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4B Sales Tax Corporation Minutes - 08/01/2024 MINUTES OF THE W ICHITA FALLS 4B SALES TAX CORPORATION (WF4BSTC) AUGUST 1, 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 Bobby Whitely, Councilor at Large § 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 § Scott McGee, Recreation Services Administrator § Chris Horgen, Public Information Officer § Paige Lessor, Executive Legal Assistant § Jon Dearolf, Interim President & CEO § YMCA of Wichita Falls Dr. Stacia Haynie, President § Midwestern State University Ron Kitchens, CEO & Managing Partner § Wichita Falls Chamber of Commerce Lynn Walker, Writer § Times Record News ABSENT: Michael Mills, 4B Member § 1. Call to Order. Mr. Tony Fidelie called the meeting to order at 3:01 p.m. 2. Report of financial condition (current, past & planned budget & expenditures); and other administrative actions Mr. Paul Menzies addressed the Board and noted that sales tax revenue has been inconsistent monthly, making it difficult to predict trends. However, year-to-date revenue is only slightly down, about two-thirds of a percent compared to the same time last year, which he considers not too bad. He mentioned that despite the Federal Reserve's actions this year, the interest earnings on the city's money are compensating for any shortfall in sales tax revenue. He also provided a financial report with notes and highlighted that the city has approximately $8.6 million in available funds. 3. Consent Agenda a) Approval of Minutes of June 7, 2024. WF4BSTC Minutes Page 1 of 6 8/1/2024 Mr. Leiker moved to approve the June 7, 2024 minutes. Seconded by Mr. Clark, the motion carried 6-0. 4. Public hearing regarding a funding request from the YMCA of Wichita Falls to support the construction of a new indoor aquatics facility at the existing Bill Bartley YMCA branch in Wichita Falls. Mr. Fidelie opened the public hearing at 3:02 p.m. Mr. Jon Dearolf introduced himself as the interim President and CEO of the YMCA of Wichita Falls and thanked the Board for the opportunity to present. He emphasized the importance of the new indoor aquatics facility, which the YMCA has been planning for the Bill Bartley branch. The project is tagged as "297,326 Gallons of Life Changing Water," signifying the transformative impact they expect it to have on the community. Mr. Dearolf highlighted the YMCA's 80-year history in Wichita Falls and shared his personal connection to the organization. Mr. Dearolfs presentation detailed the growth of the Bill Bartley YMCA since its 2021 renovation, explaining the need for a new aquatic center to meet increasing demand. Mr. Dearolf underscored the importance of water safety, especially for children, and mentioned the significant role the YMCA can play in drowning prevention. The new facility aims to serve a broad range of the community, including older adults, competitive swimmers, and children with special needs. Mr. Dearolf compared Wichita Falls to other cities like Lubbock and Midland, showing how their aquatic facilities support larger swim programs and how the new YMCA facility could help Wichita Falls compete on a similar level. He described the facility's design, including a lap lane pool, a zero-entry pool, family locker rooms, and seating for spectators, which could attract competitive swimming events. The project is supported by several foundations, and the YMCA aims to complete it without incurring debt. The new facility will feature regenerative media filters to reduce water usage and contribute to sustainability. Mr. Dearolf outlined the potential economic impact, including the creation of two full-time aquatics positions and about 50 part-time jobs. He also discussed the YMCA's commitment to community inclusion, proposing a partnership with the City to provide swim lesson vouchers and free access to the facility on community days. Mr. Dearolf explained that the YMCA is proposing that for every dollar provided above a 10% threshold, it will match it dollar-for-dollar by reinvesting back into the city. This reinvestment would include offering free swim lesson vouchers to low-income families or those deemed qualified by the City at no cost to the users. This model, which has been successfully implemented by other YMCAs across the country, aims to give back to the community through similar initiatives. Additionally, the YMCA proposes "community days," offering city residents access to facilities on Sundays. The overall commitment is estimated to be just under $100,000 per year over seven years, aiming for both a high return on investment and a positive impact on the community. Mr. Schreiber asked how the proposed reinvestment system is tracked. Mr. Dearolf explained that if the project costs $13.6 million and a 10% grant is awarded ($1.36 million), any amount exceeding that (about $650,000) would be matched through a voucher system. This system would track each voucher online, either managed by the YMCA or by the City, to ensure accurate accounting. Tampa implemented a similar system, with the city managing the back-end tracking, but the YMCA could also handle this in-house. Mr. Schreiber followed up by inquiring about an annual report being provided to the WF4BSTC Board and whether the community days would be included in that 10% grant. Mr. Dearolf confirmed that they WF4BSTC Minutes Page 2 of 6 8/1/2024 are included. He explained that the estimated $60,000 for swim lesson vouchers and $30,000 for community days (covering costs for lifeguards, staff, etc.) are accounted for within that 10% over the course of seven years. Mr. Reynolds asked if any of the funds being discussed were for the Downtown YMCA pool, to which Mr. Dearolf clarified that they are specifically for the new project at the Bill Bartley location. Mr. Reynolds then inquired about a slide comparing community facilities, particularly questioning the mention of small swimming facilities in Wichita Falls with maintenance issues. Mr. Dearolf responded that this information was based on feedback he had heard, mentioning issues at Lucy Park and the Boys and Girls Club, and acknowledged that the YMCA itself also faces maintenance challenges due to aging facilities. Mr. Reynolds then highlighted that the Wellness Center at the North Texas Rehab Center has a functioning lap pool and noted that some of the facilities in the comparison are owned by school districts or the city, which differs from the YMCA's social service group ownership. He then inquired as to the status of the YMCA's capital campaign. Mr. Dearolf confirmed that they've raised $6.1 million so far and expect the project to gain momentum as they approach the 50% mark, which is critical to securing further donor commitments. He also mentioned that dirt work for the project is set to begin later this month, indicating confidence in their progress. Mr. Reynolds further asked about the groundbreaking plans, and Dearolf clarified that they are moving forward with full construction, not just a ceremonial groundbreaking. Mr. Schreiber asked how much of the $6.1 million raised came from the McCoy Foundation, and Mr. Dearolf confirmed that $2 million was contributed by them. Mr. Fidelie then inquired about the project timeline, asking Mr. Dearolf or Gary Baker could discuss the timeline further. Mr. Dearolf mentioned that the project is expected to be completed in 18 months, around March 2026. He also clarified that the funding from all their supporters, particularly foundations, would be spread over three years-2024, 2025, and 2026. Mr. Fidelie then asked about the seating portion of the project, particularly concerning the mezzanine, to which Dearolf responded that the seating capacity on the mezzanine would be approximately 275. Mr. Reynolds asked if the school district had been approached about potentially partnering or contributing to the construction of the YMCA project, given they have 24 swimmers. Mr. Dearolf responded that while the school district will be a partner in operations once the facility is open, there was no interest from the district in contributing to the construction. Mr. Menzies added that operationally, the district could help generate revenue for sustainability by renting the space. Mr. Fidelie asked if the facility would include a ten-lane, 25-meter by 25-yard competition pool, to which Mr. Dearolf confirmed that it would, along with a digital timing system to meet UIL tournament requirements. When asked by Mr. Schreiber where the school team currently swims, Mr. Dearolf mentioned the Boys and Girls Club. Mr. Reynolds noted that the North Texas Rehab Center occasionally rents out its pool for meets, and Mr. Dearolf added that with ten lanes, the new facility would have more capacity to host events. Mr. Clark asked if the facility would include diving capacity, and Mr. Dearolf replied that it would not, as many are moving away from diving. Finally, Mr. Schreiber requested to see a slide on payback that wasn't included in the packet, which was shown to the board. Mr. Fidelie asked if there were any other questions or comments before closing the public hearing at 3:29 p.m. 5. Public hearing regarding a funding request from Midwestern State WF4BSTC Minutes Page 3 of 6 8/1/2024 University (MSU) to support the proposed Student Success and Military Education Center at MSU's existing main campus in Wichita Falls. Mr. Fidelie opened the public hearing at 3:29 p.m. Dr. Stacia Haynie, President of Midwestern State University, began by addressing the demographic challenges facing higher education, particularly the declining number of high school graduates due to a demographic shift. She emphasized the importance of universities finding new student populations, especially as competition increases. Dr. Haynie highlighted the historical relationship between MSU and Sheppard Air Force Base and noted the decline in the number of students from the base attending MSU. She discussed the university's plan to better serve airmen and their families by creating a dedicated Military Education Center, which would offer concierge services and support to ensure their success, both academically and in their military careers. The center, to be located on the second floor of MSU's Activities Center, will occupy 11,000 square feet of the 17,000-square-foot space available. Dr. Haynie explained that the center will focus on providing a seamless educational experience for airmen, allowing them to progress in their careers while pursuing degrees. The center will also cater to airmen's families and dependents, offering scholarship opportunities to ensure education is affordable. Dr. Haynie explained that MSU will map its competencies to Air Force training programs to offer credit for existing military courses. Additionally, the university will partner with Noncommissioned Officers, and those instructors will provide training in pedagogy and instruction. Dr. Haynie mentioned the financial support already secured for the project, including $2 million from the Bridwell Foundation and additional scholarship funds of $850,000. The university is requesting the remaining $1 million from WF4BSTC to complete the $4 million needed. The project has already received approval from WFEDC, and MSU plans to request additional staffing support from the state legislature. MSU has received positive responses from state legislators and the coordinating board regarding its funding requests. Dr. Haynie then opened the floor for questions from the Board. Mr. Barham asked if the Texas Tech Board of Regents is on board with this project. Dr. Haynie confirmed that the Board of Regents is very excited. Mr. Reynolds inquired about competition with other universities or colleges. Dr. Haynie spoke about Embry-Riddle Aeronautical University and Wayland Baptist. Dr. Haynie then invited Mr. Ron Kitchens to join the conversation. Mr. Kitchens discussed General Filcek's positive support for this partnership. General Filcek envisions this partnership as a transformative opportunity for both the base and its personnel, often referring to it as "Sheppard University." Mr. Kitchens highlighted the potential to elevate the base's status and attract top talent. Mr. Kitchens explained that by offering these degree programs, the partnership aims to address the career challenges mid-career Air Force instructors face. These instructors often sacrifice career progression to serve as instructors at Sheppard. The opportunity to earn a degree while serving at the base will not only enhance their career prospects but also incentivize them to join the Sheppard faculty. With over 50% of the Air Force passing through Wichita Falls, MSU can play a crucial role in preparing these personnel for future leadership roles. The degree programs, particularly the one-year MBA, will equip Air Force members with the skills and knowledge needed to make informed decisions and contribute effectively to the Air Force's mission. Councilor Tom Taylor expressed his strong support for the partnership between MSU WF4BSTC Minutes Page 4 of 6 8/1/2024 and the Air Force. He shared his personal experience of earning a degree while serving in the military, emphasizing the positive impact it had on his career. Councilor Taylor also noted that the partnership aligns with his campaign promises to foster collaboration between the City, the Air Force, and the base. Mr. Fidelie thanked Dr. Haynie for her presentation, asked for any other questions or comments, and then closed the public hearing at 3:52 p.m. 6. Discussion regarding a possible future funding request from the City of Wichita Falls to continue capital improvements at the Sports Complex. Mr. Fidelie opened the public hearing at 3:52 p.m. Mr. Blake Jurecek, Assistant City Manager, addressed the Board to discuss a potential future funding request from the City for continued capital improvements at the Sports Complex on Sheppard Access Road. Mr. Jurecek provided an update on the success of the recently turfed fields. The Complex, which received $3.3 million in ARPA funds for turf installation in March 2023, has seen significant growth in event bookings and economic impact. Historically, the Complex, which includes fields built in 1988 and 2008, has hosted various sports events, including softball, baseball, flag football, and soccer. The recent upgrades have led to an increase in the number of events and a notable economic impact, with estimated revenues of around $215,000 per tournament and an overall impact of$2.1 million from 14 events last year. Mr. Jurecek discussed the potential for further improvements, including turfing a second complex with an estimated cost of$3.7 million. Additional upgrades such as portable fences, restroom capacity, concession stand enhancements, and shade structures are also needed, bringing the total estimated cost to $4.2 million. The funding strategy may involve requesting half of the amount from the WF4BSTC and securing the remainder through other means, including the City's general fund. The ongoing revenue generated from the Sports Complex and a proposed CVB position focused on sports events are intended to help cover the operational costs. Mr. Stephen Cruz, a local tournament organizer, highlighted the positive impact of the turf installation on event scheduling and attendance, noting that the facility has become increasingly popular. The improvements have not only enhanced the experience for visitors but also reduced the need for travel for local teams, which previously had to compete in distant locations. Mr. Jurecek and Mr. Cruz emphasized the economic benefits and community value of these improvements, suggesting that further investment could significantly boost the Complex's capacity and economic impact. Mr. Fidelie asked for any other questions or comments and closed the public hearing at 4:17 p.m. 7. Executive Session. Mr. Fidelie adjourned the meeting into executive session at 4:17 p.m. pursuant to Texas Government Code sections 551.087, 551.071, and 551.072. He announced the meeting back into regular session at 5:10 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. 8. Consideration of a funding request from the YMCA of Wichita Falls to support the construction of a new indoor aquatics facility at the existing Bill Bartley YMCA branch in Wichita Falls. WF4BSTC Minutes Page 5 of 6 8/1/2024 Mr. Fidelie made a motion for the WF4BSTC to provide funding to the YMCA of Wichita Falls in the amount of $1.36 million to support the construction of a new indoor aquatics facility at the existing Bill Bartley YMCA branch in Wichita Falls with the amount to be paid over three years, with the first payment being made in 2024, the second in 2025, and the final payment in 2026. With the understanding that with that funding, the YMCA will provide an open swim time of 300 hours per year to the community with no membership required at their discretion of time and, secondly, offer free swim lessons to any third-grade student's family who requests a lesson and lives in the Wichita Falls area. Seconded by Mr. Clark, the motion carried 5-1. 9. Consideration of a request from Midwestern State University (MSU) to support the proposed Student Success and Military Education Center at MSU's existing main campus in Wichita Falls. Mr. Leiker made a motion for the WF4BSTC Board to approve the request from Midwestern State University to support the proposed Student Success and Military Education Center at MSU's main campus in Wichita Falls in the amount of $1,000,000. Seconded by Mr. Barham, the motion carried 6-0. 10. Adjourn. No further discussions took place, nor actions taken. Mr. Fidelie adjourned the meeting at 5:13 p.m. / A =tc vL.— Guy A. "TonV Fidelie, Jr., President WF4BSTC Minutes Page 6 of 6 8/1/2024