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10-05-2012 (WEDC) Minutestl Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, October 5, 2012 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 6:30 a.m. Board Members present were: Mitch Herzog, Demond Dawkins, Todd Wintters, and John Yeager. WEDC staff present was Executive Director Sam Satterwhite. Ex-officio 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 September 24, 2012 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the September 24, 2012 Minutes of the Wylie Economic Development Corporation. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 2 —Consider and act upon issues surrounding a Real Estate Note between Jerry and Carmie Randack and the WEDC. Similar to the Hughes refinancing, staff provided the incorrect interest rate to the WEDC Board at the September 21, 2012 Board Meeting during which the purchase of the Randack Property was approved. Through a miscommunication between staff and American National Bank, it was reported to the Board that a 2.99% interest rate would be secured for the purchase of 1.089 acres from Jerry and Carmie Randack opposed to the actual rate of 3.99%. Staff recommended that the WEDC Board of Directors approve the purchase of Wylie Industrial Park Block A, Lots 2A, 3, and 4 in the amount of $400,000, approve 100% financing for the purchase with American National Bank at a rate of 3.99%, and further authorize President Fuller to execute all documentation necessary to effectuate said purchase and financing. WEDC—Minutes October 5, 2012 Page 2 of 3 MOTION: A motion was made by Todd Wintters and seconded by John Yeager authorizing President Fuller to execute all documentation necessary to finance the purchase of Wylie Industrial Park Block A, Lots 2A, 3, and 4 at an interest rate of 3.99%. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 3 — Consider and act upon issues surrounding an incentive agreement between the WEDC and Texas Timber Wolf. Staff reviewed that Texas Timber Wolf is a family owned and operated business providing custom woodworking products including cabinets, new and used furniture, office and showroom fixtures, and outdoor structures. Sarah and Wolfgang Blauen purchased 0.32 acre at the northeast corner of Alanis and Martinez in 2011 and have completed their new 1,600 square foot workshop. The Wolfs purchased the 0.32 acre for $32,000 ($42,000 current value), expended $165,000 on the construction of the building, and purchased$15,000 in equipment. On 6-27-12 within Executive Session staff presented a request for relocation assistance from Texas Timber Wolf. The WEDC Board directed staff to provide a $5,000 reimbursement incentive payable upon the issuance of a certificate of occupancy. Staff presented a Performance Agreement outlining the payment terms and performance measures between Texas Timber Wolf and the WEDC. Staff recommended that the WEDC Board of Directors approve said Performance Agreement providing for a reimbursement incentive in the amount of $5,000 further authorizing the WEDC Executive Director to execute the Agreement. MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to approve a Performance Agreement between the WEDC and Texas Timber Wolf further authorizing the WEDC Executive Director to execute the same. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. EXECUTIVE SESSION The WEDC Board recessed into Closed Session at 6:34 a.m. in compliance with Section 551.001 et.seq. Texas Government Code to wit: Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit: Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). • Request for Proposal - Project Detroit. • Incentive Proposal—Project ATR. WEDC—Minutes October 5, 2012 Page 3 of 3 RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 6:58 a.m. and took the following action. MOTION: A motion was made by Todd Winners and seconded by Demond Dawkins approving an incentive package benefitting Apple Texas, Inc in the amount of$177,000 to Direct Development and $25,000 to Apple Texas, Inc. 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 6:59 a.m. --/14Ari.4,1 IA- Marvin Fuller, President ATTEST: AgiA*, ‘I—i Samuel Satterwhite, Director