reflective of' October's receipts) shows a 4.2% increase over the same period last year. The SAFB Front Gate Prqjiect is, in the process of completion, There are still a few items to work out with Terra Construction. Staff will present a full report at the Board's next meeting. 3. Approval of Minutes (November 21, 2019) Phyllis Cowling, moved to approve. Seconded b I eno �Gustafqon the motion carried 5�4 4. Discussion and possible action related to incentive proposal forJoint Pilot Academy Grob, LLB; expansion Travis Haggard said he has been in touch with. Martin Bohn since the Board's last meeting, still looking for collateral for the $500,000 loan. Mr, Bohn's partners in the building at Kickapoo Airport have agreed to allow a lien on the building so that the needed collateral might be secured. Finley flegglund said a title search will be necessary to ensure no one else claims an interest in it. Mr. Haggard relayed this to Mr, Bohn, who is traveling and has yet to request the title search. 5. Discussion and possible action related to incentive proposal for Du Plooy Trucking relocation and expansion Mr. Haggard told the Board the co -owners of'Du Plooy Trucking have plans to move their trucking operation to Wichita Falls. He noted that the higher -than -anticipated costs for trailers will increase their capital expenditure to $7.45 million. The total possible incentives, including relocation incentives, is $1.334 million. He introduced A.J. Du Plooy and Matthew Wood. Mr. Wood said that Mr. Du Plooy started the company in 2016, mainly hauling glass for Vitro. Mr. Du Plooy is originally from South Africa,, and has driven trucks in 16 countries. He knows multiple ways of securing loads,, and has experience with various trailers. The company currently has 30 full time and two part-time employees. They hope to hire 100 employees in 2020. They now have 70 trailers, They haul dirt, sand, or feed for animals or grain for human consumption. They also work for dairies, slaughterhouses, and the Department of Defense. Du Plooy Trucking is a 24/7 operation. The company makes diverse hauls with different types of trailers. If a driver gets weary of hauling a certain type of freight, they can change their route or the type of hauled material. They are currently located in Byers, Texas, with dispatch operations in Oklahoma,. They intend to move their entire operations to Wichita Falls, and have rented a facility at 6895 Jacks,boro I lighway. They made an offer to purchase land on Fisher Road, but the seller changed his mind. Their goal is to build a facility after the first of the year. A long-term goal is to build a CDL driving school. The closest such school to this area is in Weatherford. They have also started a recruitment process in California, which has received a lot of interest. Under that state's laws, truck driver's can no longer be independent contractors. Ms. Cowling asked if those drivers, would remain independent contractors, or if they would become Du Plooy Trucking employees. Mr, Wood said they would become Du Plooy Trucking employees. The drivers' net weekly income is $1,400 plus benefits, for an annual net pay of $72,800. The drivers are eligible for bonuses, and will receive dental and vision coverage, as well as health and wellness beriefits. They will also be on the road only Monday through Friday, and home on the weekends. The company will require that all drivers reside within 30 minutes of Wichita Falls. 6. Discussion and possible action related to economic development contract with the Wichita Falls Chamber of Commerce Henry Florsheirn said the Chamber's proposal for 2020 is, intended to run for a calendar year. Ile reintroduced the Chamber*s team, identifying each member's respective duties. This was also his opportunity to introduce David tcezer, the Chamber's new Vice President of Business Attraction. Mr. Florsheim noted that the budget calls for the WFEDC funding I O0% of the positions of VP of Business Attraction; VP of Business Retention & Expansion; Director, Wichita Falls 'ralent Partnership; Director, Business Intelligence/]Military Liaison; and the new position of Director, Downtown Economic Development. The Director of Marketing position would be funded at 75%; while the Office Manager and President/CEO positions would be funded at 50%. As the Board is aware, only 10% of its revenue can go toward promotional activities.'The Chamber budget is comfortable under that threshold at $175,000. 'The staff is either halfway through or has completed the assigned projects through the Opportunity Strategies' dashboard. "They are deeply utilized in all aspects of the community -wide strategy, and a grateful to be involved, Reno Gustafson said it was a good report, and very transparent. Ms. Cowling asked what goals are related to the budget. Mr. Florsheirn said they have created a staffing structure and perform activities based around the Market Street and Opportunity Strategies' recommendations. Other than that, there has never been a specific conversation about goals. Ms. Cowling was, looking for a type of measurement to know whether the efforts put forth were successful, The number of jobs created would be misleading, as that is a result of many factors. It is important to figure out what needs to be done, and set goals based upon those decisions. Mayor Santellana noted that every item voted on by the Council is tied to a specific goal or objective. 7. Executive Session Mr. Lane adjourned the meeting into executive session at 4:05 pm. pursuant to Texas Government Code §§551.072 and 551.087. Ile announced the meeting back into regular session at 5:35 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. 8. Motions Economic Development Contract with the Chamber of Commerce Darron Leiker moved that the WFEQC approve the economic deve,lopment..contract with the Wichita Falls Chamber of Commerce as presented. Seconded by David Too good ,_ the motion carried 5-0. Discussion and possible action related to incentive proposal for Du Plooy Trucking relocation and expansion Ms. Cowling moved that the WFDC; offer to Du Plogy Trucking a cash -for -jobs incentive package for the positions and hourly wages as delineated in the furnished table in the following, two categories: I ) $13,500 incentive for relocated employees employed for 12 months who live in Wichita Copply 2) $7,000 incentive.per employee who lives in Wichita County for 12 months, but who is not employed by ajocal employer (meaning one based in Wichita, County) as a CDL driver. Said ern loyee must work with Qu Plogy Trucking for a period of 12 months. Under both categories, Qu Plogy Trucking must maintain a primary presence in Wichita Falls. Seconded by Darron Leiker, the motion carried 5-0. 9. Adjourn `I'he meeting adjourned at 5:42 pm. o Lane, President