04-19-2013 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, April 19, 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:
Todd Wintters, Demond Dawkins, and Mitch Herzog.
Ex-officio members Mayor Eric Hogue and Mindy Manson were present.
WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris.
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 March 22,2013 Minutes of the Wylie
Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to
approve the March 22, 2013 Minutes of the Wylie Economic Development
Corporation. The WEDC Board voted 4—FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 2 — Consider and act upon approval of the March 22, 2013 WEDC Treasurer's
Report.
MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins
to approve the March WEDC Treasurer's Report. The WEDC Board voted
4—FOR and 0—AGAINST in favor of the motion.
ITEM NO.3—Consider and act upon issues surrounding WEDC office space.
Staff reviewed that on December 1, 2010 the WEDC entered into a 5-year lease with Wylie
Industrial Court Development, Ltd. for the lease of office space at 250 Highway 78 South. The
current rent is $1,500 per month with the WEDC having 2 offices, a file room, copy room,
access to 2 conference rooms, a kitchen, and upstairs storage.
WEDC—Minutes
April 19, 2013
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As of May 1st, the Wylie Chamber of Commerce will be relocating to an office on Ballard Street
adjacent to the Birmingham Land Trust. The Chamber currently occupies 4 offices at the rear of
the building. Staff will relocate to the vacated Chamber offices and have the option of securing a
3rd office. The primary reason for the WEDC relocating offices is to increase the distance from
the lobby which generates a significant amount of noise.
Pertaining to acquiring a third office, staff recommended that the WEDC lease this additional
office for the following reasons: 1) a small conference room could be established solely for
WEDC use; 2) should the WEDC add an additional staff member or intern in the future, an office
would be available; and 3) if the additional office was left vacant staff would anticipate Wylie
Industrial Court Development, Ltd. will attempt to lease the office which staff believes would
negatively encroach on WEDC `space'.
The WEDC Board was in full support of the proposal and directed staff to negotiate an amended
lease reflecting any increase in lease payments. President Fuller also directed staff to present any
required budget amendment in addition to the amended lease at the May WEDC Board Meeting.
No action was requested by staff for this item.
ITEM NO. 4 — Consider and act upon a Performance Agreement between the WEDC and
Sanden International, (U.S.A.), Inc.
Staff presented for review a draft version of the Performance Agreement between the WEDC and
Sanden International outlining the parameters by which Sanden could earn incentives up to a
maximum of$500,000 associated with the acquisition and installation of a new line producing
pistons for the compressor manufacturer.
Incentive No. 1 would provide $250,000 to Sanden should the new piston line be operational by
12-31-13 and have hard costs associated with acquisition and installation of at least $24 mm.
Upon verification of compliance with the above terms, the WEDC would fund $100,000 as
payment#1 and $37,500 thereafter for four additional years.
Incentive No. 2 would allow Sanden to earn up to $50,000 per year over a five year period
(maximum $250,000) and be structured as reimbursements for property taxes paid to the City of
Wylie. Similar to a tax abatement, the WEDC will reimburse Sanden for 50% of property taxes
paid on all value in excess of$56,241,300 (existing 2012 value). For example, should Sanden
have a combined future value of real and personal property of $66,241,300, the WEDC
reimbursement will be based upon $10 mm in increased value multiplied by the current
municipal tax rate of $0.8889 per $100 value and dividing by 2 (50%) totaling a $44,445
reimbursement.
Should Sanden default under the terms of this Agreement, the WEDC will have no obligation to
pay any future incentive payment with a default identified as:
1. Minimum ad valorem value of$56,241,300 maintained during the life of the Agreement;
2. False statement made;
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April 19, 2013
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3. Sanden becomes insolvent;
4. Fails to pay municipal payments of any kind;
5. Sanden files suit against the WEDC/City of Wylie;
6. Piston line must remain operational (producing 'x' number of pistons/units per month).
Prior to final approval and execution of the Agreement, Sanden must provide the WEDC with an
itemized list of real and personal property improvements detailing specific
equipment/improvements along with cost estimates.
Staff had no recommendations for this issue.
ITEM NO. 5—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, Extension of Woodbridge Parkway, Woodbridge
Centre, B&B Theatre Red Carpet Gala, WEDC property located at 2806 F.M. 544, Congressman
Pete Sessions Mobil Office Hours program, and regional housing starts.
Woodbridge Crossing
The Sales Tax Reimbursement Report was presented which identified all sales taxes received
through February 2013 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. $1,619,085 has been reimbursed to date
with net receipts of$920,656 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 5 for the Economic Incentives has been funded with
Ascend meeting all Performance Obligations within Sections A and B of the attachment. Ascend
is currently operating 2, 10-hour shifts in extrusion and packing, 2 shifts in shipping, 3 shift in
maintenance, and 1 ten hour shift in the paint line. There are currently 185 employees including
27 temps.
Staff reported that on April 22, 2013 the Highlander/Ascend Board will meet to finalize
discussion surrounding the potential facility expansion and acquisition of additional equipment.
Staff will be meeting with Ascend management the week of the 22nd to discuss issues
surrounding the real property note and potential changes to the lease-purchase agreement should
an expansion take place.
Extension of Woodbridge Parkway
As reported in March, engineering plans are complete for the extension of Woodbridge Parkway
and right-of-way from Mr. Don Herzog and the WISD has been secured. Mr. Wayne Rich and
WEDC—Minutes
April 19, 2013
Page 4 of 5
the right-of-way acquisition agent are down to negotiating the value of trees and fencing. The
City Engineer anticipated an agreement in principal from Mr. Rich the week of April 15th.
The Engineering Department still anticipates releasing utility work and going out to bid for
construction in April with a construction time frame of 12— 18 months.
Woodbridge Centre
IHOP and Chicken Express are shopping the Woodbridge Centre site along with several other
sites in Wylie and Murphy. Edge Realty appears to be promoting the site to a greater extent
recently possibly due to the Kroger opening soon and ICSC in May.
B &B Theatre
B&B Theatre will be holding a 'Red Carpet Gala' April 25th beginning at 7:00 p.m. This
ticketed event will include a formal presentation by B&B and the Mayor along with food and
beverage with all proceeds going to the Wylie Christian Care Center. As a sponsor of the event,
the WEDC has invited 100 individuals from Wylie, Sachse, Murphy, and the real estate
community.
WEDC Property Located at 2806 FM 544
A national restaurant has approached the WEDC inquiring as to the availability and asking price
for the Ferrell tract. The Retail Connection, representing the national concept, was concerned
about access to west bound 544 which staff responded could be addressed via median
improvements on 544.
Congressman Pete Sessions Mobil Office Hours
On the second Tuesday of each month Congressman Pete Sessions will have preset office hours
from 9:00 a.m. to 5:00 p.m. at the Wylie Municipal Complex within the City Manager's office
suite. Mr. Matt Garcia, Deputy District Director for Congressman Sessions is in charge of the
program locally and will be present during those hours. Staff encouraged Board members to go
meet Mr. Garcia to further the relationship between Wylie and Congressman Sessions. Staff
spent approximately 4 hours with Mr. Garcia introducing him to business representatives
including Savage, ACE, and Exco.
Regional Housing Starts
Seventeen homes were permitted in Wylie for March 2013. Sachse, Lavon and Murphy
permitted a combined ten homes over the same period. The Board will note the pending
developments in Wylie that staff has provided at the bottom of the attachment.
WEDC—Minutes
April 19, 2013
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EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:10 a.m. 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).
• Industrial Project—Hensley Lane
• Industrial Project(s)—Regency Business Park
• Project Marble
Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act).
• Consider the acquisition of property located near the intersection of F.M. 544 and
Springwell Parkway.
• Consider the acquisition of property located near the intersection of Cooper Drive and
F.M. 544.
Ex-Officio Member Eric Hogue left the meeting at 7:20 a.m.
Board Member Demond Dawkins left the meeting at 7.•50 a.m.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:07 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:07 a.m.
7(4,044,
Marvin Fuller, President
ATTEST:
Samuel Satterwhite,Director