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TIF #1 Board of Directors Minutes - 12/12/2000 (../c.u.)._e_ LA) - Tax Increment Financing Board RECEIVED IN -- CITY CLERK'S OFFICE MINUTES Date December 12, 2000 By RC,. Time Ben Filer, Chairman • MEMBERS David White ♦ Debby White • Al Flack ♦ James Welburn ♦ David A. Clark • STAFF Visitors attending this meeting: Smith Walker, Visions; Marvin Groves, Ill, Visions; Wayne Hansen, Visions; Andy Lee, Visions; Larry Huff, Visions; Jim Pettijohn, Visions; Rowena Jackson, Visions; Jeannine Oliver, Visions; and Andi Holland, Visions/Wichita Co. Heritage Society. I. Approval of Minutes — June 19, 2000 Meeting After a motion and second to approve the minutes as submitted, they were passed with a unanimous vote. IL Budget Report Mr. Clark gave a report on the status of the TIF account by stating the current balance is $226,335 excluding a commitment to the Coliseum of $250,000 for a one-time payment. The annual revenue is $230,000 which is an increase of approximately $100,000. The unallocated annual income, after a tentatively approved commitment for a bond for the coliseum at $105,000 per year, is approximately $125,000. III. Funding Request North Texas Visions and Downtown Wichita Falls Development, Inc. Request a Three Year Commitment of$50,000 Annually. North Texas Visions of Wichita Falls, Inc. (a 501(c)(6) corporation) and Downtown Wichita Falls Development Inc. (a 501(c)(3) corporation) request a three year $50,000 per year commitment from tax increment funds for the purpose of underwriting a portion of the $79,500 per year operating budget projected for the next three years to implement the goals and objectives established at the Downtown Goals conference. Specifically, $35,000 for programs administration (Downtown coordinator), and the remaining $44,500 for marketing and economic development. Mr. Clark gave a brief description of the request before introducing Mr. Wayne Hansen, president of Visions. Mr. Hansen stated an agreement has been obtained from the Heritage Society to share office space and to coordinate efforts in the downtown area. TAX INCREMENT FINANCING BOARD December 12,2000 PAGE 1 OF 3 Ms. White expressed concern regarding Board's requests from the last meeting for a list of current board members, the last two years' budgets, a revenue and expense statement, the specific tasks for the coordinator and a list of qualifications for that position. Further discussion resulted in Mr. Lee and Mr. Hansen commenting that the bank balance was around $30,000; pledges and donations appear to be waiting for TIF fund approval; and future commitments have been indicated from the Wichita Tower and the Bridwell Group. Mr. Clark pointed out that the reduced budget reflects the in-kind donations, such as the web site, office space, telephones, etc. He emphasized that the TIF Board has the flexibility from conditional approval to granting less than the requested amount. Ms. White stated she is very supportive of Visions and this project. She stressed that commitment and the ability to follow through by Visions was a concern. Mr. Hansen stated that Visions does lack business structure but that is being worked on with the Heritage Society. Chairman Filer echoed his support of this organization then commented that accountability was a concern because this Board has a responsibility to the citizens that these funds are handled properly. He further commented that the expenditure of funds and the forecasted use of funds are not sufficient for the TIF Board but, with the addition of a Coordinator, he hopes these reports will improve. He stressed that receiving public funds makes Visions accountable for the use of those funds. Mr. Welburn requested more realistic projections concerning expenditures. When asked about the Coordinator's position, Mr. Hansen replied that the previously selected applicant found other employment. Mr. Lee stressed that hiring an applicant with downtown and Main Street experience was critical. Chairman Filer suggested outlining specific responsibilities for a period of one year for the Coordinator, then as growth occurred, responsibilities would change annually. Mr. Hansen recommended several tasks, including a downtown inventory of buildings and businesses; list of properties for sale; and research programs and funding for new businesses proposing to locate in the downtown area. Mr. Flack asked about future donations. Mr. Smith Walker stated that the bank balance of $30,000 was the total of the first year of commitments for three years. Mr. Flack suggested the TIF Board award funds to match the donations to Visions with Mr. Clark recommending the funds be distributed on a monthly basis. Mr. Lee gave a history of the non-profit status of Visions with the corporation starting as a 501(c)(6) which is non-profit status for an active entity with restrictions on funding contributors. Downtown Wichita Falls Development, Inc. was then set up as a 501(c)(3) which can accept outside funding as a charitable organization. Chairman Filer made a motion to recommend to the City Council to approve funding for one year at $50,000; work with the City regarding the accountability, and, after completion of one year, the funding for the next year will be reviewed. Mr. White also proposed that quarterly financial reports be submitted to the Board; he then seconded the motion. Mr. White abstained from voting because he is a Vision board member. The vote was four (4) in favor and none (0) opposed. IV. Other Business Mr. Clark updated the Board by stating the Heritage Society completed the parking lot construction and improvements using the $30,000 awarded; the Radisson Hotel completed all TAX INCREMENT FINANCING BOARD December 12,2000 PAGE 2 OF 3 landscaping and aesthetic improvements under budget; the Railroad Museum completed the Ninth Street gates and was also under budget. Mr. Clark commented that the Holt Hotel is being explained as a fully taxable entity and could generate $40,000 to the TIF fund. That amount could be capitalized as part of the financing for the potential project. Chairman Filer reported that if the Coliseum is approved the TIF fund will be extended for the life of the bonds. V. Adjournment The Board adjourned at 4:05 p.m. BEN FILER, CHAIRMAN DATE TAX INCREMENT FINANCING BOARD December 12,2000 PAGE 3 OF 3