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4B Sales Tax Corporation Minutes - 09/04/2025 MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (WF4BSTC) SEPTEMBER 4, 2025 PRESENT: Glenn Barham, President § WF4BSTC Members Michael Grassi, Vice-President § Nick Schreiber, Secretary-Treasurer § Stephen Santellana § Craig Reynolds § Darrell Coleman § Steve Garner § Austin Cobb, Councilor at Large § Mayor & City Councilors Tom Taylor, Councilor, District 5 § Jeff Jenkins, City Manager § City Staff James McKechnie, Deputy City Manager Paul Menzies, Assistant City Manager § Kinley Hegglund, City Attorney § Stephen Calvert, CFO & Finance Director § Monica Aguon, Deputy City Attorney § Karen Montgomery-Gagne, Principle § Planner § Chris Horgen, PIO § Paige Lessor, Executive Legal Assistant § Ron Kitchens, CEO § Chamber of Commerce 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 presented the financial summary, stating that sales-tax revenues had increased roughly one percent compared with the prior year's first nine months, which was encouraging. He added that interest income was also running ahead of projections, though that trend was unlikely to continue over the next year. Mr. Menzies reported that the City Council had approved a $3.5 million loan to the 4A Corporation for the Sikes Center Mall acquisition project and the downtown development project, which the 4B Board had approved the previous month. After accounting for these items, approximately $4.4 million remained available for new projects. With no questions, the Board moved to the consent agenda. 3. Consent Agenda: a) Approval of Minutes of August 7, 2025, and August 14, 2025. b) Approval of Downtown Improvement Grant projects at 800/804 Indiana, 908 Indiana, 804 Lamar, 809 Ohio, 624 Indiana, 816 Indiana, 617 7th St/701 Indiana,814 Indiana, 719 Scott, and 903 Austin. WF4BSTC Minutes Page 1 of 9 9/4/2025 Mr. Menzies highlighted an informational item concerning downtown improvement grants, particularly a project at 903 Austin Avenue led by Carol Castro. Although technically outside the established Downtown Improvement District, the site borders the district and is adjacent to vacant or parking-lot properties. Because the project met all program criteria and the bylaws allow case- by-case consideration of adjacent parcels, Mr. Menzies had administratively approved it so work could proceed without delay. Board members then briefly reviewed how the district boundaries are determined. Mr. Menzies confirmed that the 4B Board sets them and last decided two to three years ago to maintain the existing limits. Mr. Craig Reynolds raised concern about setting a precedent for properties outside the area, while Mr. Steven Santellana recalled the Board's earlier consensus to evaluate nearby projects individually rather than formally expand the boundary. Mr. Barham concluded the discussion by clarifying that approval of the consent agenda would include the 903 Austin project. Mr. Steve Garner made a motion to approve the consent agenda as presented. Seconded by Mr. Darrell Coleman, with no further discussion, the motion carried 7-0. 4. Consideration of the Corporation's Fiscal Year 2026 Budget. Paul Menzies Proposed Budget Figures During consideration of the Fiscal Year 2026 Budget, Mr. Menzies explained that the proposed budget figures were displayed in the far-right column of the financial report, allowing for easy comparison with current-year numbers. He noted that sales tax revenues were projected to remain steady at approximately $5.1—$5.2 million, consistent with a conservative forecasting approach. Interest income was budgeted slightly lower due to both reduced fund balances from recent project commitments and anticipated Federal Reserve rate cuts. Mr. Menzies also reminded the Board that TIF 2 would conclude at the end of the current year, with a final reimbursement payment to the 4B Corporation. The parking garage sale completed in the prior year would roll off the report, and several debt service payments were approaching completion, including final payments on Castaway Cove, the Maplewood Avenue Extension Project (Kemp to Lawrence), and the Champions Course Golf Course Renovation Project. Moving into program funding, Mr. Menzies stated that the Downtown Improvement Grant Program would continue at $250,000 for FY2026, with a maximum annual award of $12,500 per project. Other standard operational allocations—such as Convention and Visitors Bureau (CVB) incentive funding, professional fees and advertising, Directors and Officers insurance, and administrative charges to the City for legal and financial services— were reviewed, with no significant changes proposed. Mr. Menzies then provided updates on open projects: 1. 713 Indiana Avenue Redevelopment Project—A $250,000, three-phase project originally proposed by Will Kelty for demolition and redevelopment of property adjacent to the Hoover Rogers Law Firm. The final phase, tied to establishing a sales-tax-generating business, remains pending. WF4BSTC Minutes Page 2 of 9 9/4/2025 2, Bicycle Lanes Project— No funds have been expended this year due to staffing transitions, but they are expected to be used soon. 3. District 5 Park Improvements (Sunset Terrace Park Expansion) — A legacy allocation dating back over a decade intended to acquire adjoining lots near Sunset Terrace Park. Menzies explained that while the intent was to purchase nearby parcels if they became available, the current funding of roughly $26,000 would be insufficient. Following discussion among Mr. Garner, Mr. Santellana, Councilor Tom Taylor, and others, the Board agreed there was no reason to keep the funds encumbered and directed that they be rolled back into the unallocated fund balance. Next, Menzies reviewed several ongoing or multi-year initiatives: 4. Sheppard Air Force Base Consultant Contract(D.C. Consultant)— Entering its third and final year of a three-year commitment by the board. 5. Sports Complex Improvements Project — Originally funded at $197,000 for fencing and restroom upgrades at the softball fields on the north side; construction and restroom expansion at the north field are underway. 6. Circle Trail Extension (Lucy Park to Camp Fire Section) — The Corporation's 20% local match for construction; the project is currently under construction, with completion expected in spring 2026. 7. Sheppard AFB BASH Program (Bird/Aircraft Strike Hazard Mitigation) — A three-year partnership commitment; the base has not yet invoiced the Corporation for the current year, but funding for the third year will be budgeted in FY2026. 8. MSU's Military Education Center— Ongoing funding remains in place. 9. YMCA Aquatic Center Project — A multi-year commitment paid in three installments (Calendar Years 2024, 2025, and 2026), with the final payment to be budgeted for next year; construction of the new facility is well underway. 10. Sheppard Strobe Light Runway Repair Project — The City's $1 million commitment was split between 4A and 4B ($500,000 each). The project has gone to bid, with the lowest bid near $1.88 million after one bidder was disqualified. City staff, including Karen Gagne, explained that the project is moving forward, and the north-end portion will be funded from existing allocations. 11. The Falls Study (Waterfall Evaluation Project) — Conducted by Garver Engineering, scheduled for completion in October 2025. The Falls will be temporarily shut off for inspection the week following the meeting, with results expected at the November 2025 meeting. 12. Sikes Center Mall Acquisition and City National Building Renovations—Both ongoing economic development projects previously approved by the Corporation and Council. Mr. Menzies also noted that several older projects had formally closed, including the Restoring the Past facade improvements and the Chelsea Plaza (804 Lamar) project, both of which expired and were rolled back into fund balance. WF48STC Minutes Page 3 of 9 9/4/2025 In closing, Mr. Menzies reported that the Corporation would begin FY2026 with approximately $7.5 million in unencumbered funds. The Board agreed to incorporate the discussed changes and will formally approve the FY2026 Budget after Ron Kitchens presents his related funding request. Ron Kitchens Presentation Mr. Ron Kitchens opened his remarks by distributing an updated copy of his funding request, noting that the totals had decreased slightly due to a correction. He outlined three main components of the request: (1) continuation of the Washington, D.C. consultant supporting Sheppard Air Force Base, which is in the third year of a previously approved three-year commitment but requires annual briefings under policy; (2) continuation of retail- recruitment strategy work, including consultant services shared 50/50 between the 4A and 4B corporations for redevelopment of the Sikes Center Mall and community-wide retail attraction; and (3) funding for military-support programs under the Sheppard Engagement Initiative, specifically the AIT (Airmen in Training) Tours newcomer-orientation bus program and the "Home Away From Home" host-family program. • Sheppard Air Force Base Initiatives Mr. Kitchens described how the AIT Tours now operate nearly every Tuesday of the year (about 46 weeks), typically carrying 150 airmen per week on five to seven community loops that include historical narration and photo stops at local landmarks such as The Falls. Attendance varies depending on weekly arrivals from San Antonio, but participation has been strong and highly appreciated by the base, which views Wichita Falls as the only community in the nation offering such a program. He then explained the companion Home Away From Home program, which pairs local families with airmen seeking community connections. Contrary to expectations that it would serve mostly first-assignment personnel, most participants have been on their second or third assignments and are seeking local support. Mr. Kitchens emphasized the program's rigorous screening and home-inspection process, including background checks and in- person visits by staff to ensure compliance with Air Force standards regarding safety, firearms, and household conditions. Out of current applicants, four matches are complete and eight more are pending, with projections of 35-40 successful matches within a year. He noted that nearly all applicants so far have been women, which is an unexpected demographic shift. Mr. Kitchens concluded that both programs have been carefully and deliberately developed to ensure credibility and safety, that they are fostering meaningful community connections for airmen, and that he is requesting continued 4B funding to sustain their growth and success. • Downtown/ "Urban Core" Redevelopment Mr. Kitchens continued by explaining that Forward Wichita Falls had officially assumed the sales and development functions previously handled by the Downtown Development Authority, clarifying that his team is not responsible for event programming such as parades, art walks, or marketing promotions. Instead, their focus is on strategic business development—assembling business cohorts, recruiting tenants, and creating a sustainable downtown investment plan. Mr. Kitchens stated that the first priority is to redefine the boundaries of the "urban core," which he believes were drawn incorrectly, as many properties most suitable for redevelopment fall outside the current limits. For planning WF4BSTC Minutes Page 4 of 9 9/4/2025 purposes, he proposed that the downtown study area extend from MPEC to the Warehouse District near P2, encompassing the hospital area and stretching to the railroad tracks. His team plans to conduct a comprehensive inventory of all commercial buildings within that expanded area—evaluating which are vacant, which are functional, and which are beyond feasible repair—to understand the true scope of opportunities and challenges. Mr. Kitchens emphasized the need for a proactive retail recruitment strategy, moving away from the old approach of"waiting for the phone to ring." His staff has already met with 35-40 restaurant owners, about half from out of town, to actively market available spaces and incentives. He also highlighted the potential to leverage $1.5 billion in anticipated hospital investments by recruiting complementary retail and service uses nearby. The next step, he explained, is to identify buildings with significant improvement costs or structural issues that render them economically unviable. Some properties, such as the historic brick structure once purchased by the Downtown Development Authority near the brewery, would require renovation costs exceeding six times their potential rental return. Kitchens suggested exploring creative redevelopment options—such as retaining facades and constructing new interiors, or targeted demolitions—to ensure public dollars are invested prudently. He further proposed developing a plan to address "problem properties" and blighted buildings downtown, particularly along the corridor between his office and the nearby hotel, where private redevelopment is unlikely without public intervention. By establishing accurate cost estimates for acquisition and demolition, his team could later return to the Board with actionable proposals. Mr. Kitchens also underscored the importance of working closely with City Code Enforcement, noting that while some business owners have unfairly labeled city inspectors as anti-business, his experience has shown the opposite—that City staff are competent but underfunded and overextended. Forward Wichita Falls, he said, intends to publicly support enforcement efforts, defending the City when property owners resist compliance, and helping hold owners accountable for neglect that diminishes downtown's value and appearance. Mr. Kitchens explained that the ultimate goal is to collect reliable data that can be used to advocate for additional City Council funding to address core downtown infrastructure and redevelopment needs. He shared that the Economic Development Corporation (4A) has already committed additional funds to support this work. His team is also coordinating with mall tenants—eight to ten retailers—who are interested in relocating downtown, though many spaces will require extensive upgrades and fire code coordination. Kitchens closed this portion of his remarks by emphasizing that revitalizing downtown requires manpower, strategic planning, and patience—not just funding. His team is committed to assembling local retailers, guiding code collaboration, and supporting both property owners and City staff to create a cleaner, more business-ready urban core. He apologized for an earlier clerical error in his written request but noted that the correction lowered the total funding amount being requested. Mr. Santellana inquired whether this request would go toward funding another position. Mr. Kitchens confirmed that part of his funding request would be used to establish a new full-time position dedicated to downtown development. He explained that the role would not be a traditional "economic developer," but rather someone with a commercial construction or architectural background—a practical, hands-on professional who understands how to evaluate buildings, identify redevelopment needs, and work with business owners to make projects feasible. This staff member would help perform structural assessments, coordinate with engineers, and provide data-driven recommendations on WF4BSTC Minutes Page 5 of 9 9/4/2025 redevelopment opportunities, ensuring that future funding proposals to the Board are backed by solid analysis. The position's budget would also include some overhead and consulting costs for technical studies and engineering work needed to support those recommendations. When asked by Mr. Garner whether the request was intended as a one-time or recurring expense, Mr. Kitchens replied that all Forward Wichita Falls projects are budgeted annually. He said the new position would initially focus on completing an inventory and feasibility review over the coming year, after which the need for continued funding would be reassessed. If the initiative proved successful, future efforts could shift toward implementing redevelopment—acquiring, demolishing, and repurposing properties for productive use. • Discussion Concerning Sheppard AFB Consulting Firm Mr. Reynolds then raised questions regarding the Cornerstone contract, the consulting firm representing the interests of Sheppard Air Force Base in Washington, D.C. Noting this was the third year of the partnership, he asked whether it would be beneficial to add a second consultant. Mr. Kitchens responded that in his prior experience in Corpus Christi, having multiple consultants could be highly effective, mainly when one focused on military and port interests while others specialized in House versus Senate relationships. However, he emphasized that Wichita Falls first needed to refine its expectations and "become better consumers" before adding another firm. He and Mr. Barham currently meet with the lobbyists twice a month to evaluate progress, and both agree that Sheppard's mission must be actively protected amid national defense shifts favoring unmanned systems and reduced pilot training time. Mr. Kitchens warned that the base's training footprint could be reduced by as much as 60-70%, reinforcing the need for stronger advocacy and pursuit of new missions. Mr. Kitchens added that the Forward Wichita Falls team, now including Kirk Peterson, a retired deputy commander from SAFB, was already increasing engagement with key military and federal contacts. He suggested future advocacy might also target education and transportation funding opportunities—such as resources for Midwestern State University or regional infrastructure—once priorities are clearly defined. To clarify financial limits, Mr. Barham explained that as a 501(c)(3) organization, Forward Wichita Falls can spend no more than 20% of its operational budget on consulting expenses (roughly $150,000 total, capped at $30,000 annually for Cornerstone). In contrast, the Chamber of Commerce, structured as a 501(c)(6), can allocate unlimited consulting funds as long as they qualify as ordinary business expenses, since the City's payments to the Chamber are not treated as charitable donations. Mr. Kitchens confirmed that consultant payments are processed through the Chamber's business account, ensuring compliance with IRS rules. Budget discussion followed, clarifying that while the lobbyist's contract ($175,000) was already included in the FY2026 budget, the proposed additions for retail strategy ($78,000), military support ($36,000), and downtown development ($200,000) would be added line items. In response to Darrell Coleman's questions about the AIT bus tours program, Mr. Kitchens said the City currently provides the buses, so no direct expense has been incurred yet. However, because the program has exhausted its allotted bus hours under the federally funded Falls Ride system, they plan to transition to City-owned trolleys operated under different (non-federal) regulations. The Home Away From Home component includes roughly $8,000 for background checks and security screening. WF4BSTC Minutes Page 6 of 9 9/4/2025 • Continued Discussion regarding Downtown Redevelopment Mr. Coleman commended the idea of expanding the downtown "urban core" footprint and raised concerns about visible blight, specifically noting numerous vacant pole sign structures along Broad Street. He remarked that the metal from those signs could easily be recycled and suggested they detract from the area's appearance. Mr. Kitchens explained that property owners intentionally leave the empty signs standing because, under current regulations, removing them would forfeit their grandfathered status, meaning they could not replace them later without going through the permitting process and risk being denied. He suggested the City could offer an incentive to remove them by grandfathering the right to replace a sign in the same location, formalized by filing a deed notation, thereby addressing blight without penalizing property owners. Continuing the blight discussion, Mr. Kitchens said his team intends to document and inventory such issues as part of the downtown redevelopment study, including other problem sites like the grain elevators and the former General Mills building. He revealed they are working closely with a demolition company on plans to remove the grain silos and elevator structures at no public cost, with the private owner funding cleanup and redevelopment. Mr. Barham confirmed that Kitchens was referring to both the old General Mills and Attebury grain elevator properties, while Mr. Santellana asked whether Attebury was still in operation. Mr. Kitchens clarified that Attebury had gone out of business, sold the property, and ceased operations nearly two years ago. He added that the new owner intends to demolish the silos—possibly as soon as January 1st—to resolve environmental remediation concerns and later redevelop the site, potentially utilizing its rail access as an asset. Zoning decisions for any new use would ultimately rest with the City Council, though no commitments have been made. • Sikes Senter Mall Update Mr. Kitchens provided an update on the Sikes Senter Mall acquisition, explaining that the remaining issues with TILT, one of the parties involved in the transaction, had been resolved. The final purchase documents were in TILT's possession, with both sides' attorneys reviewing the agreements. Kitchens stated that the buyer was expected to be in full compliance by September 15, 2025, marking the "go-hard" date for the deal, and the closing was anticipated between October 1 and October 15, 2025. He noted that his office was currently overwhelmed with transaction details but expressed optimism that this experience would serve as a valuable learning process for managing future public-private partnerships. Paul Menzies and Karen Gagne were assisting closely with the project, and all other components of the deal were progressing as previously briefed. Following the update, Mr. Grassi asked for clarification on the $200,000 Downtown Development funding request, inquiring about the prior funding source. Mr. Kitchens explained that previously, no one had been performing this specific redevelopment work. The former Downtown Wichita Falls Development organization received $150,000 in funding from the 4A Corporation, which covered salaries and overhead for farmers' market operations and general organizational expenses, but not economic development or property recruitment efforts. When Forward Wichita Falls assumed responsibility, they expected to receive inventories of buildings and available properties, but discovered "the cupboards were bare"—no data or documentation existed. Consequently, the requested 4B funds would specifically support building an actionable redevelopment plan. Kitchens confirmed that the 4A Corporation continues to provide $150,000 annually to Forward Wichita to fund small- WF4BSTC Minutes Page 7 of 9 9/4/2025 business support efforts and related overhead, which complements but does not duplicate the new 4B request. Mr. Santellana asked how often Forward Wichita Falls would provide progress reports. Kitchens replied that his team already briefs the 4A Economic Development Corporation monthly and would gladly provide 4B updates on the same schedule or as often as desired. Santellana suggested periodic rather than monthly updates, and Kitchens agreed, assuring the Board that they would receive regular status reports on both downtown redevelopment and military support programs. The discussion then shifted to defining and approving the boundaries of the downtown "urban core". Mr. Barham asked whether the Board or City Council would ultimately establish those limits. City Attorney Kinley Hegglund clarified that the Board would set the proposed boundaries, subject to Council review and approval. Mr. Grassi questioned how the proposed expansion might overlap with the Central Business District boundaries approved several years earlier. Mr. Menzies explained that the two areas would generally overlap but not entirely coincide, emphasizing that the 4B Downtown Improvement Grant boundaries are set independently by the Board and could remain unchanged even as broader planning boundaries expand. Mr. Kitchens added that his team would likely return later with a formal recommendation for new boundaries and incentive guidelines once sufficient data and investment analysis are compiled. Mr. Menzies further suggested that before making recommendations, it would be valuable to gather community input and align this work with a revived Downtown Steering Committee, which the City Council is expected to form later in the year. That committee could also evaluate related items such as the unused downtown TIF district funds, which still have roughly ten years remaining before expiration. Mr. Menzies offered to prepare a future presentation with possible options for expanded boundaries or funding frameworks after more research and stakeholder engagement. With no further questions on the budget presentation or Ron Kitchens's requests, Mr. Barham concluded the discussion, and the Board prepared to recess into executive session. 5. Executive Session. Mr. Barham adjourned the meeting into executive session at 3:59 p.m. pursuant to Texas Government Code sections 551.087, 551.071, and 551.072. He announced the meeting back into regular session at 4:41 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. 6. Approval of the Corporation's Fiscal Year 2026 Budget. Mr. Barham made a motion to approve the WF4BSTC's FY 2026 Budget with the following amendments: • The District 5 Park Improvement Funding will be transferred from encumbered funds to available funds. • Funding for the Sheppard AFB — DC Consultant will be increased by $5,000, making the total funding amount $75,000. • Include the funds requested from the Chamber: o $36,000 for Sheppard AFB initiatives o $200,000 for Downtown Development WF4BSTC Minutes Page 8 of 9 9/4/2025 Seconded by Mr. Coleman, and no further comments or questions, the motion carried 7- 0. 11. Adjourn. No further discussions took place, nor actions taken. Mr. Barham adjourned the meeting at 4:42 p.m. av%_4 Glenn Barham, President Wichita Falls 4B Sales Tax Corporation WF4BSTC Minutes Page 9 of 9 9/4/2025