4A Wichita Falls Economic Development Minutes - 09/16/2002MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
Meeting of September 16, 2002
Present:
Members: Gary Shores, President
Bo Stahler, Vice - President
Jim Berzina, Secretary- Treasurer
Lou Rodriguez, Member
City Staff: Matt Benoit, Assistant City Manager
Linda Merrill, Recording Secretary
BCI Staff: Tim Chase, President
Todd McDaniel
Absent:
Ray Clymer, Member
I. Call to Order.
President Gary Shores called the meeting to order at 5:00 p.m.
II. Approval of Minutes (July 30, 2002)
Bo Stahler moved, seconded by Lou Rodriguez, that the minutes be
approved. The motion carried.
III. Receive Financial Report
Assistant City Manager Matt Benoit presented the financial report to the
Corporation. He reported that revenues for September total $200,771, up eight -
tenths of 1% over September of last year. Interest earnings are half the estimate, but
the City is still collecting $16,000 per month.
On the expenditure side, the BCI contract is paid for this fiscal year. Vernon
College has been paid twice for its aviation program (one $20,000 payment, and a
second payment of $216,500). There is $141,000 still due on that agreement.
There is an unreserved fund balance of $4.28 million.
Wichita Falls Economic Development Corporation September 16, 2002 Meeting Minutes Page 2
A total of approximately $4.4 million, proposed for Cingular Wireless, is
encumbered through December 31, 2002. Tim Chase added that this encumbrance
expires unless Cingular indicates they are really interested (by making a written
commitment) in placing an additional call center in Wichita Falls. At this point, no
indication has been received from Cingular regarding its intended actions.
President Shores questioned how long the rental by Covercraft would
continue. Mr. Chase stated indefinitely, although Covercraft's aspiration is to buy the
building they currently lease in the first or second quarter of next year.
Bo Stahler moved, seconded by Jim Berzina, that the financial report be
approved as presented. The motion carried.
IV. Consider a presentation regarding a community -wide effort to
apply to the Texas Veterans' Land Board to have a Veterans' Home in
Wichita Falls
Mr. Chase stated in 1996 -97, a combination of veterans and the Veterans'
Land Board paid for four veterans' homes in the state of Texas. These facilities are
for veterans who would otherwise be in nursing homes, as well as for their spouses if
they qualify.
Wichita Falls was one of 12 cities that applied to be a location for the
placement of one of these homes. They were ultimately constructed in Temple, Big
Spring, Bonham, and Floresville. A subsequent proposal misfired 24 months ago due
to lack of federal government funding. Now that funds are secured, in addition to two
homes currently being planned for construction, an additional five homes are
envisioned.
Mr. Chase continued, stating the federal government funds 65% of the
construction, and the state the remaining 35 %. Operating costs are funded by the
veterans' incomes.
He also noted that this application process will be a great deal more
competitive than the last. At a pre - application meeting, about 40 communities were
represented, of which at least one -half are expected to make a proposal. Among
those communities represented were Marshall, El Paso and Beaumont.
Mr. Chase presented information from an Executive Summary prepared for
this project. The facility would be a 75,000 square foot, 150 -bed skilled nursing
home, inclusive of an Alzheimer's Unit. At full operations, up to 150 individuals would
be employed, with an estimated annual payroll of $3 million. An estimated capital
investment would be made in the area of $9 million.
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In order to submit an application, Mr. Chase stated, the Land Board states
that 12 acres of developed land, with water, sewer, road, gas and electric services to
the property line must be in place. Wichita County has proposed to donate land off of
Armory Road. The City would then be required to place the sewer and water lines, as
well as extend Reddy Drive to Armory Road. The estimated cost for those
improvements is $232,480.
Mr. Berzina stated that County Judge Woody Gossom envisioned another
road that would come in from the back to the parking lot, which would then connect
with the county cemetery. Mr. Chase stated that engineers prefer the extension of
Reddy Drive due to storm water issues, but that is a scenario that can be resolved at
a later time.
Todd McDaniel stated that Wichita County has also proposed to construct
county and state veterans' service offices in the area, so that there will be "one -stop
shopping" for veterans' services. Mr. Berzina said Wichita County has proposed to
allocate up to $100,000 toward that construction.
Mr. Stahler questioned whether the costs for this project assumed by the City
and County have been compiled. Mr. Chase stated there was debate about trying to
assemble the costs. But as this is a prerequisite to even being considered for this
project, it was decided this is a "nut we swallow" that appears as a "zero" to the Land
Board. He did note that the cost for streets and drainage, water, sewer, and gas and
electric totals $232,480.
The deadline for submission is October 1. The economic impact of this
project, conservatively, is $7.6 million. It has taken a large group to put forth this
effort, including the City, County, Dennis Wilde at COG, and numerous veterans'
associations.
Mr. Stahler questioned the ability to find the people. Mr. Chase stated they
expect to show that in an 11- county area, a lot of folks use Wichita Falls for their
health care services.
Mr. Stahler clarified that his question did not address the ability to find
qualified veterans, but rather, qualified employees. As a board member for the
Presbyterian Manor, he knows first -hand the difficulty of finding an adequate number
of employees to work at the Manor, particularly in the Alzheimer's Unit. Mr. Chase
stated that Rolling Meadows had reported a similar problem, and he noted that
Bonham's facility is under - utilized due to a lack of workforce.
He further stated he has gone to MSU, Vernon College, and United Regional
Health Care, and a study has been performed on the availability of LVN's, practical
nurses, aides, etc. There is a certificate program available, and it will be simply a
Wichita Falls Economic Development Corporation September 16, 2002 Meeting Minutes Page 4
function of supply and demand. Mr. Rodriguez pointed out that if the economy did
not improve, the quota for necessary employees might be readily filled.
Mr. Chase added that the Land Board is also requiring in Phase 1 an
environmental study, soil boring samples, endangered species and wetlands
information, as well as a traffic count accessing the property. Mr. Berzina relayed
that Judge Gossom said there would not be any adverse findings. Mr. Chase stated
that simply checking existing data takes money and time, and money is already tied
up in the site assessment and soil boring. However, it will be money well spent, even
if the City does not get in on this next round of homes. As the Land Board envisions
seven such homes across the state, the hoops jumped through now won't have to be
jumped through again when processing future applications.
Mr. Stahler asked what would be the average payroll for jobs. Mr. Chase
replied $24,400. Mr. Stahler then asked whether the higher -paid employees would
come in to Wichita Falls to run the center. Mr. Chase stated that, in the other four
homes, the administrative jobs are currently contracted.
Mr. Berzina asked if a formula is applied per job, what is the resultant dollar
figure. Mr. Chase replied that it would be $1,500 per job created, in addition to the
site costs. If we max out at the 150 jobs, it would total $33,166 per job created.
Mr. Rodriguez stated that he felt it was worth trying, as it is not an exorbitant
amount of money. Mr. Stahler moved that the Corporation recommend to the
City Council the use of Section 4(a) sales tax proceeds as a portion of the
incentives package used to facilitate the location of a Texas State Veterans'
Home in Wichita Falls, Texas.
Mr. Chase quoted from the Memorandum of Understanding, stating that the
WFEDC will pay up to $250,000 for off -site development costs relating to water,
sewer, roads, and natural gas to make the proposed Texas State Veterans' Home
site "development ready."
In addition, no less than 12 months from the date the Home begins
operations, evidence will be presented to the WFEDC of the creation of a minimum
of 100 new full -time jobs. At that time, a payment of $1,500 per new full -time job
created will be made to the Veteran's Land Board. This "Cash for Jobs Incentive"
shall not exceed $225,000.
Mr. Rodriguez seconded Mr. Stahler's motion, which carried.
Mr. Chase stated that although this will be a joint application by Wichita
County and the City of Wichita Falls, the RFP demands a lead agency, which will be
Wichita County.
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Mr. Chase stated that although this will be a joint application by Wichita
County and the City of Wichita Falls, the RFP demands a lead agency, which will be
Wichita County.
V. Adjourn
There being no further business, the meeting adjourned at 5:44 p.m.
i
Linda Merrill, Recording Secretary ary ores, President