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Min 01/28/1986 154 Wichita Falls, Texas Memorial Auditorium Building January 28, 1986 Items l & 2 The City Council of the City of Wichita Falls, Texas, met in called session on the above date in the Council Room of the Memorial Auditorium Building at 8:30 o'clock A.M. , with the following members present. Gary Cook Mayor Charles Harper Charles Thomas Lindsey Walker Bill Palmer Councilmen Craig Wilson James Welburn James Berzina City Manager H. P. Hodge, Jr. City Attorney Wilma J. Thomas City Clerk Fred L. Werner Chief Accounting Officer The invocation was given by Councilman Wilson. Item 3 Mayor Cook announced that the meeting was called to hear another proposal on the convention center, and to decide the location. Jim Onstott stated that he is totally in favor of the downtown convention site, but he has an alternate which he thinks will be cheaper and easier to build. The location is at Kell and Highway 287. He stated that the building can be seen from any direction, except North, for five miles. It is the most accessible to 80 percent of the City of Wichita Falls. Access from four directions is already provided. He suggested paved parking under the overpasses. He stated that this area would be ideal for this center. It is the most visible location between Dallas and Denver. Accessibility from Kell , and all access roads, are in. No land would have to be condemned for this project. Developers he is working with will build it and lease it to the City at any kind of financing the City can provide for. If the City builds it, there is vacant land available. He thinks the convention center would be a thing of beauty, and should be seen by people. It is a 30 million dollar project, and he feels it would kick off development in the South end of the blighted area. It would have room for 2800 cars to be parked in this area. He feels that is ample parking. The savings in the access roads and paving would be substantial to the City. If the convention center is built there, the General Mills Building and grain elevator would be developed into a luxury hotel . The grain elevator would accomodate 500 rooms. Akron, Ohio developed one just like it at a grain elevator, and it is the most successful hotel in Akron. The City should build a convention center in downtown Wichita Falls, and he feels this is the best location. He hopes the Council will consider this in their deliberations. The convention center should be built where Taylor Foundry is located. He stated that Mr. Taylor could be a co-developer. He has indicated that he wanted to sell his business and retire. Mr. Taylor did not have any objection to this plan if it works. He could liquidate and be a co-developer. He will do whatever is best for him and Wichita Falls. Mayor Cook asked about demolition costs, and Mr. Onstott stated that it would not be necessary if he liquidates. He does not have any idea of the cost of demolition. If Taylor Foundry were purchased, he feels it would be over two million dollars. Mr. Onstott stated that Texas Electric is willing to exchange land, and would be very cooperative. Mr. Onstott stated that he owns the General Mills building. The developer he is dealing with is in the hotel operation business. The Holliday Inn franchise is not available, but they would be working with another major chain. Twenty five million dollars is proposed to be spent in this general area for this operation. 155 Item 3, cont'd. Councilman Walker asked Mr. Onstott how far he is prepared to go in this development, in the event this site is not selected? Mr. Onstott stated that it will take longer, but they do plan to develop it. He does not believe any of the other sites being considered have the potential that this site does. He believes the tax base would be increased. Don Kirkham, 3807 Yuma Trail , stated that he is here representing a facet of the North side. He mentioned the development of highways coming through town, and the opening of Sikes Senter as two great things in the growth of Wichita Falls. He believes there is now a third great event, and that is opening the River Ridge project. He presented a packet of 600 letters to the Council from the North side (copy attached) . Mayor Cook noted contents of the letter presented. Jim King, 417 Willow Drive, stated that he is not appearing to support or oppose the civic center, but his concern is will the citizens of Wichita Falls be given an opportunity to vote on it? Mayor Cook stated that if the Council determines that it will be built and financed by bonds with a long term indebtedness, it will be voted on. Mr. King feels that the people of Wichita Falls should have the opportunity to vote on it a third time. Hal Yeager, Jr. stated that he voted against the convention center before, and he is still opposed to the indebtedness. He hopes the Council will let the citizens vote on it. Larry Six, 4604 Tammy Drive, mentioned an article in the paper about the price tag for a convention center in the downtown riverwalk area, in the amount of $21 ,000,000. City Manager James Berzina noted that it was $15,000,000, excluding land acquisition costs. He stated that figure was mentioned in the report, and last week they came up with 21 to 22 million, including land. The price of the property would be unknown at this time. He stated that River Ridge has set a price tag. Councilman Thomas asked what the price tag is, and Mayor Cook stated they were using 15 million dollars from the Haralson report. Councilman Thomas pointed out that they are all estimates at this time. Harold Hawkins, 5502 Hooper, stated that it appears that the discussion is not whether we want a convention center, but where do we build it? His first thought was that the downtown would be ideal to rejuvenate the city. He asked if anyone had stepped forward and stated they would invest millions in our city? River Ridge has stated they will spend millions in our city. He also mentioned tax abatement. Think of the increase in growth on the North side if you give them a shopping mall and convention center. This will increase taxes sufficiently to maintain the increased cost in service. He asked that tax abatement be considered. He also asked that the Council look to the business of the City, and not their heart, in making a decision. Mayor Cook asked the people in the audience to stand, if they supported Mr. Hawkins ' statement. David Brock stated if it is a large debt financing it would be presented to the voters. He stated that we do not have the drawing cards of Fort Worth and Dallas. He requested that it be put to a vote of the citizens. There has not been a real debate on whether we need a convention center. Councilman Walker spoke of a $50,000 loss, and asked Mr. Brock if he is taking into consideration the positive aspects of the City in having a convention center, and the activities it brings? Mr. Brock stated that he has not seen anything that says we will benefit from it, or that we won't. He stated that we have excess retail business, motel rooms, etc. There is nothing to say that we will generate other revenue for Wichita Falls if you build something that causes other business to decline. Mayor Cook noted that Mr. Brock is referring to the consultant' s report where they talk about operating costs and income. Convention centers at best break even. They are giving us $51 ,000 as a loss. He feels that is down on our existing activity center. Operating loss is now $150,000 a year. Tom Hoffman appeared, stating that he has been associated with the North side development group. He stated that the report points out that we are losing 254 million dollars to Oklahoma City and Dallas. He mentioned that we are a regional medical area. River Ridge plans to develop a regional shopping area. He asked if anyone on the Council has reached a decision as to how a civic center will be built? Councilman Thomas stated that cannot be done until the site is known. Councilman Harper stated that the City now has a site plan for the downtown area. We do not own the site on which to build 156 Item 3, cont'd_ the center downtown. Mr. Hoffman suggested that we put the past behind us. Councilman Harper stated that we can't put history in the past. John Ward, 4204 Northwest Freeway, asked why we should buy land, and displace people from their homes when someone is offering to give us land? Councilman Harper noted that he believes he will hear the answer to this in a little bit if he will listen. John Hirschi stated that he is constantly amazed that people think there is a free lunch, in that it can be built without tax adjustments. He stated that there is no natural development occuring in that area at present. If there is all this demand for north side facilities, it does not seem to be occuring. River Ridge has indicated this by saying that they can only build a small shopping center without the convention center. He noted that Albertson' s new shopping center is getting those businesses from Southmoor Center, except for Anthony's. He mentioned a health report on fecal content in the river, stating that we should be trying to clean it up instead of putting more people in it. He stated that the medical complex is at the expense of the surrounding communities. Six million dollars is squirreled away in the city coffers. It is our money, and he feels we should have a voice in how it is spent. Mayor Cook stated that while they are aware of the polutant, it is comparatively clean compared to others, including San Antonio. Dr. Robert Barenberg, 4505 Jennings, stated that this report is subject to extreme interpretation. He would have to be a combination of veterinarian and public health person to know what it is saying. He does not think this poses a problem to the citizens. Ron Frase stated that they made a proposal to build a convention center on the North side. The decision today is important to their project, and also the citizens of Wichita Falls. He presented a scoreboard comparing the River Ridge with the riverwalk. They feel that their proposal gives the Council the ability to achieve what they want for the City. A vote of confidence for the River Ridge group is a vote for the City of Wichita Falls. The City should not overlook the expanded tax base offered by the North side of Wichita Falls. Bill Williams stated that they are offering the City a four and one-half million dollar tax base, with a $50,000,000 payroll and 3800 jobs. From an economic standpoint, this site makes sense. This site might not be an exception to the no free lunch concept, but at least they might let them eat at their table for fifty percent of the cost. Councilman Harper asked if they had found a developer yet? Mr. Williams stated that they are working with one. He has not talked to them about tax abatement because the site has not been selected. Larry Steele, with Aufleger Garrett, stated that in all of the time that they have been here presenting their case for downtown, they are representing the midtown area, and not the Sheraton. They believe this is by far the location where a civic center has the greatest possibility of being successful . They are not committing to any developer at this time. They give weight to the Haralson report that if the riverwalk becomes a reality, this is the site for the convention center. He stressed that they not be conveyed as a developer, but as a representative of Midtown Now. Councilman Walker commented that this has been one of the most difficult type of things he has engaged in, and he believes in the progressive nature of Wichita Falls. We either have to go forward, or we will move backward. The City of Wichita Falls will have to put a stamp of approval on what they do. It depends on what the citizens of Wichita Falls decide, whether we will go forward, or digress. Whether we put the civic center downtown or the River Ridge site, will not destroy this town. Once a decision is made, we should all get behind it, and this is what he will do, and vote his conscience. Councilman Harper stated that he will base his decision on three criteria, as follows: Which site will have the least direct tax impact on Wichita Falls, which will cause the dollars spent to have the most positive effect, and which will create the most tourist activity. 157 Item 3, cont'd. Councilman Harper does not see a difference in financing. Dollars spent on the North side will be limited to the building and construction of the center. The same goes with building the center along the river. At the present time our city is not ready for another major retail construction. It will cause lateral movement of tax base with existing businesses in the city. The riverwalk area would have a lot of money to be spent for different things. Two million dollars would be spent with people who live in Wichita Falls, and re-spent, re-spent, and re-spent. It would cause an upward move in housing in Wichita Falls. If it turns over seven times, it would create nearly a 15 million dollar impact on the housing industry in the city. An increase in taxes would go to the City on every level . It would cause all the positive things written in the midtown report in 1976. Combining the river walk and convention center would have a greater draw on recruiting hotels , etc. to the city. This was explained to those who have located here. We have some kind of moral obligation to go with these things they have been told before. River Ridge is not in the city limits or the independent school district. Other tax entities would have to be involved. Rejuvenation of downtown, Lucy Park, etc. would occur. Sites are available in the river area. He read from the Haralson report, stating that if these conditions are met the riverwalk would be the top site. Every consultant the City of Wichita Falls has hired has said that the riverwalk area is the place to put it, and he intends to vote for the riverwalk. Councilman Thomas echoed the comments of Councilman Harper. Mr. Cruse and Mr. Onstott both favor the riverwalk. He stated that as a member of the BCI Board, they drug out these plans to the hotel developers, etc. The big "if" is if we build a convention center. This is to start working on a site to see if we can afford it. Moved by Councilman Thomas that the riverwalk area be selected as the site for the convention center. Motion seconded by Councilman Harper. Harold Hawkins stated that a lot of people do not want to go to Sikes Senter. Councilman Palmer stressed that we are not going to build it, but we are deciding where we would put it if we decide to build it. The location will be influenced by the way it is financed. He favors the river area, but he cannot support it because of the numerous variables. If we put it on the river we are committing ourselves to the riverwalk. He is not comfortable with all the factors of the riverwalk. We will be removing from one-third to one-fourth of the available land from the tax base if we have to support one of them. He would have to support the River Ridge. It was noted that First Baptist Church would not want their parking spaces taken. Councilman Harper stated we have already appropriated monies to build the riverwalk. He is personally committed to it, and he feels most of the rest of the Council are, also. Financing cannot come until we have selected a site. When the vote time comes for the citizens of Wichita Falls, he hopes the site will not be an issue on whether it will be here or there, but whether it will be. Mayor Cook stated that the point of trying to make a site selection is so they can address some unknowns. He mentioned River Ridge and tax abatement, stating that he is not afraid of trying and using new financing tools. We have to begin thinking how to start thinking smarter. If the voters have to decide on a site, it will normally be turned down. The Activities Center has increased dollars in the city, but it does not address today's needs that are possible for our citizens, and city. We should try to find projects which will enhance Wichita Falls, and make it a regional hub of activity. We can command more of that business with the right types of activities. More than 250 people at a meeting asked a lot of questions which he could not answer, but he found himself answering more questions in the affirmative. He felt that both the Baptist and Methodist church parking lots are included in the river area. The riverwalk is a project that we need, but he feels we need more acreage. The staff has not provided the information on ingress and egress. He feels the City has to commit to buy all 40-50 acres. He thinks we can work on a tax abatement. It is new but it is not a free lunch. It is a prepayment of taxes up front in the form of building a facility, and conveying title to the City for that facility. The project includes some money we have set aside. He stated that we need developers of vision who 158 Item 3, cont'd. will take risks. He is hoping that we have Aufleger Garrett standing in the wings saying they will build a convention center no matter where it is located. The unknown is finding a developer to share some of these dreams which we have. He then feels we can turn our attention to the riverwalk. It won't be totally free, but he is afraid we will take up too much of the space with a convention center. I Councilman Palmer stated that he does not want anyone to misunderstand how he feels about the river. It is one of our most important undeveloped resources, but he is not in favor of tying the convention center to an unknown like the riverwalk. Councilman Thomas noted that Aufleger Garrett recommended 21 acres for parking. The recommendation came from the Haralson report. Councilman Walker stated that he has no faith that tax abatement would be a reality. The voters will have to vote on this issue. Everyone will have to be involved in it. Time is not an ally with us. The economic future of the shopping mall is very attractive because it would enhance the amount of money coming into the city. Being able to get into and out of a shopping mall is a plus. The amount of industry coming in also has to be considered. The downtown area is certainly an important factor. The riverwalk can go without the convention center, but the convention center would not be as positive without the riverwalk. If time is extended over a long period, people will develop some hostilities which would prevent it from passing. The most important factor is that the citizens of Wichita Falls have to be the final determining factor whether we have it. He is not in favor of the citizens selecting the site. The motion for the riverwalk area failed by the following vote. Ayes: Councilmen Harper and Thomas Nays: Mayor Cook, Councilmen Walker, Palmer, Wilson, and Welburn Moved by Councilman Wilson that we proceed with the River Ridge site which will front on I-44 and Highway 287, and seek developer financing which would be accomplished by an equitable trade-off of tax abatement on the River Ridge site, in exchange for lease reduction or reduced capital . Motion seconded by Councilman Walker, and carried unanimously. Councilman Welburn stated that he probably left home with the intent to vote for the downtown area, but he does not have the most faith that this thing can be put together, but he feels we owe them an opportunity to try. He feels we should not proceed without citizens having an opportunity to say yes or no. Mr. King has asked him on at least fifteen different occasions if they will get a chance to vote on it. The City Council adjourned at 110:35 A.M. PASSED AND APPROVED this— /day of 1986. G Co Mayor i' ATTEST: Wilma J. Thoma , CMC, City Clerk January 24,1986 City Council Members; I am unable to attend the City Council meeting on Tuesday January 28,1986, because of my job, but I want the Council Members to know of my desire for the Convention Center to be built on I 44 and Frwy 287 N in the River Ridge Area. We are ready for Wichita Falls to began to expand Northward and this site will promote growth and economic developement to the Wichita Falls Community that will not be produced by locating on the River, such as shopping mall, housing hotel, etc. A major consideration should be visibility and Freeway accessibility which would be provided on 144 and Frwy 287 N rather than the River Front location. People will. not have to be displaced and their homes torn down to accom- odate building a Convention Center on the open land at the I 44 location. Rather than raising real estate taxes to pay for the Convention Center on the river front the Convention Center can be paid for by the sales taxes from additional revenue created by developement proposed at the I 44 location. We feel it is time for the North side of Wichita Falls to be considered by the Council Members as a viable part of the City. We have always paid our Fair Share of taxes to the city and carried our part of the load but have seemed to be overlooked as far as any developement is concerned. Don't forget the impact Sheppard AFB has had economically for years to our City. We would have been lacking in alot of areas without their help in many many ways. Let 's show them we appreciate their contribution to our City by providing adequate shopping and recreation close to the base. Signed_ Address_ G Phone �7/ Date / _ � �