07-28-2000 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Friday,July 28,2000
Board Members Present:
Gary Bowland
Marvin Fuller—arrived at 2:30
Kevin St. John
John Yeager
Staff Present:
Samuel Satterwhite, Executive Director
Ashley Gillean,Administrative Assistant
With notice of the meeting posted in time and manner required by law and a quorum of Board
members present, the Board of Directors of the Wylie Economic Development Corporation
(WEDC) met in Regular Session on July 28, 2000 in the Conference Room of the Wylie
Chamber of Commerce at 108A W. Marble, Wylie,Texas.
The meeting was called to order by President John Yeager at 2:17 p.m.
ITEM NO. 1 —Consider and Act Upon Approval of Minutes for the June 27, 2000 Regular
Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
approve the minutes of the June 27, 2000 Regular Board of Directors
Meeting of the Wylie Economic Development Corporation. The WEDC
Board of Directors voted 3 - FOR and 0 — AGAINST in favor of the
motion.
ITEM NO. 2 — Consider and Act Upon Approval of the June, 2000 Treasurer's Report for
the Wylie Economic Development Corporation.
MOTION: A motion was made by Gary Bowland and seconded by Kevin St. John to
approve the June, 2002 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 5 —FOR
and 0—AGAINST in favor of the motion.
ITEM NO.3—Discuss and Consider Issues Surrounding the Development of a Lone
Star Circuit Facility within Premier Business Park.
On June 27t, Mr. Jacoby met with Sage and Bray Construction, Codel,Inc., and Concrete
Walls, Inc. to interview for the position of general contractor and view facilities each has
Constructed. Mr. Jacoby should make a final decision by August 11`h.
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July 28, 2000
Page 2
Completion of Phase I is scheduled for July, 2001. Completion of Phase II is scheduled for
July/December 2002. Finally, completion of Phase III could take place between 2003 and 2005.
Phase III is contingent on the continued success of the circuit board industry and Lone Star
Circuits.
The above was provided as information only. No action was taken.
ITEM NO. 4 — Discuss and Consider Issues Surrounding the Development of a Carlisle
Coatings & Waterproofing,Inc.,Hardcast Division Facility within Premier Business Park.
Carlisle is currently considering a consolidation/relocation of Wylie, Oklahoma, and California
operation. Carlisle currently occupies 42,000 square feet near the intersection of Cooper Drive
and F.M. 544. Current requirements for a new facility are 100,000 — 125,000 square feet.
Expansion capabilities at the current Carlisle site is approximately 40,000 square feet.
Staff indicated that a new facility within Premier Business Park will cost approximately $4:7
million. The greatest benefit of the project, alibeit intangible,will be the removal of an industrial
site from a retail corridor. Board members instructed staff to aggressively encourage the Carlisle
relocation to Premier.
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ITEM NO. 5 — Discuss and Act Upon Issues Surrounding Assistance Provided to Savage
Precision Fabrication,Inc.
On February 2, 2000, the Wylie Economic Development Corporation (WEDC) Board of
Directors unanimously approved the expenditure of $10,000 to assist Savage Precision with
equipment purchased and further authorized the expenditure of an additional $5,000 as assistance
in the purchase of four additional Leadwell CNC Lathes.
On July 18, 2000, Mr. Scott Gardner contacted the WEDC to discuss an equipment problem and
determine potential alternatives. The air compressor used by Savage is located in a room not air
conditioned or ventilated from the outside. Due to the extreme temperatures, the compressor
overheats and the compressor must be shut down. Currently, a smaller, temporary compressor is
being used which could shut down at any time due to an inability to meet the load demand.
The first option was to construct a specific building to house the compressor which would be
vented at the top of the structure. This structure would be located to the north of the existing
Savage facility on a lot owned by Savage. The second option was to install a ventilation system
within the existing compressor room which would bring in outside air and ventilate the air within
the room to the outside. The second option seemed to be a more cost effective solution to the
problem.
Staff commented to Mr. Gardner that the balance of the grant to Savage could potentially be used
for this renovation/installation. Staff is aware that the final $5,000 is tied to the purchase of
additional Lathes, but it was also staffs recollection that the Board did not feel strongly about
the Phase II equipment purchase as a requirement of the final $5,000. Staff believes that Savage
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July 28, 2000
Page 3
is more than capable of handling this unforeseen expense. However, had the WEDC been aware
of the required ventilation system at the time the grant was made, the decision may have been to
convey the entire$15,000 at one time.
MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to
approve acceleration of the $5,000 payment to Savage Precision
Fabrication, Inc. The WEDC Board of Directors voted 4 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 6 — Discuss and Act Upon Issues Related to Inventory Taxes to Paid by
Moulding Associates,Inc.
On June 27, 2000 the Wylie Economic Development Corporation (WEDC) Board of Directors
approved the expenditure of±$20,000 over a 5-year period to Moulding Associates, Inc. (MAI)
as a refund of taxes paid as identified in a Loan Agreement between the WEDC and MAI. Also
in the same meeting, staff presented the issue that there was confusion as to what new value was
applicable to an abatement. Specifically, staff indicated that inventory was subject to abatement
with state law indicating the opposite. In discussion, the Board indicated that this was a mistake
made by staff and should be viewed as only that, a mistake. As confirmed by Mr. Steve
Clemons, WEDC counsel, the WEDC is not legally bound to compensate MAI for inventory
taxes not abated.
Staff believes there is a basic premise which should be considered. Because staff indicated
inventory was subject to abatement and that erroneous statement was not clarified and retracted,
MAI officials planned for inventory taxes to be subject to the abatement provisions as outlined in
the Loan Agreement.
MOTION: A motion was made by Gary Bowland and seconded by Marvin Fuller to
table the item until all Board members could be present for discussion.
The WEDC Board of Directors voted 3 —FOR and 1 —AGAINST in favor
of the motion. Kevin St. John voted against the motion to table.
ITEM NO. 7 —Discuss and Act Upon Issues Related to the FY 2000 — 2001 Budget for the
Wylie Economic Development Corporation.
Staff presented a budget for FY 2000—2001 for the Wylie Economic Development Corporation.
The WEDC Board of Directors requested a meeting to be scheduled on July 31, 2000 solely for
the purpose of discussing the presented budget.
ITEM NO. 8—Citizen Participation.
There being no citizens present, the Chairman proceeded to Item No. 9.
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July 28, 2000
Page 4
ITEM NO 9-Adjourn.
There being no further business, the meeting was adjourned at 3:50 p.m.
Jo Yeag/flj
, sident
Attest:
Samuel D.R. Satterwhite
Executive Director '
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