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4A Wichita Falls Economic Development Minutes - 12/09/2010MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION December 9, 2010 PRESENT: Gary Shores, President § Members Dick Bundy, Vice President/Sec.- Treasurer § Dave Lilley § Lanham Lyne § Gary McLendon § Linda Ammons Darron Leiker, City Manager Kevin Hugman, Asst. City Manager Miles Risley, City Attorney Tim Chase, President Kevin Pearson, Vice President Ralph Rossdeutscher, President 1. CALL TO ORDER § Council Liaison § City Staff § Chamber of Commerce & Industry § Phoenix Holdings, LLC Chairman Gary Shores called the meeting to order at 5:00 p.m. 2. REAL PROPERTY INTERESTS AT 8600 CENTRAL FREEWAY NORTH Discussion ensued for the subordination of WFEDC liens on 8600 Central Freeway North. to a $4.920 million dollar senior lien in favor of First Bank to secure a loan to be extended by said bank to Phoenix Holdings, LLC. Mr. Ralph Rossdeutscher, President of Phoenix Holdings, LLC, addressed the board. He indicated Phoenix Holdings had recently undergone personnel changes and was now instituting new processes to ensure that its suppliers would be paid in a timely manner. He also indicated the company has even hired an employee whose primary job is communications with groups such as his suppliers. The company is now in the process of ramping up production and filling orders from several large retailers. Miles Risley addressed the board and indicated that Phoenix Holdings, LLC, was requesting the subordination of WFEDC loans of $5.5 million and $1 million to senior loans from First Bank in the amount of $4.920 million. This would increase the amount of senior debt secured by 8600 Central Freeway North from approximately $3.8 million to $4.920 million. Mr. H: \_legal \4A & 4B \4A Corp\Minutes\2010 \12.9.10 \12.9.10.doc WF`E.nC = hnutes of December 9, 2010 2 Risley indicated that execution of agreements to subordinate this debt would be within the discretion of the WFEDC President, but that the President wanted the opinion of the Board on this issue. Mr. Lyne moved to authorize the subordination of the WFEDC loans to First Bank's debt. This motion was seconded by Mr. Bundy. The motion carried unanimously. 3. EXECUTIVE SESSION President Shores adjourned the meeting into executive session at 5:32 p.m. pursuant to TEXAS GOVERNMENT CODE § §551.071, 551.072, and 551.087. He announced the meeting back into regular session at 5:53 p.m. He noted that the subjects posted in the Notice of Meeting were deliberated, and no action was taken on these items in executive session. 4. ADJOURN The meeting adjourned at 5:54 p.m. t -��c�c P-�A)nr) 7 v cE -P 511