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TIF #4 Board of Directors Minutes - 10/30/2018Tax Increment Financing #4 Board MINUTES October 30, 2018 Members: John Dickinson *Vice -Chairperson Ben `Chip' Filer *Chairperson Cynthia Laney *Member Jeff Marion *Member Michael Smith *Member Jeff Watts, Wichita County Commissioner *Member Co. DeAndra Chenault, District #2 *Council Liaison Staff: Kinley Hegglund, City Attorney *Staff James McKechnie, Senior Asst. City Attorney • Dana Schoening, Director Community Development • Karen Montgomery -Gagne, Planning Administrator • Pat Hoffman, Property Management Administrator • Guests: Jana Schmader, Executive Director, DWFD, Inc. • Absent: Tony Fidelie *Member I. Call to Order & Introductions Chairperson Filer opened the TIF #4 Board meeting at 3:33 pm. Mr. Filer introduced members and staff. Guest Jana Schmader with DWFD, Inc. was also present at the meeting. II. Financial Updates Chairperson Filer asked Ms. Gagne to provide financial updates to the Board. Ms. Gagne stated TIF #4 experiences positive activity since the zone was created in 2015 having accumulated just under $167,000.00 of increment built from city and county contributions. Ms. Gagne stated the increment has exceeded initial expectations; it more than doubled from 2017 and it's on target to reach $122,000.00 for next year's allocation (spring 2019) bringing the increment fund amount to just under $2901000.00. III. Agenda Items A. TIF #4 Projects & Funding Priorities Ms. Gagne stated there are five main responsibilities of a TIF board. Ms. Gagne listed these briefly and how the board would need to ensure these were put in place. • Execute financial plan • Make recommendations to the governing body (City Council) • Exercise the power of managing and operating the zone • Opportunity to restrict use/uses of property • Enter into contract for managing TIF zone (managed by Board) TIF #4 Board October 30, 2018 PAGE 1 of 4 Ms. Gagne spoke of real property assembly cost and that part of the assembly cost could have increment money placed towards it. Acquiring real property that has deteriorated with the intent of restoring to improve property can have increment money used towards the acquisition. A board member asked if the TIF board could use increment money toward purchase of real property. Ms. Gagne stated increment could go towards acquisition of the real property once they have followed the correct tax code. Chairperson Filer stated that he didn't believe the board had actually purchased property in the past but assisted with associated costs. Commissioner Watts inquired if 2014 was the established base year. Staff confirmed 2014 as the base year. Ms. Gagne stated in the past with TIF #1 generally private projects would have to provide 90% financing and the board would potentially consider funding requests for the remaining 10%. General discussion among board members about how increment money is distributed and returned and why they don't generally provide funds up front but rather distribute after other funding sources are secured even for the most solid projects. B. Project Goals & Objectives Ms. Gagne stated the goal of TIF #4 is improving downtown to make it a key destination. Other examples of areas the board could invest the increment funds to achieve their goals include reinvestment in infrastructure or redevelopment opportunities thus creating additional economic investment opportunities so downtown becomes the true heart of Wichita Falls. Staff highlighted the -I-IF #4 zone boundaries and six neighborhood districts. A board member asked how it compared to TIF #1. Ms. Gagne stated it is much larger as TIF #1 was more condensed. Ms. Gagne noted the reinvestment zone objectives as well as the sub -elements to be addressed throughout the zone which are: economic revitalization, preservation, downtown image, pedestrian -bicycle friendly, coordinate the museum experience, elimination of commercial design/infrastructure and tourism. Staff advised the board of fifteen goals and objectives that were universal to the district. A key item being considered was formation of a Business Improvement District (BID) to help implement improvements and fund additional maintenance with the downtown area. A board member requested clarification on a BID. Ms. Gagne stated it was a defined area that property owners vote to establish and set a self -taxing percentage that pays for additional services and amenities for such items as additional trash pick-up, security, lighting, maintenance, etc. Discussion ensued among board members about starting this soon, the length of time it would take to define a BID area/ borders, the structure of the BID and what controls and responsibilities it will have as well as talking with property owners. Ms. Gagne noted briefly the 15 goals and objectives. • Business Improvement District (BID) • Creating a "destination shopping" environment • City's Wayfinding signage plan • Full -service convention center • Streetscape design • Landscape flexibility • Pedestrian accessible sidewalks • Development of high -density residential dwellings • Parking facilities Infill development • Reuse of existing buildings • Private parking facilities • Market trustee properties for redevelopment • Redevelopment of key transportation corridors/gateways • Redevelopment & alignment of right-of-way or easements TIF #4 Board October 30, 2018 PAGE 2 of 4 Staff wanted to bring to the board's attention the more critical areas for potential use of increment funds related to the Downtown Strategic Plan. The Plan's focal area included Phase 1 which covered the core of downtown from 711 to 101h Street and from LaSalle Alley to Scott Street. Objective is street improvements with a pedestrian focus to create a better downtown. The higher priority areas are 81h Street, Indiana and a portion of Ohio. The medium priorities being sections of 71n, 91h, 10th Streets and the lower priority was Scott Street. There are some limitations because Scott Street is a state on -system roadway and there are restrictions on how much widening or narrowing can be done. IVIs. Gagne provided the board with objectives in specific sectors; Northeast Commercial/Industrial District • Capitalize on future Transit Oriented Development (TOD) opportunities for redevelopment • Improve Bridge Street underpass • Improvements on truss bridge and all property fronting MLK Jr. Blvd. • Adaptive reuse of the older brick structures and potential new uses Depot Square Historic & Antique District • Preserve and appropriate reuse of historical structures • Consider potential and options for enhancing the Farmer's Market • Consider potential intersection and infrastructure /utility upgrades to existing original underground water/sewer lines • Promote the quality of buildings in the district • Consider potential for a public art project Central Office/Entertainment District • Enhance and preserve the Central Business District (CBD) • Promote the quality of buildings in the district • Promote infill on vacant lots and solicit occupancy of vacant buildings • Market opportunities to develop pedestrian character while offering bicycle friendly enhancements • Consider redevelopment of Central Park (811 Street/Scott Street) Southeast Commercial/Industrial District • Assist in the preservation and appropriate adaptive reuse of historical structures C. Project Eligibility and Public Improvements Ms. Gagne stated the Texas Tax Code, Chapter 311 outlines the related items that may be utilized for public infrastructure projects. She stated the increment level growth is estimated to be modest; therefore projects will be limited unless other funding sources are leveraged. Ms. Gagne advised there will be a standard policy across the board when a project proposal is submitted for consideration to ensure a balance in funding to meet the overall needs of downtown. The TIF #4 Increment Allocation Policy is broken down into two areas, the first being public projects and the second being consideration for private or public/private partnerships. During the active period of the TIF #4 zone 60% of all increment generated is supposed to be allocated for eligible public project costs. The second area of priority is private projects where 40% of increment generated should be used for eligible private project costs. Ms. Gagne provided the board with the list of potential projects for eligibility as well as discussion on funding method for consideration such as municipal general revenue bonds and pay-as-you-go. I -IF #4 Board October 30, 2018 PAGE 3 of 4 D. Project Cost Ms. Gagne advised the board that there are no anticipated administrative costs to be charged to the TIF #4 programs that any minor administrative cost will be covered by the City of Wichita Falls. Staff provided a handout of other estimated project costs to the board and briefly discussed questions on the wayfinding master plan, the convention center hotel, infrastructure improvements, Ohio Street truss bridge and Central Park (811/Scott Street) redevelopment plan costs. Ms. Gagne stated Fagade Enhancement Grants would provide TIF assistance in combination with 4B funds to consider funding assistance up to 50% of the project cost not exceed $5, 000. The City of Wichita Falls and Wichita County will provide 100% of the generated and collected increment to the TIF #4 program. Also, Ms. Gagne advised the zone will terminate on December 31, 2035, unless otherwise amended through the legal processes by the City of Wichita Falls and the State of Texas. E. Economic Feasibility Ms. Gagne stated projected tax increments do not cover all of the projected public improvement/ infrastructure costs noted in the TIF #4 Plan and the Downtown Strategic Plan. Leveraging other funding sources that may or may not have to be paid back from any future generated increment could be a possibility. Consequently, if sufficient TIF funds become available to cover board authorized expenses, the Reinvestment Zone could be terminated before the end of the 20 year period. F. Financing Mechanism Ms. Gagne advised the board that funding for public improvements will need to come from multiple sources stating supplemental funding sources include, but may not be limited to the following; • 4A & 4B Sales Tax Funds • TIF Fund Rebates • Capital Bond Financing • General City Funds • Developer Participation There was much discussion among the board about financing and how citizens would apply for project assistance. Much more discussion about possible projects and what would be the highest priority will need to occur at a future board meeting. IV. Other Business A. 2018 Roster — members provided updates to staff. B. Next Meeting Date Chairman Filer talked with Karen about the date of the next meeting. Ms. Gagne stated she would take care of contacting all parties that needed to attend regarding a date to be determined and emailing a copy of the former TIF #1 Zone projects funded spreadsheet. -71 .�.. -'9 Mr: Ben Filer Date Chairperson TIF #4 Board October 30, 2018 PAGE 4 of 4