Res 061-2017 4/18/2017Resolution No. 61-2017
Resolution approving the programs and expenditures of the Wichita
Falls 413 Sales Tax Corporation Board of Directors and amending the
budget to include funding up to $40,000 for Wichita Falls Brewing
Company to install a fire suppression system at 701 Indiana as part
of a redevelopment project in the Central Business District
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 April 10, 2017, the Wichita Falls 4B Sales Tax Corporation
(413STC) approved the projects listed below and as stated in its agenda.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
1. The Wichita Falls 4B Sales Tax Corporation's approval and funding of the
following programs and expenditures, in a total amount not to exceed $40,000 as
described below and in said corporation's agenda, is approved:
An amount up to $40,000 for Wichita Falls Brewing Company to
install a fire suppression system at 701 Indiana as part of a
redevelopment project in the Central Business District.
2. The current fiscal year budget of the 4B Sales Tax Corporation is amended to
provide for the aforementioned expenditures and changes thereto.
PASSED AND APPROVED this the 18t" day of April, 2017.
ATTEST:
City C k
4B SALES TAX CORP.
Budaet & Financial Statement
1
Revenues
at
MPEC Projects -$" 71510P0,, $ 715,000
Tennis Center Lights $ 620,Ooq, $ 629,211
Lake Wichita Permit $ ""150,125 $ 158,125
Softball Field Lighting
DWFD I Farmers Market Imprvmts 134_ 354" " $ 86,874
Service --
Castaway Cove Water Pk (2010)
$
388,820
; $ ,; 387,,060', $
387,060
TIF #21 Rhea Road (2011)
"' -1 S
226,950
" 5 229,25,0 $
229,250
WF Municipal Airport (2013)
$
140,000
140,000, $
140,000
Public Safety. Projects (2013 Series)
„' $
416.075
:5 „418.576 $
418,576
TIF #2 Maplewood (2015 A Series)
Golf Renovation (2015B Series)
Downtown Improvement Grants
,$ .54,00p $
18,350
CVB Incentive Funding
;$ 3 ,' $
35,000
Professional Fees (Data Analysis)
Capital Equipmt Maint / Imprvmts
Radio Maintenance (73238)
$
127,455
$v 339,$68` $
127,102
CADlRecords Maint (73239)
$
123,054
- $ ' J2,flOfl' $
139,395
MDT Software Maint (71110, 72011)
$
162,537
' 17&677, $
184. 119
District 5 Park I
ng Cash Balance
Cash Balance
231
723
$ 233,710
$ 53,800
7871
Executive
Summaty
Beer is a great equalizer that brings people togedierfrom all walks
of life to ift down and share, space. Wichita Falls Brewing Conipany
lAVYBC) will provide a quality product and a unique experience ro
Wichita Falls and the surrounding areas, We will make, serve, and
distribute, multiple styles of craft beer m, well as cater to dornestic beer
mid wine consurners in our tap mom. Being a truly local Craft brewere
WFBC will give tine town a product and place to call their oorn.
Founder Matt Bitsche is nearing a decade of experience in
commercial brewing operations and distribution. He's already taken a
bresvery from startup to state-wide di-stribotion and rearains a partner at
Infamous Bresvery in Austin, TX. Matt and his wife Brooke, have come
home to Wichita Falls to raise their kids and found (his company, They
are uniquely qualified to make this loc.4 craft brewery a success,
It is WFBCs aim to prornote Wichita Falls as a destination spot
through the continual revitalization of downtown. Our location is in the
heart of it. It is highly visible and will allow mom for growth. It will also
help w meet ow mi:,sion and vision by allowing for a farruly-friendly
atmosphere, providing indoor and outdoor event space, and
accommodating effective packaging and distribution,
has a locally owned business, WFBC will keep jobs and money in
our community, spurring carnmerce mid creating growth for the city,
WFBC will be kwmcd at 701 Indiana in historic downtown Wichita Falls,
TX,
WFBC will have a fun, laid back atmosphere where the whole
family is welcoinc, The company will give Wc& to the community by
sponsoring local events as well as hosting some of our own.
At W17BC, we see a market in need of a serious craft brewere
Similar sized towns with comparable demo gmpies in Texas have proven
to easily support a 10 barrel micro brewsery/loreupub. Gixen these
romps, we believe, ftat NVITC should be able to produce andsell over
700 barrel-, (Bbl) a year. An annual operation projection using that
nurnbcr,would, drive sales to greater than $680,000 with cash flow a1mve
$275,000 gisen estimated cost of sales and other es:pervies in the first year
at around $400,000. Our 5-year projections show growth ro sales of
greater than $975,000 given the advantages of distribution. outside
WeIiita. Falls, with minimal increases in operating costs. Break-even sales
volume is approximately half of our projected figures at $50 Bbl/yr
IATBC has a startup capital figure of $220,0W With $370,000 we
can open this year.
Our (cam is excited to bring our shared passion for craft beer to
our hometown community.
Mchita FaUs DTu7ng ampany 7xu Indiana Aix Wichila Falls TX 76sm
Nbut Busche is a founder mW panner at Infarrimss, Brewin& a Ism-vo:ry/diseributor bmed in Aunin, IX H, e has been
successfiA in building a profitabit: brewery Erato scratch and arbieving statewide distribution, M, art, originally frcou
Wchita Falls, has covoc horric spccificaUy to launch this venture. As the 1kcc of Infurnorts Brewing, M, ans deep
experience in bresvin& sales, tuark-eking, and distribution is unparsdided fur the =a.
Infamous started in Austin, Texas with at 7 BM sysrern and waa primarily focused on disrributitan , Tlwir startup capital
was 55M,000- In the first full year of production, Infarnom scald 675 barTch and made zero profit, By year 4 that
nurnber was 2000 banrh and by year 5 Infamous was worth SUM Infamous currcntJy disuributes swe-wisic, is
pm wnt in cwry major city in Tcmm, and recently pia a sec Iticatiori in Austin to add another 5000 Bbis of
cWarity.. Infrmnurt w aid , or lurve attained this stimces without gmv beeau's kad r and MrrihipL
, , wn
The New out Times kwuned an anick on Infamous in, gust An of 2013, and Matt hm taken wwards in dic, 113cst Little Brtwien in Tom (1), The Can Cans
(3), the Bmwsky Awards (10), And 4 mcUs, at tJm 2015 World Beer Championships held at the thrmar Testing Instione in Chicago, Inaddificm, the
company was featured on the documentary "The Beer Diaries" And rankilsic other ordim: awdia cvinrm k"cmlN Infamous, dida collaboration beer vvith
the Bostort Om Cornparry (Sam ,tad ams)- Matt is nmponsiMe for brcvin& diaributitin, and brcNmry operations for Wichita Falls Brewing Co-
.... ....... ''I',,ll,ll""","","",",",............ ..... .... . ... .......... .... ...... ......
Russ Reynolds is an Air Force pilar, as bm= brewer, and has a paWmi for business and craft beer- He curted his bachc1009 degree and Business
foundations Ocrtificatiiron fro rn the Vrinecrsity of Tcxm in 2007 and an MIA hour Tndcrtt Vniveruity International in 2013.
He has caperictice flying military aircraft across the globe including tours as a Firsit. Assigruncrit Inanxtor Mot, a C- 1 3i1
Clarnbat Tact" Airlift art, and a Fum-NATOjhint jet Piku Training Instrructor Pilot Hc has "unsivt cXPCric-",t in
Air4and operations, in Central and South AmcricA -including counter -drug related raimiens to Moxice City, Hondurm, and
Wumbia, Mt. also wrved as tbc 3" Air Expeditiortary Wing Chief of plight Way in Kuwait City during Orc opening
sal vm agwirnt ITT. 'I targets on the fraqi/Syrian border in 201C In that role be via5 r"pomibis for the Nafc flight
operation's of 32 twes of albod aircraft from 18 countries and murm 3 oributry Lies in the AOIL
Most recently, in November 2016, be co-founded the University of Toms 'AFRCYTC Der, 825 Alumni Nctwork,
Scholarship' and so far b&5 rai" over I,OK in, memory of a fallen comede-Rum is ir"nsible fix businem planning
and markering for Wichita malls Ors wing Co,
WkhMFW1sETMMgCWvaMY 79 ZlEffi�EMAM Wwh= FOM 7-T 763m
Location
Overview
WFBG has identified 701 Indiana as an ideal location for the=
brewery and tap room, The site, formerly known :as "Tire Art
Hub" has an open floor plan with 7,200 sq feet at street level; and
another 2,500,5q feet ujastairs: The remodel of this spice will be an
exciting addition to the downtown scene and unquestionably
contribute to the resurgence of downtown Wichita Falls. It is
located in a vciy visible carrier location, and lairge display wvindowws
1 enable pedestrians to see the attractive stainless steel brewing
and fermentation equipment insider. In addition to inviting street
level visibility, VVFBC ivill have a breuing system surrounded by
gla" walls so that guests in our taproom can observe the brewing
process.
T el iAilt be within easy walking distance of office buildings
as well as emerging ing residential real estate downtown, n, The attached;
asap shows some of the %urrounding businesses, including a food
truck Bark one block east of the brewery, With:coll`ee shops, bistros,
pubs, ; cafes and antique shops close by, Wichita Falls downtown
n
offers; increasingly more, for the cotlrmunity, and we want to be hart
of that effort,
Along with offering in-house brews, WFBC will be
distributing its products, to local and mew) areas. A garage door is
already be*q installed as part of an efficient production line that
will make the distribution process afTordable and quick. Future.
plans include addiction of a short-order~ w-,dk tap kitchen to serve,
feud and ice cream., In the rnerrrl a c, the company plans to
collaborate with local food truck vendors to draw annre cusnaaners
and enhance their experience, keeping them at our inviting
location.
several hitprovea xnts will ww4 d to bt� ma u> a e imniAxlate th( hsviAzer y and maavram
1,11'umhax and i ntallaaira of t muing equipnwenc including a walk -ass enrragw rail n unit,
Ztjpgrades W slit tk a cal mid wwat
3°13taa1ad tent of main, mrnmon, akin a s
Mchita Fags Brouft Company jai Indiana Ave RIchitra Falls 7X76301
'ision OW
,V 's vision is to create an at o ph is that is
f ity-fri rr o We plan to offer comfortable seating
ind r and outdoors, as well as games; and a'small play
sc pr out back, Our philosophy =ph is, "'If the kids Ola ',; the
adults will stay." This will not bea bar to, corncorne firld a
dark corner" and drink. It will be open and bright, a place
to bring the family al`t r a SatuMayl dd Withr t-ball and
dance recitals r Bast a casual business thi on a
Wednesday night. We plan to havvibod truck vendors on
site several nightsss a'week inr the near term and provide in-
house fool in the future,
Within the last )var., Texas laws. have d i
favor f the Brewpub morlel and we we an incr dibl
opportimity, While% a -m custonireri will generate, our
gre,atest margin, di tribution to restaurants and bars in
Wichita FaI6 and the surrounding areas such; as Dallas,
Fort Worth, and, raon 'willboost our sales volume to, as
much we care to handle.
Given that, die goal is, to promote pride in VVicinta
Falls; in favor of slow and stepdy
gr(Aqli while
maintaining the lughm standards, for -our beer -r
to bring money ney its outside r town nd make a
nam, c f r oursekes acrossm 'on at the same tirne,
19
r
L,>g,A, Website, Twitter a Facebrok Paw -
Business plan distrilni6on and ciTwMinding
"The rounders ( lub' Lo" cmmd sourdng to pm )rnofe community
ftw,rAwment,
mug, t-shirt, and I free brew to day for 10 years 82,DQO will Ret (he
.sarne raid 2 free bmys it day for I 0:vars. $3,000 will gg( the. sxrw
and 3firec 1wws a day for 10 yeam
Appearance in (lie I", pms sucb as Times Recorill, News
�Tivbrnary '17), KFDX nightly news (March'] 7), andnir M-TB of
North Texas,
Invire. the two ntain TV stations to cover the opening as well as
steps leatfing ijp to the optning.
Opening
Promote and thrt)w a la kinch party (Augosp
Offer military and �college discounts, loyWitytardy; and
mench-widise soch as ".-kers, t4hirvc mugs kind caps
Clay County Mwe Wore - Birdwell Clw-k R,-iffwb (September)
046berfe-5t, Evrras - In-house and off site (Sep-06)
,ireatAmeric.-An Beer reslival - Denver (()0)
Beer pairing dinner at the brewery (Nowniber)
Sheppard Club Tap Th4over - Sheppord AFB ffintel
Host end of year/holiday pardes - WFBC (December)
1--tunkch Ixer education con rsses - ANTBC jaflltlrary�)
Gypsy Crawfish B44 and Rib Crawl - Downtomi, ANT �Afarcl)
Red River Wine and Beer Fe-aival - "Arichita Falls NIPEC, (March)
Red River Craft Beer Fest - Great Plains Wiseurn, Lawton (April)
Hoa a craft beer festival - Downtown Wichita Falls (5ummer)
Hotter'N Hell Hundred Events -, WFW/ IIHH Offices (Aug%w)
v'
TABC 1jecnsing Obtained
LLC formed
Propexty/Occupancy Established
Nlarkc6ng Campmgn Laun(,Jied
Equipment ' rd r l
Opera-tingAgreement Finalind
/ Windows
Crowdfunding Campaign lAunched
May
Firs Suppression.
Concreteand Plumbing
.ltrildt>
Indoor / Outdoor tic
'raproom
J' ly
Furnitureand Bar
Equipment InaaH
Raw Ingredients BREW!
�i
i,.
It's worth noon g ttp front that %mns of the adivarua ce of
g_
brewpul* stern fivni their ability as the mxiuIh(-.tutvr to sell a Inigh-
value-adrIed pn)duct at better nsairris than a typical restaotwt
,on the busirrem nwAcl aird beer style. Since WFBC won't be food
fcxwa.m (initially), we expect most people to Corare forr our Ixer Wid
that well owr half of them will, order it.
Sirwe vve will have the
capacity to make more
beer thaa AV C wiH likely
move at, t%e. brewpub itwif,
we plan to distributc,
Although profit Ma% -ins
will, be mlich lolver selling
to a distnIvitor, it is still, an
ex"llent way to boost
profit,s and introduce
pcvlc to, oor beer away
fiorn the. pu).
Information arnd
cons"mer data fhnn the
er Brewn, NvimiaOcmi shows
that the craft beer trend
continues to grw With a
2012 20'.3 20A jots suYnig pmwnce actim the
15 @ lwmwersassocn"tm�n C—TF 50 states and the District
of Colnrnbia, craft
breweries are a vibrant -,wd flow ishing economic for at the I",
state and national kvels, 4U consuaters confinue to derma d a wide
range of high quality, fidl-fl."mred beers, srnall and indqxnelent
,craft bm-vmrs are ineeting thTsr growing d Ai
einwa] with innova %v.
offcrinA creating high levels of tcow-nnic valoe in the picocess.
7MMIUMMAW WxhM luffs FX76-4M
Texas Craft
Breweries
list of `texas towns with a Population of 85,000 to
Population Town
# of Drewpubs
Nar es
130K Midland
I
Wicked leaver
Waco
3
Bare Anw, Brotherwell. BJs
11 '
2
Annadillo, Audacity
120K AMenepp
l(ikur , Cyptess t_ a olager, Brick & Forge_
Cidessa
I
Odma Restaurant & llreming
Beaumont
I
Neches
Round Radk
3
91ue Bonnet, He fir
Woodlands (Conroe')
4
El- 52, Souther Star, Copperhead, BJs
Richardson
1
VOU'T Ballets
110K Pearland
2
Bakfish, Bfs
o l gt Station,
y
3
New republic, Black -water Draw. Bf�
105K Mrichita. Falls
1
WICHITA FALLS BREWING CO
Lewisville
3
Cobra, Chimera, BJs
4 T'�Vl r
3
ErX, True Vine, BJs;
1OOK So Angelo
2
Zxto One Ale Hou , ) Taphouse
League OyAGalveston
5
Galactic Coast, Galveston Ray, BJs, Petching Cab, Saloon Door
Allen
2
Nme Band, Ws
Sugar Id
2
Us. Texian
K Rowena a
I
LLB 'Tttad
E4, "I v f "of Initw bcy-, s
rmum
R'S'dMI'D.� CWMAWn s Nukm
FAIIMWW�
'cam
s
rRIUVI
$
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Fkr,WA��m
s
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,lNvt Fmm" tM
3
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s
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END WNW
s
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ard T,4xmvm
23aw
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err
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0twL,wf,exS D.%ek)"'alf
s
loom
Epjkwvw?
V30M
c4L*frwm�
21aw
Pore -"-XrwvFk}: Lqwkm-K,�
$
21OW
7D I
Wichita Falls Brewing Co
mlon"Ov QualTUIV pmImbong
%*MyFixed Ooata
VAIXI
'VaHabk Coa per Unit
8 0 U,
Lh* PH66 (Pirm
.4
K0
S'X,,
UrM Immmonft
7T�
Bt,v*-#VYAT Point
1,12N
AVG F4NT9 PER DAY
"SI
7
�,I
PO4TS PER MCMTH
4,B21
IM,
11. c
erg
GOSTVS. SALES
Il"Y'll
kl
c�fi
jv"
14
I
ILIPO
4 tr6b
,�")Q 1AI,"
Iff, "K N.t.P
Ilif, I
sc, Lm
E-1, D 7 a
1",
8138 Pints
52 Kegs
2054 Glasses
1"U"
16 XM
SUM
$4.501pml
0
W.klyfted cftt
�.11 5017
vadobve k per"
$F,5
umf Prie.
SI
— ---------------------------
--
um.k—n P"ank
4,71
AVII BARRELS PER MONTH
18.25
COSTIJS-SALES
i —w
12�111111
21.
57,11,
IA 1,
T,.
V,, Ak
U- LLI:L
ommusmomm=
Sales.
Food
2--g.
TOTAL aALES
Cost of Salves:
Fend
G--,ag.
TOTAL COST OF SALES
Gross Profit
Payro4k
S"J &Wg-
F�PI.Y-B-f*.
TOTAL WROLL
Other ControlEable Expenses:
0
a-G%
s
0.0%
0
&G%
3 D
0.0%
$ a
D o%
5908&2
100
747,141
1000%
2915,569
13G-0%
923,4ER
m I0%
15 1,
C-, 179
1000%
580.892
110G,
747141
1G00%
SMIM
Imo%
923.460
IM 0%
9351.1.7G
10,16%
0
9
01
0
01
76,800
112%
224414
39%
23,897
3C96
27,704
3.0%
2e,535
3-04%
79,920
11,7%
22A 14
3.0%
MEW
3,0%
27.704
3.D%
2e,535
32%
600,972
88'a%
724,.727
97.10%
969,672
9-1 -L%
895,762
97.0%
921,635
97-E%
Q,9v12
144%
107,923
14.4%
118,71C
12�21%
120,587
14.3%
14a,645
55-1%
35,475
5 2%
35,475
4.7%
37,249
42%
39, 1 Q
4.2%
41,M7
4 a%
naze7
I 9,e%
143,399
19.2%
1155.05
17,44%
IM699
18.4%
184.71 a
59.4%
21S,507
314%
165,8-I3
222%
192,M
201,48%
197,403
2141%
243,249
22.4%
Op-k�g E.W-,
I2,781
La%
12,7K
1.7%
I2,780
1A%
12,780
1.4%
12,73ti
1.2%
M-k,& EAerW-A
950
D.1%
1,104
0A%
fi,214
G.1%
1,335
0. M
1,469
0.2%
ma .UN
5,040
G-7%
5,212
0.7%
5,557
0�.5%
%B34
0.51%
5,1,25
Dtl%
Utit-
43,200
8 a%
44,41-5
5.0%
45,831
E-1%
47,205
48,522
5- 1%
C-1 & AI-ostrd- Sxp-
9,7&0
1-4%
9, 7' ,0
1.3%
1+,790
1-1%
9,780
9,70
t-C%
Repd- S Wlt-
3.400
G-8%
54110
07%
5.40E
G-s%
5.400
0.0%
5.40G
061%
TOTAL OTHER CONT RCLLABLE EXF.
77. 150
1,1-3%
78,852
105%
80,562
91 G%
8.9%
84.1,78
8-8%
CONTROLLABLE PROFIT
390,225
57.3%
5M,476
G7-3%
6414E
7064%
643,727
6&7%
GM,745
S&M
Occupancy Costs & Depredation
O,-p.-Y C-t=
a7,M,
5Z%
26,418
5.1%
39,571
4A%
413,7Ea
4.4%
41,98I
4.4%
D.p-i,#j- & Anm-f-
E11,528
7-6%
51,623
5.2%
51,C118
1-8%
51,128
5.5%
51,eLH
5-4%
Other fincome) Expenses
Oth. i1-.)
0
G G-A
a
0.11%
0
G,Cl%
0.0%
G
0-0%
1M.-I Exp -
27,7G4
4-1%
22,4313
3.a)%
16,718
1-9%
105313
rA%
3,534
3-4%
Od- Exp-
0
G 0%
a
0.13%
0
a-c%
0
0.0%
G
32%
NET NCOME BEFORE INCOME TAXES
2T3,594
4011A
$390,,000
522%
$525,228
58.6%
$540,009
586%
550.302
58.514
ADD BACK
Dep-U- & R.-M-U-
51,622
7_6%
51,529
13.9%
51,628
5696
51,4529
5-6%
51,628
5.4%
DEDUCT
L- P-ipad Pay-mr
(53,-<M
fg,3%§
(H,9141
(9 2%)
k74,525)
(6.3%k
f30,71 s)
(8.7%)
(87,410)
(2-2%)
Wichita Falls Breivfng Company 7oi Indiana: ve Wlclit a Falls TX -,,63ci
4,
£
s,
p�q pay
i�
y£t't
S}
$12,324
$ r 0
la;'
itt J b3 Gat °* I
3{+
{ $, u j 18
.�
Weekly
Monthly
Beer Salles
Wine es
Distribliti i Sale'
Cost f Beer
Cost of Wine
Cost of Distribution<
L'
a�j
L'
a�j
i�
Z,
`
3,0
pq__�� �„!yy
i7 b3
t k pp
A y�a`':il�
Nil
r., p��9 }
'*s�,C� 9 �� .7
( ++'7?e
$$150,000t{{
J§
`
',��
£
k�a
rk`' ` ,620
kSl�i
ijfl
Y $32,351t
y�,
E
:',�
� ,i
�±
So
Year i.
Year 2
year
1^10,
$160,888r
Sr t}U>l{.�'i"`L�.
21
2019
Grass Sales
$} Net Income
fiMS
Contact.... ........ ..... . . .... . ........................................................................................................................................................................................................................... ....
Matt Bitsche
Russ Reynolds`
(7) 679A876
Good people drink good kxer,