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4A Wichita Falls Economic Development Minutes - 08/04/2003MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION Meeting of August 4, 2003 Present. Members: Gary Shores, President Bo Stahler, Vice - President Jim Berzina, Secretary- Treasurer Lou Rodriguez, Member Elected Officials: Bill Altman, Mayor Absent: Ray Clymer, Member City Staff: Matt Benoit, Assistant City Manager Linda Merrill, Recording Secretary BCI Staff: Tim Chase, President Todd McDaniel, Vice President of Economic Development Call To Order. President Gary Shores called the meeting to order at 4:08 p.m. II. Approval of Minutes — July 8, 2003 Tim Chase noted a needed correction to the minutes (sixth full paragraph on page 5), substituting "413" Board model of the police -fire project, instead of the 'AX model. The minutes were approved as corrected. III. Consider Fiscal Year 2003 -2004 Budget. Matt Benoit discussed with the Board the proposed 2003 -04 budget. He noted the proposed sales tax earnings represent a 1.69% increase over 2002's actual earnings. He stated it is customary in the budget process to take the year -to -date growth on top of two prior years' actual. Mr. Benoit did not budget interest earnings, although he said they could be included. Instead, the budget is based on cash balances. He argued there were a number of reasons not to include interest earnings, one being simply that it was not necessary to include that projection. Wichita Falls Economic Development Corporation August 4, 2003 Meeting Minutes Page 2 He highlighted the Board's expenditures to date: • the continuation of the $30,000 project specific professional fees (other professional fees are budgeted in the Business Park amount); and $115,000 for BCI services. Gary Shores asked for an update on the status of Wichita Clutch and Pratt Whitney. Mr. Chase stated that $300,000 was paid to Wichita Clutch for moving expenses. No other monies will be paid until Wichita Clutch has employees in place for six months, and the training has been completed. The $1.9 million is a very generous estimate; the costs may approach, but will not reach, this total. Pratt Whitney has not been able to meet their proposed schedule, although events are expected to occur (the closing of the San Diego facility and equipment investment in Wichita Falls). They are faced with downsizing in the aerospace industry. They anticipate finalizing the project by October 2003. Mr. Benoit continued with discussion on the budget, noting there are proposed and actual expenditures in the Business Park. The actual expenditures are those that have been spent to date; namely, the three land closings. The proposed expenditures include the costs for site clearance and Isaac Manning's fees. Mr. Chase interjected that the BCI is requesting a funding increase of $20,000. Of that total, $14,600 is as a result of Todd McDaniel being employed by the BCI for a year as of January 1; in addition, it includes a merit raise for Mr. McDaniel. In addition, the BCI is requesting a $3,400 increase in marketing, which would include direct mail pieces and working to increase the demographic data on the web. The final $2,000 of the $20,000 request would cover a general increase in expenses. He noted the actual cost of economic development to the BCI was $213,087. They have initiated a coding of their internal accounts to differentiate the Chamber side of the business from the economic development expenses. The 4A Board covers approximately 56% of the total cost of the economic development monies. The proposed $135,000 payment would represent 60.2% of the $224,000 budgeted for economic development in 2003. President Shores questioned why the BCI is requesting more money, in addition to the $35,000 granted to the BCI from the 4A Board at its last meeting. Mr. Chase noted that the $35,000 for the business park is reimbursement for those things directly attributable to the park. He observed that whether the business park had been created or not, other actions need to occur — the BCI needs to increase contacts with third -party allies, go to Dallas markets and national shows, and beef up the statistical data on the web. Wichita Falls Economic Development Corporation August 4, 2003 Meeting Minutes Page 3 Vice - President Stahler asked if Wichita Falls is in line with other markets regarding sales tax money given for Chamber of Commerce business. Mr. Chase noted that close to 400 communities have either 4A or 4B monies. The fiscal relationship between those boards and the Chamber of Commerce /BCI runs the gamut. San Antonio takes virtually no money for their economic development from the boards, but instead hold fundraisers to collect from the private sector. Other boards actually employ a staff and pay 100% of what the BCI is performing here in Wichita Falls. He knows of no market trend one way or the other. Mr. McDaniel interjected that every community is different, but offered to perform research on the topic. Vice - President Stahler asked for confirmation that if the $135,000 request is granted, the BCI would not ask for additional monies for the foreseeable future. Mr. Chase noted that the request is mainly due to Mr. McDaniel's addition to the retirement system and payroll taxes. Additional monies may be needed in the future should the BCI take on other activities. Lou Rodriguez questioned whether the BCI staff's salaries are competitive. Mr. Chase stated they are in the ballpark. The BCI's philosophy has always been to be lean in number and high on talent. They find experienced personnel. Currently, the BCI has 4.5 employees. Abilene has 14, and receives $800,000 to run their Chamber and economic development activities. He believes Wichita Falls is getting a good deal for the $135,000. Mr. Stahler moved to approve the budget; Mr. Rodriguez seconded the motion, which unanimously passed. Mr. Shores noted that, if the Board chooses to allow the increase in the BCI funding, an amendment to the budget should be approved. Mr. Stahler stated he amended his motion to reflect the additional $20,000 to the BCI. This amended motion was approved by Jim Berzina, and unanimously approved. IV. Consider Election of Officers Mr. Stahler nominated Gary Shores as president, Mr. Rodriguez seconded the motion. Then, Mr. Rodriguez moved to retain current slate (Gary Shores, President; Bo Stahler, Vice - President; Jim Berzina, Secretary- Treasurer). Mr. Stahler revised his motion to retain the current slate, and the motion was unanimously approved. President Shores noted this would be his last year of service as president due to business concerns, and suggested that the election of officers should feature a rotation of officers. V. Update on Business Park Activities Mr. Chase stated the purchase of two of the three properties has been accomplished; only the Bratten property remains to be closed, and it is simply a matter of getting everyone to execute the documents. There are no issues; the check is cut Wichita Falls Economic Development Corporation August 4, 2003 Meeting Minutes Page 4 and in escrow. Mr. Shores questioned whether that is reflected in the budget. Mr. Benoit stated it was included. Mr. Chase continued, stating the cost to acquire the land was 5% below the estimated closing costs. Doc Anderson charged only two percent on two of the three parcels, while Mr. Chase had estimated four percent. Mr. Benoit stated the process of getting rid of the debris is being undertaken. He anticipates a controlled burn, which the fire department may be able to utilize for training purposes. He has written a confirmation letter of this process to the Texas Commission on Environmental Quality. The project will not be onerous. He is soliciting estimates from contractors in a week or so. Mr. Shores asked if he was contemplating a controlled burn on the whole acreage. Mr. Benoit replied he had considered only 105 acres, to give potential developers something nice to look at, but he will look into the idea of the entire acreage. Mr. Berzina asked if there is a sharecropper deal in the works. Mr. McDaniel stated he had spoken with Clarence Klein, who has dealings with Scaling Ranch in Henrietta. Mr. Klein comes highly recommended. Mr. McDaniel noted they are considering a deal wherein whatever proceeds are generated from the crop are split 50/50 between the property owner and the lessee. He asked the Board if this was a standard deal. Mr. Shores noted deals for such projects are quite varied. He also recommended that Mr. McDaniel talk with Jessie Flick. Mr. Berzina suggested that perhaps whoever plants the wheat crop could be given a deal to take the entire profits for the first year, provided they take on the expense of clearing the land. Mr. Stahler asked about the attributes of mile versus wheat. Mr. Shores stated milo needs more rain. Mr. McDaniel stated he had researched the costs of fencing by making telephone inquiries. The costs range from $1.50 to $3.00 per linear foot. Mr. Shores noted the cost in the Panhandle is $1,500 per mile. Mr. McDaniel noted a new gate is necessary where Fisher Road dead ends. Mr. Shores suggested contacting the neighbors to see if they will pay half the cost of the new fencing. Mr. Chase noted that Bratten is the neighbor, and he does not think they would be interested. He noted there is a lease on the Stepp property for cattle grazing. He asked if the Board would want this lease to continue, if wheat will be planted. Mr. Berzina asked if that lease will come to the City now. Mr. Chase stated the cattle grazing lease expires in October, and it could be renegotiated or even terminated. Mr. Shores stated it would Wichita Falls Economic Development Corporation August 4, 2003 Meeting Minutes Page 5 depend on how many cattle are involved, but it would probably be best not to continue this lease. He then suggested staff contact the Vernon agricultural extension agent, who is an expert at controlled burns. Mr. McDaniel noted he is due to receive bids today for the initial marketing materials. Mr. Chase stated the request for proposal was sent to local BCI members. Graphics II and Bankhead /Jackson have each submitted a bid. Mr. Chase stated that $10,000 was budgeted for print production and design. Of that sum, $6,000 was allotted for design. Mr. McDaniel noted the request for proposals asked for a logo design. He stated that if the Board would like to be involved in that decision - making process, they can certainly be included. Mr. Shores noted he would like to see the design before any company is given the green light to proceed. Mr. McDaniel stated the bids are coming in at $3,00 to $3,795. Mr. Berzina questioned whether there is no official bid opening date; rather, the bids are simply being opened as they come in. Mr. McDaniel replied they are being mailed or hand delivered. He noted that in the master plan, the decision was made that "WFBP" would be the brand for the business park. He anticipates the designers would include that into a logo. Mr. Chase stated they will bring to the Board conceptual ideas from those who submit responses to the request for proposal. Mr. McDaniel stated intends to attend the North Texas Commercial Association of Realtors' annual expo in Dallas on September 4. The booth will be advertised as the Wichita Falls Business Park, and it is located immediately next to First Industrial, the country's largest provider of diversified industrial real estate. This will be a good opportunity to get exposure. Mr. Chase noted that part of the bid includes updating the business park website with the graphic design. Mr. Stahler asked how much of this creativity will they be expected to deliver prior to selection. Mr. McDaniel noted the award of bid will go to not only the lowest bidder, but to the one most able to perform the work. Mayor Altman noted the main thing being hired is the creativity. Mr. Stahler reiterated his concern, asking if the companies could be asked to present their creation based upon the request for proposal. Mr. McDaniel stated he could certainly ask for the design company's concept. Mr. Chase then asked Mr. Benoit to discuss the hiring of an engineering company. Mr. Benoit stated Public Works Director Scott Taylor had sent out a Request for Qualifications to three firms, two of which responded. He is in the process of Wichita Falls Economic Development Corporation August 4, 2003 Meeting Minutes Page 6 preliminary acceptance and negotiating a price for the scope. The Council will take action on this at their August 19 meeting. Mr. Chase then noted Isaac Manning's contract would be executed after the third parcel had been purchased. Mr. Shores asked if that contract could be delayed until after the land is cleared. Mr. Chase stated it could, but he would like Mr. Manning's input on some design layout and platting, as well as input with regard to the conceptual logo and marketing. Besides, Mr. Chase noted, he does not know when the clearing of the land will occur. Mr. Shores noted it would need to be cleared by September 1 if the intent is to have wheat on it in the spring. Mr. Benoit stated that is not unreasonable; there is no formal bid process that needs to be followed. The only barrier is getting the one ultimately hired on the job quickly, as it is evident these are busy folks. Mr. McDaniel assured the Board he will ask those from whom bids are received to provide a concept before any final decision is made. V. Adjourn. There being no further business, the meeting adjourned at 4:55 p.m. Linda Merrill, Recording Secretary teary ores, Kresident