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4A Wichita Falls Economic Development Minutes - 07/18/2024 MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION JULY 18, 2024 PRESENT: Leo Lane, President § WFEDC Members David Toogood, Vice President § Darron Leiker Brent Hillery § Tim Short, Mayor § Mayor & Council Bobby Whiteley, Councilor at Large § Paul Menzies, Assistant City Manager § City Administration Blake Jurecek, Assistant City Manager § Kinley Hegglund, City Attorney § Stephen Calvert, CFO & Dir. of Finance § Russell Schreiber, Dir. of Public Works § Terry Floyd, Dir. of Development Services § Chris Horgen, Public Information Officer § Paige Lessor, Legal Asst/Recording Secretary § Colby Schwartz, Board Chair § Wichita Falls Chamber of Commerce Ron Kitchens, CEO § Moriah Williams, Partner § Vicki Pratt, Partner § Tom Sharp, Production Manager § Wichita Clutch Dr. Stacia Haynie, President § Midwestern State University Dr. DeAndrea Davis, i.d.e.aWF Director § Jeannie Hilbers, i.d.e.a.WF Coordinator Glenn Barham, President § SMAC Carla Rogers, Chairman § Downtown Wichita Falls Development Jana Schmader, Executive Director § Jeanette Charos, Marketing Director § Alisha Hagler, Program Director § Hank Rugeley, Attorney § Davison Rugeley, LLP Sam Pak § Lynn Walker, writer § Times Record News Absent: Phyllis Cowling, Secretary-Treasurer § WFEDC MINUTES 7/18/2024 PAGE 1 OF 11 1. CALL TO ORDER Mr. Lane called the meeting to order at 2:31 p.m. for scheduling purposes and time constraints. Mr. Lane rearranged the order of specific agenda items. Mr. Lane started the meeting with agenda item number four. 4. DISCUSSION AND POSSIBLE ACTION RELATED TO THE PROPOSED INCENTIVE PACKAGE FOR REGAL REXNORD CORPORATION LOCATED AT 2800 FISHER RD, WICHITA FALLS, TX 76302 Ms. Vicki Pratt addressed the Board and introduced the project. Ms. Pratt explained that Warner Electric, LLC, which owns Wichita Clutch, is considering moving some of its production lines. The Wichita Falls facility is a potential location for this move. To support this, there is a proposal to offer up to $7,500 per new job created if Wichita Falls is selected. Ms. Pratt also mentioned an economic impact of a 10.7% rate of return on the investment. Ms. Pratt introduced Tom Sharp, Wichita Clutch production manager, to the Board. Mr. Ron Kitchens highlighted the competitive nature of securing this new product line, as other communities are also vying for it. Mr. Sharp noted that the proposed line is one of five different lines this plant can get. Mr. Lane appreciated the potential impact and opened the floor for questions or additional comments. No questions were asked, and no comments were made. 6. DISCUSSION AND POSSIBLE ACTION RELATED TO THE PROPOSED INCENTIVE PACKAGE FOR THE MSU MILITARY READINESS CENTER Dr. Stacia Haynie addressed the Board and discussed Midwestern State University's future plans and partnership with Sheppard Air Force Base. Dr. Haynie described the decline in enrollment of airmen, civilians, and military dependents from Sheppard AFB. She stated that MSU wants to ensure that it provides quality education, including undergraduate and advanced degrees, needed by airmen for career advancements and promotions. She further explained the current challenges the university faces. MSU has lacked the space on campus to accommodate and welcome military personnel and their families. Additionally, the tuition assistance offered by the federal government does not cover the total cost of tuition. Dr. Haynie stated after communicating and working with Sheppard over the last 8 to 9 months to improve MSU's service to military personnel. The university has identified the second floor of the Bridwell Activity Center as a suitable space for the student success initiative anchored in a new military education center. Dr. Haynie then detailed the successful fundraising campaigns for the project. The university has raised over $400,000 for scholarships for airmen and their families. She emphasized including military families and veterans in the support structure. She also announced that the university had raised 50% of the funds needed to build out the space for the center. With the total project cost totaling $4,000,000, the Bridwell Foundation provided $1,000,000 in cash and pledged another$1,000,000, and MSU has raised an additional $750,000 with more proposals pending. Dr. Haynie discussed the strong community support and partnership with the base leaders. General Dietrich and General Filcek support this initiative, seeing it as a critical advantage for airmen's career progression and integration into civilian life and a civilian career path. Dr. Haynie then went into the details of MSU's financial request to the WFEDC. They request $1,000,000 from the WFEDC, and then they will request funding from the state legislature for the personnel to staff the center. The plan is to create 25 positions to support the academic center and student retention, providing comprehensive services in one place. She stated that the WFEDC MINUTES 7/18/2024 PAGE 2 OF 11 state would fund the personnel, but it would not fund the facility's construction. She further went into describing the services that the center would provide. This center will offer an all-inclusive concierge service for airmen, including staff that will help with financial aid, academic counseling, navigating career plans, procuring transcripts, admissions, and registrations. She told the Board that she has had positive conversations with legislative representatives about the potential benefits for the university and the base. Dr. Haynie again emphasized the potential to strengthen both the university and Sheppard Air Force Base through this partnership, enhancing the community and providing valuable education and support to service members and their families. She then asked for any questions. Mr. Leiker inquired about the timeline of this project and whether funding has been received. Dr. Haynie replied that the University was moving ahead with the project, hoping to open in January 2026. She stated that since the shell was already there, the construction would not be too complex, and they had enough funding to start the project. They are proceeding with getting designs and specs. They are moving very quickly. Mr. Leiker then confirmed that there was nothing that the next state legislature would have to approve for them to move forward. Mr. Toogood confirmed that the proposed space will have counselors and administrators to help veterans, their families, and airmen navigate educational options, not classrooms or study halls. Dr. Haynie confirmed that Mr. Toogood understood the space's purpose correctly. Mr. Toogood then asked about changes to class offerings, including in-person and online classes. Dr. Haynie highlighted the university's robust online portfolio, allowing airmen to continue their education regardless of their location. If relocated, they can take in-person classes while stationed at Sheppard Air Force Base and continue online. She then emphasized the importance of dedicated individuals assisting airmen and their families with academic and career navigation. She also noted that General Filcek sees this space as very beneficial for airmen to complete their degrees, and possibly, if they return to Sheppard, they know they'll be able to complete their master's degree. Mr. Kitchens shared that General Filcek mentioned the difficulty of recruiting instructors due to career advancement requirements. The new initiative could make it easier for instructors to obtain the necessary degrees and advance their careers. He further stressed the need for a personalized academic support system to handle military personnel's unique educational backgrounds and needs. He also pointed out the importance of leveraging existing military training and credits towards degree completion. Mr. Kitchens also mentioned that General Filcek refers to the initiative as "Sheppard University," highlighting the base's strong commitment to the program. Mr. Lane clarified that the initiative is seen as creating 25 jobs, mentioned a proposal involving the 4B board for additional support, and highlighted the importance of the initiative's support from legislators, Texas Tech, and the community to make a compelling case for the university. 3. DISCUSSION AND POSSIBLE ACTION RELATED TO FY 2025 BUDGET PRESENTATIONS: a. Sheppard Military Affairs Committee (SMAC) Mr. Lane introduced Glenn Barham to present for SMAC. Mr. Barham thanked the Board and partners for their support and requested a $170,000 investment for fiscal year 2025, a $20,000 increase from fiscal year 2024. Mr. Barham explained that the support in the past has allowed SMAC to continue its mission to support both the 80th and 82nd wings. SMAC continues to work hard to ensure that both wings remain viable within the Air Force, which is very important to the local economy. He then emphasized efforts with congressional and state leaders regarding low-level flying training route encroachments. SMAC continues to work with James Frank and WFEDC MINUTES 7/18/2024 PAGE 3 OF 11 other legislators to define "early notification" for developers to mitigate encroachment issues. SMAC also supports airmen, especially during the holiday season. Mr. Barham then reviewed the budget highlights with the Board, explaining that SMAC's request has increased 13.3% from last year. He also highlighted that pledges from the 2024-2025 campaign increased by 13%. He then reminded everyone of the new line item for Cornerstone Government Affairs, hired as consultants in Washington, D.C. He said that Mr. Leiker, Mr. Kitchens, and himself meet biweekly via electronic means with these consultants. He said the consultants were vital in their annual trip to D.C. He discussed the successful trip involving meetings with the congressional delegation, Senator Cruz, Senator Cornyn, and Congressman Jackson. They also had several briefings, including one with Amtrak. Mr. Barham then announced that SMAC would now have a dual focus on base realignment and closure issues and quality of life at Sheppard. He discussed SMAC's partnership with the Dillard Family Foundation, which involved a $100,000 project to remodel a facility used by airmen in training. He described the upgrades to the facility, including a kitchen, recarpeted facility, audio-visual equipment, gaming equipment, and new massage chairs. On the budget sheet, Mr. Toogood clarified the distinction between line 34 (reserve) and the bottom line (cumulative reserves). Mr. Leiker further explained the budget's balance between revenues and expenditures. Mr. Barham outlined that the total budget for FY2025 is $345,145. Mr. Lane then pointed out the increased banquets and special activities costs as significant parts of the budget increase. Mr. Barham acknowledged the rising costs, including the need to purchase food for the spring steering committee dinner due to the disbandment of the Roustabouts organization. Mr. Lane asked if there were any further questions. No more questions were asked, nor were comments made. b. i.d.e.a.WF Mr. Lane introduced Dr. DeAndrea Davis and Ms. Jeannie Hilbers of MSU. Dr. Davis introduced herself to the Board as a professor at Midwestern State University and the new director of the Lalani Center for Entrepreneurship, Dr. Scott Manley's replacement. She introduced Jeannie Hilbers, the coordinator of i.d.e.a.WF. She explained that Ms. Hilbers had historical knowledge of the program's inner workings and previous successes. Dr. Davis explained to the Board it was her intention during her first year to understand the existing program thoroughly before making improvements. She told the Board that the program would request the same $50,000 funding as in prior years to cover the program's cost. Dr. Davis then turned the presentation over to Ms. Hilbers. Ms. Hilbers explained that the funding from WFEDC pays for program administration, including her salary, advertising, and event costs. The contest prize money is raised independently through an advisory board. She explained that they changed the program a few years ago because they were having difficulty getting people to register because it focused on primary jobs. They softened that focus to increase participation, although primary job creation is still encouraged. She highlighted two successful participants from past cycles, Falls Metal Fabricating and Seasons Eatings. There are 16 participants in the current cycle, with seven involved in manufacturing or online retail. She said the program is pleased with their most recent winners, and they are still in business and doing well. Mr. Lane confirmed that everything is staying the same except the category types. Mr. Leiker inquired about the timing of the next award round. Ms. Hilbers explained that the next awards luncheon is scheduled for October 23, and final business plans are due on August 14. Mr. Lane asked if there were any further questions. No more questions were asked, nor were comments made. c. Downtown Wichita Falls Development(DWFD) WFEDC MINUTES 7/18/2024 PAGE 4 OF 11 Mr. Lane introduced Jana Schmader and DWFD. Ms. Schmader mentioned that this is her ninth proposal since joining the team. She started her presentation by discussing ongoing development and real estate. She stated that the total investment for continuing and future projects in downtown Wichita Falls is over $24 million, up from $21 million previously. She highlighted specific projects such as The Kate, which had a $14 million investment, and the property is still in development. Ms. Schmader discussed the challenges in the commercial real estate market, with many properties requiring significant capital for improvement. She also addressed the slow market conditions and conservative spending by potential investors. Ms. Schmader lists some key metrics: • Collaboration with the 4B Sales Tax Corporation as one of two central incentive zones downtown. • Four properties off the market, totaling $74 million in taxable value. • Decrease in vacancy rate to 3.5% (down 1.5% from last year). • 14 new businesses opened, and seven businesses are currently under construction. • 24% increase in traffic on the property platform. • Five businesses closed for various reasons, including business models and retirements. Ms. Schmader emphasized the importance of retaining existing businesses to maintain a thriving downtown district. She discussed partnership development, identifying business and organization partnerships, and how they can help district businesses. She discussed conducting surveys to understand business health and needs. She also discussed providing customized solutions for at-risk businesses, including technical, marketing, operational, and financial assistance. Then, she explained that regular follow-ups will help ensure ongoing support and adaptation of strategies. Additionally, Ms. Schmader emphasized the importance of consistent business hours and services. She explained that they must target businesses to fill gaps and cater to diverse demographics, including families and non-drinkers. Ms. Schmader detailed some of their planned retention activities, including personal engagement with businesses to understand their challenges and provide tailored support. Additionally, they recently hired a marketing intern to assist businesses with online sales, social media, and store presentation. They also plan to organize industry-specific meetings for better collaboration and strategy development. She also talked about the value-adding activities DWFD provides for the downtown district. She described the Downtown Farmers Market as an incubator for small businesses, with 138 participants and three transitioning to brick-and-mortar stores. They are also collaborating with the City on the selection and placement of esthetics, including streetlights, signal poles, and signage projects. They continue to add to their streetscape plan and infrastructure, enhancing walkability and cleanliness to attract visitors and investors. They have also introduced merchant-driven promotions and weekday programming to boost traffic. Additionally, they are continuing phase two of their placemaking projects, including public art installations and park activations. Finally, Ms. Schmader gave a budget request amount of $133,000 for FY2025. She explained that it is an increase from last year but is specially earmarked for the mentioned retention activities. Mr. Lane inquired about the overall approach and its development, suggesting an external assessment for improvement. Ms. Schmader said that the organization is absolutely open to that idea. Mr. Toogood asked about involvement in the vision for a thriving downtown, coordination with city planning, and adapting the downtown master plan. Ms. Schmader discussed the Downtown Master Plan, Future 2.0, and DWFD's own strategic plan. She highlighted her collaboration with city departments, public feedback, and potential updates to the Downtown Master Plan to reflect current needs. Mr. Lane asked if there were any further questions. No more WFEDC MINUTES 7/18/2024 PAGE 5 OF 11 questions were asked, nor were comments made. d. Chamber of Commerce Mr. Ron Kitchens addressed the Board. He mentioned that each attendee should have a copy of the presentation since he prefers printed documents over PowerPoint due to technical difficulties. He directed attention to page five, which details the economic impact since January. The chamber is transitioning its budget year to October for better financial clarity and alignment with the organization's budget. So far, the chamber's return on investment is 13 to 1, not including the current or upcoming projects. This year, 123 jobs were created, 70 of which are primary, with an average wage of $48,458 and a total investment of nearly $135 million. The ten-year impact is projected to be $15,669,000 in property and sales tax. Mr. Kitchens emphasized the importance of accurate and impactful data. Moving to the next page, Mr. Kitchens discussed the origin of deals, current projects, and incentive compliance auditing. He highlighted a case where money was reclaimed from a company that didn't meet its numbers, underscoring the importance of accountability to taxpayers. The chamber works closely with companies to ensure compliance, conducting pre-audit meetings to clarify expectations and required documentation. Mr. Kitchens assured that if necessary, they would recover and redeposit funds. Page seven outlined the Chamber's marketing efforts for the year and ongoing initiatives through the end of the year. Mr. Kitchens highlighted two significant recognitions. First, Ms. Moriah Williams was named one of the top 50 economic developers in America, chosen from thousands of applicants. This program involved nominations by site selectors and senior economic leaders, followed by a review and interviews by a panel. This honor reflects Moriah's hard work and the quality of the Chamber's hiring practices. Second, Inc. magazine annually lists the best places to work in America. Out of over 10,000 nominees, 581 companies made the list this year. The Chamber was the only economic development organization included and one of 13 companies from Texas, scoring 96 and ranking in the top 3%. This recognition is based on an independent survey of all team members, including online surveys and random interviews, separate from management, validating the Chamber's positive work environment. Mr. Kitchens directed attention to page eight, discussing the impact of the Chamber's newsletter. The newsletter combats the perception that there's nothing to do in the community by listing numerous activities. It publishes every Monday, typically featuring 4 to 6 pages of events, sometimes up to 8 pages. This initiative has engaged the community, especially military personnel, achieving a 51% open rate compared to the previous 4% and the industry average of 16%. With nearly 3,000 subscribers, the Chamber aims to reach that milestone by year-end, showcasing strong community commitment. Mr. Kitchens outlined the Chamber's achievements and ongoing efforts, beginning with surpassing their annual goal for site decision influencer meetings, which had an expectation of 92 but exceeded this number. Five influencers are visiting the community over the weekend. These influencers, who advise companies on decisions related to engineering, real estate, finance, and incentives, significantly amplify the Chamber's impact as they typically work with 8 to 12 companies each year, with firms handling about 80. For direct company impacts, which target external companies with potential business in Wichita Falls, the Chamber set a goal of 100 meetings and has already exceeded this. They focus on companies within industries that show growth potential in the area. Regarding existing industry impacts, the Chamber engages with current local businesses to understand their needs, barriers to growth, and opportunities, aiming for 150 meetings covering about 40 companies. This effort is crucial for supporting local businesses and preventing growth barriers. The Chamber has increased its military engagement, allocating 1.25 personnel to this WFEDC MINUTES 7/18/2024 PAGE 6 OF 11 area and planning to expand to 1.5 next year. This focus includes interactions with base leadership, federal agencies, and services for military spouses and veterans, addressing both job referrals and specialized services. Mr. Kitchens shared a story of helping a young military family find housing and essentials, demonstrating the Chamber's impactful but hard-to-quantify support efforts. Small business events have seen over 1,900 participants, with a goal of 3,000. An upcoming event on August 2nd will add another 600 attendees, including 100 airmen and permanent personnel from Sheppard, who will receive complimentary tickets to Leader Fest. Regarding potential new business, the Chamber has identified 34 suspects {companies interested in proposals) and 12 prospects (companies that visited and showed interest). However, they are slightly behind their goal due to the large scale of some projects. They have made four announcements, with a fifth expected soon, and anticipate at least two more by October 9th. Mr. Kitchens also notes the division of Chamber operations into two separate financial units, economic development, and business services, maintaining a firewall between them while still cross-pollinating staff due to the Chamber's size. This division allows for focused management of each unit while ensuring collaboration where necessary. Mr. Kitchens reported that the Chamber's membership has grown significantly from just below 500 eighteen months ago to 681. He expects this number to reach 700 by the end of the year, with August and September being peak renewal months that also often bring in new members through referrals. Mr. Kitchens again emphasized the importance of cross-training within the leadership team to prevent disruptions if a staff member is absent or leaves. He explained that every team member is trained to handle multiple roles, ensuring continuity of operations even if someone is on vacation, sick, or leaves the organization. This cross-training approach contrasts with the Chamber's previous experience, where losing a staff member could halt operations, and Mr. Kitchens is committed to preventing such issues in the future. Mr. Kitchens briefly mentioned the board members and noted that the board chair, Colby, was present for any questions. Directing everyone to page 16, Mr. Kitchens explained the rationale behind recruiting companies, emphasizing the importance of this effort. Page 17 highlighted the Chamber's key focus areas: Manufacturing: The Chamber is targeting strong opportunities in manufacturing sectors, including aviation components, energy (specifically hydrogen, battery storage, and wind), and food manufacturing. They are leveraging strategic advantages, such as the large-scale wind projects to the west, which have attracted component manufacturers and service companies. Aviation Components: While large blade manufacturers may not come to the area, there is interest from companies that service the wind industry. The Chamber is working to attract these companies and also exploring opportunities in blade recycling, with multiple companies competing for this work. Food Manufacturing: Given the state's emphasis on food production as it shifts from China, the chamber recognizes the need to engage in this sector. Although it hasn't previously focused on food manufacturing, it is now exploring opportunities and aiming to ensure its competitiveness. Hemp and Panda: The Chamber is working with three companies in the downstream sector of Panda, a hemp-related venture. They are focused on ensuring these companies see the value in local production rather than just exporting raw materials. Mr. Kitchens underscored his commitment to creating local manufacturing jobs and avoiding a situation similar to Corpus Christi, where raw materials were processed but not turned into finished products. He wants to ensure that valuable resources like hydrogen and hemp contribute to local manufacturing and job creation. WFEDC MINUTES 7/18/2024 PAGE 7 OF 11 Additionally, Mr. Kitchens discussed the Chamber's concentration on attracting Hyperscale Data Centers, large-scale facilities for processing and storing data. Advances in technology now allow these centers to use sealed cooling systems, reducing their water consumption to levels lower than that of an elementary school. Kitchens is optimistic about this sector's potential and plans to continue pursuing opportunities in this field. Mr. Kitchens discussed page 18 and the Chamber's strategy for execution, focusing on site selectors and industry-specific events. Since not all event schedules are finalized, the Chamber will rely on partnerships to maximize its outreach efforts. They have recently joined the Texas Economic Development Corporation, which allows them to participate in events hosted by the governor and provides greater access to promote Wichita Falls. Mr. Kitchens then skipped to page 21 and discussed two councils: Manufacturers Council: This council, meeting quarterly, focuses on sharing best practices, addressing growth challenges, and facilitating collaboration between companies. For example, members have shared machinery resources to meet short-term needs, benefiting all involved. Human Resources Council: Established to address job challenges for military spouses, this council began with 50 members and has grown to around 57 or 60. It aims to support employment opportunities and resource sharing in the HR field. Mr. Kitchens continued to highlight the successful initiatives of the two councils. Human Resource Council: Vicki Pratt manages this council, which focuses on helping military spouses find jobs. Previously, these spouses faced long delays in securing employment due to their applications getting overlooked, particularly for out-of-state applicants. The council has implemented a system where applications from military spouses are prioritized for review. While this does not guarantee a job or interview, it ensures their applications receive attention. This approach has led to successful placements and has fostered collaboration among council members. They are now engaging in joint training, inviting speakers, and sharing resources, leading to positive outcomes for both candidates and companies. Manufacturing Council: Managed by Moriah Williams, this council serves as a platform for manufacturers to exchange best practices, address issues, and collaborate on resource sharing. It has facilitated connections between companies and led to effective joint efforts to overcome challenges. Mr. Kitchens then discussed the impact of the military base on the local economy. Initial data suggested that the base contributed 35% to the local economy, but this figure is considered inaccurate. Updated assessments, supported by the governor's office, estimate that the base's impact is closer to 40%. Mr. Kitchens discussed ongoing programs and initiatives aimed at supporting military families and enhancing community integration: Military Roundtables: These quarterly meetings bring together base leadership, community leaders, and service providers to discuss and address issues affecting military families. Hidden Gems: This program helps integrate new military families into the community by showcasing local attractions and resources that might otherwise take months or years to discover. Employment Advocacy: Programs like "Hiring Our Heroes" provide concierge services for military personnel looking to transition into civilian roles. The Chamber assists with job placement and small business ownership, including helping with SBA loans for those looking to buy or start small businesses. Military Sticker Program: This initiative, requested by the base, involves businesses displaying stickers that indicate they offer unique benefits to military personnel and their families. The stickers feature QR codes linking to details about the discounts or perks, enhancing support for the military and promoting local businesses. Jobs Board: The chamber maintains a dedicated job board connecting military members and spouses with employment opportunities. WFEDC MINUTES 7/18/2024 PAGE 8 OF 11 Thrive Guide: This guide, created in collaboration with the secretary of the Joint Chiefs of Staffs wife, is designed to support military families by detailing community and base services. It has been recognized by the chairman of the Joint Chiefs as a model for other communities and is used by the Air Force as a reference for community support. The Thrive Guide's success has led to visits from other chambers seeking to replicate Wichita Falls' approach, reflecting the guide's impact and the community's effective support for its military base. Additionally, Mr. Kitchens outlined the Chamber's approach to supporting small businesses through a variety of initiatives: Strong Support Networks: The focus is on creating a network of resources to assist small businesses. This includes consultations on essential services, access to resources, workforce analysis, and mentorship programs. Proactive Economic Development Initiatives: The Chamber collaborates with local organizations to offer seminars on topics relevant to small businesses. Feedback from local businesses has been integral in shaping these seminars to ensure they meet actual needs. Concierge and Ombudsman Services: These services act as intermediaries between small businesses and city regulations. The goal is to bridge communication gaps and resolve issues that arise, such as permit compliance problems. For example, the chamber helped businesses find additional parking to comply with permit requirements without disrupting operations. Engaging Events: The Chamber organizes numerous events, with a significant portion focused on small businesses. These events include networking opportunities and other activities designed to increase visibility and support for local businesses. One notable success was a significant networking event at Bonitas Coffee, which was so popular it had to be moved to the parking lot. Overall, the Chamber is committed to addressing the needs of small businesses through direct support, strategic initiatives, and community engagement. Finally, Mr. Kitchens discussed the Chamber's budget and financial planning for the upcoming year. Mr. Kitchens discussed the budget breakdown, focusing on staffing, salaries, benefits, and shared services. Last year, shared services and overhead were analyzed at 11% of total expenses. This year's analysis shows a slightly higher percentage but remains booked at 11%. On page 29, there is a significant increase in the budget to expand operations, particularly in attraction, recruitment, and deal flow. Also, the budget is now aligned with an October fiscal year to ensure consistent transparency and reporting, moving away from the previous mixed-year approach. Mr. Kitchens noted that page 30 outlined expectations and accountability measures. Goals are not set, but expectations are detailed. Risks and opportunities are identified, including a new initiative to support airmen with community tours and safe spaces. Enhancements include changes to bus routes for better access to community amenities, such as the farmers' market, and establishing a safe space for airmen who may get stranded downtown. Mr. Kitchens further discussed creating a database of available retail spaces, meeting with potential companies, and attending trade shows like the International Council of Shopping Centers to attract retailers. Better infrastructure and a more targeted approach are needed to recruit high-end retailers. He stated there is an ongoing challenge with retail competition, online sales, and a lack of data on available spaces. Current efforts include developing a comprehensive database and strategies for attracting new businesses. Discussions are underway with new mall owners to prevent the mall from becoming an eyesore. Mr. Kitchens compared Abilene's thriving retail environment, emphasizing the need for community investment and proactive efforts. Mr. Kitchens also mentioned the Chamber is establishing a 501(c)(3) charitable status to diversify funding sources. This change is driven by the foundations' interest in contributing to economic development. Mr. Kitchens explained that the budget presented showed a clean audit with no significant. WFEDC MINUTES 7/18/2024 PAGE 9OF11 issues. The update and changes reflect ongoing efforts to improve transparency and funding. Mr. Lane congratulated the team on their progress and expressed satisfaction with the comprehensive coverage of the topics discussed. Mr. Schwartz reflected positively on his experience with the chamber board and economic committees, noting that the Chamber is in excellent shape. He expressed enthusiasm for upcoming developments and excitement about future achievements, especially looking forward to 2025 and 2026. Mr. Lane then asked if there were any further questions from the board. No more questions were asked, nor were comments made. 2. CONSENT AGENDA a. Approval of Minutes (May 16, 2024) b. Financial Report Mr. Tooqood moved to approve the consent agenda. Seconded by Mr. Leiker, the motion carried 4-0. Mr. Menzies provided an update on the financial report. Sales tax figures have fluctuated month-to-month, with recent changes ranging from a 9.5% increase to a 2% decrease. Over the year, the sales tax is nearly flat compared to the previous year, showing a 0.6% decrease. Despite the fluctuations, this stability in sales tax is considered good news. Interest rates positively affect the financial situation, compensating for the variability in sales tax revenue. The most recent financial report, distributed last week, did not include sales tax figures. Including these figures, the unencumbered fund balance is closer to$14 million than the previously reported$13.5 million. 7. EXECUTIVE SESSION Mr. Lane adjourned the meeting into executive session at 4:06 p.m. pursuant to Texas Government Code §§§ 551.087, 551.071, and 551.074. He announced the meeting back into regular session at 5:27 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. 5. DISCUSSION AND POSSIBLE ACTION RELATED TO CARTER AVIATION TECHNOLOGIES, LLC, CARTER AIR VEHICLES, LLC, CARTER AEROSPACE DEVELOPMENT, LLC, AND JAY W. CARTER, JR. There was no public discussion on this item. 8. MOTIONS After each motion, the chair asked for comments or questions from the public. FY 2025 BUDGET PRESENTATIONS Mr. Hillery made a motion to approve the FY2025 budget funding requests as follows: SMAC: $160,000.00 i.d.e.a.WF: $50,000.00 Downtown Wichita Falls Development: $133,000.00 Chamber of Commerce: $1,464,000.00 WFEDC MINUTES 7/18/2024 PAGE 10OF11 Seconded by Mr. Leiker and following no public comment, the motion carried 4-0. REGAL REXNORD CORPORATION No motion or action was taken on this item. CARTER AVIATION Mr. Leiker made a motion to authorize the WFEDC President to work with the Board's attorneys to take appropriate collection measures related to Carter Aviation Technologies, LLC, Carter Air Vehicles, LLC, Carter Aerospace Development, LLC, and Jay W. Carter, Jr. to recover all monies owed to the Wichita Falls Economic Development Corporation. Seconded by Mr. Toogood and following no public comment, the motion carried 4-0. MSU MILITARY READINESS CENTER Mr. Toogood made a motion to authorize a forgivable loan in the amount of $1,000,000 be paid to Midwestern State University and/or the MSU Foundation for the creation of a military readiness center at the university, located at 3410 Taft, Wichita Falls, Texas, which will create 25 new full-time positions contingent upon proof of receiving confirmation of funding from outside contributors, to be forgiven when the center receives state funding and has been in operation for four full years and has hired 25 new full-time positions. Seconded by Mr. Hillery and following no public comment, the motion carried 4-0. 9. ADJOURNED. Mr. Lane asked if the public had any questions or comments. Since there were none, he adjourned the meeting at 5:31 p.m. Leo Lane, President WFEDC MINUTES 7/18/2024 PAGE 11 OF 11