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4B Sales Tax Corporation Minutes - 07/07/2022 MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (4BSTC) July 7,2022 Present: Tony Fidelie, President § Members Glenn Barham, Vice President § Rick Hatcher, Secretary-Treasurer § Dave Clark § Darron Leiker § Nick Schreiber § Bobby Whiteley, Councilor-at-Large/Mayor Pro-Tem § City Council R. Kinley Hegglund, Jr., City Attorney § City Staff Paul Menzies, Assistant City Manager § Blake Jurecek, Assistant City Manager § Terry Floyd, Director of Community Development § Pat Hoffman, Property Administrator Chris Horgen, PIO Paige Lessor, Recording Secretary § Syd Litteken, Architect § Syd Litteken Design Concept/Architects Sabin Santistevan �§ Jana Schmader, Executive Director § DWFD Jeanette Charos, Marketing Director § Sandy Hay § Wichita Restaurant Supply Absent: Michael Mills § 4B Member 1. Call to Order. Mr. Fidelie called the meeting to order at 3:01 p.m. 2. Report of financial condition (current, past & planned budget & expenditures); and other administrative actions, including, if necessary, induction of any new board members. Mr. Paul Menzies addressed the Board and explained that they have the most recent sales tax report. He said that the City is up 11% month over month from last year and is running about 10% ahead for the year. There were approximately $6 million of encumbered funds, which includes all of the existing commitments regarding the hotel conference center project. He asked the Board to please mark their calendars for next month's meeting on the first Thursday in August because they will be talking about approving the budget for next year. Mr. Barham asked why sales tax was down 8% in May when it had been significantly higher in all the previous months. Mr. Leiker said that staff was not'sure yet, but looking at the trend cities in Texas, it is slowing. He stated that the double-digit growth is tending to slow down. He explained that he thinks the combination of increasing interest rates, fuel prices, and inflation has caused people to spend less. It is a little bit of a roller coaster, and it is unclear whether sales WF4BSTC Minutes Page 1 of 6 07 07 2022 ( tax will go up or down. He stated that he had not seen sales tax reports for the rest of the state and just received the City's numbers, but he was curious how other cities compare. 3. Consent Agenda a) Approval of Minutes of 0 4/0 7/2 0 2 2. b) Approval of Downtown Matching Grant Applications i. 620 Ohio (Unit 102) - McIntosh Building ii. 711 Indiana-Hoover Rogers Law iii. 726 Scott Ave - The Kate iv. 900 8th St- The Hamilton Building v. 600 Ohio Ave - Marcom/Mayfield Events vi. 1001 8th St - Wichita Falls',Baptist Church Mr. Leiker moved to approve the consent agenda. Seconded by Mr. Clark, the motion carried 6-0. 4. Public hearing regarding a request from Kirk Laney, dba Picker's Universe L.L.C., for,an extension of the approved funding agreement to renovate the existing budding at 1000 Indiana downtown into a mixed-use retail and restaurant establishment. Mr. Fidelie opened the hearing at 3:05 p.m. Mr. Menzies addressed the Board to give a brief history of the project. He explained that the Board and the City Council initially approved funding for this project in the amount of $133,000 in 2019. Then about six or seven months ago, this Board reapproved it for six months. The applicant requests an additional six months, and the Board will hear an update on the project. Mr. Sabian Santistevan with Syd Litteken Architects addressed the Board. He stated that he is Picker's,Universe's general contractor and project manager and they have encountered some supply chain issues that have caused delays. He explained that they were replacing the ornate tin ceiling, and in January, they were suppoSed to receive 1,500 ceiling tiles, 500 pieces of four-foot cornice, and 2,500 feet of hammered mortar to go into the ceiling system. Those materials were not delivered until May 25th. With the installation of the ceiling comes electrical and HVAC, and the delayed deliveries pushed everything involved back. Another delay occurred with the partitioned walls. This installation was to start on February 14th. However, in May, they discovered that the entire company had moved to Mexico,and they have had no contact with them since late January. They are currently gathering new estimates from other companies. He stated that the bid they originally received for the kitchen flooring in 2019 has now doubled, and the owner would like to go with something less expensive. Mr. Santistevan continued to discuss the delays and addressed the Board regarding issues with the restaurant equipment. Before finalizing their order with Wichita Restaurant Supply, Jimmy Hay passed away. At the time of his passing, they did not know where they were going with the company. So they gave the kitchen equipment back and a few leads on places to go. The company, Wichita Restaurant Supply, has now contacted Pickers Universe and would like them to return and reorder with them. However, a news article published said, "the owner of Wichita Restaurant Supply died without delivering the product." Mr. Santistevan said that was not what WF4BSTC Minutes Page 2 of 6 07 07 2022 happened.They never finalized their order,and now Wichita Restaurant Supply has come forward and expressed that they are ready to do business again. He said they would return to Wichita Restaurant Supply to rebid the order. These delays caused progress to be pushed back, which is the reason they are asking for an additional six months. They are about to finalize the sprinkler system,on which the 4B funding must be used. However, because of how the agreement reads, the establishment must be issued a certificate of occupancy, so an additional six months is needed to finish and get the C.O. Mr. Barham thanked Mr. Santistevan for attending the meeting and updating the Board on the project. He also stated that he appreciated that Mr. Santistevan clarified the information about Wichita Restaurant Supply and the equipment supplied to the project. Mr. Barham said he spoke with the company, and everything in the original contract had been installed or delivered. Mr. Santistevan explained that the only purchase finalized at that time was the exhaust hood, which had been delivered and installed. He stated that the problem with the newspaper comment was that it was deceiving. He said he wanted to make sure everyone knew what happened. Mr.Fidelie asked if the%Board agrees to another six months,how confident is the contractor that it will get done within that time frame? He stated that he did not want another extension request in five months. Mr. Santisteven noted that the third floor was their problem, and they have the flooring for the kitchen. He stated that the rest of the flooring is hardwood, and it is in the last stage of being finalized. The ceramic tile that will be installed in the kitchen,hallway,and upstairs restroom has been delivered and is on site. Installation of the tile is supposed to begin next week. All the ceiling tiles are installed on every floor except the second-floor bar, and they lack 20 feet to be finished.Then,the crown molding and painting will be the last step.They are on the downhill stretch and are about to finish. Mr. Fidelie stated that if six months gives a little cushion, what would he anticipate the actual time to complete?Mr. Santisteven said they are looking at probably three months. Mr. Fidelie closed the hearing at 3:12 p.m. 3. Public hearing regarding a funding request from Downtown Wichita Falls Development, Inc. for various streetscape improvements downtown. Mr. Fidelie opened the hearing at.3:13 p.m. Ms. Jana Schmader addressed the Board, presented a PowerPoint presentation and explained that her funding request package contained community branding items and public improvement projects. She stated that the first item DWFD would like to add is an additional 30 wrought iron benches to the downtown area. DWFD has already placed 22 benches in the area. She stated that the items brought before the Board are in line with their Streetscapes Plan and will complement some of the items already in place and some of the new items that have been approved by city council, such as the street lamps and light poles.DWFD polled downtown property owners to see if they would like benches outside their property, and the overwhelming response was that they would like to see this. She showed the proposed locations of bench placements on a map but explained that they would work with property management to go through the encroachment process. The next item Ms. Schmader discussed was trash cans. She stated that DWFD had placed 17 trash cans in the downtown area,and they are requesting funding to add 14 more.As pedestrian traffic increases downtown, they would like to ensure the streets and sidewalks are as clean as possible. She said DWFD contracts with Work Services Corporation and pays for trash removal services. So it will not cost taxpayers any additional money. DWFD will take on the maintenance WF4BSTC Minutes Page 3 of 6 07 07 2022 contract with the extra trash cans. The trash cans get emptied three times a week unless they call them after a crowded night. The third item Ms. Schmader presented to the Board was pole banners. She stated that this item had been on DWFD's marketing collateral list since 2017, when it went through the massive rebranding of the downtown logo. DWFD is looking at placing the banners along Scott Street, and having them become more concentrated in the core area. They will also be located close to the hotel and conference center. The banners will all have general branding to increase their longevity. They will include DWFD taglines and logos to stay up year-round. DWFD would like to purchase 70 banners to cover the proposed locations. These locations would give a good gateway corridor and welcome into the heart of downtown. The placement has already been approved by John Burris, Director of AT&T, and that department will help us install them. The fourth item presented to the Board was pet stations. The number one target in the economic development strategy is the addition of residences in downtown. There are 170 residential units to be added in the next couple of years, and pets typically come with residences. u Currently,there is one pet station in Park Central, and DWFD would like to add another,one since that is the largest greenspace downtown. Also, they would like to add one to Bud Daniel Park. They are all close in proximity to where people walk their pets. The placement of additional pet stations would go one step further to ensure the streets and greenspaces are kept clean. Ms. Schmader estimated the total project cost would be $40,000, and the Board of Directors has authorized DWFD to invest the first $5,000 and agrees to all the maintenance costs. In total, the request to 4B is for 116 items for $35,000. If approved by the Board, this project would go to Council on July 19th' and the items should be installed by Hotter'n Hell 100 this year. Mr. Schreiber asked if the banners would all look the same or if there would be some variances. Ms. Schmader stated that the whole branding packet has the same colors, but there would be different taglines. The wording may be different, but(the overall feel will be the same. Mr. Schreiber then asked if the banners at the outermost'locations would say, "Welcome to Downtown." Ms. Schmader noted that they could look at that, which is why they will be a little more spaced out on the north and south ends and become more concentrated in the core area. She said they were indeed open to suggestions from the public or otherwise. Mr. Fidelie closed the public hearing at 3:19 p.m. 4. Staff report/update on the corporation-owned Lindemann Parking Garage downtown. Mr. Menzies addressed the Board and reminded them that the WF4BSTC owns and operates the Lindeman Parking Garage, and the Board does budget for its maintenance. There are a couple of lease agreements with folks that use it regularly, and it is open for downtown events. Mr. Menzies explained that Ms. Hoffman would update the Board on some recent'activities with the facility. It has been challenging to keep the facility clean of graffiti, and many vandals are entering the garage and causing lots of damage. Mr. Menzies stated that the City will gate off the 7th Street entrance, then give remotes to current lessees and DWFD to allow them access in and out of the garage. Ms. Hoffman addressed the Board and explained that it had been quite an experience trying to maintain and take care of the garage. Ms. Hoffman displayed a photo of the garage with graffiti on the walls. She explained that it had been abated four previous times. She received a quote to have it abated for the fifth time, and it was by far the most expensive, at $1,500. Before the company was able get tor-the garage to abate and sandblast it, it had been tagged four more WF4BSTC Minutes Page 4 of 6 07 07 2022 times, so it will cost significantly more to have abated. Ms. Hoffman displayed additional photos of the vandalized garage, explaining that it had been vandalized on every floor and every wall. Other problems are vagrants breaking into and camping, cooking in the stairwells, and leaving trash behind. It must be cleaned every week because it stinks so badly. Ms. Hoffman explained that city staff is proposing to gate off the garage. She presented a quote obtained for a square, tubular, sliding gate operated by remote. The bid includes ten gate remotes, allowing staff to give remotes to the current lessees, building maintenance, and DWFD to open it for public events. Property Management would still have additional remotes for any other lessees and for staff to enter the garage daily to check it out. The gate will be seven feet tall, so it will be impossible for anyone to climb over to-get in.No one should be able to get into the garage without a remote. Ms. Hoffman stated that there is an opening that is ten feet high that someone could enter. If that starts happening, cyclone fencing could easily be added if necessary. Mr. Menzies reminded the Board that it has a performance agreement with a downtown property owner in which this garage may transfer back into private ownership within the next two years. Mr. Menzies said it was pertinent to maintain and keep it in good shape. Ms. Hoffman restated that over$3,000 has already been spent on the abatement,of the graffiti alone. It will cost another $3,000 to $4,000 to have it abated again. Also, an additional $3,600 has been spent on replacing and repairing light fixtures. Mr. Barham,asked if Ms. Hoffman had a photo of the Indiana\side of the garage. Ms. Hoffman stated that she did not. Mr. Schreiber directed everyone's attention to the first photo shown. Ms. Hoffman pointed out that on the 7th Street side and the alley side, it has a gate and n cyclone fencing around the corner on the Indiana side. Mr. Fidelie reaffirmed with Mr. Menzies that the $14,000 or $15,000 had already been budgeted. Mr. Menzies stated that $25,000 is budgeted annually for this maintenance, and this presentation is just an update on what is happening. Mr. Barham told Ms:Hoffman to go ahead and fence the Indiana side that had no fencing. He said it would be better to be proactive than reactive. Mr. Fidelie asked what the turnaround time on the gate would be. Ms. Hoffman stated that that staff was already in the process and just needed a requisition order which will be done next week. It would probably take a couple of months. Mr.Jurecek clarified that the first floor is fenced all the way around the building.However, the second floor on the Indiana side is not fenced. Mr. Fidelie dismissed the idea that an on-duty police officer would be able to sit there all night, every night, to keep an eye on things. Ms. Hoffman stated that there is an officer up there nightly. She also noted that city staff goes down to the garage once a day, and a code enforcement officer goes down there as well, but no one has been able to catch anyone. Mr. Fidelie asked if the lights stay on overnight. Ms. Hoffman said they do and people go in there and destroy the lights. 7. Executive Session. Mr. Fidelie adjourned the meeting into executive session at 3:30 p.m. pursuant to Texas Government Code section 551.087. He announced the meeting back into regular session at 4:04 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further action were taken on these items in executive session. WF4BSTC Minutes Page 5 of 6 07.07 2022 8. Consider a funding request from Kirk Laney,dba Picker's Universe L.L.C.,for a six- month extension of the approved funding agreement to renovate the existing building at 1000 Indiana downtown into a mixed-use retail and restaurant establishment. Mr. Clark moved to provide the six-month extension of the approved funding agreement. Seconded by Mr. Schreiber, the motion carried 6-0. 9. Consider a funding request from Downtown Wichita Falls Development, Inc. for various streetscape improvements downtown. Mr. Hatcher moved to fund the $35,000 as requested. Seconded by Mr. Leiker,the motion carried 6-0. 10. Adjourn. Mr. Fidelie adjourned the meeting at 4:06 p.m. Guy . "T y" Fidelie, Jr., President WF4BSTC Minutes Page 6 of 6 07.07.2022