4B Sales Tax Corporation Minutes - 09/12/2018MINUTES OF THE
WICHITA FALLS 4B SALES TAX CORPORATION (4BSTC)
September 12, 2018
PRESENT:
Glenn Barham, Vice President
§ Members
Rick Hatcher, Secretary -Treasurer
§
Darron Leiker
§
Michael Mills
§
Derik Schneider
§
Stephen L. Santellana, Mayor
§ Mayor and Council
Bobby Whiteley, Councilor at Large
§
Jim Dockery, Deputy City Manager
§ City Staff
Paul Menzies, Assistant City Manager
§
R. Kinley Hegglund, Jr., City Attorney
§
Linda Merrill, Recording Secretary
§
ABSENT:
Tony Fidelie, President § Members
Dave Clark §
1. Call to Order.
Glenn Barham called the meeting to order at 3:03 p.m.
2. Approval of Minutes of 8/23/18.
Michael Mills moved, seconded by Derik Schneider, to approve the minutes. The motion
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3. Financial Report —presented by Jim Dockery.
Revenues total $4.383 million, which includes sales tax receipts, TIF reimbursements,
and interest earnings.
Expenditures
• Debts obligations, including the golf course, Castaway Cove, Maplewood
• Downtown grants (increased by $50,000 for sidewalk improvement program)
• CVB ($35,000 for additional incentive funds)
• Software and consulting services fee of $4,000 to analyze sales tax
• Professional fees of $10,000 to offset staff time spent on 4B matters
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WFEDC — Minutes of September 12, 2018 2
These annual commitments are basically non -discretionary and total $2.37 million. This
leave $2 million available for requests. The Board also has an unreserved fund balance of $3.9
million; he prefers to keep 25% in the event bonds are issued.
The following are items being requested:
Matching State TAP grant for three sections of the Circle Trail - $675,000. Three of
four sections are remaining to complete the 26 miles. State funds in the sum of $5.4 million have
been approved to build these sections, but the City has a matching requirement of $1.550 million.
These sections have to be under construction by 2020. They are in various design stages now and
will be separated into three fiscal years. TxDOT is providing the grant.
1. Loop 11 to Lucy Park — ties Lucy in to the Bluffs area. $597,000
2. Seymour Highway -Barnett Road — $550,000 match, but will only need $63,000 this
year for the advance funding arrangement to commit to TxDOT.
3. Lake Wichita Park to Larry's Marine - $400,000; only a small portion needs to be
paid this year. Mr. Barham asked if this is going out over the water. Mr. Dockery said
they plan to apply for that section in the next TAP grant application.
Additional Downtown grant for sidewalk improvement - $50,000
Horseshoe Pitchers' event - $50,000
MPEC
• Roof - $500,000
• LED lighting at Coliseum - $125,000
• Renovation of seven restrooms - $105,000
Mr. Barham asked if the City expected any blowback from spending money on
renovations to the MPEC facilities, in light of the fact the citizens voted down a bond to improve
it. Mr. Leiker said he viewed the referendum as whether the citizens wanted to approve a new
property tax, which they did not. The sales tax had already been approved, and these
improvements are legally eligible. The 4B fund fields many requests with not enough money to
go around, so the bonds were the first attempt at funding.
These requests total $3.875,891, leaving the Board with $500,000 of revenue to hear
other requests, plus its unreserved fund balance of nearly $4 million.
Michael Mills said the trail project is important, but he had concerns about the MPEC
projects. The hotel project is still pending, and he has a hard time committing to both, as each
requires substantial funding and could stop the Board from funding other projects. Mr. Dockery
said those are good points. Unfortunately, there has to be some funding source for these MPEC
facilities. It is down to either the 4B Board or the City's general fund. Mr. Leiker said it could
have easily been a $2 million request. Mr. Barham said there was a commitment when MPEC
was built that no general fund tax dollars would be used to operate it. The hotel/motel tax
covered the operations for many years, but it now needs to be subsidized.
Mr. Dockery said the staff tried to look at what was coming ahead for the 4B Board. The
debt for the hotel would be paid through its revenues. The 4B funds would be there to backstop if
the revenues do not materialize. There would be an annual $500,000 obligation. A debt service
obligation of $350,000 for public safety projects was just retired. He asked that they remember
WFEDC — Minutes of September 12, 2018
that these requests today are one-time projects, not annual commitments. There are two more
trail sections, and MPEC could come back for more requests, but not for an annual debt service.
Mr. Hatcher asked if a white foam spray coating that stop leaks and insulates had been
considered for the roof, in lieu of an entire roof replacement. Mr. Leiker said he doesn't know if
that had been considered, but the roof has been patched several times. Mr. Hatcher said this
spray coating could last 15-20 years. Mr. Leiker suggesting removing that request and getting
firm prices on that product, and coming back with a supplemental request.
4. Approval of 2018-19 Budget.
Rick Hatcher moved to approve the 2018-19 budget as presented, removing the $500,000
for the MPEC roofing proiect. Seconded by Derik Schneider. the motion carried 5-0.
Updates:
614 7th Street (Upstate Ireland) — Granted $22,000 of $120,000 project. They have their
building permit and are removing the stucco on the back of the building and replacing the roof.
They are waiting on historical tax credit money, and expect completion by December 2018.
1100 Lamar — Affordable housing by OPG. $300,000. Building permit issued; estimated
completion date of February 2019.
Ice cream parlor - $65,000 for fire suppression system. They now have their plans and are
close to getting a permit.
Kell house — $100,000 on a $1 million capital campaign. They must raise $750,000
before they receive the 4B funds. They have raised $250,000. They plan to rehab by spring 2019.
9th Street Brown Building - $122,000 for fire suppression system. Upscale apartments.
Estimated completion by first of 2019.
728 Indiana, City Center — Calling for initial rough -in inspections this week. Anticipate
people moving in before the end of the year. Kelty did get his loan.
Farmers' Market — approved plumbing, electrical, mechanical improvements. Will have
bids by the end of the week.
Hotel — Up to this point, Gatehouse has been dealing with lenders they either knew or
those to whom they had been referred. Nothing had materialized. They hired a broker who does
capital financing deals who went to the market on their behalf and solicited proposals. They are
working with three lenders and are getting closer. Banks will lend to them if someone will sign
on as a guarantor of the loan. Gatehouse is a development team and they do not put capital into
the deal. When that happens, there is no recourse other than the asset they're loaning money on,
and that makes banks reluctant. They want someone to guarantee they'll be 100% paid back.
5. Adjourn.
The meeting adjourned at 3:55 p.m.
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Glenn Barham, Vice President