TIF #1 Board of Directors Minutes - 05/24/2004Tax Increment Financing Board
MINUTES
May 24, 2004
Members:
Debbie White, Chairman 0 Members
Ben Filer 0
Al Flack 0
David White 0
City:
Bill Altman, Mayor 0
Jim Berzina, City Manager 0 Staff
David A. Clark, Director of Community Development 0
Bill Sullivan, City Attorney 0
Karen Montgomery -Gagne, Planner III 0
Others Present:
Dr. Dawson Orr, WFISD Superintendent
Lou Murdock, Wichita County
Marchman Inc. — Linda Ammons, Kenny Humpert
Chavez Contracting, Inc. — Tim Holmes
Vision — Vickie Crump, Jim Johnson, Rowena Jackson
Absent:
James Welburn 0
I. Minutes
Mr. Filer moved to accept the minutes from the December 15, 2003 meeting. Mr. Flack
seconded this motion. The minutes were approved as submitted.
II. TIF Financial Status
Mr. Clark explained the TIF fund status, and outlined dispersements to date and projected
funds. (attached). He noted that approximately $100,000 is available for award at this time.
III. TIF Zone Extension and Expansion
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Mr. Clark reported on a meeting with representatives from the Wichita Falls Independent
School District (WFISD) regarding the question of time extension and zone boundary
expansion. The meeting was attended by Dr. Dawson Orr, David Gossom, Ken Parker from
TAX INCREMENT FINANCING BOARD MAY 24, 2004 PAGE 1 OF 8
WFISD; and representatives from the City, Dave Clark and Kinley Hegglund, Asst. City
Attorney_ WFISD expressed support of a potential time extension related to changes in the
boundaries that might facilitate the maintenance of the current TIF income, but not to raise
much from that. The question came up of a "rolling TIF" that might accommodate this action
by changing boundaries to assist projects, and then move away to bring the new taxes in and
assist others. Mr. Clark also noted that he had heard from County Judge Gossom, that the
County might support time and boundary extensions. Mr. Clark noted that the responses were
preliminary and did not come from formal action of the taxing entities. It was further explained
that if a new TIF zone were created, there would be no "increment".
Mr. Sullivan suggested that an opinion be obtained from the Attorney General's office about
the legal status of extending the life of an existing TIF program. Mr. Clark further
acknowledged that if an update were needed to the Project Plan, that many changes have
occurred during the time of the current program and an update could be of value.
Mr. Filer made a motion to support the request for an Attorney General's opinion, which was
seconded by Mr. Flack. The motion passed unanimously.
Expansion
Mr. Clark reviewed potential projects that have inquired about expansion of the TIF boundaries
and how the program might benefit. Two areas for consideration are an expansion to include
blocks around Eastside Drive at Seventh Street and filling in the area between Indiana and
Travis from Seventh Street to 12t" Street (map attached). Mr. Flack acknowledged that two of
the pending applications were dependent on expansion of the district. The only expansion to
date has been three half -block areas that then encompassed the Travis Crossing project,
which has since received TIF benefits. The result has been the adaptive reuse of a long
vacant building into occupied market rate apartments.
In response to questions by Mr. White, Ms. Lou Murdock explained that the County has the
ability to adjust the tax rate to make up for other lost tax income. Dr. Orr expressed the need
for WFISD to see a projection of the tax dollars to be affected by award of projects in an
expanded area. This also relates to the question of an extension of the time for the program.
Mr. Clark distributed copies of a cumulative report on the use of TIF funds. Discussion
occurred about projects that have returned low tax properties to effective use and increased
valuation. Changes were also noted about MPEC and the First Baptist Church that removed
property from the tax roles. Mr. Filer acknowledged the longer -term benefits of such projects.
In response to questions, Mr. Clark explained two projects — SalaDeli and Richmond
Condominiums - that had received TIF benefits after which one sold and one burned. The tax
upgrade that came with the SalaDeli improvements are still in place. Contractual agreements
can be more extensive if they need to be.
Mr. Flack concluded that expansion of time and area are related and that the School Board
may need to consider the questions with financial projections. Mr. Berzina noted the
importance of the school participation and the effect a change in the school levy could have on
the program income.
TAX INCREMENT FINANCING BOARD MAY 24, 2004 PAGE 2 OF 8
Mr. Clark provided additional information on possible projects in an expansion area and noted
such sites as Austin Elementary School that could be enhanced by TIF assistance. Dr. Orr
suggested that an annual TIF income figure might be agreed upon. He noted that a ten year
extension of the TIF could redirect over a million dollars from the school system. Mayor
Altman suggested the need for a serious look at the "rolling TIF" option. He added that
changes should include agreement from all three taxing units. Dr. Orr questioned if some form
might be accomplished to assist a project and then move elsewhere to have the project
become taxable, but have funding for others needing assistance. With additional discussion,
Mrs. White verbalized group consensus that work sessions be scheduled and that decisions on
expansion should be postponed until the sessions were held.
IV. Funding Request — Marchman Inc.
Linda Ammons still wished to present her Marchman Hotel project. She provided photos of the
lobby improvements and explained the project which includes redevelopment for office space.
She stated their first application response was that an expansion might be considered if a
pending project were at hand. Now that a project is pending, there still seems to be a
reluctance to award TIF assistance. Mr. Humpert expressed optimism about the potential
positive effects of the Marchman improvement on surrounding properties. Mrs. White thanked
them for their presentation and discussion again took place about the desirability of a broader
consideration.
V. Funding Request — Chavez Contracting, Inc.
Tim Holmes presented the Chavez plan to build new offices with a value of approximately
$500,000 on three vacant lots at 1100 Indiana. The company needs to be in a HUB zone and
had other location choices.
VI. Funding Request — North Texas VISION of Wichita Falls
Vickie Crump expressed support for expanding the TIF district in consideration of the limited
incentives available. Vision is working with developers looking at additional housing, office,
service, and entertainment options in the downtown area. She further detailed projects of the
Vision organization during the last year including business recruitment. Rowena Jackson
supported progress claims, also mentioning businesses that closed. Jim Johnson assisted in
providing Vision's budget information and progress information. Mr. Filer and other board
members complimented Ms. Crump and Vision for keeping promises to the board. Mr. White,
seconded by Mr. Filer, made a motion to recommend funding to Vision in the amount of
$40,000 for the period from July 1, 2004 to June 30, 2005. The motion was approved
unanimously.
VII. Report on the Status of TIF Projects
Mr. White expressed concern that the applicants felt they were turned down, when the action
was to consider the broader plan for the TIF operation. Mr. Clark responded that the
applicants' time frame might not correspond with the decision to delay pending board work
sessions. Discussion about the history of the boundaries revealed that when the district was
established, several key businesses in the proposed expansion area were still operating. This
fact may account for their exclusion from the district.
TAX INCREMENT FINANCING BOARD MAY 24, 2004 PAGE 3 OF 8
Mr. Clark reported on the progress of the LaSalle Crossing/Studio Hotel and the Holt Hotel
renovation.
VIII. Adjournment
The board adjourned at 4.49 p.m.
DEBBIE WHITE, CHAIRMAN
DATE
TAX INCREMENT FINANCING BOARD MAY 24, 2004 PAGE 4 OF 8
5/3/04
Fiscal 04 30-Apr
Budget/Proiection FY2004
Revenues:
Taxes
City
54,000.00
School
120,000.00
County
32,000.00
Interest
5,000.00
2,164.45
Total
211,000.00
2,164.45
Expenditures:
Vision 100
30,000.00
16,666.65
Holt Hotel
469,176.12
-
LaSalle Crossing Apts
50,000.00
-
Coliseum Debt Service
105,000.00
26,424.54
Total
654,176.12
43,091.19
Revenues Less Expend:
(443,176.12)
(40,926.74)
Beginning Fund Balance:
543,417.00
543,417.16
Ending Fund Balance:
100,240.88
502,490.42
NOTES: Visions Group was awarded $40,000 beginning in July 03, thus the $30,000 budget for FY 04
$500,000 was budgeted for the Holt and $469,176.12 remained at the beginning of FY 04.
TAX INCREMENT FINANCING BOARD MAY 24, 2004 PAGE 5 OF 8
WICHITA FALLS
TAX INCREMENT FINANCING DISTRICT
DATE CREATED: March 16, 1986
DATE TO EXPIRE: December 31, 2008
TOTAL
PROJECT NAME
DATE
PROJECT
TIF
ACTUAL
(TIF PROJECT PARTICIPATION)
APPROVED
COST
ASSISTANCE
EXPENDITURES
Walgreen's
(Exterior Improvements)
5/ 6/91
$435,120
$15,000
$15,000
Wichita Falls Railroad Museum
(Exterior Improvements)
9/01/92
43,364
11,354
11,354
1005 Ninth St. (BSP Properties)
(Parking Lot Improvements)
1/12/95
205,000
5,000
5,000
MPEC
(Exterior Improvements)
1/12/95
25,000,000
300,000
300,000
Holiday Inn
(Exterior Improvements)
3/ 9/95
5,000,000
75,000
75,000
1600 Ninth Street (formerly SalaDeli)
(Exterior Improvements)
8/05/97
408,891
37,830
37,830
Wichita Falls Railroad Museum
(Exterior Gates)
6/15/99
n/a
12,710
12,710
1000 Tenth Street (formerly Richmond
Condominiums)
(Exterior Site Improvements)
6/15/99
1,100,000
20,848
10/19/99
5,625
TOTAL ..........
26,473
26,473
TAX INCREMENT FINANCING BOARD
MAY 24, 2004
PAGE 7 OF 8
TOTAL
PROJECT NAME
DATE
PROJECT
TIF
(TIF PROJECT PARTICIPATION)
APPROVED
COST
ASSISTANCE
Radisson Hotel
(Site Improvements)
5/02/00
8,400,000
125,000
125,000
Kemp -Kell Depot
(Site Improvements)
5/02/00
300,000
30,000
30,000
MPEC Coliseum
5/02/00
22,000,000
1250,000
1250,000
(Site Work, Bond Financing)
5/02/00
2 105,000
2 105,000
Visions
(Operational Funding)
1/02/01
79,500
50,000
50,000
(Operational Funding — 2nd Year)
6/18/03
40,000
23,000
(Operational Funding — 3rd Year)
7/15/03
40,000
Travis Residential
(Site Improvements)
3/20/01
340,000
34,000
34,000
*Marvin Groves
(Exterior Lighting)
3/20/01
80,000
4,485
-0-
Holt Hotel, Ohio Street
(Feasibility Study)
8/07/01
6,000
5,500
Holt Hotel, Ohio Street
2/03/02
6,858,000
500,000
330,824
(Project Development)
(Architectural Plans)
615 Eighth Street, Iron Horse Pub
7/15/03
14,000
7,000
7,000
(Exterior Improvements, Part of Overall)
Studio Hotel (LaSalle Crossing) Apts.
1/06/04
575,000
50,000
3-0-
530 7t" St. (Exterior Imp, Part of Overall)
TAX INCREMENT FINANCING BOARD
MAY 24, 2004
PAGE
8 OF 8
* Project Not Completed (TIF funds not spent)
One time payment
2 Annually
3 To Date
TAX INCREMENT FINANCING BOARD MAY 24, 2004 PAGE 9 OF 8