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4B Sales Tax Corporation Minutes - 06/30/2017MINUTES OF THE WICHITA FALLs 4B SALES TAX June 30, 7 EE Tony Fidelie, President § Members Rick Hatcher, Secretary -Treasurer Glenn Barham, Nice -President Dave Clark arron Leiker Derik Schneider § Jim Dockery, Deputy City Manager § City Staff R. K.inley Hegglund, Jr., City Attorney Linda Merrill, Recording Secretary Henry Florsheim; CFO § Chamber of Commerce and Industry K" Downs § Professional Wrestling Hall of Fame John Lusk Mantell § Pat Beatty § Overland Property Corp. Matt Gill Andy Lee § Rep. Overland Property & 'r` ache, LLC Bret Hanes § 4 Kidz Sake of Wichita.. Falls Claire Kowalick § Times Record News Carter Kowalick § SENT Michael Mills § Member 1. Call to Order Tony Fidelie called the meeting to corder at 3.00 p.m, . Approval of Minutes (May 19, 20 17 Glenn Barham moved. seconded by Dave Clark to a rove the minutes. The motion carried Ci -O, 3. Public Hearing to Discuss Funding Request for Professional Wrestling Hall of Fame Museum at 712 8thStreet Mr. Helie opened the public hearing at 3:01 p.n. Johnny Mantell said the Museum is the only brick and mortar Hall of lame and Museum for professional wrestling, and was a group effort with Downtown Proud and the Chamber o N:\ legaNA, 4B, DDSC, TIFSAB Corp\4B Minutes\2017\2017,6,30\M nutes_4B_ 017.6 3O.doe WFEDC — Minutes of June 30, 2017 Commerce. Over 11,000 visitors have toured the facility from 47 states and 18 countries since it opened 15 months ago. They want to upgrade the museum with LED lighting, mannequins and new display cases. They are seeking assistance for induction ceremony expenses, as well. The museum owns about 600 hours of tape they want to have digitized and shown throughout the museum. Henry Florsheim, said this is the most unique tourist attraction for Wichita Falls. If not for this Hall of Fame, many people would not stop in Wichita Falls to spend their tourism dollars. The museum has done what it promised it would do. Mr. Mantell added that the wrestlers who come to town are very cooperative and happy to support the City in any way. Mr. Fidelie explained that any monies granted by the 4B Board would be done on a reimbursement basis based upon receipts of items purchased. Mr. Mantell was satisfied with that procedure. Mr. Fidelie closed the public hearing at 3:20 pm. 4. Public Hearing to Discuss Funding Request forte Overland Property Management Group/OPG Lamar Partners, LLC to historically preserve and renovate the building at 1, 100-1, 102 Lamar Street. Mr. Fidelie opened the public hearing at 3:22 p.m. Andy Lee addressed the Board as a consultant of Overland Property Management ("Overland"). He spoke on the historic nature of the property in question, (former Maskat building), This is a tax credit, affordable housing project in competition in the State of Texas. It is leading in points, but they are about $750,000 short. The request before the Board is for $557,000 on this $6.4 million project. Mr. Lee said they are using only state tax credits and will probably have to sell them. By selling them, they can only use qualified expenses. Those expenses not qualified are paving, curbing, the parking lot, and all outdoor ADA requirements. Those costs are $245,000. The fire escape need repaired, as does the fagade of the building. New doors need to match the historic nature of the building. The cost to install an elevator is estimated at $180,000, and fire protection, not including the 6" line to the building, is estimated at $135,000. Matt Gillam, Vice President of Development, said Overland has done three projects in this area within the past five years, all funded through tax credits. It is difficult to budget for historic rehabilitation projects. They have applied for soft funds from a variety of sources. They believe they will be successful with federal tax credits and historic tax credits. Those funding mechanisms will allow for about 70-80% equity in the building, so they will have a 20-30% loan permanently on that building. Since it is affordable housing, it cannot support huge debt requirements. This would be a senior living facility; Wichita Falls is underserved in this area (beginning at age 55, but on average 78-84 years of age). Mr. Hegglund asked if the building is affordable housing as defined by the U.S. Code. Mr. Gillam said it is as defined by Section 42 of the IRS, enacted in 1986 to encourage public and private partnership to build affordable housing. It is 100% affordable housing. Mr. Fidelic asked the rent on the apartments. Pat Beatty, also of Overland, said rent would be from $400 to $700, in line with their other properties. Mr. Gill arn said the entire first floor would be commercial. No affordable housing tax credits could be used to improve that area. Mr. Leiker asked what type of businesses he envisioned. Mr. Gill arn said more than one tenant would likely fill that 6,000 square foot space. Mr. Beatty said it might be nice to tie the business(es) to the tenant group. Mr. Leiker said it might be more appropriate for the 413 Board to consider the request if the tenant served the entire downtown area, rather than only that specific building, Mr. Clark said the acquisition price seems very high. Mr. Gillam, said they tried every negotiating tack they know, but nothing worked. Mr. Dockery asked what happens to the project if the 4BSTC does not grant this request. Mr. Gillam, said they would have to figure some way to fill that gap, but the likelihood of finding additional funding sources is small, Mr. Dockery asked if they would cut amenities. Mr. Gillarn said the amenities are required by the state. He and his partner are masters at figuring out how to cut waste. If they cannot find other sources of funding, they would have to give back the tax credits, Mr. Dockery asked how long they would have before that happened, Mr. Beatty said they have to start construction by this time next year, and find all sources of funding by the end of this calendar year. Mr. Dockery wondered if they were premature in coming to this Board to seek funding; they might come in under budget or find other sources of funding, Mr. Gillarn said they have until the end of July on the tax credits. Investors will ask about the big gap and may not be interested, tie does not know about any other sources of funding, unless there is a foundation. They know the "game," and this is a unique situation. Mr. Fidelie closed the public hearing at 4:04 p.m. 5. Public Hearing to Discuss Possible Funding for 4Kidz Sake of Wichita Falls (the Wichita Theatre) at 924 Indiana Street Mr. Fidelie opened the public hearing at 4:05 p.m. Bret Hanes appeared on behalf of 4Kidz Sake as a follow-up to the presentation made by Dwayne Jackson at a previous meeting (May 19). One bid for fire suppression had been submitted at that time. 'the Board had requested a second estimate, and that has been forwarded. Mr. Dockery reminded the Board that Mr. Jackson had submitted a request for staging, lighting and sound, and the Board asked that he instead specifically request funding for the fire suppression system. Mr. Hanes said the bid from James Lane is $59,000; while the B&H bid is for $100,000, based on installation between the second floor and recessed ceiling tiles and below the ceiling tiles. James Lane's bid is only for below the ceiling tiles. Mr. Hegglund asked what Bobby (Teague) required. Mr. Hanes said they have not heard. The property at 922 Indiana was recently redone, and they were only required to install below the ceiling tiles. Mr. Leiker asked the per it price cornparison. Mr. Hanes did not know. Mr. Fidelie closed the public hearing at 4:08 pm. 6. Public Hearing to Discuss Funding Request for Ganache Custom Cakery, LLC to historically preserve and renovate the buildings at 800-806 Ohio Street. Mr. Fidelie opened the public hearing at 4:08 p.m. Andy Lee represented Amber Schatter at today's meetin& She and her corporations own the building. 4 WFEDC — Minutes of June 0, 2017 It is envisioned to be a four-star restaurant, with a bar and grill component, and she will continue her cupcakes on a take-out basis on Stn Street, There will be white tablecloth dining in the Morris Room. She will stay in context with the history of the building by using the existing vault and the metal ceiling. She has made deals with local vendors from the Farmer's Market for her menu for vegetables and local wines. The problem is with the City Code and the change of occupancy. With the installation of the fire suppression system, all the tin ceiling tiles have to be removed and reinstalled. The utilities have to be upgraded, including a new grease trap and 10' of sanitary sewer. Mrs. Schacter is pursuing the state tax credits of 25%, and the national register 20% tax credits, and is willing to commit another $300,000, but that still leaves this project about $255,000 short. She is going to rent out parcels "C" and "D" of the property to a retailer and to an out-of- town restaurant. Mn Hatcher asked if the debt can be serviced without having to rely on tenants ;6U forward, for and "D." Mr. Lee said they need those tenants moving f ard Architect Sy d Litteken discussed the plans for the business, Mrs. Schacter wants to expand onto the parking lot and install awnings. There will be two dining areas that will seat 120. The roof will hold a second floor wine deck, Mr. Hatcher asked if an elevator is required. Mr. Litteken said if the same items are served downstairs as will be served upstairs, there is no requirement for an elevator. A new staircase would have to be put in, however. Mr. Dockery asked how important it was for development that the City made the intersection/infrastructure improvements. Mr. Litteken said it is the catalyst to everything that is happening. None of the new development would be occurring had the City not made those improvements. Mr. Hegglund noted that a lot of the request falls in the restaurant and retail categories. The 413STC is limited to infrastructure for improvements that are limited to streets and roads, rail spurs, water, sewer utilities, electric utilities, gas utilities, drainage, and related projects. Mr. Dockery thinks there is sufficient itemization to determine whether certain items will be eligible. Mr. Fidelie closed the public hearing at 4:36 p.m. 7. Action item regarding discussion and possible 2nd year funding for Buxton to provide retail recruitment services. Discussion on this item was reserved for the executive session. 8. Executive Session Mr. Fidelie adjourned the meeting into executive session at 4:37 pm. pursuant to TEXAS GOVERNMENT CODE section 551.087. He announced the meeting back into regular session at 5:43 pm. The subjects posted in the Notice of Meeting were deliberated, and no votes or further action was taken on these items in executive session. WFEDC — Minutes of June 30, 2017 11 9. Action item regarding possible funding for Professional Wrestling Hall of Fame & Museum at 712 8th Street 0 000 on a �rreirq�bbursement basis Mr. Fidell �a�th end ur c u S . Seconded e e' edit of it e of " 0 0 e move to rove or is I s r for manne u i. Seconded $4 000 for d a ca, $2 500 for i Inin and $3 500 Mr. Clark the motion carried 6-0. 10. Action to regarding possible funding for 4Kidz Sake of Wichita Falls (the Wichita Theatre) at 9241 is a Street Mr. Clark moved to a rove ii ii i) to $20 000 toward the costs of the fires cession y a a oloi ble associated with the devel ament at 924 Indiana structurei I p s r�qiivqble loan cora ed ro c stem ssoc 0 _10 Certificate f 0 =nSecorndead CCU v rs c t 0 rs 0 t rt c over five ca, ontin en n the dev e banin aCe at b r. Leiker the motion c ried 6_0 11. Action item regarding possible funding for the Overland Property Management Group/OPG Lamar Partners, LLC to historically preserve and renovate the building at 1100-1102 Lamar Street. This item died for lack of a motion. 12. Action item regarding possible funding for Ganache Custom Cakery, LLC to historically preserve and renovate the buildings at 800-806 Ohio Street. Mr. Leiker moved to a rove 111 J to 105 000 toward the costs of' fire sil cession and electrical im rove. ants associated with. the level mcnt at lit}0806 {thio Street....st ,ct ed s a for ival to Torted over five e s Contin .ant a on the dcvelo ers otainin � a Ceriificfate f +Ciccu c °and further findin that such e enditure worald hal ro oto new or ended business ante rises. Seconded NIT. Ilateher the motion carried 6-0. 13. Action item regarding discussion and possible 2nd year funding for Buxton to provide retail recruitment services. ��������cond-eaqr fibindin for Buxton to Mr. Fide d a rove 5 d 5 With c i0e i rn� 0 �X=e and th�eir t retail r 'i move t toices. S U to ' 0 00' for se eiker the motion carried 5-1, with rovide re a recruitment se Seconded b r L 11 it FI ::�:�r voti 0 ositio Mr oc ry will set � J_Ieo� t n s t up a call with Henry Florsheim and their Mr. hater in n Dockery Vice President. 14. Adjourn. The meeting adjourned at 5:50 p.m. '- G3�y —uy—A.-' 4'Fon Fidelic, Jr., President