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4A Wichita Falls Economic Development Minutes - 05/18/2023 MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION May 18, 2023 Present: Leo Lane, President § WFEDC Members David Toogood, Vice President § Phyllis Cowling, Secretary-Treasurer § Darron Leiker § Brent Hillery § Paul Menzies,Assistant City Manager § City Administration Blake Jurecek, Assistant City Manager § Kinley Hegglund, City Attorney § Jessica Williams, CFO/Director of Finance § John Burrus, Director of Aviation, Traffic, & § Transportation § Blane Boswell, City Engineer § Chris Horgen,Public Information Officer § Paige Lessor, Executive Legal Assistant § Ron Kitchens, CEO § Wichita Falls Chamber of Commerce Lynn Walker, Writer § Times Record News 1. Call to Order Mr. Lane called the meeting to order at 2:30 p.m. 2. Consent Agenda a. Approval of Minutes (January 12, 2023) Ms. Cowling stated she had a suggested change to the minutes on page three of four in the third paragraph.Each"average city wages"reference should be changed to "average MSA wages." b. Financial Report Mr.Menzies discussed sales tax revenue with the Board. Sales tax is still running 3%ahead of this time last year. Meaning the Corporation is 3.5% ahead of budget. If this rate continues, sales tax revenue for the Corporation will be approximately $5.35 million at the end of the fiscal year. Mr. Menzies explained there is about $10 million free and clear for new projects. He explained that if the Board spent all funds currently committed to other projects, they would still have $10 million free and clear. Mr. Menzies addressed a change in the financial report. He explained that the amount for the first project listed under "open projects" was $1,050,000 budgeted for design and engineering for the Business Park Infrastructure Project. The report currently shows approximately$622,000 remaining.However,the project will be closed out soon. WFEDC Minutes 05/18/2023 Page 1 of 4 Mr.Menzies told the Board that Blane Boswell,City Engineer,would expand on the details of that project later in the meeting. Mr. Lane noted that the sales tax growth is still below the inflation rate and asked if those numbers directly correlate. Ms. Williams stated that they do not directly correlate. She explained that as inflation increases over time,people adjust their personal budget to those inflated rates, and there is less purchasing as time passes. Mr. Leiker moved to approve the minutes with Phyllis's amendments and the financial report. Seconded by Mr. Toogood,motion carried 4-0. 3. Consider and take action to award bid and contract for the Wichita Falls Business Park Hammon Road Improvements (Project B) to Bowles Construction Co. in the amount of$2,769,615.00 and authorize the Board President to execute all related documents. Mr. Boswell introduced himself and explained that this project is the last phase of construction at the business park.The first phase was the utility portion,in which some water lines were extended, additional water lines were looped in, and some sewer was upsized. He stated that the second phase of construction included the addition of the eastern half of Fisher Road and the widening of Midwestern Pkwy from Fisher Road to Hammond Road. The project is about 98% complete, and the contractor has until the end of the month to complete it. He said there would probably be a change order for Phase 2 of the project. The item before the Board today would award an approximately $2.7 million contract to widen Hammond Road from Midwestern Pkwy north to the U.S. Highway 287 frontage road.This project would include water line relocation from under the middle of the road to the edge of the right of way and drainage improvements. If this contract is awarded today, $800,000 would be left over out of the original $10 million. This $9.2 million total includes all three projects plus design. Ms. Williams said if there is a remaining balance in the bond fund, it is restricted for use toward other projects at the business park only. Mr. Toogood asked for the name of the incumbent contractor. Mr. Boswell answered that Bowles Construction is the contractor. Mr. Toogood wondered whether the City had been satisfied with their work. Mr. Boswell responded by telling him the company is local and they have done this type of project several times. 4. Discussion and possible direction related to a potential update to the City's Airport Master Plan and Air Service Needs Study(John Burrus, City of Wichita Falls). Mr.Burrus started by updating the Board on some ongoing projects.He discussed the snow removal system at Sheppard AFB. He said he is meeting with the FAA to discuss specifications the following Monday,and the project is progressing. There have been no hiccups. It is just taking a little bit longer. He hopes to take the project to Council sometime in June. After working with some of the companies, it appears that it could be up to a 600-day delivery period on this unit. Sheppard AFB has been briefed. With the funding of$133,000 provided by WFEDC, it appears that there will be approximately $30,000 left over. Sheppard AFB was able to provide some additional funds, so those funds can be used rather than money from the WFEDC. Mr. Burrus met with Sheppard AFB leadership in February, discussed the business park development, and looked at some off-site locations. They also talked about some potential sites within the fenced area of Sheppard AFB, including the old golf course. At that time, Sheppard asked for a formal study on those three sites so they could have something objective to present to WFEDC Minutes 05/18/2023 Page 2 of 4 their leadership in San Antonio and at the Pentagon. In March,Mr. Burros reached out to the FAA about this project, and they asked if the City would consider updating its Master Plan as a part of the analysis. It has been 15 years since the Master Plan was last updated. The FAA approved the funds in early April, and they are willing to pay 90% of the cost, which is $760,680. The Master Plan will include evaluations of up to three locations near Sheppard AFB for the business park development, including a phase one environmental analysis of each site. They will also explore the Military Airport Program funding to build business park infrastructure. Funding for taxiways and aprons is already FAA-eligible. However, the Military Airport Program is needed to fund things like hangar and fuel farm reconstruction or expansion. The FAA would like an aeronautical survey included as well. This survey will consist of all runways at Sheppard AFB. Additionally, the survey will help the City to preserve Sheppard AFB's and Regional Airport's airspace. It will also allow us to look at additional navigational aids coming into the airport, which the FAA deems a critical safety component for airport needs. Although the City already has ordinances in place that protect the airspace,this will formally map it out and provide a tool to analyze future impacts as well. Finally,the Master Plan would also include an air service study which could be used to attract new airlines to the airport. The last study was done in 2015. Mr. Burrus said he would be happy to answer any questions. Mr. Lane asked Mr. Burrus to explain the vision for this project, specifically what kind of businesses could come into this business park. Mr. Burrus said it would allow the Chamber to recruit repair and maintenance companies. A company had been interested for quite a while, but their funding fell through. Mr. Burrus stated that the Chamber is actively marketing the hangar right now. He said the business park could house any aeronautical company. and even freight companies. Additionally,this Master Plan would look at the business park's impact on Sheppard's air space and training schedules. Mr. Burrus said if the hangar can house it, he feels the market is still wide open. Mr. Kitchens then stated this would be similar to what Lawton has done by taking all the military contractors at Fort Sill and clustering them into one secure facility. Mr. Kitchens elaborated by saying that many of Sheppard's suppliers are servicing the base out of Fort Worth. The thought is that without the capacity to serve these companies, the City will never get them. But if the City could develop the business park, the Chamber could target the current suppliers as well as the MROs and grow the aerospace industry. This idea has been discussed for ten years, but the City has not had the facilities to do it. Ms. Cowling asked why the terminal needed to be expanded. Mr.Burros replied that it was a minimal study component. It basically checks a box that says it was examined. When the facility was built,there were plans to expand the terminal. This study is just a review of those plans. The only project left to complete on the entire airfield is the general aviation apron, which is the old commercial apron. It will take some work to get a scope of work and estimated cost put together. However,currently,the airport can accommodate a second airline.The second jet bridge is already being used for charter aircraft. Mr. Burrus reiterated that looking into expanding the terminal is only an FAA requirement on a master plan. Ms. Cowling then asked if exploring the possibility of getting another air service or the air service requirements portion of the Master Plan was "a check the box" type requirement. Mr. Burros stated that it was not. The Board could choose to include that section or not, but the proposed price includes it. Mr. Kitchens explained to the Board that the Chamber encouraged the air service requirements in the Master Plan. He explained that this level of data is needed to make WFEDC Minutes 05/18/2023 Page 3 of 4 sales calls and presentations to airline companies. Mr. Leiker asked how long it would take to complete the Master Plan. Mr. Burrus said it should take approximately six months to complete. No other questions or comments were made. 5. Executive Session Mr. Lane adjourned the meeting into executive session at 2:47 p.m. pursuant to Texas Government Code §§ 551.087, 551.071.and 551.074. He announced the meeting back into regular session at 4:13 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 Wichita Falls Business Park Hammon Road Improvements (Project B) to Bowles Construction Co. Ms. Cowling moved to approve and award bid and contract for the Wichita Falls Business Park Hammon Road Improvements (Project B) to Bowles Construction Co. in the amount of no more than$2,769,615.00 and authorize the Board President to execute all related documents.After no further discussion or comments from the public and being seconded by Mr. Toogood, the motion carried 5-0. City's Airport Master Plan and Air Service Needs Study Mr. Leiker moved to proceed with the update to the City's Airport Master Plan and associated Air Service Needs Study as presented and approve the local match 10% funding not to exceed 76,000.00. After no further discussion or comments from the public and being seconded by Mr. Hillery, the motion carried 5-0. 5. Adjourned. The meeting adjourned at 4:17 p.m. Leo Lane, President WFEDC Minutes 05/18/2023 Page 4 of 4