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4B Sales Tax Corporation Minutes - 05/19/2017MINUTES OF THE Atcum FALLS 4B SALES TAX CORPORATION (4BSTC) May 19,2017 PRESENT: Tony Fidelie, President Rick Hatcher, Secretary -Treasurer Dave Clark Darron Leiker Michael Mills Stephen Santellana, Mayor Jim Dockery, Deputy City Manager R. Kinley Hegglund, Jr,, City Attorney Linda Merrill, Recording Secretary Henry Florsheim, CEO Dent Keltner Cynthia Doten Eric Antill Dwayne Jackson ABSENT: Glenn Barham, Vice -President Derik Schneider Call to Order § Members § Mayor and City Council § City Staff ti § Chamber cif Commerce and Industry § Half Pint Taproom § 4 Kidz Sake/Wichita Theatre § Members Tony Fidelie called the meeting to order at 3:00 p.m. 2. Approval of Minutes (MaY 1, 2017) Rick Watcher moved seconded Dave Clark rave the mutes subject tocorrection i the first ars ra undo A royal a of Minute-, (Rich jEj�gypcl for Rickj. The Motion _carried 5-0. 3. Report of Financial Condition —presented by Jim Dockery The Board has an adopted budget of $4.067 million in anticipated revenue. Six months into the year, sales tax revenues are .05% ahead of last year's collections at $1 .077 million. Barring an unforeseen spike in either direction. revenues should be very near the adopted budget by the end of the year. Expenditures are on target, a lot of which are debt service obligations. The street improvements, budgeted at $400,000, came in at $375,000. NA—legalAA, 413, DDSC, TIFSAB Corp\4B Minutes\2017\12017,5 19\Minutes_4B_2017.5. 19.doc WFEDC— Minutes of May 19, 2017 4. Public Hearing and Discussion Regarding Additional Funding for it Suppression Costs Associated with Development at 817 Ohio Mr. Fidelie opened the public hearing at 3 ):07. Dent Keltner reminded the Board that it had already approved $30,0001 for fire suppression for the Half Pint Tap Room and Restoration Hall. At that time, they were still acquiring funding and working with estimates. They now have architectural plans, new bids have come in, and the fire suppression costs are $14,000 higher than anticipated. In addition, they must run a gas line 210 feet down Ohio at an approximate cost of $8,000, as the current line is insufficient for their proposed operations. They are requesting $22,000 from the Board. They have signed the Armes work order, and ordered the fire suppression system from James Lane. Kinley Hegglund asked Mr. Keltner if this project would go forward whether or not the Board provided the requested funds. Mr. Keltner said that they would proceed. Mr. Clark asked their overall investment in the property. Mr. Kellner replied that they have $819,800 invested in the property, but will invest an additional $100,000, Mr. Kellner also estimates that the business will pay $15,000 in sales tax per year once in operation. Michael Mills asked why they were making a request for the expense to lay the gas line. Mr. Kellner said the current gas line does not have the required BTUs to support their project. Utilities in certain areas downtown are not sufficient for development. The gas line would serve any other business that would connect to the line. Mr. Mills said it would be unprecedented for the Board to grant additional funds for the same project, and asked why they were requesting more money for fire suppression. Mr. Keltner said the first bid is two years old, and they have added a 1,200 square foot mezzanine area. Mr. Fidelie closed the public hearing at 3:18 p.m. 5. Public Hearing and Discussion Regarding Funding for 4 Kidz Sake of Wichita Falls (the Wichita Theatre) for Staging, Lighting, and Sound Equipment at 924 Indiana Mr. Fidelic opened the public hearing at 3 : 19 p.m. Dwayne Jackson said the Wichita Theatre began doing murder mysteries and melodramas a year ago, with great success. They acquired 914 Indiana across from the Theatre, and plan to open a dinner theatre and put on one -scene live shows. They have expanded their seating from 76 to 100 seat capacity, and anticipate 80-90 total performances annually. They would make the building available for special events. It would also serve other needs, such as for youth academy, youth classes and rehearsal space. They are requesting $94,000 for staging, lighting and sound equipment, and $80,000 for fire suppression, Ile has yet to investigate the possibility of obtaining a waiver for the fire suppression system. Mr. Dockery said the City does not grant such waivers in order to protect the Mr. Leiker moved to approve funding up to $30,000 in the form of a five-year forgivable loan, to be forgiven at a rate of 20% each year, to be reimbursed to Half Pint 111, LLC, for the downtown redevelopment project at 817 Ohio as described in their proposal once it has obtained its Certificate of Occupancy. Seconded by Mr. Fidelie, the motion carried. (C icer 8126116 4BST(_'mmutes) WFEDC —Minutes of May 19, 2017 3 public, Mr. Jackson said they would obviously love to have it, but it was an unexpected expense on top of their original project. They are to begin a major fundraising campaign next week, but did not anticipate including this project in the campaign. Mr. Fidelie asked if this project would move forward whether or not funding is acquired from the 4B Board. Mr. Jackson said they had an immediate need for this space, so that is why they approached the Board with this funding request. Otherwise, the project will be postponed for one year to 18 months. Mr. Dockery asked about the company. Mr. Jackson said 4 Kidz Sake is a 501(c)(3) corporation, and Wichita Theatre is the dba. There are three employees, and seven are paid on a contract basis. Mr. Hatcher asked where the Theatre derives its income, other than donations. M. Jackson said the majority comes from popcorn, t -shirt and ticket sales. They also rent the facility, and have a program in the schools funded through a grant, Mr. Fidelie closed the public hearing at 3:39 p.m. 6. Public Hearing and Discussion Regarding Funding for a Comprehensive Economic Development Strategy Mr. Fidelie opened the public hearing at 3:42 p.m. Darron LBiker said the City Council held a strategic plan work session in February. The top two goals to come out of that were downtown revitalization and economic development. Henry Florsheirn said the 4A Board is tasked with figuring out bow to create primary jobs, but cannot control a lot of what affects economic development — quality of life, quality of schools, etc. Based upon the City Council's desire for an overall economic development strategy, he researched 20 consulting companies. He narrowed that list down to four. A group consisting of himself, Mr. Fidelie, Mr. Leiker, and Dick Bundy, president of the 4A Board, interviewed those firms via the phone,, and invited two of them to submit proposals. The group chose Mac Holladay's firm, Market Street Services. Mr. Holladay has done projects for a lot of cities, including a few in Texas. lie has not done so many in Texas, however, that Wichita Falls will receive a carbon copy plan. The number two consultant, in fact, was impressive, but her downfall was that she had done projects for several Texas cities. The strategy will be a 10 -month, six -phase process: 1. Project initiation-, familiarity tour (steering committee of 25-30 leaders) 2. Regional assessment (develop "score cards,," review existing plans and visions, comparison to peer cities) 3. Target sector analysis (evaluate infrastructure sites, workforce, staffing, educational programs, marketing efforts, websites) 4. Develop strategy 5. Implement plan (assign individual roles/responsibility) 6. One-year assessment (formal presentation to stakeholder group) WF EDC —Minutes of May 19, 2017 4 The total cost is $170,000, plus an estimated $13,500 for travel and other expenses. The 4B and 4A boards are being asked to split the costs at $91,750 each. The 4A Board approved their portion of this project at their meeting yesterday. Mr. Fidelie noted 4A Board also approved $500,000 for parking improvements for the Gatehouse DoubleTree hotel. Mr. Florsheim said (4A member) Reno (Gustafson) asked that the bid be changed to an 'add alternate' to see if it would be affordable to pave the entire lot west of Burnett at one time, rather than only half of it. Mr. Florsheim hoped they could establish a long-term relationship with the firm, where ideally, each following year, the costs are not as high, Mr. Leiker said Austin has hired the firm three times. Mr. Fidelie closed the public hearing at 4:05 p.m. 7. Executive Session Mr. Fidelie adjourned the meeting into executive session at 4:08 p.m. pursuant to fEXAS GOVERNMENT CODE section 551 .087. He announced the meeting back into regular session at 4:41 p.m. The subjects posted in the Notice of Meeting were deliberated, and no votes or further action was taken on these items in executive session. 8. Approval of funding for a Comprehensive Economic Development Strategy Mr. Clark moved to ano)rove 50% of the lundin— car u to $91 750 to retain Market Street Services to d v to a Comirehensive economic devel:; meat straten Seconded b Rick Hatcher the motion carried 5-0. 9. Approval of Additional Funding for Fire Suppression Costs Associated with Development at 817 Ohio Mr. Leiker mov ssion costs associated with the develoPment at 817 (hio structured as a 1`6017ivable loan rorated over Certificate of Occimane y, Seconded by Mr. Clark, the motion carried 5-0. 10. Approval of Funding for 4 Kidz Sake of Wichita Falls (the Wichita Theatre) for Staging, Lighting, and Sound Equipment at 924 Indiana No action was taken on this item. Mr. Dockery said he would explain to Mr. Jackson that the Board would rather consider a request to fund fire suppression costs, or some portion thereof, than staging, lighting, and sound equipment. However, as that request was not on the agenda, it could not be considered at this meeting, and would have to be placed on a subsequent agenda for consideration. I L Adjourn. The meeting adjourned at 4:43 p.m. Guy A. ny" Fidelie, Jr_ President