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4A Wichita Falls Economic Development Minutes - 11/21/2024 MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION NOVEMBER 21, 2024 PRESENT: Leo Lane, President § WFEDC Members David Toogood, Vice President § Brent Hillery § Craig Lewis § Tim Short, Mayor § Mayor & Council Mike Battaglino, Councilor, District 4 § James McKechnie, Interim City Manager § City Administration Paul Menzies, Assistant City Manager § Blake Jurecek, Assistant City Manager § Kinley Hegglund, City Attorney § Kaitlin LeVasseur, Budget Analyst § Terry Floyd, Dir. of Development Services § Chris Horgen, Public Information Officer § Paige Lessor, Legal Asst/Recording Secretary § Ron Kitchens, CEO § Wichita Falls Chamber of Commerce Vicki Pratt, Partner § Absent: Reno Gustafson § WFEDC Board Member 1. CALL TO ORDER. Mr. Leo Lane called the meeting to order at 2:32 p.m. and welcomed Councilor Battaglino and Mayor Short to the meeting. 2. CONSENT AGENDA. a. Approval of Minutes (September 19, 2024) b. Financial Report Mr. Menzies addressed the Board and advised that sales tax revenue is down 1.1% from this time last year. However, the corporation is in a strong financial position, with potential improvements due to project resolutions discussed in an executive session. 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 4-0. WFEDC MINUTES 11/21/2024 PAGE 1 OF 4 3. CONSIDERATION OF A FUNDING REQUEST FROM THE WICHITA FALLS CHAMBER OF COMMERCE FOR THE PROPOSED ENGAGE SHEPPARD PROGRAM. Mr. Ron Kitchens introduced the Chamber of Commerce's Engage Sheppard Program, which aims to increase community engagement among airmen stationed at Sheppard Air Force Base. This program consists of two initiatives involving community tours for the Airmen in Training and the Home Away from Home Program ("Big Brothers, Big Sisters" type program for the Air Force). First, Mr. Kitchens explained the community tour aspect of the program. The tours aim to integrate airmen into the local community and address concerns of isolation. City buses will facilitate the community tours with support from the City's transportation department, with tours scheduled one day per week and up to five tours per day. They anticipate approximately 250 to 300 airmen on the tours each week. There will be multiple stops on the tour, including Midwestern State University, where they will get a briefing on how the Military Success Center works and receive invitations to attend sporting events at no cost. Additional community and retail stops will be included, including a stop at Target, a favorite place for airmen. Mr. Kitchens broke down the costs for the Board. He explained that to run this program would be about a $100,000 expense, but they were able to utilize some federal and state funding to help offset the cost. The bus cost will run $6,000 annually, and staff will need to be hired by the Chamber to run the program ($70,000 annually). They plan to work with SMAC (Sheppard Military Affairs Committee) to provide food and beverages while the airmen are on the bus. They also have about 140 companies that have signed up to be "base friendly" and give discounts or free items to the airmen. Then, Mr. Kitchens discussed the Home Away From Home Program, a mentorship initiative in which airmen (and their families) are paired with local families for support during their assignment at Sheppard AFB. The goal of this program is to foster connections, reduce isolation, and improve the mental health of airmen stationed at Sheppard. The initial phase would target 20 to 40 airmen, with plans to expand to 200 pairings. This program would specifically target people on their first permanent assignment who need family support. The local family would adopt this airmen for the term of their stay (2 or 3 years). The families would be responsible for checking in with the airmen, ensuring they have a place to go for the holidays, and inviting them to share a meal. In general, the local families would provide the family support these airmen need during their assignment. Mr. Kitchens noted that discussions are ongoing to expand this program to NATO and Saudi military families. Support for those families would include English language programs through MSU and community integration efforts. Mr. Kitchens explained to the Board that he would ask the WFEDC to share the cost of this program with the WF4BSTC. Mr. Kitchens detailed that the cost to the WFEDC would be $35,000 for staffing, $3,000 for the bus costs, and $2,000 for "family reunion" style gatherings for all the participants in the Home Away from Home Program, for a total of $40,000 annually. The initial approval of this program would be for 2025, with a reevaluation scheduled after one year to assess the program's effectiveness. Several board members asked for clarification on the annual cost. Mr. Kitchens confirmed that the cost for the WFEDC would be$40,000 annually. Mr. Lane asked when this program would begin. Mr. Kitchens said they are planning to start in January or February. Mr. Lewis asked if the airmen were already being bused to Target because he had seen them from his office building. Mr. Kitchens explained that adjustments to the bus route have already improved the airmen's access to shopping and dining, which has improved morale. The Board and Mr. Hegglund asked several questions to clarify funding and formulate a proper motion. Mr. Lane asked if there were any further questions and then closed the discussion VVFEDC MINUTES 11/21/2024 PAGE 2 OF 4 on the item. 4. CONSIDERATION OF A FUNDING REQUEST FROM THE WICHITA FALLS CHAMBER OF COMMERCE FOR THE PROPOSED RETAIL ATTRACTION PROGRAM. Mr. Lane asked Mr. Kitchens to present his Retail Attraction Program Proposal. Mr. Kitchens discussed a proposal to address the City's retail underdevelopment, highlighting the background and challenges. The City is losing significant revenue due to a lack of retail options. Also, retail recruitment strategies have shifted to a more aggressive, proactive strategy requiring dedicated efforts and partnerships. Mr. Kitchens suggested that the best way to combat this challenge is to hire a consulting firm, Retail Strategies, based in Birmingham, Alabama, with a very large office in Fort Worth. This company has been instrumental in helping companies grow their businesses. Fifty percent of their business is dedicated to assisting retailers to decide where to locate (site selectors for large big-box retail). Twenty-five percent of their business is committed to helping communities attract quality retail companies. And the other twenty-five percent is dedicated to urban redevelopment projects. He would like to engage the firm to identify retail gaps, target high-value retailers, and develop proposals to attract businesses. They would focus on attracting national, regional, and secondary retailers rather than third-tier or low-quality options. Mr. Kitchens then discussed the implementation of the program. He explained that this partnership would be a three-year commitment with an annual cost of$82,500 from the WFEDC and $82,500 from the WF4BSTC. The company and the Chamber will aim to reach 100 targets in the first year, yielding approximately 8 to 10 viable leads. Progress will be monitored through metrics, tracking the quality and the quantity of retailer meetings. Mr. Lane confirmed that the annual cost for each corporation would be $82,500 and clarified that the strategy is a three-year plan with flexibility for termination if the goals are not met. Mr. Toogood asked how demographic and market data would influence retailer recruitment. He also expressed concerns about past failures, such as the Dillard's department store leaving due to inadequate support. Mr. Kitchens explained that data drives retailer decisions and that the City meets many demographic criteria for desired retailers. Mr. Kitchens explained that the challenges with Dillard's were due to disputes with mall ownership and inadequate property infrastructure. He noted that business was good for them in Wichita Falls, and they would like to be back in the community. Mayor Short jokingly asked if Dillard's would be open for Christmas shopping next year. Mr. Kitchens responded optimistically, emphasizing the potential for Dillard's or similar high- quality retailers to return under the right conditions. Mr. Lane highlighted the importance of proactive recruitment, noting that major retailers now rely on consultants to manage site selection and development partnerships. A discussion was brought up about the Academy shopping center. Mr. Kitchens confirmed that some existing places might be suitable but emphasized the need for development partners to build new, suitable retail spaces. Mr. Lane invited any further questions. No further questions were posed. 5. EXECUTIVE SESSION. Mr. Lane adjourned the meeting into executive session at 2:54 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. 6. MOTIONS. ENGAGE SHEPPARD PROGRAM Mr. Toogood made a motion to approve funding for the Engage Sheppard Program WFEDC MINUTES 11/21/2024 PAGE 3 OF 4 presented by the Chamber of Commerce in the amount of $40,000 (half of the entire funding), which includes $35,000 for staffing, $3,000 for bus service costs, and $2,000 for the Home Away from Home Program's "family-reunion-style" event. Seconded by Mr. Hillery and with no comments or discussion made by the public, the motion carried 4-0. RETAIL ATTRACTION PROGRAM Mr. Hillery moved to approve funding for the Chamber's Retail Attraction Program in the amount of $82,500 (half of the entire funding), which includes $27,500 for the Retail Strategies Consulting Services, $45,000 for Chamber staffing, and $10,000 for sales support. Seconded by Mr. Lewis and with no comments or discussion made by the public, the motion carried 4-0. 7. 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 WFEDC MINUTES 11/21/2024 PAGE 4 OF 4