03-10-2008 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Monday, March 10, 2008 .6: 0 A.M.
Inwood National and -Conference Room
200 South Highway 78 -Wylie,Texas
CALL TO ORDER
Announce the presence of a Quorum
President Fuller called the meeting to order at 6:00 a.m. Board Members present were: Merrill
Young, John Yeager, Mitch Herzog, and Chris Seely.
Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry Harris.
Ex-Officio Board Member John Mondy arrived at 6:05 a.m.
CITIZEN PARTICIPATION
ION
There being no citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS - ---- --
ITEM NO. I - Consider- and Act Upon Approval of the February 25, 2008 Minutes of the
WEDC Board of Directors Meeting.
MOTION: A motion was made by Merrill Young and seconded by John Yeager to
approve the February 25, 2008 Minutes of the WEDC Board of Directors
Meeting as amended. The WEDC Board voted 5 -FOR and o-AGAINST
in favor of the motion.
ITEM NO. 2 -Consider and Act Upon Authorizing the WEDC President To Execute all
Documentation Necessary to Effectuate the Purchase of a 0.2755 Acre Tract Known as Lot
8, Railroad Industrial Park from Mr. and Mrs. Joseph Cazad in the Amount of$200,000.
Staff presented for the Board's review the Commitment for Title Insurance and all support
documentation associated with the Cazad purchase. Staff noted that although there are several
liens on the property, they will all be cleared up at closing.
It was also pointed out that on the survey received on 3-7-08, the acreage is 0.266 opposed to the
0.2755 as indicated on the Collin County Appraisal district property information. The Board did
not believe that the difference of 413.82 square feet represented a material change in that the
offer by the WEDC.
WEDC—Minutes
March 10,2008
Page 2 of
Staff recommended that the WEDC Board of Directors authorize the WEDC President to execute
all documentation necessary to effectuate the purchase of the 0.266 acre tract known as Lot 8,
Railroad Industrial Park from Mr. and Mrs. Joseph Cazad.
MOTION: A motion was made by Mitch Herzog and seconded by Merrill Young
authorizing the WEDC President to execute all documentation necessary to
effectuate the purchase of the 0.266 acre tract known as Lot 8, Railroad
Industrial Park from Mr. and Mrs. Joseph Cazad. The WEDC Board voted
—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 3 —Consider and Act Upon Responses to a Request for Proposal for Financing
the Purchase of a 0.2755 Acre Tract Known as Lot 8, Railroad Industrial Park from Mr.
and Mrs. Joseph Cazaci, Further Authorizing the WEDC Vice President to Execute all
Documentation Necessary to Effectuate the Issuance of Debt on Behalf of the WEDC.
Mr. Fuller, citing a conflict of interest in regards to any discussion surrounding the financing of
the purchase of the property known as Lot 8, Railroad Industrial Park, excused himself from the
meeting during discussions and subsequent vote on the issue. Staff indicated that a conflict of
interest affidavit would be filled out by President Fuller and made a part of the approved
minutes. Mr. Fuller asked Vice President Young to conduct meeting during his absence.
Staff presented for review the original Term Sheet and a Term Sheet entitled Option II which
was distributed to American National Bank, Chase Bank, Capital One, Texans Credit Union and
Inwood National Bank. Staff reviewed that the original Term Sheet requested a 5-year fixed rate
with a second 5- year term based upon prime plus/minus ' '. The Second Term Sheet (option
II) requested a fixed interest rate for a 10-year term. Both term sheets indicate a March 17, 2008
closing date, 90% financing, no prepayment penalty, no appraisal required, and the pledge of a
first lien deed of trust on the subject property as collateral. Also, no parameters were provided in
terms of fees to be charged. All bids were submitted by 5:00 p.m. on March 7, 2008 as
requested.
Staff summarized the bids identifying American National .9 ° as the low bidder on the two
five year terms and Capitol One (6.3%) the low bidder on the ten year fixed term. Staff further
indicated that while Inwood National Bank had submitted a 5.75% fixed rate for 60 months,
Inwood was not able to provide a 90% loan to value ratio. Inwood would require 1 % down in
order to receive a 5.7 % rate opposed to the 10% requested by the WEDC. For that reason, staff
recommended that the Inwood bid not be considered by the Board. The Board unanimously
agreed.
Even with American having the lower initial interest rate, Board members Yeager and Herzog
both preferred a fixed ten year rate so that the WEDC would not be subject to market
fluctuations at the end of the initial five year period. Staff indicated that the difference in a
5.99% and 6.3% rate over a five year period equaled $28 per month. Staff summarized that
Capitol One's fixed ten year rate of 6.3% had no fees, did not require a survey, only required a
first lien deed of trust opposed to dedicating sales tax revenue, and could meet the closing
deadline of March 17, 2008.
WEDC—Minutes
March 10, 2008
Page 3 of
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
authorize the WEDC Vice President to execute all documentation necessary
to effectuate the issuance of debt between the WEDC and Capital One. The
WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion.
Mr. Fuller returned and convened the WEDC into Executive Session.
EXECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 6:15 am.
I, Consider and Act Upon Issues S rroundi .g a Letter of Intent between the WEDC and
Savage Precision Fabrication, Inc. as Authorized in Section 551.087 (Economic
Development Negotiations) of the Local Goverment Code, Vernon's Texas Code
Annotated (Open Meetings Act).
IT. Consider and Act Upon Issues Surrounding a Letter of Intent between the WEDC and T.W.
Snider and Associates as Authorized in Section 551.087 (Economic Development
Negotiations) of the Local Government Code, Vernon's Texas Code Annotated (Open
Meetings Act).
1
3 _
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:18 a.m.
Actions taken from Executive Session:
I. Staff presented the executed Letter of Intent (LOI) between the WEDC and Savage
Precision Fabrication, Inc. and explained that the Letter had been submitted to WEDC Counsel
for preparation of the Performance Agreement. The Planning & Zoning Commission approved
the site plan and re-plat on 3-4-08 with the Wylie City Council scheduled to consider the same
on 3-25-08. The Board discussed the funding repayment of the construction of the mutual access
easement and directed staff to negotiate with Savage for the funding of 50% of the easement with
the potential of Savage receiving a partial reimbursement from future businesses acquiring
property within Premier Plaza.
MOTION: A motion was made by Chris Seely and seconded by Mitch Herzog to
authorize staff to negotiate for the equal cost sharing of the mutual access
easement between the WEDC and Savage Precision Fabrication. The
WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
II. Staff reported that Mr. Tony Snider has approached the WEDC inquiring as to the potential
for assistance in developing a commercial property in Wylie. The property is northeast of and
adjacent to Brookshire's and is comprised of 1.93 acres. Mr. Snider proposes the development
of four, 4,800 square foot office suites. Each structure will be divided into a maximum of four
units. The first phase will consist of one, 4,800 square foot structure with a finished out 1,200
WEDC—Minutes
March 10, 2008
Page 4 of 5
square foot office, underground utilities, and parking to accommodate the entire property (±90
spaces). Parking and utilities has been estimated at $250,000. Mr. Snider believes the market
for each 1,200 square foot unit to be $179, 0. Mr. Snider has developed similar projects in
Frisco (2) and Dallas (2). Fully developed, staff estimates the appraised value of the site to be
$2.5 w- $3.0 million.
Staff had considered WEDC assistance in this project because: 1 the property in question is in a
poor location and has a history of failed development attempts; (2) with the proximity of the
adjacent neighborhood, complimentary commercial uses are limited; and there are no office
suites available in Wylie which are not within a strip center and available to purchase.
Staff suggested that funding for the project be tied to completed parking and utilities for the
entire site, certificate of occupancy for the 4,800 square foot shell, and 1,200 square foot office
suite, and the continued construction and sale of the three remaining office suites.
After discussion, the Board recommended that Staff draft a Letter of Intent between the WEDC
and T. W. Snider& Associates with the following guidelines:
1. The incentive package would have a maximum value of$205,000 over a four year period
of time.
2. Upon completion of the parking, utilities, and receipt of a certificate of occupancy (CO)
for the first shell structure (4,800 square feet) in addition to completion of the first unit
(1,200 square feet), $85,000 of the $205,000 package would be funded. The remaining
balance of the incentive package would be$120,000.
3. After all units within the first office suite are sold and following the sale of all units
within the second structure, WEDC would fund an additional $40,000 (1/3 of the
unfunded package). The same scenario would follow the completion of the third and
fourth structure,
4. No incentives will be paid after the fourth anniversary of the CO for the first shell
structure.
5. WEDC would require that T.W. Snider & Associates provide documentation that each
unit sells for a minimum of$150,000.
The Board also directed Staff to research the purchase and use of adjoining property to the north.
MOTION: A motion was made by Mitch Herzog and seconded by Merrill Young to
authorize the Executive Director to execute a Letter of Intent to enter into
a Performance/Incentive Agreement between the WEDC and T. W. Snider
Associates with a maximum value of$205,000.
No further action was taken as a result of discussions held in Executive Session.
WE DC—Minutes
March 10, 2008
Page 5 of
ADJOURNMENT
With no further business, President Mar in Fuller adjourned the WEDC Board meeting at 7:25
a.m.
__Vhf ,
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director
AFFIDAVIT STATING CONFLICT OF INTEREST
STATE OF TEXAS
COUNTY IN
COMES NOW, Y iP1(e (Mfiant), of law l— ageand upon being
first duly sworn alleges and states the following:
çCrP.
Affiant is a member of the f 1
�� of theCityWy
lie,� of Texas, which is
presently considering or soon will be conside ` g t kino action (via vote or decision) which concerns a
business entity or real estate,to wit: -- _ , to which the affiant has a
substantial interest, on the basis of the following:
Ownership of 10% or more of the voting stock or shares of the business entity; or
Ownership of either 10% or more, or $1 ,000 or more of the fair market value of the
business entity; or
_ _ F Funds received by the affiant from the business entity exceed 10% of the affiant's gross
income for the previous year; or
- - Ownership of a Legal or equitable interest in subject real estate with (said interest) having a
fair market value of$2,500 or more; br
1 Is related to a person(in the first degree, by consanguinity or affinity, as determined under
Chapter 5 73, Government Code), who has a substantial interest as such term is defined in
Subsection 171.002 of the Local Government Code.
e.
Affiant further acknowledges that they are required to abstain from further participation in the matter, if,
a) In the case of substantial interest in a business entity the action on the matter will
have a special economic effect on the business entity that is distinguished from the effect
on the public; or
b) the case of a substantial interest in real property, it is reasonably foreseeable
that an action on the matter will have a special economic effect on the value of the
property, distinguishable from its effect on the public.
Provided however, that such abstention shall not be required if a majority of the members of the above
named governmental body are likewise required to file, and do file, affidavits of similar interest on the
same official action.
FURTHER AFFIANT SAITH NOT
F
Affiant
Subscribed and Sworn before me the undersigned notary public, by the above named 1 e RAL EZ,_bis
i day ofNi4-0, , 2006.
f � '
Notary Public f4 +* , Motor Public,State of Texas
My Commission� pit
Revised 1199 = = x
��. 'yame
,1,6 --- �