4A Wichita Falls Economic Development Minutes - 12/21/2023 MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
DECEMBER 21, 2023
PRESENT:
Leo Lane, President § WFEDC Members
David Toogood, Vice President §
Phyllis Cowling, Secretary-Treasurer §
Brent Hillery §
Darron Leiker §
Tim Short, Mayor § Mayor & Councilors
Blake Jurecek, Assistant City Manager § City Administration
Kinley Hegglund, City Attorney §
Terry Floyd, Dir. of Development Services §
Stephen Calvert, Senior Budget Analyst §
Chris Horgen, Public Information Officer §
Monica Aguon, Assistant City Attorney §
Ron Kitchens, CEO § Wichita Falls Chamber of Commerce
Moriah Williams, Partner §
Todd Artigue § Seasons Eating Snack Company, LLC
Kara Artigue §
Jeanine Hilbers, Coordinator § i.d.e.a.WF
Stan Spruiell, Plant Manager § Covercraft Industries, LLC
Daron Fredrickson, Consultant §
ABSENT: §
Paul Menzies, Assistant City Manager § City Administration
Paige Lessor, Legal Asst/Recording Secretary §
1. CALL TO ORDER
Mr. Lane called the meeting to order at 2:30 p.m.
2. CONSENT AGENDA
a. Approval of Minutes (November 16, 2023)
Mr. Toogood moved to approve the Minutes as presented. Seconded by Mr. Hillery, the
motion carried 5-0.
b. Financial Report
Mr. Leiker moved to approve the Financial Report as presented. Seconded by Ms.
Cowling, the motion carried 5-0.
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3. DISCUSSION AND POSSIBLE ACTION RELATED TO THE PROPOSED INCENTIVE PACKAGE FOR
SEASONS EATING SNACK COMPANY, LLC.
Ms. Moriah Williams introduced Jeanine Hilbers from i.d.e.a.WF and Todd Artigue from
Seasons Eating Snack Company. Ms. Williams explained to the Board that Seasons Eating Snack
company won the i.d.e.a.WF competition and received $25,000, which was used to purchase
equipment (round sheet cake slicer and press plate holder). The Company is coming before the
Board to request $36,500 to purchase packaging equipment in the form of a cash-upfront, five-
year loan at $7,300 per year. The Company plans to create six full-time positions over five years
while retaining existing staff.
Mr. Artigue spoke to the Board and explained that the Company is seeking funding to
purchase a 60-quart mixer, flow wrap machine, and tumbler mixers to ramp up production. Mr.
Artigue then presented the Company's growth plan, targeting major national grocery chains and
projecting conservative hiring and production numbers. He explained that the investment in the
additional equipment would help them ramp up production. By the end of 2024, the Company will
produce 55 cases of granola bars per month, hire additional staff, and outsource bookkeeping to
a business service. In 2025, Seasons Eating plans to employ a full-time lead baker, an assistant
baker, and part-time support. Then, by 2026, the Company envisions production of 100 plus cases
per month, with a team comprised of two full-time bakers, a baking assistant, packaging assembly
line workers, and a full-time dishwasher. Seasons Eating's expansion strategy includes hiring
more part-time and full-time employees and eventually appointing a full-time business service
manager to ensure seamless operations.
Ms. Hilbers thanked the Board for hearing the Company's presentation and supporting
i.d.e.a.WF.
Mr. Lane opened the floor for any questions or comments from the Board and the Public.
No additional questions were asked, nor were remarks made.
4. DISCUSSION AND POSSIBLE ACTION RELATED TO THE PROPOSED INCENTIVE PACKAGE FOR
COVERCRAFT INDUSTRIES, LLC.
Ms. Williams presented Covercraft's proposal and introduced Stan Spruiell, WF Plant
Manager, to the Board. Covercraft has been operating in Wichita Falls since 2000 and employs
135 people. The company is requesting funding to purchase a fabric cutter and plans to hire an
additional 20 full-time positions. The funding request would come in the form of a forgivable loan
of $255,000 for the fabric cutter and a $30,000 cash-for-jobs incentive ($6,000 per new full-time
position).
Mr. Spruiell provided information about Covercraft's operations, growth, and changes in
pay structure. He explained that the Company produces items like protective covers for cars, car
seats, dash mats, auto floor mats, and pet protectors, explaining that one of their largest
customers is WeatherTech. He discussed the company's stability, room for growth, and new pay
structure aimed at talent retention.
Board members inquired about material supplies and the company's ability to handle
growth. Mr. Hillery asked about the capacity of the company's building. Mr. Spruiell stated they
have plenty of room for more equipment.
Mr. Kitchens asked Mr. Spruiell to point out the Company's change in pay structure. Mr.
Spruiell highlighted the changes, moving from incentive pay piecemeal to hourly pay based on
skills. The new pay structure aims to provide a more stable income and attract and retain talent
during growth. The new pay structure is expected to result in an average salary of about$44,000
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annually, plus benefits.
Mr. Leiker asked Mr. Spruiell if the Company was having difficulty acquiring materials, Mr.
Spruiell stated that Covercraft experienced challenges getting materials from China before
COVID-19, and the pandemic exacerbated the situation. However, he further noted that supply
chain issues have improved since then, and new leadership in purchasing has implemented cost-
cutting measures.
Mr. Lane asked for additional questions or comments from the Board and the Public. No
additional questions were asked, nor were remarks made.
5. EXECUTIVE SESSION
Mr. Lane adjourned the meeting into executive session at 2:45 p.m. pursuant to Texas
Government Code §§ 551.087 and 551.071, He announced the meeting back into regular session
at 3:54 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or
further actions were taken on the items in executive session.
6. MOTIONS
SEASONS EATING SNACK COMPANY, LLC. INCENTIVE PACKAGE
Mr. Leiker made a motion to approve an incentive package to include an upfront forgivable
loan to Seasons Eating Snack Company, LLC, in the amount of up to $36,500 for equipment in
their existinq Wichita Falls operation, to include the following additional loan structure details and
benchmarks:
• Cash up front for five years, no interest.
• If the Company meets its promises and new employee minimum requirements of
six full-time positions by December 31. 2028, the loan will be forgiven, and no
payments will be required.
• If yearly goals are not met, the Company will repay each position not obtained at
a rate of$6,083 per position.
• Yearly compliance reviews will be performed with the cooperation of the company
to ensure key performance indicators are being met.
• WFEDC will have a security interest in the equipment purchased by the Company.
With no further comments, public discussion, or questions and a second by Mr. Toogood,
the motion carried 5 - 0.
COVERCRAFT INDUSTRIES, LLC INCENTIVE PACKAGE
Ms. Cowling made a motion to approve an incentive package to Covercraft Industries,
LLC, in the amount of up to $285,000, which includes an upfront forgivable loan for the purchase
of a fabric cutter and a cash-for-jobs incentive, for the retention of 135 full-time positions and the
addition of 20 new full-time positions, to include the following additional loan structure details and
benchmarks:
• Cash up front, five years, no interest.
• The Company intends to add the fabric cutter upon receiving the incentive and
begin hiring new full-time employees.
• If the Company meets promises and new employee minimum requirements of 20
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full-time positions are met by December 31, 2028, at the proposed rate of four
employees per year, the loan will be forgiven, and no payments will be required.
• If yearly goals are not met, the Company will repay each position not obtained.
• Yearly compliance reviews will be performed with the company's cooperation to
ensure key performance indicators are being met.
• Employees must be employed full-time for a minimum of six months at the
company before funds can be applied for. All positions will require documentation.
• WFEDC will have a security interest in the equipment purchased by the Company.
With no further comments, public discussion, or questions from the public and a second
from Mr. Leiker, the motion carried 5 — 0.
7. ADJOURNED.
Mr. Lane asked for any questions or comments from the public. Being none, he adjourned
the meeting at 3:57 p.m.
L ,Pres e"1r t
bav►'d roo9o06, V. P.
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