03-18-2011 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, March 18, 2011 —6:30 A.M.
WEDC Offices — Conference Room
250 South Highway 78 — Wylie, Texas
CALL TO ORDER
Announce the presence of a Quorum
President Marvin Fuller called the meeting to order at 6:30 a.m. Board Members present were:
John Yeager, Chris Seely, Mitch Herzog„ and Todd Wintters.
WEDC staff present were Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.
Ex-officio members Eric Hogue and Mindy Manson were present.
Construction Manager Tommy Pulliam attended the meeting and left at 7:00 a.m.
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 March 2, 2011 Minutes of the
WEDC Board of Directors Meeting.
MOTION: A motion was made by Chris Seely and seconded by John Yeager to
approve the March 2, 2011 Minutes of the WEDC Board of Directors
Meeting. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 2 — Consider and act upon approval of the February 2011 WEDC Treasurer's
Report
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the February 2011 WEDC Treasurer's Report. The WEDC Board
voted 5 — FOR and 0 — AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon issues surrounding the construction of a 96,000
industrial facility at 1405 Martinez Lane.
Staff reported that with the foundation being completed on March 23 , the fire lanes were to be
formed and poured by March 29th. Panels will be formed and poured March 22 - 28 with panel
WEDC — Minutes
March 18, 2011
Page 2 of 4
erection to take place April 12 — 15. A minor problem with the structural steel package was
reported in that the heights of the crane support beams over the press are too short. Hill &
Wilkinson estimated the cost to increase the height is S2,500 with staff approving the change
order.
Due to inclement weather on the front end of the project along with other miscellaneous delays,
the completion date of the project has been changed from May 31st to June 30th. Hill &
Wilkinson believes it is possible to finish 2 — 3 weeks early should we continue to have dry
weather.
The WEDC received Application for Payment #1 from Hill & Wilkinson in the amount of
S525,427. American National Bank is confirming that all work is complete and will process the
payment request by March 2.2nd It was suggested by the Board to utilize prepaid rent from
Ascend to fund a portion of the draw request in order to reduce interim interest.
Mr. Pulliam, WEDC Construction Manager, reported that the job was going well according to
the new schedule with some portions actually ahead of the schedule. He also reported that he
believed the contractor was working in the WEDC's best interest pertaining to the budget.
Staff reported that there will be a presentation to the Wylie City Council on March 22nd in
Executive Session to discuss financial assistance being provided by the City to the Ascend
project.
Staff requested no action for this item.
ITEM NO. 4 — Consider and act upon issues surrounding reclassifying the WEDC
Administrative Assistant job title, job description, and salary.
Staff requested that this item be tabled until the next Board meeting.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to table
the issue surrounding reclassifying the WEDC Administrative Assistant job
title, job description, and salary to the Board Meeting to be held on March
21, 2011, The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of
the motion.
DISCUSSION ITEMS
ITEM NO. 5 — Staff Report: review issues surrounding an Amended and Restated Performance
Agreement between the WEDC and Woodbridge Crossing, Kansas City Southern Railway
Company, WEDC restaurant recruitment strategy and regional housing starts.
Woodbridae Crossin
Staff reported that Woodbridge Crossing is currently in compliance with all terms of the
Amended and Restated Performance Agreement. A Sales Tax Reimbursement Report was
WEDC — Minutes
March 18, 2011
Page 3 of 4
presented which identified all sales taxes generated through October 2010 within Woodbridge
Crossing for the City General Fund, the WEDC, and the 4B Corporation along with an 'audit
adjustment' generated in October 2010. Staff also reviewed that the City and WEDC will be
reimbursing 85% of all sales taxes generated within Woodbridge Crossing through September
2013. Beginning October 2013, 65% of all sales taxes generated will be reimbursed.
The performance measure due May 1, 2011 of 64,000 square feet of lease space constructed on
the in-line lots adjacent to Target between McCreary and Springwell has been met. Direct
Development will be notified that they are in compliance with the City/WEDC Agreements with
the next performance measure of a cumulative 385,118 square feet due by September 1, 2013.
There is currently 314,652 square feet in place within Woodbridge Crossing, 3,500 square feet
under construction, with Ross and Rack Room T1 Concepts planned for in-line space next to Kohl's.
A summary of Direct Developments' Performance Obligations was presented for the Board's
review.
Kansas City Southern Railway Company
Staff had no new information to present on the KSC issue.
WEDC Restaurant Recruitment Strategy
The Retail Coach contacted WEDC staff and indicated that they were also going to be doing
work with the Murphy EDC' under a similar contract. Mr. Kelly Cofer asked if the WEDC
wanted to use another firm. Staff believed that changing firms was unnecessary. Sophisticated
restaurant concepts are going to perform their due diligence whether Murphy or Wylie initiates
the contact. Further, the increased attention from The Retail Coach for adjoining communities
brings more attention to the area. Staff did request though that any contact with overlapping
concepts be made solely by staff so that there will be no impression that Mr. Cofer is promoting
one community over another.
Regional Housing Starts
Staff reported that Wylie is down 28% YTD from 2010, Lavon is down 13%, Murphy is down
76%, and Sachse is down 37%.
No action is requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:18 a.m. in compliance with Section
551.001, et.seq. Texas Government Code, to wit:
Section 551.071 (Consultation with Attorney) of the Local Government Code, Vernon's Texas
Code Annotated (Open Meetings Act).
WEDC —Minutes
March 18, 2011
Page 4 of 4
• Deliberate a pending or contemplated litigation surrounding Project Re-tool.
Section 551.087 (Economic Development Negotiations) of the Local Government Code,
Vernon's Texas Code Annotated (Open Meetings Act).
• Deliberate economic development negotiations surrounding Project Re-tool.
• Deliberate economic development negotiations with The Sooner Group.
Section 551.072 (Deliberations Regarding Real Property) of the Local Government Code,
Vernon's Texas Code Annotated (Open Meetings Act).
• Deliberate the purchase of real property generally located near the intersection of State
Highway 78 and Birmingham.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:10 a.m.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog for staff
to negotiate an offer with Mr. Glenn and Mr. Spokes for up to $220,000
along with a 2 year lease at $1,500 per month for the 0.3047 acre property
located at 209 Industrial Court. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:11 a.m.
/
(oNt/41 7;(7)
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director