Res 028-2022 Tax Abatement The Kate WF, LLC 03/01/2022 Resolution No. 28-2022
Resolution authorizing the Mayor to execute a Tax Abatement
Agreement with The Kate WF LLC, previously known as
Petroleum Building Wichita Falls LLC, related to their project
where they will spend approximately $14.6 million to remodel
floors 2-10 into 170 multi-family apartments on the property
known as 726 Scott Avenue and owned by The Kate WF LLC,
which is in the Downtown Petroleum Building Reinvestment
Zone.
The City Council finds that the City has complied with the prerequisites for tax
abatement, as provided in Chapter 312 of the Texas Tax Code and the City's Guidelines
and Criteria for Tax Abatement, as adopted on January 18, 2022.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1. The Mayor is hereby authorized to execute a Tax Abatement Agreement for
a period of ten (10) years with The Kate WF LLC, for the property at 726 Scott Avenue,
Downtown, with such changes to form as are approved by the City Attorney.
2. City Staff shall provide copies of the proposed tax abatement agreement to
the other taxing entities in accordance with Texas Tax Code § 312.2041.
PASSED AND APPROVED this the 1st day of March, 2022.
r#1.-
MAYOR
ATTEST:
ij
I �( tv
City Clerk
STATE OF TEXAS §
COUNTY OF WICHITA §
TAX ABATEMENT AGREEMENT
BETWEEN THE CITY OF WICHITA FALLS
AND THE KATE WF LLC
This Tax Abatement Agreement (this "Agreement") is entered into by and between the
City of Wichita Falls,Texas(the"City"),duly acting herein by and through its Mayor,and The Kate
WF LLC, previously known as Petroleum Building Wichita Falls, LLC, a Texas corporation
("Owner").
Recitals
WHEREAS, on January 18,2022,the City Council of the City(the"City Council")adopted
Resolution No. 04-2022 (the "Enabling Resolution"), establishing certain guidelines and criteria
for the designation of reinvestment zones and the entering into tax abatement agreements
pursuant to the Texas Property Redevelopment and Tax Abatement Act, as contained in Chapter
312 of the Local Taxation Title of the Tax Code of the State of Texas (the"Code"); and
WHEREAS, the Enabling Resolution constitutes appropriate guidelines and criteria
governing tax abatement agreements to be entered into by the City as contemplated by the Code;
and
WHEREAS, the Enabling Resolution included a statement by the City that it elects to be
eligible to participate in tax abatement; and
WHEREAS, on January 18, 2022, the City Council passed Ordinance No. 02-2022 (the
"Ordinance"), creating and designating the Downtown Petroleum Building Reinvestment Zone
(the "Zone") in the City for residential and commercial-industrial tax abatement as authorized by
the Code, and the designation of the Zone remains in full force and effect; and
WHEREAS, it is in the best interest of the City and its taxpayers, in order to maintain and
enhance the residential, commercial, and industrial economic and employment base of the City,
to enter into this Agreement in accordance with the Enabling Resolution,the Ordinance, and the
Code; and
WHEREAS, the City Council finds that the contemplated use of the Premises (as
hereinafter defined), the contemplated improvements to the Premises in the description and
amount as set forth in this Agreement and the other terms hereof,are consistent with encouraging
the development of the Zone in accordance with the purposes for its creation and are in
compliance with the Enabling Resolution,the Ordinance, and all applicable law; and
Page 1 of 17
Tax Abatement Agreement
WHEREAS,a copy of this Agreement has been furnished in the manner prescribed by the
Code to the presiding officers of the governing bodies of each of the taxing units in which the
Premises to be subject to this Agreement are located.
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS:
That the City,for good and valuable consideration,the adequacy and receipt of which are
hereby acknowledged, which consideration includes the retention and/or expansion of primary
employment and the attraction of significant investment in the Zone, which contributes to the
economic development of the City and the enhancement of the tax base in the City, and the
Owner, for good and valuable consideration, the adequacy and receipt of which are hereby
acknowledged, which consideration includes the tax abatement set forth herein as authorized by
the Code, as amended, do hereby contract, covenant and agree as follows:
1. General Provisions
1.1: The Kate WF LLC, is the owner of the land and buildings described on Exhibit A,
attached hereto and made a part hereof for all purposes (the"Premises").
1.2: The Premises are located entirely within the city limits of the City and within the
Zone.
1.3: The Premises are not in an improvement project financed by tax increment bonds.
1.4: This Agreement is entered into subject to the rights of the holders of outstanding
bonds of the City.
1.5: The Premises are not owned or leased by any member of the City Council or by a
member of any zoning or planning board or commission of the City or by any member of the
governing body of any taxing unit joining in or adopting this Agreement.
2. Development
2.1: The owner will invest approximately $14.6 million to renovate and upgrade the
existing infrastructure and convert the former hotel spaces into approximately 150 to 170 multi-
unit housing complex on the Premises identified in Exhibit A, located within the Downtown
Petroleum Building Reinvestment Zone.
A more detailed description of the improvements, including the kind and number of the
proposed personal property additions, all of which will be located on the Premises, is set forth in
the attached Exhibit B, to which reference is here made for all purposes. Owner shall have the
right to make alterations and/or substitutions to the project; and the equipment included therein,
so long as the project's cost, scope, and projected economic impact of are not substantially
reduced.
Page 2 of 17
Tax Abatement Agreement
3. Rate and Duration of Tax Abatement
3.1: (a) The period of tax abatement for the improvements pursuant to this
Agreement shall commence on January 1, 2023 and shall continue for a period of 10 years
thereafter.
(b) Subject to the terms and conditions set forth in this Agreement, the
personal property and other improvements located on the Premises shall be exempt from taxation
by the City in accordance with this Section 3.1, provided, however, in accordance with Section
312.204(a) of the Code, the tax abatement set forth herein is subject to the following: (i) with
respect to real property, the abatement shall only be applicable to the extent the value of the real
property, including the improvements described herein, exceeds its value for the year in which
this Agreement is executed; and (ii)with respect to personal property located on the real property
covered by this Agreement,the abatement shall be applicable to all personal property located on
such real property constituting a part of the improvements described herein other than personal
property located on the real property prior to the commencement of the improvements described
herein.
(c) The increased value of the improvements over the base year of 2022,
which will be exempt from ad valorem taxes during each year of the applicable tax abatement
period pursuant to this Agreement, is as follows:
Year Percentage
1 100%
2 90%
3 80%
4 70%
5 60%
6 50%
7 40%
8 30%
9 20%
10 10%
3.2: Notwithstanding anything in this Agreement which might be deemed to be to the
contrary, the Owner of the personal property shall have the right to protest and contest any
appraisal or assessment of the Premises, or any improvements, and the tax abatement provided
for herein for such improvements shall be applied to the amount of taxes finally determined, as a
result of such protest or contest, to be due for such property.
4. Records and Cost
4.1: The kind, number, and location of all proposed improvements are described in
Section 2.1. Prior to April 1, 2023, Owner shall furnish to the City a certificate signed by a duly
authorized representative of the Owner setting forth a general description and cost of the
Page 3 of 17
Tax Abatement Agreement
improvements added to the Premises since the date of the commencement of the improvements.
The Owner shall at all times reasonably cooperate with representatives of the City so as to enable
such representatives to verify the addition of improvements to the Premises and the cost thereof.
4.2: At all times during the term of this Agreement,the City and/or the Wichita Appraisal
District (the "Appraisal District") shall have access to the Premises by City or Appraisal District
employees or other representatives for the purpose of inspecting the Premises to verify the
addition of equipment and improvements as contemplated by this Agreement; provided, however,
that the City or the Appraisal District, as applicable, shall notify the Owner at least two (2) days in
advance of any such inspection and such inspections shall not interfere with the business
operations and/or safety policies of the Owner with respect to the Premises.
4.3: The Premises and the tangible personal property additions and improvements
thereto shall at all times during the term of this Agreement be used as an apartment complex,
subject to interruption due to casualty, repair, or renovation.
4.4: No later than February 28, 2023, Owner shall provide the City and the Appraisal
District with an interim report setting forth the status of the improvements, including the
description,the historical cost of the improvements added to the Premises as of January 1,2023,
for which Owner is claiming tax abatement pursuant to this Agreement. By April 1, 2023, Owner
shall provide the City with a final report setting forth the final description and historical cost of the
tangible personal property and other improvements added to the Premises for which Owner is
claiming tax abatement pursuant to this Agreement.
4.5: Throughout the term of this Agreement, Owner shall furnish the City and the
Appraisal District with such additional records and information as the City and/or the Appraisal
District may reasonably request to support Owner's tax abatement. This information shall include
but is not necessarily limited to, information regarding improvements for which Owner has
received tax abatement and which has been replaced or removed from the Premises. At a
minimum, this information shall include a property description, an asset number (if applicable),
and the date such property was removed or replaced.
4.6: The City and/or the Appraisal District shall have the right to review and audit at its
expense the books and records of the Owner relating to the Premises and the improvements
thereon. The City and/or the Appraisal District shall notify the Owner in advance in writing of its
intent to review and/or audit such records in order to allow the Owner adequate time to make such
books and records available on the Premises.
4.7: On or before April 15 each year, Owner shall certify to the governing body of the
City that the Owner is in compliance with each applicable term of this Agreement.
4.8: In accordance with the requirements of Section 11.43 of the Texas Property
Tax Code, in order to qualify for tax abatement pursuant to this Agreement, the Owner
must apply for the applicable exemption prior to May 1 each year. The applicable
exemption application form must be filed with the Chief Appraiser for the Appraisal
District.
4.9: In the event that: (a)the improvements for which an abatement has been granted
herein are not completed in accordance with this Agreement and the WF4BSTC Performance
Agreement; or(b) Owner allows its ad valorem taxes owed to the City to become delinquent and
fails to timely and properly follow the legal procedures for protest and/or contest of such ad
valorem taxes; or (c) Owner breaches any of the terms or conditions of this Agreement; or (d)
Owner defaults in Owner's obligations pursuant to any agreements that the Owner has entered
with the City of Wichita Falls or the Wichita Falls 4B Sales Tax Corporation, including the
WF4BSTC Performance Agreement; or (e) Owner fails to timely pay any of its debts as they
become due, then this Agreement shall be in default. In the event that Owner defaults in its
performance of(a), (b), (c), (d), and/or (e) above, then the City shall give Owner written notice of
such default, and if Owner has not cured such default within 30 days after receipt of said written
notice,or if such default cannot be cured by the payment of money and cannot with due diligence
be cured within a 90-day period owing to any cause beyond the control of Owner,this Agreement
may be terminated by the City. As liquidated damages in the event of default, all taxes which
otherwise would have been paid to the City without the benefit of abatement pursuant to this
Agreement(together with interest charged at the statutory rate for delinquent taxes as determined
by Section 33.01 of the Property Tax Code of the State of Texas, but without the addition of a
penalty) shall be reinstated and shall become a debt to the City and shall be due, owing and paid
by Owner to the City within 60 days of the termination of this Agreement as described above as
a sole remedy of the City, subject to any and all lawful offsets, settlements, deductions or credits
to which Owner may be entitled. The parties acknowledge that actual damages in the event of
default and termination would be speculative and difficult to determine.
5. Sale, Assignment, or Lease of Property
5.1: The tax abatement provided for herein shall vest in the Owner upon upgrades to
real property and personal property additions and improvements described in Section 2.1, but,
except as hereinafter provided,such tax abatement is not assignable to any new owner or lessee
of all or any portion of the Premises without the prior written approval of the City, which approval
will not be unreasonably withheld. Notwithstanding the foregoing, the tax abatement provided for
herein shall be assignable without prior approval by the City: (i) to None, which has been pre-
approved by the City, (ii)to any parent, affiliate, subsidiary or other entity in which the Owner has
direct or indirect control, (iii) in connection with any sale of the Premises, or a portion thereof,
which are then leased back (for a period at least equal to the remaining term of this Agreement)
by the Owner or a parent, affiliate, subsidiary or other entity in which the Owner is in control, or
(iv) in connection with the assignment of the WF4BSTC Performance Agreement, in accordance
with the terms of the WF4BSTC Performance Agreement. For purposes of this Article 5,the term
"control" means either: (i)the ownership of 50%or more of the beneficial or economic interest or
voting power of the appropriate entity or (ii)the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of the controlled entity.
6. Miscellaneous Provisions
6.1: All notices or other communications required or permitted by this Agreement shall
be in writing and shall be deemed to be adequately given when delivered personally to any of the
Page 5 of 17
Tax Abatement Agreement
hereinafter designated addressees or the named representatives thereof, or when mailed by
prepaid, certified mail, return receipt requested, addressed to such party at the respective
addresses set forth below:
If to the City: City Manager
City of Wichita Falls
P.O. Box 1431
Wichita Falls, TX 76307-1431
If to the Owner: William Kelty, President
The Kate WF LLC
c/o Law Office of Charles Riley, PC
320 Lexington Ave
San Antonio, TX, 78215-1913
6.2: This Agreement was authorized by an order of the City Council adopted at its
meeting on March 1,2022,authorizing the Mayor to execute this Agreement on behalf of the City.
6.3: This Agreement was entered into by the Owner acting through the duly authorized
manager of the Owner.
6.4: In the event any section, subsection, paragraph,sentence, phrase, or word herein
is held invalid, illegal, or unconstitutional, the balance of this Agreement shall stand, shall be
enforceable,and shall be read as if the parties intended at all times to delete said invalid section,
subsection, paragraph, sentence, phrase or word.
6.5: Any party hereto may request an estoppel certificate from another party hereto so
long as the certificate is requested in connection with a bona fide business purpose.The certificate
shall include, but not necessarily be limited to, statements that this Agreement is in full force and
effect without default if such is the case, or specifying any defaults if that is not the case, the
remaining term of this Agreement, the levels of tax abatement then in effect, and such other
matters reasonably requested by the parties to receive the certificate. The party being requested
to provide the estoppel certificate shall be required to provide the estoppel certificate to the
requesting party within fifteen (15) business days.
6.6: The Owner,as a party to this Agreement, shall be deemed a proper and necessary
party in any litigation questioning or challenging the validity of this Agreement or any part hereof
or any of the underlying ordinances, resolutions, or City Council actions authorizing the same,
and the Owner shall be entitled to intervene in any such litigation.
6.7: After the Owner has satisfied the conditions set forth in this Agreement, the tax
abatement provided for herein shall continue for the duration of this Agreement and shall not be
lost through force majeure events such as acts of God, fire, tornado, earthquake, or other events
or circumstances beyond the Owner's reasonable control.
Page 6 of 17
Tax Abatement Agreement
6.8: This Agreement shall be governed by and construed in accordance with the laws
of the State of Texas.Venue for any action pursuant to this Agreement shall be in a state district
court in Wichita County, Texas. This Agreement is fully performable in Wichita County, Texas.
6.9: An executed copy of this Agreement in recordable form shall be recorded in the
Real Property Records of Wichita County, Texas.
6.10: Other taxing units in which the Premises are located may join in the execution of
this Agreement by executing a signatory page acknowledging the joinder of such taxing unit and
granting tax abatement by such taxing unit in accordance with the terms and conditions hereof;
an executed and acknowledged copy of each such signatory page shall be attached to this
Agreement.
6.11: This Agreement may be executed in multiple counterparts, none of which must be
signed by all of the parties hereto, but all of which, taken together, shall constitute one and the
same agreement.
CITY OF WICHITA FALLS
By:
Stephen Santellana, Mayor
THE STATE OF TEXAS §
COUNTY OF WICHITA §
BEFORE ME,the undersigned authority, a notary public in and for the State of Texas, on
this day personally appeared Stephen Santeliana, Mayor of Wichita Falls, Texas, known to me to
be the person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said Wichita Falls,Texas,that he was duly
authorized to perform the same by appropriate order of the City of Wichita Falls, and that he
executed the same as the act of the said city for the purpose and consideration therein expressed
and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this_day of March, 2022.
(seal)
Notary Public
Page 7 of 17
Tax Abatement Agreement
ATTEST:
By:
Marie Balthrop, City Clerk
Approved as to Form:
By:
R. Kinley Hegglund, Jr.,City Attorney
The Kate WF LLC, a Texas Corporation
By:
William Kelty, President
THE STATE OF §
COUNTY OF §
BEFORE ME, the undersigned authority, a notary public in and for the State of Texas, on
this day personally appeared William Kelty, President of The Kate WF LLC,a Texas Corporation,
known to me to be the person and officer whose name is subscribed to the foregoing instrument
and acknowledged to me that the same was the act of the said limited liability company and that
he executed the same as the act of said limited liability company for the purpose and consideration
therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this_day of , 2022.
(seal)
Notary Public
EXHIBIT A
Real Property Description
Lots Four(4), Five(5), Six(6), and Seven (7) Block 165 Original Townsite,Wichita Falls,
Wichita County, Texas, as recorded in Volume 5, Pages 21 -23,Wichita County Plat
Record.
\ N
LOTS 2&3 BLK 165
ORIGINAL TOWN,lNF
9L
LOTS 456&7BLK
165 ORIGINAL TOWN
Petroleum Building
Lots 4-7, Block 165, Original Town Legend
Plat Map n Subject Property
CITY CF WCHIISF4 Ls.PLAPIF.II CIS LIVF'y n
AP?RRCLCEC EY !] [H
DATE PRODUCED 9 January�02E
0 15 30 60 Feet
I I I I I I I I I
Page 9 of 17
Tax Abatement Agreement
EXHIBIT B
Exhibit B
The Kate Project Narrative and
Product Specifications
Project Narrative
The 10 story building located at 726 Scott Ave in Wichita Falls TX,was originally built for the
Downtowner Hotel Chain, in combination with American Trust.The ground floor was retail,floors
2-5 were configured as 115 hotel rooms. Floors 6-10 were configured as office space.
Current Office space is about 65%occupied in downtown Wichita Falls,while residential
apartments are at 100%occupancy with waiting lists.
My intent is to bring 726 Scott back online as 100%residential.Specifically the 115 hotel rooms
will be converted to student housing and the upper 5 floors will be converted to 55 market rate
apartment units. MSU student housing officials have toured the 110 hotel rooms,and
commented that they are twice the size of campus doom rooms,726 Scott offers rooms for
single individuals, and the rooms have their own en-suite bathrooms(unlike campus dorm
rooms).They advised pricing the units at$600/month (the MSU campus currently charges
$650).The market rate apartments should be a no-brainer. I recently converted the City Center
office building to 31 units,and we are at 100%occupancy with a waiting list. The property which
will be rebranded as"The Kate".
Product Specifications
COMMON AREAS
1. Pool. The Pool itself will be retiled, and resurfaced with gunnite as well as painted. The
pool equipment(pump/filters)will be replaced. New electrical service to pool room. Pool
light will be replaced, Pool deck will be resurfaced, Pool fence and walls will be
repainted. Green/Fake hedge will line the fence to provide privacy from parking below
2. Gym Equipment. Room will be painted, new LED lighting installed, Mirrors will be
installed along two of the walls. Rubber padded flooring will be installed. 3 tread mills, 2
Elliptical machines,4 stationary bikes,and 2 stair steppers will be installed.
3. Common Area Amenities There will be a large common area on floor 2 and two smaller
areas. The smaller areas will be designed for studying with a large table in each and
several chairs. One will have a large,Wall mounted flat screen TV. The larger area will
have 4 Built in custom hi-top counters which will cover the HVAC equip and serve as
areas where people can work on laptops overlooking downtown. 12 modern stools
Page 10 of 17
Tax Abatement Agreement
EXHIBIT B
under the counters. There will be 6 couches,and 10 imitation Barcelona chairs,a large
flat screen TV, Ping Pong,Air Hockey,and Pool Table.
4. Elevators
5. Elevator CABS. $80,000 The interior of the 4 cabs will be modernized with upgrade kits
@ 20,000 each
6. The front doors are store front doors both the front and back doors need to be replaced
with similar glass doors Total of 8 doors @ cost of$5K each(rough verbal bid from City
Glass)
7. Paint Exterior of building,this includes painting and re-caulking lower panels,as well as
painting horizontal cement floor dividers. Color to be dark grey
8. Sprinkler System will be required due to use change. Bid was provided by Fire Control
Systems, (Oklahoma)for the sprinklers,and Casa Amarillo (audio visual alarm system).
It includes running all the pipe,and sprinkler heads as well as replacing the basement
fire pump and replacing parts of the main 8"fire supply line. It also includes all the video
and audio alarms
9. Resurface Parking Area. The current parking area is brick covered by asphalt. Where
the parking area joins the hotel property,there is a small drop. Parking surface is in bad
shape and will need to be resurfaced with asphalt,and additional cement curbs poured
where the two lots join. A small cement island will be poured along the middle of the
parking lot to allow for a row of trees to be planted.
10. Restore Laundry Room. Two laundry rooms exist in the basement but all plumbing,
electric,sheetrock and machines have been removed. Room with plumbing/electric will
be restored to both rooms. In one main laundry area,there are two industrial washers
which will likely be restored and paired with two new industrial dryers.
11.Appliances for common Laundry Room. Purchase and Install 10 new sets of washer
dryers. The machines will be card key activated,and a 'reload'machine will be installed
in the Lobby
12. Replumb Garage. All of the floors drain sewage down to the basement. Roof drains all
come down to the basement as well. There are 2 'lift stations'(ie sump pumps that
pump out solids)that will likely need to be replaced. The pipes are currently cast iron
and cracked,so all of the lines will be replaced with PVC. There are also two bathrooms
in the laundry room,which need to have plumbing restored.
13. Lighting Garage. Vandals had set fires in the garage and damaged all of the electric
lines,so all of the basement electric needs to be replaced and at the same time we will
upgrade the lighting to be LED
14. Exterior Lighting. The exterior lighting is inadequate and out of date. 20 lights in the car
port will be replaced/upgraded to LED. Lights in the entryway and uplighting on flag
poles will be replaced. There are 3 large parking lights that cover the various parking
areas that will be upgraded with LED.
15. Fix Parking Arm. There is a mechanical parking arm that prevents unauthorized cars
from using the basement. It needs to be replaced, including running new electrical lines
and controller. There are cement and steel bumpers that need to be repaired as well as
a hight restriction beam.
Page 11 of 17
Tax Abatement Agreement
EXHIBIT B
16.New Roof. There are 4 roof areas. The main one is about 10,000 sq feet. There is an
additional roof area above the 2nd floor gym, near the pool,and two long narrow roof
areas above the ground floor. They will be replaced with foam roofs(decking is good)
17.Solar. This is based a bid from Davis Electric which will cover about 30%of ongoing
electric costs. Bid was$247K, rounded up to$250K
18.Salaries. Although there will be different trades doing their respective jobs, I typically
hire my own crew to do finish out and odd construction jobs that need to get done, but
fall between the trades. When I did the project a block away(conversion of office to 31
units)my salary costs were about$20K/month. I doubled that to come up with
$40K/month x project duration of 18 months. The reason I didn't do the math as a
straight unit function$20,000(monthly cost)/31(units)=$645/unit and then multiply that by
170 units for the Kate, is that 115 of the Kate units already have walls and doors hung.
FLOORS 2-5
1. Resurface Showers. The 4"x4"tile on the back of the shower(where the shower head
comes out) needs to be redone in all of the rooms. Sheetrock behind the toilet needs to
be replaced. Once that is done,the floor(also 4x4 tiles)and the tub and wall tile work
need to be resurfaced (white on the walls and tub,and grey on the floor.
2. Shower Faucets. This is for the faucet and installation
3. Sink Faucets. This is for the faucet and installation
4. Toilets. All toilets need to be replaced
5. Plumbing Repair. The 4"Copper main water line coming in was cut at the basement.
New 4 inch copper needs to be run to the boiler and then 4"hot and cold copper need to
be run horizontally down the two wings of the building. Six,3"pex lines will then run
vertically from each of the horizontal lines up to floor 6. A combination of 3/4"and 1/2"
pex lines will need to need to be run to the 115 rooms and angle stops installed. A
booster pump will be installed in the basement to increase water pressure.Sewer lines
are cracked/cast iron and will need to be replaced.
6. HVAC. Purchase and install Two 80 ton chillers and chill tower. Replace exiting pumps
and water lines if necessary,repairs to 115 in room blower units as necessary
7. Replace thermostats—Convert from pneumatic actuators to low voltage
8. Hallway units. Replace 16 Window units
9. Boiler. Two 2,065,000 BTU Hot Water Boilers plus circulating pump
10.Paint. Paint all bathrooms,bedrooms,common area interior.
11. Carpet. Labor and Material for Carpet.Aprox 20,000 sq feet per floor
12.Electrical. Need to restore electrical service from basement to main panels on each
floor. Tie in existing room lines to main panel on each floor. There will be one common
meter for the units on floors 2-5. Replace vanity light
13.Caulk Windows. Interior windows have substandard caulking and should be re-caulked
14.Door Issues. Doors handles will need to be replaced on each door to upgrade card key
access. 12 doors have issues where the door or door jams will need to be replaced.
15.Furniture. Student Housing units will need beds,desks,end tables,drapes,lamps,TV,
a mirror a chair and armoire.
Page 12 of 17
Tax Abatement Agreement
EXHIBIT B
FLOORS 6-10
1. Demolition. Floors 6-10 will have all the walls,except historical central corridors,
demolished and removed. All carpet,ceiling, HVAC,plumbing lines will be removed.
This price was from a abatement contractor and includes asbestos abatement.
2. Framing.We will use metal framing on floors 6-10,and frame up new walls to plan. Cost
estimate was based on similar project a block away.
3. Electrical. New service will need to be brought in. Current vault does not offer enough
capacity to service the 55 units. Units will be individually metered with meters in
basement and lines run up a central chase to the upper floors. This price includes the
sub panels in the unit,and the wiring in all the units.
4. Plumbing. New pex supply lines will need to be run from the six 3"pex lines that will be
available on floor 6. Water is not individually metered. The supply and sewage lines
will need to be run to and from each of the 45 lb/lb and 10 2b/2b units on these floors.
Additionally PVC roof drains will need to be replaced and connected to lower floors.
Individual water heaters will need to be installed for each unit.
5. HVAC. New 2 to 5 ton(depending on unit size)split systems will need to be installed.
Blower units to be installed as upright or pancake/ceiling as needed. Bath fans and
dryer vents to run vertically to roof with boster fan at roof.
6. Sheetrock and Insulation. Spray foam insulation between units, Double layer drywall
on all fire walls. Tape, bed and float. Price estimate based on similar project half block
away.
7. Water Heaters. This is the cost of the water heater,not the insulation-see product
specifications for more detail
8. Lights. All LED lighting, likely track lighting from Ikea,and disk LED lights in closet
areas.Also cost of ceiling fans. Avg cost of light fixture$100. Avg number of lights per
unit 7=$700 unit.
9. Kitchens. Ikea kitchens,sinks,fixtures. See product spec sheet
10. Flooring. Avg 10,000 sq feet per floor. See spec sheet for more detail.
11. Bathrooms. This cost includes the tile,and tile work.There will only be tiled showers(no
tubs). Also includes toilets, ikea vanities and mirrors
12. Doors. This is just the purchase price of wood,single panel doors,and fire rated front
doors
13. Doors hanging with finish carpentry. This is the labor of the door hanging
14. Door hardware. This includes door knobs on interior and front door,peep hole on front
door,and security lock on door.
15.Washer Dryer. This is the purchase price of the unit. See spec sheet for more detail.
16.Appliances. This is the purchase price of the unit(range,fridge,dishwasher,
microwave). See spec sheet for more detail.
17.Counter tops. These will be man made stone.
Project Specifications
Page 13 of 17
Tax Abatement Agreement
EXHIBIT B
1. Elevators will be modernizing using SmartRise Controllers. Work to be performed by
Asel Elevators. Product specification can be found in the/Elevators folder. Asel will
a. Replace Relay based controller with Smartrise controllers
b. Replace cables as necessary
c. Install new transformer for DC Motors
d. Install new AC motor door operator
e. Install new call buttons
f. Install new in-cab control panel
g. Install new Tape floor selectors
2. 2 80 Ton chillers will be used to handle cooling for floors 2-5 The preferred model will
be Daikin -WGZ Water Cooled Scroll Compressor Chiller. More information will be
found under the/Chillers folder
3. The upper 55 apartments will rely upon split systems ranging from 2-5 tons.They will
likely be Goodman, depending on pricing and availability.
https://www.goodmanmfg.com/products/heat-pumps
4. The upper 55 apartments(floors 6-10)will rely upon electric flash water heaters by
Rheem.They will be similar these, depending on pricing and availablity
https://www.homedepot.com/p/R heem-2-4-kW-120-Volt-Non-Thermostatic-Tankless-Elec
tric-Water-Heater-Commercial-RTE H2412/315052842?source=shoppingads&locale=en-
US&&mtc=Shopping-VF-FDYN M-G-D26P-026010WATERH EATER-R H E EM-NA-Fe
ed-SMART-2237722-WF-MK466033326 9016147011 FY21 2529&cm mmc=Sh000ing
-VF-F DYNM-G-D26P-026 010 WATER HEATER-RHEEM-NA-Feed-SMART-2237722
-WF-MK466033326 9016147011 FY21 2529-71700000084558371-587000071815170
82-92700068734133786&gclid=CjO KCQiAu P-O Bh DgAR IsAD4XH pcsm H ne5GC IXxg74
JvzpLYA3sahiFV IkUvWPCynwRw36YMJViiMQaAhHJEALw wcB&gclsrc=aw.ds
5. Flooring will be tentatively using the Setagrip L Queens Lace Loose Lay 18"x18"luxury
vinyl flooring. Flooring will not likely be purchased for another 12 months and is likely to
change based on availability. Any change in flooring will be approved by NPS
6. Kitchen Cabinets will be Ikea RINGHULT high gloss white
https:/lwww.ikea.com/us/en/rooms/kitchen/ringhult-kitchen-series-Dub6787d5e2?itm ca
mpaign=kitchen-series&itm element=Kitchenseries-Display&itm content=ringhultseriesL
P
7. Electric, In-Unit Washer and Dryers will be stackable, and similar to this depending on
product availability.
https://www.appliancesconnection.comlae-gud27essmww.html?ref=GoogleShopping Phy
sicalStock&gclid=CiOKCQiAuP-OBhDgARIsAD4XHpeSwN RxXaQE5yDIVZM9fNznWDu
KvjegmOa3rn0v8aZDDCu3-S4BV_gaAmHeEALw wcB
8. Microwave units will be installed under the upper cabinets and will be similar to this
based on product availability.
https://www.ikea.com/us/en/p/huvudsakliq-built-in-microwave-stainless-steel-color-s2938
7223/
Page 14 of 17
Tax Abatement Agreement
EXHIBIT B
9. Electric Ranges will be similar to this based on product availability
https://www.ikea.com/us/en/p/motsvariq-range-with-glass-ceramic-cooktop-black-stainles
s-steel-20462052/
10.Stainless steel refrigerators will be similar to this, subject to availability.
https://hdsu pplysolutio ns.com/p/ge-166-cu bi c-feet-refrigerator-energy-star-stainless-steel
-optional-icemaker-501233-p189805?ef id=CiOKCQiAuP-OBhDcARIsAD4XHpd7fiZZYX
B8ISFGU HtUOIWddOxRLU4_6OeTWyB9DiuQndWJdgb-SuMaAhvtEALw_wcB:G:s&cid
=ppc all __gI pfdShopjHDSSIUSIAppliances&skwcid=AL110728!3!438192852955!!!ol9
10087965566!!10160878488!110261974228!&gcl id=CjO KCQiAu P-O Bh DgAR I sA D4XH pd
7fjZZYXB8ISFGU HtUOIWddOxRLU46OeTWyB9DiuQndWJdgb-SuMaAhvtEALwwcB
11. End Tables will likely look similar to this, bolted to wall. Simple, Modern
Page 15 of 17
Tax Abatement Agreement
EXHIBIT B
12. Desk will look similar to this
ww. .
y
Page 16 of 17
Tax Abatement Agreement
EXHIBIT B
13.Assuming NPS/Historic allows,we'll replace the vanity light/mirror with something like
.< —.
ww _
r
„ �L
I
1C
.- , 11
L,
� �;, ' -
1
�.
_.
, ..... , iMp.R
1 ,
1,
_ ..
dc,•._ _ HA
1
iI I
■
11.1141111.1
this.
Page 17 of 17
Tax Abatement Agreement
City of Wichita Falls
City Council Agenda
Stephen Santellana, Mayor
�� Bobby Whiteley, Mayor Pro Tem/At Large { '.
Michael Smith, District 1 ; '-f' ' 1•
Ak. f 5 Larr Nelson, District 2 "?),�(� a Y ' �t •
r y• �
T E x A s Jeff Browning, District 3 see
Tim Brewer, District 4 i t-�Lr�
Nue.5"XW Croide�0 ortuoiries �' '�7
�� Steve Jackson, District 5 • -47,44q. L•`''
Darron Leiker, City Manager
Kinley Hegglund, City Attorney
Marie Balthrop, City Clerk
1st Amended Notice Of Regular Meeting Of The Mayor And City Council Of The City
Of Wichita Falls, Texas, To Be Held In The City Council Chambers, Memorial
Auditorium, 1300 Seventh Street, Tuesday, March 1, 2022, Beginning At 8:30 A.M.
Item #
1. Resolutions
Resolution authorizing the Mayor to execute a Tax Abatement Agreement with The
Kate WF LLC previously known as Petroleum Building Wichita Falls LLC related to
their project where they will spend approximately $14.6 million to remodel floors 2-
10 into 170 multi-family apartments on the property known as 726 Scott Avenue and
owned by The Kate WF LLC, which is in the Downtown Petroleum Building
Reinvestment Zone.
2. Executive Sessions
Executive Session in accordance with Texas Government Code§551 .087 to discuss
or deliberate the offer of a financial or other incentive to a business prospect that the
City Council seeks to have, locate, stay, or expand in or near the territory of the City
of Wichita Falls and with which the City and/or economic development corporations
created by the City are conducting economic development negotiations (including,
but not limited to, economic development update).
Spanish language interpreters, deaf interpreters, Braille copies or any other special needs
will be provided to any person requesting a special service with at least 24 hours' notice.
Please call the City Clerk's Office at 761-7409.
Every item on this agenda shall be considered a public hearing. Regardless of the agenda heading under
which any item is listed, any word or phrase of any item listed on this agenda shall be considered a subject
for consideration for purposes of the Texas Open Meetings Act and other relevant law, and City Council
may deliberate and vote upon any such subject and resolutions related thereto. Resolutions, ordinances,
and other actions concerning any word, phrase, or other subject may be voted upon, regardless of any
language of limitation found in this agenda or any document referring to such action. Any penal ordinance,
development regulation or charter provision of the City of Wichita Falls or item which is funded by the current
or next proposed City of Wichita Falls budget, including, without limitation, any street, water pipe, sewer,
drainage structure, department, employee, contract or real property interest of the City of Wichita Falls, may
be discussed and deliberated, and the subject is hereby defined as such without further notice. Any item
on this agenda may be discussed in executive session if authorized by Texas law regardless of whether
any item is listed under"Executive Sessions" of this agenda, regardless of any past or current practice of
the City Council. Executive sessions described generally hereunder may include consideration of any item
otherwise listed on the agenda plus any subject specified in the executive session notice. Executive
sessions described generally hereunder are closed meetings, may include consideration of any item
otherwise listed on the agenda plus any subject specified in the executive session notice, and may include
items under Texas Government Code Sections 551.071, 551.072, 551.073, 551.074, 551.076, 551.084,
and/or 551.087.
CERTIFICATION
I certify that the above notice of meeting was posted on the bulletin board at Memorial
Auditorium, Wichita Falls, Texas on the 27tt' day of January, 2022 at 3:30 o'clock p.m.
i7aL
City Clerk
CITY COUNCIL AGENDA
PAGE 2 OF 2