Res 027-2022 Amending Type B Budget for The Kate WF, LLC 03/01/2022 Resolution No. 27-2022
Resolution approving the programs and expenditures of the Wichita
Falls Type B Sales Tax Corporation Board of Directors and amending
the budget to include funding up to $1,017,192 to Will Kelty dba The
Kate WF LLC to assist in fire suppression system upgrades as part of
the proposed renovations at the existing building at 726 Scott Ave.
downtown
WHEREAS, Texas Local Gov't. Code § 501 .073(a) provides "The corporation's
authorizing unit will approve all programs and expenditures of a corporation and annually
review any financial statements of the corporation;" and,
WHEREAS, on January 4, 2022, the Wichita Falls Type B Sales Tax Corporation
approved the project listed below and as stated in its agenda.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1 . The Wichita Falls Type B Sales Tax Corporation's approval and funding of the
following programs and expenditures, in a total amount not to exceed $1,017,192 as
described below and in said corporation's agenda, is approved:
An amount up to $1,017,192 to Will Kelty dba The Kate WF LLC to
assist in fire suppression system upgrades as part of the proposed
renovations at the existing building at 726 Scott Ave. downtown.
2. The current fiscal year budget of the Type B Sales Tax Corporation is amended
to provide for the aforementioned expenditures and changes thereto.
PASSED AND APPROVED this the 1st day of March, 2022.
y,t,e/L
MAYOR
ATTEST:
zr
City Clerk
October 26, 2021
City of Wichita Falls
4B Sales Tax Corporation Board
Attn: Paul Menzies
Re: 4B Board Request for 726 Scott Ave, from the Petroleum Building Wichita Falls LLC
Dear Mr Menzies,
I am requesting to be heard at the November 4th, 4B Board Meeting to ask for assistance with
revitalization of 115 rooms which will be repositioned as student housing.The project is located
at 726 Scott Ave in the heart of downtown Wichita Falls.
I acquired the property the property in September of 2016. During the preceding decade, the
property had been vandalized and stripped of any valuables like copper. I was able to quickly
restore the utility infrastructure and utilities which enabled a number of retail businesses to open
on the ground floor including the Highlander, Wells Fargo ATM, and a new retail business,At
Ease Collective.
I had originally intended to do the project in 3 phases; 1)Ground floor retail, 2)Student Housing
on floors 2-5, and 3)Apartments on floors 6-10. Having completed phase one, I moved on to
secure funding on phase 2. First National Bank (FNB) issued a commitment letter in November
of 2017 to fund the project(along with the City Center Project). At that point, I requested that
the 4B consider funding the sprinkler portion of the project ($800,000). The sprinkler system
required by the city to convert Transitory (hotel) housing to Permanent(student) housing. The
4B approved the forgivable loan, provided that the project be completed within 12 months.
In January of 2018, FNB backed out of their commitment to fund the project--They used an
excuse of there having been a printing business at one point in the building, and a taxi stand at
Big Blue which could have contaminated the ground water. Informally they told me they could
not get their loan committee comfortable with lending in Wichita Falls.
I scrambled to salvage the project, but unfortunately was only able to secure funding for the City
Center Project, 30 loft style apartments at 728 Indiana. I have since completed that project, with
the help of a 4B forgivable loan of$250,000. The apartments are 100%occupied, and have
contributed to the revitalization of downtown. I should point out that I would not have moved
forward with this project without 4B support. This is a prime example of how public I private
partnerships can contribute to the rebirth of downtown.
I have continued to seek traditional bank funding for the project at 726 Scott, and have been
turned down by 44 different lenders. The primary reasons are that; 1) The income will not
support a loan,and 2) They don't feel comfortable lending in a `secondary' market.
Regardless, I would like to move forward with this project to bring the 115 units on floors 2-5
back online as student housing. Additionally, I would like to convert the upper 5 floors to 55
apartments.The total cost for this project is about$14,600,000 (see attached budget).
My ask of the 4B is threefold:
1. For the 4B to authorize $1,017,192 to cover the cost of the sprinkler system. ($767,452
for sprinklers+ $249,740 sprinkler audio visual alarms, pull switches etc) I've attached
quotes.
2. Provide 150 parking spaces (without cost for 15 years) in the parking garage at the
corner of 7th and Indiana. **
3. Freeze the Property taxes on 726 Scott at their current level for 15 years.
I have secured funding from a lender, but they have put in the caveat that I get an agreement
with the city/4B to address those 3 issues above.
I believe I can have these 115 units online within 12 months of the 4B's decision, and I'm
prepared to start immediately. The 55 units will take an additional 12 months, for a total of 24
months from project funding.
Thank you for your consideration and assistance in this matter.
William Kelty' •
The Petroleum Building Wichita Falls LLC
726 Scott Avenue
**150 Parking Spaces(corner of 7th and Indiana)
Option 1: The simplest way to do this is for the city to agree to allow residents of 726 Indiana to
park in the garage (up to a maximum of 150 cars). These do not have to be reserved spaces. I
just need to have the capability of offering this may spaces to the tenants(per the bank). There
would be no change to the garage itself,the city would just need to keep it open and available
for parking on a first come first serve basis. The 'free parking'would need to be available for 15
years(that allows the current lender to lend on the building,and also get out of the loan when I
refinance in 5 years).
Option 2: It may be more beneficial to the City if the city/4B were to give/deed the garage to
me with the caveat that I leave it open to the public,and honor the two(?) currently leased
spaces. If conveyed to me, I'd agree in writing to keep the garage open to the public.
Benefits to the city(financially turns a loss into a profit):
1) This gets the garage back on the tax roll
2) I am responsible for maintenance
3) I have to pay the utilities.
The benefit of me owning the garage, is that I could consider installing Solar for Big Blue at
some point in the future.
City Center Lofts at 728 Indiana,completed with the help of 4B
100%leased
L i
oor
•
hi PI
IR
411W
iaLi•
Ilk h" 11 1 1
111110
11 141
111111.10d
11111.11111111
11111111(
•11111110111
11 mar 1„„,
noer all
Proposed Renderings of 726 Scott Ave
._` s
w
I^EI
Ulu � y� '7 f 1�� t I;$ i rr _ �X . AI IIy u
r
4u.y ,.i...
I
T
'u / of
2a — ' ri, 4
i ti_
4.
1
.....
„..... . . .
, ,
A
1313, Cost ToW
Common Arens
Fad 1 0100,000.00 1100,000 00
Gym Epulp 1 $100000.00 $100,000.00
C[m1r10.0+4i4e AmeFl,1le9 2 S100,000.00 6200000 00
E!nralws 4 $25.000.00 61,000,007 0,0
Faced Dux 2 110,000.00 $20,000.00
Perm 0eloo or 1 S100,000.00 1100,000 Or.7
Sprlosl r System 1 11..017,192.00 11017.19200
Resurface Pahang Area 1 5100A00.00 5100,000.00
Re8mre is nd y Rdnm 1 5100,000.00 1100,000.00
A5I Nou crsa arwaranon C. 2A 52,500.00 550,00000
Repturnb Gara94 1 5100,000.0 0100,000 57
A_gnling Canoga 1 0100,000.00 $100,000 00
Exonwrr oghlin3 1 620.000.00 520.000�xl
F.Par000g Am+ 1 125,000.00 $25,000.0]
lien Roar 1 1100,000.00 0100,000.00
0.,Ln• 1 5250,000,00 $250,000.00
�.. 15 $40,000.00 0720000.60
S4.102.192.0
r lcvnx t-5
.• ,. 110 1500.00 555,000,00
...,., .,. 110 5100,SO 511,000 00
{I....•..:. 110 5100.00 $11,000.00
•-• 110 5100.00 S11,000.00
..,.• 110 51,500.00 0165,000.00
16 62.5.000.00 1400,000.00
...,. 1 3150,000.00 $150,000.00
• 4 525,000.00 1100000
..._, 40000 $3.50 $140E00.00
1 1100.000.00 5100,070 00
11,,.. oo 110 $100.00 116,5W ao
Jxr*sues 1 610.000,00 510,000 00
Fudtaa 1110 $1.500.06 0155,000.00
Monson%in Lams 110 55.000.00 1550,000,02
$1,884,500.00
T4481 18,954,602.00
Flours 8.16
De,r4M,88 1 1250,000.00 1250000 00
Fraen..1 55 $8A00.00 1330000 00
p.nctr,eel 1 1600,000.00 5900,000 00
P5pin5In0 1 3500.000.00 5500,000 00
HVAC 1 0500A00.00 5500,000.73
S0880rock and Insulation 55 $10.000.00 1550,000 00
Max Neater& 55 $1,000.00 355,000.001
1.011. 55 5400.00 522,000 09
Kacnene 55 $1,2000.00 1650,000 00
Flooring 50000 64.00 1200,000 00
641h808005 55 58,000.00 1440,000.02
Doors. 330 51.000.00 55.30,000 C0
DO&nerrgng and finest)el 330 $1,000.00 1330000.00
Waster Dryer 55 51A00.00 055,000.00
AgpSsnCae 55 51.500.00 S52,500-00
Counter Tops 55 51.500.00 582,500.00
$5,.187,000AO
Sap Coal
Ardielectural Orawllrgs 1 $100,000.00 $1000120 00
MEP Draa50ge 1 550.000,00 650000 0.]
lintxsa!A;rylirbtnn 1 $26.000.00 526.000 CLrI
5urvny 1 6100000.00 510,000.00
Legal Fe+as 1 $120.000.00 6120,000.00
P055e 1 1 $10,000.00 110,000.00
51u4x 1 50.000.00 56,000 CO
Fo•.Br,cr Gnarge5 1 $60,000.00 66000020
5402 000 00
Sun Taal 111,575,092 00
With Over Rum 10%112,733,281.20
6re011484 155E 61,400,059',d
Tam 6u49a1. $14,643,250.36
TRANSPECOS BANKS
Texas Banking at its Best.
October 26,2021
Dear Will,
TransPecos Banks("Bank")is pleased to provide the following term sheet. The actual terms and
conditions upon which Bank might extend credit to you are subject to satisfactory evaluation of a
Phase 2 study, and other terms and conditions as are determined by Bank.
BORROWER: The Kate Wichita Falls(`Borrower")
GUARANTOR: Will Kelty
LOAN PURPOSE: To finance the construction and rehabilitation of The Kate located at 726 Scott
Street in Wichita Falls,Texas
LOAN AMOUNT: $8,000,000
LOAN TYPE: Construction to mini perm
FEE: 1%on loan amount
PRICING: WSJP plus 175bps,with a 5.00%floor,floating variable quarterly
REPAYMENT
TERM: Interest only monthly for first 12 months followed by principal plus interest
payments based on a 20-year amortization
TERMS: 7 years
SECURITY: First lien Deed of Trust on 726 Scott Street,Wichita Falls,Texas
Assignment of Leases and Rents
Initial 1
112 E Pecan,Ste 800*San Antonio,TX 78205*Telephone:210-228-9960*Fax:210-270-0317
www.transpecosbanks.com
TRANSPECOS BANKS
Texas Banking at its Best.
ADVANCE RATES: Lesser of 80%of cost or As Completed Value of property
REPORTING: The Borrower and Guarantors will deliver the following financial reporting:
a) Annual Borrower Tax Return within 15 days after filing.
b) Annual Financial Statements due within 120 days of each year end.
c) Quarterly Borrower Prepared Financial Statements with a 45-day grace
period after each quarter-end.
d) Quarterly Certificate of No Default due within 45 days of each quarter-
end.
e) Monthly Rent Roll due with a 30-day grace period after each month-end;
f) Annual Personal Financial Statement on Guarantor;
g) Annual Personal Tax Return on Guarantor due within 15 days of filing
FINANCIAL
COVENANTS: Financial covenants to be tested quarterly
Minimum Debt Service Coverage Ratio (""DSCR") defined as Net Operating
Income/Debt Service of 1.25x. Covenant testing will begin after construction
period beginning two quarters after completion
Operating Account to be held at bank
OTHER: a) Applicable insurance covering property.
b) Third party construction monitoring group to review draw requests.
c) A satisfactory Phase 2 Environmental Site Assessment.
d) The acquisition of adequate parking deemed to be 150 additional spaces.
e) Agreement with County for property tax freeze for duration 15 years.
f) Agreement with City to install sprinkler system.
AFFIRMATIVE Customary for Borrower in Credit Facilities of this type
COVENANTS:
NEGATIVE Customary for Borrower in Credit Facilities of this Type
COVENANTS:
Initial 2
112 E Pecan,Ste 800*San Antonio,TX 78205*Telephone:210-228-9960*Fax:210-270-0317
www.transpecosbanks.com
�-k
TRANSPECOS BANKS
Texas Banking at its Best.
EVENTS OF
DEFAULT: Customary for the Borrower in Credit Facilities of this type.
ACCEPTANCE: Please sign below then scan and then return it to Cinco Light via email at
cinco.light@transpecosbanks.com
Sincerely,
LiVtt-
Cinco Light
Chief Lending Officer
ACCEPTED:
PROPOSED APPLICANT(S)on behalf of The Kate Wichita Falls
By: Date:
Will Kelty
Initial 3
112 E Pecan,Ste 800 a San Antonio,TX 78205 a Telephone:210-228-9960*Fax:210-270-0317
uww.transpecoshanks.corn
AMERICAN 10575 Vista Park Road,Dallas,TX 75238
ft0845
FIRE PROTECTION Phone 214-349-2281 I8afpgus .com
Fax 214-349-2281 l afpgusa.com
`.,® GROUP, INC. License SCR-G-1734091 I ACR-1789337 I ECR-1733854
October 10,2020
Mr.Will Kelty
Phone:323-252-8699
Re: Petroleum Building Apartments
726 Scott Ave,
Wichita Falls,Texas
Dear Will,
Per your Invitation to Bid,we are pleased to offer our proposal to furnish the labor and material required to
install Automatic Fire Sprinkler protection throughout the above referenced project in accordance with the
Plans.
Specifically included in this inside proposal are the following:
2 Start the installation at an existing 6"flanged or grooved outlet one(1)foot above the finished floor
in the Fire Riser Room,and install a Backflow Preventer.
2 Install a 1,000 GPM at 90 PSI,Horizontal Split-Case 3-Phase 480 V Fire Pump,with Across-The-Line
Start Controller and Automatic Transfer Switch,located in the Fire Pump Room.
2 Install an Automatic Wet standpipe for the building,designed in accordance with NFPA 14
requirements.We will connect the standpipe to the existing two FDC's located on the building.
Furnish and install a wet pipe automatic fire sprinkler system on each floor of the apartment
building,designed and installed in accordance with the requirements of NFPA 13.
Design,Installation,City Permit Fees,and applicable taxes.Design will be done by NICET certified
design technicians and will be reviewed and stamped by our licensed RME.
All materials are UL listed and/or FM approved for use in fire protection systems.
2 Pipe to be black carbon steel,foreign or domestic(at seller's option depending upon availability)
schedule 10,30 or 40 A795,A135 or A53,for the Standpipe and Wet Pipe Systems.CPVC Pipe and
Fittings may also be an option as a VE Item.
2. Fittings to be a combination 300#steel shop welded outlets,roll grooved pipe ends with 300#
ductile iron grooved mechanical joint couplings or threaded 125#cast or ductile iron(seller's option
depending upon design).
d Hangers and supports to be located,designed,and installed per NFPA 13.
S. Spare sprinklers,storage box and installation wrenches are furnished and installed.
2 All signage per NFPA 13 requirements.
All systems to be certified&hydraulically tested and flushed in accordance with NFPA 13.
2 All piping to be concealed above finished ceilings.
2 All sprinkler heads installed in finished ceilings will be White or Chrome Recessed type with white or
chrome escutcheons.Sidewall sprinklers shall be similar.
e All sprinklers installed in areas without ceilings will be brass upright.
American Fire Protection Group,Inc.•Strong Values,Exceptional Results
AMERICAN 10575 Vista Park Road,Dallas,TX 75238
ft0845
FIRE PROTECTION Phone 214-349-2281 I 8afpgus .com
Fax 214-349-2281 l afpgusa.com
`,/® GROUP, INC. License SCR-G-1734091 I ACR-1789337 I ECR-1733854
Specifically excluded from this proposal are the following:
t Electrical wiring of any kind.
Building heat,maintained at a minimum of 40 degrees,heat trace&insulation and heated chases,to
prevent the wet pipe sprinkler system from freezing.
Cutting and Patching of the existing Ceilings and walls on all floors,to install the systems pipes and
sprinklers.
Cleaning,priming or painting of fire sprinkler pipe,fittings hangers or devices.
t Fire extinguishers or FE cabinets.
t Underground Supply or City Connection Fees.
t. Remote FDC Connections.
Z Demolition of any kind.
Our proposal is based upon the City's Water supplies being able to furnish a minimum of 60 PSI,flowing
1,100 GPM.
Our pricing for this installation at the above referenced project shall be Seven Hundred Sixty Seven
Thousand Four Hundred And Fifty Two Dollars$767,452.00
Please do not hesitate to call if you need additional information or have any questions.
Sincerely,
American Fire Protection Group Inc.-Dallas
9YlichaefWurdoch
Michael Murdoch
Contract Sales
American Fire Protection Group,Inc.•Strong Values,Exceptional Results
ratAMERICAN 10575 Vista Park Road,Dallas,TX 75238
FIRE PROTECTION Phone 214-349-2221 1800-566-0845
Fax 214-349-2281 l afpgusa.com
` s v GROUP, INC. License SCR-G-1734091 I ACR-1789337 I ECR-1733854
October 10,2020
Mr.Will Kelty
726 Scott Ave,Wichita Falls
Re: Petroleum Building
Fire alarm/Voice notification proposal
We are pleased to submit our proposal for the replacement of the fire alarm system at the above referenced
facility.
Our proposal includes equipment, material and labor required for a complete installation based upon old
scanned drawings provided.
We will provide low frequency audio through speakers in living units
Our scope of work is to furnish and install the following:
• Furnish and install 1 Gamewell FCI E-3 main addressable fire control panel.
• Furnish and install 1 Gamewell FCI Voice Evacuation System.
• Furnish and install 1 Gamewell FCI DACT.
• Furnish and install 1 Gamewell FCI remote system annunciator.
• Furnish and install all necessary voice system transponders and amplifiers.
• Furnish and install all required 24-volt remote strobe power supplies.
• Furnish and install 140 speaker strobes.
• Furnish and install 120 strobes.
• Furnish and install 40 speakers.
• Furnish and install 180 Gamewell FCI addressable system smoke detectors.
• Furnish and install 6 Gamewell FCI addressable heat detectors.
• Furnish and install 12 DNR Duct Smoke Detectors.
• Furnish and install 1 Gamewell FCI addressable manual pull stations.
• Furnish and install 4 Gamewell FCI addressable relay modules for elevator interface.
• Furnish and install 12 Gamewell FCI addressable relay modules for AHU Shutdown
• Furnish and install 3 Gamewell FCI addressable strobe control output modules.
• Furnish and install 20 Gamewell FCI monitor modules for fire pump and sprinkler switches.
• Connect all required sprinkler switches to fire alarm system.
• Furnish necessary 120-volt power as required for our panels.
• *Based upon building having available dedicated circuits.
• Furnish and install back boxes,and wire for the completion of our scope of work.
• Perform all testing and customer training.
**Pricing based on utilizing plenum rated cabling not requiring conduit or raceway**
**Customer to provide complete concept drawings for a complete layout,and fire alarm design**
**Additional labor/materials to be priced if required**
American Fire Protection Group,Inc.•Strong Values,Exceptional Results
ratAMERICAN 10575 Vista Park Road,Dallas,TX 75238
FIRE PROTECTION Phone 214-349-2221 1800-566-0845
Fax 214-349-2281 I afpgusa.com
' vs GROUP, INC. License SCR-G-1734091 I ACR-1789337 I ECR-1733854
Page 2
Our proposal does not include:
-Any work associated with the elevators, HVAC,or any other building systems other than the
installation of modules as described herein.*(We will coordinate with contractors for the
interface and function test of the associated functions.)
-Demo of existing system prior to completion and final of new fire/voice system
-Coring/X-Ray-floor/wall scanning
-Patching,painting,hatches,ceiling tiles,throughout or cutting of holes into structure
-Abatement of any kind,form,or fashion.
-Moving of furniture-protection of furniture,and personal items,tenant/homeowner vacancy
provision
-Fire Watch-for any reason
-Fire sprinkler/pumps,switches, leaks,fire sprinkler upgrades,or replacement regardless of
nature
-Existing fire alarm panel condition,repair,troubleshooting or functionality
-Our proposal is based upon working during regular business hours and having access to
individual condominiums as required for the completion of our scope of work.
-Telephone lines for monitoring. (2 dedicated lines required)*Should be existing.
-Fire Phones
- After hours/premium/overtime work
-Off-site monitoring.
American Fire Protection Group,Inc.•Strong Values,Exceptional Results
ratAMERICAN 10575 Vista Park Road,Dallas,TX 75238
FIRE PROTECTION Phone 214-349-2221 1800-566-0845
Fax 214-349-2281 I afpgusa.com
' vs GROUP, INC. License SCR-G-1734091 I ACR-1789337 I ECR-1733854
Page 3
Petroleum Building
We will install the Automatic Fire Alarm Emergency Voice/Alarm Communication System work as
described herein for a cost of:
Two Hundred Forty-Nine Thousand Seven Hundred Forty Dollars
$249,740.00
"This price includes sales tax on material.
If the job requires additional expenses we will not exceed the above estimate without(1)notifying you of the
progress made and what remains to complete the work,and(2)your prior consent.All material is guaranteed to
be as specified. All work to be completed in a workmanlike manner according to standard practices. Any
alterations or deviations from above specifications involving extra costs will be executed only upon written
orders,and will become an extra charge over and above the estimate. All agreements contingent upon strikes,
accidents or delays beyond our control. Owner to carry fire,tornado and other necessary insurance. Our
workers are fully covered by Workmen's compensation insurance.A list of exclusions follows;painting&
patching;overtime or after-hours work;a/c power or electrical interfaces;any required shutdown or interface
connections;non-productive or customer initiated hold-ups;repairs or replacement parts caused by other
trades,actions beyond our control or component failure on existing systems.Customer to provide and maintain
phone lines for all communicators.This proposal may be withdrawn by us if not accepted within Forty-Five(45)
days.
Sincerely,
Mike Shea
Acceptance of Proposal-The above prices,specifications and conditions are satisfactory and are hereby
accepted. You are authorized to do the work as specified. Payment will be made as outlined above.
Signature: Date of Acceptance:
American Fire Protection Group,Inc.•Strong Values,Exceptional Results