10-19-2006 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Thursday, October 19, 2006—6:00 A.M.
Inwood National Bank—Conference Room
200 South Hwy. 78—Wylie,Texas
CALL TO ORDER
Announce the presence of a Quorum.
President Fuller called the meeting to order at 6:00 a.m. Board Members present were:
John Yeager, Mitch Herzog, and Gary Bartow.
Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry
Harris.
Others present were Ex-officio Member/Mayor John Mondy.
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 September 28, 2006 Minutes
of the WEDC Board of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager
to approve the September 28, 2006 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 Issues Surrounding Approval of the
September 2006 WEDC Treasurer's Report.
Mr. Fuller identified several problems with the Treasurer's Report and requested that
they be reconciled before the Treasurer's Report is approved. Items of concern were as
follows: 1) include Perry tract within Inventory Subledger, 2) remove YTD encumbrance
on Furniture and Fixture Account, 3) irregularities on the Regular Department Payment
Report.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager
to table the September 2006 Treasurer's Report. The WEDC Board
voted 4—FOR and 0—AGAINST in favor of the motion.
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October 19,2006
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ITEM NO. 3 — (MOTION TO REMOVE FROM TABLE): Consider and Act Upon
Issues Surrounding WEDC Legal Services.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
remove the consideration of WEDC Legal Services from the table. The
WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion.
At the September 7th and September 28th WEDC Board Meetings, this Action Item was
tabled until which time the entire Board was present. In June, the WEDC began
reviewing several legal firms capable of representing the WEDC. The initial inquiry was
a result of concerns over potential conflicts with respect to Abernathy representing both
the City of Wylie and WEDC. The Board was united that consideration of alternative
counsel has moved beyond preparedness for conflict and determining the best
representation. Formal discussions have revolved around utilizing Mr. Mark Houser and
Mr. Jeffrey Moore of Brown and Hofineister, LLP. Mr. Houser is the attorney for the
City of McKinney and McKinney EDC. Mr. Moore is widely known throughout the
State of Texas as the authority on 4A Economic Development legislation.
After a brief discussion on the issue of WEDC legal representation, Staff recommended
that the WEDC Board of Directors maintain its relationship with Abernathy, Roeder,
Joplin, and Boyd for the provision of legal services.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager
to retain Mr. Mark Houser and Mr. Jeffrey Moore of Brown and
Hofineister to provide legal services for the WEDC. The WEDC
Board voted 2—FOR and 2—AGAINST in favor of the motion.
The Motion failed 2 - FOR and 2—AGAINST for lack of a majority vote.
ITEM NO. 4 — Consider and Act Upon Issues Surrounding the Demolition of
WEDC Owned Property Located at 707 Cooper Drive.
The 4,800 square foot structure located on the 0.491 acre (Perry) tract has been vacant for
an extended period of time. The City of Wylie Building Official believes that it is cost
prohibitive to bring the facility up to code. Some of the issues which would be faced are
masonry facade, concrete parking, electrical, repair of overhead doors, and plumbing.
Staff commented that should the WEDC Board be interested in trying to bring the
building up to code, an engineer should be hired to determine what improvements would
have to take place and an estimated cost of each.
Staff indicated that the FY 2006 — 2007 WEDC Budget has monies available for three
separate demolition projects at $9,150 each. Mr. Herzog directed staff to seek out at least
two bids for the demolition.
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October 19, 2006
Page 3 of 4
Staff reported that the City of Wylie Public Works Department has expressed an interest
in utilizing the building for storage for a period of 8 — 12 months. The Board directed
staff to pursue the use by the City should the City pursue the certificate of occupancy.
Staff recommended that the WEDC Board of Directors authorize staff to enter into a
contract for the demolition of facilities located at 707 Cooper Drive subject to
determination of use by the City.
There was no discussion against the demolition of the facility.
MOTION: A motion was made by John Yeager and seconded by Gary Bartow
to authorize WEDC staff to enter into contract for the demolition of
facilities located at 707 Cooper Drive in an amount not to exceed
$9,150, subject to determination of a temporary use by the City of
Wylie Public Works Department. The WEDC Board voted 3 —FOR
and 1 —AGAINST in favor of the motion.
ITEM NO. 5 — Consider and Act Upon Issues Surrounding the Demolition of
WEDC Property Located at 2804 W. F.M. 544.
Since negotiations with the owner of the adjacent self-storage units has ceased, staff
proposes that the WEDC move forward with demolition of the existing 6,500 square foot
facility located on the 1.089 acre tract. The WEDC has a commitment to remove the
facility from the lot for $9,150 from Intercon Demolition. Being that the WEDC
purchased the site to impact redevelopment of the area; staff believes the 544 frontage
will be aesthetically improved with the demolition of the structure. Furthermore, staff
believes the structure to obviously be unusable in its present state and economically
unfeasible to bring up to code. Mr. Herzog again directed staff to seek out two bids for
the demolition.
Staff recommended that the WEDC Board of Directors authorize staff to enter into
contract in an amount up to $9,150 for the demolition of facilities located at 2804 W.
F.M. 544.
MOTION: A motion was made by Gary Bartow and seconded
by Mitch Herzog to enter in a contract not to exceed $9,150 for the
demolition of located at 2804 W. F.M. 544. The WEDC Board
voted 3 —FOR and 1 AGAINST in favor of the motion.
ITEM NO. 6 — Consider and Act Upon the Purchase of ±3.2 Acres From Best
Circuit Boards, Inc.
Based on direction from the WEDC Board of Directors at the September 28th meeting,
staff met with Brad Jacoby and Brad Peters (BCB Senior Vice President). BCB was very
receptive to the idea of the WEDC purchasing the site for $265,000 with only±$65,000
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October 19, 2006
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down and the balance subject to a note. Staff had hoped to have a final answer from
BCB at this point but at this time BCB has not finalized discussions with their lender and
attorney. Staff indicated that additional information will be delivered as received.
No action was taken on this Item.
ITEM NO. 7 — Consider and Act Upon Issues Surrounding an Incentive Agreement
Between the WEDC and Extruders division of Atrium Companies.
At the September 28, 2006 WEDC Board of Directors Meeting, the Board approved the
reduction in the valuation benchmark from $26,248,935 to $22,948,935 within the
Incentive Agreement between the WEDC and Extruders division of Atrium Companies.
Staff presented a copy of the amended Incentive Agreement for Board review. The
amended benchmark is identified in Section 1 b of the Agreement.
Staff recommended that the WEDC Board of Directors approve the amended Incentive
Agreement between the WEDC and Extruders division of Atrium Companies and
authorize President Marvin Fuller to execute the same.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager
to approve an amended Incentive Agreement between the WEDC
and Extruders division of Atrium Companies, Inc. The WEDC
Board voted 4—FOR and 0—AGAINST in favor of the motion.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 7:15
a.m.
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director