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08-16-2017 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Wednesday, August 16, 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 6:32 a.m. Board Members present were John Yeager, Todd Wintters, Demond Dawkins and Bryan Brokaw. Chris Hoisted, Assistant City Manager attended representing Ex-Officio Member Mindy Manson, City Manager; and Keith Stephens, Mayor pro tem attended representing Ex-Officio Member Mayor Eric Hogue. WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Angel Wygant. CITIZEN PARTICIPATION President Fuller welcomed citizen guest Lynn Grimes. Ms. Grimes stated that, in her opinion,the WEDC Board is the strongest Board the City of Wylie has and encouraged the Board to stand firm and not make any changes to the slate of Officers as it currently exists. President Fuller thanked Ms. Grimes for her comments and welcomed both Chris Hoisted, Assistant City Manager and Mayor pro tem Keith Stephens. With no further citizen participation, President Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the July 31, 2017 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 July 31, 2017 Minutes of the Wylie Economic Development Corporation as amended. The WEDC Board voted 5 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 2 —Consider and act upon approval of the July 2017 WEDC Treasurers Report. Staff called the Board's attention to the removal of the T.W. Snider Performance Agreement from Deferred Outflows due to the Board's decision to void the Performance Agreement. The Board confirmed their support for Mr. Snider's projects and affirmed their interest in considering participation in future projects. WEDC—Minutes August 16, 2017 Page 2 of 5 MOTION: A motion was made by John Yeager and seconded by Bryan Brokaw to approve the July 2017 Treasurers Report for the Wylie Economic Development Corporation. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 3 — Consider and act upon issues surrounding a Real Estate Sales Contract between the WEDC and Patsy Jo McMillan and Margaret McMillan for the purchase of property located at 105 N. Jackson Street. Staff reviewed the status of the previously ratified Real Estate Sales Agreement and the subsequent Amendment extending the time frame by 90 days and requiring demolition of the structures located at 105 N. Jackson prior to closing. Demolition is currently scheduled to begin on August 21,2017 and should be complete within 2 days. The contract calls for completion of demolition by August 24th, the expiration of the Feasibility Period. Closing will occur no later than August 29, 2017. Staff recommended that the WEDC Board of Directors ratify the First Amendment to the Real Estate Sales Contract, and further authorize President Marvin Fuller to execute all documents necessary to effectuate closing documents necessary to purchase the property located at 105 N. Jackson Street. MOTION: A motion was made by Bryan Brokaw and seconded by Todd Wintters to ratify the First Amendment to the Real Estate Sales Contract, and further authorize President Marvin Fuller to execute all documents necessary to effectuate closing documents necessary to purchase the property located at 105 N. Jackson Street. The WEDC Board voted 5 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 4 — Consider and act upon American National Bank Loan No. 88157334 First Option to Renew and Extend. Staff reminded the Board that on July 31sY staff presented to the Board an Option to Renew and Extend based upon a 12-month extension at 4%. The actual rate per the Promissory Note was Prime plus 0.75%. Based upon the current agreement with Prime currently at 4.25%,the rate going forward beginning September 23, 2017 would be 5%. Staff informed the Board that following the last Board meeting, Staff contacted the American National Bank (ANB) Loan Officer and indicated that while it is not guaranteed that the WEDC will sell a lot associated with this loan in the near future, serious offers are currently being considered that would generate far in excess of the outstanding loan balance. ANB suggested that based upon our longstanding relationship, a recent$1 mm principal reduction payment, and the likelihood that the loan will be paid off prior to the next maturity date of 9-23- 18, a fixed rate of prime be established for the pending extension, to be set on or about 9-23-17. ANB clarified that an extension beyond 9-23-18 will be based upon Prime plus 0.75%. WEDC—Minutes August 16, 2017 Page 3 of 5 MOTION: A motion was made by Demond Dawkins and seconded by John Yeager to rescind the Action taken on July 31, 2017 pertaining to Loan No. 88157334 and authorize the WEDC Executive Director to exercise the First Option to Renew and Extend with a new maturity date of September 23, 2018 and a fixed rate at Prime to be established on or about September 23, 2017. The WEDC Board voted 5 —FOR and 0 —AGAINST in favor of the motion. ITEM NO. 5 — Consider and act upon issues surrounding the use of WEDC property for a public event. Staff informed the Board that a group comprised of Landon Winery and Good Neighbor Brews (both being Wylie businesses)had approached the WEDC to inquire as to the potential for utilizing the WEDC property on Jackson Street for an Octoberfest event. The property requested is the WEDC property on Jackson Street comprised of multiple lots totaling one acre with Marble Street to the north, Jackson to the west, Oak to the south and the Ballard Street alley to the east. President Fuller asked staffs opinion as to the benefit of this type of event to Wylie. Staff responded that the primary benefit was the draw into the Wylie Downtown area from outside the community which will help raise awareness and future business for the Downtown Merchants. Part of the permitting process requires the organizers to have extra City of Wylie Police working the event. Staff emphasized that the extra costs are borne by the Organizer, not the City of Wylie. Board Member Yeager stated he supported the event as long as the WEDC was named as an `additional insured' on the Landon Winery Liability Insurance policy, a 'Hold Harmless" agreement for the WEDC is executed, and the proper permits were in place with the City of Wylie. Demond Dawkins expressed concern that alcohol was to be consumed within a small designated area and this was being billed as a family event with kids' activities. Mr. Dawkins had concerns about that combination of activities. Bryan Brokaw commented that he felt the event would be good for the downtown merchants but believed the organizers were very late in the planning stages and therefore questioned the success of the event. Even so, he supported the activity and felt it might not be bad for the first year to be small due to the late planning. Todd Wintters expressed his confidence in City staff with existing permitting processes in place and voiced his support for the event. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to allow the WEDC property to be used for the event on the condition that the WEDC was named as an`additional insured' on the Landon Winery Liability Insurance policy, a 'Hold Harmless" agreement for the WEDC is executed, and proper permits were in place with the City of Wylie. The WEDC Board voted 4—FOR and 1 —AGAINST in favor of the motion with Board Member Dawkins voting against the measure. WEDC—Minutes August 16, 2017 Page 4 of 5 ITEM NO. 6—(Remove from Table) Consider and act upon issues surrounding the election of WEDC Officers. MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to Remove the Item from Table. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. As was presented at the 7-31-17 WEDC Board Meeting, the Wylie City Council recently reappointed Mr. Todd Wintters to a three-year term as a Member of the Wylie Economic Development Corporation Board of Directors. Mr. Wintters has been sworn in by the City Secretary's office. 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 your review is Section V- Officers of the WEDC By-laws. Section V provides for the selection of officers and the duties of the same. In 2016 the WEDC Board of Directors elected the current officers: Marvin Fuller President Todd Wintters Vice President John Yeager Secretary Demond Dawkins Treasurer Bryan Brokaw Board Member Staff recommended that the WEDC Board of Directors elect officers for the upcoming year. President Fuller thanked everyone for their support and informed the Board that if the Board felt strongly that he remains as President of the WEDC Board, he would agree to serve another term as President. MOTION: A motion was made by John Yeager and seconded by Todd Wintters to elect the following individuals as WEDC Officers for FY 2017-2018: Marvin Fuller—President,Todd Wintters—Vice President,John Yeager—Secretary,Demond Dawkins—Treasurer. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 7 — Staff report: Staff reviewed issues surrounding WEDC Performance Agreement Summary, Environmental Activity Summary, Highway 78 WEDC Pad Sites, 544 Gateway Property, and regional housing starts. No action was requested by staff for this item. ITEM NO. 8 — Discussion of issues to be placed on future WEDC Board Meeting agenda (no substantial consideration/ discussion allowed). WEDC—Minutes August 16, 2017 Page 5 of 5 No Board Members requested that an item be placed on future agendas. EXECUTIVE SESSION Recessed into Closed Session at 7:38 a.m. in compliance with Section 551.001, et.seq. Texas Government Code, to wit: Demond Dawkins left at 8:09 a.m. and returned at 8:11 a.m. Todd Wintters left at 8:40 a.m. and returned at 8:42 a.m. 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&Hwy 78 • Oak&Jackson • Steel &Regency • Brown&Hwy 78 • Hwy 78 & Birmingham Section 551.087 (Economic Development) of the Local Government Code,Vernon's Texas Code Annotated(Open Meetings Act). • Project 2017-l a • Project 2017-7a • Project 2017-7b • Project 2017-8a RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:47 a.m. and took no action ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 8:47 a.m. zkomppi 4 Marvin Fuller, President ATTEST: - --- fe_,Q.J5 Samuel Satterwhite, Director