4B Sales Tax Corporation Minutes - 11/26/2018MINUTES OF THE
WICHITA FALLS 4B SALES TAX CORPORATION (4BSTC)
November 26, 2018
PRESENT:
Tony Fidelie, President §
Glenn Barham, Vice President §
Rick Hatcher, Secretary -Treasurer §
Dave Clark §
Darron Leiker §
Michael Mills §
Derik Schneider §
Jim Dockery, Deputy City Manager §
Paul Menzies, Assistant City Manager §
R. Kinley Hegglund, Jr., City Attorney §
Blake Jurecek, Director of Information Technology §
and Facilities §
Linda Merrill, Recording Secretary §
Members
City Staff
Andy Lee § 6"' Street Winery LLC
Billy Andersen §
Claire Kowalick § Times Record News
1. Call to Order.
Glenn Barham called the meeting to order at 3:32 p.m.
2. Approval of Minutes of 9/12/18.
Rick Hatcher moved, seconded by Glenn Barbam, to approve the minutes. The motion
carried 7-0.
3. Financial Report —presented by Jim Dockery.
Today's report focuses on the end of fiscal year 2018. The sales tax receipts ended 6.46%
ahead of last year's actual numbers, making this the best year -over -year percentage increase
since 2006.
Revenues reveal the impact of the sales tax collection. While $3.723 million was
budgeted, $3.976 were the actual sales tax earnings. The Board also earned $45,000 interest
earnings on its idle ftinds, compared to the budgeted figure of $15,000. Revenues are also
derived from reimbursements from TIF42. Total revenues equaled $4.379 million, exceeding the
budgeted $4.096 million.
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WFEDC --- Minutes of November 26, 2018
Actual expenditures totaled $3.329 million. Revenues exceeded expenses just over $1
.million. The Board started the year with a cash fund balance of $3.78 million, and ended with
$4.8 million, with $1.36 million encumbered for projects not yet completed. The unreserved fund
balance at the end of the fiscal year was $3.47 million.
The Board has $4.477 million from which to make appropriations for projects.
4. Public Hearing to consider a request for funding from the owners of 600 Sixth
Street to assist in the development of a Texas winery and tasting business
Mr. Fidelie opened the public hearing at 3:37 p.m.
Andy Lee, 1410 Grant, Wichita Falls, Texas, represented Bill Andersen, owner of 6"'
Street Winery. This business has been incubating at the Farmers' Market for the past 2-1/2 years.
The location for this proposed winery and tasting business is a brick building at 600 Sixth Street.
Built in 1909, it is in the Depot Square Historical District.
'They hired a preservation architect from Austin to assist with the plans, and have been
twice to the Landmark Commission for approval. There have been major infrastructure issues.
National and state tax credits could have been available for this project, but that would have
delayed the project by at least eight months.
Mr. Lee said this project is important to historical tourism efforts of this community, due
to the amount of money generated from wineries in the state of Texas.
The project's original budget was $314,000, but that will change due to additional costs
for lighting. They request 11 % of the project total, or $33,000. Ile believes the total project costs
will ultimately be between $340,0004350,000, making the request closer to 10%.
The building is 7,500 square feet in size and they estimate $500,000 in sales from this
enterprise. Six full-time employees would be hired. There is an opportunity for a tenant in part of
the building in the future.
Derik Schneider asked where the wine is produced that will be served. Mr. Lee said the
majority will be from Texas grapes.
Mr. Fidelie said he would like to address some questions to Bill Andersen, who came to
the podium. Mr. Fidelie asked how he decided to make this investment. Mr. Andersen, 4403 Post
Oak Drive, Wichita Falls, Texas, said lie and his wite enjoy visiting wineries across the state. His
wife is a teacher, and they meet many other teachers at various tasting events. fie has been
informally making wine since 2011, and ultimately they decided to make this their business upon
retirement. They have been doing a good volume at the Farmers' Market.
Mr. Fidelie asked the nature of their relationship with the local wineries. Mi.. Andersen
said they are friendly competitors, but they collaborate on marketing. There is $1 million per
month of revenue going to Fredericksburg from the Metroplex. 'There are a lot of wineries in the
North Texas area, and good wines, but that word needs to get out. They are also working with
the North Texas Winery Association and the 'Texas Wine and Grape Growers in Austin.
Wineries work better in clusters. People who enjoy tastings and visiting wineries typically won't
make the drive for only one, but will make a day of it for three or four of them.
Mr. Fidelie asked the planned opening date. Mr. Andersen said he hoped for the first
quarter of 2019.
WFEDC — Minutes of November 26, 2018
Mr. Dockery reminded all of the stipulations of the performance agreement. If funds are
granted for this venture, the agreement would be in the forrn of a five-year forgivable loan,
forgiven at a rate of 20% each year, and no funds would be disbursed until a Certificate of
Occupancy had been issued.
Mr. Fidelie closed the public hearing at 3:55 p.m.
5. Discussion of a Parking Garage Agreement with Wichita County
This item was reserved for discussion during executive session.
6. Discussion of Hotel/Conference Center Development Project
This item was reserved for discussion during executive session.
7. Executive Session
Mr. Fidelie adjourned the meeting into executive session at 3:57 p.m. pursuant to TEXAS
GOVERNMENT CODE section 551.087. fie announced the meeting back into regular session at
5:00 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.
8. Consider request for funding from the owners of 600 Sixth Street to assist in the
development of a Texas winery and tasting business
Mr. Barham moved to fund this re nest at $25,000 for electrical, water and sewer system
infrastructure, as well as concrete work in the alley easement, in the form of a five-year
for Livable loan payable upon the issuance of a Certificate of Occupancy. Seconded by Darron
Leiker. the motion carried 7-0.
5. Adjourn.
'Fhe meeting adjourned at 5:01 p.m.
Guy A. "Tou' Fidelie, Jr., President
February 4, 2019
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