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4B Sales Tax Corporation Minutes - 09/07/2017PRESENT: Tony Fidelie, President § Members Rick Hatcher, Secretary -Treasurer § Glenn Barham, Vice -President § Dave Clark § Darron Leiker § Michael Mills § Jim Dockery, Deputy City Manager § City Staff R. Kinley He land, Jr., City Attorney § Linda Merrill, Recording Secretary § Brett Johnson § Overland Property Group Pat Beatty § Andy Lee § Andy Lee Co./OPG/Ganache Cynthia oten § Half Pint Taproom Amber Schacter § Ganache Co. Jeremy Stentruck § Axis Construction Beau Dameron § Legacy 922, LLC Walter Lambert § SBDC at MSU Steve Wood § Wichita County Heritage Society Delores Cullet' § Claire Kowalick § Times Record News AiDSENT: Derik Schneider § Member 1. Call to Order Tony Fidelie called the meeting to order at 3:00 pm. 2. Public Hearing to Discuss Funding Request for the Overland Property Management Group/OPG Lamar Partners, LLC to historically preserve and renovate the building at 1100-1102 Lamar Street. Mr. Fidelie opened the public hearing at 3:02 p.m. NA—legaMA, 4B, DDSC, TI SAB CorpAB Minutes\2017\2017,9,7\Minutcs-4B-2017.9.7,doe WFEDC — Minutes of September 7, 2017 2 Bret Johnson, Senior Partner with Overland Property Group, 5345 W 151" Terrace in Leawood Kansas, addressed the Board. OPG last presented in June regarding this project. This $8 million development would be named The Landmark on Lamar. The allocation in federal, state and historic tax credits is a little over $4.5 million, and they have made a personal investment in the project. This building would be the first affordable independent senior housing development, in Wichita Falls. It would provide 30 units, with 4 unrestricted market units open to anyone 62 or older. The lower level of the property would be available for retail space. He understands there were questions about the cost of acquisition. They paid $750,000 for the property. However, a lot of abatement work had been done by the previous owners, as well as roof work, engineering and architectural work. OPG put $100,000 down, which they will not get back, whether or not the deal is consummated. The construction estimate of $3.479 million is based on the shell of the building. At the June meeting, there was a financing gap of $625,000, and OPG was requesting $558,000 from the 4B Board, The tax credit allocation had not yet occurred, and they only had the preliminary architectural and engineering numbers. They estimated the sale of the tax credits at 89 cents, but that value has actually risen by a nickel. However, construction costs have risen, as well. That $3.479 million estimate actually came in at $4.6 million. Value engineering reduced costs by $400,000, but there is a net increase of $748,000. Eligible 4B costs total $572,787. The total gap in funding today is $548,326, which is down from their last request even with the increased construction costs. Their request today is $400,000, down from the original $558,000. Mr. Fidelie asked the timeline on this project. Mr. Johnson estimates a mid -2019 opening. Mr. Fidelie asked what would happen if the Board does not grant the funding request. Mr. Johnson said this gap is insurmountable without assistance. Mr. Leiker said the Board typically provides reimbursement funding upon project completion. Mr. Johnson replied that the commitment of the funds is the essential key. Michael Mills said a lot of the expenses are outside of what the 4B Board typically funds. Mr. Hegglund said this is the first affordable housing project ever brought to the Board. Local Government Code §505.153 allows 4B to fund expenses on affordable housing prqj ects without restriction. Mr. Fidelic closed the public hearing at 3:31 p.m. 3. Public Hearing to Discuss Funding Request for Ganache Custom Cakery, LLC to historically preserve and renovate the buildings at 800-806 Ohio Street. Mr. Fidelic opened the public hearing at 3:32 p.m. Arnber Schacter thanked the Board for revisiting this project. She is passionate about the Zales building, and its historic position in the community. She is seeking funding for infrastructure in the amount of $283,891. Her company has made an investment of $1.9 million in this property. She will open two restaurants this year - the Karat Bar and Bistro and Ganache to Go - that will serve as catalysts for downtown development. She also has plans to open the Morris Supper Club at a later date, assuming proper funding comes through. WTEDC — Minutes of September 7, 2017 3 She had the list of items needed to be done inside the building preapproved by the City Attorney for 4B eligibility. The outside of the building has been refurbished, but the inside has a dirt floor, no ceiling, lighting, plumbing or gas. Mr. Fidelie applauded her efforts to get the items preapproved. Mr. Leiker asked what would happen if the 4B did not vote to approve her request. Mrs. Schatter said the Karat Bar and Bistro and Ganache to Go would still open this year, but she would have to continue to look for funds to finish development of the rest of the building. Mr. Fidelie closed the public hearing at 3:42 p.m. 4. Public Hearing to Discuss Funding Request forte Wichita County Heritage Society's Kell House Museum Renovations at 900 Bluff Street. Mr. Fidelie opened the public hearing at 3:42 pm. Steve Wood, Board President of the Wichita County Heritage Society, of 5011 Silvercrest in Wichita Falls, introduced Executive Director, Delores Colley. Mrs. Colley said the Kell House Museum is one of only two historic house museums in Texas that contain 95% of its original contents. They are asking for help to save one of the most significant buildings in Wichita Falls. Mr. Wood reminded the Board of the importance of Messrs. Kemp and Kell in the founding of this city. In 1901, they started the process for Lake Wichita, In 1907, Mr. Kell beg Times Publishing. They built the Kemp and Kell Building in 1911, now known as the Holt Hotel. In 1937, Mr. Kell matched a grant to start what is now Midwestern State University. He also helped bring Call Field to Wichita Falls in 1917. Mr. Wood said this is a two-phase project; phase I began, in 2013. The drought caused foundation issues for the structure, The Society raised $400,000 then, including funds from the 4B Board.' Phase 2 will consist of restoration and rehabilitation of the exterior and interior of the museum. The brick repair alone will cost $275,000, and front porch and column repair is estimated at $185,000. This total restoration is budgeted at $2 million. They have raised $336,000, mostly from memberships. Other funding sources include foundations and grants. They are requesting $200,000 from the 4B Board. Mr. Fidelie closed the public hearing at 3:55 p.m. 5. Public Hearing to Discuss Scope Modifications and Funding Request for 922 Indiana LLC, Mr. Fidelie opened the public hearing at 3:56 p.m. Beau Dameron, I Worthington Court, Wichita Falls, spoke on behalf of 922 Indiana LLC. He thanked the Board for the original pledge to his company last March for assistance with fire suppression. He is here to request a modification to that original agreement. Excerpt,from WFEDC minutes of August 1, 2011: ".,.Delores Colley reminded the Board they seek funds for stabilization of the 102 -year-old Kell House, This three-phase project will take place over 3 to 5 years and total approximately $1.5 Million, They have raised over $235,000 for Phase One, and now need $166,746.,, Mr. Nimz moved to provide money to aid in the stabilization of the Kell House (Phase One). The motion was seconded by Mr. Fidelie. Mr, Ginnings asked Mr. Nimz if he would amend his motion to specify the amount of $40,000, to which Mr. Nimz agreed, The motion unanimously carried, Mr. Leiker clarified that the grant of funds is predicated upon the Heritage Society raising the entire amount needed for Phase One...The motion unanimously carried." WFEDC — Minutes of September 7, 2017 4 The money was to be awarded once a Certificate of Occupancy was awarded for a general store/soda and ice cream parlor. However, their plans to open a grocery store have fallen through for a number of reasons, and they will now only have a soda fountain/ice cream parlor. They will be making their own ice cream and using local products as much as they are available. They envision the store becoming a destination point downtown, and it is in a family friendly location across from the Wichita Theater. They have painted, restored the tin tiles on the ceiling, and the hardwood floors. The fire suppression system has been installed on all three floors. They are in the process of getting permits to install the bathrooms and lighting. Once the permits have been issued, construction should be completed in a couple of months. Syd Litteken, architect, 1904 Club View, Wichita Falls, said he and Mr. DamBron met with Building Inspection this week. He can have plans put together in a couple of weeks. This is one of the better renovated buildings downtown, and the City has helped to save it. Mr. Hegglund asked the total cost of the fire suppression system. Mr. Dameron said the system cost $87,000, and the permit cost $2,700. Mr. Leiker asked their anticipated hours of operation. Mr. Dameron said Friday -Sunday, 11 a.m. - I I p.m.; Tuesday -Thursday, I I a.m. - 9 p.m.; closed Mondays (to make the ice cream). Mr. Dockery asked how many jobs would be created. Mr. Dameron estimates between 4 to 7 within a year's time. Mr. Fidelie closed the public hearing at 4:12 pm. 6. Consider Approval oft e 2017-18 Budget The Board has before it the proposed budget for consideration. Projected revenues for 2017-18 total $4,096,500. Expenditures total $2,797,672, giving the Board $1. million of revenues in excess of expenses with which to address projects throughout the year, The Board would have an estimated cash balance beginning at $4,036,000; of that sum, $1.2 million is reserved for encumbrances, leaving $4,127,000 in unreserved funds. That would change throughout the year as the Board considers and approves various projects. • Sales tax receipts - The I Oth month of sales tax receipts for this fiscal year have been received, and they are up 3.35% from this time last year. He has budgeted no increase for this line item. • Repayments from TIF#2 of $357,600 for the Maplewood extension and the Call Field/ ea Road extension. * $15,000 interest earned. Expenditures: • Downtown improvement grant program is budgeted at $50,000. • CVB funding incentive — staff recommends continue funding of this line item so that the CVB can continue to incentivize conventions to come to the community. 9 MDT/CAD/RMS — annual debt service obligation. WFEDC - Minutes of September 7, 2017 5 • Street improvements — no funding in this line item. It may be a year premature to stop funding, as no debt service for the hotel is anticipated this year, but some say this money could be used to address other debt service. • Administrative expenses of $10,000 to help reimburse the time of Legal and Finance. Buxton retail recruit - $50,000. The option period is up around March, and is calendared to be revisited at that time. Rick Hatcher moved- seconded by Glenn Barham to a rave the 2017-18 bud get as presented The motion carried 6-4. 7. Executive Session Mr. Fidelie adjourned the meeting into executive session at 4:31 pm. pursuant to TEXAS GOVERNMENT CODE section 551.087, He announced the meeting back into regular session at 5:47 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. Consider approval off i forte Overland Property Management Group/OPG Lamar Partners, LLC to historically preserve and renovate the building at I too - 1102 Lamar Street. Mr. ik r moved t a e ufu n dr �n h land Over to t 0 0" i e to u Le MM,agnPrQ art �qxerLient Group/QPQ Lamar Partners LLC to histor d renovate the ro art Lr = ��=ca reserve an a qT�qrSl�reet�h �ae ear �forivae lo�qn It the funds bL�rovided ov" r. r it It' s�dtob Clark �ak t on f C 1c t of Occu c i rt � i � s S 0 t ll"-"O� t iswsacd�ccond once the ro e_t corn Jere d a e i ae an the motion—carried 6-0. 9. Consider approval of funding for Ganache Custom Cakery, LLC to historically preserve and renovate the buildings at 800-806 Ohio Street. Mr. Fidelic moved to continue the fund ilMVTgyipjroved GanacheCust om Cake e $45 000 when the Morris Su er Club identified f Occu ancv is issued- additional) _L he moved tQ a rove 45 404 when the a stairs atiQ bar ed as Phase�e.Eqeh hese Qf fundinx is to in tl�e form. o a txvc� .ear for ival to and the fundi are onl to be used for fire cession lumin > infrastructure and electrical anfrast cture. Seconded b Mr. Hatcher. the motion carried 6-0. to. Consider approval of funding for Wichita County Heritage Society's Kell House Museum Renovations at 900 Bluff Street. Mr. Leiker moved tQ rant a to 100 000 to the Wichita Count Herita e Societ 's Kell House Mus amount of 54 044, U on raisin this i50 040 the Jffl C will grant the 144 000 to the Wichita Count Herita e Societ . Seconded b r. etcher the motion carried fi�0. WFEDC — Minutes of September 7, 2017 6 it. Consider Scope Changes and Funding for 922 Indiana C. Mr. Fide ie ed allow the char e le a racer store/soda fountain sho f h r m �b from to c of sco from I mov to 'I u or or e e racer ( store from the to a soda to n!ainlice ere ar 00 922 Indiana LLC and remove t E io I f r 0 0 still t 11 Ilow a w s . S roved aivable loan to o ect et sl a the 65 a e a )roved as a fiv ea 0 ivable an r 0 s r v r 1v r f a for t e f su r s , 0 s St S co r Cl t It Ire cessions n em. Seconded b ark he motion c ied 6 0 12. Consider and Adopt a Resolution Directing Publication of Notice of Project and Notice of Public Hearing Mr. Leiker moved to ado the resolution directinQ Dublication of the notice of 2r ect and notice oil Dublic hearin as included in the Board's a ends packet with saidpublic he to be held Q, o li'r 16 2017 at CI1).m. Seconded b Glenn Barham the motion carried 6-0. 13. Adjourn The meeting adjourned at 5:54 p.m. Guy "To " �Fidelf Jr.,�Presid`cnt