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4B Sales Tax Corporation Minutes - 06/07/2024 MINUTES OF THE W ICHITA FALLS 4B SALES TAX CORPORATION (WF4BSTC) JUNE 7, 2024 PRESENT: Tony Fidelie, President § WF4BSTC Members Glenn Barham, Vice-President § Darron Leiker § Dave Clark § Nick Schreiber § Craig Reynolds § Tim Short, Mayor § Mayor & City Council Tom Taylor, District 5 Councilor § R. Kinley Hegglund, Jr., City Attorney § City Staff Paul Menzies, Assistant City Manager § Blake Jurecek, Assistant City Manager § Stephen Calvert, CFO & Finance Director § Terry Floyd, Dir. of Developmental Svcs § Karen Montgomery-Gagne, Principle Planner § Chris Horgen, Public Information Officer § Paige Lessor, Executive Legal Assistant § Henry Anderson, Intern § Will Kelty, Owner § 713 Indiana, LLC Jennica Lambert, Executive Director § River Bend Nature Center Lynn Walker, Writer § Times Record News ABSENT: Michael Mills, 4B Member § 1. Call to Order. Mr. Tony Fidelie called the meeting to order at 12:04 p.m. and, due to time constraints, moved to item number five on the agenda first. 5. Public hearing regarding a request from Will Kelty, dba 713 Indiana LLC, for an extension and potential amendment of the existing agreement related to the demolition and reconstruction of the building at 713 Indiana Street downtown. Mr. Fidelie opened the public hearing at 12:05 p.m. Mr. Paul Menzies introduced this item to the Board and described the project involving the demolition and redevelopment of the building at 713 Indiana. Mr. Will Kelty took on this project in 2021 with the Board's agreement to fund half of the demolition costs under certain conditions. The funding was divided into three stages: $83,000 upon completion of demolition, another $83,000 when a full building permit was issued, and the final $83,000 when a viable retail or similar business was established in the space. The project has been successful so far due to the board's leadership, but Mr. Kelty has encountered some timing and economic issues. Mr. Kelty thanked the Board for accommodating him and mentioned a family commitment as to why he could not delay his flight from Wichita Falls to California. Mr. Kelty expressed WF4BSTC Minutes Page 1 of 6 6/7/2024 gratitude for the Board's ongoing support and collaboration with him, specifically with various projects such as the City Center Apartments, The Kate, and the 713 Indiana project. Mr. Kelty described the initial state of the 713 Indiana building, noting it was in a dilapidated condition, with structural issues making it unsafe to enter. He discussed the challenging nature of the demolition due to the instability of the building and the presence of asbestos, among other issues. Initially, the plan was to demolish the building, but after discussions with the City, it was decided to restore it instead. Mr. Kelty presented photos and described the façade from the 1960s that hid the underlying structure. He detailed the obstacles faced during the restoration, including delays due to COVID-19 and issues with contractors, which extended the timeline. As of October (last year), the building reached a "white box" status, meaning it was leasable. Mr. Kelty described the interior, including new bathrooms, air conditioning, a new roof, and foam insulation. Despite the building being ready for lease in October, he was unable to find a tenant by the December deadline, a condition for the funding. To meet this requirement, Kelty submitted plans for a placeholder art gallery to show the building as active and not derelict. Mr. Kelty requested the Board extend the timing condition as the building has been stabilized and is no longer a hazard. He emphasized the collaborative goal of revitalizing the space and mentioned his continued efforts to find a tenant despite not controlling the demand for retail space. Mr. Menzies suggested two options for the Board to consider: either grant an extension for him to secure a viable retail tenant generating sales tax or recognize that he has a Certificate of Occupancy (Co) for the existing space and decide if this meets the original intent, thereby approving the remaining $83,000 payout. Mr. Leiker asked if the issuance of a CEO triggers the final payment. Mr. Menzies explained that the viable business of a retailer is what triggers the final payment. Mr. Menzies asked Mr. Kelty to tell the Board how large the space is. Mr. Kelty said that it measures about 7,000 square feet, and there is an option to build out a second floor. Mr. Schreiber then inquired as to the current readiness for potential retail tenants. Mr. Kelty explained that the space has electricity and air conditioning and is airtight and watertight. Mr. Fidelie acknowledged the significant improvement and effort made by Mr. Kelty in revitalizing the property. Mr. Kelty further explains and describes the photos of the space to the Board. Mr. Schreiber then asked for clarification regarding "retail or like establishments." Mr. Menzies stated that it could be any establishment that is generating sales tax. Mr. Kelty thanked the Board for its support and the opportunity to present first due to his personal commitments. Mr. Fidelie closed the public hearing at 12:17 p.m. 2. Report of financial condition (current, past & planned budget& expenditures); and other administrative actions Mr. Menzies reported that sales tax revenue is about 2% lower than the previous year but explained that last year's revenue was unusually high, and the current decline may indicate a return to normal levels. This minor dip in sales tax revenue has little impact on the Board's overall financial health, as increased interest earnings compensate for the shortfall. The Board currently has approximately $9.3 million available for new projects, which is double the amount from the previous year, highlighting the positive impact of accumulated sales tax and interest payments on their financial position. 3. Consent Agenda WF4BSTC Minutes Page 2 of 6 6/7/2024 a) Approval of Minutes of February 13, 2024. Mr. Schreiber moved to approve the minutes. Seconded by Mr. Leiker and following no public comment, the motion carried 6-0. b) Approval of Downtown Matching Grant Applications: 1115 Lamar, 900 8th St, 912 8th St, 814 Indiana Ave, 617 7th St, 522 Ohio, 710 Lamar (Phase I & II), 701 Indiana Ave, 600 6th St, 719 Scott, 806 Travis (Phase I), and 813 8th St. Mr. Clark moved to approve the listed Downtown Matching Grant Applications. Seconded by Mr. Leiker and following no public comment, the motion carried 6-0. 4. Public hearing regarding a funding request from River Bend Nature Center to support a forthcoming renovation of their current facility in Wichita Falls. Mr. Fidelie opened the public hearing at 12:21 p.m. Mr. Menzies informed the Chair that Mr. Schreiber would step away due to a conflict of interest. Mr. Menzies also stepped away and did not participate in the executive session because he is on the board of RBNC. He clarified that when the application was submitted, it was directed to Mr. Fidelie, who asked for it to be included on the agenda. Mr. Fidelie acknowledged this and noted that Mr. Hegglund advised Mr. Menzies that he was not required to step away, but Menzies chose to do so out of caution. Ms. Jennica Lambert, RBNC Executive Director, introduced herself and addressed the Board. Ms. Lambert presented an overview of the organization and its upcoming projects. RBNC was founded in 1991 and aims to connect people to North Texas's natural world through educational programs and tours. Since its inception, it has educated over 100,000 people and is the top attraction in Wichita Falls. The center attracts visitors from all 50 states and over 40 countries, generating over $3.79 million in economic impact in 2023. RBNC's current focus is on renovating its aging facilities, including the conservatory's roof and terrace. The center is planning a multi-phase renovation to address drainage issues, roof leaks, and the need for updated exhibits. The project will also involve adding new features and improving the space's functionality and sustainability. The three phases of the project include: Phase 1A—J.S. Bridwell Terrace Drainage • Remove all existing crushed granite, replace with concrete • Replace trench drains • Repair Drainage at the retaining wall by adding two new drainage pipes and rip rap • Add fence to separate the public from maintenance areas Phase 1 B — Ruby N. Priddy Conservatory • Remove all existing roof glazing panels and the supporting aluminum framing system • Add new standing seam metal roof with rigid insulation on metal roof deck • Add new gutters and tie into existing drainage • Clean both the inside and outside glass and steel structure • Install new ceiling fans • Find and repair plumbing leak • Remove existing resinous soil pathway and replace with new surface • Replace Existing tube lighting WF4BSTC Minutes Page 3 of 6 6/7/2024 • Replace existing condensing unit • Pave two existing beds to allow for new hands-on exhibits Phase 2 — J.S. Bridwell Terrace Play Area • Remove retaining wall sections to increase footprint • Add new site pavement to these exposed sites • Add new retaining wall where required • Add structural foundations for equipment and shade devices • Provide exterior lighting • Restore water connections to terrace beds • Add new poured-in-place rubber playground flooring The total cost of the project is $2.1 million, with $96,000 raised so far, additional pledges, and a potential $1 million in verbal commitments. The bidding process for construction is ongoing, with work expected to start at the end of June. Public input is being sought through surveys on their website and social media. Mr. Leiker inquired about a caveat that would require a matching donation. Ms. Lambert stated that there were no strings attached to the pledge. Mr. Clark asked Ms. Lambert to clarify what RBNC's specific request was. Ms. Lambert stated that the RBNC is requesting $210,000, which is 10% of the total project. Mayor Short asked Ms. Lambert what specific things would be added to make RBNC more relevant. Ms. Lambert stated that the center had recently made additions to the children's garden, including a mud kitchen and a cedar playhouse. They will also be installing a wind tube and a self-circulating water table. The goal is to create engaging, hands-on experiences similar to those at larger children's museums in Dallas, Fort Worth, and Oklahoma City, but locally. The focus is on offering both general admission and educational programming that align with their mission and serve overlapping community needs. Mr. Fidelie closed the public hearing at 12:32 p.m. 6. Public hearing regarding a funding request from the City of Wichita Falls related to the potential purchase of property at 100 Central East Freeway. Mr. Fidelie opened the public hearing at 12:33 p.m. Mr. Menzies discussed the project related to acquiring property containing the derelict hotel adjacent to the riverfront and the falls. He reminded the Board and the public that last November, the WF4BSTC and the City Council used the legal process of eminent domain to acquire this property for the purpose of developing the riverfront into public park space. He also reminded everyone that the City owns the RV park in the area and the City purchased the property next to the RV park. He explained to the Board that during the eminent domain process, a three-person commission determined the property's value to be $750,000. He stated that the amount plus some legal and surveying fees would be the request to the Board. He said they would discuss the amount and legal updates in the executive session. Mr. Fidelie asked if any member of the public wished to address the board on this item. Mr. Fidelie closed the public hearing at 12:35 p.m. 7. Consider and take action to amend the corporation's fiscal 2024 annual budget related to the annual Downtown Improvement Grant Program. Mr. Fidelie opened the public hearing at 12:35 p.m. Mr. Menzies reminds the board about the details of the Downtown Improvement Grant Program, which has an annual budget of $100,000 and provides financial support to WF4BSTC Minutes Page 4 of 6 6/7/2024 downtown property owners for building improvements or regular maintenance. The program matches up to 50% of the project cost, with a maximum grant of $12,500. For example, for a $5,000 project, the grant would be $2,500. For a $30,000 project, the grant is capped at $12,500. The program has been very successful this year and has already exceeded its budgetary authority. Mr. Menzies provided a list of active and recently closed projects which exceeded $100,000. There are also lists of projects on hold pending additional budget authority and those anticipated to be paid this year. Mr. Menzies proposed to increase the spending authority from $100,000 to $250,000 for the current year and suggested budgeting $250,000 for the upcoming fiscal year. Mr. Fidelie noted that in October 2022, the maximum amount of funding was increased from $5,000 to $12,500. Mr. Leiker moved to authorize an amendment to the current year's budget to increase the Downtown Improvement Grants Program line item from $100,000 to $250,000. Seconded by Mr. Barham and following no further public comment, the motion carried 6-0. 8. Executive Session. Mr. Fidelie adjourned the meeting into executive session at 12:41 p.m. pursuant to Texas Government Code sections 551.087, 551.071, and 551.072. He announced the meeting back into regular session at 1:25 p.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. Consideration of a funding request from River Bend Nature Center to support a forthcoming renovation of their current facility in Wichita Falls. Mr. Fidelie made a motion that WF4BSTC enter into a performance agreement with River Bend Nature Center to provide funding in an amount not to exceed $210,000 to support the forthcoming renovation of their facility for a term not to extend more than 24 months and to be paid upon RBNC providing proof that$2 million had been raised for the project. Seconded by Mr. Clark, following no public comment, the motion carried 5-0. Mr. Schreiber abstained from the vote. 10. Consideration of a request from Will Kelty, dba 713 Indiana LLC, for an extension and potential amendment of the existing agreement related to the demolition and reconstruction of the building at 713 Indiana Street downtown. Mr. Reynolds moved to enter into an extension agreement with Will Kelty, dba 713 Indiana LLC, not to extend beyond December 31, 2025. Seconded by Mr. Schreiber, following no further public comment, the motion carried 6-0. 11. Consideration of a funding request from the City of Wichita Falls related to the potential purchase of property at 100 Central East Freeway. Mr. Leiker moved that the Board authorize a performance agreement with the City of Wichita Falls in an amount not to exceed $835,000 related to the purchase of property at 100 Central East Freeway for the purpose of a public park. Seconded by Mr. Clark, following no further public comment, the motion carried 6-0. 12. Adjourn. WF4BSTC Minutes Page 5 of 6 6/7/2024 No further discussions took place, nor actions taken. Mr. Fidelie adjourned the meeting at 1:29 p.m. Guy A. "To " Fidelie, Jr., President WF4BSTC Minutes Page 6 of 6 6/7/2024