4A Wichita Falls Economic Development Minutes - 11/10/2011I
MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
November 10, 2011
PRESENT:
Gary Shores, President § Members
Dick Bundy, Vice President/Sec.- Treasurer §
Dave Lilley §
Lanham Lyne §
Gary McLendon §
Tim Ingle, Councilor for District 4
Darron Leiker, City Manager
Kevin Hugman, Assistant City Manager
Miles Risley, City Attorney
Linda Merrill, Recording Secretary
Tim Chase, President
Kevin Pearson, Vice President
Barry Hardin
1. CALL TO ORDER
J
TVa�E:
Council Liaison
§ City Staff
§ Chamber of Commerce & Industry
§ Cryovac
President Gary Shores called the meeting to order at 4:00 p.m.
2. CRYOVAC PROJECT
Tim Chase thanked the members for meeting on relatively short notice. At its meeting of
September 7, 2011, the Board's goals regarding Cryovac were to help it add some short-term
jobs and to send a strong message to corporate headquarters about the community's preparedness
for future investments.
Barry Hardin explained this opportunity (plastics packaging) could potentially lead to 30
new positions in Wichita Falls. Now is the time to get information in front of the group who will
make that decision. Mr. Hardin stressed to the Board that he would not request 4A funding
unless it was truly pivotal whether that business comes to Wichita Falls. The new venture could
come to Wichita Falls, or be located in St. Jo, Missouri, or Simpsonville, South Carolina.
Mr. Hardin added that this package would also maintain a competitive edge for the 900
jobs in these two locations. The more aggressive and competitive this location can be, the better
message it sends to maintain and grow these plants.
Dick Bundy asked if the cost for jobs is the same for each potential location. Mr. Hardin
replied the costs are not the same, but he did not know the wage structure of the other cities. The
wages per hour at the Wichita Falls plant for these jobs would be the same as for the last request.
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WFEDC — Minutes of November 10, 2011
Mr. Chase proposed to amend the Performance Agreement to add 34 jobs x $8,000,
which would increase the budget amendment from $32,000 to $272,000. The capital investment
for the initial payment was $32,000; he asked the expected capital investment for the new
venture. Mr. Hardin estimated roughly $5 million. Mr. Chase suggested that the agreement be
revised to add the words "up to" in front of $5 million.
Mr. Leiker asked if the agreement specifies at which local plant these jobs would be
created. Mr. Chase said the second "Whereas" references the Wichita Falls plant, but it could
specify the facility's address. Mr. Hardin added that this project is specific for the Wichita Falls
location. This is a laminates product line, which is not part of the Iowa Park operations.
Mr. Lilley said he supports this venture, and wants Cryovac's corporate headquarters to
look at Wichita Falls as its partner. Mr. Bundy asked when the decision would be made.
Mr. Hardin felt it would be made in the first quarter of 2012.
Mr. Lyne moved to recommend to the City Council the expenditure of 4A funds in the
sum of $272,000 as incentive for Cryovac to expand its packaging_ plant at its Wichita Falls
facility. Seconded by Mr. Bundy, the motion unanimously carried.
3. ECONOMIC DEVELOPMENT
Gary Shores said the economic development task force held its first meeting November 3.
The meeting recapped how economic development funding took place prior to 4A fund
availability. The next meeting is November 22, and he encouraged all Board members to attend.
Mr. Lilley asked who serves on the task force. Mr. Chase ran through the list of members.' He
believes it is a diverse enough group to get conversations going.
Mr. Chase said he hopes the task force defines economic development. It is likely
different for several folks, and more than one definition would be acceptable. The task is to
determine how to apportion available resources. He and Kevin Pearson need guidance about
incentives. The use of financial incentives has escalated in the last 24 months, and that "war
chest" is being depleted.
Darron Leiker asked if Mr. Chase knew of any resources that define what is common
practice for cities with respect to processes such as building permit waivers, streamlining of
building permit processes, and utility collections. Mr. Chase said he knew of nothing specific,
but will review various reports.
Mr. Bundy asked if it would be valuable to analyze in more detail the plants that have
had limited life in Wichita Falls. Mr. Chase said his analysis has revealed a common thread.
When a product that is being manufactured becomes a commodity, it is time to worry. The
question becomes what can a community do to ensure a product never becomes a commodity.
That is what the city is doing now — investing to bring in the best and the brightest, helping
companies take care of today's business while positioning themselves for the next generation.
' Gary Shores and Glenn Barham, Co- Chairs; Councilor Tim Ingle; Darron Leiker; Kevin Hugman; Munir
Lalani; Tim Chase; Michael Paris; Bo Stahler; Warren Ayres; Tommy McCulloch; Katherine McGregor; Kay
Yeager; George Cazanas; Woody Gossom; Paul Rodriguez; Harry Patterson; James Frank; Dusty Johnston, Dr.
Barbara Nemecek.
WFEDC — Minutes of November 10, 2011
Dick Bundy said he is not in favor of cold calls, but being more proactive in how the City
diversifies sounds like an idea worth pursuing. Mr. Chase said that cold calling takes tremendous
resources that are simply not available.
4. EXECUTIVE SESSION
Mr. Shores adjourned the meeting into executive session at 4:37 p.m. pursuant to TEXAS
GOVERNMENT CODE § §551.071, 551.072, and 551.087. He announced the meeting back into
regular session at 5:00 p.m. The subjects posted in the Notice of Meeting were deliberated, and
no action was taken on these items in executive session.
5. ADJOURN
The meeting adjourned at 5:07 p.m.
Gary S es, President