4A Wichita Falls Economic Development Minutes - 03/18/2021 MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
March 18, 2021
Present:
Leo Lane, President §
David Toogood, Vice-President § Members
Phi his Cowling, Secretary-Treasurer §
Brent {iillcr� §
Darron Leiker §
Stephen Santellana § Mayor
Paul Menzies, Assistant City Manager § City Administration
Blake Jurecek, Assistant City Manager §
R. Kinley Hegglund, Jr., City Attorney §
Russell Schreiber, Director of Public Works §
Terry Floyd, Director of Development Services §
Jessica Williams, Chief Financial Officer §
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 §
Taylor Davis, Director, Talent Partnership §
Karen Bivona, Office Manager §
Kerry Maroney § Biggs & Mathews
Murphy Davis § Sentry Management
Murph Davis §
1. Call to Order
Leo Lane called the meeting to order at 2:30 p.m.
2. Strategic Discussion
Henry Florsheim said the Board has requested the Chamber start each meeting with an
update on a particular part of strategy, either established through Opportunity Strategies or the
Market Street Study. Travis Haggard will update the Board on some business retention and
expansion (BRE) activities.
Surveys - Mr. Haggard noted that his BRE peer group formed a committee to come up
with new survey questions as an opportunity to determine the effects of Covid-19 on industries.
He shared some of the questions directed to these job creators.
Winter Storm Update — Mr. Haggard asked existing local businesses what type of
damage/loss was incurred as a result of the winter storm. The most common response received
thus far indicated water damage as a result of frozen fire suppression systems.
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Brent Hillery asked if he has an estimate on the financial hit taken by these companies.
Mr. Haggard said it will probably be another month or two before those numbers are in.
Partnership—Mr. Haggard was contacted by some companies regarding expansion in land
use and the need for building permits. He put them in contact with Development Services Director
Terry Floyd, whose office is assisting these companies.
3. Presentation related to the proposed Business Park Infrastructure Project
Paul Menzies noted the Board $1.5 million in October for preliminary engineering design
and geotechnical work to improve the infrastructure at the Business Park. In December,it provided
direction to staff to move forward with behind-the-scenes administrative work. Today, staff will
provide an updated discussion on the project, including the financials.
Russell Schreiber said Biggs & Mathews has prepared the Business Park conceptual plan.
There is room to grow the Park to the east, if the Board so desires (by annex ation). Kerry Niaroney
prepared the plan, making sure the lots were of significant site (75 to loouu acres). and ensuring
they could he served with water and sewer. Everything is preliminary: no platting will he done at
this time.These engineering services for water. sewer and roadways came in at a cost of$995,000.
Phase 1 —should be ready to award in June or July. This phase involves water and sewer
improvements, and extends the sewer line south along Midwestern Parkway to tie into the 12"
line off Hammon Road. Improvement of the sewer line is proposed in order to carry more capacity
out of the Business Park. The I water line improvements would also be included. The total cost
for Phase 1 is just over $2 million(with a 25% contingency).
Phase 2 —to be awarded in September/October 2021. Phase 2 would widen Midwestern
Parkway to a 48' concrete street to Fisher Road (at a cost of$4.1 million). It would also complete
the eastern half entrance at Fisher Road. making that a divided thoroughfare into the Business
Park (estimated at S976.000). The total cost for Phase 2 is just over$5 million, including the 25%
contingency.
Phase 3 - to be awarded in March/April of 2022. This phase would upgrade Hammon
Road by enlarging it to a 48' street. The total cost would be $2.2 million, with a S )().()u0
contingency, or$2.7 million.
The total cost of the construction is just shy of$8 million, with $2 million in contingency
funds. There is a lot of contingency built in, hut construction costs, fuel prices. and steel prices
are all on the rise. Estimates indicate there are sufficient funds vyithout the contingencies. hut they
provide wiggle room if necessary. None of these phases include street lighting. an additional cost
of$500,000. However, Mr. Schreiber feels the contingencies would more than corer that cost.
Phyllis Cowling asked if this work would cover the majority of items determined necessary
to attract business. Mr. Schreiber said this plan does not include an upgraded lift station,but those
stations need to be updated when the need arises.
Darron Leiker said a potential developer would likely have to do final site grading,on-site
detention, and install a private service line. Mr. Schreiber said they might also need to develop a
roadway, which is typically the investor's responsibility.
Kerry Maroney all of the proposed improvements will immediately be utilized. He added
that the design includes a pocket in which to put wastewater; it will cross the freeway and
discharge into a major line that goes to the Wastewater Treatment Plant. There are inquiries
regarding fire flow demands. The 12" line extension to Hammon Road will comfortably meet
3,000 to 3,500 gallons per minute of fire flow.
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If development happens in the southern lots, it would make sense to put in a temporary lift
station to handle that particular industry. There is a 500,000 gallon elevated storaue tank on the
east side. He believes this investment in the Business Park will pay dividends in the future.
David Toogood thanked Mr. Maroney for providing the long-term vision overview. He
provided another development concept for the south end of the Park, and requested that the Board
be included in the long-term planning.
Mr. Maronev commended David Leezer; he has been in Wichita Falls for 40 years, and no
one has been quite as aggressiv e us he in pursuit of these improvements. A master plan is needed
because of what he is try ing to do with the Park. Ms. Cowling asked Mr. Florsheim if this plan
met the Chambers needs. N l r. Florsheim said it gets Wichita Falls in the game.
Mr. Schreiber added that the City would manage the project in-house, with Mr. Maronev
being a consultant.
4. Consider and approve a resolution authorizing the issuance of Wichita Falls
Economic Development Corporation sales tax revenue bonds
Jessica Williams said she, the City's financial advisors (Sentry Management), and
underwriting counsel (Sam Gill) have worked on this project since October. They have been
drafting the preliminary official statement, which will become the official statement presented to
the market.
Today, the Board is at the point to vote on a parameters resolution, to be presented to the
City Council on April 6. This resolution basically sets the rules for sale and issuance of the bonds.
It sets the amount, the coupon rate, the length of time, and sets the pricin2 officer (Board
president). Ms. Cowling noted the resolution refers to the true interest cost, not the coupon rate.
Nis. Williams said she misspoke; it is the true interest cost.
The preliminary official statement includes the cost of issuance and debt service fund. One
year's payment will be held as collateral against any unforeseen event. The Board can direct the
amount that it feels com f ortable issuing. The parameters resolution sets the rules so that such
amount cannot be exceeded.
If the Board moves forward with this resolution, she will participate in a ratings call with
Standard& Poor's and the financial advisors tomorrow. The higher the rating,the more attractive
the issuance to potential buyers. It is anticipated to close and fund this issuance on June 3, 2021.
The sales tax resolution is the document used to establish a current practice. It outlines
how the finances will be handled. Such finances will receive the same due diligence as do City
accounts.
Twenty Years - Annual Debt Service: $750,000
Total revenue dedicating to servicing the bond: $750,000 + $140.000' = $890,000, or
20-21% (assuming the current $4 million in revenue)
Thirty Years—Annual Debt Service: $557,000 maximum (but not always this amount)
Total revenue dedicating to servicing the bond: $557,000 + $140,0002 = $697,000, or
16% (assuming the current $4 million in revenue)
'Airport debt service
2 Airport debt service
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Sales tax receipts have really changed since November. At this point. the Board is closer
to collecting what was estimated for year 2030 receipts. This past month, sales tax receipts were
21%over the same month from the prior year. Online sales were the major factor for this increase.
She gave the floor to Murphy Davis of Sentry Management. Mr. Davis said interest rates
have risen since he last spoke to the Board, but they are still at historically low levels. It is a \cry
attractive time to price.
He strongly recommends the Board go with the 30-year bonds. Both the 20-year and 30-
year bonds have 10-year call options. Murph Davis cautioned that the maximum debt service is
an estimate that could change based upon interest rates. The coupon rate is estimated at 5%, but
he does not think it will get close to that amount, and the interest rate would be much lower. The
true interest cost is the one to watch.
Ms. Cowling noted the debt service would move up or down based upon the market and
pricing. Her concern is that it is 3.7°%. capped at Does nn>one expect it to rise to 5%, and how
would that affect the annual debt scry ice'.' \I urhll lDav is said that is primarily to give underwriters
some flexibility. He noted the Board will ha\e to approve it. Mr. Lane said he will make sure the
Board sees the final figures: perhaps they will hold a special meeting.
Ms. Williams said all that is technically required to move forward is an affirmative vote
today, and approval by the City Council on April 6. However, the Board is free to meet again.
5. Discussion related to amendments to the relocation incentive program
Mr. Florsheim said this incentive program is designed to offset the cost of relocation
expenses for companies who recruit workers from out of town. The Chamber team has worked
with City staff over the last couple of months to refine some of the language.
Taylor Davis discussed the changes made:
• "Primary residency" means an employ ee's home and/or residence; the employee is
expected to live at such primary residence (in Wichita County) at least 51%, or 92
days, of the six-month incentive period.
• Reconciliation requirements, and what documents are accepted as verification for
employment and residence, are delineated.
• The$50,000 allotted for the program has the capacity to fill an average of eight primary
positions during fiscal year 2020-21 ($6,000 per job).
6. Consent Agenda
a. Approval of minutes (6/18/20). Ms. Cowling moved for approval. subject to a
correction on the first page (replace "Present" with "Absent."). Seconded by 1)av id
Toogood, the motion carried 5-0.
b. Approval of minutes (1/26/21). Mr. Toogood moved for approval: seconded by Mr.
Leiker, the motion carried 4-0. with Mr. Lane abstainiml.
C. Financial Report. Paul 'Menzies noted the Board had already been informed of the
sales tax report by Jessica Williams. He added that the WFEDC has a healthy
unencumbered fund balance of$7.4 million.
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7. Executive Session
Mr. Lane adjourned the meeting into executive session at 3:47 p.m. pursuant to Texas
Government Code §§551.072 and 551.087. He announced the meeting back into regular
session at 4:29 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.
8. Motions
Phyllis Cowling moved for approval of the resolution authorizing the issuance of the
WFEDC sales tax revenue bonds. establishing the procedure and delegating the authority for the
sale and delivery of the bonds. providing the security- for and payment of said bonds. providing
an effective date and enacting other provisions related to the subject. Seconded by Brent Hillery.
the motion carried 5-0.
9. Adjourn
The meeting adjourned at 4:30 p.m.
Leo Lane. President
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