06-27-2008 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meting
Friday, June 27, 2008— 6:00 A.M.
Inwood National Bank—Conference Room
200 South Highway 78 —Wylie, Texas
CALL TO ORDER
Announce the presence of a Quorum
President Fuller called the meeting to order at 6:02 a.m. Board Members present were: John
Yeager,Merrill Young, Mitch Herzog, and Chris Seely.
Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry Harris.
Ex-Officio Board Members Mayor Eric Hogue and Mindy Manson were present.
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 June 2,2008 Minutes of the WEDC
Board of Directors Meeting,
MOTION: A motion was made by Chris Seely and seconded by John Yeager to
approve the June 2, 2008 Minutes of the WEDC Board of Directors
Meeting. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 2 — Consider and Act Upon approval of the June, 2008 WEDC Treasurer's
Report.
Staff pointed out that the entries from the Savage transaction had been posted on the May
Treasurer's Report, President Fuller questioned the location of the entry for Savage moving
expenses. Staff indicated that the committed reimbursements of$254,357 for moving expenses
had not been posted to the `Deferred Charge' account in error. Mr. Fuller asked that the moving
expense be amended to accurately reflect the Savage transaction prior to presentation of WEDC
financials to Council.
MOTION: A motion was made by Merrill Young and seconded by Mitch Herzog to
approve the June 2008 WEDC Treasurer's Report as amended. The WEDC
Board voted 5 —FOR and 0—AGAINST in favor of the motion.
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June 27,2008
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ITEM NO. 3 — Consider and Act Upon Issues Surrounding Approval of the FY 2008 —
2009 WEDC Budget.
Staff presented for review the first draft of the FY 2008 — 2009 WEDC Budget. Staff proposed
approval of the Budget at the July 18th Board meeting, filing the same with the City Secretary on
August 5th, and presenting the Budget to the City Council on August 12 .
Within Salaries, the WEDC Executive Director recommended a salary increase for the WEDC
Administrative Assistant to $41,122. Staff continued that the increase is commensurate with
current duties and comparative personnel within the City of Wylie. City Manager Manson
concurred with this evaluation of the salary range for the WEDC administrative personnel as it
relates to the salary range and responsibilities of the Executive Assistant to the City Manager.
Staff also recommended an annual increase of $520 to the Car Allowance of the WEDC
Administrative Assistant to offset increasing fuel costs.
Staff projected FY 2008 — 2009 sales tax receipts of $1, 00, 00 which would represent an
estimated 3.7% gain over FY 2007 .20 . Staff also presented a $396,045 fund balance as of
10-1-08 to be utilized foi FY 2008 — 2009 WEDC programs. Budget highlights as presented by
staff were $528,327 for Incentives, $335,827 for Debt Service, $400,000 for Land, and
Advertising/Community Development of $101,000. Board Member Seely inquired as to any
funds identified to assist with commercial redevelopment/paving of alley improvements between
Ballard and First Streets. Staff indicated that even though discussions for those redevelopment
efforts are preliminary, $25,000 can be placed within the Streets & Alleys Account to plan for
that project.
MOTION:; A motion was made by Merrill Young and seconded by Mitch Herzog to
table the approval of the FY 2008 —2009 WEDC budget until July 18, 2008.
The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4 — Consider and Act Upon the Purchase of Sporting Tickets to be Utilized for
WDC Marketing Activities.
Beginning in FY 2006—2007, the WEDC Board authorized the expenditure of funds to purchase
a one-quarter ticket package for the Dallas Stars and Dallas Mavericks. In years past, the tickets
have been purchased by the ticket holder in July with the WEDC funding its one-quarter share in
October at the beginning of the fiscal year. This year the season ticket holder has requested that
the WEDC fund its share at the time payment is due so that the expense is not carried on their
books until October.
Staff presented an invoice for 22 games (11 Stars and 11 Mavericks) at a cost of$12,936 which
includes Gold parking. The invoice also reflects a prepaid credit of$6,588 for prepaid playoff
games which were not utilized in the 2008 season.
Staff stated his belief that this has been a successful program for the past two years and
recommends that the WpDC continue its funding. Groups entertained for the 2008 season were
Greenway Investment Company, Direct Development, The Retail Connection, Hunt Properties,
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June 27, 2008
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Herzog Development, Expedition Capital Partners, Savage Precision Fabrication, Extruders
Division of Atrium Companies, Texas Spectrum Electronics, Heim erger Associates, Shafer
Properties, Global Innovation, Henry S. Miller, and RLK Engineering.
Staff recommended the expenditure of$8,004 for one-quarter of a season ticket package for the
Dallas Mavericks and Dallas Stars 2008 season.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the expenditure of$8,004 for the purchase of sporting tickets to be
utilized for WEDC marketing activities. The WEDC Board voted 5 — FOR
and 0—AGAINST in favor of the motion.
ITEM NO. — Consider and Act Upon Issues Surrounding the Lease of WEDC Facilities
Located at 207 Industrial Court.
Staff was informed by Mr. Marty Anderson that in June Prime Kuts will cease operation located
at 207 Industrial Court. Mr. Anderson anticipates that he will continue to occupy the property
until the end of October per his agreement with WEDC so that he will have ample time to
dispose of the industrial freezer units occupying approximately half of the facility. If Mr.
Anderson is able to sell the freezers on the property before the end of October, staff expects that
the WEDC will take possession of the property before the end of October.
Currently, the primary expense for the property is the note payment of $2,539.59 per month. As
the facility is leased, the WEDC will lose its tax exempt status creating an estimated liability of
$6,170.04 per year, or$514.17 per month. The total expenses for the property will be $3,053.76
per month $8.05 per square foot at 4,550 square feet),
The WEDC receives $2,600.00 per month from Almost Home 6,24 per square foot) for the
5,000 square foot building located at 211 Industrial Court. The annualized price per square foot
for the property is $6.24. X Factor currently leases 210 Industrial Court for $2,000 per month or
$6.15 per square foot.
Staff stated that it believed it would be difficult to achieve$3,053.76 per month for the Anderson
building. Also, recovering cost on the investment may be difficult being that WEDC interest
was primarily in the land and not the structure.
The Board inquired whether staff had any estimated cost of remodeling the facility after Mr.
Anderson vacated the property. Staff recommended that any action on remodeling be postponed
until a user is located and specific needs are identified. The Board elected to take no action at
this time.
ITEM NO. 6 — Consider and Act Upon the disposition of WEDC Property Located at the
southwest corner of Springwell Parkway and F.M. 544.
Staff reported that the WEDC is currently under contract with Alpay Living Trust for the
purchase of approximately 6,631 square feet to close on July 31, 2008, The purchase price is
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June 27, 2008
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$25,000. Viewpoint Bark is under contract to purchase a 50,000 square foot pad from Direct
Development located at the northeast corner of Woodbridge Crossing. The proposed pad is
adjacent to the above 6,631 square foot parcel. Viewpoint's due diligence period expires at 5:00
p.m. on June 30th.
The question of the sales price to Viewpoint must be addressed. Staff has yet to determine the
purchase price for the pad Viewpoint is purchasing from Direct. It is safe to say though that it is
in excess of$15 per square foot. At $25,000, the WEDC purchase price is $3.77 per square foot.
To review, the only reason Alpay required compensation for the 6,631 square feet is because of
the loss of income from the billboard. Conversely, the only reason the WEDC was willing to
pay the$25,000 was to control the billboard, more specifically the removal of the billboard.
Staff is comfortable with the sale of the parcel to Viewpoint for $25,000 plus closing costs
because our primary goal of controlling the billboard has been satisfied. Further, once the
WEDC closes on the property, additional revenue will be generated from the existing users or
From Direct Development in their utilization of the billboard to promote Woodbridge Crossing.
Staff has already confirmed Direct Development's willingness to rent the billboard.
In case the Board is uncomfortable with selling this land for less than market, staff pointed again
to the WEDC's primary interest in acquiring the tract. Staff could recommend an increase to
$50,000 or$7.54 per square foot.
Regardless of the sales price and date upon which the WEDC and Viewpoint close, staff
preferred that the WEDC retain all rights to the billboard and commit to the removal of the same
at the earliest date at which a certificate of occupancy is issued to viewpoint Bank or Target.
Staff recommended that the Board of Directors authorize the WEDC Executive Director to
negotiate the sale of ±6,631 square feet located at the northeast corner of F.M. 544 and
Springwell Parkway to Viewpoint Bank for $50,000 plus closing costs, and further retaining the
WEDC's right to the billboard until the time at which a certificate of occupancy is issued to
either Viewpoint or Target, whichever comes first.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
authorize the WEDC Executive Director to negotiate the sale of±6,631
square feet located at the northeast corner of F.M. 544 and Springwell
Parkway to Viewpoint Bank for $50,000 plus closing costs. The WEDC
Board voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 7—Staff Update: Review Staff Activities and Ongoing WEDC Projects.
Kansas City_Southern RailwayCompany (KCS): While KCS has agreed to all changes the
WEDC presented in May,r, staff has yet to receive the final contract from KCS for the purchase of
property on Cooper Drive. Staff also has lunch scheduled with the Director of Operations for the
Wylie Classification Yard which should be a positive step in developing a local relationship.
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June 27, 2008
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Savage Precision Fabrication,_Inc.: There have been no issues slowing Savage down in their
dirt work. The project continues to flow smoothly.
2 Industrial Court: A2Z Machine will not be locating to the WEDC facility on Industrial
Court due to legal issues with their parent company. Staff has contact a local company seeking
additional square footage and will be showing the facility on the 2 `.
Premier Plaza: Staff has finally received the Flood Study from Nathan D. Meyers Consulting
Engineers. After review of the study by Heimerger and Associates and City Engineer Chris
Hoisted, staff will send the study into FEMA for their review.
WEDC Board Appointment: Councilman Merrill Young will be considered for reappointment to
the WEDC Board of Directors for a three year term on June 24th. Staff will update the Board as
to the outcome of the appointment at the Board meeting.
Best Western: The Manager for the Best Western stopped by the Chamber and indicated that
they would be opening in July.
Kohl's: While Kohl's was scheduled to go to Committee on June 20th, final consideration of the
Wylie site was rescheduled for July 1st because of vacation schedules. Staff will update the
Board via email as final consideration of the Wylie site is made by the Kohl's Executive
Committee.
Personnel: Staff reported that he will be out of town July 2.nd though 9t . Gerry Harris will be
available each day at the WEDC office and can be reached by cell at 972/533-3656.
EXECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 7:06 a.m.
I. Consider and Act Upon Issues Surrounding the Purchase of Property Located near the
Intersection of Birmingham Street and Industrial Court as Authorized in Section 551.072
(Real Property) of the Local Goverment Code, Vernon's Texas Code Annotated (Open
Meetings Act).
IL Consider and Act Upon the Sale of WEDC Property Located near the Intersection of
Birmingham Street and Industrial Court as Authorized in Section 551.072 (Real Property)
of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act).
RECONVENE E INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:22 a.m.
No action was taken as a result of discussions held in Executive Session.
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June 27, 2008
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ADJOURNMENT
With no further business, President Marvin Fuller adjourned the WEDC Board meeting at 7:22
a.m.
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Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director