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4A Wichita Falls Economic Development Minutes - 09/19/2024 MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION SEPTEMBER 19, 2024 PRESENT: Leo Lane, President § WFEDC Members David Toogood, Vice President § Brent Hillery § Reno Gustafson § Craig Lewis § Tim Short, Mayor § Mayor & Council Tom Taylor, Councilor, District 5 § Paul Menzies, Acting City Manager § City Administration Blake Jurecek, Assistant City Manager § Kinley Hegglund, City Attorney § Stephen Calvert, CFO & Dir. of Finance § Terry Floyd, Dir. of Development Services § Karen Montgomery-Gagne, Principal Planner § Chris Horgen, Public Information Officer § Paige Lessor, Legal Asst/Recording Secretary § Ron Kitchens, CEO § Wichita Falls Chamber of Commerce Moriah Williams, Partner § Vicki Pratt, Partner § Jeff Gutierrez, Deputy Dir. of Mission Support § Sheppard Air Force Base 1. CALL TO ORDER Mr. Leo Lane called the meeting to order at 2:32 p.m. Mr. Lane then welcomed two new board members, Reno Gustafson and Craig Lewis. Mr. Gustafson briefly introduced himself, sharing his background in fundraising and current work with Congressman Ronny Jackson. He expressed excitement about being back with the WFEDC. Mr. Lewis introduced himself as a CPA in the community for over 40 years. He has extensive experience with public accounting, audits, and estate planning and has been part of the community since 1978. He also expressed gratitude for being part of the board. 2. CONSENT AGENDA a. Approval of Minutes (August 15, 2024) b. Financial Report Mr. Menzies gave a brief financial report to the Board. He stated that sales tax revenue is currently on par with last year, which indicates stability. Additionally, he noted that interest earnings through the previous ten months equaled approximately$1 million. However, the interest WFEDC MINUTES 9/19/2024 PAGE 1 OF 3 rate is expected to decrease due to Federal Reserve action. WFEDC has roughly $14 million in unencumbered funds ready for new projects. Mr. Toogood moved to approve the consent agenda as presented. Seconded by Mr. Hillery and with no further discussion or public comment, the motion carried 5-0. 3. DISCUSSION AND POSSIBLE ACTION RELATED TO THE PROPOSED PERFORMANCE CONTRACT BETWEEN THE WICHITA FALLS CHAMBER OF COMMERCE AND THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION. Mr. Lane confirmed that everyone had reviewed the contract and asked if there was any public comment about this item. He stated that this item might be discussed in executive session and he would take up the item again after executive session. 4. CONSIDERATION OF A FUNDING REQUEST VIA THE WICHITA FALLS CHAMBER OF COMMERCE AND SHEPPARD MILITARY AFFAIRS COMMITTEE (SMAC) TO SUPPORT THE STROBE LIGHT REPAIR PROJECT FOR THE MAIN RUNWAY AT SHEPPARD AIR FORCE BASE. Mr. Ron Kitchens introduced a funding request from the Chamber of Commerce and the Military Affairs Committee to support a strobe light repair project at Sheppard Air Force Base (SAFB). Mr. Kitchens noted that Mr. Glenn Barham, Sheppard Military Affairs Committee (SMAC) President, was in attendance and that the WF4BSTC had already approved their portion of the project. Mr. Jeff Gutierrez, Deputy Director of Mission Support at SAFB, explained that this nearly $3 million project is essential for maintaining controlled air traffic on the center runway, benefiting both NATO training missions and commercial flights under low-visibility conditions, The funding plan proposes $1 million from the Defense Readiness Council (DRC), $1 million from local funds, and $1 million from the Department of Defense and NATO partners. Timing is critical, as the project aligns with a more extensive $44 million runway redevelopment planned for next spring, aiming to minimize downtime for SAFB operations. Mr. Gutierrez emphasized that this lighting upgrade also prepares the runway for future missions involving the T-7 aircraft.The upgrade does not create new missions but ensures continued pilot training capacity and potential for future expansion in training throughout. Mr. Kinley Hegglund inquired if this project supports future military missions; Mr. Gutierrez confirmed its critical role in showing commitment to NATO's training mission,which is vital for the community-military partnership. Mr. Kitchens described the competitive grant process for state funding through the Defense Economic Adjustment Assistance Grant(DEMO), which the Texas legislature allocates for military-support projects. The Texas legislature allocates $30 million in military support funds within each biennial budget cycle, distributed up to four times over two years. Only 15 military bases and facilities in Texas are eligible for these funds,which are awarded through a competitive grant process. In the past, SAFB received funding for the front gate expansion, a project that combined city, federal, state, and DRC dollars. Each eligible base has a representative on the Texas Military Preparedness Commission (TMPC), which oversees these grants. Darrell Coleman, representing SAFB, has pledged to assist with the grant proposal to improve funding prospects. SAFB is considered highly competitive for these funds due to the mission-critical nature of the project. Mr. Kitchens further explained why the strobe lights are a necessity for SAFB. The strobe light project is critical because the planned runway expansion will dismantle the existing lighting system, which cannot be redeployed under the current budget. Without this new lighting, SAFB risks losing essential training days, which is particularly concerning for NATO training missions WFEDC MINUTES 9/19/2024 PAGE 2 OF 3 relying on SAFB's capabilities. According to NATO leadership, these lights are critical for mission continuity. Mr. Kitchens reiterated that the funding structure ensures that no local funds (4A and 4B dollars) will be used until federal and state grants are secured. This strategy makes the local contribution a "last dollar in," contingent on other funding sources being confirmed first. This approach protects WFEDC's resources while ensuring SAFB's funding request aligns with the state's 4A funding requirements, emphasizing the project's necessity and mission alignment. Mr. Gustafson inquired whether Mr. Coleman was writing or helping with the grant proposal. Mr. Gutierrez explained that his team is working with Karen Montgomery-Gagne at the City, and they are scheduled to meet with Mr. Coleman prior to the grant submission. Mr. Barham provided additional context, explaining that DEAAG funds support bases impacted by the 2005 Base Realignment and Closure (BRAC) round. Barham confirmed that Karen Gagne from the City would handle the grant application for SAFB, a requirement as only government entities can apply. The team is confident in the application's strength due to SAFB's established need for upgraded lighting for night and adverse weather operations. Mr. Gutierrez assured Mr. Gustafson that he had met with Mr. Coleman multiple times. Mr. Gustafson emphasized that Mr. Coleman could help with the grant proposal. He will be presenting the proposal to TMPC. Ms. Montgomery-Gagne stated that she had a great conversation with TMPC Director Keith Graf, and he offered to review the draft of the grant proposal. Mr. Toogood David Toogood mentioned his role on the governor's committee advocating for an increase in DEAAG funding to $75 million. 5. EXECUTIVE SESSION Mr. Lane adjourned the meeting into executive session at 2:48 p.m. pursuant to Texas Government Code §§§ 551.087, 551.071, and 551.074. He announced the meeting back into regular session at 3:58 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. MOTIONS WFEDC AGREEMENT WITH THE WICHITA FALLS CHAMBER OF COMMERCE Mr. Tooqood moved to approve the services aqreement between the WFEDC and the Wichita Falls Chamber of Commerce as submitted. Seconded by Mr. Gustafson and with no comment from the public, the motion carried 5-0. SHEPPARD AIR FORCE BASE STROBE LIGHT REPAIR PROJECT Mr. Toogood moved to authorize up to $500,000 in funding to support the strobe light repair project for the main runway at Sheppard Air Force Base, contingent upon funding from the State of Texas and the federal government. Seconded by Mr. Hillery and with no comment from the public, the motion carried 5-0. 6. ADJOURNED. Mr. Lane asked if the public had any questions or comments. Since there were none, he adjourned the meeting at 4:00 p.m. Leo Lane, President WFEOC MINUTES 9/19/2024 PAGE 3 OF 3