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01-18-2008 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, January 18, 2007—6:00 A.M. Inwood National Bank—Conference Room 200 South Highway 78 —Wylie,Texas CALL TO ORDER Announce I Y V ■ o u m President Fuller called the meeting to order at 6:00 a.m. Board Members present were: John Yeager,M rri l Young, Mitch Herzog, and Chris Seely(arrived at 6:07 a.m.) Staff present was Executive Director Sam Satterwhite vhite and Administrative Assistant Gerry Harris. Ex-Officio Board Member Mindy Manson and Assistant City Manager Jeff Butters was 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 December 19, 2007 Minutes of the WEDC Board of Directors Meeting. MOTION A motion was made by Merrill Young and seconded by John Yeager to approve the December 19, 2007 Minutes of the WEDC Board of Directors Meeting. The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. — (MOTION TO REMOVE FROM TABLE) Consider and Act Upon Issues Surrounding Approval of the November 2007 WEDC Treasurer's Report, MOTION: A motion was made by Merrill Young to remove the November 2007 WEDC Treasurer's Report from the table. Staff informed the Board that all questions which arose at the December 19, 2007 Board Meeting have been answered and discrepancies in the JTM Accounts Receivable and Inventory Account have been clarified. Staff recommended approval of the November,er, 7 WEDC Treasurer's Report. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the November er 2007 WEDC Treasurer's Report. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. WEDC—Minutes January 18, 2008 Page 2 of ITEM NO. 3—Consider and Act Upon Approval of the December 2007 WEDC Treasurer's Report. Staff indicated that rental income is deficient by $600 based upon an outstanding balance from a tenant on Industrial Court. As well, miscellaneous income in the amount of$1,905 was present due in part to a refund by ICSC for inaccurate sponsorship language. MOTION: A motion was made by Merrill Young and seconded by Chris Seely to approve the December 2007 WEDC Treasurer's Report. The WEDC Board voted 5—FOR and 0—AGAINST in favor of the motion. ITEM No. 4 — (MOTION TO REMOVE 'ROM ' ABLE) Consider and Act Upon Issues Surrounding the Demolition of Properties Located at 105 Masters Ave. and 107 Masters Ave. MOTION: A motion was made by John Yeager to remove Item No. 4 from the table. Staff reported that there are two dilapidated properties located near the southeast corner of Ballard and State Highway 78 which are owned by the Harry Tibbals Estate. One structure previously housed a business and the second was a single family home with both structures uninhabitable and no plans for rehabilitation. Located on Masters Avenue, these two sites are part of a larger tract owned by the Tibbals and anchored by the previously operated Wylie supermarket and Century 21 offices. The Tibbals Estate is currently attempting to lease the Century 21 offices with no plans for Wylie Supermarket due to the cost which will be incurred by bringing the property up to current Municipal codes (fire sprinklers and concrete paving). The Tibbals believe; and staff concurred, that the Wylie commercial market will not support redevelopment of the corner for at least years. Staff recommended that the WEDC should participate in the demolition of both structures based upon their visibility from State Highway 78 and their dilapidated state. Staff has been quoted $9,500 to demolish both structures, but believed that when the project is bid out, the cost could be less. Mr. Herzog again questioned the necessity for the WEDC to participate in improving private property. Staff responded that this effort would be purely aesthetic and the return to the WEDC would be in the form of improving the appearance of the State Highway 78 corridor and spurring redevelopment of the southeast corner of 78 and Ballard. Assistant City Manager Jeff Butters commented that the City of Wylie had just recently implemented an initiative to remove/demolish structures which pose a hazard to the community and charge the landowner for the demolition. Mr. Butters described the typical state of a property subject to the program being in extreme disrepair and an inability to bring the structure up to a safe standard. Mr. Butters was not specifically aware of the above properties, but committed to investigate the same. WEDC—Minutes January 18, 2008 Page 3 of President Fuller suggested that the item be tabled subject to the findings of the City of Wylie. MOTION: A motion was made by Merrill Young and seconded by John Yeager to table consideration of surrounding the demolition of properties located at 105 Masters Ave. and 107 Masters Ave. The WEDC Board voted 5 —FOR and AGAINST in favor ofthe motion. ITEM NO. — (MOTION TO REMOVE FROM TABLE) Consider and Act Upon Issues Surrounding Redevelopment of Property Located at 902 West Kirby as it Relates to Potential Infrastructure Assistance from the WEDC. MOTION: A motion was made by John Yeager to remove the Redevelopment of Property Issue from the table. President Fuller and staff were approached by a representative of Henry S. Miller to discuss the potential redevelopment of a±1.3 acre tract located at 902 West Kirby(northeast corner of P.M. 544 and Commerce Street). The developer proposed a Popeye's and Burger King on the site and is requesting WEDC assistance with the demolition of the facility. A±12,200 square foot metal facility is located on the property which is owned by Hobart Industries. A local demolition contractor has estimated demolition costs between $10,000 - $15,000 plus applicable City fees and State permits. Staff believed the project warrants WEDC participation in that the site will be redeveloped from its previous industrial use and metal construction. Should the Board approve WEDC participation, staff recommended the developer fund the demolition (with WEDC approval of a contractual amount) and the WEDC reimburse the developer at the time a building permit is issued for the development of a commercial site. Staff recommended that the WEDC Board of Directors authorize the WEDC Executive Director to negotiate with the developer of the above site and a firm qualified to demolish the existing structure for the reimbursement of demolition costs up to $15,000. MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to authorize the Executive Director to negotiate with the developer of the 902 West Kirby site to demolish the existing structure for no more that $15,000 with no longer than 60 days to complete the demolition project. The WEDC Board voted 5 —FOR and o—AGAINST in favor of the motion. ITEM NO. — Consider and Act Upon Developing a Billboard Ad Campaign Promoting the Wylie Community. Staff informed the Board that the Downtown Merchants currently have a billboard on the westboundsouthbound side of State Highway 78 near Hensley Tractor. The contract for the billboard expires in February with the Merchants not renewing the same for financial reasons. Staff represented to the Board that the WEDC may want to consider creating a Wylie billboard campaign at the above location featuring the downtown shopping district. WEDC—Minutes January 18, 2008 Page 4 of The billboard is owned by Outdoor signs. The annual cost of the sign is $9,000 with $500 for the design and hanging of a new skin. If the WEDC participates in the billboard lease, the Merchants could fund$1,200 of the annual cost. A large portion of the Wylie retail trade area travels south on 78 from Rockwall, Lavon, 'armers ille, and beyond making this an advantageous location for this type of advertising. While staff would need to more time to spend developing the theme/design of the billboard, staff recommended that the WEDC Board commit to funding the expenditure allowing staff to design and implement the program. Staff recommended that the WEDC Board of Directors authorize the Executive Director to execute a contract with Outdoor Signs in an amount not to exceed $9,500 with a separate agreement with the Downtown Merchants for$1,200. MOTION: A motion was made by Chris Seely and seconded by John Yeager to authorize the Executive Director to execute a contract with Outdoor Signs in an amount not to exceed $9,500. The WEDC Board voted 5 —FOR and 0 — A AINST in favor of the motion. ITEM NO. — Consider and Act Upon Authorizing President Fuller to Execute a Performance Agreement with Woodbridge Crossing, L.P. Staff submitted for the Board's review a Letter of Intent (LOI) entered into between the City of Wylie, WEDC, and Direct Development. Similar terms were presented to the Board at the December 19, 2007 WEDC Board Meeting during Executive Session. Based upon negotiations which occurred after the Board Meeting and continued on the 20th, staff recommended to the Wylie City Council on January 20t1 a package totaling 12 million with the waiver of all development fees on all in-line development and two Direct Development owned pad sites adjacent to F.M.544. The fees on all remaining pad sites will not be subject to waiver. As specified in the Performance Agreements and Retail Development Agreement, the WEDC and City of Wylie (limited to their general fund penny) will reimburse Woodbridge Crossing, L.P. (Direct Development) 85% of its respective sales tax receipts generated from Woodbridge Crossing in years 1 — of the Agreements. In years 5 — 12, the percentage reimbursement will be reduced to 65% accordingly until which time that 12 million is reimbursed or the Agreements expire. Further, all development fees associated with the initial phase of Woodbridge Crossing will be waived. The initial phase is comprised of a minimum 530,000 square feet of mixed-use retail (including an 186,118 square foot super Target), all of which must be completed by June 1, 2009. The remainder of pad development fronting F.M. 544 (±43,500 square feet) will not be subject to development fee waiver. Staff presented a Development Plan for the Board's review. Staff explained that Woodbridge Crossing, I .P. will construct or cause to be constructed 7, 05 linear feet of roadway improvements including 6,500 linear feet of McCreary Road and 1,030 linear feet of Springwell Parkway. Also, the traffic signal at McCreary Road will be redesigned WEDC—Minutes January 18, 2008 Page 5 of to accommodate northbound traffic, and new signals at Springwell and the central entrance will be installed. On January 11t1', TxDOT verbally approved all signals, median breaks, and curb cuts into the development, As well, the North Texas Municipal Water District has been instrumental in securing the permit from the State of Texas to redesign the boundaftes of the landfill so that McCreary Road can be constructed within its current design. Identifiable costs associated with the above improvements are estimated at$8.78 million. Based upon conservative estimates of sales tax generation, property tax proceeds, and making certain assumptions of the rate at which the center is leased, total revenues generated over the life of the Agreements will be $34.1 million. With $12 million in sales tax reimbursements, the Wylie community is returning approximately 35% of the revenues generated back to Direct Development. The City of Wylie Planning & Zoning Commission n will be considering the Woodbridge Crossing Development Plan on January 15th with WEDC and Council considering the DevelopmentiPerfomiance Agreements on January 1 tl and 22' respectively. The Target Capital Projects Executive Committee will issue final approval of the Wylie site on or about February 4 . Direct Development is scheduled to close on the property with Herzog on February 1 th with Target having simultaneous closing with Direct on the same day, Although staff presented the Board with draft Agreements and expected the Agreements to be finalized by the 18t1', there were still some details to be negotiated at the time of the Board Meeting. Staff recommended that the Woodbridge Issue be tabled until Tuesday, January 22, 2007, MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to table consideration of a Performance Agreement between the WEDC and Woodbridge Crossing, L.P. until Tuesday, January 22, 2007 at 5:00 p.m. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. EXECUTIVE SESSION - The WEDC Board of Directors convened into Executive Session at 7:04 a.m. I. Consider and Act Upon Issues Surrounding a Letter of Intent Between the WEDC and Savage Precision Fabrication, Inc. as Authorized in Section 551.087 (Economic Development Negotiations) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). It. Consider and Act Upon Issues surrounding the Purchase of Property Located Near the Intersection of Birmingham Street and State Highway 78 as Authorized in Section 551.072 (Real Property) of the Local Government code, Vernon's Texas Code Annotated (Open Meetings Act). WEDC—Minutes January 18, 2008 Page 6 of RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 7:37 a.m. Executive Session Item No. I: Staff had recommended to the WEDC Board of Directors to authorize President Fuller to execute a Letter of Intent between the WEDC and Savage Precision Fabrication. John Yeager requested that the Letter of Intent specify that Savage maintain their headquarters in Wylie, on the property, for five years. MOTION:N: A motion was made by Chris Seely and seconded by Mitch Herzog to authorize President Fuller to execute a Letter of Intent between the WEDC and Savage Precision Fabrication with the above noted change. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. No further action was taken as a result of discussions held in Executive Session. AD J ENT- - With no further business, President Marvin Fuller adjourned the WEDC Board meeting at a.m. -1(1) dAtiVIA- tlbee& 6161ild Marvin Fuller, President ATTEST: Samuel D.R. Satterwhite Executive Director