11-20-2009 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, November 20, 2009 — 6:30 A.,
Inwood National ank— Conference Room
200 South ighway 78 — Wylie, Texas
CA L 0 ORDER
Announce the presence of a Quorum
Vice President Yeager called the meeting to order at 6:30 a.m. Roard Members present were:
Mitch Herzog, and Chris Seely.
WE C staff present was Executive ',Director Sam Satterwhite and Admi istrative Assist t
Gerry Harris.
Ex-Officio Board Member Mindy Manson and City Engineer Chris olsted were present.
CITIZEN PARTICIPATION
There being no citizen participation, Vice President Yeager proceeded to Action Items,
ACTION ITEMS
ITEM NO. 1 — Consider ad act upon approval of the October 30, 2009 Minutes of the
WEDC L*oard of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to
approve the October 30, 2009 Minutes of the WEDC Board of Directors
Meeting. The WEDC Board voted 3 — FOR and 0 — AGAINST in favor of
the otion.
ITEM NO. 2 — Consider and act po H approval of the October 2009 Treasurer's Report.
MOTION: A motion was made by Chris Seely and seconded by Mitch Herzog to
approve the September Treasurer's Report. The WEDC Board voted 3 —
FOR and 0 — AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon issues surrounding City of Wylie thoroughfare
impct fees.
As a review, staff stated that he believes that there is a high level of confidence that the fees are
justified to offset the cost of providing infrastructure and are being calculated correctly. Staff
further stated that based upon previous discussions by the Board members, the only issue that
could possibly be addressed is the difference betwee , fees charged for the east zone ad those
charged for the west zone (the east zone is 40% higher than the west zone). So as not to assuF
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November 20, 2009
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to much, staff provided all possible options which could be recommended to the Council and
the repercussions of each.
1. No change. While this is one of the top two options in staff s opinion, I do believe there
is the local perception that thoroughfare fees are too high. Also, there is the potential that
we are discouraging new b siness development (specifically on the east side) prior to the
prospect even getting to the point of negotiating with the City for incentives. I believe to
assume that if this is the case one must consider the relatively high tax rate in place
comilined with the fees.
2. No Fees. Staff believes this is not a realistic option. if no thoroughfare impact fees were
in place, new development would share an equal financial burden with the existing
taxpayer for the increased demand placed upon the infrastructure created by the new
development. That financial burden would specifically be increased property taxes.
3. East and West Zones Charged Identical Unit costs. The only issue staff has with this
recomi endation is that the fees charged within the west zone would be proportio ately
higher than the east zone. If you will recall from previous presentations, both zones have
approximately the same amount of cost attributed to growth per the Capital Improvement
Plan currently ado oted by the City Council. However, the east side has much less
opportunity for new growth (a smaller pool of new development) thus creating a higher
fee per new development unit to recoup the cost attributed to growth. The response to
any developer raising that point (which is unlikely anyway) is that we want to encourage
development within the east zone, thus charging a lower percentage fee. Should this
option be consi ered, the .oard/Council would have to anticipate less fees within the east
zone to fund future projects i& d rely on the use of General Fund monies or tax rate
increases.
4. Lower Each Zone's Unit Cost an Equal Percentage. Staff does not believe this is a
viable option because there is no real or perceived concern with Thoroughfare Fees
within the west zone. New b si ess development is taking place, and will continue to
take place predominately within the west zone because of the infrastructure which has
been put in place or will be in place within the next two years.
Staffs recommendation was •for the •oard to evaluate the above options and make a
recommendation to the City Council, even if the WEDC recomr endation is no change. If there
is a recommended change by the WEDC goard and the Council lirects City staff to address the
WEDC recommendation, a presentation will most likely be made to the Impact Fee Advisory
Cori mittee which in turn will make a recommendation to the City Council during a work
session. Should the Council decide to proceed; a puelic hearing will take place on the issue
resulting in a change to the existing Ordinance assuming, an affirmative vote by Council.
Staff commented that there currently is relief (in the form of incentives) available to any
developer bringing in a qualifying project to the City — east or west zone. If there is unanimous
agreement with that position, the only recommendation is no change. A no change
recoil mendation is 100% equitable. ' owever, if a developer targets the east side and determines
that their financial model will not work, and fu ther evaluates the fact that thoro ghfare impact
fees in Wylie are higher than the communities we are competing with, we may not get the
opportunity to address their concern. At that point equity between the zones has no bearing and
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November 20, 2009
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a perception of'the cost of doing business in Wylie is too high' is the determining factor. der
the second scenario a recommendation should be having identical unit cost within the east and
west zones.
Staff recommended that the WE IC Board of Erectors make a recommendation to the Wylie
City Council to reduce Thoroughfare Impact Fees charged in the east zone to equal that of the
fee charged within the west zone.
With only three mem ers in attendance o such a critical issue, Vice President Yeager requested
a motion to table the issue until the December meeting.
MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to table
the issues surrounding City of Wylie thoroughfare impact fees until the
Deceit ,ber meeting. The WEDC oard voted 3 — FOR and 0 — AGAINST
in favor of the motion.
I EM NO. 4 — Consider issues surrounding the 2009 Annual Report.
Staff reported to the Board that a draft will be presented to the Board at the 12-18-09 meeting
with the final version approved at the 1-15-10 meeting. The fi al draft will be presented to the
Wylie City Council at the 1-26-10 Council Meeting thus complying with the WEDC y-laws.
Staff had no recommendation at this time.
ITEM NO. 5 — Staff Report: review issues surroundi hg the lease of WEHI C facilities,
Sander International, the 2009 IEDC A nual Conference, refinancing WEDC debt, Shafer
Plaza, regional housing starts, and staff vacation schedule.
Lease of WEDC Facilities: The Ferrell property has been leased. The contract calls for $800
monthly with no outside storage. The contract also calls for the tenant to mow and maintain the
adjacent one acre fronting F.M. 544.
Sanden International: With a request form the Ioard, staff provided property valuations for
Sanden. Sanden currently has a real property value of$15,846,442 and a personal property value
of S50,222,150. This combined value of$60,068,592 generates $594,000 annually in property
tax revenue for the City of Wylie and represents Wo of the total appraised value of$2.2 billion
for the City.
2009 1EDC con fei ence: Assistant City Manager Butters had intended on presenting issues of
interest from the Conference. President Fuller requested the Mr. Butters attend the December
meeting so that he could be available for the presentation.
Refinancing WEDC Debt Staff is still discussing this issue with the Attorney General and has
nothing new to report at this time.
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November 20, 2009
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Shafer Plaza: Based upon a conversation held between Board Member Seely and the
Applebee's • cal Estate Manager, the Shafer site is too small. However, Mr. Seely did find out
that Applebee's preferred a Highway 78 bc itioc to F.M. 544. Staff ill be presenti g alternate
locations at the Board meeting.
Regional Housing Starts: While down from 2008, IvIvrylie still issued 15 single family housing
permits for the month of October. With Wylie projected to permit 225 homes, the region is
projected to permit approximately 500 homes.
Staff Vacation: The Executive Director reported that he will be out of town the week of
November 23r . Ms. Hams i1l be in the office November 23r1 — 2.51 with the office closed on
the 26th and 27ffi for Thanksgiving.
EXECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 6:56 a.m.
I. Consider issues surrounding the purchase of property located near the intersection of
"egency Drive and Steel Road as authorized i Section 551.072 (real property) of the
Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act).
II. Consider issues surro,,nding the sale of WEDC property iocatei near the intersection of
State Highway 78 and F.M. 544 as authorized in Section 551.072 (real property) of the
Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act).
III. Consider issues surrounding Project Phoenix as authorized in Section 551.087 (Economic
Development Negotiations) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
RECONV NE INTO OPEN MEETING
The \ATEDC Board of Directors reconvened into open session at 7:20 a.m. No action was taken
as a result of discussion held in Executive Session.
ADJOURNMENT
With no further business, Vice President Yeager adjourned the WEDC Board meeting, at 7:20
a.m.
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November 20, 2009
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John Year, Vice President
ATTEST:
Samuel D.R. Satterlvhite
Executive Director