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4A Wichita Falls Economic Development Minutes - 12/28/2009MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION PRESENT: Gary Shores, President Dick Bundy Lanham Lyne Gary McLendon Dave Lilley Glenn Barham, Councilor At large Michael Smith, Councilor District 1 Jim Ginnings, Councilor District 4 Charles Elmore, Councilor District 5 Darron Leiker, City Manager Miles Risley, City Attorney Lydia Ozuna, City Clerk Tim Chase, President Kevin Pearson, Vice President 1. CALL TO ORDER December 28, 2009 § Members § Council § Council Liaison § City Staff § Chamber of Commerce & Industry President Gary Shores called the meeting to order at 3:00 p.m. 2. APPROVAL OF MINUTES (DECEMBER 17, 2009) Mr. Dick Bundy moved seconded by Mr. Gary McClendon, that the minutes be approved with correction to Mr. Shores' position on the 4A Board from Chairman to President. Motion carried unanimously. Presentations were made on the following projects. Bedding Manufacturer Project: Mr. Ralph Rossdeutscher, President Natura World Inc, Cambridge, Ontario, Canada, provided detailed information on his company, its products, and future plans. Sharp Iron Control, LLC Project: Mr. James Frank and Mr. John Bridgeman, Sharp Iron Control, LLC partners, provided detailed information on their company and plans. r MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION PRESENT: Gary Shores, President Dick Bundy Lanham Lyne Gary McLendon Dave Lilley Glenn Barham, Councilor At large Michael Smith, Councilor District 1 Jim Ginnings, Councilor District 4 Charles Elmore, Councilor District 5 Darron Leiker, City Manager Miles Risley, City Attorney Lydia Ozuna, City Clerk Tim Chase, President Kevin Pearson, Vice President 1. CALL TO ORDER December 28, 2009 § Members § Council § Council Liaison § City Staff § Chamber of Commerce & Industry President Gary Shores called the meeting to order at 3:00 p.m. 2. APPROVAL OF MINUTES (DECEMBER 17, 2009) Mr. Dick Bundy moved seconded by Mr. Gary McClendon, that the minutes be approved with correction to Mr. Shores' position on the 4A Board from Chairman to President. Motion carried unanimously. Presentations were made on the following projects. Bedding Manufacturer Project: Mr. Ralph Rossdeutscher, President Natura World Inc, Cambridge, Ontario, Canada, provided detailed information on his company, its products, and future plans. Sharp Iron Control, LLC Project: Mr. James Frank and Mr. John Bridgeman, Sharp Iron Control, LLC partners, provided detailed information on their company and plans. = Minutes of December 28, 2009 (Note: The Board moved directly to Item 3 after presentations on the projects.) 3. EXECUTIVE SESSIONS President Shores adjourned the meeting into executive session at 4:05 p.m., pursuant to TEXAS GOVERNMENT CODE sections 551.071, 551.072, and 551.087. President Shores reconvened the meeting into regular session at 5:05 p.m. (Note: The Board resumed the regular agenda format.) 4. BEDDING MANUFACTURER PROJECT Proposed incentives for the Bedding Manufacturer Project are in the amount of up to $9,900,000 of costs for land, buildings, equipment and other expenditures for the creation of primary jobs in the bedding research, manufacturing and distributing industry in Wichita Falls, subject to receipt of the secured personal obligation of Mr. Rossdeutscher, reviewed by an independent accounting firm to the satisfaction of the President of the Wichita Falls Economic Development Corporation and the City of Wichita Falls Mayor - -- including making the attached Findings and Allocations and Authorizations relating to said project, authorizing execution of a performance agreement between the Wichita Falls Economic Development Corporation and said entity, and authorizing the President of the Wichita Falls Economic Development Corporation to execute related notes, leases, investment agreements, and other documents. Mr. Dave Lilley moved that the 4A Board recommend to the City Council the expenditure of 4A funds in the amount up to $9,900,000 of costs for land, buildings, equipment and other expenditures for the creation of primary jobs in the bedding research, manufacturing and distributing industry in Wichita Falls, subject to receipt of the secured personal obligation of Mr. Rossdeutscher, reviewed by an independent accounting firm to the satisfaction of the President of the Wichita Falls Economic Development Corporation and the City of Wichita Falls Mayor, in conjunction with the Bedding Manufacturer Project. Motion seconded by Mr. Gary McClendon and carried unanimously. 5. SHARP IRON CONTROL, LLC PROJECT Proposed incentives for Sharp Iron Control or other entity in the electrical control business (and related entities) in the amount of up to $600,000 of costs for expenditures for the creation of primary jobs in the custom electrical controls industry at 2450 Burkburnett Road or other location in Wichita Falls - -- including making the attached Findings and Allocations and Authorizations relating to said project, authorizing execution of a performance agreement between the Wichita Falls Economic Development Corporation and said entity, and authorizing the President of the Wichita Falls Economic Development Corporation to execute related notes, leases, investment agreements, and other documents. `NFEDC - Minutes of December 28, 2009 Mr. Dick Bundy moved, seconded by Mr. Dave Lilley, that the 4A Board recommend to the City Council the expenditure of 4A funds in the amount of up to $600,000 of "costs" for expenditures for the creation of primaa jobs in the custom electrical controls industry at 2450 Burkburnett Road or other location in Wichita Falls in conjunction with the Sharp Iron Control, LLC Project. Motion carried unanimously. 6. ADJOURN The meeting adjourned at 5:14 p.m. Gary Wores, P sident WFEDC — Minutes of December 28, 2009 Findings: The proposed Projects are found by the Board of Directors to be in full compliance with the Bylaws and Articles of Incorporation of the Wichita Falls Economic Development Corporation and the Texas Development Corporation Act of 1979 and Chapters 501 through 504 of the Texas Local Government Code and are land, buildings, equipment, facilities, expenditures, targeted infrastructure, and improvements (or "costs" thereof) that: (1) are for the creation or retention of primary jobs and are required or suitable for the development, retention, or expansion of: (A) manufacturing and industrial facilities; (B) research and development facilities; (C) military facilities, including closed or realigned military bases; (D) transportation facilities, including airports, ports, mass commuting facilities, and parking facilities; (E) sewage or solid waste disposal facilities; (F) recycling facilities; (G) air or water pollution control facilities; (H) facilities for furnishing water to the public; (I) distribution centers; (J) small warehouse facilities capable of serving as decentralized storage and distribution centers; (K) primary job training facilities for use by institutions of higher education; or (L) regional or national corporate headquarters facilities. or (2) are job training required or suitable for the promotion of development and expansion of business enterprises and other enterprises described by this subtitle, as provided by Texas Local Gov't Code § 501.162 or (3) are promotional expenditures that advertise and publicize the City of Wichita Falls for the purpose of developing new and expanded business enterprises Allocations and Authorizations: With respect to the approved Project, the Board of Directors: 1. allocates the funds authorized herein, which shall constitute notice and publication of the Project for purposes of applicable notice provisions of the Texas Development Corporation Act of 1979, 2. authorizes the President of this corporation to execute all documents necessary to expend the funds allocated pursuant hereto, including, but not limited to, a performance agreement with the business enterprise funded pursuant to this project, in a form to be approved by the City Attorney of the City of Wichita Falls and/or attorney for this corporation, containing, at a minimum: (1) a schedule of additional payroll or jobs to be created or retained; (2) the capital investment to be made by the business enterprise; (3) the terms under which repayment must be made by the business enterprise to the Section 4A corporation should the business fail to meet the performance requirements specified in the agreement; and (4) the terms provided in any attached performance agreement and other terms as approved by the City Attorney, including modifications to said attached agreement. 3. appoints the City of Wichita Falls as agent for the Wichita Falls Economic Development Corporation to expend and administer funds on behalf of this corporation as requested by the President of the corporation, and authorizes the City Manager and Finance Director of the City of Wichita Falls to expend and administer the funds allocated herein. 4. amends the budget of this fiscal year to provide for this expenditure, subject to approval by the City Council of Wichita Falls. H:1_Iega144A & 4BWA Corp\ Minutes\ 2009\ 12 .28.09\Minutes_4a_12.28.09.doc