Loading...
4A Wichita Falls Economic Development Minutes - 08/14/2025 (2) MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION AUGUST 14, 2025 PRESENT: Leo Lane, President § WFEDC Members David Toogood, Vice President § Brent Hillery, Treasurer/Secretary § Reno Gustafson § Tim Short, Mayor § Mayor & Councilors Austin Cobb, Councilor-at-Large § Jeff Jenkins, City Manager § City Administration Paul Menzies, Assistant City Manager § James McKechnie, Deputy City Manager § Kinley Hegglund, City Attorney § Terry Floyd, Dir of Development Services § Monica Aguon, Senior Assistant City Attorney § Stephen Calvert, CFO & Finance Director § Chris Horgen, Public Information Officer § Paige Lessor, Exec. Legal Asst./Recording Sec. § Ron Kitchens, CEO § Wichita Falls Chamber of Commerce Vicki Pratt, Partner § Moriah Williams, Partner § Glenn Barham, President § SMAC Dr. DeAndrea Davis, Director § i.d.e.a. WF - MSU Texas Jeannie Hilbers § ABSENT Craig Lewis, Board Member § WFEDC 1. CALL TO ORDER. Mr. Leo Lane called the meeting to order at 2:30 p.m. 2. CONSENT AGENDA. a. Approval of Minutes (June 19, 2025) Mr. David Toogood made a motion to approve the minutes as presented. Seconded by Mr. Brent Hillery and with no further questions or comments from the Board or the public, the motion carried 4-0. WFEDC MINUTES 8/14/2025 PAGE 1 OF 11 b. Financial Report Mr. Paul Menzies reported that sales tax collections are running approximately one percent ahead of both budget projections and the prior year's figures, reflecting positive economic activity. He noted that the Corporation experienced a significant revenue increase over the past month, primarily attributed to strong sales tax performance and higher interest income. He advised that the WFEDC currently has approximately $15.5 to $15.6 million in unencumbered cash available for potential project expenditures. Mr. Lane commented that it was encouraging to see how much interest income the Corporation is currently earning on its cash balance. Mr. Menzies confirmed that the interest earnings are calculated based on the total cash balance ("the top number"). Mr. Lane invited additional comments or questions. No comments were made, nor questions asked. Mr. Hillery made a motion to approve the consent agenda. Seconded by Mr. Gustafson, the motion carried 4-0. 3. DISCUSSION AND POSSIBLE ACTION RELATED TO FY 2026 BUDGET PRESENTATIONS: a. Sheppard Military Affairs Committee (SMAC) • Request Mr. Glenn Barham presented on behalf of SMAC, thanking the Board for their time and noting the organization's continued collaboration with the Wichita Falls Economic Development Corporation (WFEDC). Mr. Barham stated that SMAC's FY2026 budget request is identical to last year's, with no increase in the amount requested. The total request from the WFEDC is $160,000, which represents the same level of support provided in the prior fiscal year. The overall SMAC budget for FY2026 totals $322,000, inclusive of the WFEDC's requested contribution. He explained that while some budget line items shifted to reflect actual spending trends, he adjusted other areas downward to maintain a flat total budget. • Purpose and Mission The requested funding supports SMAC's mission to protect and promote the long-term viability of Sheppard Air Force Base (SAFB), specifically through advocacy and initiatives that: • Support the 82nd Training Wing and 80th Flying Training Wing; • Address wind farm encroachment concerns along low-level military training routes critical to pilot training operations; and • Foster partnerships between local, state, and federal stakeholders to preserve Sheppard's military value. Mr. Barham noted a new wind farm project in the Throckmorton area with turbines expected to reach up to 700 feet in height, underscoring ongoing concerns about airspace WFEDC MINUTES 8/14/2025 PAGE 2OF11 compatibility and training impacts. • Current and Recent Projects SMAC continues to collaborate closely with the Wichita Falls Chamber of Commerce on community visits to Washington, D.C., where members engage with the Texas congressional delegation and Air Force leadership at the Pentagon. o Additional highlights include: • Defense Economic Adjustment Assistance Grant(DEAAG): SMAC worked with the City to secure this grant, which will fund runway lighting improvements as part of the center runway replacement project at Sheppard AFB. • The Landing Zone Project: In partnership with the Dillard Family Foundation, SMAC funded and completed facility improvements for Airmen-in-Training, finalized earlier in the current fiscal year. • Budget Adjustments and Line Item Notes Mr. Barham reviewed several notable adjustments in the proposed FY2026 budget: o Consulting Services: Reduced from $30,000 to $20,000. As a 501(c)(3) organization, SMAC's lobbying expenditures must remain below 20% of total operating costs. Actual expenditures have been well below the previous allocation. o Dues and Memberships (Line 25): Increased to reflect SMAC's new membership with the Wichita Falls Chamber of Commerce, which was not included in prior budgets. o Miscellaneous Expenses (Line 17): Reduced by 50% due to consistent overfunding in prior years. He emphasized that these adjustments were made to remain fiscally responsible while keeping the total funding request level with last year's. Mr. Barham concluded by reiterating SMAC's appreciation for the WFEDC's partnership and ongoing support. He stressed that this collaboration is crucial for safeguarding Sheppard Air Force Base's missions and the local economic stability that depends on it. He stated that if the requested funding were not fully met, SMAC would adapt by utilizing reserves and increasing donor outreach. Mr. Barham formally requested the WFEDC's continued financial support at the $160,000 level for FY2026. Mr. Toogood raised a question concerning potential overlap between SMAC and the Chamber of Commerce, noting that the Chamber's new budget includes a dedicated staff position for military affairs. He asked how both organizations—each with separate leadership and potentially differing objectives—would ensure that their activities remain aligned, efficient, and free of duplication or conflicting priorities. WFEDC MINUTES 8/14/2025 PAGE 3 OF 11 Mr. Barham clarified that while both organizations are engaged in supporting Sheppard Air Force Base, their missions and functions are distinct and complementary: • SMAC's Role: o SMAC serves as the political and advocacy arm for Sheppard, focusing specifically on protecting the long-term mission and operational viability of the base. o SMAC directly communicates with Sheppard's leadership to determine advocacy priorities and legislative needs. o The organization represents those interests during Washington, D.C. visits, where it can act politically in ways that base leadership cannot. o SMAC's efforts center on issues such as airspace preservation, military readiness, and legislative advocacy— not on community or civilian quality-of-life initiatives. • Chamber's Role: o By contrast, the Chamber of Commerce's military affairs focus addresses quality- of-life and workforce-related issues, such as: • The "Five and Thrive" initiative (improving the lives of military families); • Professional licensure reciprocity for military spouses and personnel relocating to Texas. o These are non-political, community support functions, which SMAC has never undertaken and are outside its mission scope. Mr. Barham acknowledged that some ongoing discussions may eventually evolve or refine the coordination between SMAC and the Chamber, but emphasized that their current roles remain clearly differentiated and complementary. Mr. Ron Kitchens added that the Chamber has historically maintained two roles dedicated to military affairs. The recent change simply the level of expertise and leadership rather than duplicating efforts. o Previously, the Chamber employed a military spouse liaison for Sheppard engagement. o Following a transition, the Chamber hired Kirk Peterson, a former Deputy Commander at Sheppard Air Force Base, to strengthen the community's direct connection with base leadership and expand local advocacy. o Mr. Kitchens explained that while this staffing change increases cost, it represents an elevated capability rather than redundancy. After the clarification and explanations, no other questions were raised. Mr. Barham thanked the Board, and Mr. Lane expressed appreciation for his time and presentation. b. i.d.e.a.WF Dr. DeAndrea Davis presented on behalf of i.d.e.a.WF, expressing gratitude to the WFEDC for its long-standing partnership and financial support, emphasizing that the program's continued success depends heavily on that relationship. • Program Overview and Recent Accomplishments WFEDC MINUTES 8/14/2025 PAGE 4OF11 Dr. Davis reflected on her first year as director, explaining that her initial goals were to: o Gain a full understanding of the program's operations; o Reimagine and refresh the competition with new creative approaches; and o Enhance marketing and storytelling to better communicate i.d.e.a.WF's value to the community and potential sponsors. To accomplish this, the team leveraged MSU's internal marketing expertise to produce professional collateral that clearly explains the program's mission, process, and impact. These materials proved effective in fundraising, helping the organization achieve its highest private fundraising total to date — $55,100. Recognizing the need to reach younger entrepreneurs and a broader audience, i.d.e.a.WF expanded its social media presence from Facebook to Instagram, which better aligns with its target demographic. Dr. Davis emphasized that 2025 focused on reintroducing the program to the community and building renewed excitement around entrepreneurship in Wichita Falls. • Program Goals and Future Focus Looking ahead, Dr. Davis identified several key priorities for the upcoming program cycle: o Expanding outreach to underrepresented participant groups, specifically Sheppard Air Force Base personnel and Burkburnett residents, both of which are geographically close and ideal prospects for engagement. o Building stronger follow-up relationships with past competition winners to ensure their businesses not only launch successfully but also remain sustainable long- term. The i.d.e.a.WF team intends to serve as a continued resource, connecting alumni to community partners and guidance when challenges arise. Dr. Davis noted that these initiatives align with broader community collaboration efforts between MSU, the City of Wichita Falls, and Sheppard AFB, ensuring that the competition continues to complement regional economic development goals. • Program Participation and Process Ms. Jeannie Hilbers provided an overview of the current competition cycle, reporting 13 participants this year—consistent with prior years' averages of 12 to 16 entrants. She explained the structure of the competition: o Participants complete six educational classes covering essential business topics, including writing business plans, understanding financial statements, preparing sales forecasts, conducting market research, and developing marketing strategies. o Of the current group, four participants are new startups, while nine represent business expansions, such as companies seeking to purchase equipment or broaden service territories. o All participants are currently finalizing their written business plans, which are due next Tuesday. WFEDC MINUTES 8/14/2025 PAGE 5OF11 o Once submitted, plans will be evaluated by a panel of judges, followed by coaching on oral presentation skills. o Finalists will present and winners will be announced on October 15 at MSU Texas. • Funding Request Dr. Davis concluded the presentation by requesting continued WFEDC support in the amount of $50,000, consistent with prior years. She stated that the program budget remains straightforward and stable, with funds directed toward competition operations, participant training, and community engagement. Mr. Lane asked how this year's participant numbers compare to previous years. Ms. Hilbers responded that the figures are typical and healthy, aligning closely with historical averages. Dr. Davis and Ms. Hilbers thanked the Board for its ongoing investment in the i.d.e.a.WF program, emphasizing that the collaboration between MSU, WFEDC, and the local business community continues to be instrumental in fostering entrepreneurship and sustainable business growth in Wichita Falls. No further questions were raised. c. Chamber of Commerce Mr. Ron Kitchens, CEO of the Wichita Falls Chamber of Commerce, presented the Chamber's annual funding request and organizational update. Mr. Kitchens began his presentation by expressing appreciation for the opportunity to address the Board. • Budget Transparency and Accountability Mr. Kitchens emphasized the Chamber's commitment to financial clarity and accountability, particularly because it manages both public and private funding sources. Over the past year, Chamber leadership conducted a comprehensive analysis of all expenses, including labor and overhead, to ensure that each program and partner organization receives an accurate allocation of costs. Key improvements include: o Detailed allocation sheets for shared and exclusive staff assignments; o Transparent accounting for public dollars (from the WFEDC and 4B Board) versus private dollars (membership dues, sponsorships, fundraising, and ticket sales); and o Revised accounting structure beginning in the next fiscal year to ensure each organizational division manages its own discrete, trackable budget. Mr. Kitchens stated this approach ensures full transparency and enables staff to make data- informed financial decisions, improving both efficiency and trust in the Chamber's operations. • Core Focus Areas and Ongoing Work WFEDC MINUTES 8/14/2025 PAGE 6 OF 11 The Chamber continues its daily mission of business retention, expansion, and attraction, alongside public policy advocacy and military affairs coordination. Mr. Kitchens highlighted the following key initiatives and challenges: O 1. Military Affairs • The Chamber's role in military affairs has expanded significantly, complementing the efforts of the Sheppard Military Affairs Committee (SMAC). • The Chamber engages in an average of 150 airmen community tours per week and hosts 50 annual meetings with senior military leaders. • The organization also co-leads the annual Washington, D.C. advocacy trip in partnership with SMAC. • Mr. Kitchens acknowledged the need for improved expense allocation and tracking in this area to ensure sustainability and accountability. O 2. Site Readiness and Land Development • Wichita Falls currently faces a shortage of available industrial and commercial land for prospective employers. • The Chamber recently showed the same single parcel of land to four different prospects— highlighting the urgency of expanding available sites. • Plans include developing an aviation-related industrial park near the airport, as well as additional industrial and business park properties near existing facilities. • The Chamber is working to secure land acquisition funding and engineering resources, emphasizing that site readiness is essential to maintaining competitiveness. • Long-term, Mr. Kitchens envisions a major 1-44 development site, but stated that interim steps must be taken now to avoid losing project opportunities. O 3. Downtown/Urban Core Redevelopment • The Chamber has assumed a larger role in traditional economic development after Downtown Wichita Falls Development shifted its focus to visitor-based strategies. • Mr. Kitchens said the Chamber will lead efforts to inventory underutilized or delinquent downtown properties, including those behind on taxes or out of code compliance, to prioritize redevelopment opportunities. • The Chamber also intends to create a database of move-in-ready spaces, especially for restaurants and retail. ► He noted that three fully equipped restaurant spaces are currently vacant —including one available for$1,000/month—but no structured plan exists to market or fill them. • A new community support strategy for restaurants and small businesses will be developed to promote long-term stability rather than one-time ribbon-cuttings. WFEDC MINUTES 8/14/2025 PAGE 7 OF 11 0 4. Visitor and Tourism Integration • The Chamber is aligning efforts with Discover Wichita Falls and the O'Reilly Hotel Group to attract and retain visitors who may also consider business investment. • Citing data from Development Counselors International (DCI), Mr. Kitchens noted that one of the top three reasons CEOs select a community for relocation is having visited it and developed a favorable impression. • Accordingly, the Chamber is incorporating visitor engagement strategies into major community events, such as placing recruitment inserts in Hotter'n Hell Hundred rider packets, inviting visitors to explore relocation or business opportunities. 0 5. Housing and Workforce Development • Wichita Falls anticipates a large influx of 6,000-7,000 construction workers over the next several years due to major regional projects. • The Chamber is proactively seeking to convert temporary workers into permanent residents by promoting home ownership and community integration. • However, the community faces a lot of development costs of approximately $40,000 per lot, which local developers lack the capacity to absorb. • Mr. Kitchens emphasized the need for a public-private partnership to spur housing development, noting that even attracting 10% (=500 families) of incoming workers could exceed the city's population growth of the past four decades combined. • Organizational Capacity and Staffing Mr. Kitchens reported that the Chamber's staff has decreased from 14 to 9 employees over the past three years, primarily by design to ensure quality over quantity in hiring. o The current team has prioritized maintaining excellence despite being short- staffed. o He noted that while this lean structure has worked thus far, future growth will require adding personnel to sustain momentum and project capacity. • Chamber Financial Model and Funding Request Mr. Kitchens shared that the Chamber is no longer primarily membership dues-funded. Instead, its operations rely heavily on sponsorships, ticket sales, and event revenue, consistent with national trends in chamber sustainability. He requested an increase in funding from the WFEDC, stating that the Chamber remains a responsible steward of public funds and has demonstrated strong accountability, measurable outcomes, and community alignment. Mr. Kitchens expressed gratitude for the WFEDC's continued partnership and trust, affirming the Chamber's dedication to transparency, strategic growth, and collaborative leadership in advancing the economic vitality of Wichita Falls. Mr. Toogood thanked Mr. Kitchens for providing the detailed budget breakdown included WFEDC MINUTES 8/14/2025 PAGE 8OF11 in the Chamber's submission. He noted that the clarity was helpful but raised several questions about the organizational structure and terminology used in the document. Mr. Toogood asked whether the listed titles in the budget represented divisions, partners, or separate organizations. Ron Kitchens explained that the Chamber is transitioning to a unified "umbrella" model under One Wichita Falls, designed to provide clear lines of accountability and eliminate cross- subsidization between programs. o The new structure will ensure that each division or affiliate organization is financially self-sustaining and can operate independently if needed. o Mr. Kitchens noted, "I'm not someone who believes something should continue just because it's always existed. Each entity must justify its investment and performance." o By January or February, each operational arm is expected to become an independent corporation, allowing the organization to"unbolt"or discontinue components if they are no longer viable. Mr. Toogood then asked for clarification of specific organizational titles mentioned in the Chamber's materials: o Wichita Falls Chamber of Commerce: Mr. Kitchens stated this refers exclusively to the membership-based organization, which focuses on member relations and event programming. o One Wichita Falls: Identified as the parent organization, or administrative umbrella, for all divisions. • Currently operating under the Chamber, One Wichita Falls will soon assume all overhead responsibilities, employee management, retirement plans (401k), and tax structure oversight. • Each sub-entity beneath it will maintain its own tax designation (e.g., 501(c)(3) or 501(c)(6)). o Forward Wichita Falls: Described as the primary marketing and business development arm —"the meat eaters," as Kitchens phrased it. • This division handles business recruitment, retention, and redevelopment, functioning as the core economic development team. • Previously referred to internally as the"jobs team", Forward Wichita Falls has been formalized as a distinct operational unit to maintain financial separation and budget clarity. o Military Affairs: Mr. Kitchens confirmed that the Military Affairs division remains part of this organizational structure, currently operating under the Forward Wichita Falls umbrella until full administrative realignment is completed early next year. Mr. Lane confirmed that the total funding request presented to the WFEDC includes allocations for Forward Wichita Falls and Military Affairs, and asked for confirmation of the combined total. After some brief calculation and clarification between Mr. Kitchens and Moriah WFEDC MINUTES 8/14/2025 PAGE 9 OF 11 Williams, the total FY2026 funding request was confirmed at $2,359,000. Mr. Lane then inquired about the prior year's funding level, to which Mr. Kitchens responded that the previous year's allocation was $1.9 million. This represents an increase of roughly $459,000 in the Chamber's funding request for the upcoming fiscal year. Mr. Gustafson asked Mr. Kitchens about the Chamber's staffing needs, referencing his earlier comments about being short-staffed. Mr. Gustafson asked, hypothetically, if the Chamber could "throw a dart at the wall" and hire all the additional staff it needed, how many positions that would entail, and what the estimated cost might be. Mr. Kitchens responded that his ideal staffing plan would include three additional employees: o One professional-level position, comparable to existing senior staff such as Moriah and Vicky; o One marketing and event branding/product development specialist; and o One administrative support person. He estimated that the total cost, including salaries and benefits, would be approximately $400,000 or less. Mr. Toogood followed up, asking whether those additional positions were included in the current funding proposal. Mr. Kitchens clarified that they were not included in the FY2026 funding request but are part of his future planning strategy. He noted his intent to request additional administrative support funding from the 4B Board, explaining that 4B has historically been a strong partner in co-funding programmatic efforts such as: o The lobbying cost share with WFEDC; o The retail recruitment initiative; and o The military bus program, which helps connect Sheppard Airmen to the community. Mr. Kitchens said his plan is to request$200,000 from 4B, which would fund one additional professional staff member and one part-time administrative position to support Chamber operations. Mr. Lane asked about the $43,000 line item associated with the military bus program, noting a similar item appears in the 4B budget. Mr. Kitchens clarified that this figure represents fundraising revenue and expenses related to enhancing the Airmen welcome program, not public funding. The goal is to improve the quality of the welcome packages provided to new Airmen touring the community. Currently, the Chamber provides a basic plastic bag with minimal items; The Chamber intends to upgrade to a custom cloth bag containing snacks, a cold bottled water, coupons, and discount information for local restaurants (e.g., Chick-fil-A), and QR codes and links for community resources and bus routes. Mr. Kitchens noted this initiative will be entirely funded through private fundraising efforts and appears under both revenue and expenses as a net-zero line item. WFEDC MINUTES 8/14/2025 PAGE 10OF11 Mr. Lane also inquired about the$10,000 allocation for a steering committee event, asking what it entailed. Mr. Kitchens explained that this event is a joint collaboration with SMAC and Midwestern State University (MSU), continuing the tradition of hosting the closing event for the annual Independence Day and military appreciation activities. The event supports relationship- building between community leaders, MSU, and Sheppard Air Force Base, and is part of ongoing efforts to strengthen the Success Center initiative funded by the WFEDC. The previous year's event was held at the MSU President's House, featuring a chuckwagon dinner; previously, expenses were covered through the marketing budget, but a dedicated line item was added for transparency. Mr. Lane then restated that the total funding request from the Chamber of Commerce is $2,359,000 for FY2026. Mr. Kitchens confirmed that the total is consistent with earlier discussion. This represents an increase from last year's $1.9 million allocation, as previously established. No further comments were made, and no questions were asked. 4. EXECUTIVE SESSION. Mr. Lane adjourned the meeting into executive session at 1:41 p.m. pursuant to Texas Government Code §§§§ 551.072, 551.087, 551.071, and 551.074. He announced the meeting back into regular session at 2:03 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 Mr. Toogood made a motion to approve the FY2026 budget funding requests as follows: SMAC: $160,000.00 i.d.e.a.WF: $50,000.00 Chamber of Commerce: $2,359,000.00 Seconded by Mr. Gustafson and following no public comment, the motion carried 4-0. 6. ADJOURNED. Mr. Lane asked if the public had any questions or comments. Since there were none, he adjourned the meeting at 2:05 p.m. Leo Lane, President WFEDC MINUTES 8/14/2025 PAGE 11 OF 11