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4B Sales Tax Corporation Minutes - 05/07/2026 MINUTES OF THE WICHITA FALLS 4B SALES TAX CORPORATION (WF4BSTC) MAY 7, 2026 PRESENT: Glenn Barham, President § WF4BSTC Members Michael Grassi, Vice-President § Nick Schreiber, Secretary-Treasurer § Craig Reynolds § Darrell Coleman § Stephen Santellana § Steve Garner § Mike Battaglino, Councilor, District 4 § Mayor& City Councilors Jeff Jenkins, City Manager § City Staff James McKechnie, Deputy City Manager § Paul Menzies, Assistant City Manager § Blake Jurecek, Assistant City Manager § Kinley Hegglund, City Attorney § Stephen Calvert, CFO & Finance Director § Monica Aguon, Deputy City Attorney § Kalee Robinson, Parks & Rec Director § Paige Lessor, Deputy City Clerk/Rec Secretary § Brett Hanes § Miniature Wonders Gary McClendon § Members of the Public Lynn Walker, writer § Times Record News ABSENT: 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 reviewed the financial report included in the Board packet, noting that the ending fund balance reflected in the report did not yet include the most recent sales tax revenue figures received from the State the previous day. He advised the Board that approximately an additional $500,000 should be added to the reported bottom-line balance based on the latest monthly sales tax collections. Mr. Menzies stated that sales tax revenues continue to perform very well. He explained that staff believes the increase is likely attributable to several factors, including inflation, increased Amazon-related sales activity, and business-to-business sales transactions. Mr. Menzies further informed the Board that, within the next few weeks, the Corporation would likely issue payment of its $1 million share toward the MSU Military Education Center project. He clarified that the payment would not negatively impact the Corporation's current fund balance because the obligation had already been accounted for in prior financial planning. He WF48STC Minutes Page 1 of 5 5/7/2026 also noted that a corresponding payment would be made on the 4A side. Additionally, Mr. Menzies reminded the Board that, during a previous meeting, the Board approved an annual contribution of up to $1.4 million toward a future City of Wichita Falls certificate of obligation issuance. He advised that the City's certificate of obligation process is continuing to move forward and that the City Council is expected to consider the matter at its next meeting. If approved by the Council, the funding is anticipated to close and be issued in the next few weeks. Mr. Michael Grassi asked about current interest rate trends. Mr. Stephen Calvert responded that interest rates have generally remained stable in the short term, although they have not decreased as much as the Federal Reserve had previously anticipated, remaining in approximately the 4% range. Mr. Calvert explained that while short-term investment rates have remained relatively steady, long-term borrowing costs have increased. He noted that the Corporation's anticipated borrowing costs associated with the upcoming certificate of obligation issuance will likely be higher than originally projected. Mr. Calvert stated that the initial financial projections were prepared prior to recent international conflicts impacting the market and economy. He further advised that staff expects to have more definitive information regarding pricing and bond rates within the next couple of weeks once the bonds are formally priced. 3. Consent Agenda: a) Approval of Minutes of April 2, 2026. Mr. Stephen Santellana moved to approve the consent agenda as presented. Seconded by Mr. Darrell Coleman, with no further board or public comment, the motion carried 5-0. 4. Consideration of a funding request from Miniature Wonders to support their planned destination and tourism project in Kiwanis Park (tabled by the Board on April 2, 2026). Mr. Paul Menzies explained that, following the previous meeting, the Board requested Miniature Wonders to provide both an operational budget and a sustainability plan to demonstrate the project's long-term viability and to ensure the project would remain privately operated rather than eventually becoming a burden on the City. Mr. Menzies stated that he and Kalee Robinson had recently met with representatives from Miniature Wonders after the organization submitted the requested information. He advised that the operational plan, sustainability plan, and a spreadsheet summarizing the financial projections were all included in the Board packet for review. Mr. Menzies then invited Miniature Wonders representative Brett Hanes to address the Board and discuss the submitted materials. Mr. Brett Hanes stated that he had presented the project to the Board during the previous meeting and believed the newly submitted operational budget and sustainability plan addressed the Board's concerns. Rather than repeating the prior presentation, Mr. Hanes encouraged the Board to discuss any specific questions or concerns they had regarding the project, the proposed operations plan, or the future expectations of the 4B Board regarding the development. Mr. Barham noted that one of the Board's primary concerns involved the approximately $500,000 fencing project and what would happen if the attraction was ultimately unsuccessful, leaving a large fenced area without an active development. In response, Mr. Hanes explained that the organization conducted a comparison study of similar miniature parks across the country to support its attendance projections. He stated that comparable parks averaged significantly higher annual attendance numbers than the 80,000 visitors projected for the Wichita Falls project. He further noted that the proposed park would be larger than many comparable facilities while charging lower admission prices. Based on the organization's operational analysis, Mr. Hanes WF4BSTC Minutes Page 2 of 5 5/7/2026 stated that the project's estimated break-even point would be approximately 25,000 annual visitors, which he believes demonstrates the project's financial sustainability. Mr. Hanes also addressed concerns regarding the possibility of project failure, explaining that if the organization were unable to sustain operations, the City would retain the improvements made to the property, including fencing, a proposed welcome center, and other site enhancements. He stated that the project would still leave the City with a more valuable and improved asset than the currently undeveloped property. Mr. Nick Schreiber asked the organization to provide additional information regarding private funding commitments, donations, and anticipated contributions supporting the project. In response, Mr. Hanes explained that the operational budget presented to the Board was based on projected operations after the park's anticipated opening in 2027. He stated that Miniature Wonders has already received approximately $462,000 in individual and corporate contributions, most of which has already been utilized toward project development. Mr. Hanes further advised that the organization has secured additional pledged contributions totaling approximately $250,000 to $300,000 and has also established a $250,000 line of credit to assist with short-term revenue needs. Mr. Hanes stated that the organization plans to continue pursuing grant opportunities, with many grant application cycles opening later in the summer. He explained that the operational budget anticipates approximately $150,000 annually in grant funding; however, the organization does not intend for grant funding to serve as a primary revenue source. He further noted that the operational budget includes plans to allocate approximately$217,000 annually into reserve funds based on projected attendance figures of 80,000 visitors per year in order to support long-term operational sustainability. Mr. Craig Reynolds stated that, in his experience with fundraising projects, he generally believes construction should not begin until the necessary funding has been secured. However, he acknowledged that visible progress on the project site could help encourage additional donations and demonstrate momentum to potential supporters. Mr. Hanes responded that the organization has already made substantial progress on the project, including completing exhibits, making payments toward a train attraction, and beginning work on the welcome center building. He emphasized that the organization intends to move forward with the park regardless of the Board's decision and stated that the fencing is necessary to protect the exhibits and allow operations to begin. Mr. Menzies clarified that the Board had discussed the possibility of requiring the organization to meet a fundraising threshold before any 4B funds would be released. Mr. Hanes stated that the organization believed such a requirement would make the project more difficult but advised that, if necessary, Miniature Wonders would proceed with a smaller-scale version of the project and continue moving forward with development plans. Mr. Santellana stated that the Board's hesitation stemmed from its responsibility to carefully protect taxpayer dollars, particularly for a highly visible public project. He noted concerns about funding projects that may not ultimately succeed. Mr. Hanes acknowledged and stated that the organization understood those concerns. Mr. Schreiber stated that while he supports bringing additional tourism and attractions to Wichita Falls, he would feel more comfortable if the Board's funding came later in the process after the project had demonstrated operational success and long-term viability. Mr. Hanes responded that, without the requested funding, the organization would likely begin with a smaller- scale version of the park by fencing and developing only a portion of the property initially, with plans to expand later as funding became available. He reiterated that the organization intends to move forward with the project regardless of the Board's decision. WF4BSTC Minutes Page 3 of 5 5/7/2026 Mr. Coleman asked for clarification regarding the estimated cost of the fencing project, noting that he had heard different figures discussed. Mr. Brett Hanes explained that the current estimated cost for the wrought iron fencing was approximately $363,000, with additional utility- related costs estimated at approximately $175,000. Mr. Coleman also complimented the organization on the detailed business and operational information provided to the Board, stating that the submission exceeded his expectations. He then asked whether similar miniature parks in Europe and Australia operate as nonprofit or for-profit entities. Mr. Hanes explained that only two miniature parks in the world currently operate as nonprofit organizations, one located in England and the other in the Netherlands. He stated that both parks generate millions of dollars annually for children's hospitals through their operations. Mr. Hanes further explained that Miniature Wonders' goal as a nonprofit organization is not to generate profits for itself, but rather to promote Wichita Falls and eventually reinvest excess revenues into future projects, capital improvements, and community-focused initiatives. Mr. Steve Garner shared his personal experience visiting Madurodam in the Netherlands as a child while living in Germany as part of a military family. He stated that, even decades ago, the miniature city was considered a major destination attraction in Europe and left a lasting impression on him and his family. Mr. Garner expressed his belief that the proposed Miniature Wonders project has the potential to become a significant tourism destination for Wichita Falls and attract visitors from across the country. He stated that he believes people would travel to Wichita Falls specifically to experience the attraction and expressed support for bringing such an opportunity to the community and future generations. During public comment, Gary McClendon expressed concerns regarding the prairie dog population in the proposed project area at Kiwanis Park. He recalled prior controversy involving prairie dogs at the site and questioned how Miniature Wonders planned to prevent prairie dogs from impacting the exhibits and visitor experience throughout the park. In response, Mr. Brett Hanes explained that each exhibit would be constructed on its own concrete pad, which would help prevent prairie dogs from burrowing directly beneath or around the displays. He also stated that, based on discussions with individuals familiar with prairie dog behavior, increased activity from visitors and train operations would likely encourage the animals to relocate away from the heavily populated areas of the park. Mr. Hanes further noted that the park would have maintenance staff available to address any issues within the facility on a regular basis. Mr. Barham asked for final questions and comments before adjourning into executive session. 5. Executive Session. Mr. Barham adjourned the meeting into executive session at 3:25 p.m. pursuant to Texas Government Code sections 551.087 and 551.072. He announced the meeting back into regular session at 4:12 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. Mr. Schreiber exited the meeting during executive session and did not return. Motions Mr. Garner made a motion to approve funding up to $360,000 to assist Minature Wonders with the cost of fencing that is commensurate with the design and materials described in the low bid presented. Seconded by Mr. Reynolds, the motion carried 6-0. WF4BSTC Minutes Page 4 of 5 5/7/2026 6. Adjourn. No further discussions took place, nor actions taken. Mr. Barham adjourned the meeting at 4:15 p.m. Glenn Barham, President Wichita Falls 4B Sales Tax Corporation WF4BSTC Minutes Page 5 of 5 5/7/2026