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Res 077-2026 funding up to $24,000 to OG Cellars LLC to assist with fire suppression system upgrades 08/04/2026 Resolution No. 77-2026 Resolution approving the programs and expenditures of the Wichita Falls Type B Sales Tax Corporation (4B) by authorizing funding up to $24,000 to OG Cellars LLC to assist with fire suppression system upgrades at their new tasting room at 2611 Plaza Parkway (Century Plaza) in Wichita Falls WHEREAS, Texas Local Gov't. Code § 501.073(a) provides "The corporation's authorizing unit will approve all programs and expenditures of a corporation and annually review any financial statements of the corporation"; and, WHEREAS, on June 4, 2026, the Wichita Falls Type B Sales Tax Corporation's Board of Directors conducted a public hearing to receive public comments on the proposed project; and, WHEREAS, on June 4, 2026, the Wichita Falls Type B Sales Tax Corporation's Board of Directors approved the project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The project described above of the Wichita Falls Economic Development Corporation is hereby approved. PASSED AND APPROVED this the 4th day of August, 2026. MAYOR ATTEST: 424 City Clerk Wichita Falls Type B Sales Tax Corporation June 4, 2026 ITEM/SUBJECT: Funding requests for June 4, 2026 meeting ATTACHMENTS: Funding request from OG Cellars (2 documents) • Item 4 — Funding request from OG Cellars Amount Requested: $24,498 James Hangar, do OG Cellars Winery, is requesting $24,498 in assistance to help fund the installation of a commercial fire sprinkler system and related life-safety improvements at its newly relocated tasting room in Century Plaza. The winery recently moved from a 2,020-square-foot downtown location to a 3,600-square-foot facility near Midwestern State University, Vernon College, multiple hotels, and the planned University Town Center redevelopment. City code requirements triggered by the change in use and occupancy capacity require installation of a fire sprinkler system before the facility can operate at its full intended capacity of more than 120 seated guests and a total capacity of approximately 175. The total project investment is estimated at $244,979.99, including a 20% contingency (see attached). The accompanying Exhibit A provides a detailed accounting of relocation, construction, furnishings, equipment, and code-compliance expenses, including approximately $49,400 for the fire sprinkler system. The proposal states that the project will increase taxable sales, tourism activity, and local sales tax collections while providing a safe, code-compliant venue that contributes to the economic vitality of Wichita Falls. This request was originally submitted just after the deadline for the May 2026 meeting; as such, the project to install the suppression system is underway. Staff will provide an update on progress at the meeting. Type B Economic Development Corporation Funding Request Project: OG Cellars Tasting Room Life Safety Improvements Applicant:OG Cellars Winery Location:Wichita Falls,Texas Physical Address:2611 Plaza Pkwy,Suite 302B,Wichita Falls,TX 76308 Mailing Address:3808 Kemp Blvd.,Ste. B-309,Wichita Falls,TX 76308 Phone:(214)697-9496 E-Mail:james@ogcellars.com Date:3/22/26 To the 4B Sales Tax Corporation Board: OG Cellars Winery has relocated from downtown Wichita Falls to Century Plaza off Maplewood (2611 Plaza Pkwy,Suite 302B).OG Cellars is an award-winning winery that brings both tourism and local sales tax revenue to the City of Wichita Falls. This new location is in a prime commercial corridor across the street from the Sikes Senter redevelopment project, between Midwestern State University and Vernon College, and less than one mile from eight major hotel chains. Upon inspection for a Certificate of Occupancy of the newly renovated premises,the Fire Marshal and City Planning Department determined that the space must comply with City Code requirements associated with a Change of Use.As a result,the City Code requires installation of a commercial fire sprinkler system. Under code calculations,the maximum occupancy for the facility is 172 persons. Since this occupancy exceeds 100 persons,the fire sprinkler system requirement is triggered. Attached hereto is a proposal from Landon Veitenheimer of Ferguson Veresh to install said system.The City has agreed to allow at least six(6) months for this installation to be completed. A detailed spreadsheet of all project-related expenses is attached hereto as Exhibit A-OG Cellars Relocation&Code Compliance Project Costs. 1 . Executive Summary OG Cellars Winery respectfully requests Type B(4B)funding assistance to support the installation of a commercial fire sprinkler system and associated life-safety improvements in its recently relocated 3,600 sq ft facility in Century Plaza. This investment will: • Ensure full code compliance and public safety • Unlock the full operating capacity(172 by code, 120 by seating-up from 60 in the previous location) • Enable hosting of private events and larger group tastings • Drive measurable increases in local sales tax revenue Requested 4B Participation: $24,498.00 Total Project Cost:$244,979.99(including 20%contingency for unforeseen expenses) 2. Project Description OG Cellars Winery relocated its tasting room to meet growing customer demand and position the business as a regional destination for wine, events, and tourism. The business previously operated in a 2,020 sq ft space in a declining downtown area and has now relocated to a 3,600 sq ft facility in Century Plaza—across the street from the highly anticipated Sikes Senter redevelopment project, between Midwestern State University and Vernon College,and less than one mile from eight major hotel chains. All renovations have been completed except for the installation of the commercial fire sprinkler system required by City Code. The commercial fire sprinkler system will: • Ensure the building is fully code-compliant with applicable life-safety codes •Allow occupancy to increase • Enable hosting of private events, group tastings, and community gatherings OG Cellars has been granted a temporary Certificate of Occupancy for 99 occupants until installation has been completed.Without this system installed in a timely manner,the facility will not be permitted to continue operating at full potential. 3. Public Benefit This project directly aligns with Type B funding priorities. Economic Impact •Increased taxable sales from higher visitor volume • Expanded event programming driving consistent traffic •Attraction of out-of-area visitors Community Impact • Safe,code-compliant gathering space •Venue for local events,fundraisers,and community engagement • Strengthens the economic vitality of the surrounding district • Enhancement of Wichita Falls as a destination city Infrastructure & Safety •Installation of a modern fire suppression system • Reduction of public safety risk • Long-term compliance with building codes 4. Financial Impact & Sales Tax Generation OG Cellars has generated over$12,000 in revenue during its first 12 days of operation.This period included several small, low-attendance soft openings as well as a two-day Grand Opening event,which drew approximately 100 guests each day and accounted for approximately$5,800 of total revenue. Operating five days per week, excluding special events,the business is conservatively projected to generate approximately$260,000 in baseline annual revenue under current occupancy limits. With the installation of a fire sprinkler system,allowable occupancy will increase from 60 persons at the previous location to over 120 seated guests at the new location, representing a 100%increase in operational capacity. This increased capacity will allow OG Cellars to host larger groups and private events, unlocking the full potential of the facility. Based on this increased capacity, OG Cellars conservatively projects annual revenue growth to between $260,000 and $520,000 annually, representing a substantial increase in annual taxable sales. Previous Downtown Location (2022-2025) •Average Annual Sales: approximately$91,000 • Limited occupancy and declining traffic restricted growth Projected New Location •Increased occupancy: over 100% • Event revenue stream added • Projected Annual Sales: $260,000-$520,000 Estimated Annual Sales Tax Generated • $21,450-$42,900(State of Texas-6.25%) • $5,200-$10,400(City of Wichita Falls-2%) • $650-$1,300(4B Portion-0.25%) 5-Year Estimated Sales Tax Impact • $107,250-$214,500(State) • $26,000-$52,000(City) • $3,250-$6,500(4B) 10-Year Estimated Sales Tax Impact • $214,500-$429,000(State) • $52,000-$104,000(City) • $6,500-$13,000(4B) Additional revenue from private events and group bookings,enabled by increased occupancy, is expected to further enhance these projections. 5. Funding Request & Structure OG Cellars requests$24,498.00 in 4B funding, representing approximately 10%of the total project investment. Preferred Structure • Reimbursement grant for eligible project costs OR • Sales tax rebate agreement capped at$24,498.00 Use of Funds • Fire sprinkler system installation •Associated plumbing and infrastructure • Required life-safety upgrades OG Cellars has committed substantial private capital toward this project,with approximately 90%of total project costs funded privately. A 20%contingency has been included to account for unforeseen construction and installation conditions, ensuring the project can be completed without delay or the need for additional public funding. 6. Project Budget Category Cost Total Estimated Project Expenses $204,149.99 Contingency(20%) $40,830.00 Grand Total Project Cost $244,979.99 A detailed breakdown of all project expenses is attached hereto as Exhibit A. 7. Project Timeline • Sprinkler Installation: May 2026 • Completion and Full Occupancy:June 2026 8. Performance Commitment OG Cellars is committed to: • Completing the project as proposed • Maintaining operations in Wichita Falls • Generating measurable sales tax revenue • Providing documentation as required by the 4B Board 9. Closing Statement The requested 4B funding is a critical component of this project.The fire sprinkler system represents a necessary and code-required investment required for the relocated facility to operate at full capacity. S With 4B participation, OG Cellars will: • Operate safely and in compliance with all codes • Expand its role as a local business and tourism driver • Generate sustained increases in sales tax revenue • Provide a safe, high-quality venue for the community OG Cellars has invested nearly a quarter-million dollars into this relocation and redevelopment effort and is requesting only modest participation from the 4B Corporation to complete a required life-safety improvement that directly supports future economic growth and tax generation within Wichita Falls. We respectfully request your support in making this project possible. Submitted by: OG Cellars Winery Wichita Falls,Texas OG Cellars Winery Type B Economic Development Corporation Funding Request Executive Summary OG Cellars Winery respectfully requests Type B (4B)funding assistance to support the installation of a commercial fire sprinkler system and associated life-safety improvements in its recently relocated 3,600 sq ft facility in Century Plaza. Requested 4B participation is $24,498.00 toward a total project investment of$244,979.99. Project Description OG Cellars Winery relocated from a 2,020 sq ft downtown location to a 3,600 sq ft facility in Century Plaza. The business now requires installation of a commercial fire sprinkler system to comply with City Code requirements associated with a Change of Use and occupancy exceeding 100 persons. Public Benefit The project supports increased taxable sales, tourism activity, event programming, community engagement, and public safety improvements through installation of a modern fire suppression system. Financial Impact & Sales Tax Generation OG Cellars generated over$12,000 during its first 12 days of operation, including approximately$5,800 during a two-day Grand Opening event. Revenue is conservatively projected between $260,000 and $520,000 annually, generating substantial increases in local and state sales tax revenue. Funding Request & Structure OG Cellars requests $24,498.00 in 4B participation representing approximately 10°/0 of the total project investment. The remaining investment is privately funded by OG Cellars. Project Budget Total estimated project expenses are $204,149.99 with an additional 20% contingency of$40,830.00 for a grand total project cost of$244,979.99. Exhibit A - OG Cellars Relocation & Code Compliance Project Costs Exhibit A—OG Cellars Relocation&Code Compliance Project Costs Item Cost($) Column 3 Column 4 Metal Privacy Screen 162.36 Vevor Commercial Microwave Oven 284.39 Asurion 3-yr Protection Plan(microwave) 40.04 ProSource Wholesale Flooring 7059.79 Lowe's(flooring for bathrooms) 798.69 Leather Barrel Chairs(8) 2799.02 Stone top tables(set of 4) 391.04 Table tops&bases(24 sets) 5693 82 table chairs 5412 14 barstools 1274 Commercial Refrigerator 1 1668.06 Margaritaville 3 pitcher blender 346.64 Dual Wine Chiller Cabinets(2) 4505.76 Drop-in Counter Wine Chillers(3) 2975.78 Barmaid Glass Cleaning System 560 Stemware w/logo(288) 1201.14 8"x8"square plates(qty 36) 72 12"x6"rectangular trays 151.56 4 oz.square dip bowls 42 Reidel Microfiber cloths 303.1 Shelving Units(Qty 5) 1105 Winery Canvas Prints 500 Great Big Canvas 281.44 Rechargeable Table Lamps(Qty 18) 545.04 USB 10-port charging stations(4) 88.46 Art Deco Wall Mirror 175.91 Greenery&Urn 136.37 Canvas Print(Nostalgia) 178.58 Nostalgia Canvas Print 73.6 Art Deco Stone-top Console Table 129.89 Mushroom Rechargeable Lamp 43.29 Marble top End Table 42.22 Shark Vacuum Cleaner 35.37 Bar&Mural Cost&banquette Paint 7320 paint supplies Exhibit A—OG Cellars Relocation&Code Compliance Project Costs Electric Plumbing Alarm 3786.35 Fire Sprinkler System 49400 Fire Monitoring Stations 3783.34 Graphics&Signs 1402.92 Vistaprint 144.81 Keg boxes Commercial Refrigerator 2 couch 500 blue chairs 600 merchandise2l 1134.24 Safe 400 printer 120 Chandelier&lights&bulbs Patty Nabors 1775.3 Sonos Amp 800 Sonos Speakers 4 758 Monster Speaker 297 SS Table 103.39 3 basin sink 700 mop sink 100 freezer 120 microwaves 220 Cambros 540 step ladder-blue 3 step 90 brooms, mops,cleaning supplies 100 Licenses&Fees iPads 1000 Sconces-2 225 Vizio 85'tv 500 Coravins 600 Outdoor charis&tables 620 construction-Tim Sanders Movers 2450 cleaning crew 1300 bartops installed 1450 Exhibit A—OG Cellars Relocation&Code Compliance Project Costs Design Concepts drawings 1000 TOTAL Expenses incurred by Landlord Locksmith 150 Demolition/Construction 11000 HVAC 415 Flooring Installation 11000 Asbestos Report 750 Project Oversight-Tim Sanders 1224 Landscaping 300 Brick removal&concrete 5600 Total Grand Total 20%Contingnecy for unseen expenses Grand Total w/Contigency 10%ask Prepared as Exhibit A for the OG Cellars 4B Economic Development Funding Request.