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Res 060-2002 5/21/2002RESOLUTION NO. 6n a RESOLUTION AUTHORIZING AN ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT WITH VERNON COLLEGE AS RECOMMENDED BY THE WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION AND APPROVING AN AMENDMENT TO THE CORPORATION'S FISCAL YEAR 2001 -2002 BUDGET; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS PASSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. WHEREAS, a function of the Wichita Falls Economic Development Corporation ( WFEDC) is to retain jobs and support projects that strive to create a workforce that is complimentary to existing or new businesses; and WHEREAS, on May 13, 2002, the WFEDC met to consider a request from Vernon College to establish an aviation mechanic program; and WHEREAS, the WFEDC has recommended funding start-up costs associated with providing this curriculum at Vernon College in the amount of $378,918. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: SECTION 1. An economic development incentive agreement in the amount of $378,918 is hereby approved in the form of the attached correspondence dated May 14, 2002. SECTION 2. The FY 2001 -2002 Budget of the Wichita Falls Economic Development Corporation is hereby amended in the amount of $378,918 for the economic development incentive agreement with Vernon College. SECTION 3. It is hereby officially found and determined that the meeting at which this resolution was passed was open to the public as required by law. PASSED AND APPROVED this the 21St day of May 2002. TTEST: City Clerk Vernon College Aviation Mechanic Program Vernon College has worked with Lear Siegler, Inc. (LSI) for more than a year to establish an aircraft maintenance program. The program was developed in order to alleviate a shortage of FAA certified aircraft maintenance personnel in the Wichita Falls area. LSI, who has an eight year contract to provide aircraft maintenance for Sheppard Air Force Base, anticipates significant attrition in their workforce at SAFB during the next several years due primarily to retirements; and securing qualified replacements will be essential. To date, the following has been accomplished through the Vernon College and LSI partnership: • The Texas Higher Education Coordinating Board approved Vernon College certifications of Completion in Aviation Mechanic - General, Aviation Mechanic — Airframe, and Aviation Mechanic — Powerplant. • An application for FAA approval and the proposed curriculum for the certificates were submitted to the FAA, and FAA officials made an initial site visit to the Vernon College facility. • Wichita County granted permission to Vernon College to lease an additional 23,000 square feet at the VC Skills Training Center to house the new program. Architects developed a plan for the expansion, and bids for the expansion were opened on May 8. The College is in the process of obtaining funding to conduct the expansion and to purchase equipment. • A grant in the amount of $131,744 was submitted by Vernon College to the Texas Workforce Commission Skills Development Fund. The grant was approved and will provide funding for a full time instructor, consumable supplies, library resources, and three reciprocating engines for the new certificate programs. The grant will also fund tuition and fees for students entering the program from the general public and for LSI existing employees who need supplemental training primarily to gain FAA certification. • Vernon College worked with the Wichita Falls ISD to develop an aerospace academy that will provide opportunity for students from local high schools to enroll in aircraft maintenance courses and receive both high school and college credit upon completion of the courses (dual credit). • LSI provided Vernon College with a consultant to assist in developing all aspects of the program. This was essential in that the College had no one on staff with the required expertise. • A search was completed and interviews were conducted in order to employ a full - time instructor /coordinator for the program. A person has been identified, and a job offer has been extended. • Vernon College is continuing their tradition of flexibility by allowing students to enroll in the courses either for traditional college semester hour credit or through continuing education. • Plans are for classes to begin in the fall 2002 semester. Submitted by: Susan Couch May 8, 2002 Aircraft Maintenance Project Start -Up Costs - Skills Training Center Vernon College Wichita County Lear Siegler, Inc. Texas Workforce Commission Total Income Occupancy Income $ 101,400 $ 4,000 $ 70,426 $ 54,414 Expense Demolition /Abatement $ 28,185 Renovations $ 212,027 Fire Alarm /Sprinkler $ 43,484 Architect & Engineering $ 20,502 FAA Accreditation $ 14,000 Equipment Consumables Paint Shop Training Aids & Aircraft Equipment Consultant Fees Total Expense Net Shortfall Total Project Costs: $748,178 $ 34,614 $ 51,620 $ 198,126 $ 6,600 $ 230,240 $ 609,158 $ 378,918 Job Creation Lear Siegler next 5 years 225 $ 1,684 Pratt Whitney Canada Unknown Aerospace Prospects Unknown May 14, 2002 Dr. Susan Couch Dean of Workforce and Continuing Education Vernon College Address 1 Address 2 Dear Dr. Couch: The Wichita Falls Economic Development Corporation has recommended your request for funding in the amount of $378,918 to begin an Aircraft Maintenance Project at Vernon College to the Wichita Falls City Council. As we discussed, funding is contingent upon approval by the City Council at their May 21, 2002 meeting. However, in anticipation of their consideration of this recommendation, the terms of this economic development incentive agreement are as follows: • Procurement of the necessary start-up costs is the responsibility of Vernon College. • Only those items associated with "Occupancy" (including demolition and abatement, renovations, fire alarm and sprinkler systems, architectural and engineering fees and FAA accreditation) and "Equipment" (including consumables, paint shop, training aids and aircraft equipment and consultant fees) will be reimbursed. • Reimbursement will occur when invoices, cancelled checks or other recognizable form of proof of expense has been submitted to the contact person below. I thank you for your presentation to the Wichita Falls Economic Development Corporation, and wish you success in with your Aircraft Maintenance Project curriculum. Sincerely, Gary Shores Chairperson, Wichita Falls Economic Development Corporation Matt Benoit Assistant City Manager 13007 th Street, P.O. Box 1431 Wichita Falls, TX 76301