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TIF #3 Board of Directors Minutes - 11/05/2025 MINUTES Tax Increment Financing #3 Board November 5, 2025 PRESENT: Kenneth Haney, Chairperson •Member Councilman Tom Taylor •Member Councilman Robert Brooks •Member Sandra Gross •Member Mark Beauchamp •Member Ray Dixon, Jr. •Member Monica Aguon, Deputy City Attorney •Legal Dept. Stephen Calvert, CFO •City Staff Fabian Medellin, Interim Development Services Director •Staff Liaison Karen Montgomery-Gagne, Principal Planner •Staff Liaison Robin Marshall, Admin Assistant •City Staff ABSENT: Barry Mahler •Member I. CALL TO ORDER The meeting was called to order by Chairperson Mr. Kenneth Haney at 3:36 p.m. II. APPROVAL OF MINUTES Chairman Haney asked if there was anyone from the public that would like to ask any questions or had any comments. No comments were made. Commissioner Tom Taylor made a motion to adopt the October 15, 2025, minutes and Mr. Ray Dixon, Jr. seconded the motion. Chairman Haney asked if anyone had any comments, and no additional comments were made. Chairman Haney took the motion to vote, and it was approved unanimously 6-0. III. Discussion of Public and Private Project Funding. Mr. Fabian Medellin stated that this presentation will be to use the Board and the public as a sounding board to bounce some ideas off of how some of the public and private funds can be used to better the TIF zone. The majority of the discussion will be from the public side of the funding. He cited the allocated amounts, currently with a total of $1.5 million allocated. Broken down in the following way: 1. $611,000 in private funds. (This amount being after the two $10,000 grants that were awarded at the last meeting for a total of$20,000.) 2. $631,000 in public funds. 3. $315,000 in discretionary funds. Tax Increment Financing#3 Board Meeting PAGE 2 November 5,2025 Mr. Medellin suggested a program similar to the successful 4B Matching Grant program in our downtown district. A non-residential property owner could petition to have a matching grant up to $10,000 to allow for exterior facade improvements. Anything from lighting, window replacement, parking lot improvements, signage, basic wall repair and maintenance. He added something new that could help and support larger projects(similar to what was done at the last meeting) is to offer assistance for design professionals. For a larger, more involved project (more than typical exterior renovation) he proposed that the Board offer the same opportunity that was given to Zoom Zoom and the House of Empowerment and provide a matching grant of 50% up to $10,000. For property owners to hire design professionals, get the details of a potential project, get an exact cost amount, so that could potentially lead to either a provincial loan or maybe further assistance from the TIF3 Board. He suggested allocating $200,000 for this program from the public funds. Mr. Medellin showed maps depicting the non-resident residential properties within the zone of everything that isn't a single family or a duplex. This includes everything from convenience stores, churches, apartment complexes that fall within the commercial category. (Noted that vacant lots were not included.) In total there were 183 properties. So, if$200,000 was allocated that would provide for potentially 20 properties. He reminded the Board that with the possibility of the TIF3 funding being extended an additional five years, those funds will continue to add into the pot and that can be allocated in other ways as well. Mr. Medellin stated that he started off talking about this fund because he would like to preserve what can be preserved and to save what can be saved. Adding that there is a lot of history, and a lot of culture in some of these buildings, and to not be so quick to demolish them. Though he also noted that some are past that point, and when the appraisal district will assign a zero value to a property they can be deemed hazardous if uninhabitable. Community Development Block Grant funds are used to demolish those structures, but those funds are limited. He proposed an additional allocation, out of the public fund, of $200,000 for Demolition Assistance for those structures that have been deemed hazardous, and since they are inhabitable have been deemed to have zero value. Mr. Medellin stated that he spoke with the Code Compliance department and at this time, within the TIF3 zone, there are 12 properties that have been identified that they are at some stage in the process. They are just waiting for funding to become available to demolish those structures. He noted that he has been trying to familiarize himself more and more with the zone and said that some properties may need a second look. There may be opportunities to either save or demolish, but they would have to go inside the structures to make an assessment. Mr. Mark Beauchamp asked why it couldn't be pulled from the discretionary side of the funding, and Mr. Medellin said that it is completely up to the Board, and they can decide to pull the money from where they feel it is more appropriate. Ms. Sandra Gross pointed out that there are a lot of properties that have had the buildings torn down, and now the yards are not up to par. She asked if more buildings are torn down that is leaving the lots to just get overgrown, so what can be added back to that lot? Mr. Medellin said he will be addressing that and added that each of his projects builds on each other, so they help support one another. The next point Mr. Medellin spoke about is a new economic opportunities initiative and would like to allocate $100,000 to it. Where there is vacant land, there is opportunity. He stated that those particular properties can be challenging to develop commercially for a couple of reasons. The lots are long and narrow, because they originally were laid out to be used for residential. To amass a large enough lot to develop commercially would mean working with multiple owners. And then, Mr. Medellin mentioned that some of them are within the flood plain, which can be overcome, but would take engineering to overcome. He clarified that a lot of the major thoroughfares in those areas are either already zoned commercially or they are zoned as residential mixed use, where with certain approvals Tax Increment Financing#3 Board Meeting PAGE 3 November 5,2025 through the Planning and Zoning Commission commercial uses can be allowed. He also added that within our commercial districts, we do allow for houses, single-family homes. Mr. Medellin is pointing all of this out to show that there is opportunity. His intent is to find the best grouping of parcels, and we will do the hard part. A commercial developer will see 5-10 different owners and will just walk away from that. But if we go out and purchase small areas and combine them into a large enough property, then we can promote it commercially with the input from the Board, the public and the Council for the highest and best use of that land. Depending on the commercial use, a developer may need quite a bit of land to allow for a building, parking and setbacks. He pointed out there is still work to be done to identify the best locations that would have the best overall benefit to the zone, and there are more discussions to be had. He reiterated that today's discussion is to be a very broad conversation, and to create high- level feedback from the Board. Once the property is amassed and combined, then it will be sold. Those funds would come back to the TIF Board, in which case we would get to do it again...find more properties, combine them and then redevelop. Once again, he noted that it is up to the Board, the public and the Council, the highest and best use of that land, so we can gear the sales toward a specific use. On the flip side of that there are a number of non-residential structures that are vacant, empty commercial buildings that may or may not be past that tipping point. He suggested something similar to the other programs and potentially acquiring some of those properties (demolish what's not salvageable)and then repurpose and engage with realtor groups and Forward Wichita Falls, and promote these for those commercial needs within the neighborhood. Being that commercial properties can be more costly, he felt it would be good to allocate a little bit more and suggested $225,000 for Commercial Renewal from the public funds to allow for that. Mr. Medellin once again showed the map of the total non-residential properties, and there are 183 properties that have a commercial building. (Noted that vacant lots were not included.) Mr. Medellin feels that whether they renovate or make new, there is opportunity to unite. Not just by buildings or the new restaurants, but through art, through civic art. He would like to allocate $75,000 in order to create an entryway art piece or a gateway art piece. Something that will not only identify the area that you are in, the community that you are in, but to give that"I've arrived" feeling. Councilman Tom Taylor said that he has had residents suggest that they would like some type of veteran's recognition and felt that was lacking in the community. Mr. Medellin added, it should be representative of the community and historically of who has lived there, and the events that have taken place there. A breakdown of the five overall programs was given, being: Private Fund $611,742.4 - $200,000 (Matching $10,000 Grant) $411,742.4 • If there were ever another project that wanted to come and seek some gap financing, that could potentially come from the private fund. Public Fund $631,742.4 - $200,000 (Demolition Assistance) - $100,000 (Economic Opportunities) Tax Increment Financing#3 Board Meeting PAGE 4 November 5,2025 - $225,000 (Commercial Renewal) - $ 75,000 (Gateway Art Project) $ 31,742.4 • This does not include the discretionary funds or future funds to be deposited from next year's tax increment. Next year we are projected to receive $216,000. Using the 40/40/20 split, that would be $86,000 back in the private fund, $86,000 back in the public fund and $43,000 back into the discretionary fund. Mr. Medellin opened the discussion up to the Board and the public in attendance. Mr. Beauchamp said he feels the art project can be a good catalyst for developing future economic projects and cited what has been done in Waco in a similar area and similar situation to what we have. It started with public art, and it turned into revitalizing an entire community. Ms. Gross had a question regarding the buildings that are already there. Mr. Medellin said there would be some guidelines on how we can spend the funds to be used on façade improvements, and where those funds can go. The State allows this for blighted areas, and we can address those areas, and the dilapidated structures with funds. In our financial report, we have identified four project criteria. 1 )Stormwater; 2) Street realignment; 3) Drainage improvements; and 4) Commercial improvements Mr. Medellin told the Board that when he came up with the programs, he had to stay within those guardrails. When it's addressing blighted areas, he can't address blighted areas with those funds. When it is creating something new, or improving something that exists, that's when he has to focus on those non-residential properties. He clarified that façade improvements will come from the private fund, unless the Board decides to pull from the discretionary fund. He also explained that what was left over in the private pool would allow Zoom Zoom No 5, or House of Empowerment, if they did come back in once they've finalized everything they need to, to fill in that gap financing. Or if we get another application. (Which we did have someone reach out to us, but they were outside of the zone). The two previous awards were talked about, and it was explained that the previously awarded grants were design assistance grants. The award was $10,000 to aid them in preparing plans for their initial ask, which the initial ask for Zoom Zoom was $120,000, and for House of Empowerment was $90,000. That doesn't leave very much, that's why it was important in the last meeting when the Board adopted that financing mechanism, that it was considered how much the Board is investing versus how much the individual is investing. The funds are not really intended to build the project; it's intended to provide that missing piece to make a project happen. Then in the public funds, the Board would still have $31,000, and you would still have the $315,000 unless you opted for a different allocation of funds. It was stated by Mr. Beauchamp that the design allocation that was done the last time let the initiator be involved in the project, have money in the game, and lets them have a more realistic outcome when they bring the full project to the Board. They will have a well thought out project at that point. Mr. Medellin clarified that the $10,000 improvement grant is a matching grant, so the investment per property hypothetically would be a $20,000 investment, which the TIF3 Board would reimburse up to half of what the individual property owner spends. The money will come back to the TIF3 Board, because as someone improves their property, Tax Increment Financing#3 Board Meeting PAGE 5 November 5,2025 that will increase their appraisal, which will come back to this Board to reinvest in another property. ,4110. Chairperson Haney opened the floor to the public. Ms. Brenda Jarrett spoke and reminded the Board that the community on the east side is a historic community, and historical things have happened there that haven't happened anywhere else. She wishes that everyone could come together as citizens of Wichita Falls and not be separated. Ms. Ellis asked if the church was separated from the TIF3, and if they were included in projects, because she thought the church was separated from it. Mr. Medellin stated that if it's a non-residential property, within the geographic boundaries, then yes, it is eligible. Then it is up to the Board whether to include or not include it in the awarded grants. She then asked Mr. Medellin what he considered "safe areas" as he had made a reference to safe areas earlier. She stated that there are safe areas in her community on the northeast side because there's numbers there. Regarding the historic aspect of the east side, she recommended putting up little poles up on the main streets with the name of that veteran and their branch of the service. Mr. Medellin pointed out for clarification that the design assistance is for someone to have some aid in paying for a design professional, like an architect or engineer. He noted the convenience store, based on the size of the building and the specific upgrades they are wanting to make, were required to have an architect and engineer for some of those. The Board discussed finding good groupings of properties that could be combined into one parcel. Also discussed was speaking with local realtors to put feelers out to see if there are properties that might be available to purchase. Zoning for areas in the TIF3 zone was discussed, some being Industrial and General Commercial. One area in particular being near the railroad, which would be a very attractive property because of the close proximity to the railroad, other transportation and the business park. The Jalonic Street area was talked about and noted that it was a business property back in the day. There are a few warehouse type buildings in that area that are being operated out of, though there are some that are vacant. It was said that traffic would be more difficult in that area. Ms. Gross asked about addresses in the area, and Mr. Medellin said staff would provide a spreadsheet for the Board members to review, to figure out some prime areas. The Board discussed possible developments in certain areas in the zone. Mr. Ray Dixon Jr. asked what businesses have been in these areas that make you come back. Third Street was a popular place with a lot of nightlife, and dentists' offices were mentioned and a varied assortment of entities. Mr. Dixon told the Board that he went to Zoom Zoom's the other day because he had a low tire he wanted to air up but found that the air tank was broken. He had to drive all the way back to United to put air in the tires. He said in bringing some of those businesses back, you are still trying to build up the community. He continued, saying it's good to have laundry mats, but it's better to actually have a sit-down restaurant. Mr. Medellin said it is a delicate balance of not wanting to take away what they have established, their history there. We don't want to potentially create some conflict. It is a delicate balance, and that is why we're getting the Board's input and have the public here, so they can provide feedback and help guide this. Accountability on the individual to keep the property up was brought up. Mr. Medellin explained that we have code compliance laws, and tickets can be written, but at the end of the day the property owners can pay for the tickets, but nothing changes. He informed the Board that he is going to be working on new innovations on how we can re-address some of these problems and to look at things differently, so we get the effect that's needed, that's deserved in the area. Mr. Dixon said before someone loses their property, they Tax Increment Financing#3 Board Meeting PAGE 6 November 5,2025 should have every opportunity to salvage it, reclaim it, to build up on it. But if they're not willing to do that part, then by the time you get to this place right here we have exhausted all of that. Mr. Medellin said that Councilor Brooks has helped out and brought attention to the area with a lot of community clean ups, in District 2 in general. That has opened a lot of eyes to some folks that this needs to be not just a one-off, but actually funded and sustainable. In our newest budget, there is actually funds where we can dedicate to help provide those community clean up days. The first ones to notice a problem are your neighbors, and those in your neighborhood. There are ways we can help at that neighbor community level versus waiting until it gets to the point where it's a house where the roof is caved in. Ms. Josie Rose made mention of how much money comes from the east side that goes to the west side of town. She mentioned one area that has 600-700 units, and in addition, Rosewood and the Gardens and apartments on Flood Street and Sun Valley. Most of those households are getting $800-$900 with food stamps. Those on the west side are gaining from that. While businesses are being built up on the west side, buildings are being torn down on our side of town. We pay taxes like everybody else. She stated that if a person wants to apply to get some money to repair their house, they can't get it because they are in the flood zone. They pay their taxes; they aren't responsible for being in the flood zone. She asked why they can't be entitled to the money? She asked why the rules can't be restructured about how the money is given out? She feels like when they think they are going to be able to gain something, there is a new rule put in that pushes them away from it. She has an old grocery store that is closed because she could never get any money to help with the repairs needed. She now uses the location as storage. But she still pays taxes on it. When asked if she would sell the building, she said she would. The Board said a building like that would have good potential to be re- developed or sold to be developed. Mr. Medellin said the Board needs to identify those owners that are willing to participate and to sell. The discussion about having a town hall meeting in the community to make it available and convenient to the residents was brought up. The TIF3 program has been publicized over the years. It was suggested to put it on social media more. Councilman Brooks said he didn't think advertising was the issue. He asked if anyone of color has ever received anything from TIF3? No one in the audience responded to receiving anything. Ms. Karen Montgomery-Gagne stated staff would have been overjoyed to move applications forward for Board review and consideration but had difficulty obtaining basic information for a complete application and people anticipated the TIF funds/City would cover 80-100% of project costs. When they learned the TIF funds could cover 'gap' financing and not the main source of project funding often the project was no longer pursued. We still have Mr. Haywood's July 2023 application pending completion and would like to see it finished to present to the Board for consideration. We copied his paperwork and gave it back to Mr. Haywood a couple of times so he could determine what application sections were still incomplete. Mr. Haywood was requesting assistance to pave his required parking lot for the restaurant he opened in the eastern part of the TIF3 zone on MLK Jr. Blvd. She said she would love to see Mr. Haywood's project come forward to the Board. Councilman Brooks mentioned that the last time that particular business owner was here at a meeting, he spoke on the exact same thing that Ms. Montgomery-Gagne just mentioned, the owner said the last time he walked into the office he said he was told he can't get the money. He had said he had done everything that staff had asked him to do, and he filled out all of the paperwork, and did the bookwork. And after that the owner said he was told that he did not qualify for the money. Chairman Haney responded and said to his knowledge that has never been presented to the TIF3 Board, and he has been on the Board for five to six years. Chairman Haney said people may say we are acting like a bank, but he pointed out that the Board has a fiduciary responsibility for these funds to get the data together to make a decision. The Board may not be a bank, but they have to make sure that we have Tax Increment Financing#3 Board Meeting PAGE 7 November 5,2025 sufficient information provided to the Board so they can act upon making the right decision. Mr. Medellin, in reference to Mr. Haywood, stated that in his statement he kept going back and forth between SBDC and the TIF Board. He may have completed everything for the SBDC and may not have qualified for a small business association grant, however, his actual TIF3 application was never completed. We still have that in the office. Mr. Medellin also noted the reason he is a big proponent of the Facade Improvement Grant is that we need to make it more accessible. Not to necessarily make it easier but to streamline the process where someone doesn't need to fill out three years of projections if they want to pave their parking lot. To help move the process quicker and get the project done. Mr. Dixon made a comment saying that relationships are what's missing, and we need to get back to that. He said there is a mix of the current Board members being judged for things a previous Board didn't get done and also being caught with individuals who felt they may have been slighted. With the mixed feelings, information would be the biggest thing in putting the truth out. When truth is put out, there has to be ownership with it. If it's something the Board hasn't done, then we should own that. If it is something that the individual hasn't done, then they need to own that. It's a matter of perception. There is a lot of perception that there is division when it comes to how I'm treated versus how others are treated. He added that we have to put some truth out so that people actually leave with not just hope, but a better understanding of if I didn't do A, B, C and D...now if I do A, B, C and D, don't add E when I come back. Mr. Medellin summarized all the input from the discussion to prepare for the next meeting. They discussed having the next T1F3 meeting in a location that would be convenient to residents on the east side. Councilman Brooks contacted Mike Davis with the MLK Center to see if the next meeting could be held at that location. It was determined that it would vow be held on November 20th at 5:30 and it was verified by Mr. Davis. There were a few more comments from the public. Mr. Medellin said he would get the spreadsheets with the addresses for the Board members. Chairperson Haney closed the meeting at 4:56pm. IV. OTHER BUSINESS a) Design Assistance Grants— House of Empowerment &Zoom Zoom #5—Staff gave a brief overview of the recent City Council action approving the performance agreements for the design assistance grant. V. ADJOURN Chairman Haney asked if anyone had any other comments. With no more comments being made, Chairman Haney adjourned the meeting. The meeting adjourned at 4:56 p.m. C. `4�e "Iz /zazs Y Kenneth Haney, Chairperson Date