4A Wichita Falls Economic Development Minutes - 03/30/2017MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
March 30, 2017
PRESENT'
Dick Bundy, President
Reno Gustafson, Secretary -Treasurer
Leo Lane
Darron Leiker
Dave Lilley
Stephen L. Santellana, Mayor
Brian Hooker, Councilor, District 3
Jim Dockery, Deputy City Manager/CFO
R. Kinley Hegglund, Jr., City Attorney
Linda Merrill, Recording Secretary
Henry Florsheim, CEO
Kevin Pearson, V.P., Economic Development
Travis Haggard, V.P., BR&E
Ann Arnold -Ogden, Community Marketing Director
Adrene Wike, Research Associate
Darrell Coleman, Treasurer
Brian Havins, Marketing
David Farabee, Chairman
Kolter Lukert, Board Member
Scott Poenitzsch, Board Member
Ripley Tate, Vice -Chair
Kenzie Meek -Beck
1. Call to Order
§ WFEDC Members
§ Mayor and City Council
City Staff
Chamber of Commerce and Industry
§ KFDX-TV 3
Dick Bundy called the meeting to order at 3:30 p.m.
2. Approval of Minutes (February 16, 2017)
Darron Leiker moved to approve the minutes Seconded by Reno Gustafson, the motion
carried 5-0.
3. Financial Report —presented by Jim Dockery
The financial statement is current through March 24. The Board has an adopted budget of
$3.9 million. To date, budgeted expenditures total $8.687 million, resulting in a deficit budget of
$4.8 million. However, taking into account the Board's beginning cash balance of $17.9 million,
the ending cash balance totals $13.1 million. Of that, $7.755 million is encumbered for previously
approved projects, leaving an unreserved fund balance of $5.4 million.
He then gave an overview of the sales tax history, from its passage in 1999 to present date.
The past eight years' revenues have been flat, with the majority of the sales tax receipts generated
in the first eight years of the tax.
Sales tax revenues are up 1.25% through the first four months of this fiscal year.
4. Executive Session
Mr. Bundy adjourned the meeting into executive session at 3:38 p.m. pursuant to TEXAS
GOVERNMENT CODE section 551.087. He announced the meeting back into regular session at 5:37
p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further action
was taken on these items in executive session.
5. Discussion and possible action on Wichita Clutch Performance Agreement
Leo Lane moved to restructure the loan to Wichita Clutch based upon the collateral' and
a five-year forgiveness structure beginning in 2017 of 20% per year provided the Company retains
69 jobs and gives the WFEDC first position on the lien on the Duplex Gear Box. Seconded by
Mr. Gustafson the motion carried 5-0.
6. Discussion and possible approval regarding the Performance Agreement for
Excalibur Paint & Coatings
Mr. Lane moved to restructure the current agreement with Excalibur Paint & Coatings to
forgive the $500 000 loan over a five-year period at a rate of $100 000 each year, _provided
Excalibur maintain operations and retain 25 employees in Wichita Falls during that five-year
period Seconded by Mr. Leiker, the motion carried 5-0.
7. Discussion and possible approval of a 2017 operating budget for the Stanley Tools
facility
Mr. Leiker moved to amend the WFEDC 2017 fiscal budget in the amount of 185,000 for
operating expenses for the Stanley Tools facility. Seconded by Mr. Lilley, the motion carried 5-0.
8. Discussion and possible action regarding WFEDC's current and future contracts,
including contract terminology and obligations, with WFEDC agent entities
No action was taken on this item.
Le Tourneau Technology 1,500 hp Motor ($150,000); Custom Built Drive ($200,000); Duplex Gear Box
($462,000); and Shaft Couplings ($100,000) for a total of $912,000
9. Discussion and possible approval of Binswanger Marketing Plans for the former
Stanley Tools and ATCO facilities
Mr. Lane moved to accept the proposal of Binswanger Marketing Plans for the former
Stanley Tools and ATCO facilities in the amount of $38,105.62. Seconded by Mr. Lilley, the
motion carried 5-0.
10. Adjourn
Mr. Gustafson moved for adiournment Seconded by Mr. Lilley, the meeting adjourned at
5:50 p.m.
Dick Bundy, President