Res 173-2017 12/19/2017 Resolution No. 173-2017
Resolution approving the programs and expenditures of the Wichita
Falls 4B Sales Tax Corporation Board of Directors and amending the
budget to include funding up to $16,000 for HLCC Ventures LLC (d.b.a.
Hook and Ladder Wine and Coffee Company) to renovate the building
at 616 Seventh Street
WHEREAS, Texas Local Gov't. Code § 501.073(a) provides "The corporation's
authorizing unit will approve all programs and expenditures of a corporation and annually
review any financial statements of the corporation;" and,
WHEREAS, on December 7, 2017, the Wichita Falls 4B Sales Tax Corporation
(4BSTC) approved the project listed below and as stated in its agenda.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1. The Wichita Falls 4B Sales Tax Corporation's approval and funding of the
following programs and expenditures, in a total amount not to exceed $16,000 as
described below and in said corporation's agenda, is approved:
To HLCC Ventures LLC (d.b.a. Hook and Ladder Wine and Coffee
Company) to historically preserve and renovate the building at 616
Seventh Street for a wholesale coffee roasting operation, with retail sales
for coffee, wine and other related commodities.
2. The current fiscal year budget of the 4B Sales Tax Corporation is amended to
provide for the aforementioned expenditures and changes thereto.
PASSED AND APPROVED this the 19t" day of December, 2017.
01- MAYOR
ATTEST:
City Cle
November 10,2017
Jim Dockery Deputy City Manager
City of Wichita.Falls
1301 Seventh Street
Wichita halls,Texas 76301
APPLICATION FOR 4B SALES TAX FUNDS—4B SALES TAX BOARD
Construction/Renovation/Preservation of 616 7`h Street,Depot Square Historic District;
Owner HLCC Ventures LLC dba Hook&Ladder Wine&Coffee Co.
Bill Weske Managing Partner
Dear Jim:
HLCC Ventures LLC dba Hook&Ladder Wine:&Coffee Company has purchased the building
at 616 7`h Street which is a contributing building to the National Register,depot Square historic
District. Andy Lee is representing the new ownership for the 4B application.
Request for Development Assistance from 4B Board to historically preserve and renovate the
building,as a Wholesale Coffee(Manufacturer),&fended Wine Tasting room with a Retail
Sales Area(mixed-use occupancy),The building formerly operated as 013 Sales a retail
apparel store for over ten years.
Applicant Profile
Hook&Ladder Wine&Coffee Company,a locally owned and operated small-batch,artisan
coffee roastery,and a Banded Texas Winery,offering organic,single origin coffees wholesale
sand retail,as well as a licensed Winery.
Coffee Beans are imported and are Farm-Direct and UTZ Rain Forest Certified.Coffee
Roasting is considered Manufacturing(NAISC),as beans are roasted and sold wholesale and
distributed to restaurants,local retailers,national mail-order,and Farmers,Market,Job
creation is required for the manufacturing(Roasting). The building will provide a retail space
for wholesale mfg,products and full flights of Texas Wine(tasting room). Organic Clive
Oils,Spices and Cooking Supplies shall also be offered(retail sales tax generator).
Wine making Grapes are sourced throughout the high plains of Texas and processed and aged
utilizing a contracted custom crush processor.Wines are then packaged for sale at our retail
location and tasting room.
I
Property Description:
61 7th Street Wichita Falls Landmark Commission Historical Marker(1999)
Repot Square Historic District,National Register,as a contributing building to the District.
TIF 4 4 District.
Legal:25XI00 Ft.of Lots 8&9 Jalonick-2 Block 152,Original Town-site to the City Of Wichita
Falls,Wichita County Texas.
Zoning:CBD
Previous Occupancy:OB Sales(classified as retail use)
Occupancy:Future Coffee and Wine(s)Retail Mixed Use.
2015 Building Code:Transition change of occupancy- Assembly.
Property Tax Value:$35,043,00(WOAD—2017).
Qualified Expenses: applicant shall make an application for Texas State Tax Credits;
(Texas Historical Commission)
Rehabilitation Approvals:Landmark Commission(Design Review)October,2017;Texas
Historical Coinmiss2orj; City of Wichita Falls Building Permit Design Review-Approved.
November 10,:2017
Building Sq.Footage:2,250 S}
WCIIS Commercial Award(1999)
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HLLC Ventures LLC would like to request economic development assistance for the 413 sales
Tax Hoard for Development of this Major Catalyst as a Significant Destination-Special
Occasion-Entertainment Venue—Restaurant/Retail Mixed-Use,as an ANCHOR for the Depot
Square Historic District.
413 Projects(4B(a)(2)(b)ereation of jobs can provide equipment,targeted infrastructure,(23)(a)
manufacturing—14LLC Ventures LLC is a Wholesale provider Roasting imported;coffee beans as
a Distribution Center for such retailers a Gypsy Kit and 8"'Coffee,restaurants,Also,exporting
includes distribution such as mail-order,English Pharmacy and the Farmer's Market.All Hook&
Ladder coffees are Rain Forest Alliance and UTZ certified. An example is Pearland Roasters that
serves as the wholesale provider for many Houston restaurants,
Creation of jobs:
(4)Full time ensployeesu $15.0{}per hour
(8)Part-Time Employees(20 hrs)O$15.00 per hour
NFR stats-32%of labor force(2017)are retail jobs using$10 per hour as minimum wage.
HLCC jabs are 33 1/3%more than minimum wage,
Projected Annual Sales:$500,000 with a 50%goal over four(4)years and"10%growth annually.
The owners of this building wish to open:a Retail&Wholesale Coffee Roastery and Winery.The
current business is Hook&Ladder Coffee Co.and is also in the permitting process with
TTB/TABC fora Bonded Winery,The expected open date March 18,2018 and will employee
four full-time employees with an estimated eight part-time employees.There will be a retail sales
area for fresh roasted coffee,assorted cooking supplies and spices,Organic Clive{ails,and a full
flight of Texas Fines.
Nook&Ladder Coffee Co.is a company that has been in business since 2016 providing fresh
roasted coffee beans for both retail and wholesale customers.The company imports single origin,
premium organic green coffee beans via a family-owned broker in Houston,and roasts them in a
3 kg.,gas fired roaster that they have owned since 2016.The coffee beans are Farm-Direct and
UTZ/Rain Forest Certified.The company sells direct to the customer via Farmers Market and
Online Sales which reach the entire Continental U.S.Additionally;the company sells whole bean
coffee both bagged and wholesale,to customers here in Wichita Falls and the surrounding region;
The company will also offer retail single origin coffee for sale via Amazon,com.The goal is to
open a retail space that has the capacity(both in physical size and capacity)to increase wholesale
manufactured products and increased retail sales.,The Hook&Ladder team says their goal is to
celebrate the men and women who risk their lives every day to provide public safety.A portion of
every Hook&Ladder product purchased goes to benefit the Wichita Falls Fire and Police
Museum;
The company regularly partners with local nonprofits and provides opportunities for groups to
sell their coffee by the bag for fundraising events.They recently announced their new line of
coffees; Sparky and Frisky,named for P.E.T.S.Low-Cost Spay&Neuter Clinic,proceeds from
the sale of these two flavors benefit P.E.T. .
HLLC LLC proposes assistance in the forin of an agreement as public-private partnership and
requests a(five)5 year forgivable loan at no interest for construction costs associated with
bringing Utilities infrastructure to the Building,Plumbing infrastructure,Historic Preservation
repairs to the building(approved by Design,Review—Landmark Commission),installation of
HVAC infrastructure,Historic Preservation of exterior-Awning,Architect/Engineering(req.by
Building Inspection),as the Historic Preservation and Renovation of this LANDMARK building
is working with compliances under the 2015 Building Code.A 4B Contract would require
completion of project,Certificate of Occupancy and Open for business before any payment
requested,Owner will also agree to a claw-back provision,IF for any reason,the project does not:
trove forward.
Bruce_Deeb Construction Company,as General Contractor,and Syd Litteken,AIA,(preservation
architect)have provided the cost estimates in the requested amount of$23,975.00.The total
construction cost is$159,831.00.'The 4B AnplicaCion reouest is'for 15 OII"lam�1 ttroicct east
The investment by 413 Tax Board would.return Multiple Benefits to the City of Wichita Falls:
• Sales Tax Increments projected on$500,000 in annual sales from the First wholesale
coffee roaster in Downtown and the!First Nine=Tasting/distribution featuring Texas
Wines.Hoof&Ladder Wine&Coffee Company,as a destination/unique retail venue,
attracting Convention Heritage'Fourism to Depot Square Historic District.Historic
Preservation would provide Sales tax revenue in excess of$500,000 with:FFE.
• Real and personal property tax increases-would benefit TI `94 and city tax revenue
• Impact:8 new employees.Historic Renovation: 10 jobs.
• Heritage Tourism impact:Direct Spending$6,591 (10,5%of 500Tv M persons spent on
Texas Travel.Food Beverage per day trip average is$49.31.
• Provides-a coffee and a wine tasting experience to the Downtown Entertainment District
and for the new Gateway/Double Tree Convention Hotel.
• Fresh,quality coffee exports availability and a Tasting room underlines the true
definition of economic development with expansion of other distribution outlets.
Existing conditions at the 616 71h Building Require assistance for the Economic Crap of
S23,975. 0 as per our 4B request.
1999 Landmark Designation
616 Seventh Street
"This building was one of the fist brick buildings built in Wichita Falls, Restoration uncovered
original storef, nt circa 1880s. The building was vital to downtown commerce fraan the lute I9th
to early20th centuries." Building was built in 1884,and is one of the two remaining oldest
buildings in Wichita Falls.
Projected Costs—Deeb Construction Company
1) Exterior Infrastructure Masonry(as per Design Review:tuck-point plaster existing brick,
Paint with high—grade masonry/stucco paint, Facade and West wail,$5575
2) Repair/Replace broken glass—transorns-and display windows.$1415'
3) Repair Renovate Historic'sign/remove and replace.$1725
4) Repair/replace porch fascia/soffit.(redwood)Awning Paint trim.$1600
5) Electrical Infrastructure/Upgrades/lighting $5855
6) Replace/remove false ceiling:code and restore original ceiling:$1 g75
7) Plumbing Infrastructure:ADA requirements,exterior hose bib,3 compartment sink,under
the counter grease trap;installation gas supply line,water supply valves,HW heater,'
$6500
g) Communications infrastructure/security:Wiring Wi-Fi,internet,pos system,$3685
3) HVAC/Insulation Infrastructure:$6,587
10)Built-in infrastructure/equipment:Gas coffee roaster hook-up,temp controlled storage for
wine,K cup filler sealer: $20,025
11)Carpentry infrastructure/replace./repair—Interior:wine storage/cabinetry/code reel;
$6500
12)Exterior infrastructure:cooler storage. Walk-in:$4500
13)FF&E:Table tops/Chairs,Hook-ups,Wine Inventory: $63,000
14)Texas Historical Commission/Landmark Resign Review Process(Parts A,13 C)—
Consulting/CPA Audit:$7500
15)Architect/Engineering/General Conditions:$4500
16)Permits/fees/Licenses:$5.000
17)`Contingenees:(10%)$10,000
Respectfully submitted
Andy ee
Consultant for HLCC'Jentures L,LC
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Bill Teske,Managing Partner
Managing Partner—HLCC".Ventures LLC
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Architectural Mans submitted for Building Permit
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. aas �IT4AY& DEPARTMENT OF COMMUNITY DEVELOPMENT
+ PLANNING DIVISI
October 30,2017
Mr.Weske
4225 City View Drive
Wichita Falls,TX 76S05
Dear Mr,Weske:
RE Certificate of Appropriateness
616 711 Street Paint Ex riar Repair Fascia and So is Re pair attda
Reface Sign Recilace B�Vinovas and Franf Door
We appreciate your initiative in contacting our office and working through the design review
application process.
As you are mare the City of Wichita Falis Landmark CQmmiss€cn convened on October 24,
2317 to review and discuss your application for Design Review at E16 7th Street,located
within the Depot Square Historic District, The LandmarkCommission,after discussion,
unanimously approved your request to paint the exterior°of the building,repair the fascia
and soffit,repair and replace the sign,and replace windows. The proposed door
replacement was tabled for discussion at a future meeting:
Can behalf of the Landmark Commission,the Planning Division appreciates your efforts to
maintain and improve your property,which also improves the overall value of the downtown
area. if you have any questions regarding the Commission's recommendation, please
contact me at the above number.
Sincerely,
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Matti ew S.Prouty�— q�
Planner 11
p:c: Andy Lee,Chairperson,Landmark Commission
Ricky Horton,plans Reviewer,Building inspection Division
ciTy or-wn:Hm FALLS
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Original restored tin ceiling and transoms.
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Required awning repair and painting the entire building.
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' Existing floor the circa 1908 Texas Club.
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Restoration of Original sign to include
LED lights,painting and repair.The entire building fagade will be repainted.The West exterior
wall shall be painted.
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HOOK&LADDER WEBSITE: 1909 FIRST WF FIRE DEPARTMENT—9Tx AND OFITO
48 SALES TAX CORP.
Budget&Financial Statement Adopted Adapted Approved. YTD
1 21612 01 7 ..r-' FY 98 XS ' Et
'roved Actual Bttcidet" Actual "$tart a Actual Bii. tlueR Actual.
Revenue
Sales Taxes _ $ 3,733.901 '$. 3,722,6 1' $ 3,728 961 S,.IJQ P,754 S 3,735 566 3J'i3,442 _..
Interest ..... .._ ,. $ 996 .." 1',13 $ 8 723 ".$,' B,'pC1, $ 21.666" 1'SrSt3d 2,758
Reimbursement(TIF#2) .. S 498.085 .381,883, $ 381883 358,3 $ 321161
Other Reimbursements $ 116,111 `• ,'1'G6,1ii" $
Remaining Project Balances $ 1,593,000 J "
Total Revenues. "". _._ S 5,942.093'$"4:221&4$ $ 4,235 673 '1 4m7.636 $ 4.078 393 $ 4:t"196.t}SC.k
COMPLETEDtCLOSED PROJECTS
MNTH-,fenny Exhibit , ,-. MB3 .S3: $ 223,517 •$. 14 14,266
RENC Upper Walking Path S Sow $ 59.413
Tennis Center Lights $ ':B20,000 $ 629.211 "- '' '
Lake Wichita Permit _ 158;126 $ 158,125
Softball Field Lighting _... $_ „S4O7,0(10 $ 638,512 .
DWFD•Farmers Market Imprvmts ,°.134.3s1 $ 86,874 $ 54 885
W ayfinding:Signage 10301,O)00 $ 100,000 . ,140,OD) $ 140.000` . .
Falls Bridge Replacement and By Pass "'" `" '" 53,S010 $ 53,800"
Hotel Consultants(Proposals) $ 35,0D0;$ 10,674 "
Kemp Sidewalk Project _._ _. ",$ 136 fs2"2 $ " 16 800 $ 119 222
Trail Project(Bluffs to Loop 11) $ 279,436s $ 44 470 " $ 234 593 '
Hotel Developers(Gatehouse) _. _... ,$ 111,O0G $ 105,024 _.
Brick Oven Pi=a Pub Craft Beer ,$` Ii,:tH7tl $ " $" ":#4,2i.1f}. 44,200
120 Day Extension with Gatehouse ap"Ow $ 309.000"
P-2 The Deuce"Warehouse"Ramp ,Fr:2(P0 $ 6 200 .. ..,)...
ANNUAL PROGRAMS/EXPENDITURES
Debt Service--Projects
Trail Land,Firing Range(2009) , 492,529, S 492,529 $ 490,628 $.... 490,628 4,k1 2$ $ 491.228,$; 4$;5,174 491,174
TIF#2 Maplewood(2006A Series)... ;$" 2;31,t;.t55. $ 231,055 5. : $31'1,its $ 148 824
Golf Renovation(20068 Series) _ 359,5`t3 $ 369,513 4,7f}8= $ 200 070
Castaway Cove Water Pk(2010) '$87, eo: $ 387.O60.$ :,3 ,SE}' $ 389 600 's85,444 $ 386.440 ;$ t,3'7,$9U
TIF#2,Rhea Road(2011) _ $ ':229,254, S 229250 $' ."1,4 $ 231 450 ;:$ '22 $ 228,550
WF Municipal Airport(2013) 1401 OPq $ 140.000 ';$, t4Ct,{,1 $ 140,000 $, ",14t1,O8.4Q' $ 140.000 '1447,Ctii3 _
Public Safety Projects(2013 Series)._. ;$ 418,57t $ 418,576 ""00,$1a. $ 400 876 ";$. B. t0 $ 355 250
TIF#2 Maplewood(2015 A Series) _ $ 81 014 ,;:$ =2i18,3 $ 208 382 ;$. S4,6itS8.,.
Golf Renovation(20158 Series) '; $ 161 411 $ 325,494 $ 326.494 $ 321,460'
Downtown Improvement Grants ,?§ -60600"'� $ 18,350 .$ fi'0t0100 $ 37,169 :5b,01pt1 $ 39.004 $ ;.,` {y;Q0d3 11,417....
CVB Incentive Funding : 35;09t1 $ 35,000 ,$. S,§,0 Q' $ 38,000 55,E $ 35 00Q ;.a's 000,
Professional Fees $ 18 D00 3.817
Capital Equipmt Maint I Imprvmts
Radio Maintenance(73238) _ $ . 139,568' S 127,102 `.'132ptk'H1, $ 124,897 ",$, 132;. S 9 792 13,2 000,
CAD,Records Maint 173239) ;$ ,.:125,000"� $ 139:395 "$.' 1485s104; $ 175 214 196,29 $ 189.205 $ 198:0001 196,685._..
MDT Software Maim(71110,72011)_ ';178,S77 S 194,119 202a$85 $ _ 179 636 ,$ q ,847 $ 175 911 .:..'195;66t3'.. 147,247
Street Improvements =4{}Dv#}7.14 $ 400.DOQ 417GS00 $ 400 D00 :. 4ts,t $ 375.382
Administration Charges .. $ 1t];#3Udi" $ 10 000 1tftYt)E1 $ 10,000 "1t},t $ 10 000 ;
OPEN PROJECTS
District 5 Park Improvements $ 107,72R, $ 169 724 $ "` 2.000
Buxton Retail Services _ $:",".,�aO1;t3CatS $ 50 000 ,$+ 5O1r4 $ 50.000
Center City 728 Indiana.
Grocerydae Cream Store 922 Indiana $ a5,4O7t1. $ `•
120 Day Extension with Gatehouse#2 . $' 31,s,ow $ 2371963
MPEC Parking Engineering Fees �'SS000
Wichita Falls Brewery 701 Indiana
Comprehensive Econ Dev Strategy " - 51;75t?' $ 161000 337391
4Kods Sake Theatre 914 Indiana fkodo `
Genache Custom Cakery 800 806 Ohio " ' '$.," §55,t}tPC}
OPG Sensor Living Units 1100 Lamar.
Wichita Co Heritage Society(Kell House)
Freese and Nichols Professional Svcs
Total Expenditures $ 4,508.813"$' 4.J74.A $ 4,240 420 $ a»04{¥: $ 4.154 916 .Yr '2.797.572 $ 930.131
Revenues Less Expenses $ LA33.280"$: l752:8443 $ 14742)r$ .(�i72:7985 S (76523),L1."=378 S {927.3731
Beginning Cash Balance S 2,430,249"$ 3,8S3,S29 $ 3,863,529 ,'S,858,787 S 3,858 787 $.3;78,2;Sk 3.782,264
Ending Cash Balance 3 858 787 2.$$6.989 S 3.782 264 $"5#18.4,t`s42
Reserved For Encumbrances $ 188 835 $ 18&,835 $ 757 122, 757,122. $ 1,447 992 1;$':1,43,792 3 319,350
Unreserved Fund Balance.._ $ 3,674.694:$ 2.921.854" $ 3.'I01 665'1 2.'I28.$€r7 S 2,334.272 .a7a.7150 S 1464.4597