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4A Wichita Falls Economic Development Minutes - 06/29/2010,� V, t , MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION June 29, 2010 Present: Gary Shores, President Dick Bundy Lanham Lyne Dave Lilley Glenn Barham, Mayor Linda Ammons, Liaison Miles Risley, City Attorney Kevin Hugman, Assistant City Manager Jim Dockery, CFO /Assistant City Manager Linda Merrill, Recording Secretary Tim Chase, President Kevin Pearson, Vice President Randy Funston Absent: Gary McLendon 1. CALL TO ORDER § Members § City Council § City Staff § Chamber of Commerce & Industry § Excalibur Paint § Member President Gary Shores called the meeting to order at 4:00 p.m. 2. APPROVAL OF MINUTES (4/7/10 Lanham Lyne moved, seconded by Dick Bundy, to approve the minutes. The motion carried. 3. REPORT ON ASIA MARKETING STRATEGY Tim Chase gave an informal report on his recent trip to Asia. He was able to spend a week with Governor Rick Perry and other Texas officials, which he found invaluable. He feels it is essential that Texas have an office in Asia. Shanghai is a remarkable city that has grown phenomenally in the past 20 years. Eighty percent of the businesses are government- owned. Profits are invested back into the city. He will present a more formal report on his trip at a later time. Gary Shores introduced Randy Funston, of Excalibur Paint. Mr. Funston has been in business 10 years, and working toward development of a waterborne technology. The EPA has become increasingly more strict regarding Volatile Organic Compounds (VOC) and Hazardous Air Pollutants (HAP). He has produced a waterborne enamel, which he sold to Weatherford International's Fishing Tool Division. He continues to work toward high -end products for automotive -grade finishes, corrosion resistance, and long -time gloss retention. About two years ago, his company developed a product that contains less than a quarter pound per gallon of solvent. He filed a patent (which is still pending) in May 2009. The market for this product is huge, involving original equipment manufacturers, tractors, marine, aircraft, oil field, highways and bridges. Excalibur recently received global approval from Weatherford International for an offshore corrosion resistant system. Last week, the Texas Department of Transportation approved Excalibur's system of primer and top coat. Excalibur has passed 90% of the Naval Air Systems Command's military specifications (mil specs). It failed at testing above 250° Fahrenheit, and minus 60° Fahrenheit, which would affect only aircraft. They can remedy those deficiencies. Once the product has passed the mil specs, he doubts other aircraft companies would require testing. He is in conversations with Cessna and Beech. President Shores asked if his current facility can handle the projected growth. Mr. Funston replied that if he stays in Wichita Falls, he would have to move to a larger building, or build on his four -acre tract behind his current facility. The other city in competition for his company has a building it would finish out for him. Mr. Pearson asked him of his immediate need for funds. Mr. Funston said it is important to stay ahead of everyone else, and more research and development is needed. The next hit from the EPA will be against isocyanate. There is not currently a replacement for it in high - performance systems. He has been working on an isocyanate cross - linked with an epoxy. Approximately 70 % -75% of such research has been accomplished, but he is one to two years away from full development. He needs to hire a minimum of four to five sales people, one or two technical employees, and a sales /general manager. If his company corners any of the affected market segments, he could hire up to 125 people. He currently employs seven to nine persons. Lanham Lyne questioned the delay in receiving the patent. Mr. Funston said he has had to answer questions regarding similarities with other pending patents. There is a patent pending for a waterborne polyurethane coating for wood finishing. It has none of the properties of his patent, but he is still questioned about it. Mr. Lyne heard that PPG has filed a similar patent application. Mr. Funston said there are items covered in his patent that are not covered in PPG's application. If two entities file within a year of each other, they could both possibly be approved. But it is a huge market, and capturing 1% of it would be tremendous. He is confident he will get the patent, but is not dependent upon it for success. It is most important to be the first one to market. President Shores asked if he would anticipate approaching the 4A Board for more funding at a later date if this project is successful. Mr. Funston said he would be in a position to cash flow it himself. He has fairly good margins in this product, and enjoys excellent banking relationships. President Shores thanked Mr. Funston for his presentation. 4. EXECUTIVE SESSION President Shores adjourned the meeting into executive session at 4:29 p.m. pursuant to TEXAS GOVERNMENT CODE § §551.071, 551.072, and 551.087.1 He announced the meeting back into regular session at 5:37 p.m. He noted that the subjects described in Footnote 1 were deliberated, and no action was taken on these subjects in executive session. 7. ADJOURN The meeting was adjourned at 5:37 p.m. GARY HORES, PRESIDENT Executive Session in accordance with Texas Government Code §551.071, consultation with attorney on matter involving pending or contemplated litigation or other matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the Texas Open Meetings Act (including, but not limited to, legal issues related to potential projects for the development, retention, or expansion of clutch manufacturing, aircraft manufacturing, washing machine manufacturing, medical device refurbishment, teleservice operations, coating manufacturing & distribution, air conditioner assembly and manufacturing, heat exchanger assembly and manufacturing, gas compressor equipment manufacturing, latex -foam manufacturing, biodiesel manufacturing, and projects with other entities named in this agenda for creation and retention of primary jobs (as defined by Tex. Local Gov't Code § 501.002)). Executive Session in accordance with Texas Government Code §551.072, to deliberate the purchase, exchange, lease, or value of real property interests due to the fact that deliberation in an open meeting would have a detrimental effect on the position of the City in negotiations with a third party (including, but not limited to, the purchase and/or value of various real property interests to be used for the development, retention, or expansion of clutch manufacturing, aircraft manufacturing, washing machine manufacturing, medical device refurbishment, teleservice operations, coating manufacturing & distribution, air conditioner assembly and manufacturing, heat exchanger assembly and manufacturing, gas compressor equipment manufacturing, latex - foam manufacturing, biodiesel manufacturing, and projects with other entities named in this agenda for creation and retention of primary jobs (as defined by Tex. Local Gov't Code § 501.002)). Executive Session in accordance with Texas Government Code §551.087, to discuss or deliberate the offer of a financial or other incentive to a business prospect that the WFEDC seeks to have, locate, stay, or expand in or near the territory of the City of Wichita Falls and with which the WFEDC is conducting economic development negotiations (including, but not limited to potential projects for the development, retention, or expansion of clutch manufacturing, aircraft manufacturing, washing machine manufacturing, medical device refurbishment, teleservice operations, coating manufacturing & distribution, air conditioner assembly and manufacturing, heat exchanger assembly and manufacturing, gas compressor equipment manufacturing, latex -foam manufacturing, biodiesel manufacturing, and projects with other entities named in this agenda for creation and retention of primary jobs (as defined by Tex. Local Gov't Code § 501.002)).