07-17-2009 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, July 17, 2009—6:30 A.M.
Inwood National Bank— Conference Room
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200 South Highway 78 —Wylie, Texas
CALL TO ORDER
Announce the presence of a Quorum
President Fuller called the meeting to order at 6:30 a.m. Board Members present were: John
Yeager, Mitch Herzog, and Chris Seely.
WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.
Ex-Officio Board Members Mindy Manson and Eric Hogue were present.
CITIZEN PARTICIPATION
There being no citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the July 9, 2009 Minutes of the WEDC
Board of Directors Meeting,
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve the July 9, 2009 Minutes of the WEDC Board of Directors Meeting.
The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon approval of the June 2009 WEDC Treasurer's
Report.
The WEDC Board requested that staff inform them as to the date and time Council would be
presented with the FY 2009—2010 WEDC budget.
MOTION: A motion was made by Chris Seely and seconded by John Yeager to
approve the June 2009 WEDC Treasurer's Report. The WEDC Board of
Directors voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon issues surrounding a Performance Agreement
between the WEDC and BBV Texas Development, LLC.
Staff presented the Performance Agreement between the WEDC and BBV Texas Development,
LLC, entered into on June 27, 2007 for the purpose of providing cost reimbursement for
infrastructure improvements including water, sewer, drainage and roadway improvements in an
WEDC—Minutes
July 17, 2009
Paget of 4
amount not to exceed $96,000. The WEDC funded the first reimbursement of$32,000 in July
2008.
In order for BBV to qualify for the second reimbursement incentive of$ 2,000, a$7 million real
property valuation is called for, employment of eighty full and part time employees at the Wylie
location must be met, and the WEDC must confirm that all ad valorem taxes have been paid.
While the employment requirement has been met at 129 full and part time personnel and
property taxes are current, the certified valuation from the Collin County Central Appraisal
District came in at$5,914,760.
The Agreement contemplated potential performance measure shortfalls and included language
which would allow consideration of a reduced incentive payment. Please note that the
Agreement states that "in the event that the Company does not meet or exceed the Performance
Requirement as specified in Section II, the WEDC Reimbursement Incentive will be either
voided or reduced proportionately in advance of payment at the sole discretion of the WEDC."
The current real property valuation is 84.5% of the established benchmark.
While not a performance indicator within this Agreement, staff presented that the annual payroll
at Garnet Hill is $3.3 million. Additionally, and again not a performance indicator within the
Agreement, personal property at Garnet Hill is valued at $211,508.
Staff recommended an incentive payment of not less than $27,040 (84.5% of $32,000). The
recommendation was based upon the following conclusions by staff: a) the WEDC Board of
Directors purposefully and with foresight placed language within the Agreement which allows
for the deviation at the sole discretion of the Board; b) employment figures are 61% in excess of
the minimum criteria; and c) Garnet Hill's management company has been an active member of
the Chamber of Commerce and Wylie community.
Board member Herzog voiced concerns that the WEDC establishes performance measures and is
not steadfast in its requirements that they be met. Board member Herzog continued that any
performance measure tied to valuation is somewhat out of the control of the land owner in that
the Appraisal District establishes the valuation.
MOTION:: A motion was made by John Yeager and seconded by Chris Seely to make
an incentive payment to BBV Texas Development LLC in the amount of
$27,040. The WEDC Board voted 4— FOR and 0 —AGAINST in favor of
the motion.
ITEM NO. 4 — Consider and act upon election of officers to the WEDC Board of
Directors.
Each July following the selection of WEDC Board members by the Wylie City Council, the
WEDC elects officers for the upcoming year.
WEDC—Minutes
July 17, 2009
Page 3 of 4
On November 21, 2008, the WEDC Board of Directors elected the current officers:
Marvin Fuller President
John Yeager ...Vice President
Mitch Herzog .S eeretary
Chris Seely Treasurer
Staff recommended that the WEDC Board of Directors elect officers for the upcoming year.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
nominate Marvin Fuller for WEDC President, John Yeager Vice President,
Mitch Herzog Secretary, and Chris Seely Treasurer. The WEDC Board of
Directors voted 4—FOR and 0—AGAINST in favor of the motion.
EXECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 7:11 a.m.
I. Consider issues surrounding the First Amendment to Performance Agreement between the
WEDC and Woodbridge Crossing, L.P. as authorized in Section 551.087 (economic
development negotiations) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act).
II. Consider issues surrounding the potential offering of incentives for project Re-tool as
authorized in Section 551.087 (economic development negotiations) ofthe Local
Government Code,Vernon's Texas Code Annotated (Open Meetings Act).
III. Consider issue surrounding Personnel Matters (evaluation of the Executive Director and
Administrative Assistant) as authorized in Section 551.074 of the Local Government Code,
Vernon's Texas Code Annotated (Open Meetings Act).
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:15 a.m.
I. After staff presented the Amended and Restated Performance Agreement between the
WEDC and Woodbridge Crossing, the Board requested that staff provide a plan to monitor the
Woodbridge reimbursements. The Board also requested that a monthly report be provided to the
Board as part of the monthly Treasurer's Report.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the Amended and Restated Performance Agreement between
WEDC and Woodbridge Crossing, L.P. The WEDC Board of Directors
voted 4--FOR and 0—AGAINST in favor of the motion.
WIC—Minutes
July 17, 2009
Page 4 of
II. Staff presented the Performance Agreement between the WEDC and Sanden International
(U.S.A), Inc. to provide assistance to make real and personal property improvements to its
existing facility. The Agreement calls for up to $300,000 in assistance over a two year period
should Sanden meet the requirements called for within the Agreement. For the Year 1 incentive
of$200,000, Sanden must provide proof ofexpenditures of$5.79 million to re-tool an existing
compressor line, confirm a minimum of 275 line personnel, confirm payment of all prior year
property taxes, and documentation supporting a minimum $58 million in real and personal
property value at their Wylie plant. For the Year 2 incentive payment of$100,000, Sanden must
provide all above documentation,but only show expenditures of$2.73 million.
The WEDC can recapture all incentives should Sanden relocate any portion of its existing
operations outside of Wylie prior to 4-1-12. Additionally within the recapture provisions,
Sanden must produce a minimum of 340,000 compressor units prior to 4-1-12.
MOTION: A motion was made by John Yeager and seconded by Chris Seely to a
authorize President Fuller to execute a Performance Agreement between the
WEDC and Sanden International (U.S.A.), Inc. not to exceed $300,000.00.
The WEDC Board of Directors voted 4— FOR and 0 —AGAINST in favor
of the motion.
III. Following a performance appraisal within Executive Session, the consensus of WEDC
Board was to leave the Executive Director's salary at its current level.
MOTION: A motion was made by Chris Seely and seconded by John Yeager to make
no changes to the Executive Director's salary. The WEDC Board of
Directors voted 4—FOR and 0—AGAINST in favor of the motion.
ADJOURNMENT —-
With no further business, President Marvin Fuller adjourned the WEDC C Board meeting at 8:19
a.m.
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director