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4A Wichita Falls Economic Development Minutes - 03/26/2026 MINUTES OF THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION MARCH 26, 2026 PRESENT: - Leo Lane, President § WFEDC Members Brent Hillery § Reno Gustafson § Craig Lewis § Tim Short, Mayor § Mayor &Councilors Austin Cobb, Councilor-At-Large § Jeff Jenkins, City Manager § City Administration James McKechnie, Deputy City Manager § Paul Menzies, Assistant City Manager § Blake Jurecek, Assistant City Manager § Kinley Hegglund, City Attorney § Stephen Calvert, CFO & Finance Director § Monica Aguon, Deputy City Attorney § Paige Lessor, Exec Legal Assist/Recording Sec. § Moriah Williams, CEO § Forward Wichita Falls Vicki Pratt, Partner § Lauren Williams, Director-Urban Dev. § Loftin Davoult § Ron Duncan, President § Magic Aire Byron Baber, Vice President § WPT Power Corporation David Coleman § Members of the Public Dr. DeAndrea Davis - MSU § Kevin Hunter § David Gray § Scott Poenitzsch § John Richoux § Lynn Walker, Writer § Times Record News ABSENT: David Toogood, Vice President § 1. Call to Order. Mr. Leo Lane called the meeting to order at 2:30 p.m. 2. Consent Agenda. WFEDC MINUTES 03/26/2026 PAGE 1 OF 6 a. Approval of Minutes (January 15, 2026) Mr. Lane opened the floor for comments on the minutes from the January 15, 2026 meeting. No comments were made. Mr. Lane then moved to the Financial Report. b. Financial Report Mr. Paul Menzies presented the financial report, noting that sales tax revenues are performing well, currently running approximately 7% ahead for the first third of the fiscal year compared to the same period last year. He then highlighted the Corporation's financial position, reporting an estimated$19.6 million in unencumbered funds available for new projects. He further noted that staff anticipates one or more previously committed projects may roll off or expire in the near term, which would increase the available fund balance. These adjustments are expected to be reflected in the next month's financial report. Mr. Lane inquired whether the expiration of these projects would result in an increase to the unencumbered balance, to which Mr. Menzies confirmed that it would. There were no further questions or discussion regarding the financial report. Mr. Craig Lewis made a motion to approve the consent agenda as presented. Seconded by Mr. Reno Gustafson, and with no further discussion or public comment, the motion carried 4- 0. 3. Discussion and possible action related to the proposed incentive package for WPT Power. Ms. Moriah Williams presented a proposed economic development incentive package for WPT Power, a long-standing Wichita Falls manufacturer that has been in operation locally since 1992. She noted that the company currently employs 30 full-time employees with an average annual wage of approximately$73,350. Ms. Williams explained that WPT Power has identified the need to expand its existing facility by approximately 10,000 square feet and invest in additional equipment. The expansion would allow the company to relocate and integrate a full product line currently based in Shanghai, China, into its Wichita Falls operations. She emphasized that this represents a significant opportunity to bring additional manufacturing capacity and operations back to the local community. As part of the expansion,WPT Power anticipates creating ten (10) new full-time positions, increasing its total local workforce while maintaining its current employment levels. To support the project, staff recommended approval of a two-part incentive package. The first component is a forgivable loan in the amount of $550,000, to be paid over a two-year period rather than as a lump sum. The loan would be forgiven over a five-year term, contingent upon the company retaining its existing workforce and meeting job creation commitments. The second component is a cash-for-jobs incentive in an amount not to exceed $90,000, structured at $7,500 per new full-time position, for up to twelve (12) positions. Payments would be made only after each qualifying employee has been employed for a minimum of six(6) months, ensuring sustained job creation. Ms. Williams noted that representatives from WPT Power were present to answer any questions from the Board. Mr. Lane expressed appreciation to the company for its continued investment in Wichita Falls and highlighted the significance of bringing manufacturing operations from Shanghai to the WFEDC MINUTES 03/26/2026 PAGE 2 OF 6 local community. He then opened the floor for questions; however, the Board raised no additional questions or discussion. 4. Discussion and possible action related to the proposed incentive package for Aerospace N3xt. Mr. Kinley Hegglund stated that staff pulled this item as it was not ready. 5. Discussion and possible action related to the proposed expenditure for the redevelopment of 3111 Midwestern Parkway for costs incurred. a. The Effectus Group b. Dunaway c. Bennett Partners In an amount not to exceed$400,000. Presentation Ms. Williams presented an overview of the Sikes Senter Mall redevelopment project, including a timeline of actions taken to date and the current request for additional funding. She began by summarizing previously approved expenditures by WFEDC and City Council, including approximately $500,000 for due diligence activities such as engineering assessments, environmental studies, appraisals, and legal review. She noted that the property appraised at approximately$26 million for land value alone, highlighting its significance as a major asset. Ms. Williams explained that the property was purchased in October for $27.5 million, funded through a combination of WFEDC funds, temporary 4B funding (since repaid), and an $18 million bank note currently structured as interest-only. She also clarified that $300,000 in previously approved seed funding is being used strictly for ongoing operations, including staffing, utilities, and maintenance. She then outlined key steps taken since the acquisition, including onboarding Cypress Management to oversee operations, establishing financial and reporting systems, addressing tenant lease matters, and selecting professional firms through RFP processes. The Site Investigation Report was completed by Dunaway, and Bennett Partners was selected to develop the master plan and design guidelines, which she described as a "vision plan" to guide future development rather than a fixed design. Ms. Williams noted that staff continues to engage with prospective developers and is working through TIF-related discussions. She stated that interest in the project remains active and ongoing. The project has also been rebranded as "The Corridor at University Town Center." Looking ahead, she indicated that staff anticipates completing the master plan by mid- year, identifying a development partner, and moving into negotiations, with a long-term goal of executing a development agreement and closing on a sale by the end of 2026. Ms. Williams also addressed common questions, clarifying that no developer has withdrawn from the project, as no formal agreement has been in place,and that while there has been outside interest in purchasing the property, staff is focused on ensuring a well-planned redevelopment approach. She concluded by presenting a request for up to $400,000 to continue work with the Effectus Group as owner's representative, reimburse costs for the completed Site Investigation Report, and fund completion of the master plan and associated renderings. She noted the WFEDC MINUTES 03/26/2026 PAGE 3 OF 6 importance of retaining these materials to guide future development efforts. Following the presentation, Ms. Williams invited questions from the Board regarding the project timeline and overall progression. Board & Council Comments Mr. Lane commented on the pace of the project, noting that a significant amount of progress has been made in a relatively short period of time since the acquisition in October. He stated that staff's efforts have positioned the City and WFEDC in a strong negotiating position with potential developers. Mr. Lane emphasized that the work completed to date—including development of a vision for the master plan, operational stabilization of the property, and renegotiation of tenant leases—has strengthened the overall value and marketability of the site. Mr. Lane further noted that much of the leasing activity has been addressed, with limited tenant agreements extending beyond 2026. He credited staff and partners, including Vicki Pratt, Cypress Management, and Attorney Todd Davenport, for their ongoing work in renegotiating leases and managing tenant relationships. He also remarked on the high level of coordination and communication required, indicating that staff continues to actively manage the project on a daily basis. Mayor Short inquired about prior developer interest in the property before its acquisition. Ms. Williams confirmed that prior to closing, multiple developers had expressed interest and provided presentations regarding potential redevelopment opportunities. Mayor Short then asked whether those developers were still engaged, to which Ms. Williams confirmed that they remain active and have not withdrawn from consideration. Mayor Short further noted that interest in the project increased following the City's acquisition of the property, explaining that the purchase made the project more tangible and viable to outside parties. Ms. Williams agreed, stating that the acquisition generated additional momentum and attention from the development community. Ms. Williams also advised that staff continues to receive new interest from prospective users and developers. She noted that several companies not currently operating in Wichita Falls have expressed interest in locating at the site and have inquired about submitting letters of intent. However, she explained that because the property is expected to be sold to a development partner, these prospective tenants will ultimately need to coordinate directly with the selected developer. In the interim, staff continues to communicate with interested parties, providing updates on the project timeline while making no commitments. Ms.Williams emphasized that interest in the project remains strong and ongoing,with staff maintaining active discussions with multiple parties as the project continues to progress. Public Comment During public comment, multiple individuals addressed the Board regarding the redevelopment of 3111 Midwestern Parkway. Comments included questions about prior public statements regarding potential developer involvement, the timing of the property acquisition, and the absence of a development agreement at the time of purchase. Speakers also raised questions regarding project-related expenditures, ongoing carrying costs, and whether the Corporation anticipates recovering its investment upon future disposition of the property. Additional comments addressed the current operational status of the property, including tenant revenue and whether operating income offsets expenses. Questions were also raised WFEDC MINUTES 03/26/2026 PAGE 4 OF 6 regarding the scope of due diligence performed prior to acquisition, including environmental, structural, and demolition-related assessments. Several speakers requested access to project-specific financial information and supporting documentation, including reports and contracts. Comments were made regarding the availability of such information through the City's website and through open records requests. Staff advised that records requests are being processed and that responsive information will be provided in accordance with applicable law. Comments also included questions regarding the use of executive session and the disclosure of information related to potential development partners. It was noted that certain matters related to negotiations and economic development are subject to confidentiality requirements and are not eligible for public disclosure. In response to public comment, Mr. Lane provided general clarification regarding the project approach, stating that the Corporation is working to establish a development framework and position the property for future negotiations, while acknowledging that costs, timing, and outcomes remain subject to market conditions and ongoing planning efforts. Board Member Gustafson also addressed the public, noting that the project involves a significant investment of time and resources and is not expected to be completed immediately. He emphasized that the intent of the effort is to support long-term community development and that certain aspects of the process, including discussions with potential developers, may not be publicly disclosed at this stage. Following the conclusion of public comments and discussion, Mr. Lane asked if there were any further comments. Hearing none, the Board proceeded to the next agenda item. 6. Discussion and possible action related to the proposed assumption of Performance Agreement obligations by United Electric Company, L.P. (Magic Aire) and the release of MA Acquisition Co., LLC from such Performance Agreement. Ms. Williams presented the item regarding the proposed assumption of an existing performance agreement associated with Magic Aire, which has recently been acquired by Kingspan Data Solutions. She explained that, as part of the acquisition, the new ownership entity is requesting to assume the existing performance agreement in full. Ms. Williams emphasized that the request does not involve any modification to the original terms of the agreement. The acquiring entity is not requesting additional funding or changes to performance requirements and intends to continue under the same conditions currently in place. Ms. Williams noted that the agreement includes ongoing obligations related to employment, specifically the retention of 128 employees year over year. She further advised that the company has remained in compliance with the terms of the agreement since its execution. She also provided an update on the financial status of the agreement, stating that approximately$235,294.11 remains outstanding, with the agreement scheduled to be completed in 2030. Ms. Williams described the request as straightforward, involving only the transfer of obligations from the prior entity, Merger and Acquisition Company, LLC, to the new ownership entity following the acquisition. Mr. Lane acknowledged the company's long-standing presence in the community and offered congratulations on its continued success. WFEDC MINUTES 03/26/2026 PAGE 5 OF 6 7. Executive Session. Mr. Lane adjourned the meeting into executive session at 3:09 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 4:27 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. Motions WPT Power Incentive Package Mr. Gustafson made a motion that the Board authorize a forgivable loan to WPT Power in the total amount of $550,000, paid out to the company over two years, with proof of investment, and forgiven over 5 years, contingent on retaining all current employees and hiring 12 new full- time employees. A cash-for-lobs incentive, not to exceed $90,000, paid at a rate of $7,500 per new full-time position created, once the employee has been employed by WPT for a minimum of 6 months. Seconded by Mr. Lewis and with no further comments, the motion carried 4-0. Redevelopment of 3111 Midwestern Parkway Costs Incurred Mr. Brent Hillery made a motion to authorize the WFEDC board president to execute contracts with the Effectus Group and Bennett Partners and reimburse Forward Wichita Falls for the cost of the site investigation report from Dunaway for an expenditure not to exceed $400,000 for said contracts and additional costs to said contracts. Seconded by Mr. Gustafson and with no further comments, the motion carried 4-0. United Electric Company, L.P. (Magic Aire) Mr. Lewis made a motion to authorize UEC-LP to assume the existing performance contract between the WFEDC and MA Acquisition Co., LLC, with a balance of $235,294.11, and to agree that all terms of the contract remain intact. Seconded by Mr. Hillery and with no further comments, the motion carried 4-0. 8. Adjourned. Mr. Lane asked if the public had any questions or comments. Since there were none, he adjourned the meeting at 4:30 p.m. if �.�.✓` oG- tavc Toocct, VP WF Economic Development Corporate n WFEDC MINUTES 03/26/2026 PAGE 6 OF 6