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4A Wichita Falls Economic Development Minutes - 09/15/2022 MINUTES OF THE - WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION September 15,2022 Present: Leo Lane,President § WFEDC Members David Toogood, Vice President § Darron Leiker § Brent Hillery § Stephen Santellana,Mayor § Mayor&Council Larry Nelson, Councilor,District 2 § Paul Menzies,Assistant City Manager § City Administration R.Kinley Hegglund,Jr., City Attorney § Russell Schreiber,Director of Public Works § Jessica Williams, CFO §� Terry Floyd,Director of Development Svcs §, Stephen Calvert, Senior Budget Analyst § Chris Horgen, Public Information Officer § Paige Lessor,Recording Secretary § Richard Gordon, Interim President/CEO § Wichita Falls Chamber of Commerce Taylor Davis, Dir of Bus Retention&Expansion § Ryan McGowan, Director of Bus Intelligence § Johnny McClane § Falls Metal Fabrication,LLC Lynn Walker, Writer § Times Record News Absent: Phyllis Cowling, Secretary-Treasurer § WFEDC Member 1. Call to Order Mr. Leo Lane called the meeting to order at 2:30 p.m. 2. Consent Agenda a.Approval of Minutes (August 18,2022) b. Financial Report Mr.-Paul Menzies addressed the Board and said he received the sales tax report for September reflective of July;sales. Sales are up 8.3%from the same month last year and trending just short of 10% ahead of last year. If this trend continues, revenue from sales tax for this Corporation will be about$5.1 million. WFEDC Minutes 09/15/2022 Page l of 3 I Mr. Leiker moved to approve the consent agenda. Seconded by Mr. Toogood, the motion carried 4-0. 3. Discussion and possible action related to the Wichita Falls Economic Development Corporation's FY 2023 proposed budget Mr. Menzies directed the Board's attention to the far right-hand column of the financial report. He said if sales tax pans out the way expected, at about$5.1 million, the budget is flat for the next year. Based on the Federal Reserve's actions over the past few months, interest earnings will be significantly higher,which is positive for the Corporation's revenue. He further discussed the Corporation's third-party contract with the Chamber, reminding the Board it is based on a calendar year, so what is budgeted is a blend of the last three months of this calendar year and the first nine months of the next calendar year. Mr. Menzies then listed the three other third-party contracts that were approved at the Board's July meeting, SMAC, Downtown Wichita Falls Development(DWFD), and i.d.e.a.WF, as well as the City administrative expense and the annual payment for the Business Park Infrastructure Project. Beginning the new fiscal year, the Corporation should have approximately$14 million for new projects. Mr. Toogood noted that the debt service for the Business Park Bond increased slightly compared to the prior two years.He is asked if the reason was because of the new bond.Ms.Jessica Williams explained that there would be slight variations with the bond schedule because of where the interest is compounding at the time. Mr. Lane noted that the Business Park electricity is budgeted at$7,000, but the costs have only been around $150.00. Mr. Menzies stated that as the infrastructure project wraps up, there will be streetlights that will require electricity. Mr. Leiker moved to approve the WFEDC's FY 2023 budget. Seconded by Mr. Hillery, the motion carried 4-0. 4. Discussion and possible action related to canceling the current$16,000 Cash-for-Jobs agreement with Falls Metal Fabrication and executing a new agreement for the same amount in the form of a forgivable loan Ms. Taylor Davis addressed the Board and noted that Falls Metal Fabrication had won a cash-for-jobs incentive for$16,000 through the i.d.e.a.WF competition. She said since that time, the Company had recently purchased a facility in Downtown Wichita Falls. The facility comes with a significant renovation cost, especially in bringing its fire suppression system up to code. Ms. Davis explained that the Company is requesting a transition from the current cash-for-jobs model to an upfront forgivable loan in that same amount.She then introduced Mr.Johnny McClane to speak about the renovation. Mr. McClane stated that he had a progress report to give the Board. He said that Greg Patterson, a mechanical engineer, has joined their team, and he would help set up the operation of the new equipment they have ordered: The new equipment is substantially more expensive now than it was six months ago and should all be delivered in about two months. They have produced and sold a few fireplace units, but they currently do them by hand. Underwriters Laboratories has been in quarterly to inspect their space and the units they produce. Their Company has been in contact with three distributors who have shown great enthusiasm about their product and are ready to place orders when they can deliver them in larger quantities. WFEDC Minutes 09/15/2022 Page 2 of 3 Mr. McClane explained that he and his partner, Lee Birk, purchased the old Empire Paper Company building at 14th Street and Scott. They will move the entire Falls Metal Fabrication operation to that location. The building has plenty of room for the new equipment, including 29,500 square feet, loft storage, and loading docks. They are working with the City on their plans and permits to complete all required alterations, including the fire suppression system, accessible bathrooms, and emergency exit doors. Mr. McClane said their Company had incurred far more expenses than planned to get their operation up and running, but they are still moving along. They hope the Board will agree to realign the funds previously approved to assist with renovating the building. 5. Executive Session Mr. Lane adjourned the meeting into executive session at 2:40 p.m. pursuant to Texas Government Code §§ 551.087 and 551.071. He announced the meeting back into regular session at 3:00 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. 6. Motions Falls Metal Fabrication's request to cancel the current $16,000 Cash for Jobs agreement and execute a new agreement for the same amount in the form of a forgivable loan Mr. Toogood moved to allow WFEDC President Leo Lane to cancel the current performance agreement with Falls Metal Fabrication for$16,000 in Cash for Jobs,then execute a new performance agreement with Falls Metal Fabrication for the same amount as a forgivable loan, which will be forgiven should Company hire and employ four employees for a term of 1 year.The loan funds will be distributed in one installment and immediately payable upon execution of the performance agreement and promissory note. Seconded by Mr. Hillery, the motion carried 4-0. 7. Adjourned. The meeting adjourned at 3:02 p.m. Z‘o `/•4'*e'L-- Leo Lane, President WFEDC Minutes 09/15/2022 Page 3 of 3