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4A Wichita Falls Economic Development Minutes - 01/21/2021 MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION January 21,2021 Present: Leo Lane, President § David Toogood, Vice-President § Members Phyllis Cowling, Secretary-Treasurer § Brent Hillery § Darron Leiker § Bobby Whiteley, Councilor at Large § Mayor and Council 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 § Travis Haggard, V.P., BRE § Shay Jones, Director, Business Intelligence § Taylor Davis, Director, Talent Partnership § 1. Call to Order Leo Lane called the meeting to order at 2:30 p.m. 2. Strategic Discussion a. Talent Partnership update Taylor Davis spoke on five initiatives that the Talent Partnership has been working on over the past two years: • The Circuit — emerging leaders focus on community involvement, professional development and mentorship. Current members total 53, with 62 mentors. • Military Matters—designed to build stronger connections between SAFB and the community. o Hidden Gems —virtual programming providing a virtual tour of Wichita Falls in lieu of in-person community spouse tours (due to COVID) o Military Spouse Professional Network — networking forum to address the challenges faced by military spouses. Eight military spouses were employed by the community through this initiative in the 4th quarter of 2020. 1 o Military Spouse Economic Empowerment Zone— employer equivalent of the Military Spouse Professional Network. • Intern Wichita Falls —creating ads for an internship program. Three interns were placed for employment in the 4th quarter of 2020. • Relocation Guide—one-stop guide for individuals relocating to Wichita Falls. • Diversity, Equity and Inclusion— to foster a conversation around the importance of each in the workplace and in the community. Phyllis Cowling asked what might be an impediment to the growth of the Talent Partnership (outside of funding). Ms. Davis replied that the community needs to be made more aware of what is available. They are being as proactive as possible in providing this information. b. Discussion about quarterly report Henry Florsheim said the Board's new bylaws require that it issue quarterly reports summarizing its activities. He and David Toogood worked on this, and present a sample today to receive guidance from the rest of the Board. The thought was to provide summaries of active projects, of prospects, and of work accomplished by the Board or its allies. Mr. Toogood said it is partly a record of activities,but also a reminder of ongoing projects that might be forgotten. They did not want this to be a burdensome project for the staff, and they wanted it easy to read. Darron Leiker said he liked the short and simple format, and that it would not be hard for the staff to prepare. Mr. Florsheim said the Chamber will assemble the documents and get information from the Board's allies,as applicable.His intent was to reach out to all entities for input, but make it clear that input is not required unless there is something to report. Ms. Cowling said she would like to see how much money was paid out on each project. Brent Hillery said that it would be helpful if there was an indication of compliant or non-compliant with the terms of the performance agreement for each project. Ms. Cowling agreed, stating there should be some notation as to whether there are any concerns. Mr. Toogood said this is due on the 15th day of the month;he questioned whether it should be emailed to the Board or included as part of a meeting. Mr. Florsheim opined that it should be part of a meeting. Mr. Leiker agreed; stating he would like it included in the consent agenda. 3. Discussion and possible action regarding changes to the employee relocation incentive Mr. Florsheim said the Board had created a relocation incentive to offset the cost of company recruitment efforts. The Board had authorized this incentive for any company that met one of the Type A-eligible NAICS codes. The incentive would be paid on a sliding scale based on position,with a minimum salary of$31,200. There are recommended changes to language in this incentive. City Attorney Kinley Hegglund had indicated some concern regarding the acceptance of affidavits.Mr. Hegglund noted that he and the Finance department staff are concerned about the sufficiency of this documentation as back-up for such payments under an audit review. To rely simply on an affidavit with no 2 definition of residency creates a problem. In addition, the term residency is not defined, which leaves it open for interpretation. There was discussion regarding one company's request for the incentive in particular,and what constitutes residency in order to qualify. Mr. Hegglund said he would need time to make an analysis of the situation. The Board directed staff to evaluate the issue. It decided to table any changes made to the language of the incentive program, in order to be provided more refinements based upon today's discussion, including the crafting of a definition for residency. 4. Discussion and possible action related to Chantex performance agreement 5. Discussion and possible action related to Dental Planet performance agreement Items 4 and 5 were discussed together. Chantex, as with many businesses, was adversely affected by the COVID 19 pandemic. The company asked that the year 2020 simply be forgotten, and that its performance agreement be extended for one more year. Dental Planet is under new ownership. They asked for forgiveness of that year,rather than for an extension. Staff feels no justification to forgiven the year, but recommends extending both performance agreements for one year. 6. Discussion and possible action related to Pamlico Air performance agreement Mr. Florsheim reminded the Board that Pamlico Air had provided a $1.5 million irrevocable letter of credit as collateral. Pamlico to date has spent$7 million not counting payroll. They have 159 full-time employees out of the 200 employees projected by October 1. They also have an additional 115 temp-to-hires, and intend to hire all of those who make the cut. The company has requested a release of this letter of credit. It needs more cash to buy equipment to expand here and in other markets. Staff approves of this request. They have committed to Wichita Falls, and another $1.5 million in equipment is on its way here. They are on schedule to exceed employee projections, and have signed contracts with big-name retailers. The risk has been mitigated due to the investment the company has already made. 7. Consider and take action on a mid-year FY 2021 budget amendment Paul Menzies presented to the Board a modernized financial report. He noted that the expenses at ATCO were left out of the original budget,but are included now at a cost of$60,000. DWFD's approved amount is corrected to $110,000. Braun Intertec is being closed out, as all of the $345,000 allocated has been spent. The design, engineering, and geotechnical work at the Business Park, budgeted at $1.5 million, came in at just over $1 million. This cost savings of $450,000 is going back into the unreserved fund balance. The Chamber employee recruitment program is budgeted at $50,000, resulting in significant savings back into the unreserved fund balance. Cryovac has met the requirements of its incentive agreement, and has been paid $1.17 million,resulting in$78,000 returned to the unreserved fund balance. Jessica Williams said this mid-year budget update is a great opportunity to look at the budget now that the prior fiscal year is just about closed. The biggest change is the ending fund balance. When budgeting, the staff uses the Board's ending fund balance as the beginning fund 3 balance for the next fiscal year. At this point, the actual ending cash balance is $4 million over initial budget estimates. Mr.Lane asked about Clayton Homes and bond payments.Ms. Williams said her staff had gathered what they hoped was every agreement for the WFEDC from multiple sources. If something needs to be included they have overlooked,please let them know. 8. Consent Agenda a. Approval of 12/21/20 Minutes - David Toogood moved to amend certain statements attributed to him. Seconded by Ms. Cowling,the motion carried 5-0. b. Financial Report—Mr. Menzies noted that sales tax receipts are up 1.7%for the first two months of the year. 9. Executive Session Mr. Lane adjourned the meeting into executive session at 3:38 p.m. pursuant to Texas Government Code §§551.072 and 551.087. Mr.Lane recused himself from the executive session during discussion of Panda Biotech. He announced the meeting back into regular session at 4:05 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. 10. Motion(s) Chantex—Phyllis Cowling moved that Chantex Manufacturing be deferred from the 2020 loan requirements for one year (until October 30, 2025), in recognition of the COVID 19 pa ndemic. Seconded by Brent Hillery, the motion carried 5-0. Dental Planet—David Toogood moved that Dental Planet be deferred from the 2020 loan requirements for one year,in recognition of the COVID 19 pandemic. Seconded by Brent Hillery, the motion carried 5-0. Pamlico Air—Darron Leiker moved that the WFEDC approve the request from Pamlico Air to release the irrevocable letter of credit.but keep the secured note. Seconded by Mr.Toogood, the motion carried 5-0. Amended Budget-Ms. Cowling moved to accept the amended budget. Seconded by Mr. Leiker. the motion carried 5-0. 11. Adjourn The meeting adjourned at 4:09 p.m. tea_ 7°-(4""•=j David Toogood, Vice President 4