4A Wichita Falls Economic Development Minutes - 08/31/2016MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
August 31, 2016
PRESENT:
Dick Bundy, President
Reno Gustafson
Leo Lane
Darron Leiker
Dave Lilley
Glenn Barham, Mayor
Tim Ingle, Councilor District 4
Jesse Brown, candidate for Councilor,
District 4 (unopposed)
Jim Dockery, Deputy City Manager
R. Kinley Hegglund, Jr., City Attorney
Linda Merrill, Recording Secretary
Henry Florsheim, CEO
Kevin Pearson, VP, Economic Development
Darah Soria, Ec. Dev. Marketing Coordinator
Ann Arnold -Ogden, Marketing Director
Travis Haggard, V.P., BR&E
Scott Manley, Director
Jon Larvick, President/CEO
Darrell Coleman, Board Member
Cynthia Laney, Executive Director
Dusty Potter, President
Jeanette Von Donge, Marketing Director
Teaa Reed, Member
Danny Ahern, Member
John Dickinson, Member
John Ingle, Business Editor
WFEDC Members
City Council
City Staff
Chamber of Commerce and Industry
§ Lalani Center, MSU
§ SMAC
§ Downtown Wichita Falls Development
§ Times Record News
1. Call to Order
Dick Bundy called the meeting to order at 8:30 a.m.
2. Approval of Minutes (May 5, 2016)
Dave Lilley moved to approve the minutes. Seconded by Leo Lane, the motion carried.
Mr. Florshehn introduced Travis Haggard. Mr. Haggard is the Chambers newest staff
member, and is in charge of business recruinnew and expansion,
Financials: Sim Dockery reported that revenues for next year are estimated at $3.9 million,
based mostly on sales tax revenues. To die,.cales tax revenues are .46 o below this three last year.
Other revenues include Ore annual lease payment from Atco. foresees[ rates are rising a bit on
investments.
Expenditures total $1,781,258, and will. of course, rise as more projects we undertaken
throughout the year. These expenditures alw include $30,000 for outside professional fees,
maintenance expenses for the business park and utilities, and administrative expenses that
eimburse fire City for staff support. In addition, the WFMC agreed to hand 5140,000 annually
for the regional airport conshucdon heart 2033).
promotional expenses are capped at 10% of WW revenues, or $390,000. Kuri Hegglmhd
and Henry Florsheim have pane through the various requests to determine which expenditures me
promotional versus administrative.
Overall, the WFEDC has a surplus budget of $2.124 million. Ile estimated cash balance
before encumbrances is just under $18 million; of that, $9.9 million is encumbered, leaving an
wresmed fund balance of u t over $10.3 million.
3. Discussion and possible action on regular WFEDC E4A) meetings
'Ihe Bomd agreed to meet every End! IYmureday of fie menti. However, the next meeting
is scheduled for Thursday, September 22 at 11:30 a.m. az the a'vpmr.
4. Discussion and possible action on request tram Wichita Clutch
No action was taken on this mother.
5. Discussion of funding requests for fiscal year 2016-17
Chamber /commerce andfndusrry
L $560,907: Fifty percent of the salaries and benefits for the President; 100% of the
salaries and benefits of the Senior Vice President of Economic Development; the Vice
President ofBuslmtss Retention and Expansion, the Choose Wichita Falls Director, the
Economic Development Marketing Director; and the Research Assistant This fled
also includes reimbmax mens for healthcare deductible expenses.
2. 5225,00: Business operation. retention and expansion. Once a targeted strategy for
aerospace attraction is available, money will need to be spent on that plan, including
conferences, advertising, and meals with business leaders.
3. $200,000: The Choose Wichita Falls Program fund is an award- witting program, and
will help promote Midwestern State University next year.
4. $10,000: Strategic planning
5. $30,000: Kevin Pearson is a work on an RFP in find a consultant to help develop a
labor market study
& $15,000: Site visits m Net cities includes sn upcoming trip to Abilene for
benchmarking purposes
Len Lane observed that the Chamber's budget bas increased 50% since 2014; he asked
what Mr. Florsheim envisioned for the next three years. Mc Florshcim said the scoff they have
added and are "nesting will constitute the care they will need at a base level. If more staff is
needed, it will be because apztticular need has been identified.
SMAC
Jon L.ervick, President of SMAC, said the organization is ealuanng the customary
$140,000 for operating costs. In addition, however, they are requesting $100,000 to prepare a
celebration for the 75^ mndvemary of Sheppard Air Farce Base.
Mr. larvick said he believes SMAC adds value, not only in assuming in encroachment
protection for the base against wind fame, but also against forme BRAC closures. Ile has testified
tutee tunes in front of state committees. SMAC is heavily involved in Joint ]and Use Study
recommendations, and with the Texts Military Preparedness Commission on various projects,
including the $1.75 million in grant money for the from gate project a Sheppard.
SMAC also fosters relationships with airmen, doing such tangs as providing turkeys a
Thanksgiving. He is excited to he a part of this operation.
Downtown Wichita Falls Development, Inc B)WFD)
Cynthia Laney said DWFD is the only organization specifically promoting downtown.
They are known for fore major events: Cajun Fest; St. Patrick's Day Festival; City Lights; and An
and Sod. The economic impact for those events is $2.1 million (as calculated by Lindsay Factor),
Last August, they received `big belly' recycling bins through a grant from the Alcoa
Foundation. Those strategically placed bins help their cleaning crew, as they have a sin card and
an email is sent when they used emptied The Yannar's Maker has exploded since DWFD took
over its operations, due to renovations made to the facility.
They have developed a marketing program, and would use the 5100,000 gam from the
WFBDC toward that marketing plan, should the Board decide m grant the funds again this year.
Jeanette Van Donge said DWFD intends to pm together cohesive ads, with me target audience
being the creative class, millemnials, Sheppard Air Farce Mase, and Midwestern State University.
Various farms of social media would be used in conjunction with traditional advertising to promote
downtown shopping, events and entertainment.
Dusty Potter said the Zales Building is on the market and they envision this building will
be a mix of restaurant, residential and retail within the next six months. Then they can take on
renovation of another building downtown that would not make sense fium an investment
standpoint to aprivate developer.
Idea Wichita Falls
Dr. Scott Manley thanked the WFEDC members for their past support. They have taken
the Board's past support of $30,000, and leveraged it with additional in-kind contributions for a
prize package of about $70,000. This year's winners have accounted for $148,000 in sales and
nine employees. The sales tax revenue on the $148,000 is $12,200.
6. Executive Sessions
Mayor Barham introduced Jesse Brown. He is the uncontested candidate for District 4 on
the City Council. As Council members typically attend executive sessions of these meetings, he
felt it appropriate that Mr. Brown be allowed to stay.
Mr. Bundy adjourned the meeting into executive session at 9:35 a.m. pursuant to TEXAS
GOVERNMENT CODE sections 551.074 and 551.087. He announced the meeting back into regular
session at 10:40 a.m. The subjects posted in the Notice of Meeting were deliberated, and no action
was taken on these items in executive session.
7. Approval of the Fiscal Year 2016-17 Budget and projects and expenditures
Mr. Lane moved for approval of the 2016-17 budget and projects and expenditures as
described, finding that the budgetary items marked as `promotional expenditures' are being used
for promotional purposes, as authorized by Texas Local Government Code §504.105. Seconded
by Mr. Gustafson, the motion carried.
8. Discussion of and possible action on the closure of one or more outstanding 4A
projects
Mr. Gustafson moved, seconded by Mr. Lane, to close the following_ outstanding projects:
Arrow Manufacturing
Tryer Process Equipment
Health Care Services Corp
Arrow MP Down Hole
Lone Star Milk Producers
Nocona Trucking
The motion carried, and a total of $637,874 of funds were unencumbered.
9. Adjourn
a.m.
Mr. Lilley moved to adjourn. Seconded by Mr. Gustafson, the meeting adjourned at 10:45
Dick Bundy, Preside t