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4A Wichita Falls Economic Development Minutes - 06/17/2021 MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION June 17, 2021 Present: Leo Lane, President § David Toogood, Vice-President § WFEDC Members Phyllis Cowling, Secretary-Treasurer § Darron Leiker § Stephen Santellana § Mayor and Council Bobby Whiteley, Councilor at-Large § Jeff Browning, City Councilor District 3 § Paul Menzies, Assistant City Manager § City Administration Blake Jurecek, Assistant City Manager § R. Kinley Hegglund, Jr., City Attorney § 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 § Katie Britt, Marketing Director § Taylor Davis, Director, Talent Partnership § Shay Jones, Director, Business Intelligence § Jana Schmader, Executive Director § DWFD Jeanette Charos, Marketing Director § Scott Manley § i.d.e.a.WF Jeannie Hilbers § Kerry Maroney, President § Biggs & Mathews Tom Taylor § Lynn Walker § Times Record News Absent: Brent Hillery § WFEDC Member 1. Call to Order Leo Lane called the meeting to order at 2:30 p.m. He noted that Brent Hillery had to go to Oklahoma City this morning, but hoped to join the meeting later. 1 2. Discussion/possible action related to third-party economic development contracts, including SMAC, Downtown Wichita Falls Development, I.d.e.a.WF and the Chamber a. SMAC Glen Barham said SMAC is requesting the same amount as previous years($150,000). Summary: • More pledges for the capital campaign are expected, increasing the $86,150 figure to $93,500. • 3.8% pay increase for his part-time assistant(to $13.50/hour). • Office space rental is renegotiated annually,at either+3%or the percentage change in the Urban Consumer Price Index. • A slight rise in costs for telephone and interne service is anticipated. • The travel budget is slightly lowered. He will attend a conference in Washington, D.C. next month, and will meet with Capitol Hill and Pentagon officials in the fall. • The cook-out for airmen that was to be held this spring was postponed due to Covid. He hopes to have this event in September, combining it with the large event normally held in October. • He would like to hold any unexpended funds in reserve in the event something comes along that would have a serious financial impact on the organization. b. DWFD Jana Schmader said DWFD's proposal is a continuation of the work done for the past 18 months. The request($106,500) is a reduction from last year. Summary: • They will begin traveling again for various conferences and seminars. • Virtual property tours continue, with the drone videos furnished to different markets. • In addition, they are working toward an Open House program, opening available properties for viewing at night and on weekends. • Support services for downtown residential areas are being solicited, such as grocery stores, dry cleaners, retail, and more family entertainment. Phyllis Cowling acknowledged that 2020-21 was an unusual period of time. She asked Ms. Schmader what she considered DWFD's key accomplishment in furtherance of economic development. Ms. Schmader replied the retention rate, as downtown only lost two businesses during the pandemic. Ms. Cowling asked what she would want that answer to be a year from now. Ms. Schmader said it would be for more inventory to be gone. She believes the Property Maintenance Code developed by the City might force the hand of some property owners to sell, and to sell at an economical asking price. She has no shortage of potential buyers. Mr. Lane asked if DWFD would still be conducting festivals. Ms. Schmader replied that all festivals will be back in 2022. 2 c. i.d.e.a.WF Scott Manley introduced Jeanie Hilbers, whose time is devoted 100%to this program. The request is for up to $300,000, broken down into $50,000 for administration and up to $250,000 for cash awards in the form of cash for jobs. Summary: • They are mid-cycle at present, and the semi-finalists have turned in the first draft of their business plans. • There are eight still in the running, but only one would be able to create primary jobs in the first year. The other seven will compete in the judge's choice category, and any funds paid to them will come from private sector donations. • The final business plan is due August 18, and finalists will be named September 10. • There is a need to find existing businesses that would add primary jobs. Their strategy going forward is to develop relationships with referral partners, commercial lenders, and small and medium manufacturers, and to market the competition to previous i.d.e.a.WF winners and prior WFEDC recipients, to work toward a continuous funding cycle. Ms. Cowling asked the same question of Dr. Manley that she did of Ms. Schmader. Dr. Manley said they want to see multiple winners as their goal for 2022. They would like to give away prizes in the six figures in 2022. Mr. Lane agreed that would be the definition of success. d. Chamber of Commerce and Industry Henry Florsheim thanked the Board for allowing the Chamber to be its economic development partner. Summary: • David Leezer (Business Attraction) held 50 zoom calls this year with consultants, prospects, and Team Texas. He recently went to a business development expo and will continue to focus on site consultants, Team Texas, and trade shows. • Travis Haggard (Business Retention and Expansion) develops relationships with local businesses. He is working with manufacturers to strengthen supply chains, and to provide soft skills training in conjunction with Vernon College. He is also pursuing a revolving loan program for projects ineligible for 4A or 4B funding. • Katie Britt (Marketing) has an ongoing email campaign, telling stories about Wichita Falls, as well as Made in the Falls videos to highlight unique manufacturers. She rebuilt the Chamber website last year. • Taylor Davis(Talent Partnership)is the Chamber's military liaison. She is working on a Talent Pipeline Management program with key manufacturers. She has completed an online platform to match interns and companies. Taylor and Shay Jones are leading the diversity equity and inclusion program. 3 • Shay Jones (Business Intelligence) gathers data and turns it in to research companies. That is how Wichita Falls shows up on rankings that show its low cost of living. She also manages the sites and buildings database. • Karen Bivona(Office Manager)handles the drop box for all the pertinent 4A files. She also is in charge of project oversight and reconciliation. • Henry Florsheim - his own job is to lead the effort to work with the consultant on the next step as has previously been discussed, oversee the staff, and ensure the money is handled responsibly. • The downtown recruitment position remains unfilled. He awaits Board instructions on whether to proceed with filling it. • The operational request reflects a 4%increase, for staffing,marketing,updated site and building database, the internship platform, and printed relocation guides. • The Chamber operates on a calendar year, so its current contract runs through December. The proposed budget is $100,000 under the 10%promotional cap. 3. Strategic discussion and possible action related to annual board performance report and work plan Mr. Toogood said he has come up with a concept. The draft is not yet ready, but this could be discussed in executive session and perhaps be ready for a vote at the Board's next meeting. 4. Discussion and possible action related to Eagle Railcar performance agreement Mr. Florsheim said Eagle Railcar moved here 7-8 years ago. During that time, they have entered into four performance agreements with the WFEDC, and have met every threshold. They are still meeting the criteria for Phases 1 and 2, but not for Phases 3 and 4, due to the Covid pandemic. They request a year's extension on those agreements. 5. Discussion and possible action related to amendments to the relocation incentive Mr. Florsheim said Chamber and City staff revised the language for this incentive,making it easier for businesses to understand the requirements up front, and what types of documents can be used to prove change of residency. 6. Discussion and possible action related to Panda Biotech performance agreement This item was discussed in executive session. 7. Consider and take action to award bid and contract for the Wichita Falls Business Park Phase 1 — Water and Sewer Improvements to Blackrock Construction, in the amount of $930,795.00, and authorizing the Board president to execute all related documents Russell Schreiber said the bids for Phase 1,water and sewer improvements,were estimated to be at $1.2 million. They came in at just over $930,000. Blackrock Construction was the lowest bidder. Kerry Maroney has experience with this group and thinks they are capable of completing the work. The City recommends this firm be awarded the contract. 4 8. Consent Agenda a. Approval of minutes (5/20/21). Mr. Lane requested that it be noted that he left the room while Panda Biotech was being discussed during the executive session. b. Financial Report. Paul Menzies said the June 2021 sales tax payment(April receipts) was up 33.5% from the same month a year ago. Comparisons to two years ago still reflect an 18.3% increase. The Board has an unreserved fund balance of$5.2 million. Mr. Leiker moved to approve the consent agenda, as amended. Seconded by Ms. Cowling, the motion carried 4-0. There was a brief discussion on the DuPlooy Trucking agreement. Mr. Leiker noted he would like to see a requirement added to performance agreements that companies be current on their taxes. 9. Executive Session Mr.Lane adjourned the meeting into executive session at 3:15 p.m. pursuant to Texas Government Code §§551.072 and 551.087. He left the executive session during the discussion of Panda Biotech. He announced the meeting back into regular session at 4:57 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. Motions Third-party economic development contracts Mr. Toogood moved to approve such contracts with SMAC, Downtown Wichita Falls Development, and i.d.e.a.WF, as submitted. Seconded by Ms. Cowling, the motion carried 4-0. Eagle Railcar Mr. Leiker moved to defer reconciliations for Performance Agreements for Phases 3 and 4 with Eagle Railcar for a period of one year, as proposed. Seconded by Mr. Toogood,the motion carried 4-0. Relocation Incentive Mr. Leiker moved to approve the amended relocation incentive, to reflect the proposed changes as presented by the Chamber. Seconded by Ms. Cowling, the motion carried 4-0. Wichita Falls Business Park Phase 1 —Water and Sewer Improvements Ms. Cowling moved to award the bid and contract for the Wichita Falls Business Park Phase 1, water and sewer improvements, to Blackrock Construction in the amount of$930,795, and to authorize the President of the WFEDC to execute all related documents. Seconded by Mr. Toogood, the motion carried 4-0. 11. Adjourn The meeting adjourned at 5:00 p.m. Leo Lane, President 5