Loading...
4A Wichita Falls Economic Development Minutes - 09/20/2007MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION SEPTEMBER 20, 2007 Present: RECEIVED IN Members: Gary Shores, President CITY CLERK'S OFFICE Bo Stahler, Vice President Date Dick Bundy Dave Lilley By _ Time Gary McLendon City Council: Lanham Lyne, Mayor Charles Elmore, Council Liaison City Staff: Matt Benoit, Assistant City Manager Bill Sullivan, City Attorney Linda Merrill, Recording Secretary BCI: Tim Chase, President — BCI Tom Whalen, Military Affairs Committee I. CALL TO ORDER The meeting was called to order at 1:00 p.m. President Gary Shores welcomed Gary McLendon as a new member of the 4A Board. II. APPROVAL OF MINUTES — JUNE 18, 2007 Dick Bundy moved, seconded by Gary McLendon, that the minutes be approved. The motion carried. III. CONSIDER APPROVAL OF AN OPERATING BUDGET FOR THE 2007 -2008 FISCAL YEAR President Shores delayed discussion of the budget until the entire Board was present (Bo Stahler and Dave Lilley had yet to arrive), and directed the Board's attention to Item VI, Development Guidelines for the Wichita Falls Business Park. (Discussion on this item occurred after Item IV) Mr. Benoit pointed out that the proposed 2007 -08 budget consists of total revenue projections of $4,182,904. Sales tax collections are projected to grow by 2.4% over the prior year's adopted budget. Revenues include Atco's monthly lease payments of $106,800. WFEDC — Minutes of September 20, 2007 2 Expenditures include the following: $198,158 for Atco's property taxes (Atco reimburses the 4A Board for its payment of this tax) $30,000 for professional fees $86,424 for Business Park maintenance $50,000 for the Sheppard Military Affairs Committee. Mr. Stahler asked that the budget be printed on two pages, so that a larger font size may be utilized. Mr. Benoit agreed to do so. Mr. Chase opined that the Board would probably not need to see the entire continuum of its finances— perhaps it would be satisfied to look only as far back as encumbrances. Mr. Shores asked about the Board's encumbrances; Mr. Benoit stated they totaled $2.7 Million. Mr. Shores asked why a request for funding of the marketing budget is not presented at this time. Mr. Chase stated that the regional marketing group (consisting of Burkburnett, Wichita County, Iowa Park, the Board of Commerce and Industry, and the 4A Board) met, and agreed to a certain scope of work. However, Burkburnett subsequently decided to focus on recruiting people, not businesses, as a result of what has happened at Fort Sill. Burkburnett will explain its decision at the next regional marketing group meeting. Mr. Shores noted that the Sheppard Military Affairs Committee's proposed budget reflects a $100,000 contribution, rather than the $50,000 authorized by the 4A Board. Mr. Benoit noted that the other $50,000 is from the 4B Board. Mr. Chase briefed the Board on a contract between the WFEDC and the BCI wherein the 4A Board would pay 100% of the salary of the Vice President of Economic Development (Kevin Pearson), and 40% of the salary of the President (Mr. Chase). The total request is for $156,353.61 (compared to last year's request of $152,000). The contract further outlines the BCI's economic development goals and objectives: • assist in the creation of new primary jobs through retention and expansion of new businesses • retention survey • workforce task force • regional marketing task force • communications to tell the BCI's story • website • third -party endorsements Mr. Chase affirmed that, once this contract is approved, the only outstanding budgetary item is marketing. Mr. Stahler moved, seconded by Mr. Bundy, for approval of the contract. The motion carried unanimously. Mr. Stahler observed that the BCI staff performs an amazing amount of work with limited resources. WFEDC — Minutes of September 20, 2007 3 IV. CONSIDER A QUOTE FOR THE ENTRANCE SIGN MONUMENT AT THE BUSINESS PARK Mr. Benoit noted that the entrance sign was originally included in the "landscape piece" of the Business Park development. The Board elected to pull it out. The project generated no responses through the City's bid process. James Frank was approached to design the sign. His quote of $33,500 to complete and install the monument is less than the Engineering Department's estimate of $40,000. Although he has no figures in the way of competition, Mr. Benoit feels that Mr. Frank's price is fair and reasonable. The price for the sign monument will not get less expensive, at any rate. He reminded the Board that it has $127,000 left unspent in a previous amendment for Phase One of the Business Park construction. Mr. Shores observed that the material used to construct the monument is the same as will be required for tenants of the Business Park, as specified in the newly - adopted Development Guidelines. Mr. Benoit concurred, and noted that the material used is the same as that used for the Falls Flyover. Mr. Stahler asked if the sign will have backlighting. It will not. Mr. Stahler moved, seconded by Mr. Bundy, that the sum of $33,500 be expended for construction and installation of the sign monument. The motion carried. The board then discussed item III. V. CONSIDER APPROVAL OF COVENANTS AND RESTRICTIONS FOR THE WICHITA FALLS BUSINESS PARK Mr. Shores suggested the Board review only the redlined changes, rather than the entire document. Mr. Tate noted the following changes: Page 6 — clarification of "swale" Page 7 — clarification at the end of Sec. 2.02 regarding zoning Pages 10 -11 — change to assessments due to City's financial requirements Pages 16 -17 — compliance with Open Meetings Act Page 18 — insurance coverage for the Board (Mr. Chase clarified that deliberation on this matter does not concern expense, but whether coverages in the policy matched the uniqueness of this situation.) Exhibit A — metes and bounds property description for the Business Park as a whole, to be furnished by Jim Biggs Mr. Shores asked City Attorney Bill Sullivan if he had reviewed the final draft of these documents. Mr. Sullivan stated that everything appears to be in order. He noted that Scott Taylor raised the question about the need for a non - annexation agreement to provide water and sewer services. Mr. Taylor added that the City is prohibited by resolution from providing services to commercial customers outside the City limits WFEDC — Minutes of September 20, 2007 4 without such an agreement. Mr. Chase stated there had been prior discussions about whether to put the entire park under a single non - annexation agreement, or to proceed on a case -by -case basis. He would prefer that it be done case -by -case. Mr. Benoit agreed, adding that it would allow for more flexibility to negotiate a development incentive agreement when the water and sewer rates are not locked in. Mr. Bundy moved, seconded by Mr. Stahler, that the Covenants and Restrictions be approved as presented. The motion carried unanimously. VI. CONSIDER APPROVAL OF WICHITA FALLS BUSINESS PARK BY -LAWS Mr. Tate noted that the first change to the Bylaws is to correct a typographical error on page 2. The second change is the designation of the number of directors. It was decided that the five 4A Board members would serve as the Association's initial directors. As land is sold, there are provisions in the Covenants and Restrictions to elect a Board of Directors from among those landowners. Page 3 clarifies the specifications for a quorum for a meeting of the Board of Directors. (There must be a majority of the Association members present; a quorum is then established from that number.) Page 5 concerns authorized agents, and the need to dovetail the requirements of the City and its financial situation. In addition, the office of treasurer was added. It was initially thought this process was on the fast track, so the Articles of Incorporation have been filed. However, Mr. Tate continued, in order to claim limitation of liability for directors, that limitation must by law be specified in the Articles of Incorporation. This will serve to limit liability to the maximum extent provided by this particular statute. Mr. Chase added there is no reason not to obtain directors and officers liability insurance. Mr. Shores agreed. Mr. Sullivan stated this corporation differs from the 4A Board. Mr. Tate concurred, adding that the 4A Board is a statutorily created corporation, while the Association was created voluntarily. Mr. Shores directed that insurance be pursued on behalf of the 4A Board and the Association. Mr. Stahler moved, seconded by Mr. Bundy, that the Bylaws as amended and presented be approved. The motion carried unanimously. VII. CONSIDER APPROVAL OF DEVELOPMENT GUIDELINES FOR THE WICHITA FALLS BUSINESS PARK Mr. Chase distributed an outline to illustrate the organizations that must be in place for the operation of the Business Park. The Covenants and Restrictions create the Association, regulate setbacks, and specify what can be in the Park. This document in effect replaces a zoning ordinance. The Development Guidelines regulate quality of image, including the materials used in building, landscaping, lighting, and signage. The 4A board will own the land, and the Wichita Falls Business Park Association will govern WFEDC — Minutes of September 20, 2007 5 how the land is used through a Development Review Board. The Development Review Board will consist of three members. Mr. Shores asked what changes were made. Mr. Chase noted that the setbacks identified on page 22 did not match those set out in the Covenants and Restrictions. The Guidelines were changed to correspond with the Covenants. To avoid having to amend the Guidelines each time the Americans with Disabilities Act is amended, the Guidelines shall comply with the "current" ADA laws. Mr. Bundy moved that the Board establish and put into use the Development Guidelines as published in today's packet. The motion, seconded by Mr. Stahler, carried unanimously. The board then discussed item IV. VIII. ADJOURN INTO EXECUTIVE SESSION, AS AUTHORIZED BY SECTION 551.072 OF THE TEXAS GOVERNMENT CODE Chairman Shores adjourned the meeting into executive session pursuant to Section 551.072 of the TEXAS GOVERNMENT CODE at 1:54 p.m. He announced the meeting back into open session at 2:27 p.m. IX. CONSIDER APPROVAL OF AN ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH OLD DOMINION FREIGHT LINE, INC. Mr. Bundy moved, seconded by Mr. Stahler, for approval of the economic development incentive agreement with Old Dominion Freight Line, Inc. Mr. Benoit noted that the Board has approved an expenditure of $60,320 to extend sewer service, adding that water service is already available. Mr. Shores noted that approval of this expenditure is subject to the real estate closing. Mr. Benoit questioned whether the utilities companies will perform engineering services for gas and electricity. Mr. Chase stated that he believes they will. The phone company has its engineers looking into it, and he will get with Oncor and Atmos. He had asked them to do it in advance, but they would not because the return on that investment was a fraction of the cost of installation. Mr. Benoit stated that he will not ask the Council yet, but rather, will wait until the real estate transaction is completed. Mr. Chase asked what would happen if the Council did not approve of this expenditure, but the real estate transaction has already occurred. Mr. Benoit replied that it is problematic at any time if the Council does not approve the project. That is the nature of any economic development incentive agreement this Board contemplates. Mr. Shores stated that it should be handled as all agreements have been in the past — subject to City Council approval. Mr. Chase stated that this element needs to be wrapped up so that it becomes the standard. The purchase agreement could state WFEDC — Minutes of September 20, 2007 6 that, upon closing, the City will guarantee its approval. Mr. Stahler replied that he does not think that can be done. Mr. Chase stated that the City could be party to a contract that states, upon closure, the City agrees to pay for sewer and water extension. Mr. Benoit replied that the City Council cannot be bound by a purchase agreement to spend money. Mr. Shores agreed, noting that any agreement entered into by the 4A Board has to be subject to City Council approval. Mr. Chase noted that in past agreements, the company has not invested a dime before the City Council has given final approval. In this particular case, the company would be investing $150,000. Mr. Shores stated the contract could allow for the return of the company's investment if the Council does not approve the expenditure. Mr. Sullivan questioned why this cannot go to the Council before the transaction is complete. Mr. Chase replied that he thinks it should. Mr. Benoit noted that it is still all contingent upon Council approval. Mr. Chase agreed, but noted that the approval could come prior to closing. Mr. Sullivan pointed out that the City Council would be prohibited from spending over $50,000 without going through the bid process. Mr. Chase replied that the contract could be broken apart. Mr. Taylor warned that the City's purchasing agent is adamant that contracts cannot be separated to circumvent the $50,000 limitation. Mr. Chase asked Mr. Sullivan if he was sure that the 4A Board could not encumber funds without following the purchasing policies dictated to the City by state law. Mr. Sullivan replied that, although there is not a specific answer to be found, public funds are being spent. It is the safest way to go. X. ADJOURN. The meeting was adjourned at 2:38 p.m. ary ShiVres, P esident