TIF #1 Board of Directors Minutes - 12/19/2001 r
Tax Increment Financing Board RECEIVED IN
CITY CLERK'S OFFICE
MINUTES ( _� � -a (
Date
December 19, 2001 By fze,
Time D /y�
Members:
Ben Filer, Chairman •
David White •
Debbie White •
Al Flack •
James Welburn •
Staff:
David A. Clark, Director of Community Development •
Lin Barnett, Planner II •
Guests:
Jim Berzina, City Manager •
Andi Holland, Wichita County Heritage Society •
Dr. Robert Allen, First United Methodist Church •
Shirley Craft, Visions •
Wayne Hansen, Visions
I. Introduction
Mr. Filer called the meeting to order at 3:12 p.m. and asked for introductions around the room.
II. Approval of Minutes
Mr. Welburn made a motion to approve the July 25, 2001 minutes. Ms. White seconded the
motion and the minutes were passed by unanimous vote in favor.
III. Report on the Status of the TIF Projects.
Mr. Clark reported the current status of the TIF fund as follows: (1) expected future revenues
should be approximately $175,000 annually; (2) there continues to be an annual obligation to
the Coliseum of $105,000 made in two equal payments throughout the year; (3) annual
discretionary funds are projected to be $70,000; (4) the TIF fund balance was $481,304 as of
September 30, 2001 with a total of $76,485 in remaining commitments, leaving an
uncommitted budget balance of$404,819.
IV. Open Discussion and Motion to Award Funds for Completion of Development and
Bidding Phase of Holt Plans Contingent Upon Certain Conditions.
Mr. Clark discussed the ongoing progression to initiate an adaptive reuse of the Holt Hotel.
Mr. Clark stated that the feasibility study was complete and approximately $1.1 million in
commitments has been attained from various foundations and $500,000 from a federal
TAX INCREMENT FINANCING BOARD ,December 19,2001 PAGE 1 OF 1
Economic Development Incentive. A single purpose corporation, involving the Wichita County
Heritage Society, the National Development Council, and tax credit purchasers, will be set up
for the Holt. $500,000 is being requested from TIF. The project is expected to generate
approximately $45,000 per year in taxes, increasing overall annual TIF income to roughly
$223,000. The remainder of the funding is anticipated to come from CDBG, additional
contributions, historic preservation tax credits, and a bank loan.
Up to $300,000 is being requested to facilitate the development of architectural plans to
facilitate bids. This will determine the detailed financial amounts. Mr. Clark explained there
would be some risk because the project cannot then go forward without all of the other fund
sources.
Mr. Flack voiced concerns about the organization being the only entity at risk concerning
expenditure of funds, and also the time frame expected for the project. Mr. Clark explained
that project could start in early summer 2002, with the final TIF money being paid as late as
spring of 2003.
Further discussion centered on bank commitment to the project. Mr. Clark stated that two
banks have shown interest and that one will most likely take the deal. Mr. White expressed
concern that the project might become nontaxable; Mr. Clark stated that it would not.
Expressions were also made and consensus established, that there should be a requirement
that the property be in the hands of the Heritage Society before any funds were distributed.
Ms. Holland confirmed that the Wichita County Heritage Society has given formal approval to
the project and that her board is excited about the potential the project brings to the downtown
area. Ms. Holland assured Ms. White that the WCHS is ready to meet the challenge of raising
funds for the project.
Mr. Clark informed the Board that the Holt project was in conformance with the TIF Project
Plan and, in fact, is one of the specifically mentioned goals. It will have, however, a major
effect on available TIF funds. Mr. Flack stated that because of the Holt project, other
downtown projects would probably have to wait.
Mr. White inquired as to how property tax values would be set. Mr. Clark responded that they
would likely be established through an income approach. He noted that he had spoken to the
Appraisal District to confirm taxing expectations.
A motion was made by Mr. Filer, and passed by all present, to recommend that $500,000 be
awarded to the Holt project subject to the following conditions:
1. Payment is not to exceed $300,000 for architectural plans completion during the
initial development and bidding phase.
2. Transfer of title to the Holt shall pass to the Wichita County Heritage Society prior to
expenditures of such funds.
3. The remainder of funds shall be made available to the project upon completion of
other funding commitments for construction.
4. Final funding (beyond the $300,000) will be made available as TIF receives
additional revenue.
TAX INCREMENT FINANCING BOARD ,December 19,2001 PAGE 2 OF 2
V. Request for TIF funds by the First United Methodist Church
Dr. Robert Allen informed the Board that he would postpone his petition for TIF funds for
the church's parking lot until the summer of 2002.
VI. Report from the Downtown Coordinator
Ms. Craft introduced Mr. Wayne Hansen as Chair of the Downtown Committee and then
proceeded to inform the Board of the widespread support she has received from the
media and others in the community concerning the downtown area. Ms. Craft stated
that all financial reports were current, payroll taxes were being paid, and that archives
were being kept.
Ms. Craft noted that a change in look and logo has been initiated for Visions
publications and communications. The Downtown Proud campaign was launched, as a
result, and has received good response thus far. Ms. Craft stated that the City Lights
program has met with great success and that 80 buildings are lit in the downtown area.
Ms. Craft discussed one or two major upcoming events and how many interviews and
stories have been done recently on downtown Wichita Falls. Ms. Craft also informed
the Board about the upcoming downtown website and the content that will be available
for visitors; furthermore, she has been receiving a number of phone calls involving
interest in the downtown area. Mr. Clark mentioned that Ms. Craft has made many
contacts with potential investors for further downtown development.
Ms. Craft reminded everyone of the phrase coined by Ms. Holland, "Downtown is the
Face of Our City."
VII. Other Business
Mr. Berzina expressed his support for the Board action on the Holt. The Board needed
to be risk takers because this is a very important project. If the project should not move
to completion the risk will still have been worth taking, since it is the only way it could
proceed.
VIII. Adjournment
The board adjourned at 4:30 p.m.
BEN FILER, CHAIRMAN DATE
TAX INCREMENT FINANCING BOARD ,December 19,2001 PAGE 3 OF 3