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05-31-2016 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Tuesday, May 31, 2016—6:30 A.M. WEDC Offices—Conference Room 250 South Highway 78—Wylie, Texas CALL TO ORDER Announce the presence of a Quorum President Marvin Fuller called the meeting to order at 6:30 a.m. Board Members present were Todd Wintters, Demond Dawkins and John Yeager. Ex-officio members City Manager Mindy Manson and Mayor Eric Hogue were present. WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner and Sr. Assistant Angel Wygant. CITIZEN PARTICIPATION With no citizen participation, President Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the April 21, 2016 Minutes of the Wylie Economic Development Corporation(WEDC) Board of Directors Meeting. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to approve the April 21, 2016 Minutes of the Wylie Economic Development Corporation. The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO.2—Consider and act upon approval of the April 2016 WEDC Treasurer's Report. MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to approve the April 2016 WEDC Treasurer's Report. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. ITEM NO. 3— Consider and act upon approval of EDC 2016-1 Budget Transfer. In the FY 2015-16 Budget, the WEDC budgeted $2,000 for utilities. With the unanticipated utility expenses associated with 710 Business Way, expenditures have exceeded this amount by $1,827.28. Staff anticipates a credit from Atmos Gas in the amount of$377.44 bringing the net overage to$1,449.84. Anticipated expenses through the end of the Fiscal Year are estimated at $1,000 which will bring the overage to approximately $2,500. Staff proposed reducing Incentives by $2,500 to offset the increased expenses within the Utilities account. WEDC—Minutes May 31, 2016 Page 2 of 4 Staff recommended that the WEDC Board approve Budget Transfer request EDC 2016-1 in the amount of$2,500. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to approve Budget Transfer Request EDC 2016-1 in the amount of$2,500. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. ITEM NO.4— Consider and act upon issues surrounding a Real Estate Contract between WEDC and FBC Wylie. Presented for the Board's review was a survey of the FBC property located at 111 N.Ballard Street with the WEDC under contract to purchase the lot from FBC Wylie. Staff explained that the survey showed the adjacent building to the north, owned by Mr. Anthony Boyd, encroaching onto FBC property by approximately 120 square feet (an area of 4.5' x 26.7'). While WEDC counsel is researching options,it is unlikely that the WEDC can require Mr.Boyd to move any portion of his structure and further the WEDC will most likely be required to convey its interest in the affected property upon platting at some point in the future. Staff believes the only available options are to exercise our rights under the contract to terminate or to close on the property. The Board reviewed its purpose for getting the FBC property under contract being an effort to influence future development along Ballard Street. From a redevelopment approach, should the WEDC close on the FBC property, staff will continue to approach Mr. Boyd in an effort to acquire his property and combine the two lots. For the short term, there has been discussions surrounding the paving of the property to provide additional downtown parking with that decision to be made at a future date. Staff believes that the ability to control the FBC lot with the ultimate goal of acquiring Mr. Boyd's property, far overrides the impact of the Boyd encroachment. Board Members Dawkins, Yeager, Fuller, and Wintters all commented/agreed that the encroachment does not change the purpose for which this property is being acquired. Staff recommended that the WEDC Board authorized staff to proceed with closing on the purchase of the property in question from FBC Wylie. MOTION: A motion was made by John Yeager and seconded by Todd Wintters to proceed with closing on the purchase of the property by the WEDC from FBC Wylie. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 5 — Staff Report: reviewed issues surrounding WEDC Performance Agreements, FY 2016-2017 WEDC Budget Process, 605 Commerce, ICSC 2016 and regional housing starts. WEDC—Minutes May 31, 2016 Page 3 of 4 WEDC Performance Agreement Summary Attached for the Board's review was a summary of all outstanding Performance Agreements including: Ascend Custom Extrusion, All State Fire Equipment, B&B Theatres Operating Company, Clark Street Development, Dank Real Estate,Exco Extrusion Dies, FLM Development, Freudiger Holdings, Getset, KREA Acquisition, Patna Properties, VIAA Properties, Von Runnen Holdings, Woodbridge Crossing and the Wedge Corporation. Sales tax reimbursement reports are attached to the Performance Agreement Summary for Woodbridge Crossing and CSD Woodbridge. Inventrust (owners of Woodbridge Crossing) is eligible to receive up to $6 mm in sales tax reimbursement through September 2021. Approximately $3.51 mm has been reimbursed through April 2016. CSD has received $148,993 in sales tax reimbursements, along with a $100,000 infrastructure assistance grant, and is eligible to receive up to a cumulative $1.1 mm through February 2024. FY 2016-2017 WEDC Budget Staff will present the first draft of the FY 2016-2017 WEDC Budget at the June Board Meeting. A final budget will need to be developed by July and presented to the Wylie City Council for review. 605 Commerce Attached for the Board's review was a spreadsheet tracking all activities with W&M Environmental for FY 2014-15 and FY 2015-16. W&M has prepared Phase I&II reports for Mann Made,K&M,Business Way, is processing the VCP application for the Commerce property, and processing the Municipal Setting Designation through the City. ICSC RECon Staff provided an oral presentation of the meetings and activities that occurred during the ICSC RECon conference and reported that this was likely Wylie's most active and productive year for this conference. Staff is actively following up with numerous contacts generated during the show and will keep the Board apprised of lead follow up. Regional Housing Starts Forty-one homes were permitted in Wylie for the month of April 2016. Sachse, Lavon, Murphy and Inspiration permitted a combined total of forty-two homes over the same period. EXECUTIVE SESSION Recessed into Closed Session at 6:52 a.m. in compliance with Section 551.001, et.seq. Texas Government Code, to wit: WEDC—Minutes May 31, 2016 Page 4 of 4 Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). Consider the sale or acquisition of properties located near the intersection of: • Cooper Drive & State Highway • Highway 78 &Ballard Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). • Project 2015-12a • Project 2016-lb RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 7:05 a.m. and took no action. ADJOURNMENT With no further business,President Fuller adjourned the WEDC Board meeting at 7:05 a.m. 1 Marvin Fuller,President ATTEST: gtlig Samuel Satterwhite,Director