4A Wichita Falls Economic Development Minutes - 05/21/2020MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
May 21, 2020
PRESENT:
Leo Lane, President § WFEDC Members
David Toogood, Vice -President §
Reno Gustafson, Secretary -Treasurer §
Phyllis Cowling §
Darron Leiker §
Stephen Santellana § Mayor
Paul Menzies, Assistant City Manager
§ City Staff
R. Kinley Hegglund, Jr., City Attorney
§
Russell Schreiber, Director of Public Works
§
Pat Hoffman, Property Administrator
§
Linda Merrill, Recording Secretary
§
Henry Florsheim, CEO
§ CCI
David Leezer, Vice President of Business Attraction
§
Travis Haggard, V.P., Business Retention & Expansion
§
Jana Schmader, Executive Director
1. Call to Order
Leo Lane called the meeting to order at 3:00 p.m.
2. Financial Report
§ Downtown WF Development
Paul Menzies discussed sales tax history. There is a slight cumulative increase for the year;
around Christmas, there was an 8% increase, but since then much has changed. The May payment,
reflective of March's receipts, shows an 8% decrease from the same month last year. This is
reflective of only the last 10-14 days of March, when the shutdown began. A truer understanding
of the economic picture will come when the April report is here.
Funding for Idea WF was approved by the City Council in March, which is reflected in the
financial report.
Mr. Lane asked what staff anticipates for the upcoming months. Darron Leiker said the
forecast is about a 15% drop in annual cumulative sales tax between now and the end of the year,
which is a pretty steep drop. A 40% drop is anticipated in June, 30% in July, and a 20-25% drop
through September, which is a 15% average drop from last fiscal year.
Phyllis Cowling asked for clarification that the FY 2020 revised budget reflects the
anticipated 1 drop, as well as the 8% drop seen from March. Mr. Leiker replied that the $3.568
million is reflective of that drop. Staff anticipates a $500,000 to $600,000 decrease from the
Board's original budget to where it will end for the year.
3. Approval of Minutes (February 20, 2020)
Subject to correction of a typographical error noted by David Toogood, Ms. Cowling
moved to approve. Seconded by Reno Gustafson, the motion carried 5-0.
4. Discussion and possible action related to small business relief grants
Henry Florsheim said the biggest risk to the economy under the COVID-19 pandemic is
the loss of small business. Quite a few Texas communities have used economic development (or
other) funds via a loan or grant program to help small businesses. The only way legally to fund a
grant is under the marketing cap.
The proposal is that the Board approve funding, and the Chamber will develop metrics to
award grants of "x" amount. A marketing campaign would be developed, including those assisted
businesses to promote Wichita Falls as a place to do business.
The Chamber could manage this program, but would request participation from City staff
or Board members in the review process and marketing campaign, and in how to determine
eligibility.
Ms. Cowling asked the requested amount of funding. Mr. Florsheim said these programs
can range from $150,000 to millions of dollars. It depends upon the Board's appetite for this
program. The Chamber is not going to fill the vacant research position, or hire someone for the
downtown economic development position at present. Those vacancies will free up $200,000
between salaries and activities associated with those positions, so the initial thought was between
$150,0004200,000. This is, of course, open to discussion.
5. Discussion and possible action regarding water easement request for Business Park
Director of Public Works Russell Schreiber noted that the Red River Authority has long
been a wholesale customer, taking water from Lake Arrowhead and treating it at a plant behind
the dam. That treatment plant is now outdated and it is cost prohibitive to update it. The Authority
now wishes to buy treated water. That requires them to connect to the City's system. In order for
this to occur. the City is requesting an easement along the west side of the Business Park, as part
of the pipe would cut across that property. There would be advantages to the Business Park to have
this line, as both sides of the Park would have water service, and there would be fire protection on
the west side. It would also fulfill a small portion of the City's water master plan. The request is
for a 20' permanent utilit} casement and a 30' construction easement.
The Red River Authority is paying its portion of this project. It requires only a 10" line,
but the City desires to upsize to a 12" line to make it part of the system. The cost for this increase
is approximately $29,000,
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6. Discussion and possible action related to Braun Intertec's work at former ATCO
building
Travis Haggard noted that the Board approved a motion at its February 20, 2020 meeting
to move forward to complete this project. He said the unknown was Clayton Homes' comfort level,
since there had been discrepancies on wells and tests. A conference call was held on May 5.
Environmental attorney Chris Williams said he would get back to him about Clayton Homes'
thinking. That call came May 18. Mr. Williams said Clayton Homes is still on track. although
somewhat concerned with the market. It wants to include the TOTAL property in the MSD.
The TOTAL representative said it would like to be included in the MSD, but was not
interested in paying for it. Braun Intertec offered a $25,000 discount. Mr. Haggard said this brought
the contract down to $60,000. Braun Intertec would need written permission to exceed this amount.
Clayton Homes wants the MSD completed on both properties before closing.
This puts the work to be done pretty close to the August 12 due diligence deadline, as
Braun Intertec stated it will take them approximately three months to complete the work.
Mr. Lane asked if Mr. Haggard if he was still waiting on TCEQ. Mr. Haggard replied that
TCEQ has the most recent report from Braun Intertec. Due to the COVID-19 pandemic, TCEQ
staff is working remotely. He did request an expedited review, which is not likely to be granted.
Ms. Cowling said that Braun Intertec has stated it will take them three months to complete
the work, which would put the project over the August 12 deadline. The speed at which they have
worked on this project does not encourage her they will get it done by August 12. Ms. Cowling
believes it is possible the 4A Board will be asked to put more money toward this project, all while
Clayton Homes has the ability to walk away. Mr. Haggard agreed.
Ms. Cowling said the project was approved in February. There is no document signed to
allow Braun Intertec to move forward. Other than COVID-19, it appears the Chamber lost some
time on this project, as well. Mr. HaL�-,ard said there was the question as to whether Clayton Homes
was going to move forward. If the buyer was lost, there would be no obligation to pay to include
the additional tract of land in the MSD. Despite several emails and conversations, Clayton Homes'
position was not known until last week. Ms. Cowling disagreed. Referring to the February 20,
2020 minutes, it was asked if an extension would be necessary, and the answer was there was an
automatic extension built into the contract. Mr. Haggard said it is not automatic, but it can be
extended from the buyer's standpoint.
Mr. Haggard recently walked the property. He found nothing major; there were a few leaks
from the roof. Mr. Lane asked if Braun Intertec was to do more sampling. Mr. Haggard said if the
report gets approved by TCEQ, no more sampling would be required. If not, and the Board moves
forward with this addendum, there is a test scheduled in June.
7. Executive Session
Mr. Lane adjourned the meeting into executive session at 3:29 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.
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8. Motions
Small business relief grants
No action was taken.
Water Easement for Business Park
Darron Leiker moved to authorize the construction of the permanent utility easement and
construction easement for the water line to run through the west side of the Business Park.
Seconded by Phyllis Cowling. the motion carried 5-0.
Braun Intertec's work at former ATCO building
David Toot;ood moved to retract the February 20, 2020 approval of the Braun Intertec
contract and adopt the contract presented today to complete the work including the work to be
done on the additional 9-acre tract to the south. at a cost not to exceed $60,000. Seconded by Reno
Gustafson. the motion carried 5-0.
9. Adjourn
The meeting adjourned at 4:3 8 p.m.
Leo Lane, President