4B Sales Tax Corporation Minutes - 10/30/2013 MINUTES OF THE
WICHITA FALLS 4B SALES TAX CORPORATION (4BSTC)
October 30, 2013
PRESENT:
Jim Ginnings, President § Members
Dave Clark §
Tony Fidelie §
Rick Hatcher §
Darron Leiker §
Casey O'Donnell §
Kevin Hugman,Assistant City Manager § City Staff
Jim Dockery, CFO/Assistant City Manager §
Miles Risley, City Attorney §
Bob Sullivan, Director of MPEC §
Lindsey Greer, CVB §
Jack Murphy, Director of Parks & Recreation §
Ramona Coln, Recording Secretary §
ABSENT:
Dustin Nimz, Vice President and Sec./Treasurer § Member
1. CALL To ORDER.
Jim Ginnings called the meeting to order at 3:01 p.m.
2. APPROVAL OF MINUTES
Darron Leiker moved to approve the minutes of September 9, 2013. Seconded by
Tony Fidelie,the motion carried.
Kevin Hugman presented the financial report. This report includes the sales tax revenues
for October, which were higher than anticipated. There is one more month of revenues to be
allocated to FY 2013.
Mr. Ginnings introduced Casey O'Donnell as the newest member of the 4B Corporation.
3. DISCUSSION OF POTENTIAL MULTI—PURPOSE EVENTS CENTER PROJECTS
Dave Clark asked for a brief summary of the requests.
Software. Lindsey Greer said the proposed software not only provides internal functions,
but also allows for communication with accounts. Every hotel will be able to reply to requests
for proposal directly into the system. It has an event registration module, and allows for the
assignation of tasks. Bob Sullivan said it consolidates all events concerning a particular activity
and gives good reporting figures. Ms. Greer said it would be a three-year, web-based
subscription.
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WFEDC—Minutes of October 30,2013 2
Scoreboard. Mr. Sullivan confirmed that the Wildcats are willing to make a solid
commitment in new contract negotiations for a five-year agreement. Getting a new scoreboard is
essential. Mr. Leiker asked if he had given much thought to the additional advertising sales
revenue from the scoreboard. Mr. Sullivan said it would depend upon what scoreboard is
ultimately purchased.
Tony Fidelie said this request of$915,000 is the largest he had encountered in his time of
service on the Board. Mr. Hugman said that between another month of sales tax revenues and
revenues from the TIF #2, the Board should end this fiscal year with about $900,000 in
unencumbered funds.
Mr. Fidelie asked if these items requested could be ranked in priority. Mr. Sullivan said it
would be difficult to rank, as they are all very different.
Dave Clark asked if any of this project is 4A eligible. Miles Risley said some of the
promotional expenditures might be eligible, but they would have to be singularly identified. Jim
Dockery said the 4A Board had already committed a lot of their allowed promotional
expenditure funding.
Mr. Fidelie asked if another funding source was available. Mr. Sullivan said that the
assistance in the purchase of the scoreboard could be part of the negotiation process with the
Wildcats. However, if the Wildcats co-own the scoreboard,they could regulate its use.
Mr. O'Donnell asked what the scoreboard would bring to the City. Mr. Sullivan said it
would solidify the Wildcats program. There is a positive net revenue from that program of about
$32,000 per year, and it is important to have at least one anchor tenant. It would also enhance bid
packets for other activities, such as the Lone Star Conference basketball championships.
Mr. Clark asked if there are other City projects in the works that would be seeking 4B
funds in the coming year. Mr. Leiker said no project comes to mind. The circle trail is ongoing,
but the funding necessary to build those trails would exceed 4B capacity.
Member Rick Hatcher entered the meeting at 3:45 p.m.
Incentive Funding. Mr. Sullivan stated the incentive funding request is a one-year
request. They would like to have such funding available every year, although he understands
they would have to show dividends derived from the program. If they are not successful on a bid,
the money is not spent.
Turf System. Mr. Sullivan said the turf system would create the opportunity for indoor
soccer, including professional indoor soccer.
Mr. O'Donnell asked if arena football would be successful, noting this is the second time
the sport has been tried here. Mr. Dockery said they only played a couple of games the first time;
there were team management issues then. Mr. Sullivan said all leagues have stabilized and are
operating better. Arena football could work in this market as it would be played during MPEC's
slow time, from spring to summer. The odds are better than 50% Wichita Falls could get a team.
WFEDC—Minutes of October 30,2013 3
Mr. Ginnings asked if the City would fund up to $200,000 of this request. Mr. Leiker said
it would be up to the City Council. The FY 2014 budget is optimistic on sales tax projections that
may or may not materialize; sales tax revenues are the second largest revenue source for the
general fund. Mr. Dockery added that Administration dipped into the reserves for one-time
expenses, and the Council wanted a one-time pay stipend for employees due to no cost-of-living
increase, which cost around $200,000. He would not say the City could absolutely not afford to
do so, but credit rating agencies look at how often a city dips into its reserves on a regular basis.
It is a timing issue; the City is barely into its new fiscal year. If it were March and the City was
hitting the 2% sales tax revenue projection, he would be more comfortable.
Mr. Fidelie said he was floating some numbers for consideration: $100,000 from the
general fund, $650,000 from 4B funds, with the 4B to recapture $300,000 from scoreboard
advertising over time, all subject to a five-year hockey deal.
Mr. O'Donnell asked if the Wildcats lease could be longer than five years. Mr. Sullivan
said most sports teams at this level are reluctant to commit to more than five years. He may be
able to negotiate five years with options for additional two-to three-year increments.
Mr. Leiker said he would rather not tie the 4B funding grant to the advertising dollars
realized from the scoreboard, but rather, simply request the entire $200,000 from the City
Council. There is no way of knowing at this time how much revenue will be gained from
advertising, and those funds could be used to fund MPEC operations so that it is not so
dependent upon hotel/motel funding. There is no capital improvement fund for MPEC; those
advertising dollars could be used for necessary improvements to the buildings.
Dave Clark moved for approval of the expenditure of$715,000 of 4B funding for the
MPEC requests, provided that Administration requests from the City Council the
remaining $200,000 toward the purchase of the scoreboard. Mr. Leiker seconded the
motion. Mr. O'Donnell asked if the motion includes the contingency that the Wildcats enter
into a five-year agreement. Mr. Leiker said it is not in the motion, and he would be hesitant
to include that provision, because the contract has yet to be negotiated. The motion carried
6-1 in favor,with Mr. O'Donnell casting the vote against the motion.
Mr. Ginnings expressed his appreciate to staff for their willingness to approach the
Council for the remaining $200,000. Mr. Sullivan thanked the Board for the funding assistance.
Dave Clark requested a brief update on current projects.
• Kell House renovation—significant renovation has been accomplished.
• Kemp Center at the Forum— Dave Clark said $120,000 is still to be raised for a total
of$2.4 million; renovations have begun.
• Downtown Travel Center — 1:00 p.m. ribbon-cutting ceremony on November 5; 4B
members are invited to attend. The first of three payment installments of$116,111 is
noted in the Board's FY 2014 budget.
• Curtiss Jenny Exhibit — funding has been raised, and the exhibit is included in the
design and construction of the airport. Mr. Leiker said the City had abandoned the
option of acquiring a T38 from the Air Force Museum in Dayton, Ohio, as it would
take several years. Permission has been granted to deal directly with Sheppard AFB,
and the hope is to secure a T38 that had been wrecked and is now being repaired.
WFEDC—Minutes of October 30,2013 4
• MSU Baseball Field — MSU has signed the Performance Agreement. They have a
contract for design, and are down to raising the final $1.2 million.
• River Bend Nature Center—RBNC has signed the Performance Agreement and are in
the process of raising additional funding for the walking path.
• Wayfinding Signage Plan — Bids on the project are due November 18. First package
estimate is a little over $1 million. Due to employee turnover, TxDOT has yet to
approve the signage to be placed on its right-of-way. This piece of the package might
need to be delayed.
• Castaway Cove — White Water Manufacturing is designing the new water slide, as
well as for its installation and ancillary equipment. This company will also
manufacture the slide, and the project is on track to be completed by the beginning of
next season.
• BMX Track — Streams and Valleys has signed the Performance Agreement and has
completed a lot of work on the track. Mr. Ginnings noted they are waiting on
appropriate weather to black top the track, but they have already used it as a dirt
track.
• South Weeks Park Pond — Jack Murphy said this project should be started within
another couple of weeks.
• District 5 Park — This project is nearing completion. The City has acquired 8.5 acres
at Lion's Park, and a bridge has been constructed on that park enlargement. There are
still five lots on East Grandview the City needs to acquire.
• Pond at Expressway Village Park — Engineering has finished the construction
drawings; this project will soon be let for bids.
5. ADJOURN
The meeting was adjourned at 4:12 p.m.
/ /
/m Ginn'n.s,President