Dec 12, 2022 Economic Development Corp. (Type A)

WITH THE ARRIVAL OF MRS.

[00:00:01]

[1. Call to Order]

IF ANYONE WOULD LIKE TO SPEAK TO THE BOARD ON AN ITEM THAT'S NOT POSTED ON OUR AGENDA, THIS IS THE TIME TO DO IT.

DO WE HAVE ANYONE THAT WOULD LIKE TO ADDRESS THE TYPE A ECONOMIC DEVELOPMENT CORPORATION? AND I SEE NO ONE.

SO WE'LL MOVE ON INTO ITEM THREE A, WHICH IS TO CONSIDER APPROVAL OF THE MINUTES FROM THE NOVEMBER 14TH, 2022 ECONOMIC DEVELOPMENT CORPORATION.

[3.A. Consider approval of the minutes from the November 14, 2022 Economic Development Corporation (Type A) meeting. (Staff Contact: Amanda Campos, City Secretary]

MOVE TO APPROVE.

I HAVE A MOTION BY JOHNSON AND SECOND BY GREEN TO APPROVE ALL THOSE IN FAVOR.

MOTION PASSES BY UNANIMOUS VOTE.

NEXT IS ITEM THREE B TO CONSIDER APPROVAL OF A SECOND AMENDMENT TO THE COMMERCIAL LEASE BETWEEN FWAVE INC AND THE BURLESON 4A ECONOMIC DEVELOPMENT CORPORATION

[3.B. Consider approval of a Second Amendment to the commercial lease between FWAVE, Inc. and the Burleson 4A Economic Development Corporation located at 921 South Burleson Boulevard. (Staff Presenter: Alex Philips, Economic Development Director)]

THIS WILL BE PRESENTED BY ALEX PHILLIPS, ECONOMIC DEVELOPMENT DIRECTOR.

GOOD AFTERNOON 4A PRESIDENT AND BOARD HERE TO PRESENT SOME LEASE AMENDMENT WITH FWAVE.

CURRENTLY THE EDC OWNS THE PROPERTY AT 921 SOUTH BURLESON BOULEVARD.

IT WAS PREVIOUSLY THE WAGNER SMITH EQUIPMENT BUILDING THERE ON THE SERVICE ROAD NEAR HIDDEN CREEK.

THE ORIGINAL LEASE WAS APPROVED ON NOVEMBER 16TH IN 2015 FOR A TERM OF FIVE YEARS AT A RATE OF 550 PER FOOT.

THE LEASE WAS THEN EXTENDED ON JUNE 17TH, 2019 FOR AN ADDITIONAL THREE YEARS AT THE SAME RATE.

THE LEASE AMENDMENT WAS REQUESTED AS FWAVE NEEDED MORE TIME TO IDENTIFY A FUTURE SITE FOR THEIR EXPANSION.

BUT COVID BASICALLY PUT A HOLD ON A SEARCH FOR THEM.

FWAVE HAS REQUESTED A NEW EXTENSION TO TO THE CURRENT LEASE AS WE'RE CONTINUING TO ASSIST WITH THEM TO FINDING A FUTURE SITE.

THE AMENDMENT DETAILS THE TERM WOULD BE FOR AN ADDITIONAL TWO YEARS WITH AN OPTION FOR A THIRD YEAR.

THE RENTAL RATE FOR THE TWO YEAR PERIOD WOULD BE AT A RATE OF 750 PER FOOT, SO UP $2 PER FOOT FOR AN ANNUAL TOTAL OF $237,375.

THE THIRD YEAR OPTION WOULD HAVE TO BE AGREED UPON, MUTUALLY AGREED UPON, AND IT WOULD BE AT A RATE OF $9 PER FOOT FOR AN ANNUAL TOTAL OF 284,855. FWAVE ND THE EDC ARE CURRENTLY WORKING ON IDENTIFYING A SITE FOR THEIR FUTURE HOME AND EXPANSION OF THEIR OPERATIONS.

SO TONIGHT, JUST ASK TO APPROVE THE SECOND LEASE AMENDMENT WITH FWAVE OR DENY THE SECOND AMENDMENT WITH FWAVE.

I'M HERE TO ANSWER ANY QUESTIONS.

HOW DO YOU GAUGE FWAVE LEVEL OF INTEREST IN A NEW SITE AT THE MOMENT? THEY'VE HAD SOME CHANGES AT THEIR BOARD AND AT THEIR CEO LEVEL HERE ON SITE IN TOWN OVER THE LAST COUPLE OF YEARS AFTER COVID.

AND THEY ARE HAVE A RENEWED INTEREST IN BEING AGGRESSIVE TO FIND THE NEXT SITE FOR THEM.

THEIR SOLAR PRODUCT WAS JUST APPROVED BY ALL THE.

THEIR SOLAR SHINGLES HAVE BEEN APPROVED.

THEY ARE AT MAX CAPACITY WITH THE ONE LINE OF THEIR POLYMER SHINGLES THAT THEY'VE BEEN CREATING AND MANUFACTURING.

SO THEY NEED TO GET A SITE IDENTIFIED PRETTY QUICKLY AND TO GET THAT GOING BECAUSE THE EXTRUSION PIECES OF MACHINERY THAT COME FROM NEW ZEALAND THAT ARE DESIGNED AND CONSTRUCTED OVER THERE AND SHIPPED OVER HERE, TAKE ABOUT SIX MONTHS TO GET THEM OVER HERE.

BUT THEY ARE MOVING A LOT MORE RAPID PACE THAN I'VE EVER SEEN THEM SINCE BEING HERE IN TOWN.

SO THE HOLDUP IN THE APPROVAL HAS BEEN WHAT'S DIALED BACK THEIR PROGRESS? THERE'S BEEN A COUPLE OF DIFFERENT THINGS THAT HAVE KIND OF PUT THEM ON HOLD A LITTLE BIT.

THEIR BOARD WAS KIND OF SPLIT ON THE DECISION OF WHERE TO MOVE TO AND HOW TO MOVE FORWARD.

THAT'S BEEN RESOLVED.

THEY ARE MOVING FORWARD AND HAVE A CLEAR DIRECTION AND FULL SUPPORT OF THE BOARD.

THE SOLAR GETTING APPROVED WAS JUST A BONUS HERE LATELY THAT IT'S BEEN APPROVED.

SO THEY ARE THEY'RE PRETTY ACTIVE IN TRYING TO FIND A SITE.

NOW, ORIGINALLY WE DID LOOK AT THE 43 ACRE SITE IN HIGHPOINT BUSINESS PARK, BUT THEY DECLINED TO MOVE FORWARD WITH THAT BECAUSE OF THE SOIL SAMPLES THAT CAME BACK ON THAT DIRT . AND THAT SITES NOW.

THE 400,000 SQUARE FOOT OF COLD STORAGE.

RIGHT. AT THE MOMENT, AS I RECALL, WE DON'T HAVE A SITE BIG ENOUGH TO ACCOMMODATE THEM IN OUR SEGMENT.

NOT IN HIGHPOINT BUSINESS PARK.

NO, SIR. WHAT ABOUT THE ADDITIONAL HIGHPOINT? NO, SIR. NEITHER THERE EITHER? NO, SIR. WE'VE IDENTIFIED A SITE THAT HOPEFULLY BE BRINGING TO YOU IN 2023.

[00:05:02]

WE'VE ASKED THEM TO BE IN THE CITY OF BURLESON.

BUT WITH THIS, A LEASE AMENDMENT? NO, THERE IS NO CONSTRAINTS OF.

THEY HAVE TO STAY WITHIN THE CITY OF BURLESON, JUST ACCUSTOMED TO ANY OTHER COMPANY THAT THAT'S LOCATED HERE.

BUT WE HAVE A GREAT RELATIONSHIP WITH THEM.

WE'RE MOVING WE'RE MOVING TOGETHER ON IT, AND WE LOOK FORWARD TO BRINGING AN INCENTIVE AGREEMENT OVER THIS NEXT YEAR TO THE BOARD.

OKAY. ANYONE ELSE QUESTIONS? MAKE A MOTION.

MOVE TO APPROVE. SECOND.

I HAVE A MOTION TO APPROVE BY PAYNE.

SECOND, BY STANFORD.

ALL THOSE IN FAVOR.

AND THAT'S ALL OF US.

SO THAT MOTION PASSES BY UNANIMOUS VOTE.

GOOD DEAL. I'M GLAD.

GLAD THIS IS ALL WORKING TOGETHER.

MAYBE SOONER OR LATER, WE'LL SEE THE FINAL THING.

ALL RIGHT. NEXT ON OUR AGENDA IS ITEM FOUR, REQUEST FOR FUTURE AGENDA ITEMS OR REPORTS.

HAVE WE ANY? I SEE NO SIGN.

DO WE HAVE A NEED FOR EXECUTIVE SESSION THIS EVENING? NO, SIR. WE DO NOT OK.

SO WE WILL ADJOURN THE MEETING AT 3:52.

THANK YOU.

* This transcript was compiled from uncorrected Closed Captioning.