02-10-2017 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, February 10, 2017—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
John Yeager, Todd Wintters, Demond Dawkins and Bryan Brokaw.
Ex-officio member Mayor Eric Hogue and City Manager Mindy Manson were present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner
and Senior Assistant Angel Wygant.
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 January 20,2017 Minutes of the Wylie
Economic Development Corporation (WEDC) Board of Directors Meeting.
Staff commented that a Board Member had inquired about the property address for the 111 N.
Ballard lot referenced in the Minutes. Staff informed the Board that the address is consistent with
the Collin County Central Appraisal District property listing but does not correlate with the
adjacent properties. To the north of the WEDC lot 103 Ballard (Boyd Recording Studio) and to
the south 105-A Ballard(Unique Optique). Board President Fuller requested that the record reflect
the physical location of the lot.
MOTION: A motion was made by Bryan Brokaw and seconded by
Todd Wintters to approve the January 20, 2017 Minutes of the Wylie
Economic Development Corporation. The WEDC Board voted 5 —FOR and
0—AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon a Second Amendment to a Performance Agreement
between the WEDC And REVA Hospitality Wylie, LLC.
On January 9, 2017, the WEDC approved a First Amendment to the Performance Agreement
between REVA Hospitality Wylie,LLC(REVA)and the WEDC for the development of a Holiday
Inn Express & Suites. The First Amendment extended the date by which REVA would acquire
WEDC—Minutes
February 10, 2017
Page 2 of 4
the 2.4 acres necessary to develop the project to February 10, 2017. Staff explained that among
other recent changes to the project,REVA is going to miss the required closing date now scheduled
for February 13th.
Additional changes have been presented to staff in this fast-paced project. The 98-room
development was only approved for 82 rooms by IHG (Holliday Inn Express & Suites parent
company). While construction cost has decreased by $1,280,000 ($80,000 per room), the
appraised value used in the WEDC cost-benefit analysis determining new property taxes generated
has not. In evaluating property taxes generated,the Appraisal District utilizes an income approach
which predominately utilizes sales data in combination with a market approach. Similar sized
projects in Allen ($4.3 mm), Frisco ($5.3 mm), and McKinney ($3.1 mm at 53,000 square feet)
were utilized for comparison. Staff utilized a $4,000,000 new tax value figure when calculating
taxes generated which remains a constant.
Based upon annual sales projections developed by IHG,$2,000,000 is still being utilized even with
16 less rooms. The taxable sales will determine the amount of hotel & motel occupancy tax
generated which is directly tied to infrastructure reimbursements. The only variation from the
original calculations is a reduction in thoroughfare impact fees of$11,520 based upon a per room
fee of$720. Based upon that change the breakeven point moves from 1.6 years to less than 1.7
years. Staff believes all other assumptions still hold true except for Real Property Improvements
now being $6,560,000 opposed to $7,840,000 which do not impact appraised value.
Even with the amount of time which has now been lost from when the project was originally
scheduled to close,REVA is not requesting an extension of the time required to receive a certificate
of occupancy which is December 31,2017. The maximum incentive of$450,000 will be reduced
to $350,000 should REVA finish the project after December 31st but before June 30, 2018 when
no incentive will be paid.
Staff recommended that the WEDC Board of Directors approve a Second Amendment to
Performance Agreement extending the date by which REVA Hospitality Wylie,LLC must acquire
title to property in Wylie to February 13, 2017 and further amending the number of rooms
referenced in the RECITALS to 82 and project cost to $7.92 mm.
President Fuller requested that, although the sales projections for the project remain unchanged,
he would like for staff to update the internal working documents detailing the projections and
economic impact of the project to reflect the updated figures reflected in the Second Amendment.
Board Member Wintters suggested modifying the date by which REVA Hospitality Wylie, LLC
must acquire title to property in Wylie to March 1, 2017 instead of February 13, 2017 to ensure
that ample time is given to accommodate any further delays.
MOTION: A motion was made by Todd Wintters and seconded by
John Yeager to approve the Second Amendment to a Performance Agreement
between WEDC and REVA Hospitality Wylie, LLC extending the date by
which REVA Hospitality Wylie, LLC must acquire title to property in Wylie
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February 10, 2017
Page 3 of 4
to March 1, 2017 and further amending the number of rooms referenced in
the RECITALS to 82 and project costs to$7.92 mm. The WEDC Board voted
5 —FOR and 0—AGAINST in favor of the motion.
President Fuller recessed the meeting at 6:46 a.m. for a 10-minute break to allow for the arrival of
Ryan Pittman,Attorney with Abernathy, Roeder, Boyd & Hullett, PC—Attorneys at Law.
The WEDC Board of Directors reconvened into open session at 6:56 a.m. Mr. Pittman had not
yet arrived. Mayor Hogue informed the Board that a State of the City luncheon was being held on
February 28, 2017 at 11:30 a.m. at the First Baptist Events Center and encouraged the Board to
attend if they were available. President Fuller called for an additional 5-minute recess at 6:59 a.m.
At 7:04 a.m. the WEDC Board of Directors reconvened into open session. President Fuller called
the meeting to order and welcomed Ryan Pittman, Attorney with Abernathy, Roeder, Boyd &
Hullett, PC—Attorneys at Law.
EXECUTIVE SESSION
Recessed into Closed Session at 7:05 a.m. in compliance with Section 551.001, et.seq. Texas
Government Code, to wit:
Section 551.071 (Consultation w/Attorney)of the Local Government Code,Vernon's Texas Code
Annotated (Open Meetings Act). A governmental body may not conduct a private consultation
with its attorney except:
(1) When the government body seeks advice of its attorney about:
(1) pending or contemplated litigation; or
(2) a settlement offer, or
(2) of a matter in which the duty of the attorney to the governmental body under the Texas
Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with
this chapter.
• Receipt of a complaint from Mark Winnubst and Latrice Andrews of Sheils
Winnubst, PC.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:06 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:06 a.m.
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February 10, 2017
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Marvin Fuller,President
ATTEST:
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Samuel Satterwhite, Direc or