12-19-2007 (WEDC) Minutes c
Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Wednesday, December 19, 2007—6:00 A.M.
Inwood National Bank—Conference Room
200 South Highway 7 —Wylie, Texas
CALL TO ORDER
Announce the esnce o oun
President Fuller called the meeting to order at 6:00 a.m. Board Members present were: John
Yeager, and Merrill Young.
Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry Harris.
Ex- fficio Board Members John Mondy and Mindy Manson were 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 November 30, 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 November 30, 2007 Minutes of the WEDC Board of Directors
Meeting. The WEDC Board voted 3 — FOR and 0 —AGAINST in favor of
the motion.
ITEM NO. --Consider and Act Upon Issues Surrounding Approval of the November 2007
WEDC Treasurer's Report.
Staff indicated that there was a minor discrepancy between the Balance Sheet and the WEDC
sub ledger in the Land Inventory account. President Fuller asked that the WEDC Treasurer's
Report be tabled until this discrepancy could be corrected. Mr. Fuller also reminded staff that he
would like to have a meeting with the Auditors before their final report.
MOTION: A motion was made by Merrill Young and seconded by John Yeager to table
the November 2007 WEDC Treasurer's Report. The WEDC Board voted
—FOR and 0—AGAINST in favor of the motion.
ITEM No. 3 —Consider and Act Upon Issues Surrounding an Ad Valorem Tax Abatement
Sales Tax Reimbursement Agreement Between the WEDC, City of Wylie, Gr+e n ay-
Spring ,Ltd.,Gr en a r-Columbia, L.P., and Gre nway- ylie,L. P.
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December 19,2007
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Staff presented a draft of an Ad Valorem Tax Abatement & Sales Tax Reimbursement
Agreement between Greenway-Springs, Ltd., Greenway-Columbia, L.P., and Greenway-Wylie,
L.P. (hereinafter Greenway), the City of Wylie, and the WEDC. In review, Greenway-.Springs
owns the 15 acres south of Tractor Supply. Greenway-Wylie owns the two undeveloped pad
sites in front of Home Depot. Greenway-Columbia owns the property on F.M. 544 on which a
new strip center is being constructed(in front of the old Carlisle building). In anticipation ofthe
Ad Valorem Tax Abatement between the City and Greenway, the Wylie City Council created
Reinvestment Zone #6 on 11=1 -07 in addition to Guidelines and Criteria governing tax
abatement guidelines. Further, on December 1 ith the Wylie City Council approved the
Agreement as it related to the abatement. Staff believes this document to be in its final form,
pending Board approval.
As presented by staff, the incentive package utilizes a combination of ad valorem tax abatement
and sales tax reimbursements to offset costs associated with the environmental remediation of a
15.72 acre site within the 27.83 acre Reinvestment Zone#6. The impacted area, which is owned
by Greenway-Springs, Ltd., is the site of a landfill previously utilized to dispose of plastic
shavings which encased reclaimed copper wiring. The plastic wiring itself and its state of
deterioration creates the requirement that Greenway enroll the site into the Texas Commission on
Environmental Quality's (TCEQ) Voluntary cleanup Program (VCP). The estimated cost has
been estimated and capped at 2 million. While a Final Certificate of Completion from the
TCEZ VCP may be less costly to obtain than the established cap, that figure will not be known
until the remediation is bid and more importantly completed. The inability to establish a total
cost at this time is based upon the manyvariables involved in a remediation project of this scope.
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Greenways will fund all remediation costs up front and be reimbursed for those expenses over a
10-year period based upon the increased taxable value and new taxable sales within the Zone.
While the primary goal of the Agreement is to create the opportunity for commercial
development on the Greenway-Springs site by remediating the same, the Zone has been
expanded to other Greenway properties in the area. The expanded area includes the Greenway-
Columbia and Greenway-Wylie sites. The reasoning behind expanding the subject area is to
create more opportunity to generate the taxes necessary to compensate Greenway for the
remediation. If the Zone was limited to the Greenway-Springs site, the projected
abatement/reimbursement would account for approximately one-third of the actual costs.
The 10-year, 80% tax abatement will be applied to all improvements of real property within the
Zone. The existing value of real property within the Zone is $3,583,728 (Base Value). Only the
valuation exceeding the Base Value will be subject to the abatement. In addition to the
abatement, staff is recommending to the WEDC Board of Directors a sales tax reimbursement
program. Presented for your review is a 1-cent reimbursement for the Greenway-Springs tract
and a -cent reimbursement for the balance of development within the Zone. The Springs tract
will receive an increased sales tax reimbursement based upon the overall goal of the program
being to develop that site. Further, the greatest amount of increased property value sales tax
receipts will be generated from the Springs tract, thus incentivizing Greenway to develop the site
as soon as possible.
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December 19,2007
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Staff stressed that the key to this program is that it is 100% performance based. Greenway must
pay for all rernediation costs up front. Should Greenway not develop the area to its greatest
potential, or more realistically should the retail market not support the aggressive delivery of
new and expanded facilities/services within the next 10 years, Greenway bears all the risk of not
being reimbursed to the greatest extent possible.
Based upon delivery dates provided by Greenway, staff indicated that the site could be
developed to capacity by 2012. With phased-in delivery dates for development up to that point,
the Zone will support cumulative new value of$20,081,984 which will create abated taxes over
the same period of $871,151. Potential sales taxes reimbursed over the same period are
projected at $1,162,125 providing for a combined potential incentive of$2,033,276 ($2,000,000
cap in place). Ad valorem and sales taxes received (adjusted for the abated and reimbursed
taxes) over the same 10-year period are projected at$4,555,063.
Staff also presented Exhibit C which provides the City/WEDC great latitude in reviewing and
determining whether expenses incurred by Greenway are reasonable and necessary to the project.
Staff recommended that the WEDC Board of Directors authorize the WEDC Executive Director
to execute an Ad Valorem Tax Abatement & Sales Tax Reimbursement Agreement between the
City of Wylie, WEDC, Greenway-Springs, Ltd., Greenway-Columbia, L.P., and Greenway-
Wylie, L.P.
MOTION: A motion was made by John Yeager and seconded by Merrill Young to
authorize WEDC Executive Director to execute an Ad Valorem Tax
Abatement & Sales Tax Reimbursement Agreement between the City of
Wylie, WEDC, Greenway-Springs, Ltd., Greenway-Columbia, L.P., and
Greenway-Wylie, L.P. The WEDC Board voted 3 — FOR and 0 —
AGAiNST in favor of the motion.
Staff requested that the Board postpone discussion of Item 4 and Item 5 to ,follow Executive
Session
EXECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 6:26 a.m.
I. Consider and Act Upon Issues Surrounding a Letter of Intent Between the City of Wylie,
WEDC, and Direct Development as Authorized in Section 551.087 (Economic
Development Negotiations) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
II. Consider and Act Upon Issues Surrounding a Letter of Intent Between the WEDC and the
Kansas City Southern Railway Company to Purchase 0.3055 Acre Located on Cooper
Drive as Authorized in Section 551.072 (Real Property) of the Local Government Code,
Vernon's Texas Code Annotated (Open Meetings Act).
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December 19, 2007
Page 4 of 5
Consider and Act Upon Issues Surrounding Economic Development Negotiations 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).
RECONVENEINTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:21 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 City of Wylie, WEDC, and
Direct Development.
MOTION: A motion was made by John Yeager and seconded by Merrill Young to
authorize President Fuller to execute a Letter of Intent between the City of
Wylie, WEDC, and Direct Development. The WEDC Board voted 3 —
FOR and 0—AGAINST in favor of the motion.
No further action was taken as a result of discussions held in Executive Session.
} ITEM NO. — 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 and seconded by Merrill Young to
table Item No. 4 until the next regularly scheduled Board meeting. The
WEDC Board voted 3 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. — 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 and seconded by Merrill Young to
table Item No. 5 until the next regularly scheduled Board meeting. The
WEDC Board voted 3 —FOR and 0—AGAINST in favor of the motion.
ADJOURNMENT
With no further business, President Marvin Fuller adjourned the WEDC Board meeting at 7:24
a.m.
41/04(41 aa,
Marvin Fuller, President r
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December 19, 2007
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ATTEST:
Samuel D.R. Satterwhite
Executive Director
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