12-20-2013 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, December 20, 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 6:32 a.m. Board Members present were John
Yeager, Demond Dawkins, Todd Wintters, and Mitch Herzog.
Ex-officio members Eric Hogue and Mindy Manson were present. Also present were Assistant
City Manager Jeff Butters and Police Lieutenant Anthony Henderson.
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 ITE
ITEM NO. 1 — Consider and act upon approval of the December 18, 2013 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 18, 2013 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 November WEDC Treasurer's
Report.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve the November WEDC Treasurer's Report. The WEDC Board
voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 3 — [Remove from Table) Consider and act upon issues surrounding a
Performance Agreement between the WEDC and Sanden International(U.S.A.),Inc.
A motion was made by Todd Winners to remove consideration of Item No. 3 from the table.
Staff presented what was believed to be the final draft of a Performance Agreement between the
WEDC and Sanden for Board approval. Based upon direction provided by the Board at the
1. — Minutes
December 1 1
November 15, 2013 Board Meeting, the Agreement provides for an incentive package valued at
r to $350,000 and requires Sanden to demonstrate that million
been ,• e in the installation of piston
Upon payment of 2013 ad valorem taxes by Sanden and compliance with all Performance
measures, the WEDC will • a one-time r . r - of $100,000 to Sanden. Over the next five
reimburse years, the WEDC will • for t% of property taxes paid to " of
on • personal property value in Wylie over • .•r $60,051,408 with annual
payments not exceeding $50,000.
Staff recommended that the WEDC Board of Directors authorize staff to amend the Performan
Agreement with Sanden International to allow for a maximum incentive over five years
$350,000.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
approve the Performance Agreement as amended between the WEDC and
Sanden International and authorize WEDC Board President to execute the
same. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the
ITEM 1 . 4 — (Remove from r le) Consider ai t act upon issues surrounding
Performance n i between the WEDC and Ascend Custom Extrusions,
Events of Default include (i) Ascend knowingly making false statements to the City, the WED
or the State of Ascend filing for bankruptcy protection; an• Ascends failure ,,
r. .• • ` •
third Ascend is scheduled to complete their expansion no later than the week of January 6th and tbM
extrusion press • -• to be delivered February 28, 2014 and will be operational
May of 1
Staff recommended that the WEDC Board of Directors approve a Performance Agreeme"I
between the WEDC and Ascend Custom Extrusions,
r
December
Page 3 of
approximately $115,000 for the land with construction costs estimated at $375,000, and permit
fees
• $23,000.
The Performance Agreement requires a building permit to be issued with an identified
construction cost • $375,000 and a Certificate • Occupancy issued no later than November 1,
2014. The Agreement only contemplates a single payment as is consistent with other VVEDC
projects of this size (Southwestern Chiropractic and Texas Timber Wolf).
Staff recommended that the WEDC Board of Directors approve a Performance Agreement
between the WEDC and Swimcat LLC.
MOTION: A motion was made by Todd Winners and seconded by John Yeager
approving a Performance Agreement between the WEDC and Swinicat,
LLC and authorizing the WEDC Executive Director to execute the same.
The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion
with Demond Dawkins abstaining from the vote.
ITEM NO. 7 — Consider and act upon issues surrounding or mance a Perf Agreeme
between the NVEDC and Gardner Regency, LLC. I
Staff presented a Performance Agreement, within which the VVEDC was obligated to reimburse
Savage (Gardner Regency, LLC) for moving expenses in the amount of $254,357. The grant
was payable in five equal and annual payments of $50,871.40. The first installment was paid at
the issuance
• the certificate • occupancy • 1-9-09, with the fifth and final payment paid on 1 -
3-13.
The WEDC holds a note on the 3.87 acres sold to Gardner Regency in the amount of $421,433 '
Should there be no Default as detailed in the Agreement, the WEDC shall forgive all payments
date Savage received a certificate of occupancy. No event of Default has been identified.
With
• event of default existing, staff recommended that the VVEDC Board • Directors forgiv-
• r with the Real Estate Lien Note in the amount • $60,206.14.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager
approving the forgiveness of Payment #5 associated with the Real Estate
Lien Note in the amount • $60,206.14. The WEDC Board voted 5 — FOR
and 0 — AGAINST in favor • the motion.
ITEM NO. 8 — Consider and act upon issues surrounding a Performance Agreement
between the WEDC and Dank Real Estate, Ltd.
Staff presented a Performance Agreement between the VVEDC and Dank Real Estate, Ltd.
(Deanan Gourmet P•pcorn). Deanan currently occupies 4,988 square feet on Windco Circle and
proposes a 5,359 square foot expansion with a construction cost • $600,000. Deanan prepares
and packages specialty popcorn primarily for third parties to sell/distribute for fundraising
1! — Minutes
r - if" !•,
purposes. At the Boards' direction, staff presented an incentive package with a potential value of
r to $30,000. Deanan currently has real property • 111 along
personal property of $168,000.
Deanan must also certify each year that ad valorem taxes due are paid no later than February I st.
Staff recommended that the WEDC of Directors approve a Performance
r- r Dank Real Estate, Ltd.
MOTION- • • .• by •• and seconded by r- • • Dawkins to
approve a P- Agreement between the WEDC and Dank Real
• and authorize the WEDC, Director to execute the
same. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the
motio
ITEM 1 '' — Consider a11 act upon surrounding Performance .' I I • I
between II 1 and 1 1 1 Tooling Solutions, G -
Staff presented draft of Performance Agreement and Real Contra
between Exco Tooling Solutions and the VVEDC. Wl-iile Exco had not provided comments ba
to the WEDC, staff does believe that both parties are in general agreement as to the over
structure of _ package.
ITEM i' L Consider r1 act upon issues surrounding the WEDC purchase of II
acres from I r 1. I I I I ts, Inc., formerly r r r as Hobart Industries, r and
authorize r r r Fuller to execute all documentation I 1 effectuate the
purchase.
December 21 2013
'.,- • of
Staff presented a Real Estate Sales • between • Hobart
Amendment t• the Contract, - • Amendment to the Contract, Real Estate Note, Deed •
Trust, and Warranty Deed with Vendor's Lien. Staff reported that the closing is scheduled January 6, r
Staff recommended that the WEDC Board of Directors approve the purchase of 1.065 acres frorg
Hobart - - nts, Inc. in the amount of 111 plus standard s • r. • • •
r • - President • - , documentation �•
purchase. offectuate the
ITEM O. 11 — Consider and act upon issues surrounding the 1
Budget An it i';.
Staff recommended that the WEDC Board of Directors approve a Budget Amendment Request
for $31,666 in Interest Earnings, $410,280 in Lease Principal Payments, and $441,946 in Debt
MOTION: A motion was made by Mitch Herzog and seconded by Demond Dawkins to
approve the Budget Amendment Request. The WEDC Board voted 5 —
FOR and 1 — AGAINST in favor of • •
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FTEM NO. 12 — Consider and act upon issues surrounding the WEDC FY 2013 — 2104
r1ludget Transfer.
Tinrn
WEDC is currently budgeted in the 'Transfer to General Funds' account. Finance has requested
that the WEDC transfer those funds to the 'Special Services' account in order to comply with the
GA S13 standards which require a physical check be issued for the administrative services
provided to the WEDC by the City of Wylie.
Also pertaining to the Interlocal Agreement, the WEDC is required to reimburse the City for its
share
• the City-wide Errors & Omissions Policy. The City Purchasing Agent has determined
that the WEDC has never funded this obligation which this Budget Transfer will address in the
amount of $810. The Errors & Omissions policy covers any directors/officers wrongful acts
(actual or alleged errors), misleading statements, acts or omission, or breach of duty.
As reported via email on October 10, 2013, the WEDC Director incorrectly inputted Ms. Harris's
salary into the draft FY 2013 — 2014 WEDC Budget. The figure inputted was from 2011 — 2012
and reflects a $2,513 annual shortfall. Ms. Harris is however receiving her correct salary which
included a 3% merit raise from FY 2012 — 2013.
Staff proposed reducing Incentives by $3,322 to offset the increased expenses within Insuran
($810) and Salaries ($2,513). 1
Staff recommended that the WEDC Board of Directors Approve Budget Transfer Request 12-20-
13 in the amount • $16,068.
MOTION: A motion was made by Mitch Herzog and seconded by Demond Dawkins
approve Budget Transfer Request 12-20-13 in the amount of $16,068.
WEDC Board voted 5 — FOR and 0 — AGAII&JST-4 favor • 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 VVEDC and ACE, Performance Agreement between the VVEDC and
F*.',&B Theatres Operating Company, Kansas City Southern Railway Company, and regional
housing starts.
$2,027,803.65 has been reimbursed to date with net receipts • $1,153,064.82 after
reimbursements. As well, $1.4 min has been paid in ad valorem taxes to the City of Wylie
(excluding the WISD).
A presentation made • the KCS Railway Company to the Wylie City Council and Colli
County Commissioners Court was presented to the WEDC Board of Directors. KCS Iij
January, 2014 and complete the same within 18 months.
11
U-M-0 VA
and certain zoning issues which need to be addressed in the near future.
Eighteen homes were permitted in Wylie for November 2013. Sachse, Lavon and Murph
[•` "• a combined nineteen h1 mes 1 ver the same period.
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Page 9 of 9
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at To34 a.m. in compliance with Section 551. 001
et. seq. Texas Government Code to wit:
Section 551.087 (Economic Development) • the Local Government Code, Vernon's Texas
Code Annotated (Open Meetings Act).
• Project 2013-5c
• Project 2013-9a
• Project2013-llb
Section 551.072 (Real Estate) • the Local Government Code, Vernon's Texas Code Annotated
(•• en Meetings Act). Consider the acquisition • property located near the intersection of-
• Ballard & Alanis
• Stone & Birmingham
• State Highway 78 & Ballari-
r uner,rrenuent
ATTEST: