4A Wichita Falls Economic Development Minutes - 09/30/2016MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
September 30, 2016
PRESENT:
Dick Bundy, President
Reno Gustafson
Leo Lane
Darron Leiker
Dave Lilley
Jim Dockery, Deputy City Manager
James McKechnie, Assistant City Attorney II
Linda Merrill, Recording Secretary
Henry Florsheim, CEO
Kevin Pearson, VP, Economic Development
Travis Haggard, V.P., BR&E
Darah Soria, Ec. Dev. Marketing Coordinator
Tom Davis
John Ingle
Kenzie Meek -Beck
1. Call to Order
§ WFEDC Members
§ City Staff
§ Chamber of Commerce and Industry
§ USA800
§ Times Record News
§ KFDX TV 3
Dick Bundy called the meeting to order at 10:30 a.m.
2. Approval of Minutes (September 22, 2016)
Leo Lane moved to approve the minutes. Seconded by Dave Lilley, the motion carried.
3. Discussion and possible action on incentives for USA800
Kevin Pearson introduced Tom Davis, the President and CEO of USA800. Mr. Davis
thanked the 4A Board for today's meeting. He is excited about the potential of opening operations
in Wichita Falls. USA800 is the nation's largest employee -owned contact center business process
outsourcer. The company has about 60 clients, or partners, in various vertical markets. It is engaged
in primarily inbound work, in the areas of sales, technical support and customer care.
The company has been in business since 1976 in the Kansas City and St. Jo, Missouri. In
1996, the former owner was looking for an exit strategy. A banker talked to Mr. Davis, who was
a president in the company at that time, about the possibility of an ESOP, or Employee Stock
Ownership Plan. One of the biggest problems with a call center is employee turnover. He took
over the company with this ownership plan, and the company has experienced tremendous growth
ever since.
Revenues are up 60% this year, and that is why they are looking for new facility. Mr. Lane
asked what accounted for such growth. Mr. Davis said they signed two major companies in the
last 1.5 years, and other companies have significantly expanded their work with them.
The Wichita Falls center will be the company's largest physical facility. Mr. Davis is
hopeful the incentive package will be approved, as that is a large part of their decision -making
process to locate in this area. They have entered into a non -binding letter of intent with the landlord
of the facility, but it is contingent upon the incentives being approved. A dozen or so employees
will temporarily transfer here from the Kansas City area; some will make a permanent transfer,
but most positions will be filled from the Wichita Falls community.
Mr. Pearson asked what benefits will be offered to employees. Mr. Davis said the ESOP
stock is invaluable. That is automatically available to any employee at least 18 years of age who
has worked for the company for 12 months and 1,000 hours. In addition, there is a 401K program
after 90 days of service; a match of up to 5% of ESOP stock; an annual bonus; incentives from the
company and clients to make more money on top of the hourly wage; health and dental benefits;
and vacation and sick leave.
Mr. Pearson said he understands the company envisions hiring 300 people in the first year;
he asked what Mr. Davis envisions for longer -term growth? Mr. Davis said they are hope to sign
a seven-year lease. They want to maximize their investment in the property and grow as quickly
as possible. They would like to hire 600 agents, depending upon their customer base and the
availability of skilled labor.
Mr. Bundy said the 4A Board and the Council made a strategic decision to not take
possession of the 460 work stations and to instead turn them over to the property owner. The
thought was that private enterprise had a greater opportunity to fill the building with a company
such as USA800. Mr. Davis agreed the existing work stations were a big factor.
4. Executive Session
Mr. Bundy adjourned the meeting into executive session at 10:57 a.m. pursuant to TEXAS
GOVERNMENT CODE section 551.087. He announced the meeting back into regular session at 11:22
a.m. The subjects posted in the Notice of Meeting were deliberated, and no action was taken on
these items in executive session.
Mr. Lilley moved, seconded by Reno Gustafson, to approve the incentive package offered
to USA800. The motion carried.
5. Adjourn
The meeting adjourned at 11:27 a.m.
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