TIF #1 Board of Directors Minutes - 06/25/2003 Tax Increment Financing Boar RECEivED IN 'm
CITY CLEf�K'S tiFFICE
MINUTES Date PA-
June 25, 2003 By Time Gt_SS ,
Members:
Debbie White, Chairman
Ben Filer
Al Flack
David White
James Welburn
City:
Bill Altman, Mayor
David A. Clark, Director of Community Development
Bill Sullivan, City Attorney
Karen Montgomery-Gagne
Others Present:
Visions — Bill Barnard, Dennis Cannedy, Vickie Crump, Guy Dunn, Rowena Jackson, Jim
Johnson, Wayne Hansen, Jeannie Hilbers, Diane Walser
Iron Horse —John Dickinson, Andy Lee
LaSalle — Christy Graham, Rick Graham
I. Minutes
Mr. Filer moved to accept the minutes from November 6, 2002. This motion was seconded by
Mr. Welburn. The minutes were approved as submitted.
II. Financial Status
Mr. Clark explained the TIF fund status, concluding that there was a balance of $80,232 that
could be allocated. (Attached) He explained the progress of the Holt Hotel and provided
information on TIF expenditures for that project. Bundy, Young, Sims, Potter, architects, is
very near the completion of construction documents. In response to a question by Mr. Flack, it
was explained that contract documents indicate that services through the bidding phase will
cost $240,000. As the project moves ahead, it would be anticipated that a TIF bond would be
issued, which could free cash that has been committed. If the project does not continue, then
$260,000 will become unobligated. Either way the fund should gain cash. Tax income to the
fund, received annually in May, was approximately $205,000.
Ill. Requests for Funding
Ms. White suggested a format to hear presentations and complete discussion on potential
funding recommendations after hearing from all of the applicants.
TAX INCREMENT FINANCING BOARD JUNE 25,2003 PAGE 1 OF 3
Visions
Mr. Jim Johnson, President of Visions presented information about the Visions organization, its
status, finances, staffing circumstances, events, and accomplishments. He noted that Ms.
Vicky Crump had been selected as the new director. She is scheduled to begin as soon as the
determination of funding is established. In response to a question by Ms. White, Mr. Dennis
Cannedy further explained the two related corporations, a 501 C 3 and a 501 C 6.
The Board had numerous questions about membership, future funding, other funding sources,
and operations. Ms. White posed a question about the top goals for the new director. Ms.
Crump, who has been offered that position, replied that those would be business recruitment
and retention, design components, and promotion. Mr. Filer noted the percentage of the
overall Vision's budget (81%) that would come from a grant of $50,000 or 65% if granted
$40,000.
Mrs. Rowena Jackson offered that among the positive accomplishments in the downtown has
been the increasing success of the Wichita Theater. The theater now finds that a third of its
patrons come from out of town including Oklahoma and the DFW metroplex.
Board members expressed the importance of continued efforts and quantifiable successes.
615 Eighth St. — Iron Horse Pub
Mr. Andy Lee presented information on the history of the building at 615 Eighth St., which
recently received a historical marker authorization from the Texas Historical Commission. He
also presented the request for funding in the amount of $7000, which would be joined with an
additional $7,870 to complete the reconstruction of the façade. Mr. Lee noted the very recent
expenditure of $28,000 to provide a roof and interior changes to a portion of the building. The
assessed valuation of the property has just been raised by more than $10,000.
Mr. John Dickinson, owner, distributed photos and explained more of the details about the
potential design of the storefront. Looking under the previously revised façade they
discovered the original pilasters, which they expect to incorporate with the façade
rehabilitation.
530 Seventh St. — LaSalle Apartments/ Studio Hotel
Mr. Rick Graham presented information on the LaSalle Crossing Apartments at 530 Seventh
St. He noted that they originally purchased the building for $30,000 and, after the
improvements they have made, the property was recently assessed at $340,000. He
distributed photos to show the intended changes to the exterior of the building, principally to
include two permanent awnings or mansards and new storefronts.
Mr. Clark distributed copies of text from Chapter 311 of the Tax Increment Financing Act and
from the "Detailed Goals" within the Project Plan. He reviewed how the staff, Board, and
Council had traditionally interpreted eligibility and operated TIF projects. Ms. White expressed
her concern about departing from traditional practices in a time when funding availability is
limited.
Mayor Altman commended the Board members and indicated trust in the analysis of the Board
to guide future direction of the TIF program. Mr. Clark noted that discussion with the City
TAX INCREMENT FINANCING BOARD JUNE 25,2003 PAGE 2 OF 3
Attorney confirmed latitude for a variety of projects. Mr. Lee offered a suggestion about
funding over time. The Board then discussed the merits and challenges of the projects.
Mr. White made a motion to recommend an amount not to exceed $40,000 be granted to
Visions, seconded by Mr. Filer. Discussion about timing concluded that the hope and intent
was that the funding begins July 1, 2003. The motion passed unanimously. The Board
repeated that they wish to see regular progress reports.
Mr. White made a motion to recommend a grant of $7,000 for the improvement of the façade
of the Iron Horse Pub at 615 Eighth St., seconded by Mr. Welburn. The motion passed with 4
in favor and 1 opposed.
Consideration was given to the request for funding for the LaSalle Crossing Apartments at 530
Seventh St. The Board expressed support for the project, but did not feel that they were in a
position to recommend the award of funds that are not currently available. The consensus was
to take no action.
IV. Adjournment
The Board adjourned at 5:00 p.m.
DEBBIE WHITE, CHAIRMAN DATE
TIF Fund Status
6/03
$300,000 has been allocated for the Holt Hotel, which is now under contract with Bundy,
Young, Sims, Potter for architectural design. $240,000 would be spent to complete the work
through bidding. The remainder will only be spent as the project proceeds.
$40,000 was awarded to Visions for staffing and operational assistance. With the resignation
of the director, Visions had formally notified the City of their intent not to bill while a search was
underway for a new director. The remaining balance is then $16,667.
$105,000 has been allocated as an annual payment towards a bond for the Coliseum.
$263,565 is the unencumbered fund balance.
$200,000 has been implied for future funding on the Holt.
$63,565 + $16,667 = $80,232 could be available for allocation.
Note: TIF income from taxes in May, 2003 was $204,668. Additional income is from interest
($3,997).
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