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08-14-2013 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday,August 14, 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, 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 With no citizen participation, Mr. Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 —Consider and act upon approval of the August 2,2013 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 August 2, 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 July 2013 WEDC Treasurer's Report. MOTION: A motion was made by Mitch Herzog and seconded by Demond Dawkins to approve the July WEDC Treasurer's Report. The WEDC Board voted 4 — FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 3 — Staff Report: review issues surrounding an Amended and Restated Performance Agreement between the WEDC and Woodbridge Crossing, Performance Agreement between the WEDC and ACE, Performance Agreement between the WEDC and B&B Theatres Operating Company, Performance Agreement between the WEDC and Sanden WEDC—Minutes August 14, 2013 Page 2 of 4 International, (U.S.A.), Inc., extension of Woodbridge Parkway, Wal Mart Neighborhood Market, WEDC Budget presentation to Wylie City Council, and regional housing starts. Woodbridge Crossing The Sales Tax Reimbursement Report was presented which identified all sales taxes received through May 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 with the reimbursement percentage reduced to 65% thereafter. Woodbridge Crossing is eligible for a maximum $6 million in sales tax reimbursement through September 2021. $1,848,272.76 has been reimbursed to date with net receipts of $1,050,978.63 after reimbursements. As well, $1.4 mm has been paid in ad valorem taxes to the City of Wylie (excluding the WISD). Ascend Commercial Lease and Performance Agreement The Ascend Custom Extrusion Critical Dates Analysis and Performance Agreement Monitoring Procedures was presented. Payment #3 of 5 for the Economic Incentives has been funded with Ascend meeting all Performance Obligations within Sections A and B of the attachment. As reported previously, Ascend ordered a third extrusion press that will be delivered on or about March 2014. An architect has been hired along with Pulliam Construction Management to design and construct the proposed 21,000 square foot expansion. Ascend will break ground on the project the week of August 11th and staff has received the Commitment Letter from Texas Capital Bank to finance the project along with the purchase of the land and building from the WEDC. B &B Theatres Operating Company Performance Agreement In July, the WEDC began receiving a Sales Tax Area Report from the Comptroller which tracks taxable sales generated from the Wylie B&B Theatre. The B&B Theatre Performance Obligations were presented. The WEDC will fund Incentive No. 2 of $25,000 plus sales tax reimbursements following the certification by the Central Appraisal District of a minimum appraised value of $10 mm. Being that the WEDC began tracking the sales tax generated in April 2013; the first sales tax reimbursement from the WEDC/City of Wylie will be made up of 16 months of sales tax generated by B&B opposed to the initial 12 month period contemplated in the Agreement. Incentive No. 3, to be paid in September 2015, will reflect 12 months of sales taxes generated. Performance Agreement between the WEDC and Sanden International(USA), Inc. Sanden officials indicated that the information required for the Performance Agreement would be received by the WEDC on July 22nd. Staff has not received any information and has not contacted Sanden officials. WEDC—Minutes August 14, 2013 Page 3 of 4 Mr. Wintters mentioned that he had discussed the issue with Mr. Phaup and that the WEDC should be receiving the requested information shortly. Woodbridge Parkway Utility relocation is under way on the Woodbridge Parkway extension, a pre-bid meeting will be held on August 15th with bids opened August 27t'. Council will award the bid on either September 10th or 24t. Wal-Mart Neighborhood Market Wal-Mart will be appealing the P&Z split decision to the Wylie City Council on August 27th. In review, Wal-Mart is proposing the development of a Neighborhood Market at the corner of McCreary and McMillan. WEDC Budget Presentation to Wylie City Council Staff indicated that the WEDC Budget was presented to the Wylie City Council on August 13th and that Council received the WEDC 2013 —2014 program of expenditures favorably. Regional Housing Starts Eighteen homes were permitted in Wylie for July 2013. Sachse, Lavon and Murphy permitted a combined twenty-three homes over the same period. No action was requested by staff for this item. EXECUTIVE SESSION The WEDC Board recessed into Closed Session at 6:42 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). • Project 2013-4a • Project 2013-5a • Project 2013-5c • Project 2013-5d 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: • F.M. 544 & Commerce • Cooper Drive WEDC—Minutes August 14, 2013 Page 4 of 4 RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 7:42a.m. and took no action. ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 7:42 a.m. h4M07 ,94 Marvin Fuller,President ATTEST: Samuel Satterwhite, Director