4A Wichita Falls Economic Development Minutes - 08/17/2017MINUTES OF THE
WICHITA FALLS ECONOMIC DEVELOPMENT CORPORATION
August 17, 2017
PRESENT:
Dick Bundy, President
Reno Gustafson, Vice President/Secretary-Treasurer
Leo Lane
Darron Leiker
David Toogood
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
Adrene Wike, Research Associate
Brian Havins, Marketing
David Farabee, Board Chair
Ray Roberts, President
Josh Roberts, Quality Control
Cynthia Laney, Executive Director
Cody Magana, Vice President
Beau Dameron, Treasurer
Jeanette Charos, Marketing Director
Dustin Potter, President
Andrew Bell, Designer
Simeon Hendrik, Designer
Scott Manley, Director
Vanda Cullar, Director
Walter Lambert, Business Analyst
Glenn Barham, President
1. Call to Order
§ WFEDC Members
§ Mayor and City Council
§ City Staff
§ Chamber of Commerce and Industry
§ Chantex Mfg.
§ DWFD
§ Hoegger Communications
§ Idea WF/Lalani Center
§ SDBC
§ SMAC
Dick Bundy called the meeting to order at 3:30 p.m.
He welcomed David Toogood, President and CEO of the Work Services Corporation, as
the newest member of the WFEDC. Mr. Bundy then read the wording on a plaque that will be
presented to former member Dave Lilley for his 12 years of service: "The members of the Wichita
Falls Economic Development Corporation express their gratitude for many years of leadership and
service to the citizens of Wichita Falls."
2. Approval of Minutes
May 16, 2017: Reno Gustafson moved for approval. Seconded by Darron Leiker, the
motion carried 5-0. May 18, 2017: Leo Lane moved for approval. Seconded by Darron Leiker, the
motion carried 5-0.
3. Financial Report —presented by Jim Dockery
Three months of sales tax revenues remain to be collected this fiscal year. Revenues are at
$2.9 million for the year; expenditures stand at $4.8 million. That puts the fund in a negative
surplus position of $1.9 million for the year, with a beginning cash balance of a little less than $18
million. However, there is almost $12 million in reserve for open projects. The Board has an
unreserved fund balance of $4 million.
He included a projected column on the statement to help with next year's budget, and to
show where the Board should end this fiscal year. Projected revenues and expenditures are coming
in close to the amount budgeted. The Atco rents are less than budgeted, since the company closed
their business and canceled their lease. However, interest earnings are helping to offset that loss.
He projects a $4.9 million unreserved fund balance at the end of the fiscal year.
4. Discussion and possible approval of funding regarding proposal from Chantex
Manufacturing, Inc.
Travis Haggard presented brothers Josh and Ray Roberts, owners of Chantex
Manufacturing, Inc. In December 2016, they entered into a performance agreement with the
WFEDC, wherein the Board agreed to provide $128,000 for the purchase of two 20 -ton cranes. In
return, Chantex agreed to add 16 additional employees. Chantex added 28 employees, and
increased their weekly payroll from $10,000 to $40,000.
PECOFacet in Mineral Wells has supplied them with more work that they were not
expecting to receive, and they need an additional building to meet the demands of production.
They are seeking financial assistance for the purchase of five new cranes ($87,000); electricity to
the facility ($30,000); and cargo trailers ($33,700). The total request is $150,700.
They currently have 42 employees, and with this expansion, would hire 20-30 additional
employees. They have already hired eight. The new facility will be in Wichita County.
5. Discussion and possible approval of outside funding requests:
(a) Sheppard Military Affairs Committee
Glenn Barham thanked the Board for their support since 2005. The request of $140,000 is
the same as 2016 — minus that year's request of $75,000 for the anniversary celebration.
SMAC's budget has not yet been finalized, as it runs on the calendar year. There will be
increases, due to rising costs in travel and lodging, compensation, rent and hosting events. They
are also setting aside monies for replacement costs for computers. However, the budget is still
within the projected revenues, which are derived from the WFEDC, Wichita County, Burkbumett
and Iowa Park, and the capital campaign, which occurs every three years. This capital campaign
begins this week, retroactive to January 1 of this year.
Mr. Barham will continue to be closely involved in legislation affecting Sheppard AFB,
including the wind farm issue.
(b) Idea WF
Scott Manley, Director of Idea WF, said this program is in its eighth year. A good way to
measure success is survival, he declared. There is an 81 % survival rate for previous winners in this
contest. He can only find four that have gone out of business, but noted the success of two past
winners. Kenny's Seasonings distributes its product in eight grocery store chains in over 20 states
and now in Canada. Midwest Waste generates $500,000 per month in revenues and has 38
employees. It recently opened a branch office in Ft. Worth.
Their request is still $30,000 ($12,000 for "Startup -GO"; $12,000 for "Expansion -
GROW"; and $6,000 for "Judges' Choice").
(c) Downtown Wichita Falls Development, Inc.
Cynthia Laney said the Farmers Market is a huge success. It was the recipient of one of
three Texas USDA Farmers Market three-year programs. It has enabled them to offer children's
activities, music, and other activities. Attendance from February -July was tallied at 25,109.
They are also continuing their many events, such as City Lights and Cajun Fest, and
including new events, such as the After Hours Art Walk. This event, held the first Thursday of the
month from April -October, helps keep the restaurants full on Thursday nights, as well.
Jeanette Charos spoke on the organization's efforts to brand downtown. Hoegger
Communications was hired to develop a unified downtown marketing plan. Simeon Hendrik of
that company said they worked with focus groups of at least 70 people. The logo "You're Invited
Too" was developed to invite people to help build up downtown, and also to help celebrate its
successes.
Dustin Potter said the Zales building has been sold to Amber Schacter and is in the final
stages of infrastructure. They are in between projects and are looking for their next piece of
property to rehab, or they may do a public art project. It is getting more difficult to find available
downtown properties to buy. The taxable downtown property value has increased $3.2 million
over the last 12 months in the area.
The WFEDC requests $100,000, to be used primarily to market downtown. They see
themselves as advocates for downtown merchants.
(d) Small Business Development Center
Vanda Cullar, Director of the American Small Business Development Center at MSU,
noted the Center offers consulting, training, research, and exit and succession planning. Its funding
was drastically cut in the last legislative session. If not for the "Dancing for the Stars Wichita
Falls" fundraiser (which equally benefits Big Brothers Big Sisters and the SBDC), their financial
picture would look much worse. At present, they are down about $105,000. The request from the
WFEDC is $80,000 for 2018 and 2019.
Their work offers a return on investment of $6 to $9. If they cannot come up with sufficient
funds, three part-time and one full-time employee will be cut from the SBDC. They will be down
to an office of two employees.
Mr. Lane asked what other SBDCs are doing to meet this economic shortfall. Ms. Cullar
said Abilene was initially funding the SBDC out of its 4A fund, then questioned whether those
monies could be used for that purpose. Now, it provides approximately $275,000 annually out of
its general fund. Other centers are having to downsize.
Mr. Toogood asked whether she feared that getting the funds might be a detriment; that the
legislature would see that the SBDC survived without additional funding for two years. Ms. Cullar
said this would be presented as emergency funding.
(e) Chamber of Commerce and Industry
Henry Florsheim said the Chamber is requesting a 4% increase over last year's request.
This increase is represented in the following changes:
(1) increased funding for economic development activities for business attraction/
expansion/retention (previously underfunded, per consultants and comparisons with peer cities)
(2) funding 50% of an administrative support person (the Chamber would fund the
remaining 50%)
(3) funding for "Choose Wichita Falls" budget is reduced by 50% so that more
emphasis is placed on business attraction/expansion/retention. This campaign will limit its focus
to the website, social media and outside this market.
Mr. Florsheim noted they have changed the tracking of financial information. Mr. Lane
questioned the $140,000 budgeted for overhead, when "0" was budgeted for that same line item
last year. Mr. Florsheim said it was always allocated, but never discussed. It includes phones,
office space, computers, etc. Mr. Lane said he would like to see information on this item for the
previous year. Mr. Florsheim said he can provide that on a simple spreadsheet.
6. Executive Session
Mr. Bundy adjourned the meeting into executive session at 5:05 p.m. pursuant to Texas
GOVERNMENT CODE section 551.087. He announced the meeting back into regular session at 5:40
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. Adjourn
The meeting adjourned at 5:45 p.m.
Di k Bundy, President