09-18-2009 (WEDC) Minutes Min tes
Wylie Economic I evelopment Corporation
oard of Directors Meeting
Friday, September 18, 2009— 6:30 A.,
Inwood ational Bank— Conference Room
200 South Hi. way 78 — Wylie, Texas
CALL TO ORDER
Announce the presencçqQiorum
President Fuller called the meeting to order at 6:30 a.m. .oard Members oresent were: John
Yeager, itch Herzog, and Todd Wintters.
WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris,
Ex-Officio Board Members Mini Manson and Eric Hogue were present.
CITIZEN PARTICIPATIOH
There being no citizen participation, Preside t Fr Her proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the Septer her 11, 2009 Min' les of the
WEDC l oard of 1 irectors Meeting.
"OTION: A motion was made by Mitch erzog and seconded by Todd Wintters to
approve the Septe ber 11, 2009 Mi rrutes of the WES C Board of Directors
'eeting. The WE IC Board voted 4 — FOR and 0 — AGAL ST in favor of
the motia
ITEM NO. 2 —Co rrsider and act uporr approval of the August 2009 Treasurer's eport.
NIOTI•N.: A motion was rrrade by John Yeager and seconded by 'itch erzog to
approve the Aurrrst Treasurer's Report. The WEDC rIoard voted 4 — FOR
and 0 — AGAINST in favor of the motion.
ITEM 'O. 3 — Consider an. act upon issues surrounding an Economic HIevelopment
Agreement between the WEDC nd Sawtech Corporation.
To review, staff reported that upon corrrrpieting construction of their 7,500 square foot facility
contemplated in the Perforrnarr rCe Agreement between the WEDC and Sawtech, Sawtech
received their Certificate of Occupancy on 2/14/07. As per section i(c) 1 & 2, Sawtech must
aintain a real property vale of $525,000 higher than their Benchmark Value of $85,319
($610,3 19) and a minimum personal pros erty value of$500,000.
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September 18, 2009
Page 2 of 4
As staff previously resorted to the oard, Sawtech was contacted in Au: st 2009, informing
their CPA and the owners, that their minimum personal ',roper-Ey valuation were not in
compliance with the Performance Agreement. C rreH tly Sawtechs' real property is appraised at
$616,771 with personal property at $449,420. As per the above minimum benchmarks, Sawtech
is in compliance with their real property requirement but has not met the minima valuation for
personal property. Sawtech was informed of this default a d did not pursue an adjustment to the
personal prope y value via the Collin Ce tral Appraisal •istrict (CCAD). Sawtech did however
advise staff to request of the II oard a formal response as to the sta s of Installment Three based
upon the existing default.
Based upon the Sectio I c (2) within the A 4-ee ent, compliance with the persa al property
minimu is determined by the CCA• within its "final Property Tax Statement sent by the tax
assessor for 2009." Section 4 states that "fail Fre to meet the criteria necessary to receive any
installment payment of the Eco omic Assistant Amount" will constitute a default resulting in no
further installments being provi•ed to Sawtech.
Sawtech was informed that it was staffs opinia that the CCA• would increase the personal
property value by S50,580 if requested to do so. Staff pointed out that the increase in valuation
would result i . Sawtech property taxes increasing by ±$1,500. Sawtech responded that it was
their desire to await the Board's decision.
Staff commented that the Agreement does not address two key points. First of all, a default is
final and there is no language addressing a proportionate payment as with other a. eements
entered into by the WEDC. Secondly, upon the existence of a default, there is no defined cure
period. Should the '''oard choose to not fund Installment Three, Sawtech will be notified in
writing that a default exists per the terms of the Agreement. Staff recommended that the Board
formally notify Sawtech that a Defa It exists and allow a cure period of thirty (30) days. Staff
also pointed out that while not included •within the A..91fi eement, the '..oard could choose to
prop° ionately reduce Sawtech's payment or fu d 100% of the Installment regardless of the
default.
While Board President Fuller mentio ed that the Agreement could possible be amended to
extend for another year, Board members Mitch Herzog a d John Yeager preferred that Sawtec
be allowed to cure the default within 30 days. The Board advised staff that there would be no
exte sion of the thirty (30) day cure period.
MOTION: A motion w s iade by Mitch Herzog and seconded by John Ye ger
declari g Sawtech in defa It of the Economic Development Agreement and
providing a thirty (30) day cure pe *od. The WEDC '.oard voted 4 — FOR
and 0 — AGAINST in favor of the motion,
ITEM NO. 4 — Consider and act upon issues surrou sing a Performance Agreement
between the W' DC and ' W. Snider and Associates.
On August 28, 2009, the WEDC ..oard uaiiousiy authorized staff to ame d the Performance
Agree lent with Snider 8z, Associates. The a aendment was to reflect a $40,000 payment for
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Septem er 18, 2009
Page 3 of 4
Phase I (with the release of carking re uireme 1:s) and an $85,000 payment for Phase H. No
changes were proposed for P ases III and IV.
As per the existing Agreeme t, Phase ii is to be funded only after the sale of all units within
Phase II. Based upon the original intent of the $85,000 payment being to assist with the parking
frastructure, staff believes that $45,000 of the amen ded Phase II payment ($85,000) should be
funded following the completion of the shell within Phase II and parking infrastructure.
Following the sale of all units within Phase II, the originally contemplated $40,000 could be
nded, This funding scenario was o tside the amendment contemplated and voted on during the
August 28th meeting.
Staff recommended t at the WEDC oard annennd the Performance Agreement between the
WEDC and T.W. Snider and Associates to reflect a $40,000 Phase I payment, a $45,000 Phase II
(a) payment (upon shell and parking infrastructure completion) and a $40,000 Phase II (b)
payment (upon sale of all units with Phase II).
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to
amend the Performance Agreement between the WEDC a nd T.W. Snider
and Associates to reflect a $40,000 Phase I payment, a $45,000 Phase II (a)
payment, aril a $40,000 Phase II (b) payment. The WEDC oard voted 4 —
FOR and 0 —AGAINST in favor of the motion.
ITEM NO. 5 — Consider and act upon issues surround.'g City of Wylie Thoroughfare
Lnnpact Fees.
Staff requested that the Board disc nss the reason the WEDC is contemplating reducing or
restructuring the fees, if indeed that is the path the WEDC takes. If a recommendation to
Council is being considered to satisfy an individual, then staff cannot support that
recommendation . If the WEDC Board believes that the community is foregoing the opportunity
for new business development (no matter how small) based upon the amount being charged via
thoroughfare impact fees, then a n odification should be discussed. Further, if the WEDC is
comfortable with the fee being reduced to address a perception that there is inequity between
zones, then a recommendation for change should be made.
Staff requested no action on this item.
Board member Todd Wintters suggested that staff complete the thoroughfare impact fee study
and bring the information back to the Board.
IT ' M NO. 6 — Consider and act upon issues surrounding an nn alternate date for the
regularly schedule, October 16, 2009 W IC n oar. Meeting.
Due to a staff conflict on October 16th, the regularly scheduled meeting was requested to be
owed to an alternate date. Staff reconn mended a choice of October 15th, October 27th, October
28 , October 29111, or October 30th.
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September 18, 2009
Page 4 of 4
MOTION: A motion was made by itch Herzog and seconded by Toed NVintters to
change the re larly scheduled October 16, 2009 WEDC Boar. Meeting to
October 30, 2009. The WEDC Board voted 4 — FOR and 0 — AGAINST in
favor of the motion.
EXECUTIVE SESSIO
The WEDC loard of Directors convened into Executive Session at 7:29 a.m.
I. Consider issues surrounding the purchase of property located near the intersection of
Regency Drive and Steel Road as authorized in Section 551.072 (real property) of the
Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act).
CO VENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:34 a.m. No action was taken
as a result of discussion held in Executive Session.
ADJOij ENT
With no further business, 'resident Marvin Fuller al joumed the WEDC Board eeting at 7:34
a.m.
arvin tiller, resident
ATTEST:
Samuel D.R. Satterw ite
Executive Director