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4B Sales Tax Corporation Minutes - 10/02/2025 MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (WF4BSTC) OCTOBER 2, 2025 PRESENT: Glenn Barham, President § WF4BSTC Members Michael Grassi, Vice-President § Nick Schreiber, Secretary-Treasurer § Stephen Santellana § Craig Reynolds § Darrell Coleman § Steve Garner § Tim Short, Mayor § Mayor & City Councilors Tom Taylor, Councilor, District 5 § Paul Menzies, Assistant City Manager § City Staff Kinley Hegglund, City Attorney § Stephen Calvert, CFO & Finance Director § Monica Aguon, Deputy City Attorney § Fabian Medellin, Planning Manager § Chris Horgen, PIO § Paige Lessor, Executive Legal Assistant § Dusty Potter, President § Downtown Development Laura Mayfield, VP § Rodney Case, Treasurer § Ismael Duran § Potencia Projects David Coleman, Chairman § Hotter'n'Hell Hundred 1. Call to Order. Mr. Glenn Barham called the meeting to order at 3:00 p.m., noting that a quorum was present. 2. Report of Financial Condition. Mr. Paul Menzies reported that sales tax revenues have remained strong, up one to two percent from the previous year, placing the Corporation ahead of budget expectations. Approximately $5 million remains available for new projects. The FY2026 budget, approved by the Board in September, has also been approved by City Council. 3. Consent Agenda: a) Approval of Minutes of September 4, 2025. The minutes were not yet available for review. The Board agreed to defer approval until the next meeting. 4. Public hearing regarding a funding request from Downtown Wichita Falls Development to support downtown events. WF4BSTC Minutes Page 1 of 7 10/2/2025 Mr. Barham opened the public hearing at 3:03 p.m. Representatives from Downtown Wichita Falls Development (Board Chair Dusty Potter, Vice Chair Laura Mayfield, and Treasurer Rodney Case) presented a request for$75,000 in financial support to sustain key downtown events and operations, including the After Hours Artwalk, City Lights Festival and Parade, and management of the Downtown Farmers Market. Mr. Potter explained that the nonprofit had historically received funding support from the 4A Economic Development Corporation, which previously covered 50% of salaries and operating costs. With the loss of that funding, the organization is now entirely volunteer-run and facing a significant budget shortfall. DWFD reported annual operating costs of approximately $224,000 against event revenue of roughly $148,500, creating a $75,000 gap. While the organization's major festivals, such as the St. Patrick's Day Festival and Cajun Fest, are self-sustaining, the Artwalk, Farmers Market, and City Lights events operate at a loss despite generating substantial economic value and community benefit. Mr. Potter highlighted significant community and economic impact generated by these events, noting approximately $1.2 million in economic benefit from the Artwalk, $980,000 from the Farmers Market, and $196,250 from City Lights, totaling nearly $2.4 million. The monthly Artwalk brings approximately 6,000 to 9,000 attendees per month, while the Farmers Market brought approximately 16,000 visitors through August of this year. Mr. Potter stated that without the WF4BSTC's support, the organization will likely be forced to cease these events within 9-12 months, with the Farmers Market and other initiatives ending in early 2026. Mr. Case emphasized that denying support would likely result in the Farmers Market operation reverting to the City and discontinuing the other events due to lack of resources and staffing. The group requested the WF4BSTC's investment to allow these downtown programs to continue serving the community and local businesses. During the question-and-answer portion of the public hearing, board members and city officials asked DWFD for clarification on its financials, operations, and future plans. Mr. Darrell Coleman asked for a detailed breakdown of DWFD's reported $224,000 annual expenses. Mr. Case confirmed that an itemized spreadsheet showing costs by event and intended use of funds had been provided. However, some board members noted they did not receive all the supplemental materials. Mr. Potter elaborated that significant events such as Cajun Fest and St. Patrick's Day are profitable. In contrast, community-focused events like the Farmers Market, Artwalk, and City Lights operate at a loss. He explained that past reporting errors had overstated the City's revenue share from the Farmers Market, since prior staff had failed to include the market manager's salary as an expense. Mr. Craig Reynolds inquired about the composition of the DWFD board. Mr. Potter listed a diverse group of local business owners, professionals, and community members, noting that none of the presenters personally owned downtown businesses and that their involvement stemmed from civic commitment. Board members commended the group's diversity and volunteerism. Discussion then turned to the profitability of DWFD's events. Mr. Potter and Mr. Case again confirmed that Cajun Fest and St. Patrick's Day remain self-sustaining through ticket sales and sponsorships. Still, those revenues are WF4BSTC Minutes Page 2 of 7 10/2/2025 insufficient to subsidize the unprofitable events. Mr. Case emphasized that DWFD already generates about two-thirds of its funding internally and needs the remaining third to close the operational gap left by the loss of 4A funding. Responding to questions from Mr. Barham, Mr. Potter and Mr. Case explained that DWFD has applied for grants from foundations such as Cannedy and Bridwell, which have supported them in the past. However, results are pending, and future eligibility may change given the organization's shift away from direct economic development. When asked about DWFD's mission, Vice Chair Laura Mayfield explained that its current focus is maintaining a vibrant downtown and improving quality of life through community events and business support, rather than recruiting new businesses or redeveloping property as in prior years. Mr. Nick Schreiber requested specific cost estimates to maintain the Farmers Market and Artwalk, and Mr. Potter responded that the Farmers Market loses about $2,000 monthly (approximately $24,000 annually). At the same time, each Artwalk results in a $1,500 loss, mainly due to City charges for trolley use, barricades, and trash services. The City receives about $20,000 annually in Farmers Market fees, which DWFD said has not been reinvested in facility improvements. Officials discussed whether the City could assume management of the Farmers Market in the future, and several expressed openness to that possibility. Mr. Potter noted that the model is not sustainable long-term despite heavy volunteer involvement. Mr. Stephen Santellana asked about DWFD's efforts to secure more sponsorships or grants. Mr. Potter said they prefer a one-year funding request to allow for progress tracking before seeking future assistance, rather than a multi-year commitment. He and Mr. Case reiterated that the $75,000 request would sustain operations for the next year while DWFD works to strengthen partnerships and reduce expenses. Discussion also covered seasonal operations of the Farmers Market and vendor diversity, with Potter highlighting that it runs year-round on Saturdays and offers meats, eggs, baked goods, and artisan products even during the winter months. Questions arose about vendor fees, with Mr. Potter explaining that the City sets booth rental rates under an existing five-year agreement, limiting DWFD's flexibility to adjust pricing. Regarding the Artwalk, he confirmed that vendors in the Farmers Market area pay small booth fees while those along the streets participate for free, a policy the organization hesitates to change due to potential community backlash. As the discussion concluded, it was confirmed that the request is a one-time funding proposal for the current fiscal year, though DWFD hopes future asks will decrease as sponsorships and efficiencies improve. Mr. Potter added that while the volunteer workload has been demanding, the experience has strengthened operations and increased organizational efficiency. After no further questions or comments, Mr. Barham closed the public hearing at 3:27 p.m. 5. Public hearing regarding a funding request from Potencia Projects to support the Loco for Cinco event downtown. WF4BSTC Minutes Page 3 of 7 10/2/2025 Mr. Barham opened the public hearing at 3:28 p.m. Mr. Ismael Duran presented on behalf of Potencia Projects seeking $9,000—about 50% of the event's operating need—to support Loco for Cinco, a spring downtown festival designed to platform Hispanic culture while remaining broadly inclusive and small-business friendly. Mr. Duran traced the event's origins to Potencia's 2015 arrival on Travis Street and early volunteer work with Downtown Development (VIP for St. Patrick's Day, Cajun Fest), noting they launched Potencia Projects after seeing that prior festivals didn't fully reflect Wichita Falls' diversity. Loco for Cinco complements their fall Los Muertos event and focuses on three aims: culture (authentic programming, live mural painting), community (welcoming, family-accessible format), and economic impact (foot traffic for local vendors). Key milestones included: 2019 debut in Travis Park with free admission (partnering with the Mexican American Veterans Association); 2021 addition of a boxing invitational with Rival Boxing; 2022 launch of a mural program (two muralists paid $1,000 plus$200 supplies; artists set up free) and the start of $5 admission to sustain growth; 2023 sanctioning of the boxing event to create a regional draw (plus higher-profile music acts and River Square dancers), though heavy rain disrupted that year; and 2024 relocation to Bridwell on a week's notice—thanks to CVB, Fire, and City support—averting another weather setback and setting up 2025 gains. In 2025, they expanded reach via free entry for veterans, military, first responders, and spouses (through sponsorship), and a car show with cash prizes to attract out-of-town participants. Reported impacts: approx. $1.1 M economic impact in 2022 (approx. 4,300 attendees), $66,000 in 2023 (rain-impacted), and a 38% jump to nearly $1.5M in 2025 with approx. 6,000 attendees; attendee demographics generally mirror citywide demographics, and regional pull is attributed to sanctioned boxing, cash-prize car show, CVB promotion, and the Bridwell venue. Despite growth, Potencia's own marketing spend has been minimal (approx. $200, mostly organic); the $9,000 request will help cover a lean budget that lists operations (approx. $30k for staging, security, insurance, decor, sanitation, signage, etc.), entertainment (approx. $13k, largely underwritten in-kind by Ultra Productions), boxing costs (belts, sanctioning, doctors, referees, hotels), and modest volunteer support (meeting meals). Mr. Duran emphasized volunteer strain (days running 7 a.m. to —3 a.m.) and the need for heavy equipment and storage solutions as the footprint now spans roughly a city block along Travis and 8th (including Mr. White's lot). Overall, Potencia framed the ask as a targeted boost to sustain momentum, improve safety and infrastructure, and continue delivering an inclusive cultural and economic driver for downtown. Board members appreciated the detailed proposal and the evident passion behind the Loco for Cinco festival. Mr. Barham clarified that the $9,000 funding request pertained to a single event—the Loco for Cinco festival—and not multiple events. Mr. Schreiber inquired about the map slide showing the regional reach of attendees, confirming that the influx of visitors came for a one-day event. Mr. Duran elaborated that the sanctioned boxing competition is a major draw, attracting fighters from across the region who travel to Wichita Falls to earn qualifying points in official matches, which helps expand the festival's geographic impact. WF4BSTC Minutes Page 4 of 7 10/2/2025 Mr. Coleman asked about Potencia Projects' nonprofit status and finances, and Mr. Duran confirmed it is a registered 501(c)(3) organization. Mr. Coleman further asked whether the event turned a profit. Mr. Duran shared that the most recent festival generated approximately $30,000 in profit, noting that this was the first year they did not have to draw from personal funds to cover expenses. He explained that roughly half of that profit—about $15,000---had already been reinvested or donated, as the organization continues building seed funding toward long-term self-sufficiency. Hosting the event costs around $60,000 annually. While they have succeeded in keeping entertainment costs low through in-kind work from Ultra Productions and volunteers, they aspire to one day afford higher-level acts. As the discussion closed, Mr. Duran acknowledged the board's openness to hearing their request and said that simply raising awareness about the organization and its mission was a valuable step. Board members praised the event's community impact and enthusiasm. After no further questions or comments, Mr. Barham closed the public hearing at 3:44 p.m. 6. Public hearing regarding a funding request from Hotter'n Hell Hundred to support the purchase and installation of lights at the WeeChiTah Bike Motocross Track at 404 Burkburnett Road in Wichita Falls. Mr. Barham opened the public hearing at 3:45 p.m. Mr. David Coleman, chairman of Hotter'n Hell and representative of its two nonprofit entities—the Wichita Falls Bicycling Club and Streams & Valleys—introduced the project. Mr. Coleman began by thanking the board for its previous support in funding the start arch used at both the annual Hotter'n Hell Hundred and the THOR gravel ride, sharing photos of the arch in use and expressing appreciation for the WF4BSTC's investment in projects that enhance local cycling events. Mr. Coleman then turned to the BMX lighting project, explaining that the track is a volunteer-run facility near Berand's Landing, mainly serving youth riders ranging from toddlers on balance bikes to teenagers. He highlighted the track's community value, noting that it offers children a safe, structured environment to exercise, compete, and build confidence, with races culminating in awards and trophies. The facility sustains itself through entry fees and small retail sales. Still, a significant limitation is the lack of lighting, preventing evening races after daylight savings time begins in November. Without lights, racing halts for several months, reducing participation and economic activity tied to the events. To solve this, Hotter'n Hell has already purchased lighting poles and fixtures and secured a local electrical contractor—a parent of one of the racers—who volunteered to install the lights, run conduit, and mount switches. The total project cost is approximately $24,400, including materials and labor. Mr. Coleman requested $12,200 in funding assistance to cover half the total expense. He emphasized that lighting the track would allow for nighttime races, especially beneficial during hot summer months and throughout the winter season, when limited daylight currently prevents weekday events. Night races would also enhance the track's ability to host pre-race events and national competitions, which bring significant out-of-town participation and tourism. Mr. WF4BSTC Minutes Page 5 of 7 10/2/2025 Coleman estimated that about half the 500 annual youth participants come from outside Wichita Falls, contributing to local restaurants and lodging. Board members responded favorably and asked follow-up questions about project details. Mr. Barham confirmed that the total cost included all purchased materials. Mr. Reynolds and Mayor Short inquired whether other BMX tracks in the region have lighting; Mr. Coleman was unaware of any, suggesting Wichita Falls could be a "trendsetter" for evening racing. The board discussed the potential for increased overnight stays and spectator activity. Mr. Darrell Coleman asked whether Hotter'n Hell might shift all races to the evening to beat the summer heat—an idea David Coleman said was likely once lighting is installed. Currently, races occur twice weekly (Wednesday and Saturday), with Saturday being the only viable race day during the winter months due to daylight limits. Further discussion covered anticipated electric costs, which Mr. Coleman acknowledged would increase, though he believed higher participation and entry fees would offset the added expense. The group also discussed backup power options, including connecting a Hotter'n Hell generator as a potential contingency. Mr. Schreiber confirmed that local subcontractors were consulted, with the chosen electrician offering discounted labor "as a labor of love" because his son races at the track. After no further questions or comments, Mr. Barham closed the public hearing at 3:56 p.m. 7. Executive Session. Mr. Barham adjourned the meeting into executive session at 3:56 p.m. pursuant to Texas Government Code sections 551.087, 551.071, and 551.072. He announced the meeting back into regular session at 4:47 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 Downtown Wichita Falls Development to support downtown events. Mr. Santellana made a motion to table item number 8 until WF4BSTC's next meeting in November. Seconded by Mr. Grassi, and after no public comment or further discussion, the motion carried 7-0. 9. Consideration of a funding request from Potencia Projects to support the Loco for Cinco event downtown. Mr. Garner made a motion to approve funding to support Potencia Projects' Loco for Cinco event in an amount not to exceed $9,000. Seconded by Mr. Reynolds, and after no public comment or further discussion, the motion carried 6-1, with Mr. Schreiber voting no. 10. Consideration of a funding request from Hotter'n Hell Hundred to support the purchase and installation of lights at the WeeChiTah Bike Motocross Track at 404 Burkburnett Road in Wichita Falls. Mr. Santeliana made a motion to approve funding for the purchase and installation of lights at the WeeChiTah Bike Motocross Track in an amount not to exceed $12,200. Seconded by Mr. Garner, and after no public comment or further discussion, the motion carried 7-0. WF4BSTC Minutes Page 6 of 7 10/212025 11. Adjourn. No further discussions took place, nor actions taken. Mr. Barham adjourned the meeting at 4:50 p.m. Ls0--i-k gkINC(VA"—t----N Glenn Barham, President Wichita Falls 4B Sales Tax Corporation WF4BSTC Minutes Page 7 of 7 10/2/2025