4A Wichita Falls Economic Development Minutes - 11/16/2023 MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
NOVEMBER 16, 2023
PRESENT:
Leo Lane, President § WFEDC Members
David Toogood, Vice President §
Brent Hillery §
Darron Leiker §
Bobby Whiteley, Mayor Pro Tem § Mayor& Councilors
Paul Menzies, Assistant City Manager § City Administration
Blake Jurecek, Assistant City Manager §
Kinley Hegglund, City Attorney §
Terry Floyd, Dir. of Development Services §
Stephen Calvert, Senior Budget Analyst §
Chris Horgen, Public Information Officer §
Paige Lessor, Executive Legal Assistant §
Ron Kitchens, CEO § Wichita Falls Chamber of Commerce
Moriah Williams, Partner §
Vicki Pratt, Partner §
Patrick FitzGibbon § Senderoo, LLC
Damon Gier § Westlake
Daron Fredrickson, Consultant §
Lynn Walker, Writer § Times Record News
ABSENT: §
Phyllis Cowling, Secretary-Treasurer § WFEDC Member
1. CALL TO ORDER
Mr. Lane called the meeting to order at 2:30 p.m. He welcomed everyone, including the
mayor, city council members, and guests.
2. CONSENT AGENDA
a. Approval of Minutes (October 19, 2023)
Mr. Toogood moved to approve the Minutes as presented. Seconded by Mr. Hillery, the
motion carried 4-0.
b. Financial Report
Mr. Paul Menzies presented the financial report, highlighting a trend of negative returns
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for the past five months. He mentioned the fiscal year finishing even with slight gains compared
to the budget. Interest earnings were emphasized, compensating for sales tax stagnation. Mr.
Menzies stated that the Board had approximately $11.5 million of unencumbered funds, including
recent project approvals for Magic Air and Panda Biotech. Additionally, Mr. Menzies confirmed a
recent payment received from Panda Biotech. He stated the Company has a balance of
approximately $100,000.
Mr. Lane opened the floor for questions, and no concerns were raised. No action was
taken.
3. DISCUSSION AND POSSIBLE ACTION RELATED TO THE APPOINTMENT OF OFFICERS.
All officers stated they would continue to serve in their current role.
Mr. Leiker made a motion to reappoint the current officers. Seconded by Mr. Hillery, the
motion carried 4-0.
4. DISCUSSION AND POSSIBLE ACTION RELATED TO THE PROPOSED INCENTIVE PACKAGE FOR
SENDEROO, LLC
Ms. Vicki Pratt introduced the project by Senderoo, LLC. Mr. Lane interjected, explaining
that there is a proposal from James Lane Air Conditioning in which he is not actively involved. He
further explained that if this item is discussed in executive session, he would leave the room. Mr.
Hegglund confirmed that there was no legal conflict, but because of the appearance, it is
reasonable for him to recuse himself and not participate during the vote. He further confirmed that
Mr. Lane could sit as president and run the meeting during the presentation.
Ms. Pratt introduced Mr. Patrick FitzGibbon, a representative of the company. Ms. Pratt
explained that Senderoo is a new company in Texas, subsequently new to Wichita Falls. The
company comes to Wichita Falls from the West Coast. The principals have started companies in
other states and have chosen Wichita Falls to operate a warehouse distribution center.
The company supplies products to H-E-B, Rite Aid, specialty boutiques, and pharmacies.
The warehouse, located at 4385 Seymour Highway, is within city limits, a crucial factor given the
need for climate-controlled storage. The products are susceptible to extreme temperatures, and
finding suitable warehouse space with HVAC systems is challenging in Wichita Falls. The
company, led by Kelly Campbell, currently has Patrick, her husband, representing them. They
have secured a building but must install a heating and air conditioning system to maintain product
quality.
Ms. Pratt presented the proposal of a forgivable to support the installation of an HVAC
system. The company received some quotes on this installation, and the quote from James Lane
was the most favorable. The cost for purchase and installation is$55,000, with the building owner
covering 25%, leaving the company with $41,250 in expenses. A forgivable loan of up to half the
cost, or $20,625, is recommended to support the company. The project is expected to create five
jobs, with plans to hire one before the year-end and the remaining four in 2024. The company is
eager to proceed and aims to move quickly.
Mr. Kitchens commented that this building has been considered for several projects, and
the HVAC issue has always been the reason the building has never been filled. He explained that
clearing this hurdle would be a great success.
5. DISCUSSION AND POSSIBLE ACTION RELATED TO THE PROPOSED INCENTIVE PACKAGE FOR
WESTLAKE.
Ms. Pratt introduced Westlake's expansion project, outlining the investment, job creation,
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and economic impact. She explained that the company wants to build a state-of-the-art facility
and was considering an Arizona site as well, but Wichita Falls has won this project. The proposed
new investment of $134,117,039.00 involves expanding the Company's current Wichita Falls
facility by over 220,000 square feet. They're going to install machinery and equipment that is
valued at over$65 million. The company plans to create 50 new full-time positions, supplementing
the existing 69 full-time employees. The projected average wage for each position is $68,000,
accompanied by a comprehensive benefits package valued at an additional $30,000. This
average wage is 38% higher than the prevailing average annual wage in Wichita County.
Ms. Pratt detailed the proposed incentive package recommended by The Chamber. The
incentive package includes funds of up to $1,175,000, including a $750,000 three-year forgivable
loan, $50,000 permitting fee reimbursement, and a cash-for-jobs incentive of$7,500 per job. She
explained that the economic impact analysis showed a net benefit of over $10 million and 80.7
jobs.
Mr. Hegglund explained that the Company has negotiated with Wichita County, and the
County has agreed to enter into a tax abatement agreement with the Company. The County will
need the City to create a reinvestment zone. He explained the timeline for creating the zone and
stated it could be done relatively quickly.
Ms. Pratt introduced Westlake's representative, Damon Gier, and the company's
consultant, Daron Frederickson, and stated that the company is looking to break ground no later
than April 1, 2024.
6. EXECUTIVE SESSION
Mr. Lane adjourned the meeting into executive session at 2:45 p.m. pursuant to Texas
Government Code § 551.087. He announced the meeting back into regular session at 3:09 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.
7. MOTIONS
SENDEROO, LLC INCENTIVE PACKAGE
Mr. Leiker made a motion to approve an incentive package to include a forgivable loan to
Senderoo, LLC, in the amount of up to $20,625, valued at$4,125 per full-time lob for the purpose
of installing an HVAC system in the warehouse located at 4385 Seymour Highway, Wichita Falls,
TX, to include the following benchmarks to be met:
1. The building owner must invest at least 25% towards the cost and installation, with
evidence needed.
2. Senderoo, LLC will sign a personal guarantee for fund repayment if the business
closes before the lease ends.
3. Senderoo, LLC must create five full-time lobs by year-end 2024.
4. Senderoo, LLC purchases and installs an appropriately sized HVAC and shows
receipts for the same.
With no public discussion, Mr. Lane abstaining from the vote, and a second by Mr.
Toogood, the motion carried 3-0.
WESTLAKE INCENTIVE PACKAGE
Mr. Toogood motioned to approve an incentive package to include a forgivable loan in the
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amount of up to $750,000, a cash-for-lobs incentive of up to $375,000, or $7,500 per full-time
position hired, and a $50,000 reimbursement for permit fees paid to the City in support of the
220,000 square-foot expansion of their existing Wichita Falls facility, to include further the
following benchmarks met:
1. Year One Draw Request Benchmark (12 months after permits are issued): The
Company provides evidence of construction of the manufacturing structure.
2. Year Two Draw Request Benchmark (12 months after the first draw): The Company
provides evidence of the purchase and installation of all production equipment and
begins building the remaining proposed structures necessary to support production.
3. Year Three Draw Request Benchmark (12 months after the second draw): The
Company provides evidence of full production underway and at least 50 new hires.
Note: The company intends to hire 28 in year one, 13 in year two, and 9 in year three.
With no discussion or questions from the public and a second from Mr. Hillery,the motion
carried 4-0.
8. ADJOURNED.
Mr. Lane asked for any questions or comments from the public. Being none, he adjourned
the meeting at 3:14 p.m.
Leo Lane, President
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