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4B Sales Tax Corporation Minutes - 10/13/2022 MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (4BSTC) October 13,2022 Present: Tony Fidelie, President § Members Glenn Barham,Vice President § Rick Hatcher, Secretary-Treasurer § Dave Clark § Darron Leiker § Nick Schreiber § Stephen Santeliana, Mayor § Mayor& City Council Bobby Whiteley, Mayor Pro Tem § R. Kinley Hegglund, Jr., City Attorney § City Staff Paul Menzies, Assistant City Manager § Jessica Williams, CFO § Terry Floyd,Director of Development Services § Chris Horgen, Public Information Officer § Andrea Kidd,Public Information Admin Clerk § Paige Lessor, Recording Secretary § Ann Arnold-Ogden, Executive Director § WFAAC Jerry Skelton § Chelsea Plaza, LLC Kari Skelton § Cody Melton § S&A, LLC Shea Melton § John Dickinson § Restoring the Past, LLC Syd Litteken § Syd Litteken Design Concepts Lynn Walker, Writer § Times Record News Absent: Michael Mills § 4B Member 1. Call to Order. Mr. Fidelie called the meeting to order at 9:00 a.m. 2. Report of financial condition (current, past & planned budget & expenditures); and other administrative actions Mr. Menzies addressed the Board and reminded everyone that the Board normally has a standing meeting on the first Thursday of the month at 3:00 p.m. However, there was a challenge to get a quorum last month, and there are staffing issues this month, so the Board is meeting a couple of weeks later than usual. There may not be a November meeting,but there will most likely be a regular December meeting. Mr. Menzies continued with the financial report. He reported that August sales tax receipts were up 15% from last year, and sales tax for the year is still running 10% ahead of FY 2022. WF4BSTC Minutes Page 1 of 6 10.13.2022 Additionally, Mr. Menzies told the Board that Council had approved their yearly budget and approximately$7.7 million of unencumbered funds are available for new projects. Then, Mr. Menzies introduced Mrs. Ann Arnold-Ogden to give an update on the mural being constructed on the Lindemann Parking Garage. Mrs. Arnold-Ogden thanked the Board for their time and displayed some photos of the mural's progress. She stated that the first floor of the mural was almost complete, and the entire mural will extend to four floors. Two full animals are complete, and half of the two large animals are almost finished. She named a few of the animals in the mural - an elephant, a koala, and a jackrabbit. The artists are finding that it is taking a little time because of the weight and thickness of the tiles. They are aiming to be entirely finished with the project by the end of November. Mr. Fidelie thanked Mrs. Arnold-Ogden for the update. 3. Consent Agenda Mr. Clark moved to approve the consent agenda. Mr. Hatcher stated that he would like to make a correction to the minutes. Then Mr. Clark made an amended motion to approve the consent agenda with the exception of the minutes. Seconded by Mr. Hatcher, the motion carried 6-0. a) Approval of Minutes of 08/17/2022. Mr. Hatcher moved that the minutes be approved with a minor correction. He stated that Larry Sanger was a great guy who supported the City and was always all the MPEC stuff. So, if we are referring to that business, it should be Larry's Marine, referred to as a marina, a big flotilla on the lake with many boats floating. Could we correct marina to marine in three places? Mr. Clark moved to approve the minutes with Mr. Hatcher's direction. Seconded by Mr. Barham, the motion carried 6-0. b) Approval of Downtown Matching Grant Applications: 1. 816 Indiana—Former Designing Spaces Building 2. 817 Ohio—Half Pint Taproom&Restoration hall 4. Public hearing regarding a funding request from Jerry Skelton, dba Chelsea Plaza LLC, to assist in fire suppression system upgrades as part of the renovation of the existing building at 804 Lamar Ave downtown. Mr. Fidelie opened the public hearing at 9:05 a.m. Mr. Skelton introduced himself and his wife, Cari,to the Board. He thanked the Board for having them again and said they have scaled back their project, hopefully saving them and the Board money. They have decided to focus only on 804 Lamar instead of both 804 and 806 Lamar. The issue with the project is the fire suppression system and fire alarms that must be installed. They requested an amount of$158,991 based on all the estimates received from their architect and construction company. He pointed out that $40,000 of that cost is just to get the water across the street. Their building sits on the west side of the street, and the water line is on the east side. Mr. Skelton told the Board that they appreciate everything it has done for them in the past, and they look forward to continuing to work with the Board. He then asked the Board if they had any WF4BSTC Minutes Page 2 of 6 10.13.2022 questions. Mr. Hatcher asked if there was water on that side of the street currently. Mr. Hatcher then further asked what other properties the line would service. Mr. Skelton said he was not positive about how it all works but believes there needs to be a six-inch water line for the fire suppression system.He stated that they had water on that side of the street but didn't think it was a large enough pipe to service the fire suppression system.Mr. Schreiber then asked if Mr. Skelton had a timeline. Mr. Skelton said he was hoping to start sometime in November,but it will probably be December. From the start of construction, it should take about five months. Mr. Fidelie closed the public hearing at 9:09 a.m. 5. Public hearing regarding a funding request from Cody and Shea Melton, dba S&A LLC, to assist in fire suppression system upgrades as part of the renovation of the existing building at 816 Indiana downtown. Mr. Fidelie opened the public hearing at 9:10 a.m. Mr. Cody Melton addressed the Board and thanked them for their time.He then addressed a previous question regarding the underground fire line because it was also pertinent to his project. The underground fire line only services your building. It is a private line. Part of the issue is that the water line is on the west side of the street. In his case,he is required to have an eight-inch line. But he currently has a one-inch line running for the building for only water and sewer. Mr. Fidelie confirmed that the private line is necessary for fire suppression. Mr. Melton stated that was correct. It could be a four-inch line or a six-inch line, and the owner is responsible for the line in the future, and there must be some sort of easement. Mr. Fidelie then asked how big was the current line. Mr. Melton that it is just a one-inch line to service bathrooms, lavatory, and things of that nature. Mr. Fidelie clarified that a one-inch line would not carry enough water to fuel the fire suppression system. Mr. Melton confirmed that was correct. It must be a minimum of four inches. Mr. Melton stated that he had a PowerPoint presentation ready. He described The Yucca House. He explained they had already purchased and remodeled part of it for retail space. The retail space is currently rented to two companies. He stated that they do have some experience downtown. They have an old bank building, Bank of America, at 9th and Lamar that they turned into a duplex.They bought it in 2020,which became a labor of love during COVID.They enjoyed it, so they thought they would try it again downtown. He further described the building. The building was built in 1935 and measures just under 4,000 square feet. They have the first floor leased, which is 2,700 square feet. The big project is the 1,200-square-foot loft. The upgrades include the fire suppression system, a new roof, electrical,plumbing,façade,and cosmetic enhancements.They have also made it ADA accessible with the bathroom, egress, and entrance to the building. Their timeline for the entire project is 18 months. They want to complete the first floor within a month or so. The total project cost is $537,000 from start to finish. They have requested a little over $88,000 for the fire alarm and suppression system. The big ticket item is running the six-inch line across Indiana. The cost has significantly increased over the last four or five years, and there are not many people in town who are qualified and can do an underground fire line. This project supports strategic planning by leveraging public-private partnerships creates additional living space, desperately needed WF4BSTC Minutes Page 3 of 6 10.13.2022 downtown, and adding a sprinkler system to even the bottom floor opens up the use of the building. The building can then become almost any kind of business. Mr. Hatcher asked Mr. Melton for the square footage measurements of the building. Mr. Melton stated again that the entire building is about 4,000 square feet. The downstairs is 2,700 square feet, and the upstairs is approximately 1,200 square feet. Mr. Hatcher asked if it was as deep into the alley as the neighbors. Mr. Melton stated that yes, it was. He noted that it was about 150 feet deep,and the loft area was roughly 60 feet deep.The loft is on the backside of the building and overlooks the park. Mr. Fidelie asked if there was an elevator requirement. Mr. Melton said there was no elevator requirement for residential. He also stated that they had added a stairwell and a door that exits directly outside. Mr. Fidelie asked what type of residential unit it would be, condo, apartment, or Airbnb. Mr. Melton said they were not sure yet but would like to do a live-work unit. Whatever the market calls for is what they will do. Mr. Fidelie then asked if their old bank building was used as an Airbnb.Mr.Melton said that they specifically bought it to rent to traveling nurses. They have done both, and it has been successful. Ultimately, they will continue to do whatever is the most financially advantageous. Mr. Fidelie stated that the ultimate goal of the 4B Board is to have people downtown, so it makes no difference whether it's an Airbnb or a permanent residence. Mr. Melton said it takes local people willing to invest their time and money into downtown. Mr. Fidelie closed the public hearing at 9:17 a.m. 6. Public hearing regarding a funding request from Restoring the Past, LLC, to assist in mechanical, electrical, and plumbing upgrades as part of the renovation of the existing building at 604 7th Street downtown. Mr. Fidelie opened the public hearing at 9:17 a.m. Mr. John Dickinson introduced himself to the Board and stated that he represents Restoring the Past,LLC. He introduced the project and said that it was unique. He described some of the buildings in the 7th Street area, the Keller Building, the Toodles Building, 614 7th Street, and 604 7th Street. He believes these buildings are the oldest downtown. He said they do historical restoration, which is their intent with this project, and turn it into retail space. He stated that Syd Littiken, the architect on the job, was with him. He said the building was built in 1894 and contributed to the Depot Square area. The mechanical, electrical, and plumbing are roughly 10% of the project. The cost for that might be a little high for small square footage, but it is because we have to do underground electrical. Oncor no longer wants lines over other buildings going to your property. There is a three-foot alleyway in between. Because it is so narrow, it will have to be hand-dug. He said it is a great building and will look fantastic. Mr. Fidelie asked what the timeline would be for this project. Mr. Dickinson said they are thinking six months. Mr. Fidelie closed the public hearing at 9:21 a.m. 7. Discussion and possible action related to the maximum grant amount as part of the Corporation's Downtown Improvement Grant Program. WF4BSTC Minutes Page 4 of 6 10.13.2022 Mr. Menzies stated that Mr. Hatcher mentioned that it might be a good idea to discuss the maximum matching amount for the Downtown Improvement Grant Program because of the inflationary costs over the last year. Mr. Menzies reminded the Board that it supports up to $5000 match on specific improvement and restoration projects in the core of downtown. He gave two examples of improvement projects that were approved on the consent agenda. The total project cost for 816 Indiana was $16,500, and the total for 817 Ohio was $8,000. If not for the $5,000 cap,the projects would have had a higher match. He asked the Board if it would be appropriate to possibly increase the maximum amount from$5,000 to some other number. Mr. Fidelie stated that he has personally talked with several people involved in downtown redevelopment, and they say this program is incredibly helpful to those small projects. He said he was personally in favor of raising the maximum. Mr. Schreiber asked if there was a yearly maximum given with this program. Mr. Menzies stated that the Board budgets $100,000 for the program. He said they had gotten close to hitting that amount but had not yet hit it. If the Corporation hits that$100,000 mark,the Board could allocate more money to the program with a budget amendment. Mr. Menzies said that he included the grant guidelines in the application packets, and each address is eligible for the grant once per year. Mr. Fidelie asked Mr. Menzies if the recipient had to spend$10,000 to get the maximum amount. Mr. Menzies said this is reimbursement,and the recipient must prove that the project was complete, get the permits, and provide all the receipts on the money spent. Mr. Fidelie stated the recipient receives$0.50 on the dollar up to$5,000. Mr.Menzies confirmed that and reiterated that everything is a reimbursement.Nothing is given upfront. Mr. Fidelie stated that if the Board does decide to raise it,they could evaluate it for a year, and then they could always go back and change it. They are not mandated to do it in perpetuity. Mr. Hatcher stated that he believes the ultimate goal would be that once downtown is revived enough,there wouldn't be a need for this assistance. Then Mr. Hatcher asked if sidewalks and concrete assistance. Mr. Menzies stated sidewalks had been a part of the program for three or four years. Mr. Hegglund directed Mr. Hatcher's attention to the section that includes hardscapes. Mr.Hegglund then stated there are some projects helping with those particular items. Mr. Hatcher said that he thinks it is critical to fix those things. Mr. Menzies clarified that the Board would be voting to amend the language that states, "the 4B Sales Tax Corporation will match 50% of the cost of the project not to exceed $5,000." Mr. Fidelie said the Corporation has a healthy fund balance, and they are not married to the number forever, so he would like the amount increased to $12,500. The feedback he has gotten from people who have spent their money downtown is that this project is worthwhile.Mr.Hatcher stated this would help something like an awning or esthetics, but it probably wouldn't build a wheelchair ramp. Mr. Menzies said through the program that electrical work is done, and new roofs are constructed. Mr. Schreiber asked if there was any kind of historical data on the average total cost of these projects and how many times they've maxed out the $5,000. Mr. Menzies said he did not have that information, but he could certainly do an analysis if the Board would like before making a decision. Mr. Menzies said that,on average,the projects would be at the cap. Mr. Hatcher asked that staff makes sure recipients are getting competitive bids. Mr. Menzies stated that the recipients are paying the amount upfront, so they want to keep it as low as possible. The Board discussed how this maximum amount was set up to streamline the more minor requests, so not everyone would have to go before the Board and give a presentation. Mr. Barham moved to raise the maximum Downtown Improvement Grant amount from $5,000 to $12,500. Seconded by Mr. Clark, motion carried 6-0. WF4BSTC Minutes Page 5 of 6 10.13.2022 Mr. Barham asked what the recipient would have to spend to get the maximum of$12,500. Mr. Menzies said they would have to spend $25,000. It is a 50—50 match. 8. Executive Session. Mr. Fidelie adjourned the meeting into executive session at 9:36 a.m. pursuant to Texas Government Code section 551.087. He announced the meeting back into regular session at 10:18 a.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. 9. Consider a funding request from Jerry Skelton, dba Chelsea Plaza LLC, to assist in fire suppression system upgrades as part of the renovation of the existing building at 804 Lamar Ave downtown. Mr. Leiker moved to approve a funding amount of $138,991, stipulating that the fire suppression system be sized sufficiently to support 806 Lamar with a 12-month timeline in the form of a five-year forgivable loan. Seconded by Mr. Schreiber, motion carried 6-0. 10. Consider a funding request from Cody and Shea Melton, dba S&A LLC,to assist in fire suppression system upgrades as part of the renovation of the existing building at 816 Indiana downtown. Mr. Fidelie moved to approve a funding amount of$69,556,provided that a certificate of occupancy is issued within 12 months of the execution date of the contract in the form of a five- year forgivable loan. Seconded by Mr. Clark, motion carried 6-0. 11. Consider a funding request from Restoring the Past, LLC, to assist in mechanical, electrical, and plumbing upgrades as part of the renovation of the existing building at 604 7th Street downtown. Mr. Barham moved to approve a funding amount of$22,350 provided that a certificate of occupancy is issued within 12 months of the execution date of the contract in the form of a five- year forgivable loan. Seconded by Mr. Clark, motion carried 6-0. 12. Adjourn. Mr. Fidelie adjourned the meeting at 10:21 a.m. r., President le5u L, V. P. WF4BSTC Minutes Page 6 of 6 10.13.2022