4A Wichita Falls Economic Development Minutes - 02/05/20011f ♦ �
Present.
RtcuvED IN
CITY CLERK'S OFFICE
Date
By fiY. Time
MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
Meeting of February 5, 2001
Members: Gary Shores, President
Ray Clymer, Vice President
Lou Rodriguez
City Staff: Jim Berzina, City Manager
Robert Powers, Assistant City Manager
Bill Sullivan, First Assistant City Attorney
Linda Merrill, Recording Secretary
Guests: Ron Mertens, BCI
Tim Chase, BCI
Leo Lane, Chairman, BCI
Pat Hogan, President, ABB Control
Absent.
Members: Ron Bullock, Secretary- Treasurer
Bo Stahler
I. Call to Order.
President Gary Shores called the meeting to order at 4:00 p.m.
II. Approval of Minutes (November 10, 2000).
Vice - President Ray Clymer moved the November 10, 2000 minutes be approved as
written. The motion was seconded by Lou Rodriguez, and unanimously approved.
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Wichita Falls Economic Development Corporation February 5, 2001 Meeting Minutes Page 2 of 4
III. Election of Officers.
Vice - President Clymer moved that the current slate of officers (Gary Shores, President;
Ray Clymer, Vice President; Ron Bullock, Secretary- Treasurer) be reelected to their respective
offices. Mr. Rodriguez seconded the motion, and it was unanimously approved.
IV. Consider Economic Development Incentive Agreement with ABB Controls,
Inc., for a Project to be Located at 1206 Hatton Road in Wichita Falls
(Before the 4A Board is a proposed Memorandum of Understanding, authorizing $81,000
of 4A sales tax revenues be paid to ABB Controls, Inc. This payment would be contingent upon
ABB's creation of 27 new jobs, 18 of which shall pay $10 per hour, excluding overtime and
benefits, and 9 of which shall pay $50, 000 per year excluding overtime and benefits. The $81, 000
payment would also be contingent upon ABB 's minimum investment of $2.5 million in buildings
and equipment no later than December 31, 2001. An additional one -time payment of 5% of
annual salaries will be paid out of 4A sales tax revenues for each newly created position earning
$50, 000 or more per year. In addition, if requested by the City, the WFEDC will recommend that
the City's portion of any sales tax refund due ABB resulting from an "Enterprise Project"
designation by the Texas Department of Economic Development be paid to ABB using 4(a) sales
tax proceeds. The City's portion of the sales tax refund is estimated to be $30,000.)
President Gary Shores gave the floor to Ron Mertens and Pat Hogan, to outline the
referenced proposal.
Mr. Mertens noted that ABB has operated in Wichita Falls since 1986. It is a wholly
owned subsidiary of ABB USA, which is in turn a wholly owned subsidiary of ABB out of
Switzerland. He stated it is one of the largest electro - technical companies in the world, and is a
very significant addition to our community in several ways. It is a headquarters company, and is
an area of growing technology.
Mr. Hogan stated that ABB looks to expand operations in Wichita Falls. This is a great
opportunity, and ABB requests the assistance of the Wichita Falls Economic Development
Corporation in this expansion effort. The actual project is the construction of a 30,000 to 50,000
square foot manufacturing facility, to be determined based on detailed layouts for equipment and
business processes to be added to the organization.
New products include low voltage switchboards and motor controlled and circuit breaker
products. The design and manufacturing of these assemblies will be done in Wichita Falls. These
activities will add employees in professional and technical areas to support these and existing
products. In addition, more manufacturing personnel will be added to support this growth.
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"Wichita Falls Economic Development Corporation February 5, 2001 Meeting Minutes Page 3 of 4
Mr. Mertens added that a key difference in the expansion of this company versus other
company expansions is the number of professional positions that ABB seeks to develop.
President Shores asked if ABB has go to "outside" to hire such employees, or can they be found
in the Wichita Falls community. Mr. Hogan stated that ABB should be able to staff those jobs
with local people through training of skilled employees. He believes this is a good opportunity
for the community.
Vice President Ray Clymer stated that he and the Board want to encourage this growth,
and more. Mr. Mertens stated that ABB intends to invest $1.5 million in building improvements,
and $1 million in equipment. The addition of the 27 new jobs will be above the 141 funded by
ABB during the period of October - December 2000. Their current employment base has an $18
million impact on the area's economy, with $360,000 in local taxes. The addition of 27
employees will have a $2.8 million annual impact on the economy.
Lou Rodriguez moved, and Ray Clymer seconded, that the Memorandum of
Understanding of February 5, 2001 be approved. The motion was unanimously approved.
Robert Powers noted the Board's recommendation would be placed on the agenda of the
City Council's February 20, 2001 meeting. Mr. Hogan noted his appreciation of the Board's
confidence and support, and expressed his opinion that this is an exciting project for ABB with
tremendous potential.
Mr. Rodriguez questioned Mr. Hogan as to whether there are sufficient technical skills
employees available to his company. Mr. Hogan replied affirmatively, and stated that ABB
expands upon those skills with internal training. Mr. Mertens informed the Board that a Skills
Development Fund Grant was before the Legislature in Austin at the present time, and
indications are that it will be approved.
The meeting was adjourned at 4:14 p.m.
Linda Merrill, Recording Secretary
ary Sabres, President