4A Wichita Falls Economic Development Minutes - 05/18/2017MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
May 18, 2017
PRESENT:
Dick Bundy, President
Reno Gustafson, Secretary -Treasurer
Leo Lane
Darron Leiker
Stephen L. Santellana, Mayor
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
Brian Havins, Marketing
Kenzie Meek -Beck
ABSENT:
Dave Lilley
§ WFEDC Members
§ Mayor and City Council
§ City Staff
§ Chamber of Commerce and Industry
§ KFDX-TV 3
§ WFEDC Member
1. Call to Order
Dick Bundy called the meeting to order at 3:30 p.m.
2. Approval of Minutes (March 30, 2017)
Leo Lane moved for qpproval Seconded by Darron Leiker, the motion carried 4-0.
3. Financial Report —presented by Jim Dockery
Sales tax revenues are running 0.5% ahead of this time last year. This account is budgeted
flat, and he anticipates sales tax revenues will end the year at $3.9 million, the amount of the
Board's adopted budget. The Board has an unreserved fund balance of $5.188 million, and actual
reserves are $3.2 million, as sales tax revenues lag behind.
Expenditures are occurring as budgeted. Money has been spent on Pratt & Whitney, Guide
IT, the Stanley Building improvements, and Bruce Facility Planning Consultants. The Chantex
project is now completed. Vitro has yet to submit a request for funds.
Reno Gustafson asked if Randy Funston of Excalibur had been notified of the Board's
decision (of March 30)1. Mr. Pearson said that he had, and the new performance agreement is in
the process of getting executed.
4. Discussion and possible approval of funding for development of a Comprehensive
Economic Development Strategy
Henry Florsheim said the City Council has requested that the WFEDC and the 4B Sales
Tax Corporation (4BSTC) work together to develop a comprehensive economic development
strategy. He and Dick Bundy investigated potential companies, narrowing down a field of the top
20 economic development consultants to four. A group consisting of himself, Mr. Bundy,
Mr. Leiker, and Tony Fidelie interviewed those firms via the phone, and invited two of them to
submit proposals. The group unanimously chose Mac Holladay's firm, Market Street Services.
The strategy will be a 10-month, six -phase process:
1. Project initiation; familiarity tour (steering committee of 25-30 leaders)
2. Regional assessment (develop "score cards," review existing plans and visions,
comparison to peer cities)
3. Target sector analysis (evaluate infrastructure sites, workforce, staffing, educational
programs, marketing efforts, websites)
4. Develop strategy
5. Implement plan (assign individual roles/responsibility)
6. One-year assessment (formal presentation to stakeholder group)
5. Discussion and possible approval of funding for Gatehouse Capital DoubleTree
Convention Center Hotel Parking
Mr. Dockery reminded the Board that the City and Gatehouse Capital are undertaking a
150-room DoubleTree Hotel and conference center. Construction of this hotel will result in the
loss of 158 parking spaces at MPEC, and the City is seeking to replace them.
The City has asked Biggs & Mathews to give a cost estimate to construct parking at two
areas surrounding MPEC. Area 1, used for RV parking, is west of Burnett between 3rd and 41h
Streets. Area 2 is near the intersection of Lamar and 2nd Street, and accessible from Scott Street.
The cost is estimated at $1 million, with a $200,000 contingency built in, to improve half
of the parking area at Area 1, and prepare the other half for future parking, and complete all of
Area 2. The parking lots will meet the same standards as the rest of the MPEC parking. Area 1
will provide 135-140 spaces, while Area 2 will provide an additional 40-45 spaces.
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.
2
Mr. Dockery realizes some members may have reservations about funding parking lot
improvements, but he asks that the entire project be considered. It is a substantial economic
development opportunity. This project alone would involve 16 months of construction and provide
232 part-time construction jobs, and provide a $46 million economic impact. Once the hotel is
constructed, the 92 staff jobs would generate an additional $30 million in economic impact over a
10-year period. This does not include the economic impact generated by the increase in tourism
and conventions.
The request is that the WFEDC approve $497,500, or 50% of the construction cost
estimate. The 4BSTC will pay the remaining $497,500, and has already approved $85,000 for the
bid design and specifications. In addition, it is taking on $11 million in revenue bonds to loan to
the private investor for capital construction costs, and the debt service on the City's $7.6 million
in Certificates of Obligation for the conference center.
6. Executive Session
Mr. Bundy adjourned the meeting into executive session at 3:52 p.m. pursuant to Texas
GOVERNMENT CODE section 551.087. He announced the meeting back into regular session at 4:30
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.
7. Action on Comprehensive Economic Development Strategy Consultant
Mr. Lane moved to approve up to 50% or $91 750 of the cost to retain Market Street
Services to develop a comprehensive economic development strategy. Seconded by Mr. Leiker,
the motion carried 4-0.
Mr. Pearson asked if there was a waiting period. Mr. Leiker said the 4BSTC has a waiting
period of 60 days. The risk is if there is a protest (and the funds have already been expended), the
City would have to pay the expenditure. The risk is minimal, as the project will be done, anyway.
8. Action on funding for Gatehouse Capital DoubleTree Convention Center Hotel
Parking
Mr. Leiker moved for qpproval of up to $497,500 or 50% of the cost for Gatehouse Capital
DoubleTree Convention Center Hotel Parking and further moved to recommend the City structure
the bid with an "add alternate" to construct the entire parking lot west of Burnett Street between
3rd and 4th Streets Seconded by Mr. Gustafson the motion carried 3-1. (Mr. Lane voted in
opposition.)
9. Adjourn
The meeting adjourned at 4:35 p.m. k M_
Dick Bundy, Prelsident