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4B Sales Tax Corporation Minutes - 12/07/2017Foster Gaines PRESENT: Derik Schneider § Member 1. Cali to Order. Tony Fidelie galled the meeting to order at 3:01 p.m. N:A legal\4A, 4B, D SC TIFS14B CorpAB Minutcs\201712017, 12.7\Minutes_4B 2017.12.7.doc MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (4BSTC December 7, 2017 PRESENT: Tony Fidelie, President § Members Glenn Barham, Vice -President Rick Hatcher, Secretary-Treasurer Dawe Clark Darron Leker Michael Mills Stephen L. Santellana, Mayer § Mayor Jim Dockery, Deputy City Manager § City Staff Paul Menzies, Assistant City Manager James McKechnie, Senior Assistant City Attorney Linda Merrill, Recording Secretary l lenry Florsheim § Wichita Falls Chamber of Commerce Sarah Harpole Becky Raeke § Downtown. Development Samuel Pak Annette Ritchie § 914 Indiana Dwayne Jackson Judy Kurani § Metro Life Properties Anthony Patterson § 901 91h Street Will Kelty § Petroleum Building Sill Weske § HLCC, LLC Andy Lee § HLCC, LLC/Andy Lee Company Landon McBride § KFD Foster Gaines PRESENT: Derik Schneider § Member 1. Cali to Order. Tony Fidelie galled the meeting to order at 3:01 p.m. N:A legal\4A, 4B, D SC TIFS14B CorpAB Minutcs\201712017, 12.7\Minutes_4B 2017.12.7.doc WFEDC -- Minutes of December 7, 2017 2. Approval of Minutes of 10/16/17. 19 Rick Hatcher n of the minutes. The motion carried 6-0. 3. Financial Report. Jim Dockery said the first sales tax receipts for fiscal year 2017-18 are tip 3% from this time last year. The Board ended fiscal year 2016-17 with $4,079,000 in revenues, Expenditures totaled $4,154,916, resulting in a deficit of $76,000. However, the Board had a beginning cash balance of $3.8 million, as well as contractual reservations for encumbrances for previously approved projects. At the end of the fiscal year, the fund had $2.3 million in its unreserved fund balance. Revenues are budgeted at $4,096,000 for the 2017-18 fiscal year. Expenditures thus far total $2.797 million, putting the Board's fund in a surplus budget position of $1.3 million, with an unreserved fund balance of $3.676 million. 4. Public Hearing to consider amending the contractor of a previous performance agreement at 914 Indiana from the Wichita Theatre to Mike Shallenberger. Mr. Fidelie opened the public hearing at 3:09 p.m. Dwayne Jackson of the Wichita Theatre, 919 Indiana, thanked the Board for approving funds for the sprinkler system for 914 Indiana. Two weeks after appearing before the Board, he was approached by Mike Shallenberger, who was interested in investment properties downtown. He has agreed to purchase and update 914 Indiana, and lease it back to the Theatre. Mr. Jackson requests that the perforniance agreement approving the funds for the sprinkler system be transferred to Mr. Shallenberger's company, Mr. Fidelie closed the public hearing at 3:11 pm. 5. Public Hearing to consider funding for a renovation project at 901 Ninth Street. Mr. Fidelie opened the public hearing at 3:12 p.m. Anthony Patterson has purchased 901 Ninth Street, also referred to as "The Brown Building." It currently has two retail businesses, a burrito shop and cigar shop. He wants to construct a 10 -unit apartment complex, with open floor plans, exposed brick and large windows. The exterior will be painted and the mot -tar repaired, and he will pave the parking lot, fencing the residential portion. fie would charge a minimum dollar -for -dollar per square foot, and provide water, Direct 'TV, Wi-Ti, and valet trash. Mr. Hegglund asked if any of the units would be low-income housing. Mr. Patterson said if they could afford it. Mr. Leik�cr asked if he was seeking tax credits. Mr. Patterson replied that he was not. lie added that if he simply went with office space, he would have no financing issues. However, he does need some assistance if lie constructs the apartments. But he believes these apartments would showcase Wichita Falls and would be a draw to industries coming to Wichita Falls and would offer something unique to the area. Mr. Hatcher asked what plans he has for the existing tenants. Mr. Patterson said the cigar shop is being insulated with firewalls and ventilation. and the burrito shop will also be updated. Neither business will need to relocate. WFEDC— Minutes of December 7, 2017 3 Michael Mills asked if his estimates for fire suppression and sprinkler system are from his architect, or if they are hard numbers from a vendor. Mr. Patterson said both. Mr. Fidelie closed the public hearing at 3:39 pm. 6. Public Hearing to consider funding to HL CC Ventures LLC (d.b.a. Hook and Ladder Wine and Coffee Company) to renovate the building at 616 Seventh Street. Mr. Fidelie opened the public hearing 3:39 p.m. Andy Lee, 1410 Grant, stated 616 Seventh Street, built in 1884, is the oldest brick building in Wichita Falls. The developers are opening a retail and wholesale coffee roaster and winery at this address. It is part of the Depot Square Historic District and on the National Register. They have applied for tax credits. The building has received design review approval from the Landmark Commission. A building permit has been issued; signage has been approved, and the building has been painted. The total cost of renovation is estimated at $159,000. They are requesting $23,975 from the 4B Board to be used for qualified expenses incurred in construction. Mr. Mills asked how they arrived at the request of $23,975. Mr. Lee said they received a bid from Atmos. Mr. I-legglund asked how much of that cost is for infrastructure work. Mr. Lee surmised it would cost close to $5,000 to bring as to the building. Mr. Hatcher asked if they own the parking lot on the west side or have an agreement for its use. Bill Weske said that lot is owned by Mathis West Huffines. They have had discussions about an agreement to use some of that lot. Mr. Lee said the plan is to open March 15. If this funding request is not granted, it will be two years before the project is fully completed. Mr. Fidelie closed the public hearing at 3:57 p.m. 7. Public Hearing to consider funding to the Petroleum Building Wichita Falls LLC for a renovation project at 726 Scott Avenue. Mr. Fidelie opened the public hearing at 3:57 pm. Will Kelty, 726 Scott Avenue, is interested in creating student housing in the Petroleum Building. When he bought the building, (Building Official) Bobby Teague allowed him to permit only the ground floor. All four retail units on that floor are occupied. He then was granted permits to have power and water restored to the 110 -room hotel. The power was turned on today for floors 2-5. He has toured the hotel with the person responsible for student housing at MSU and Greek life. The rooms are larger than what the university can offer and each one has its own bathroom. In addition, he will offer a weight room and swimming pool at $5004600 per month, all utilities paid. MSU will not publicly endorse this project, but will promote the apartments. Suzanne Shipley has promised to request a bus route from the city if he can get this student housing realized. WFEDC — Minutes of December 7,?Qt 7 4 He could open the building as a hotel without the need for a Certificate of Occupancy. However, he wants to have a campus downtown, but that involves a change of use from transient housing to permanent housing. He has plans for 60 regular apartments for the upper floors, perhaps attracting base personnel or those from the medical center. Mr. Mills asked his plans for management of the property. Mr. Kelty said he owns several downtown buildings, and can leverage the maintenance. He acknowledged Judy (Kurani) in the audience as his property manager. Dave Clark asked if he saw any problem with the hallways on the outside and the rooms on the inside. Mr. Kelty said MSU officials said the students like to socialize and would spend time in the hallway, anyway. The upper floor apartments would not be designed this way. Mr. Clark asked about the condition of the elevators and the chillers. Mr. Kelty said the first elevator to be repaired will be the one that runs from the basement parking to the student efficiency floors. The chillers have been vandalized, along with the rest of the building, but they can control the efficiencies. fie would install individual units for the upper floors. Mr. Dockery asked about the City Center project, as the 413 Board had granted $225,000 on that project, Mr. Kelty said he is attempting to combine financing on all three projects — the hotel, City Center, and Big Blue. The closing, originally December 15, was delayed due to the appraisal not being ready. Work is continuing on the electrical, elevators, and plumbing. Mr. Dockery asked his plans for parking, Mr. Kelty said the building has enough parking to sustain the student efficiencies. There is potential for after-hours parking at Big Blue, He has talked with the County about access to the parking garage that shares a bridge with Big Blue, but nothing is definite. Mr. Dockery noted Mr. Kelty is seeking $881,000 from the Board, and has also asked that it be paid as the work, is done, as opposed to after the issuance of a Certificate of Occupancy. Mr. Kelty said vendors must be paid, and it could be three months or more, before the Certificate is issued. Mr. Hatcher asked if he could get a bridge note. Mr. Kelty said his projects are all fairly substantial and it has been a challenge to find financing. Banks tend to shy away from secondary market locations, such as Wichita Falls. Mr. Fidelie closed the public hearing at 4:26 p.m. 8. Update from Henry Florsheim on Economic Development Strategy. Henry Florsheim reminded the Board that it bad funded one-half of the contract with Market Street Services (MSS) to develop a holistic city-wide economic development plan. The group was hired early this summer, and met with focus groups and key leaders. A city-wide survey was issued, and 4,000 responses were received — the second-highest response MSS has received in over 160 communities, MSS took this feedback, and along with the steering committee, developed a regional assessment. The steering committee met again in September to discuss this assessment, which will be made public in early January. WFEDC - Minutes of December 7, 2017 5 They next met in November. The committee broke into groups, and discussed their vision for Wichita Falls, the impediments to that vision, and how to overcome them. They will meet again next week, with a new draft of the strategy. There will be seven focal points, two of which will be related to downtown and school facilities. In March, the committee will review the implementation plan, and adopt it on April 26. MSS will return in one year to assess the progress. Mr. Florsheim thanked the Board. 9. Executive Session Mr. Fidelie adjourned the meeting into executive session at 4:33 pm. pursuant to TEXAS GOVERNMENT CODE section 551.087. Ile announced the meeting back into regular session at 5:45 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. 10. Consider amending the contractor of a previous performance agreement at 914 Indiana from the Wichita Theatre to Mike Shallenberger. Mr. Leiker moved to authorize transfer of the --perfortryance a Yreenient at 914 Indiana between the 413 Sales Tax t o oration and 4kidz Sake of Wichita Falls to Mike Shgllenbergg and/or one of his co orations, findina that this moiect and improvements will 'Promote or develo new or ex ended business enter rises. The terms of the ori sinal aereement shall remain the same under the transfer, and Mr. Shallenberver must remain the owner of 914 Indiana for the life of the for aivable loan. Glenn Barham seconded the motion, which carried 6-0. 11. Consider funding to HLCC Ventures LLC (d.b.a. Hook and Ladder Wine and Coffee Company) to renovate the building at 616 Seventh Street. Mr. Barham moved to authorize for renovation of 616 Seventh Street in the form of electrical, plumbing. communications natural las, and/or cooler infrastructure andlcr n other le all authorized a ose rovided the Certificate that this -oroiect and iti2grqyements will Dromote or develov new or exi)anded business enterprises he further moved that HLCC Ventures I.LC be required to secure can aareernent for off-street Parkingas close as ossi�bletq their facility at 616 Seventh Street, The motion was seconded by Rick, Hatcher. and carried 6-0. 12. Consider funding for a renovation project at 901 Ninth Street. Mr. Fidelie moved to amorove a five- ear forgivable loan to Anthony Patterson for renovation of 901 Ninth fire alarm s d the Certificate of ,�qncyJs ranted b December 31 201 for a minimum of 10 residential units at that location. Ile found that this prolect and im rovements will romcte or devel> new or ex ended business enters rises. Seconded by Mr. Hatcher, the motion c airied 6-0. 13. Consider funding to the Petroleum Building Wichita Falls LLC for a renovation project at 726 Scott Avenue. Mr. Fidelie moved to approve a five- ear forgivable loan to the Petroleum Building g_ Wichita Falls UC for costs associated with fire supmession, fire alarm system, and other related items at 726 Scott Avenue as determined by the Denuty Cit v ManatTer, in an amount not to WF DC — Minutes of December 71,2017 6 exceed $800,000. -orovided the Certificate of OccuDancy for at least 11.0 residential units is granted by July 1, 2018. He further moved that the owners of 726 Scott Avenue shall receive three bids for these items, and Dresent the lowest and best bid for review to the Deput Cit Manager. Further, the owners must work with Midwestern State University officials and have an agreement in Dlace for a dedicated bus route from the Universitv to 726 Scott Avenue�or to Jul v 1, 2018. Further, the property must be used as residences and not as transient hogs in,with determined bv the Cit v Attornev. He found that thzs iro'ect and iiri roveiients will romote or develo new or ear sled business entemrises. Seconded by Dave Clark, the motion carried 6-0. 14. Adjourn. The meeting adjourned at 5:54 p.m Guy F idelie, Jr., President