Questions arise over addition of downtown recruiter position

During a Wichita Falls City Council meeting that lasted nearly three hours, the focus was heavily on approval of the 2020-2021 Wichita Falls Economic Development Corporation (the 4A board) budget.

Questions arose about a proposed budget increase that includes adding a new position to conduct outreach to potential downtown business developers.

Assistant City Manager Paul Menzies said the WFEDC budget was approved at their meeting September 17.

The WFEDC operates primarily from revenues from a quarter-cent of the sales tax that the city brings in.

Primary estimates show that the corporation will have about $3.9 million for regular expenses and Menzies said after the end-of-year sales tax figures are in, the WFEDC expects to have about $5-6 million in unreserved funds for new projects.

The WFEDC budget includes annual contracts with three entities – the Wichita Falls Chamber of Commerce and Development, The Downtown Wichita Falls Development, Inc., and the Sheppard Military Affairs Committee.

About $1.1 million of WFEDC funds are slated for the Chamber.

Chamber President and CEO Henry Florsheim gave an overview about what the Chamber does for economic development and how they are adapting to the COVID-19 situation.

In the past, a great deal of business recruitment came from in-person activities like trade shows and on-site consultations.

Florsheim said the Chamber adapted to an increasing need for virtual options, even before COVID hit.

Director of Business Attraction David Leezer conducted dozens of Zoom calls with prospects and appropriate state representatives during the months post-COVID to continue advancement of projects.

The Chamber also added tools to make Wichita Falls stand out above other cities by creating a virtual spec building and a virtual 3D walkthrough.

The virtual spec building shows construction possibilities at a location and provides potential investors with a  “flythrough” experience that details building size options, costs and construction time estimates. Florsheim said while competitors may simply have a map of the property, the virtual spec building could be shared interactively and catch the attention of investors before they even step foot in the city.

Panda Biotech is a major success story for the Chamber. The company plans to renovate a former factory in the city’s business park and make it one of the first hemp processing plants in the United States.

Work continues, Florsheim said, with Clayton Homes to locate to the former ATCO building.

Other recent successes include Eagle Railcar, which has added many jobs and undergone two expansions, and Pamlico Air, which moved into the former Stanley Tools building.

Mayor Stephen Santellana said for 50 years, Wichitans have complained about lack of growth and the loss of well-paying jobs. He said Florsheim and the Chamber are turning that around by filling those vacant buildings with new businesses and bringing momentum to downtown and other parts of the city.

Part of the upcoming year's Chamber’s budget includes hiring a dedicated person for downtown recruitment.

Florsheim noted that hiring a professional to recruit outside business to downtown was part of a seven-point economic development strategy approved by the city.

The position would work in conjunction with the Chamber and Downtown Wichita Falls to proactively seek out new investors for downtown.

Florsheim noted this position is different than what Downtown Wichita Falls Development does currently.

Additionally, once COVID is less of a concern, Downtown Wichita Falls Development will be once again tasked with planning and organizing major events, like the St. Patrick’s Day Parade. The two-person crew is not equipped with an additional task of recruiting outside businesses, Florsheim said.

Councilor Bobby Whiteley expressed concern for the salary increases included in the WFEDC budget during a time when all city employees are going without a raise.

“We’ve had to slice. And I am concerned about the next 12 months of sales tax,” he said.

Florsheim said once the budget was approved the Chamber would begin the recruitment process for this new employee. He did not have a timeframe for when the person would be hired or a possible salary.

The proposed WFEDC budget is 3.5 percent more than the previous year's budget. Florsheim said the change is due to a small increase in some salaries and to cover rising health insurance costs. The allotment for economic activities is about the same as the previous budget. 

The Chamber president noted that if the Chamber does not spend all the money budgeted for a certain year, they refund that money to the city. In 2019, the Chamber returned $100,000 in unused budgeted funds.

Santellana said when things are working well, he does not consider changing the formula too much and he feels like the Chamber is doing great things for Wichita Falls.

In the past five years, the Chamber added 1,820 new jobs to the area. They brought in new businesses and filled factories that stood vacant for years.

While some other areas in America are facing harsh economic times due to COVID, the mayor said Wichita Falls has actually seen positive news about the area’s economy. Sales tax revenue did not drop as much as expected, the real estate market is booming, and several business are eyeing the city for potential investment.

After shorter presentations from Downtown director Jana Schmader and SMAC director Glenn Barham the council voted on approval of the WFEDC budget.

Two councilors, DeAndra Chenault and Steve Jackson voted against the motion.

Claire Kowalick, a senior journalist for the Times Record News, covers local government, military and MSU Texas. If you have a news tip, contact Claire at ckowalick@gannett.com.

Twitter: @KowalickNews