4B Sales Tax Corporation Minutes - 04/22/2019MINUTES OF THE
WICHITA FALLS 4B SALES TAX CORPORATION (413STC)
April 22, 2019
PRESENT'
Tony Fidelie, President §
Glenn Barham, Vice President §
Rick Hatcher, Secretary -Treasurer §
Dave Clark §
Darron Leiker §
Michael Mills §
Derik Schneider §
Mayor Stephen Santellana §
Jim Dockery, Deputy City Manager §
Paul Menzies, Assistant City Manager §
R. Kinley Hegglund, Jr., City Attorney §
Blake Jurecek, Director of Information Technology §
and Facilities §
Bobby Teague, Assistant Director of Community §
Development/Building Official §
Linda Merrill, Recording Secretary §
Members
Mayor and City Council
City Staff
Dane Rodriguez § 922 Indiana
Jeremy Steinruck § 914 Scott
Lloyd Lovely §
Jana Hausburg §
1. Call to Order.
Tony Fidelie called the meeting to order at 3:32 p.m.
2. Approval of Minutes of 2/4/19.
Dave Clark moved for approval, seconded by Rick Hatcher. The motion carried 7-0.
3. Financial Condition.
Jim Dockery said the Board has an unreserved fund balance of $4.773 million. That is what
the Board has to allocate for future projects, assuming revenues come in as budgeted and all
expenditures are made as previously approved.
Revenues are at $1.645 million in sales tax receipts. That is for five months of receipts.
That is up a cumulative 5.41% over the prior year. The Board had projected a flat $3.984 million,
so that account is on pace to generate $4.192 million, assuming 5.41 % continues for the rest of the
fiscal year.
4. Public Hearing to consider a tenant lease agreement with City Center Wichita Falls,
LLC for 30 parking spaces in the Lindeman Building
Mr. Fidelie opened the public hearing at 3:35 p.m. Mr. Dockery reminded the Board that
it gave the staff permission to accept ownership of the Lindeman parking garage for potential
economic development agreements, assuming details could be worked out. The 4B and County
reached the terms as directed.
Before accepting ownership, however, it is important to ensure that the main tenant of this
parking garage, Will Kelty, who requested 30 parking spaces for the City Center, still wants those
spaces. He has tentatively agreed, and the City's legal staff has drafted a lease agreement for his
signature. The lease agreement's highlights include that it is for 30 years, and can be terminated
with 180 days' notice by either party for various reasons, including non-payment, default,
bankruptcy, and abandonment. The City will set the fair market value of those parking spaces, and
the agreement allows for that fee to be adjusted to a cap of 30% every five years. The garage can
only be used for the parking of cars, and no signage will be allowed. The County will also have
reserved spaces.
Blake Jurecek is here to again discuss what measures are envisioned to be taken toward
maintenance. Mr. Jurecek said the high priority items include:
• LED lighting at a cost of $55,000
• Painting and general cleaning in the stairwells
• Closing the breezeway to the Big Blue
Annual expenditures would include utilities, trash clean-up, and general liability at a cost
of $23,800.
Two disabled parking spots are available around the exterior of the facility, so there are six
in total, including the four on the first floor in the building's interior.
There was discussion of striping, elevator repair, and access control, but these items are
not necessary to get the building in operation. Mr. Dockery noted it is not clear who would help
the residents in the event of a malfunction or regarding the issuance of keys. Instead, it is suggested
that the City's sign shop make signs that reserve parking spots for residents of the City Center, and
for the County.
There being no further discussion, Mr. Fidelie closed the public hearing at 3:43 p.m.
5. Discussion regarding PETS Project at 3001 North Central Freeway.
This item was withdrawn at the request of the Executive Director of PETS.
6. Public Hearing to consider a request for funding not to exceed $65,000 from Legacy
922, LLC for development of retail space at 922 Indiana.
Mr. Fidelie opened the public hearing at 3:44 p.m.
Dane Rodriguez, 1580 Singleton, Wichita Falls, Texas 76302, said he and his partners have
worked on the building since they purchased it in 2016. He presented a slide show of the progress
they have made. It is a three-story building consisting of approximately 22,000 square feet. At
present, they have focused primarily on the first floor. They replaced all the T12 lighting with
LEDs, and removed the floating ceiling and replaced it with the original ceiling tiles that have been
restored, even removing some from the basement ceiling. In addition, they removed all the plaster
from one wall to expose the brick. They have dry walled and painted, and redone the original pine
floors. The sprinkler system has been installed on every floor. The office on the second floor has
also been restored, as they envisioned it as a good place to oversee operations on the first floor.
They were naive getting into this project, and it took a lot more time and money than they
realized. They acknowledge the graciousness of the 4B Board from the start. They initially
intended to do a grocery store, but later learned that the P Street Coffee House intended to expand
into a grocery store, so they backed off from that. The soda parlor aspect required more changes
to the building under the Building Code, and therefore more financial investment than they wished
to make, given the $150,000 already invested.
They are asking for a new agreement to procure $65,000 to cover the cost for the sprinkler
system so they can get a tenant in to lease the premises. They are not that far away from having it
ready. They will do something with the third floor and the basement in the near future.
Mr. Leiker asked him to elaborate on Oncor's service requirements. He heard there were
some issues there. Mr. Rodriguez said they have found out some of their panels are not up-to-date.
They have hired an electrician who has given them a fair quote of $10,000412,000 to do the job
and is waiting to proceed. Mr. Leiker asked what type of tenant are they seeking for the building.
Mr. Rodriguez said they want to get the right tenant on a long-term lease, someone who will
contribute to downtown. It was once an antique thrift. There are several of those downtown that
are thriving, but this is a prime location and they want to leave their options open.
Mr. Fidelie closed the public hearing at 4:02 p.m.
7. Public Hearing to consider a request for funding not to exceed $48,000 to renovate
the building at 914 Scott Street for an exercise studio and residential quarters.
Mr. Fidelie opened the public hearing at 4:03 p.m.
Lloyd Lovely, owner of 914 Scott, moved to Wichita Falls from Oklahoma City two years
ago. His partner, Jana Hausburg, was hired two years ago as the City's Library Administrator.
They were big fans of the downtown area in Oklahoma City, and feel the same way about Wichita
Falls. They bought 914 Scott one year ago, and have decided to develop it into a combination
yoga/exercise studio and personal residence. Ms. Hausburg could walk to her work at the library.
However, they have used most of their savings buying and gutting the property. They are
asking for financial assistance (of $48,000) in getting it built into a studio and residence.
Mr. Dockery noted that the packet provided to the Board included building plans drawn by
Bundy Young Sims and Potter, and estimates from Axis Construction. The total projected
investment is $482,863. He asked if that will be what it takes to get the front office space leased.
Mr. Lovely said Ms. Hausburg would run and manage it, contracting out for instructors. They are
ready to go, as they have conditional financing. They are waiting for an appraisal.
Kinley Hegglund asked if the $48,000 requested is for phase 1 or phase 2. Mr. Lovely said
it would be for both; the priority is to get phase I completed so that the studio can be opened.
Mr. Hegglund explained that the Board typically enters into performance agreements under which
money is not granted until a certificate of occupancy is issued. Thereafter, the money is granted in
the form of a forgivable loan over five years, forgiven at 20% for every year of successful operation
of the retail enterprise at that location. He questioned whether phase 2, the residential, would be
something that would need to be delayed. Mr. Lovely said he would prefer it be granted in two
phases, with 2:'3 of the grant in phase 1.
Mr. Fidelie thanked Mr. Lovely for their investment in downtown. He asked if the
residential area was to be a single residence. Mr. Lovely said it was, and that he and Ms. Hausburg
planned to occupy it.
Mr. Schneider asked why they wished to open a yoga studio. Mr. Lovely said Ms. Hausburg
does yoga every morning. Ms. Hausburg addressed the Board, stating that she is looking to bring
Zumba, yoga and a meditation room into one studio. She has worked up a business plan with a
yoga studio from Oklahoma City and has purchased a domain name.
There being no further discussion, Mr. Fidelie closed the public hearing at 4:14 p.m.
8. Executive Sessions.
Mr. Fidelie adjourned the meeting into executive session at 4:14 p.m. pursuant to TEXAS
GOVERNMENT CODE sections 551.072 and 551.087. He announced the meeting back into regular
session at 5:07 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.
9. Motions.
Tenant Lease Agreement with City Center Wichita Falls, LLC
Dave Clark moved to authorize legal counsel to negotiate an agreement with City Center
Wichita Falls, LLC for 30 parking spaces in the Lindeman Building. Seconded by Michael Mills,
the motion carried 7-0.
Request for Funding from Legacy 922, LLC for development of retail space at 922
Indiana
Mr. Leiker moved for approval of fundiniz not to exceed $65,000 for development of retail
space at 922 Indiana, granted only at the time of issuance of the Certificate of Occupancy, and in
the form of a loan forgiven over five years at a rate of 20% for each year of successful operation
of a retail enterprise at that location. Seconded_by_Glen Barham. the motion carried 7-0.
Funding to Renovate the Building at 914 Scott Street for an Exercise Studio
Mr. Fidelie moved to approve funding not to exceed $17,500 for the renovation of the
exercise studio at 914 Scott Street, granted only at the time of issuance of the Certificate of
Occupancy, and in the form of a loan forgiven over five years at a rate of 20% for each.year of
successful operation of an exercise studio at that location. Seconded by Rick Hatcher, the motion
carried 7-0.
10. Adjourn.
Mr. Fidelie acknowledged Derik Schneider's service on the Board. He is moving outside
the corporate limits of Wichita Falls, and this is his last meeting as a member of the 4B Board.
The meeting adjourned at 5:11 p.m.
Glenn Barham, Vice President