01-18-2013 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, January 18, 2013 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:
Demond Dawkins, Todd Wintters, John Yeager, and Mitch Herzog.
WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris.
Ex-officio members Mayor Eric Hogue and Mindy Manson were present.
CITIZEN PARTICIPATION
There being no citizen participation, President Marvin Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the December 21, 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 December 21, 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 approval of the December 2012 WEDC Treasurer's
Report.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve the December 2012 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 WEDC 2012 Annual Report.
As per the WEDC By-laws, the WEDC must present an annual report to the Wylie City Council
no later than January 31 st of each year. The report must include, but is not limited to, a review of
all expenditures made by the Board, a review of accomplishments, and a review of other than
direct economic development. Staff presented the Report which meets the intent of the
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January 18, 2013
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requirements of the By-laws with the same being presented to the Wylie City Council on January
22, 2013.
The Board asked staff to emphasize the success of the local Dairy Queen since its opening and to
also mention negotiations with a major industrial company on a new project, and to report on the
success of the Ascend Custom Extrusion business.
Staff recommended that the WEDC Board of Directors approve the 2012 WEDC Annual Report
as presented by staff with the above mentioned adjustments and recommend it be presented to
the Wylie City Council.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the 2012 WEDC Annual Report with the minor adjustments and
recommend that it be presented to the Wylie City Council. The WEDC
Board voted 5 —FOR and 0 —AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 4 — Staff Report: review issues surrounding an Amended and Restated Performance
Agreement between the WEDC and Woodbridge Crossing, Commercial Lease/Performance
Agreement between the WEDC and ACE, WEDC-funded parking improvements to downtown
Wylie, Woodbridge Centre, B&B Theatre, Dallas Business Journal Book of Lists, and regional
housing starts.
Woodbridge Crossing
The Sales Tax Reimbursement Report was presented which identified all sales taxes generated
through September 2012 within Woodbridge Crossing for the City General Fund, the WEDC,
and the 4B. As a reminder, the City and WEDC will be reimbursing 85% of all sales tax
generated within Woodbridge Crossing through October 2013. Beginning October 2013, 65% of
all sales taxes generated will be reimbursed. Woodbridge Crossing is eligible for a maximum $6
million in sales tax reimbursement through September 2021. $1,435,405 has been reimbursed to
date with net receipts of$816,209 after reimbursements.
Ascend Commercial Lease and Performance Agreement
The Ascend Custom Extrusion Critical Dates Analysis and Performance Agreement Monitoring
Procedures were presented. Payment #2 of the Economic Incentives has been funded with
Ascend meeting all Performance Obligations within Section A of the attachment. Ascend is
currently operating 3 shifts in extrusion and packing, 2 shifts in shipping, and 1 ten hour shift in
the paint line. There are currently 163 Ascend personnel and 25 temps.
Downtown Parking Improvements
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January 18, 2013
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Prior to further staff time and expense required to develop accurate cost estimates, staff would
like for the Board to discuss general lease parameters involving term, repayment should property
be sold, and allowable uses.
Woodbridge Centre
A draft summary of the Clark Street incentive package and performance obligations was
presented for the Board's review. Upon issuance of a certificate of occupancy for the Kroger
Marketplace the WEDC will issue payment of a grant in the amount of$100,000. On a quarterly
basis from that point forward for a period of 10 years, the WEDC will provide a sales tax
reimbursement of '/2% of the sales tax generated from Woodbridge Centre. The maximum
cumulative incentive from the WEDC may not exceed $1.1 mm. Should Clark Street fail to meet
any of the performance measures, the total maximum incentive will be reduced to $550,000.
B&B Theatre
Similar to Woodbridge Crossing and Ascend, a draft summary of the Incentives payable and
Performance Obligations was presented for the Board's review. On or about May 2013 B&B
will receive a certificate of occupancy from the City and the WEDC will issue the first grant of
$100,000. Sixty days from that point and continuing for a period of five years, the WEDC and
City will provide sales tax reimbursements equal to 1% of the sales tax generated from the
theatre (1/2% each). Sales taxes reimbursements will be paid to B&B on an annual basis. In
addition, the WEDC will provide an annual $25,000 grant to B&B on the same date the sales tax
reimbursement are paid. Total grants and sales tax reimbursements by the WEDC and City will
not exceed the cumulative sum $600,000.
Dallas Business Journal
An excerpt from the Dallas Business Journal Book of Lists was presented which ranked
economic development agencies by the dollar value of projects which were secured in 2011.
While Wylie was the 16th overall EDC in terms of total value of deals, Wylie was the 5th ranked
in term of gain over 2010.
Regional Housing Starts
Sixteen homes were permitted in Wylie for December 2012. Sachse, Lavon and Murphy
permitted a combined twenty-eight homes over the same period. The Board will note the
pending developments in Wylie that staff has provided at the bottom of the attachment.
No action was requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:37 a.m. in compliance with Section 551.001
et.seq. Texas Government Code to wit:
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January 18, 2013
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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).
• Project Resurface
• Project Detroit
• Project ATR
• T.W. Snider& Associates
Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act).
• Consider the purchase of real estate in Wylie, Texas
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:28 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:28 a.m.
W1/I
Marvin Fuller, President
ATTEST:
Samuel Satterwhite,Director