4A Wichita Falls Economic Development Minutes - 05/20/2021 AMENDED MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
May 20, 2021
Present:
Leo Lane, President §
David Toogood, Vice-President § Members
Phyllis Cowling, Secretary-Treasurer §
Brent Hillery §
Darron Leiker §
Stephen Santellana § Mayor
Paul Menzies, Assistant City Manager § City Administration
Blake Jurecek, Assistant City Manager §
James McKechnie, Deputy City Attorney §
Marie Balthrop, City Clerk §
Terry Floyd, Director of Development Services §
Russell Schreiber, Director of Public Works §
Jessica Williams, Chief Financial Officer §
Andrea Kidd, Public Information §
Linda Merrill, Recording Secretary §
Henry Florsheim, President and CEO § CCI
Travis Haggard, V.P., BR&E §
David Leezer, V.P, Business Attraction §
Karen Bivona, Office Manager §
Taylor Davis, Director, Talent Partnership §
Shay Jones, Director, Business Intelligence §
1. Call to Order
Leo Lane called the meeting to order at 2:30 p.m.
2. Strategic Discussion
Henry Florsheim provided an update to the economic development strategy.
School Facilities — Community-wide campaign to educate citizens on the importance of
modern school facilities. The two recent votes on the school and athletic facilities closes out this
catalyst in the short term.
Best Practice Economic Development — Improve capabilities to respond to employer
needs through Business Retention and Expansion headed by Travis Haggard. Permitting has been
streamlined at the City. The inventory of ready sites and buildings has led to the improvements to
be made at the Business Park.
Align Legislative Agenda with Strategic Education Needs—The Chamber has developed
a government affairs committee. The City and County also look out for upcoming legislation.
Diversity Initiative— The steering committee has met via Zoom, and calls with diversity
professionals in Dallas and Kansas City are scheduled.
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Talent Partnership—Taylor Davis runs this program, designed to enhance the local talent
development pipeline. Those in that pipeline include military spouses, military members about to
separate, veterans, and interns. The Circuit is a new emerging leader program with 60+members.
SAFB — SMAC continues its advocacy work, strategic planning and SWOT efforts. The
main gate and transportation centers have strengthened the physical connection with the City.
Live/Work/Play Downtown — DWFD handles marketing. Progress is being made on the
development of the convention hotel. A business improvement district needs to be developed to
fund infrastructure upgrades. The WFEDC has funded the unfilled Downtown Business
Recruitment position for two years. He is unsure whether it is the right time for this position.
Bike Friendly Community — This catalyst prioritized the Circle Trail, which is nearing
completion. Wichita Falls is now a Bronze-level biking friendly community. The City has been
putting bicycle graphics on city streets to remind drivers these are shared roads.
Entrepreneurial Maker's Hub — No traction has been gained on this project, since the
private partner who was going to take this on did not materialize.
There has been a lot of overall progress. It is time now to think about what happens next:
keep pushing on these catalysts or update the strategy (internally or through a consulting firm).
Mr. Lane acknowledged the success of these programs. He asked how Mr. Florsheim envisioned
going forward. Mr. Florsheim said professional consultants are not vested in the community and
thus would be more objective. Ms. Cowling said she is pleased to hear not only of the progress,
but of Mr. Florsheim's inclination to update the strategic plan.
Mr. Lane asked the Board if they wish to give Mr. Florsheim instructions to come back
with more information on hiring a consulting firm. Ms. Cowling said she would be in favor of
that. Mr. Leiker said that effort could be included in the Chamber's budget request. Mr. Florsheim
said he could not get information from the companies by the June 1 deadline to submit the budget
proposal. Mr. Lane said a placeholder could be created for this funding.
3. Open Government Compliance Training with City Clerk
City Clerk Marie Balthrop presented an update on open government compliance. She
noted that each Board member had completed the mandatory open meetings and public
information training.
She cautioned against the holding of any illegal meetings, in which the members
knowingly engage in official business outside of an open meeting. In addition, she provided
guidance on the use of private devices (e.g., personal cell phones), as certain information
contained thereon could be considered public information. The Board member has a duty to
maintain the information, or furnish it to the City Clerk. Board members can be held personally
liable if someone is injured by the disclosure of the certified agenda of executive sessions.
Finally, she turned to conflict of interest (such as real property business interests, vendor
relationships, and property acquisition). She provided a handout to help the members determine
whether they have such a conflict. Mr. Toogood asked how often such a form has to be submitted.
Ms. Balthrop replied once is sufficient,unless there has been a change in circumstances-in which
case, a new form would be required.
4. Update on Financing for Business Park Upgrades
Jessica Williams provided an update on the bond issuance for the Business Park. The
issuance of sales tax revenue bonds has been completed. They secured a strong rating of AA-,
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which was upgraded to AA with the issuance of insurance. They are set to fund and close on June
3, and her department is prepared to receive those funds.
The total project fund is $9.9 million, with the principal amount being $8.7 million. The
total issuance was $10.1 million. The true interest cost, which is the interest paid by the Board,
was only 2.847%. She is very pleased with all the numbers,adding that the annual payment would
range between $515,000-$519,000 per year over the life of issue. A couple of days before the
pricing, they talked with others in the market about insurance. A total of$31,000 in insurance
saved $500,000 in total issuance cost.
Mr. Toogood asked if the City could hold the funds not being used and make substantial
interest. Ms. Williams said funds may be invested, in accordance with the City's investment
policy, and federal arbitrage rules.
5. Discussion and Possible Action Related to Clayton Homes Incentive Proposal
Mr. Florsheim reminded the Board that it was 2017 when the 4A/Chamber first began
discussions with Clayton Homes. The company signed a purchase agreement on the Atco building
soon after.
The final TCEQ affidavit is due next week. Clayton Homes is ready to move forward.
They intend to create 181 jobs in three years,with an annual total payroll close to $9 million. They
still intend to purchase the Atco building. The original purchase price of$1.1 million has been
reduced to $1 million, as the company has had to purchase additional insurance.
The incentive package includes:
• $7,500 cash per job, not to exceed $1,357,500 (employed for six months)
• Training grant up to $1,200 per employee if state funding does not materialize,not
to exceed $270,200
• Employee relocation assistance for a maximum of 20 employees at$8,000, not to
exceed $160,000.
Per Mr. Leiker's request, a sample motion has been provided for the Board.
6. Discussion and Possible Action Related to a Correction to WFEDC Bylaws
Mr. Florsheim said the first sentence of Article IV, Section 2 refers to "sixty (30) days."
The bylaws need to be amended to reflect a uniform number of days.
7. Consent Agenda
a. Approval of minutes (3/18/21). Mr. Toogood requested the year 2030 be changed to
2020 in the following sentence: "At this point, the Board is closer to collecting what
was estimated for year 2030 receipts."
b. Financial Report. Paul Menzies said the May 2021 sales tax payment (reflective of
March receipts) was up nearly 50% from the same month a year ago. Comparisons to
two years ago (pre-Covid) still reflect a 37.7% increase. The increase is related to
stimulus payments and a rise in the cost and demand for construction materials. The
Board has an unreserved fund balance of$7.4 million.
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C. Q1 Activity Reports.
Mr. Lane said this was a great report. Ms. Cowling agreed that it was very helpful.
Mr. Toogood said he realized it was a bit of a burden and time-consuming,but it served
its purpose. He said a couple of things would be helpful to him: for each breakdown,
include a brief statement related to progress on objectives and on the budget, as well
as a declaration identifying the companies with performance agreements, including
how far along they are under the terms of their agreement.
Ms. Cowling moved, seconded by David Toogood, to accept the consent agenda, as
amended. The motion carried 5-0.
8. Executive Session
Mr. Lane adjourned the meeting into executive session at 3:17 p.m.pursuant to Texas
Government Code §§551.072 and 551.087. He left the executive session while Panda
Biotech was discussed. He announced the meeting back into regular session at 4:02 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.
9. Motions
Clayton Homes
David Toogood moved to amend the WFEDC budget to include funding of$1,734,700,as
presented in the project summary and incentive letter to assist Clayton Homes to develop a
manufacturing facility in Wichita Falls. Seconded by Darron Leiker, the motion carried 5-0.
Bylaws
Brent Hillery moved to amend the WFEDC Bylaws at Article IV, Section 2, so that the
number of days referenced in the first sentence reads as "thirty (30)." Seconded by Phyllis
Cowling, the motion carried 5-0.
10. Adjourn
The meeting adjourned at 4:04 p.m.
Leo Lane, President
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