Res 088-2021 4A Panda Biotech Performance Agreement Amendment 08/03/2021 Resolution No. 88-2021
Resolution approving the programs and expenditures of the Wichita
Falls Economic Development Corporation (WFEDC) by amending the
existing incentive agreement with Panda Biotech of up to $2,800,000
related to their proposed purchase and operation out of the former
Delphi Plant on 1-44
WHEREAS, Texas Local Gov't. Code §501.073(a) provides "The corporation's
authorizing unit will approve all programs and expenditures of a corporation and annually
review any financial statements of the corporation"; and,
WHEREAS, on July 15, 2021 , the WFEDC approved the Project listed below and
as stated in its agenda.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1. The Wichita Falls Economic Development Corporation's approval and funding
of the following programs and expenditures as described below and in said corporation's
agenda, are approved:
Panda Biotech Project:
• Amendment to the existing agreement between the WFEDC and
Panda Biotech to extend the repayment deadline of the $1.0M loan
provided by the WFEDC to Panda Biotech until no later than
December 31, 2021.
2. All other terms of the agreement approved by the WFEDC on January 26, 2021 ,
and the City Council on February 2, 2021 remain in effect.
PASSED AND APPROVED this the 3rd day of August, 2021.
MAYOR
ATTEST:
City Clerk
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION AGENDA
JULY 15 2021
ITEM/SUBJECT: Panda Biotech Extension Request
INITIATED BY: David Leezer, CEcD FM
COMMENTARY:
Last month, we discussed the possible extension of Panda Biotech's interim loan for another six
months. While we are confident it would take less than four months to complete, it was
considered more prudent to give them a six-month extension.
Given the complexity of the bond financing structure, we all agreed that someone with a greater
understanding of finance should speak with company officials to gain a greater insight on the
matter. At the request of WFEDC Board, a conference call was conducted with Panda Biotech,
Chamber staff and representatives of the city's finance team
Dixie Carter started the conversation stating they are committed to Wichita Falls and intend to
close on the building in July and COULD possibly start operations by the end of this year. The
remainder of the meeting focused on the financing structure and use of both public and private
funds. In short,our finance representatives sought to better understand the intricacies of the
funding process.
After the conversation, Panda officials were to submit information to our representatives to and
provide more details about bond program and how the private investors participate in the project
I have followed up with Dixie to reiterate the importance of this follow-up information.
RECOMMENDATION:
Pending discussion with the City finance team, we recommend a six-month extension to the
payback deadline of Panda Biotech's forgivable loan.
Respectfully submitted,
David A. Leezer, CEcD FM
Vice President of Business Attraction
Wichita Falls Chamber of Commerce