06-17-2016 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, June 17, 2016—6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
C'ALI, TO ORJ)FR,
Announce the presence of a Quorum
President Marvin Fuller called the meeting to order at 6:31 a.m. Board Members present were Todd
Wintters and Mitch Herzog.
Ex-officio member City Manager Mindy Manson was present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner and
Senior 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 May 31,2016 Minutes of the Wylie Economic
Development Corporation (WEDC)Board of Directors Meeting.
MOTION: A motion was made by Todd Wintters and seconded by
Mitch Herzog to approve the May 31, 2016 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 3 —FOR and 0—AGAINST
in favor of the motion.
ITEM NO.2—Consider and act upon approval of the May 2016 Treasurer's Report.
Staff informed the Board of an error in the Special Services section of the Treasurer's Report. An expense
in the amount of$1,800 described as 'Lot Survey- 111 N.Ballard' should have been described as `TOPO
Survey - Alanis Property'.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to approve
the May 2016 WEDC Treasurer's report as amended. The WEDC Board voted 3 —
FOR and 0—AGAINST in favor of the motion.
ITEM NO.3— Consider and act upon issues surrounding the election of WEDC officers.
The Wylie City Council recently reappointed Mr. Marvin Fuller and Mr. Mitch Herzog to a three-year
term as Members of the Wylie Economic Development Corporation Board of Directors. The appointees
are to be sworn in by City Secretary Carole Ehrlich.
WEDC—Minutes
June 17, 2016
Page 2 of 6
On an annual basis and following the selection of WEDC Board Members by the Wylie City Council,
the WEDC elects officers for the upcoming year. Provided for Board review was Section V—Officers
of the WEDC By-laws. Section V provides for the selection of Officers and the duties of the same.
President Fuller informed the Board that he had spoken with Board Member John Yeager and Mr.
Yeager indicated he would be willing to serve another term as Board Secretary. Mr. Fuller inquired as
to the interest of Board Members to continue in their current roles as officers and all indicated they were
willing to continue in their current capacity.
In 2015-16 the WEDC Board of Directors elected the following officers:
Marvin Fuller President
Mitch Herzog Vice President
John Yeager .Secretary
Todd Wintters Treasurer
MOTION: A motion was made by Todd Wintters and seconded by Mitch Herzog to elect the
following individuals as WEDC officers for FY 2016-2017: Marvin Fuller -
President, Mitch Herzog - Vice President, John Yeager - Secretary, and Todd
Wintters-Treasurer. The WEDC Board voted 3—FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 4— Consider and act upon the establishment of a Regular Meeting Date and Time for
the WEDC Board of Directors for FY 2016 -2017.
Section 4.07 of the WEDC By-laws states that the President of the Board shall set a regular meeting date
and time at the beginning of his/her term. With officers elected via the last Action Item, the WEDC
President is required to establish the Regular Meeting date/time.
President Fuller asked the WEDC Board Members if the current Regular Meeting time/dates, being the
third Friday of each month at 6:30 a.m., was still convenient for all Board Members or if there needed
to be a change. All Board Members present preferred to keep the date/time the same.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to set the
Regular Meeting date/time for the 2016-17 WEDC Board Meeting as the third
Friday of each month at 6:30 a.m. The WEDC Board voted 3 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 5— Consider and act upon issues surrounding the FY 2016-17 WEDC Budget.
Staff presented the first draft of the FY 2016-17 WEDC Budget. Staff made an oral presentation covering
the line items of the budget. Issues discussed are as follows:
WEDC—Minutes
June 17, 2016
Page 3 of 6
Revenues:
• Staff proposed total revenues of$4.7 mm which included $2,467, 295 in sales tax, a beginning
fund balance of$665,686, sale of WEDC property at $1,350,000, infrastructure reimbursement
of$115,758, and lease income from WEDC properties of$69,000.
Expenses:
• Seventy-five pad folios will be purchased at a cost of$2,000 (lasting two years)for presentations
made to public groups including Leadership Wylie and ICAN and well as distribution to WEDC
clients;
• The WEDC will continue its partnership with the Library in funding $5,000 for maintenance and
new materials;
• Of the sixteen incentive agreements the WEDC will be funding in 16-17, seven projects will be
at the end of the specific commitment for that program representing a cumulative $278,173 that
will not be required to be funded in 17-18. Also,the KREA budgeted H&M Tax Reimbursement
was amended from $105,000 to $78,750 to reflect a nine-month funding period opposed to 12
months. Total Incentives budget are $1,399,607 which includes $545,410 in Future Projects.
• Advertising was presented with a total budget of$62,850 which included $18,600 for a 4Most
Business Program complimenting the BRE Program. Staff commented that some monies within
the Advertising Budget need to be reallocated to increase a Regional Marketing Initiative which
was presented with only a $10,000 budget. Board Member Herzog commented that regional
marketing has not received as much attention as necessary in terms of a budget commitment and
that the $10,000 that the WEDC has budgeted in the past was not an effective use of resources
for the task being attempted to accomplish. Board Member Herzog further directed staff to bring
back a budget amount which is more realistic and can begin to accomplish the goal of promoting
the Wylie community in terms of business opportunities and quality of life.
• $5,500 has been allocated within Training for the Assistant Director to take three classes toward
his Economic Development Accreditation.
• $2,500 was allocated within Dues to join the DFW Marketing Team.
• The Linduff/Edge Note will move into principal &interest payments totaling $204,719.
• Based upon the imminent sale of WEDC property, $1,000,000 has been allocated to principal
reduction within Debt Service.
• Within Land, $250,000 has been budget for acquisition, $8,366 has been budgeted for closing
costs, and $70,500 budgeted for real estate commissions.
• Within Streets & Alleys $331,300 has been budgeted for pad site infrastructure improvements
and $60,000 for downtown parking improvements. However, the Board indicated that even
though money has been allocated, staff is to bring back an Action Item for consideration of the
downtown parking issue.
• The WEDC will continue funding Interdepartmental Assistance of$5,000 for accounting services
from the Finance Department.
Staff recommended tabling Budget consideration following Board input and will submit a final budget
document in July.
WEDC—Minutes
June 17, 2016
Page 4 of 6
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to table
discussion of the WEDC Budget until the next WEDC Board Meeting. The WEDC
Board voted 3 —FOR and 0—AGAINST in favor of the motion.
DISCI'S:SION ITEMS
ITEM NO.5— Staff Report: reviewed issues surrounding WEDC Performance Agreement Summary,
signage for WEDC pad sites, 605 Commerce, Von Runnen Holdings, demolition of WEDC properties,
Patna Properties, and regional housing starts.
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 were 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.
Sisnase for WEDC Pad Sites
Currently promoting WEDC pad sites on Highway 78 is a single-sided sign adjacent and parallel to the
highway. Staff is somewhat unhappy with the visibility and is having a duplicate sign made to be
installed in a V-shaped configuration with improved site line from north and south bound traffic.
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.
Von Runnen Holdings
A copy of an email from John Von Runnen was attached for the Board's review.
Hi Sam,
I was just thinking about how thankful I am for you and the Economic Development Committee. It is
such a blessing to have the funds you guys gave to us. I just want to make sure you know how thankful
we are! Thank you for helping make our business more successful!
WEDC—Minutes
June 17, 2016
Page 5 of 6
Demolition of WEDC properties
Intercon has completed demolition of the Mann Made and Exco properties. Intercon is waiting until the
site is dry to grade it properly. Demolition of the remaining six structures will begin on or about July 1.
Patna Properties
Dr. Tanvir Ahmed will complete construction of his 4,283 square foot building located on Kirby St. on
or about July 1st. While personally occupying approximately 3,100 square feet, Dr. Ahmed has already
secured a tenant for the remaining 1,183 square feet with the lease space being finished out
simultaneously with Dr. Ahmed's offices.
Regional Housing Starts
One hundred one homes were permitted in Wylie for the month of May 2016. Sachse, Lavon, Murphy
and Inspiration permitted a combined total of thirty-four homes over the same period.
EXECUTIVE SESSION
Recessed into Closed Session at 7:18 a.m. in compliance with Section 551.001, et.seq. Texas Government
Code, to wit:
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
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act).
• Project 2016-la
• Project 2016-lb
• Project 2016 6a
Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act).
• Performance Evaluation of WEDC Personnel
Jason Greiner and Angel Wygant left the meeting at 8:06 a.m. and returned at 8:20 a.m.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:21 a.m. and took no action.
WEDC— Minutes
June 17, 2016
Page 6 of 6
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:21 a.m.
141
Marvin Fuller,President
ATTEST:
-28L
Samuel Satterwhite,Director