4A Wichita Falls Economic Development Minutes - 01/26/2021 MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
January 26, 2021
Present:
David Toogood, Vice-President § Members
Phyllis Cowling, Secretary-Treasurer §
Darron Leiker §
Paul Menzies, Assistant City Manager § City Administration
R. Kinley Hegglund, Jr., City Attorney §
Russell Schreiber, Director of Public Works §
Terry Floyd, Director of Development Services §
Andrea Kidd, Public Information §
Linda Merrill, Recording Secretary §
Henry Florsheim, President and CEO § CCI
David Leezer, V.P, Business Attraction §
Travis Haggard, V.P., BR&E §
Absent:
Leo Lane, President § Members'
Brent Hillery §
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 the last discussion regarding Panda Biotech
involved amendments to the performance agreement. The Board is considering a $1 million loan
that would be paid back from proceeds of the bond sales. At that point, the Board would provide
$2.35 million in cash for jobs. That would mean less risk for the Board, as that money would not
be paid until Panda Biotech had hired the required number of employees. Darron Leiker asked
how the $1 million loan would be collateralized. Mr. Florsheim said it would be with $2 million
worth of equipment.
Phyllis Cowling said the packet for today's meeting said the $1 million loan would be paid
back "once all requirements have been met." She asked what are those requirements. Mr.
Florsheim said they are what the Board wants them to be. Previously, it included the PILOT
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.
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agreement, and there was discussion about including the purchase of the building. Ms. Cowling
said she recalled that was removed from consideration.
Mr. Florsheim noted that the cash for jobs is amended from $350,000 to $2.350 million.
Ms. Cowling asked if the amount paid per job remains the same. Mr. Florsheim said 75 jobs are
projected; therefore, the dollar amount per job has increased. However, it is not disbursed until
they earn it by way of hiring workers.
Mr. Leiker asked if the cash per jobs incentive will be addressed later. Mr. Hegglund said
Panda Biotech wants it included in the contract.
Mr. Leiker asked how to draft this motion. Mr. Hegglund said the loan cannot be linked to
the bond,as there is always the possibility they will not get it. He suggested a six-month loan. Ms.
Cowling added that the loan should be paid back within "x" number of days past the receipt of
bond funds, or within six months, whichever comes first. Mr. Leiker said that could be part of the
trigger for the cash for jobs incentive.
There was discussion concerning the need for some preparatory work done on the language
of these motions, since they get so involved and are done presently off the cuff Mr. Hegglund
said he would work with the Chamber to come up with a solution.
Mr. Leiker moved to amend the performance agreement with Panda Biotech to include a
$1 million interim loan that is secured with collateral as identified in the "Laroche invoice'"
presented at the Board's December 8, 2020 meeting. This loan shall be repaid by the earlier date
of(a) the receipt of proceeds from the bond sales or (b) within six months from the date of the
loan. Further, he moved that the cash for jobs portion of the incentive agreement be increased to
$2.350 million, after the original $1 million is repaid and the PILOT agreement is finalized. All
other portions of the prior aureement remain the same. Seconded by Ms. Cowling. the motion
carried 3-0.
3. Consent Agenda—approval of minutes of January 21, 2021
Mr. Leiker moved for approval. Seconded by Ms. Cowling. the motion carried 3-0.
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 3:18 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. Adjourn
The meeting adjourned at 3:18 p.m.
Leo Lane, President
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