06-05-2001 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
June 5,2001
•
Board Members Present:
Gary Bowland
Marvin Fuller
Kevin St. John (departed at 8:17 a.m.)
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
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 June 5, 2001 in the City Council Conference Room located
at 2000 Highway 78 North, Wylie, Texas.
The meeting was called to order by President John Yeager at 7:00 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the May 16, 2001 Regular
Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Gary Bowland and seconded by Merrill Young to
approve minutes for the May 16, 2001 Regular Board of Directors Meeting
of the Wylie Economic Development Corporation. The WEDC Board of
Directors voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 2 — Consider and Act Upon Approval of the November, 2000 Treasurer's
Report for the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to
approve the November, 2000 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 — Consider and Act Upon Approval of the December, 2000 Treasurer's
Report for the Wylie Economic Development Corporation.
WEDC—Minutes
June 5, 2001
Page 2
MOTION: A motion was made by Merrill Young and seconded by Gary Bowland to
approve the December, 2000 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. 4 — Consider and Act Upon Approval of the January, 2001 Treasurer's Report
for the Wylie Economic Development Corporation.
Board Member Fuller questioned staff as to status of the Extruders rental income for the month
of January. Staff acknowledged the absent deposit and committed to bring the Board a full
explanation at the next Board Meeting. Mr. Fuller also indicated that the contingent liability of
$55,000 in the notes section of the Balance Sheet has been released and should be removed from
the financial report.
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young
table consideration of the January, 2001 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. 5—Consider and Act Upon Approval of the February,2001 Treasurer's Report
for the Wylie Economic Development Corporation.
The WEDC Board requested that the notes section of the Treasurer's Report be corrected and the
status of the rental income be resolved prior to consideration of any further financial reports.
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young
table consideration of the February, 2001 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 6 — Consider and Act Upon Issues Surrounding WEDC Drainage Participation
on the Carlisle Site.
Staff reviewed with the Board a discussion regarding drainage improvements at the time the
Carlisle Coatings & Waterproofing, Inc. (CCW) Loan Agreement was signed. The WEDC
Board was informed that significant drainage improvements at the southeast corner of the site
would be necessary and that at some point in the future CCW would be approaching the WEDC
for additional assistance related specifically to drainage improvements. The cost estimate
provided at that time was $10,000. There was an informal consensus as to assistance in the
future for drainage improvements to the CCW site.
WEDC—Minutes
June 5, 2001
Page 3
Staff also reminded the Board that the open drainage pipe that currently extends from the
Extruders site has compounded the drainage problem. The WEDC approved Extruders drainage
fully anticipating that Extruders would expand to the CCW site.
Staff presented to the Board a formal request from CCW for $13,157 in assistance for drainage
improvements. CCW presented the Board with a final cost estimate of $21,358 for the
improvements. CCW indicated that the previous estimate of$10,000 had been provided without
performing a complete analysis.
Board members St. John and Bowland voiced strong objections to the conveyance of any
additional funds in excess of $10,000. The belief that EDC incentives are never enough was
emphasized and that CCW must take final responsibility for the change in circumstances.
Staff commented that had the WEDC been provided with a more precise cost of the drainage
improvements initially, a greater financial commitment would have been discussed.
Furthermore, the WEDC decision to allow open drainage onto the site by the Extruders has
created the majority of the drainage problem. Staff recommended that the WEDC agree to fund
$13,157 in assistance to CCW.
MOTION: A motion was made by Marvin Fuller and seconded by Merrill Young to
approve financial assistance to Carlisle Coatings & Waterproofing, Inc. in
the amount of $13,157 to assist with drainage improvements on the
Carlisle site. The WEDC Board of Directors voted 3 — FOR and 2 —
AGAINST in favor of the motion.
ITEM NO. 7 — Consider and Act Upon Issues Surrounding the Salary of the Executive
Secretary to the Office of the City Manager.
Staff requested that the WEDC Board of Directors authorize the expenditure of an additional
$1,671.24 annually for services provided to the WEDC by the Secretary to the City Manager.
The additional monies are being requested to offset withholding being paid at the sole expense of
the employee. The original agreement for services by the WEDC is $1,000 per month.
Currently, the employee is paying all withholding amounts.
Board members St. John and Fuller indicated that the original agreement was for an amount not
to exceed $1,000 monthly. Should the employee desire to decrease the monthly salary in an
amount equal to the current withholdings, the WEDC Board will not oppose the restructuring of
the salary.
WEDC—Minutes
June 5, 2001
Page 4
MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to
deny the request for additional compensation for services rendered by the
Secretary to the City Manager. The WEDC Board of Directors voted 4 —
FOR and 1 —AGAINST in favor of the motion.
ITEM NO. 8 — Consider and Act Upon Issues Surrounding Financial Assistance to Quality
Steel Erectors,Inc.
Staff presented the WEDC Board of Directors with a request from Gary and Diane Keen of
Quality Steel Erectors for a grant/loan of$25,000 for the purchase of the facility currently leased
by Quality Steel. Staff indicated that no value would be added to the tax roles from the
grant/loan. The only result of WEDC participation would be to assist Quality Steel in purchasing
their facility.
Board member St. John indicated that the retention of existing business is one of the primary
charges of the WEDC. Furthermore, past WEDC project have principally focused on new
business attraction and this project represents an opportunity to assist a local business which has
dedicated itself to the Wylie community for many years. Board member Bowland, while
agreeing with Board member St. John, indicated that the WEDC focus on this project should be
in the form of a loan and not a grant.
Board member Fuller commented that the request is too broad and should include a detailed
business plan and any loan/grant should be collateralized by a second lien on the existing facility.
MOTION: A motion was made by Kevin St. John authorizing a loan to Gary and
Diane Keen in the amount of$25,000, payable over a 6-year period at 2%
interest, with no second lien on the facility required. The motion failed for
lack of a second.
Board member Fuller instructed staff to inform Gary and Diane Keen that the request be
resubmitted with a detailed business plan and that staff perform a more thorough analysis of any
additional value to be added to the tax roles.
ITEM NO. 9 — Consider and Act Upon Issues Surrounding Financial Assistance to
Advanced Display Systems, Inc.
Staff informed the WEDC Board that an Amarillo technology company has requested financial
assistance from the WEDC to purchase a facility located on Business Way in Wylie. Staff
further informed the Board that Advanced Display Systems had an agreement with an EDC under
which the commitments made by Advanced Display were not delivered.
WEDC —Minutes
June 5, 2001
Page 5
Based upon the previous relationship with an EDC, staff determined to bring no recommendation
to the WEDC Board of Directors.
ITEM NO. 10 — Consider and Act Upon Issues Surrounding the Purchase of Property
Generally Located Near the Intersection of Martinez and Kristen Lane.
Staff updated the WEDC Board of Directors regarding negotiations between the WEDC, Holland
Hitch and Raynor Garage Door Company. With counter offers from the respective owners in
hand, the WEDC Board of Directors authorized the WEDC Executive Director to continue
negotiations under the following parameters: purchase price for property owned by Raynor not
to exceed $320,000; purchase price for property owned by Holland Hitch not to exceed
$340,000.
MOTION: A motion was made by Gary Bowland and seconded by Merrill Young
authorizing the WEDC Executive Director to continue negotiations with
Raynor Garage Door Company and Holland Hitch for the purchase of
approximately 25 acres. The WEDC Board of Directors voted 4 — FOR
and 0—AGAINST in favor of the motion.
ITEM NO 11 —Citizen Participation.
There being no citizen participation, President Yeager proceeded to Item No. 12.
ITEM NO. 12—Adjourn
There being no further business,the meeting was adjourned at 10:00 a.m.
ohn Ye er, esident
Attest:
Samuel D.R. Satterwhite
Executive Director