4A Wichita Falls Economic Development Minutes - 06/06/2022 MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
June 6, 2022
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Present:
Leo Lane,President § WFEDC`Members
David Toogood, Vice President - §
Phyllis Cowlirrg,'Secretary-Treasurer §
Darron Leiker §
Brent Hillery §
Stephen Santellana,Mayor § Mayor&Council
Paul Menzies,Assistant City Manager § City Administration
R. Kinley Hegglund,Jr., City Attorney §
Jessica Williams, Chief Financial Officer §
Terry Floyd,Director of Development Svcs §
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Chris Horgen,Public Information Officer §
Paige Lessor, Recording Secretary §
Henry Florsheim, President and CEO § WFCCI
Taylor Davis, Dir of Bus Retention&Expansion §
Shannon O'Hare, Consultant § Wakefield and Cushman
Lynn Walker, Writer § Times Record News
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1. Call to Order
Mr.Leo Lane called the meeting to order at 2:30 p.m.
2. Consent Agenda—Approval of Minutes(May 19,2022)
Ms. bowling moved to approve the minutes. Seconded by Mr.Leikei,the motion carried 4-0.
3. Discussion and possible action related to Business Park land incentive for Opus Development
Company,L.L.C.,and Land O'Lakes,Inc. retention and expansion project
Ms. Taylor Davis introduced Land O'Lakes, Winfield Solutions, Opus Development, and the
Project to the Board. She explained that LOL has five sites within the Wichita Falls regional footprint,and
it is looking to consolidate into one master location.This consolidation would allow Wichita Falls to retain
eight jobs and add eight additional jobs for a total of 16 positions. Additionally, the Company would
develop a 100,000-square-foot facility in the Wichita Falls Business Park with a total investment of$14.2
million by the end of 2023. She then introduced the Project Lead, Cushman and Wakefield, as the site
selector. She also advised the Board of an update on the project. She stated that instead of Winfield
- Solutions leasing the property from Opus Development,Winfield would purchase the building from Opus.
Shannon O'Hare, with Cushman and Wakefield, a real estate consulting firm, presented a
PowerPoint presentation to the Board. She explained that Land O'Lakes is one of America's premier
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agribusiness and food companies with a broad spectrum of products and services, from agricultural
production to consumer foods to pet foods. The Company's annual sales are almost $16 billion, with a
worldwide workforce of about 9,000 people.Winfield is a subsidiary of Land O'Lakes,and,it has a site in
Wichita Falls that-measures approximately 12,000 square feet and employs eight.people. Winfield offers
industry-leading products and expertise to retailers and farmers and supports 600 plus agricultural dealers
by providing software products and techniques to maximize yield. Land O'Lakes and Winfield are
evaluation options to maximize their operational capacity. They currently operate in five disparate
locations, totaling about 152,000 square feet between Texas and Oklahoma. Cushman and Wakefield
became the site consultant to help perform a competitive site search for the best location for their long-term
growth and long-term investment. These companies have partnered with Opus Development Company so
that Opus will construct the facility for Winfield,then/Winfield will purchase that facility upon completion.
The proposed location of this operation is lot 5 in the Wichita Falls Business Park.This proposal was based
on several factors, including cost, site availability, site readiness, transportation access, employee access,
and incentives. The facility will store and distribute crop inputs,retain eight jobs, and add eight new jobs,
with a total annual payroll of over$900,000,once all 16 are employed.The facility construction budget is
$14 million. This project is competitive, and the companies are investigating multiple markets in the
southern United States and the cost associated with each location.,She requested that the WFEDC support
the companies and approve the incentive package so they can bring this project to Wichita Falls.
Ms.Cowling asked for clarification regarding Opus Development. She stated that she thought Ms.
Davis said Opus was no longer involved.Ms.O'Hare explained that Land O'Lakes and Winfield would be
entering into an agreement with Opus to develop the facility. Once completed, Winfield would purchase
that facility from Opus. Ms. Cowling clarified that this agreement differed from what was written in the
packet,in which Opus would develop the facility,then own and lease that facility to Winfield.Ms.O'Hare
confirmed that was correct.
4. Discussion and possible action related to a 1`oan and other incentives for Winfield Solutions,
L.L.C.and Land O'Lakes,Inc.for retention and expansion project
Mr. Lane asked if this discussion was still needed, and Mr.Hegglund explained that because Item
4 is a separate motion and action, there should be a separate but,similar discussion. Ms. Davis stated that
the previous presentation and provided information cover both motions. She said that unless the Board had
specific questions about the motion, she did not have any further information.
5. Strategic Discussion
Mr. Florsheim addressed the Board to discuss Falls Future Strategic Planning. He explained that
after receiving feedback from the Board and others involved and because so much time is spent on going
over why and how certain deals are put together, the final plan will include an incentives review. This
review will consist of how the amount per job is determined, how the deal should be structured, and how
the deal compares to peer markets. He stated that he reached out to Alisha Cook, but she does not do that
kind of work,but she referred him to another firm,and he has a Zoom call with them,on Friday.He will be
able to provide some feedback on what the process would look like,the cost, etc. He stated that there are
some good projects right now, but he wants to ensure everyone is comfortable and on the same page with
how the deals are being put together. He said he would be happy to answer any questions.
6. Executive Session ,
Mr.Lane adjourned the meeting into executive session at 3:08'p.m.pursuant to Texas-Government
Code ,§§ 551.087 and 551.072. He announced the meeting back into regular session at 4:17 p.m. The
subjects posted in the Notice of Meeting were deliberated, and no votes or further actions were taken on
the items in executive session.
7. Motions
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Business Park land incentive for Opus Development Company, L.L.C., and Land O'Lakes,
Inc.MsXowling moved to donateLot 5 (approximately 14.9 acres)in the Wichita Falls Business
Park to Opus Development Company, L.L.C., and Land O'Lakes, Inc., in exchange for the
development of a new facility which is at least 100,000 square feet,and for retention of eight jobs
and the creation of an additional eight jobs for a minimum of 12 months. Should Company fail to
hire and retain the 16 jobs as agreed, Company will pay a proportionate amount of the total land
value of$1,054,696.50 back to the WFEDC based on the total actual number of j obs in compliance.
Seconded by Mr.Hillery,motion carried 5-0.
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Loan and other incentives for Winfield Solutions,L.L.C.and Land O'Lakes,Inc.Ms.Cowling
moved to provide incentives of a five-year forgivable loan not to exceed$1,000,000,cash for jobs
not to exceed $80,000, employee relocation assistance not to exceed $64,000, reimbursement for
fees and permits not to exceed$50,000,and Skills Development Fund not to exceed$54,000 for a
total maximum obligation of$1,248,000 to Winfield Solutions,L.L.C,and Land O'Lakes,Inc.,as
presented. The loan funds will not be tendered to Company until the City issues a certificate of
occupancy for a new 100,000-square-foot or larger structure built on Lot 5 of the Wichita Falls
Business Park. Seconded by Mr.Toogood,motion carried 5-0.
7. Adjourned.
The meeting adjourned at 3:29 p.m.
Leo Lane, President
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