Apr 03, 2024 Venue Board Meeting

[CALL TO ORDER ]

[00:00:05]

FOR COUNTY EVENTS, VENUE, DISTRICT TO ORDER.

WE HAVE A QUORUM.

AND SO NOW WE'LL MOVE INTO THE PUBLIC COMMENT PERIOD.

[PUBLIC COMMENTS ]

THE PUBLIC COMMENT PERIOD WILL ONLY ALLOW MEMBERS OF THE PUBLIC TO PRESENT IDEAS AND INFORMATION TO BOARD OFFICIALS AND STAFF.

ANY, ANY OF THE PUBLIC LIKE TO MAKE A COMMENT? YES, JEFF, I'LL JUST MAKE A COMMENT.

JEFF SALIMAN FRONTIER, TEXAS.

JUST THAT WE APPRECIATE THE TIME OF THIS BOARD TO CONSIDER THIS AND TO KEEP THIS MOVING FORWARD ON BEHALF OF FRONTIER TEXAS AND THE EXPO CENTER.

AND WE JUST APPRECIATE Y'ALL'S TIME.

THANK YOU. THANK YOU.

JEFF. ANYONE ELSE IN THE PUBLIC WOULD LIKE TO MAKE A COMMENT DURING THIS PERIOD? AT THIS TIME, I WILL CLOSE THE PUBLIC COMMENT PERIOD, AND NOW WE WILL MOVE TO ITEM NUMBER ONE, THE APPROVAL OF THE MINUTES FROM NOVEMBER

[1. Minutes: Approval of the Minutes from the Regular Meeting Held on November 20, 2023 ]

I MOVE THAT WE APPROVE THE MINUTES FROM THE PREVIOUS MEETING.

SO MOVED.

HAVE A MOTION FROM JUDGE CROWLEY AND A SECOND FROM MAYOR WILLIAMS. YOU'RE GOING TO BE CALLED MAIER THE REST OF YOUR LIFE, CAN I GARY? SO WE HAVE A MOTION AND A SECOND.

ALL IN FAVOR SAY AYE.

AYE. ANY OPPOSITION? SAME SIGN. THE ITEM PASSES.

ARE THERE ANY CHANGES? NONE. SO WE'VE GOT PAST THAT.

AND SO WE WILL MOVE TO ITEM NUMBER TWO.

[2. Election of board officers ]

I WOULD ASK FOR NOMINATIONS FOR THE BOARD FOR POSITIONS OF PRESIDENT, VICE PRESIDENT, SECRETARY AND TREASURER.

AND I WOULD MAKE A MOTION THAT WE KEEP THE OFFICERS THE SAME.

SECOND, WE HAVE A MOTION FOR MR. MCALLISTER WITH, WITH THE EXCEPTION THAT WE ADD A SECRETARY AND A TREASURER BECAUSE WE DON'T HAVE ANYBODY THERE.

ALL RIGHT. SO WE HAVE A MOTION FROM MR. MCALLISTER TO KEEP THE OFFICERS THE SAME.

CHUCK STADLER'S PRESIDENT KYLE MCALLISTER AS VICE PRESIDENT, BUT ALSO FILL THE VACANCIES OF SECRETARY AND TREASURER.

DO WE HAVE ANYONE THAT WANTS TO NOMINATE SOMEONE FOR SECRETARY OR TREASURER? I WOULD NOMINATE PHIL FOR THE SECRETARY.

SO, ANTHONY, ARE YOU THIS MAY BE MY LAST MEETING.

OKAY, THEN. THEN. SHEA.

SHEA. AMEN.

SHEA IS TREASURER AND PHIL SECRETARY.

ALL RIGHT. I'LL SECOND THAT IN A SECOND ON THAT, BECAUSE WE HAVE A MOTION AND A SECOND TO FOR THE FOLLOWING BALLOT FOR PRESIDENT CHUCK STATLER, VICE PRESIDENT KYLE MCALLISTER FOR SECRETARY, JUDGE PHIL CROWLEY, AND FOR TREASURER SHEA HALL.

WITH THAT MOTION AND A SECOND ALL IN FAVOR OF THAT SLATE OF OFFICERS SAY AYE.

AYE. ANY OPPOSED? ALL RIGHT. LET'S MOVE TO ITEM NUMBER THREE, THE APPROVAL OF THE ORDER PROVIDING FOR THE IMPOSITION AND LEVY OF ADDITIONAL HOTEL OCCUPANCY TAX, EQUAL

[3. Consider and Adopt an Order Providing for the Imposition and Levy of an Additional Hotel Occupancy Tax Equal to Two Percent (2.00%) for Venue Projects Approved by the Voters in the Abilene-Taylor County Events Venue District on November 7,2023 and Consisting of the PI a nning, Acquisition, Establishment, Development, Construction, Renovation, Maintenance and/or Operation of: Frontier Texas!, a Museum and Visitors Center for Transportation and Western Heritage; and the Expo Center of Taylor County; Together with Related Infrastructure and Other Related Improvements; and Containing Other Provisions Incident and Related to the Purpose of this Order. ]

INCIDENT AND RELATED TO THE PURPOSE OF THIS ORDER.

ARE THERE ANY QUESTIONS RELATED TO THIS ITEM? SEEING NO QUESTIONS.

I WANT TO ASK FOR A MOTION AND A SECOND FROM THE BOARD TO A MOVE TO MOVE TO THE APPROVAL OF THE ORDER PROVIDING FOR THE IMPOSITION THAT'S IMPOSING.

RIGHT? OKAY. IT'S NOT AN IMPOSITION.

OKAY. AND THE LEVY OF AN ADDITIONAL HOTEL OCCUPANCY TAX, EQUAL TO 2% FOR VENUE PROJECTS APPROVED BY THE VOTERS IN THE ABILENE-TAYLOR COUNTY VENUE DISTRICT ON NOVEMBER 7TH, 2023 AND CONSISTING OF THE PLANNING, ACQUISITION, ESTABLISHMENT, DEVELOPMENT, CONSTRUCTION, RENOVATION, MAINTENANCE AND OR OPERATION OF FRONTIER TEXAS, AS WELL AS THE EXPO CENTER OF TAYLOR COUNTY, TOGETHER WITH RELATED INFRASTRUCTURE AND ALL OTHER RELATED IMPROVEMENTS AND CONTAINING THOSE PROVISIONS.

INCIDENT AND RELATED TO THE PURPOSE OF THIS ORDER, WE HAVE A MOTION.

I'LL MAKE THAT MOTION BY MAYOR WILLIAMS IN A SECOND.

I'LL SECOND BY CARL MCALLISTER.

ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE.

AYE. ALL THOSE OPPOSED?

[00:05:02]

LET'S GO TO ITEM NUMBER FOUR.

[4. Discussion Related to the Bond Issuance for the Frontier Texas! Project ]

I WILL CALL UPON GEORGE WILLIFORD OF HILLTOP SECURITIES TO PRESENT THIS ITEM.

GEORGE, IT'S GOOD TO SEE YOU BACK AGAIN.

THANK YOU, COMMISSIONER.

MR. CHAIRMAN FOR THE RECORD, GEORGE WILLIFORD WITH HILLTOP SECURITIES AND I PASSED SOME INFORMATION OUT THAT WE HAD PREPARED. AND FIRST, CONGRATULATIONS ON THE SUCCESSFUL ELECTION.

AND YOU'VE JUST ACTED TO PUT IN PLACE THE CONTINUATION OF THE SALES TAX.

AND SO WHAT I'D LIKE TO REVIEW WITH YOU IS KIND OF THE MEANS AND STRUCTURE AND SO ON WITH RESPECT TO ACTUAL ISSUANCE OF BONDS AND FINANCING OF THE FRONTIER TEXAS IMPROVEMENTS AND SO ON.

FIRST IF YOU'LL RECALL, THE LAST PAYMENT OF THE OUTSTANDING BONDS DOESN'T OCCUR UNTIL JUNE 15TH.

AND SO WHAT THAT MEANS IS THE CURRENT TAX DOESN'T EXPIRE UNTIL THAT DATE.

AND SO THERE'S NO ACTION OR THE IMPOSITION OF THIS TAX CAN'T BEGIN UNTIL AFTER THAT.

AND I THINK IN WHAT I PASSED OUT, I PUT JUNE 16TH WHEN I LOOKED AT THE CALENDAR THAT'S ACTUALLY A SUNDAY.

SO LET ME JUST WALK THROUGH THIS.

IF I COULD I MENTIONED THAT THE FINAL PAYMENT OR MATURITY WAS JUNE 15TH.

AND AGAIN, THIS IS THE 2% THAT'S IMPOSED ON ALL ROOMS WITHIN ABILENE AND TAYLOR COUNTY HOTEL ROOMS. AND SO, AS I SAID WITH JUNE 16TH BEING A SUNDAY, THEN ANY TIME 17TH OR THAT WEEK OF WOULD BE APPROPRIATE FOR THE BOARD TO TAKE ACTION TO AUTHORIZE ISSUANCE AND SAME TIME AND WE HOPE EVERYTHING CAN BE ARRANGED, APPROVED.

THE ACTUAL SALE OF A BOND ISSUE.

NOW, AS IT MENTIONS, THE APPROVAL ALSO HAS TO BE GIVEN OR RATIFIED BY BOTH THE CITY COUNCIL AND THE COUNTY COMMISSIONERS COURT.

AND LOOKING AT THE SCHEDULE AND WORKING WITH SAM GILL, WITH MCCALL PARKHURST ON THIS AND SO ON.

IT JUST SO HAPPENS THAT AFTER THAT WEEK OF JUNE 17TH, THE COMMISSIONERS COURT MEETS ON JUNE 25TH.

IF I'M NOT MISTAKEN, THE CITY COUNCIL HAS A REGULAR MEETING ON THURSDAY, JUNE 27TH.

SO HOPEFULLY THAT'LL MEAN THAT EVERYTHING CAN KIND OF FLOW IN CLOSE ORDER AND SO ON.

AND AS EVERY ISSUE BY THE CITY OR THE COUNTY SAM WOULD THEN PREPARE A TRANSCRIPT.

HE'LL DO THAT REALLY AFTER THIS BOARD'S ACTED AND SUBMIT THAT TO THE ATTORNEY GENERAL'S OFFICE FOR THEM TO CONSIDER AND REVIEW FOR APPROVAL AND RELEASE TO CLOSE. AND I CONFIRMED WITH HIM THE OTHER DAY THAT HE CAN INITIATE THAT BASED ON THE BOARD ACTION AND THEN SUPPLEMENT WITH THE APPROVALS BY THE COMMISSIONERS COURT AND THE CITY COUNCIL WITHIN THAT TIME FRAME.

AND THE REASON I'M MENTIONING ALL THAT IS WHAT MIKE HAS INDICATED IS IT'S IMPORTANT TO FRONTIER TEXAS TO HAVE ACCESS TO A CONSTRUCTION PROCEEDS BY EARLY AUGUST.

AND WHAT THIS SHOULD MEAN IS THAT ISSUANCE COULD HOPEFULLY OCCUR SUCH THAT CLOSING COULD BE LATE JULY OR AT WORST THAT EARLY AUGUST TIME FRAME AND SO ON.

WHAT I PUT ON PAGE TWO IS REALLY JUST SOME HISTORICAL INFORMATION.

AND WE'LL REVAMP THIS TO PRESENT TO PROSPECTIVE PURCHASERS OF A BOND ISSUE AND SO ON.

BUT IT SHOWS THE HISTORICAL OVER THE LAST TEN YEARS COLLECTIONS FROM THE 2% HOTEL MOTEL TAX ALONG WITH MINOR AMOUNT OF INTEREST, EARNINGS ON THOSE DOLLARS AND SO ON.

AND THEN WE ALSO, AFTER DEBT SERVICE HAVE SHOWN THE AND MIKE PROVIDED ALL THIS ADMINISTRATIVE FEES TO THE CITY AS WELL AS THE OPERATING COST MONIES THAT FLOWED INTO FRONTIER TEXAS AND THE EXPO CENTER AND SO ON.

SO THIS WILL BE IMPORTANT, AS WE'LL EXPLAIN HERE IN JUST A MOMENT, TO SHOW THAT THE COLLECTIONS, WITH THE DEBT SERVICE HAVING LITERALLY A FIRST CLAIM FAR SURPASSED THE ANTICIPATED DEBT SERVICE FOR WHAT'S BEING FINANCED ON THE NEXT PAGE.

THAT REALLY GOES ALONG WITH WHAT I JUST SAID.

WE'VE RUN SCHEDULES, AND THE SCHEDULE IS BEHIND THIS.

WHAT WE'D BEEN INSTRUCTED IS THAT THE NEEDED PROCEEDS AMOUNT WAS $2 MILLION.

[00:10:03]

SO WHAT WE'VE STRUCK.

SHIRT IT AS JUST LIKE THE OH FOUR ISSUE IS A 20 YEAR REPAYMENT.

AND WHAT THAT MEANS IS THAT THE TAX CAN BE COLLECTED FOR THAT WHOLE PERIOD OF TIME, BECAUSE I ALSO CONFIRMED WITH MR. GILL THAT THE TAX EXPIRES IN CONJUNCTION WITH FINAL PAYMENT OF THE BONDS, JUST LIKE THE CURRENT TAX DOES.

SO THAT'S ONE REASON TO ASIDE FROM THE AVAILABLE CASH FLOW AFTER DEBT SERVICE, TO HAVE THE PAYMENT TERM LONGER THAN SHORTER, BECAUSE IT MEANS THAT YOU'RE ABLE TO COLLECT THAT TAX TOWARD THAT FOR A LONGER PERIOD OF TIME AND SO ON.

BUT YOU'LL SEE, IN WHAT WE PREPARED, WE JUST ASSUMED TWO INTEREST RATE LEVELS, 4.5% OR 5% ON 20 YEAR FINANCING.

AND YOU'LL SEE AT THE TOP OF PAGE THREE THAT THE DEBT SERVICE WOULD BE, ON AVERAGE, AROUND 160,000, A LITTLE UNDER AT 4.5%, OR 166,000 AT 5%.

AND THEN THOSE NUMBERS I SHOWED YOU ON THE PRIOR PAGE, I AVERAGED THOSE COLLECTIONS OVER THE LAST TEN YEARS, THE LAST FIVE YEARS.

AND PROBABLY WHAT'S MORE RELEVANT THE LAST THREE YEARS.

AND YOU CAN SEE THAT OVER THE LAST THREE YEARS, THE ANNUAL COLLECTIONS HAVE BEEN AROUND 1,000,002.

SO THAT STILL WOULD LEAVE, YOU KNOW, WELL OVER $1 MILLION OF EXCESS DOLLARS THAT COULD BE USED OTHERWISE AFTER THE DEBT SERVICE. HOPEFULLY SO.

AND THEN LIKE I SAID, THE DETAIL OF THAT IS ON THE FOLLOWING PAGE.

NOW, AS FAR AS THE PROCESS YOU KNOW, HOTEL MOTEL TAX ISSUE, PARTICULARLY ONE OF THIS SIZE AND SO ON, IT'S REALLY NOT CONDUCIVE TO TRY TO TAKE THAT OUT TO THE PUBLIC MARKET.

IT'S JUST A LOT WEAKER CREDIT THAN ANOTHER ISSUE BY THE CITY OR THE COUNTY AND SO ON.

PLUS THE SIZE, THE RELATIVE COST WOULD BE, YOU KNOW, DISPROPORTIONATE TO DO THAT.

SO WHAT WE'D HOPE TO DO IS SIMILAR TO WHAT WAS DONE IN 2004 FOR THAT ISSUE WE COULD APPROACH ALL THE LOCAL BANKS OR KNOWING WHAT WAS PROBABLY MOST LIKELY GO BACK TO FIRST FINANCIAL, BECAUSE BEFORE THEIR NAME CHANGED, THEY HAD PURCHASED THE ENTIRE ISSUE IN ZERO FOUR AS FIRST NATIONAL AND SEE IF THEY WOULD DO THAT.

THE ONLY KIND OF PAUSE I HAVE IS SUBSEQUENT BANK REGULATIONS, SINCE THAT PERIOD OF TIME HAVE MADE IT SO THAT BANKS REALLY HAVE TO TREAT LONGER DEBT OBLIGATIONS DIFFERENTLY FROM A REGULATORY STANDPOINT.

AND SO WHAT WE FOUND IS IF WE'RE JUST TRYING TO PLACE, YOU KNOW, SOLICITING BIDS FROM VARIOUS PURCHASERS BANKS THAT THAT DO PURCHASE DIRECT PLACEMENTS, YOU KNOW, THEY HAVE KIND OF A TEN OR A LITTLE OVER A TEN YEAR THRESHOLD.

SO WE WE WOULD REALLY NEED TO HOPE THAT IN THIS CASE, IF FIRST FINANCIALS WHO WE APPROACHED, THAT THEY WOULD BE WILLING, GIVEN THE SIZE, THE COMMUNITY ASSISTANCE ASPECT AND EVERYTHING, TO CONSIDER A FULL 20 YEAR REPAYMENT ISSUE.

BUT THAT WOULD BE THE PLAN IS IF THE BOARD CONCURS TODAY THAT WE'D START THAT DISCUSSION AND PROCESS SUCH THAT, LIKE I SAID, HOPEFULLY ALL OF THAT COULD BE ARRANGED.

AND WHEN THE BOARD MET AFTER THAT JUNE 17TH DATE WHAT YOU'D HAVE IS ACTUAL SALE TERMS SO THAT YOU COULD APPROVE THE SALE AND AUTHORIZE ISSUANCE BASED ON THAT DEFINED STRUCTURE.

BUT WITH THAT, I'D BE GLAD TO ANSWER QUESTIONS OR TAKE DIRECTION OTHERWISE FROM THE BOARD.

THERE'S NO ACTION REQUIRED BY THIS ITEM.

IT'S SIMPLY FOR DISCUSSION AND INFORMATION.

ARE THERE ANY QUESTIONS FOR MR. WOLFE? I DID HAVE ONE QUESTION.

IT'S KIND OF A LONG WINDED. SO, YOU KNOW, BACK IN THE 90S, IN 2000, THERE'S SOMETHING CALLED SOCIAL PROMOTION WHERE IF A STUDENT HAD A GOOD ATTITUDE AND TURNED IN ALL THEIR WORK, THEY WOULD BE PASSED IN CLASSES.

AND I THINK I WAS A BENEFICIARY OF THAT IN MATH FROM SIXTH GRADE ON.

SO POINT TO STORY.

STILL NOT GOOD IN MATH. AND SO SOMETHING I JUST WANTED TO VERIFY.

THE THE CONSTRUCTION PROJECT AND FUNDING IT GIVES FRONTIER TEXAS FUNDING FOR THEIR SHOVEL READY PROJECT AND THEN ALSO KEEPS EXPO CENTER AND FRONTIER TEXAS AT 50, 50 OR EQUAL FUNDING.

[00:15:02]

LET ME GO BACK TO THAT, IF YOU DON'T MIND.

TWO AND THREE PROBABLY LOOK AT PAGE THREE IS IF WE CAN DO SUCH THAT THE DEBT SERVICE WOULD BE IN THAT 160,000 OR SO RANGE GIVEN THE MOST RECENT HISTORICAL COLLECTIONS OF MILLION TWO, WHAT THAT WOULD MEAN IS, YES, THERE'S OVER $1 MILLION AVAILABLE BEYOND DEBT SERVICE THAT WOULD BE SPLIT.

HOWEVER THE BOARD DETERMINED BETWEEN THE PARTICIPATING ENTITIES.

OKAY. THANK YOU. ALL RIGHT, NOW, THE DISTRIBUTION IS A 50% FRONTIER, TEXAS, 50% FOR THE TAYLOR COUNTY EXPOSITION CENTER.

THANK YOU. ANY FURTHER QUESTIONS? WELL, LET'S MOVE TO ITEM NUMBER FIVE.

[5. Discussion and Approval of the Revised FY 2023-24 Budgets. ]

DISCUSSION AND APPROVAL OF THE REVISED FY 2324 BUDGETS.

AND MAY I CALL UPON MIKE RAINES TO PRESENT THIS ITEM? MIKE RAINES, FINANCE DIRECTOR FOR THE CITY.

IN YOUR PACKET, YOU'VE GOT THE BUDGETS THAT WERE ACTUALLY APPROVED PRIOR TO THE ELECTION IN NOVEMBER.

AND UNDER THOSE BUDGET ASSUMPTIONS, WE PROJECTED THE BUDGET JUST THROUGH JUNE 15TH BECAUSE WE DIDN'T KNOW WHAT WAS GOING TO HAPPEN IN THE ELECTION.

SINCE IT'S PASSED, WE'VE NOW PROJECTED THAT OUT TO SEPTEMBER 30TH, THE FISCAL YEAR END.

AND THAT'S WHAT YOU'LL SEE UNDER THE REVISED 20 2324 COLUMN.

SO YOU'LL SEE IN OUR PACKET WE'VE GOT AN ACTUAL THAT ACTUALLY FOR 2023 THE APPROVED THAT YOU'VE PREVIOUSLY APPROVED.

AND THEN WHAT WE'VE GOT REVISED.

SO WE'VE INCREASED THE REVENUES ALSO INCREASED THE DISTRIBUTIONS.

SO SAME THING ON INTEREST AND SINKING THAT ONE.

WE ARE PROJECTING THAT TO ZERO OUT AT THE END OF THIS FISCAL YEAR.

IF WE ISSUE ADDITIONAL DEBT BEFORE THEN, WE'D HAVE TO COME BACK WITH ADDITIONAL BUDGET FOR THE DEBT SERVICE FOR THAT.

BUT TYPICALLY THERE WOULDN'T BE ANY DEBT SERVICE FOR THE FIRST FISCAL YEAR, IF THAT'S CORRECT.

GEORGE ESSER IN MOST CASES.

AND THAT'S. YEAH.

SO SO WE MAY NOT HAVE TO ADJUST THAT AT ALL FOR FISCAL YEAR 24.

BUT WE WOULD KNOW THAT ONCE WE ISSUED THE DEBT.

SO THAT WOULD BE THE ONLY THING THAT MIGHT CHANGE GOING FORWARD.

SO. BE HAPPY TO ANSWER ANY QUESTIONS AND TO GO TO THE JUDGES POINT AND COMMISSIONER STADLER'S POINT. SO IF YOU GET ON TO EXPENDITURES ON PAGE UNKNOWN PAGE HERE.

YEAH. YOU CAN SEE FRONTIER TEXAS AND EXPO AT 457, BUT BUMPING UP TO 612, 9900, 612,900, MEANING THAT THAT PARODY. SO YEAH, THAT WOULD STAY AT 50% JUST LIKE IT IS TODAY.

UNTIL THE BOARD CHANGES, IF THE BOARD WANTS TO, THEY'LL DIRECT WHATEVER ALLOCATION THAT NEEDS TO BE.

SO THANK YOU.

ANY FURTHER QUESTIONS FOR MR..

THEN I WOULD ASK FOR A MOTION AND A SECOND TO APPROVE THE REVISED FY 2324 BUDGETS.

SO MOVED. SECOND.

SECOND. WE HAVE A MOTION BY MISS HALL AND A SECOND BY MAYOR WILLIAMS. ALL IN FAVOR, SAY AYE.

AYE. ANY OPPOSITION? THEN THE MOTION WILL PASS, AND WE WILL GET READY FOR THE BEST THING THAT WE LOOK AT.

AND THAT'S THE CONCLUSION OF OUR AGENDA TODAY.

IT IS NOW 1:49 P.M., AND I WILL ENTERTAIN A MOTION TO ADJOURN THIS MEETING OF THE ABILENE-TAYLOR COUNTY EVENTS VENUE DISTRICT.

SO MOVED. I HAVE A MOTION AND A SECOND.

MR. WILLIAMS, ALL IN FAVOR, SAY AYE.

AND THIS DISTRICT BOARD IS ADJOURNED.

THANK YOU, EVERYONE, FOR TAKING THE TIME TO COME IN.

AND WE APPRECIATE THE BOARD, YOUR SERVICE, AND WELCOME TO THE FAMILY.

THANK YOU SO MUCH. VERY GOOD.

* This transcript was compiled from uncorrected Closed Captioning.