4A Wichita Falls Economic Development Minutes - 12/21/2020 MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
December 21, 2020
Present:
David Toogood, Vice-President § Members
Phyllis Cowling, Secretary-Treasurer §
Brent Hillery §
Darron Leiker §
Paul Menzies, Assistant City Manager § City Administration
R. Kinley Hegglund, Jr., City Attorney §
Linda Merrill, Recording Secretary §
Henry Florsheim, President and CEO § CCI
David Leezer, V.P, Business Attraction §
Absent:
Leo Lane, President § Member'
1. Call to Order
David Toogood called the meeting to order at 3:00 p.m.
2. Discussion and possible action related to Panda Biotech performance agreement
Henry Florsheim reminded the Board that at its December 8 meeting, it approved $2
million to Panda Biotech tied to certain benchmarks to be met by the company. Unfortunately,
Panda Biotech said they need funding now, which had never been explicitly expressed. The
company has requested a $1 million loan against approximately $2 million of equipment. Once
the bonds are sold, they would repay this loan.
The Board could then restructure the incentive agreement. Despite approval by the Board
and ratification by the City Council,the original agreement was never executed. Kinley Hegglund
noted the company still wants financial assistance for the rail spur repair and a cash for jobs
agreement. Mr. Florsheim added that this is an additional $1 million loan on top of the incentive
request, but it would have to be repaid prior to Panda Biotech receiving any incentive benefits —
and those benefits would be contingent upon the benchmarks noted at the last Board meeting.
Brent Hillery asked the start and end dates of this bridge loan, and what penalties the
company would face if the loan is not timely repaid. Mr. Florsheim said the loan is needed as soon
as possible. Ms. Cowling suggested the loan have a certain end date, so that it would be a no-
interest loan through a definite period of time. Mr. Leiker agreed, stating it would be simplest to
Mr. Lane has a conflict of interest in discussing any potential agreements involving Panda Biotech. As that was
the only item on today's agenda,Mr. Lane recused himself from the meeting.
identify the loan as being payable within 30 days after Panda Biotech receives bond proceeds to
no later than six months from the date of issuance. He asked what would happen if the June date
comes and goes with no bond proceeds. City Attorney Kinley Hegglund said there would be a
myriad of options available to the Board.
Mr. Toogood noted he had spoken with the Texas Bond Review Board in Austin. They
confirmed to him that Panda Biotech had applied for this year's lottery system. The company is
high enough on the list to be expected to receive the full $100 million allocation. Once the state
sends the allocation, it is up to the company to sell the bonds.
3. Consent Agenda—approval of minutes of December 8, 2020
Ms. Cowling moved for approval. Seconded by Mr. Leiker, the motion carried 4-0.
4. Executive Session
Mr. Toogood adjourned the meeting into executive session at 3:14 p.m.pursuant to Texas
Government Code §§551.072 and 551.087. He announced the meeting back into regular session
at 3:48 p.m.The subjects posted in the Notice of Meeting were deliberated,and no votes or further
action was taken on the items in executive session.
5. Motion(s)
Panda Biotech
Mr. Leiker moved to approve the following:
I. An amended performance agreement with Panda Biotech to include a $1 million
forgivable loan over a five-year period; upon satisfaction of legal collateral totaling the
amount shown in the Laroche invoice presented at the Board's December 8 meeting.
2. The second $1 million payment shall be folded into the cash for jobs portion of the
incentive agreement
3. Such.funding is contingent upon the execution by Panda Biotech, LLC of a PILOT
agreement.
4. The incentives for relocation and rail spur repair remain as originally contemplated.
Seconded by Ms. Cowling. the motion carried 4-0.
b. Adjourn
The meeting adjourned at 3:50 p.m.
Leo Lane, President
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