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4B Sales Tax Corporation Minutes - 09/05/2024 MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (WF4BSTC) SEPTEMBER 5, 2024 PRESENT: Tony Fidelie, President § WF4BSTC Members Glenn Barham, Vice-President § Nick Schreiber, Secretary-Treasurer § Dave Clark § Craig Reynolds § Michael Grassi § Steve Garner § Tim Short, Mayor § Mayor & City Council Bobby Whiteley, Councilor at Large § Paul Menzies, Acting City Manager § City Staff R. Kinley Hegglund, Jr., City Attorney § 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 § Jeff Gutierrez, Deputy Dir.-Installation Support § Sheppard Air Force Base Mark McBurnett, Deputy—Base Civil Engineering § Dwayne Jackson § Wichita Theatre Ron Kitchens, CEO & Managing Partner § Wichita Falls Chamber of Commerce Lynn Walker, Writer § Times Record News 1. Call to Order. Mr. Tony Fidelie called the meeting to order at 3:01 p.m. Mr. Fidelie introduced two new board members, Steve Garner and Michael Grassi. The recording secretary, Mrs. Paige Lessor, administered the oath of office to the two new board members and Mr. Glenn Barham, who was reappointed for another term. 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 was slightly below last year. However, strong interest earnings are compensating for this decline. The budget will be discussed in detail later, with the monthly financials. Notably, this month includes the approved YMCA Aquatic Center project. Currently, there is approximately $7.9 million in unencumbered funds available for new projects. Mr. Fidelie asked Mr. Menzies about the YMCA project, specifically regarding the budgeting spread over three years. Mr. Menzies explained that the entire amount is encumbered to indicate that it cannot be spent again. They confirm this is also the case for the Sheppard AFB Bash program, which is similarly budgeted over time. Mr. Menzies reiterated that these encumbered funds are not available for new expenditures. WF4BSTC Minutes Page 1 of 8 9/5/2024 3. Discussion and Possible action related to the appointment of officers. Mr. Hegglund discussed the vacancy left by Mr. Michael Mills, the former secretary- treasurer. Mr. Hegglund noted that it may be appropriate to appoint a new officer. He confirmed that Mr. Fidelie is the president and Mr. Barham is the vice president. Mr. Fidelie suggested discussing the appointment in the current public hearing or in executive session. The Board agreed to hold the discussion in executive session and then reconvene. 4. Consent Agenda a) Approval of Minutes of August 1 , 2024. Mr. Clark moved to approve the August 1, 2024 minutes. Seconded by Mr. Barham, the motion carried 7-0. 5. Public hearing regarding a funding request via the Wichita Falls Chamber of Commerce and Sheppard Military Affairs Committee (SMAC) to support the strobe light repair project for the main runway at Sheppard Air Force Base. Mr. Fidelie opened the public hearing at 3:07 p.m. Mr. Barham noted that he would abstain from the discussion and vote on this item due to his position as President of SMAC. Mr. Ron Kitchens presented on behalf of the Wichita Falls Chamber of Commerce, Sheppard Air Force Base, and SMAC for a funding request related to runway resurfacing at the base. The project is partially funded by the federal government and NATO allies, but there is a shortfall for a necessary lighting upgrade. Mr. Kitchens explained that to address the funding shortfall, Sheppard AFB is preparing a grant request for $1 million from the State of Texas, with matching funds from the federal government. They are seeking an additional $500,000 from the Economic Development Corporation Board, which will be on their agenda in two weeks. This funding is crucial for moving forward with the application, as local support is needed before state approval. Importantly, all funding will be contingent on receiving the state and federal contributions, ensuring that no local dollars will be spent unless those funds are secured. Jeff Gutierrez, Deputy Director of Installation Support at Sheppard Air Force Base, explained that the project will enhance both civilian and military runway capacity, positioning them as a unique hybrid facility in the state. This upgrade is crucial for maintaining strategic advantages and ensuring future mission expansions. He emphasized that without meeting modern standards, the base risks being considered a secondary location. He stressed the urgency of these repairs for the 80th Fighter Training Wng. He noted that proper runway maintenance is vital for producing fighter pilots, especially in light of current global conflicts. The goal is to minimize downtime and operational risks, ensuring they can continue training pilots effectively for NATO partners. The Chamber, Sheppard AFB, and SMAC agreed that this funding request is essential for maintaining high training standards and fulfilling international commitments. Thus promoting and retaining Sheppard AFB and military and civilian jobs that support the base. In response to a question about the project's impact on the 80th Training Wing, Mr. Gutierrez confirms that the lighting upgrade and runway repairs will significantly assist them, both for current operations and in preparing for the arrival of new T-7 trainers over the next decade. This enhancement will allow the base to accommodate the new aircraft without needing further repairs. Mr. Gutierrez explained that the overall project costs approximately $45 million, which includes repairs to two runways funded by a combination of Department of Defense and NATO dollars. This substantial investment reflects the commitment of foreign WF4BSTC Minutes Page 2 of 8 9/5/2024 partners. Initially, the strobe light project was estimated at under $1 million, but costs have now increased to about $2.83 million due to the project's alignment with the runway upgrades. As local funds are insufficient to cover these costs, they are requesting assistance from both the city and the state to mitigate downtime and ensure the base can continue its critical training missions effectively. In response to a question about the strobe lights, Mr. Guiterrez explained that the current airfield lighting, which includes runway and taxiway lights, will be enhanced with a new sequenced strobe light system. This upgrade is designed specifically for the north side of the runway and aligns with modern standards for CAT I, II, and III aircraft, enabling safe landings in poor weather and nighttime conditions. It will support training missions and provide safe landing options for emergency diversions from nearby airports. Mr. Mark McBurnett, Deputy Base Civil Engineer, added that the existing strobe lights will be removed during the runway repairs, and the new strobe lights are necessary because the added shoulders on the runway require repositioning. Without this new lighting project, there would be no strobe lights available after the renovations. Mr. Fidelie asked if there were any other questions or comments before closing the public hearing at 3:17 p.m. 6. Public hearing regarding a funding request from the City of Wichita Falls to support capital improvements at the Sports Complex on Sheppard Access Road (2nd turf project). Mr. Fidelie opened the public hearing at 3:17 p.m. Mr. Blake Jurecek provided an overview of the project, noting that they previously discussed it informally. Mr. Jurecek explained that the Sports Complex consists of two facilities with eight fields, the original built in 1988 and a newer complex opened in 2008. The complex accommodates various sports, including youth and adult softball, baseball, soccer, and flag football. He highlighted the versatility of the fields, which feature portable fences that can be adjusted for different age groups. He mentioned that in 2023, they secured ARPA funding designated for tourism to turf the first complex, completed in March 2023, successfully attracting numerous tournaments. This positive outcome has prompted the request for funding for the second turf project, aimed at further enhancing the complex's capabilities. Mr. Jurecek continued the presentation by discussing the upgrades to the original complex after it was turfed, emphasizing the importance of improving facilities alongside the new playing surfaces. He provided a historical overview of event scheduling, noting that they struggled to attract tournaments in recent years due to the inability to maintain playable fields. This lack of reliability led to a decline in bookings as teams sought guaranteed playability. However, following the turf installation, the complex saw a significant turnaround, hosting 14 events last year and booking 30 weekends for the current year. Mr. Jurecek shared an economic impact analysis, noting that previous years had shown an economic impact ranging from $1 million to $1.5 million. Last year, with just 14 events, the impact reached $2.1 million. This year, despite hosting only 14 of the planned events so far, they have already generated an economic impact of$2.5 million from spring tournaments alone. This data underscores the project's potential benefits for the local economy, reinforcing the need for further improvements at the complex. Mr. Jurecek further highlighted the economic impact of the Sports Complex, noting WF4BSTC Minutes Page 3 of 8 9/5/2024 that visitors are actively spending money during their stays in Wichita Falls. He provided revenue figures for concessions and field rentals, each generating around $30,000 so far this year. With a second turf complex, the city plans to utilize this revenue to hire staff to maintain the fields and enhance the tournament experience. He emphasized the strategic location of Wichita Falls, positioned centrally between major cities like Fort Worth, Dallas, and Oklahoma City, making it an attractive destination for traveling teams. The complex has been drawing interest from West Texas teams, benefiting from lower hotel rates compared to the larger metropolitan areas. Using cell phone data analytics from the Convention and Visitors Bureau, Mr. Jurecek presented insights into visitor demographics. From February to June, 58% of teams came from over 80 miles away, with significant traffic from the Dallas-Fort Worth area and other locations like Abilene, Amarillo, Lubbock, and Midland. The data also provided a heat map illustrating where visitors originate, showing that many travel from surrounding cities. Additionally, Mr. Jurecek noted what visitors are doing while in town, with popular destinations including local restaurants like Chick-fil-A and Olive Garden, retail stores like Academy and Walmart, and attractions like the water park. This information underscores the complex's role in boosting the local economy through increased tourism and spending. Mr. Jurecek provided detailed insights into a large high school tournament held at the Sports Complex, highlighting its significant economic impact. The tournament attracted 40 teams and generated an estimated $434,000 for the local economy over one weekend, with a total of 7,200 visitors. He noted that visitor counts may include multiple entries from the same individuals or families, emphasizing the volume of activity. The proposed project entails a total cost of $4.2 million, which includes $3.7 million for turf installation, upgrades to portable fences, and additional bathrooms and shade structures based on feedback from users. The City Council has already approved $2.1 million for capital expenditures for the project, with the request for the remaining funding directed to the 4B Board. Mr. Jurecek emphasized the project's readiness to commence, with potential completion by March 2025, aiming to capture spring tournament traffic and further boost local economic activity. He expressed confidence that the investment would yield significant returns for the community. Mr. Fidelie asked Mr. Jurecek to confirm that the WF4BSTC Board assisted with the initial turf project. Mr. Jurecek confirmed that the initial turf project received assistance from the Board, which contributed $197,000 to upgrades that included fencing, concession stands, and bleachers. He noted that the turf installation was funded through ARPA money, highlighting the collaborative effort in enhancing the facilities at the Sports Complex. This prior support has set a positive precedent for the current funding request for the second turf project. Mr. Garner noted a significant increase in average economic impact per tournament—about $50,000—pointing out that the 2024 tournaments yielded a much higher average per event than those in 2023. Mr. Jurecek explained that this increase is primarily due to a higher number of participants per tournament. In the first year of turf implementation, the tournaments were limited by scheduling conflicts with teams that had existing commitments. As word spread about the facility and its quality, more teams were able to enter, resulting in a more significant economic impact. He emphasized that the growing reputation of the complex is attracting more participants and contributing to the increased economic benefits. WF4BSTC Minutes Page 4 of 8 9/5/2024 Mr. Jurecek emphasized the importance of the Sports Complex's drainage system, which allows for play even after significant rain—an advantage over other facilities. He noted that the positive experiences from successful tournaments are attracting teams back, reinforcing the complex's reputation. Additionally, Mr. Jurecek discussed plans to hire an event coordinator to enhance the experience for coaches and parents, aiming to provide a more welcoming environment. This role would focus on customer service, such as greeting teams and offering amenities, which he believes will encourage repeat visits. He also mentioned hiring a new staff member by the Convention and Visitors Bureau (CVB) to focus on sports tourism, aiming to secure larger events like the upcoming USA softball tournament in 2025. Mr. Jurecek highlighted the potential for growth in the sports tourism industry, suggesting that the city can capitalize on this trend by improving facilities and services. Mr. Fidelie asked if the project would be complete by March so it would be ready for the big tournament. Mr. Jurecek expressed confidence in the timeline for the project, noting that it's smaller and should progress faster than the previous turf installation. He indicated that they expect to follow a similar schedule, starting in November and finishing by February, allowing for completion ahead of the spring tournament season. He thanked everyone for their support and attention. Mr. Fidelie asked for other questions or comments and closed the public hearing at 3:36 p.m. 7. Public hearing regarding a funding request from the Wichita Theater (Dwayne Jackson) to support social media marketing of the existing facility in downtown Wichita Falls. Mr. Fidelie opened the public hearing at 3:36 p.m. Mr. Dwayne Jackson presented a funding request to support social media marketing for the Wichita Theater. He thanked the Board for their past support, emphasizing the theater's commitment to becoming a regional entertainment hub since acquiring the facility in March 1995. Mr. Jackson mentioned that it has taken approximately $5 million and 30 years to reach their current status. He aims to highlight the theater's history and its role in the community during his presentation. Mr. Jackson continued outlining the Wichita Theater's history and growth since its acquisition in 1995. He emphasized the theater's evolution, including expansions and remodeling efforts aimed at enhancing the community's cultural offerings. Mr. Jackson proposed a marketing initiative to promote downtown Wichita Falls as a tourism destination, leveraging the theater's presence to attract visitors. He drew parallels to successful tourism models, like Fredericksburg, highlighting that people travel for entertainment, which subsequently boosts local dining and shopping. Mr. Jackson stressed that without a coordinated marketing strategy for downtown, the theater and local businesses would struggle to attract tourists. He identified three critical points for developing downtown: retaining existing businesses, recruiting new ones, and enhancing the overall atmosphere with city support. Mr. Jackson concluded that a vibrant downtown would improve local quality of life and create new revenue streams through tourism, benefiting the entire community. Mr. Jackson wrapped up his presentation by expressing his long-standing belief in the potential of downtown Wichita Falls and asking for support to revitalize the area through WF4BSTC Minutes Page 5 of 8 9/5/2024 tourism and entertainment. He humorously noted the importance of"making downtown great again" while acknowledging the challenges faced during the pandemic. He highlighted significant growth in their patron base, showcasing a dramatic increase from 2,039 households in early 2021 to 9,115 households in mid-2024, with a notable rise in visitors from outside the area. This growth was attributed to a strategic investment in social media marketing, specifically targeting cities like Oklahoma City, Dallas, and Amarillo. Mr. Jackson explained the formation of a cohesive plan called the Theater District, which aims to attract more regional attention and potentially bring in more theaters to the area. He mentioned an informal partnership with Backdoor Theater to jointly promote their offerings and enhance the overall cultural landscape of downtown. He concluded by requesting funding for a marketing initiative to expand this vision, proposing a matching or forgivable loan to kickstart these efforts. The initiative would include a new website that not only promotes theater events but also highlights local dining and attractions to better serve tourists and boost the local economy. Mr. Fidelie highlighted the growth of the theatre after the height of COVID. Mr. Jackson highlighted a jump from 2,039 households in 2021 to over 9,100 in 2024, emphasizing the impact of targeted marketing efforts. Mr. Reynolds asked Mr. Jackson if the theatre currently has a 501(c)(3) status. Dwayne clarified that the theater does not currently have a 501(c)(3) status, which can limit funding opportunities. Still, they focus on increasing ticket sales and expanding their audience through social media marketing. Mr. Schreiber inquired whether the theatre could regularly budget for this project with its revenue increase and expected future sales. Mr. Jackson acknowledged that while he currently lacks sufficient funds, he is actively investing in advertising, primarily through Facebook, targeting a radius of about 50 miles for maximum impact. He noted that expanding beyond this radius becomes less effective and requires more spending. Currently, he spends about $8,000 a month on advertising across various channels, including billboards. Mr. Reynolds asked Mr. Jackson to elaborate on how his marketing plan would benefit other businesses in downtown, given the challenges they face in promoting themselves. Mr. Jackson compared the downtown area to a shopping mall, explaining that, similar to a mall that handles overall promotion, his plan aims to create a coordinated marketing effort that benefits all local businesses. He envisions establishing an organization—potentially under the chamber, CVB, or a downtown development authority— that would take on the bulk of marketing responsibilities. This way, individual businesses can still manage their own Facebook advertising while benefiting from a broader, targeted marketing strategy to attract visitors. Mr. Garner asked Mr. Jackson about the theater district's website, theatredistrictwtrf.com. Mr. Jackson explained that George Tipton, an IT professional with experience working for both the Wichita Theater and Back Door Theater, administers the site. Mr. Garner inquired whether both theaters have administrative capabilities for the website, and Mr. Jackson confirmed that all three—himself, George, and Back Door Theater—have access to manage it. Mr. Schreiber asked Mr. Jackson if Downtown Development would provide any potential support for this project. He explained that he presented a project to them but faced resistance when the executive director expressed concerns about the use of their logo, indicating a need for board approval. Ultimately, Mr. Jackson noted that the downtown WF4BSTC Minutes Page 6 of 8 9/5/2024 development organization has shown no interest in engaging in general business-focused marketing over the past 15 years. Mr. Fidelie asked for other questions or comments and closed the public hearing at 3:53 p.m. 8. Consideration of the Corporation's Fiscal Year 2025 Budget Mr. Menzies presented an overview of the proposed budget, highlighting critical revenue and expenditure figures. The primary revenue source is a quarter-cent city sales tax, projected at approximately $5.128 million, consistent with current trends. Interest earnings are estimated at around $750,000, adjusted due to potential future interest rate reductions. The total revenue for the next year is projected at around $6.25 million. Debt service payments are estimated at $2.4 million, with the city holding the debt while the 46 corporation contributes to the costs. Significant projects include the Maplewood project and the capital payments for Castaway Cove, with $630,000 in debt rolling off over the next two years. The budget includes a $250,000 allocation for Downtown Improvement grants, reflecting a previous increase in funding. Administration charges slightly increased from $30,000 to $31,500, aligned with inflation. Overall, the budget carefully considers revenue and expenditure trends while planning for future initiatives and obligations. Mr. Fidelie asked if there were any further questions from the Board or the public. No further questions were asked. Mr. Barham moved to approve the WF4BSTC Budget for Fiscal 2025. Seconded by Mr. Reynolds, the motion carried 7-0. 9. Executive Session. Mr. Fidelie adjourned the meeting into executive session at 4:01 p.m. pursuant to Texas Government Code sections 551.087, 551.071, and 551.072. He announced the meeting back into regular session at 4:49 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. 3. Possible action related to the appointment of officers. Mr. Reynolds moved to nominate Mr. Nick Schreiber to be appointed as secretary- treasurer of the WF4BSTC. Seconded by Mr. Clark, and no further comments or questions, the motion carried 7-0. 10. Consideration of a funding request via the Wichita Falls Chamber of Commerce and Sheppard Military Affairs Committee (SMAC) to support the strobe light repair project for the main runway at Sheppard Air Force Base. Prior to the vote, Mr. Barham abstained from voting due to his position with SMAC. Mr. Fidelie motioned to authorize the expenditure of up to $500,000 for the strobe light repair project for the main runway at Sheppard Air Force Base contingent upon funding from the WFEDC, the State of Texas, and the Federal Government. Seconded by Mr. Schreiber, and with no further discussion, the motion carried 6-0. 11. Consideration of a funding request from the City of Wichita Falls to support capital improvements at the Sports Complex (2nd turf project). WF4BSTC Minutes Page 7 of 8 9/5/2024 Mr. Barham moved for the Board to approve the funding request of the City of Wichita Falls to support capital improvements at the Sports Complex, specifically the installation of turf fields at the second complex located on Sheppard Access Road in the amount of up to $2.1 million. Seconded by Mr. Clark, with no further discussion, the motion carried 7-0. 12. Consideration of a funding request from the Wichita Theater (Dwayne Jackson) to support social media marketing of the existing facility in downtown Wichita Falls. The Board took no action on this item. Item number 12 failed for lack of a motion and second. 13. Adjourn. No further discussions took place, nor actions taken. Mr. Fidelie adjourned the meeting at 4:52 p.m. 7C- /1-7rT#6C-.- Guy A. "Ton 1 Fidelie, Jr., President WF4BSTC Minutes Page 8 of 8 9/5/2024