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4B Sales Tax Corporation Minutes - 11/03/2006t 4 Present: MINUTES OF THE 4B SALES TAX CORPORATION November 3, 2006 Warren Ayres, President Leon Mallonee, Vice - President Darron Leiker Ray Gonzalez Bob Seabury Alan Donaldson Randy Schaffner Matt Benoit, Assistant City Manager Linda Merrill, Recording Secretary 1. Call To Order § Corporation Board Members § City Staff President Warren Ayres called the meeting to order at 8:15 a.m. 2. Discussion on Taxable Bonds Matt Benoit noted that it was originally presumed the bonds for the golf course and for TIF would be non - taxable bonds. The interest rate is better for such bonds. However, Finance Director Jim Dockery was informed by bond counsel that the use of a management agreement for the golf course could jeopardize the non - taxable status of the bonds. Non - taxable bonds are more restrictive, and will not allow for revenue sharing, which would be desired under a management agreement. They would limit management agreements for the next 20 years. The annual debt service for the bond issuance was estimated at approximately $567,000. Switching to taxable bonds for the golf course would increase that amount approximately $33,000 per year. Darron Leiker stated that Mr. Dockery was told one could almost guarantee an IRS audit if tax - exempt bonds are issued and a management agreement is in effect. The only way to enter a clean third -party agreement is to have a no- revenue - sharing clause. That would require the City to pay a management company a certain amount, whether or not money is made at the course. Mr. Benoit noted that four qualified firms responded to the City's proposal for a third -party manager. These companies range from small businesses to heavy hitters in t46 Minutes — November 3, 2006 the industry. All the companies are involved in municipal leases, and understand it will be a revenue sharing operation. Mr. Schaffner noted the additional $33,000 could be offset in the initial agreement or through cash flow. He asked if it might be advantageous for a lower interest rate to issue the bonds. Mr. Leiker noted the City would rely on its financial advisors, Murphy Davis and Century Management, to decide when to issue the bonds. Leon Mallonee asked if the City had decided to go with a third -party manager. Mr. Benoit replied that it had not yet made a decision. Mr. Schaffner asked what companies had responded. Mr. Benoit noted that EAGL, the Blanton Group, Eagle, and Tom Sweeney of River Creek, had submitted proposals. Eagl had a management agreement with the City at one time. However, the company and the corporate structure have changed since that time. It has a management agreement with Carrollton. Eagle has some PGA experience; Blanton enjoyed a successful golfing career. Each company will be interviewed, and Mr. Benoit will visit courses with which these companies have agreements. Mr. Ayres asked if two sets of bonds would be issued. Mr. Leiker replied affirmatively, noting that the only taxable bonds would be for the golf course; non- taxable bonds would be issued for TIF. 3. Consider Approval of Bond Project Agreement Mr. Ayres noted that this agreement requires the 4B Board's approval of issuance of the bonds, and the Board will guarantee the payments. Mr. Benoit noted that Jim Dockery and City Attorney Bill Sullivan have reviewed this agreement extensively. Mr. Mallonee moved, seconded by Ray Gonzalez, that this agreement be approved. The motion carried unanimously. Mr. Mallonee asked if the golf course committee is being advised on the status of this project. Mr. Benoit stated he would be happy to call the group together when the design of the course is completed. 4. Discussion on World War I Airplane Purchase and Renovation Bob Seabury noted that present -day Call Field Road was the site of an airbase in 1917 -1919. Airmen trained in Curtiss Jenny planes. Wichita Falls has nothing to commemorate that time. During World War II, there were hundreds of air bases that taught airmen how to fly. In World War I, however, there were only five air bases in Texas, and one in Ohio. A man in Indiana has a Curtiss Jenny for sale for $350,000. Mr. Seabury would like to see the plane purchased for use in a living museum at Kickapoo Airport. The museum could also include a car from that era, and pictures of Call Field. The hangar could be lighted, and consist of one glass wall. The plane and the car could be operated on a periodic basis, to make history come alive for children in the community. • �413 Minutes — November 3, 2006 3 Mr. Schaffner noted that a building from the Call Field airbase still remains, behind the former post office on Call Field Road. Mr. Seabury noted that it is a former horse stable. There is a historical marker, but very few citizens are aware of this history. He performed research at Kemp Public Library and the MSU Library and put together a booklet of information. Mr. Seabury stated he has received words of encouragement from Tim Chase, Darron Leiker, and Lanham Lyne. In addition, others have noted they would be able to provide some level of financial aid. Mr. Ayres noted that while the idea has merit, he feels it should initiate with a group such as the Historic Museum. They would have an organization put together that would have the resources to make something like this work. Randy Schaffner noted that the Ridenours have a working motor from such a plane. He added that Bill English is deeply involved in the history of Call Field airbase. Mr. Seabury stated he has spoken with Mr. English, but they did not discuss the issue of sponsorship. Mr. Ayres stated that he did not see the City being the plane's owner. Mr. Leiker agreed, stating it would be more appropriate in the hands of a not - for - profit organization. Mr. Ayres added that the City could provide the hangar. Mr. Leiker stated the Council would have to approve the use of a hangar for this project, which brings in $350 per month for rent. It is an intriguing idea, however, and would elevate the status of Kickapoo Airport. Mr. Seabury hoped the 4B Board could allocate $150,000, contingent upon matching funds being raised. Mr. Ayres feels it is important to have a more definite plan in place. Mr. Ayres suggested that Mr. Seabury contact Barry Macha or Doug James of the Historic Museum, as they are the most active in the group. Mr. Seabury fears the plane will be sold before he can get organized. The owner is holding it for him for a reasonable amount of time. He will speak with Mr. English again. He knows of no other city that has such a memorial to World War I. Texas Monthly would say good things about the city. 5. Adjourn The meeting adjourned at 8:50 a.m. Warren T. 4res President