4A Wichita Falls Economic Development Minutes - 01/21/2014MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
January 21, 2014
PRESENT:
Gary Shores, President
§ Members
Dick Bundy, Vice Preside nt/Sec.- Treasurer
§
Reno Gustafson
§
Darron Leiker
§
Dave Lilley
§
Glenn Barham, Mayor
§ City Council
Kevin Hugman, Assistant City Manager
§ City Staff
Miles Risley, City Attorney
§
Linda Merrill, Recording Secretary
§
Henry Florsheim, President/CEO § Chamber of Commerce & Industry
Kevin Pearson, Executive Vice President, §
Economic Development §
Michael Paris, Vice President, §
Workforce Development §
Randy Funston
1, CALL TO ORDER
§ Excalibur Paints
President Gary Shores called the meeting to order at 4:08 p.m.
2. APPROVAL OF MINUTESIREPORT OF FINANCIAL CONDITION
Darron Leiker moved for approval of the December 12, 2013 minutes.
Seconded by Dave Lilley, the motion carried.
3. CONSIDER CHANGES TO THE EXCALIBUR PAINT & COATINGS RETENTION &
EXPANSION PROJECT
Kevin Pearson followed up with Randy Funston after the December 12, 2013
meeting of the WFEDC, to present its offer regarding changes to the incentive
agreement. Mr. Funston is present at today's meeting to continue the discussion, and
present two options for the Board to consider.
Option One
Excalibur agrees to waive Phase 3 advances in exchange for the following:
• Reduce time to access Phase 2 funding from six months to three months after
reaching 24 full -time employees (FTE)
• Extend contract for 36 months
• Begin loan payment waivers after Excalibur averages 37 FTE's for three months (if
prior to 36 -month extension)
• Reduce average employment level from 56 to 37
H:1_legaMA, 4B, TIFSI4A Corpl4a Minutes1201412014 .1.2112014.1.21 4a minutes.doc
WFEDC — Minutes of January 21, 2014
Option Two
Leave performance agreement as is with the exception of the following amendments:
• Reduce time to access Phase 2 funding from six months to three months after
reaching 24 FTE's
• Extend contract for 60 months
• Begin loan payment waivers after Excalibur averages 56 FTE's for six months (if
prior to 60 -month extension)
K,
Mr. Shores thanked Mr. Funston for his presentation. Mr. Funston thanked the
Board for their time and left the meeting.
Mr. Leiker said he would support a contract extension of 36 months, but would
not support changing the terms on the number of jobs required. He is also not in favor of
reducing the time to access Phase 2 funding from six months to three months.
Mr. Pearson said any extension would be the second one granted to Excalibur.
The agreement was first extended for 18 months. Mr. Risley said there is no extension
beyond February 23, at which point Mr. Funston would have to begin repaying the
current loan. He provided in the notice of meeting for the consideration of changes to
modify incentives to extend the time period by 36 months, and reduce the amount of the
project to $1 million, should the Board desire to make such a motion.
Mr. Leiker moved to grant the extension of 36 months, eliminate Phase 3,
making a total commitment of $1 million, without changing any other terms.
Seconded by Mr. Bundy, the motion carried.
4. EXECUTIVE SESSION
Mr. Shores adjourned the meeting into executive session at 4:31 p.m. pursuant
to TEXAS GOVERNMENT CODE § §551.071, 551.072, and 551.087. He closed the
executive session and announced the meeting back into regular session at 4:43 p.m.
5. ADJOURN
On the motion by Dave Lilley, and seconded by Dick Bundy, the meeting
adjourned at 4:43 p.m.
Gary Mores, resident