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09-07-2017 (Board of Ethics) Agenda Packet ittWylie Board of Ethics CITY f F WYLIE NOTICE OF MEETING Regular Meeting Agenda Wylie Board of Ethics September 7, 2017 - 6:00 p.m. Wylie Municipal Complex City Council Chambers/Conference Room 300 Country Club Road, Bldg. 100 Wylie, Texas 75098 William Martin Board Member Steven Wright ... . .... ............................. . ... Board Member Brian Atwood„ ..... Board Member Quincy Johnson... Board Member Tim Gilchrist ... ...... .............. .... .... ... Board Member Eric Yanou .. ... ................ .... ... .... Alt. Board Member Danyella Lanier............ .... ........ ... Alt Board Member Mindy Manson Board Liaison Carole Ehrlich .. ....... ........ ... Secretary In accordance with Section 551.042 of the Texas Government Code. this agenda has been posted at the Wylie Municipal Complex, distributed to the appropriate ne►rs media, and posted on the City website. ucwi,'.wylietxas.gov within the required time frame. As a courtesy, the entire Agenda Packet has also been posted on the City of Wylie website: www.s{ylietexas.Lag The Chairman and Board request that all cell phones and pub=ers he turned off or set to vibrate. ,Members of the audience are requested to step outside the Council Chambers to respond to a page or to conduct a phone conversation. The itilic Municipal Complex is wheelchair accessible. Sign interpretation or other special assistance for disabled attendees must be requested 48 hours in advance by contacting the City Secretary's Office at 9'2.516-6023 or TD 9"2.516,6026. CALL TO ORDER BUSINESS ITEMS 1. Consider and act upon the appointment of a Chair of the Wylie Board of Ethics for a term of July 2017 to June 30, 2018. Executive Summary Resolution 2015-11 was approved by the City Council April 14th, 2015 and established the Rules of Procedure for the Board of Ethics The Rules state that at the first meeting the Board shall select a Chairperson. September 7,2017 Wylie Board of Ethics Meeting Agenda Page 2 2. Consider and act upon the appointment of a Vice-Chair of the Wylie Board of Ethics for a term from July 2017 to June 30, 2018. Executive Summary Resolution 2015-11 was approved by the City Council April 14,h, 2015 and established the Rules of Procedure for the Board of Ethics. The Rules state that at the first meeting the Board shall select a Vice-Chairperson 3. Screen and consider action on Code of Ethics Complaint 2017-01. Executive Summary On August 8th staff received a formal complaint relating to alleged violations of the Code of Ethics as specified in Ordinance 2014-19 Per the established procedures. the complaint was reviewed by the City Attorney prior to review by the Board. 4. Consider approval of a Complaint or Inquiry Form Executive Summary Ordinance 2014-19, Section 7 (H) (2) states that complaints or inquiries are to be submitted in writing on a form approved by the Board ADJOURNMENT CERTIFICATION 1 certift. that this Notice of,tleetwg was posted on this day of September. 2017 at 5.00 p.►n. us required by law in accordance u.,th Section 551.042 of the Texas Government Code and that the appropriate news media was contacted. "is a coat-test. this agenda is also posted on the City of Wylie►rehsite: uww.Wv/tetexas.Wov. Carole Ehrlich,City Secretary Date Notice Removed .A. OF hip,.G t �; , • Board of EthicsIt AGENDA REPORT 1.r4h887--$ Meeting Date: September 7. 2017 Item Number: 1 Department: City Manager a-21'.Secretary's Use 04 ) Prepared By: Mindy Manson Account Code: Date Prepared: August 31, 2017 Exhibits: Resolution 2015-I 1 Subject Consider and act upon the appointment of a Chair of the Wylie Board of Ethics for a term of July 2017 to June 2018. Recommendation Motion to appoint as the Chair of the Wylie Board of Ethics for a term of July 2017 to June 2018. Discussion Resolution 2015-11 was approved by the City Council April 14th, 2015 and establishes the Rules of Procedure for the Board of Ethics. The Rules state that at the first meeting, the Board shall select a Chairperson and Vice- Chairperson to serve for a period of one (1) year. The Chairperson will preside over all meetings and perform all duties as required. The Vice-Chairperson assumes all duties of the Chairperson in their absence. (Rev 01.2014) Page I of 1 RESOLUTION NO.2015-11(4 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS ADOPTING RULES OF PROCEDURES FOR THE BOARD OF ETHICS WHEREAS, the City Council of the City of Wylie desires for all of its citizens to have confidence in the integrity, independence, and impartiality of those who act on their behalf in government;and WHEREAS, this proposed Rules of Procedure for the Board of Ethics sets out the guidelines by which the Board of Ethics will review and act on all inquiries; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS: SECTION I: The following rules shall govern the Board of Ethics: A. Creation and Membership The Board of Ethics(Board) is created by Wylie Ordinance 2014-19 and serves at the will of the City Council.The Board shall consist of five(5)regular members and two(2)alternates who will serve no more than one(1) term of two (2) years,with the exception of the inception to achieve staggered terms. The members will be resident citizens of the City and may not serve on any other Council appointed Board or Commission during their term. City of Wylie employees may not serve on the Board.The Board members are required to complete Open Meetings Act training and receive Certificate of Completion by the first ninety(90)days of first year appointment. B. Powers and Duties of the Commission In response to an inquiry, the Board shall issue advisory opinions and waivers on ethical issues arising under Ordinance 2014-19. In response to a complaint,the Board shall issue findings and recommendations to the City Council regarding alleged violations of Ordinance 2014-19. C. Officers The Board shall select from among its members in the first meeting(and at such other times as these offices may become vacant), a Chairperson and Vice-Chairperson to serve for a period of one(1)year. In the absence of both the Chairperson and Vice-Chairperson,the Commission shall elect an Acting Chairperson. D. Officers Duties The Chairperson shall preside over all meetings and perform all duties as required by law. The Vice-Chairperson shall assume all duties of the Chairperson in the absence of the Chairperson. E. Quorum A quorum shall consist of three(3)members. No matters may be handled without the presence of a quorum and all votes shall be by a majority of members present. Rrsolraion No.2015-11(R) Adopting Rules of procedures for The Board of Ethics F. Conflict of Interest Should any member of the Board feel they have a conflict of interest with an agenda item before the Board,they should fill out a conflict of interest form prior to the meeting and openly declare same before discussion proceeds. The member is thereby prohibited from discussing the item or voting on the question. G. Abstention Should any member of the Board choose to abstain from voting on any question before the Commission, where no declared conflict of interest exists, their vote shall be recorded as an affirmative vote in the official minutes of the City of Wylie. H. Agendas An agenda shall be prepared by the City Manager or his:her designee for each meeting of the Board. The agenda shall be posted as required by law seventy-two (72) hours prior to the meeting. 1. Meetings The Board shall meet as necessary at 6:00 pm in the Council Chambers of the Wylie Municipal Complex, unless noted otherwise. All meetings shall be open to the public, and the public is encouraged to attend. The unexcused absence of any Board member from three (3) consecutive regularly scheduled meetings, unless excused by the Board for good and sufficient reason as determined by the Board,shall constitute a resignation from the Board. All meetings shall be held in full compliance with the provision of state law, ordinances of the City and these rules of procedure. J. Minutes of Meetings Minutes of all meetings shall be kept by the City Secretary, and are subject to amendment and ratification by the Board at a regular meeting. The minutes of the Board proceedings shall show the overall vote or if absent or failing to vote,shall reflect that fact. K. Complaint or Inquiry Form Complaints or inquiries shall be in writing on a form approved by the Board. Complaints or inquiries shall be signed and show the home or business address and telephone number of the person who submitted it. The form shall contain a statement that must be signed and which states that, to the best of the person's knowledge, information, and belief formed after reasonable reflection, the information in the complaint or inquiry is true. The complaint or inquiry shall describe the facts that constitute the violation of the code of ethics in sufficient detail so that the Board and the person who is the subject of the complaint or inquiry can reasonably be expected to understand the nature of any offense that is being alleged. L. Complaint or Inquiry Process 1. The Board or its designee will not accept complaints or inquiries about actions that took place or became known to the complainant more than 6 months prior to the date of the filing of the complaint. Resolution No.2015-11(R) Adopting Rules of Procedures for The Board of Ethics 2. The Board or its designee shall notify the person who is the subject of the complaint or inquiry that a complaint or inquiry has been filed in a timely manner, but no more than five (5) days from the day the complaint or inquiry was filed. The notification shall include a copy of the full complaint or inquiry;a copy of any portion of Ordinance 2014- 19 that is alleged to have been or that may be violated; and the Board's rules for dealing with complaints or inquiries. The Board or its designee shall provide the subject of the complaint or inquiry with a copy of the complaint or inquiry before it provides copies to any other parties. 3. The distribution to the public of a complaint or inquiry prior to screening by the Board as required could harm the reputation of an innocent person and is contrary to the public interest; therefore,the public release of the complaint or inquiry shall be prohibited until the screening process has been completed. 4. Prior to the review by the Board,the City Attorney shall first determine: a. If the Board has jurisdiction over the alleged violation;and b. If the alleged violation, if true, would or would not constitute a violations of Ordinance 2014-19. M. Action of the Board The Board shall meet within thirty-one(31)days of receiving a complaint or inquiry to screen the complaint or inquiry.The Board shall schedule the hearing at a time that is reasonably convenient to both the person who submitted the complaint or inquiry and the subject of the complaint or inquiry. The Board may alter the time line upon the request of the subject of a complaint or inquiry for more time to prepare. 1. The Board may immediately dismiss a complaint or inquiry if a. The alleged violation is a minor or de minimis violation; b. The complaint or inquiry is, on its face, frivolous, groundless, or brought for purposes of harassment; c. The matter has become moot because the person who is the subject of the complaint or inquiry is no longer an elected officials or board/commissions member, d. The person who is the subject of the complaint or inquiry had obtained a waiver or an advisory opinion under Paragraph F of Section 7 of Ordinance 2014-19 permitting the conduct. e. The person committed the violation due to oversight and comes into voluntary compliance; f. The person who submitted the complaint or inquiry does not appear at hearing and if, in the opinion of the board, it would be unfair to the subject of the complaint or inquiry not to have the opportunity to examine the person. 2. If the Board dismisses a complaint or inquiry,the reason for dismissal shall be in writing, submitted to the person who submitted the complaint or inquiry, and made available to the public. Resotuuon No 2015-11(R) Adopting Rules of Procedures for The Hoard of Eth ies N. Hearings The board shall have hearings at meetings, which are open to the public, on complaints or inquiries which have not been dismissed pursuant to paragraph G of Section 7 or resolved under paragraph F of Section 7 of the Ordinance 2014-19.The Board shall allow any person who is the subject of a complaint or inquiry to designate a representative if he or she wishes to be represented by someone else, to present evidence, and to cross-examine witnesses. The Board shall give the person who submitted the complaint or inquiry and the individual who is subject of the complaint or inquiry sufficient time to examine and respond to any evidence not presented to them in advance of the hearing. Hearings will be conducted following the general guidelines listed below: 1. Introduction of agenda item by the Chairperson; 2. Report by the City Manager,City Attorney or designee; 3. Presentation by complainant; 4. Presentation by the individual,or their representative,who is subject to the complaint; 5. Questioning by the Board of the complainant;the individual,or their representative, who is subject to the complaint;witnesses with information relevant to the complaint; 6. Commission query of Staff; 7. Commission discussion and action pertaining to the issue of the hearing. 0. Evidence Only relevant evidence and testimony will be received. Information and other physical evidence should be submitted to the Chairman of the Board or designee prior to the meeting. Any Board member having new factual information regarding agenda items shall make that information known to all Board members. P. Deliberations and Findings Deliberations on complaints or inquiries are to be conducted in open session. Board members who have not been present for the hearing shall not participate in formulating a finding or recommendation. In determining their findings or recommendations,the Board shall: 1. Base a finding of a violation upon clear and convincing evidence. 2. Take into consideration the severity of the offense; the presence or absence of any intention to conceal, deceive, or mislead; whether the violation was deliberate, negligent,or inadvertent;and whether the incident was isolated or part of a pattern. 3. Have the option to issue an advisory opinion in response to a complaint or inquiry,in lieu of making findings and recommendations,where deemed appropriate. If the Board finds that a violation of Ordinance 2014-19 Section 5 or Section 6 has occurred, it shall make one of the following recommendations to Council: Resolution No 201S-I l(R) Adopting Rules of Procedures for The Board of Ethics I. If the Board finds that the accused has committed a minor violation,the violation was unintentional,and the accused fully cooperated with the investigation,the Board may issue a notice titled "Notice of Minor Violation" and shall state the findings of the Board. 2. If the Board finds that the accused has committed a major violation, acted intentionally, or failed to cooperate with the investigations, the Board may issue a notice titled"Notice of Public Censure",and shall state the findings of the Board. 3. If the Board feels that corrective action may be necessary, it must make its recommendations to Council in writing. All findings shall be in the form of a motion. A motion to approve any matter before the Board or to recommend any action shall require a majority favorable vote of the members present. Failure of the Board to secure a majority concurring vote to approve or recommend action shall be recorded in the minutes as a failed motion. SECTION 2: This Resolution shall take effect immediately upon its passage. RESOLVED this the 14th day of April,2015. ERIC HOGUE, Mayor ATTEST TO: CAROLE EHRLICH,City Secretary RcsoIulion No 2015-11(R1 Adopting Rules of Proccduras for The Board of Ethics 0. �1. OF Wy�� . . Board of Ethics gr, a �L_ iii .1887. 1' AGENDA REPORT Irdix n1 rtsx Meeting Date: September 7, 2017 Item Number: 2 Department: City Manager (C hr.Secretart 's se a�th) Prepared By: Mindy Manson Account Code: Date Prepared: August 31. 2017 Exhibits: N/A Subject Consider and act upon the appointment of a Vice-Chair of the Wylie Board of Ethics for a term of July 2017 to June 2018. Recommendation Motion to appoint as the Vice-Chair of the Wylie Board of Ethics for a term of July 2017 to June 2018. Discussion Resolution 2015-11 was approved by the City Council April 14t. 20I5 and establishes the Rules of Procedure for the Board of Ethics. The Rules state that at the first meeting the Board shall select a Chairperson and Vice- Chairperson to serve for a period of one (1) year. The Chairperson will preside over all meetings and perform all duties as required. The Vice-Chairperson assumes all duties of the Chairperson in their absence. (Rev 01/2014) Page 1 of 1 r,ct OF t1rytlt¢ .. i ti: Board of Ethics ir �._ - w. :.T' AGENDA REPORT ��.1887 I Meeting Date: September 7, 2017 Item Number: 3 Department: City Manager WinSecrelan 's Lse O�rrr, Prepared By: Mindy Manson Account Code: Date Prepared: August 31, 2017 Attorney letter; Complaint Exhibits: 2017-01 Subject Screen and consider action on Code of Ethics Complaint 2017-01. Recommendation • N/A i Discussion On August 8th staff received a formal complaint relating to alleged violations of the Code of Ethics as specified in Ordinance 2014-19. Per the established procedures, the complaint was reviewed by the City Attorney prior to review by the Board. The City Attorney is charged with determining the following: 1. If the Board has jurisdiction over the alleged violations; and 2. lithe alleged violation, if true, would or would not constitute a violation of Ordinance 2014-19. The City Attorney's review of the complaint is included within the agenda packet and states, in short, that their finding is that the allegations, even if true, would not constitute a violation of the Ethics Ordinance. Within 31 days of receiving the complaint or inquiry, the Board is required to meet to screen the complaint. At that time, the Board may immediately dismiss a complaint if: a. The alleged violation is a minor or de minimis violation; b. The complaint or inquiry is, on its face, frivolous, groundless, or brought for purposes of harassment; c. The matter has become moot because the person who is the subject of the complaint or inquiry is no longer an elected official or board'commission member; d. The person who is the subject of the complaint had obtained a waiver or an advisory opinion under Paragraph F of Section 7 of Ordinance 2014-19 permitting the conduct; e. The person committed the violation due to oversight and comes into voluntary compliance; f. The person who submitted the complaint or inquiry does not appear at the hearing and if, in the opinion of the board, it would be unfair to the subject of the complaint not to have the opportunity to examine the person. If the complaint is not dismissed, the Board may schedule a hearing which will procedurally follow the general guidelines listed in Resolution 2015-11, Section 1, N. Hearings. (Rev 01'2014) Page I of 1 ARBH ABERNATHYROEDER BOYD Hu LLETT EST 1876 MEMORANDUM TO: City of Wylie Board of Ethics DATE: August 29, 2017 FROM: Richard M. Abernathy and Ryan D. Pittman, City Attorneys RE: Review of Ethics Complaint submitted by Mr. Jal Dennis We are in receipt of a copy of the complaint submitted by Mr. Jal Dennis on August 8, 2017 (the "Complaint') pursuant to Section 7(G) of Wylie Ordinance No. 2014-19 (the "Ethics Ordinance"). The Complaint concerns an alleged "failure to disclose conflicts of interest and self-dealing" by Mr. Marvin Fuller, president of the Board of Directors of the Wylie Economic Development Corporation ("WEDC"), and Mr. Sam Satterwhite. executive director of the WEDC. in connection with a 2015 "incentive award" from WEDC to Panta Properties LLC. which owns or owned certain real property in Wylie. We have reviewed the Complaint as required under Section 7(G) of the Ethics Ordinance and Section 1(L)(4) of Wylie Resolution No. 2015-1 1(R) (the "Rules of Procedure") for the purpose of determining: "(l) if the Board of Ethics has jurisdiction over the alleged violation: and (b) if the alleged violation, iftrue,would or would not constitute a violation of[the Ethics Ordinance]." Consistent with the Ethics Ordinance and Rules of Procedure,our review was limited to the allegations made in the Complaint and the information submitted by Mr. Dennis in connection with the Complaint. For the purposes of this review, we have assumed that the allegations by Mr. Dennis in the Complaint are true; we have not reviewed any extrinsic evidence or otherwise conducted an investigation into the accuracy of the Complaint's allegations. That is the function of the Board of Ethics, if applicable.' Our analysis of the Complaint is summarized below. I. Complaint against Mr. Marvin Fuller The Board of Ethics has jurisdiction to consider the Complaint against Mr. Fuller because he is a "City Official" as that term is defined in Section I of the Ethics Ordinance.2 The Complaint against Mr.Fuller provides insufficient evidence to state a violation of any actionable 'See Ethics Ordinance§7(G)-(ll).Rules of Procedure a I(M)-(P). See Ethics Ordinance ti I (defining"City Official"to mean "a member of the City Council. an Administratite Board, or an Adt isory Board"and defining an "Administratit e Board"to include a board or other organized body "created as a non-profit economic development corporation by the City Council under the authority of the Development Corporation Act of 1979. as amended"): Ethics Ordinance§§'2. Page 1 of 2 provision of the Ethics Ordinance. For example, the Complaint states that Mr. Fuller vtias absent at the November 20.2015 meeting in which the WEDC Board of Directors voted to approve the"incentive award" to Panta Properties LLC.3 Mr. Fuller thus could take no"official action"with respect to such approval at the November 20. 2015 meeting. The Complaint goes on to allege that Mr. Fuller was "present in the discussions ofthe project prior to this approval and has been in all ofthe meetings since the approval of this aw and when this award was discussed." However,merely being present in meetings at which discussions of a project or transaction in which the City Official ma) have an interest does not, without more, state a violation of an actionable provision of the Ethics Ordinance. Accordingly,we find that the allegations of the Complaint against Mr. Fuller,even if true,would not constitute a violation of the Ethics Ordinance. II. Complaint against Mr. Sam Satterwhite The Board of Ethics does not have jurisdiction to consider the Complaint against Mr. Satterwhite because he is not a "City Official" as that term is defined in Section I of the Ethics Ordinance.' Accordingly.we find that the allegations of the Complaint against Mr.Satterwhite. even if true,would not constitute a violation of the Ethics Ordinance. Please let us know how we may be of further assistance to the Board of Ethics with respect to the Complaint.' Section 7(11)ofthe I thics Ordinance and Section 1(L)(1)ofthe Rules of Procedure prohibit the Board of l.thics from accepting "complaints or inquiries about actions that took place or became known to the complainant more than six(6)months prior to the date of tiling"of the complaint. Although some or all of the allegations in the Complaint relate to alleged conduct that occurred more than six months before the date of filing of the Complaint.Mr.Dennis states in the Complaint that"unti:1 located the(deeds of trust'sometime in'larch ot'2017'J,there was no concrete information for an ethics complaint." See Ethics Ordinance § I (defining "Official Action" to mean "(I) any aftirmath.e act (including the making of a recommendation)w ithin the scope of,or in 4 iolation of.an official's duties;or(2)any failure to act.if the official is under a duty to act and knows that inaction is likely to affect substantially an economic interest of the official"). It should be noted that Mr. Fuller is not subject to the conflicts disclosure and abstention requirements oiChapter 171 of the Texas Local Government Code. See Op. l'ex. Att'y Gen. No. JC-0338 (2001) (concluding that economic de►elopment corporation board members are not considered"local public officials"under Chapter 171 of the Texas Local Go%ernment Code and therefore are not subject to the requirements of that statute/. 5 Notably,the Complaint does not allege or pros ide sufficient e%idence to find that Mr.Fuller has or had a"financial interest'"or an"economic interest"in Panta Properties LLC,as that term is defined in Section 1 of the Lthics Ordinance See Ethics Ordinance§§ 1-2. See Ethics Ordinance§ 7(E)(providing that the Board of Ethics may consult ith the City Attorney regarding"legal issues which may arise in connection w ith this article and may request adh isory assistance from the City Attorney in conducting hearings on inquiries during any stage of the process"). Page 2 at 2 225432o RECEIVED AUG 0 8 2017 OFFICE OF THE CITY MANAGER Ethicsicom 8 afilednt • ionline via ema on 31 , u 2017 . To the best of my memory, knowledge, information, and belief formed after reasonable reflection,the information in this complaint is true. All attachments to the complaint filed by someone in Richardson are available online and I have a copy saved that I downloaded from the Internet. If a printed copy is desired, please let me know. I have attached all of the information available to me which formed my opinions other than the minutes and recordings of all EDC meetings which are available at the City and the EDC. All recordings and minutes have been emailed to me via City Email from Stephanie Smith and can be retrieved there if they were not stored at the EDC. Timelines are disclosed throughout the attached documents. In my opinion, until I located the Deeds, there was no concrete information for an ethics complaint. Everyone needs to understand that I am a concerned citizen, I am not an attorney nor do I profess to be an expert in municipal law. I seek for an honorable, ethical, transparent, independent and impartial city government and officials in which I personally can have confidence in. May all citizens be fearful of those in government who employ deflection to hide unethical behavior. Jal Dennis 811 Crestview Lane Wylie,TX 75098 .01.- 1- ilif; 972-977-6401 ei X Subject Ethics Complaint From. jalray@yahoo corn To. council@wylietexas.gov;eric.hogue@wylietexas.gov; ketth.stephens@wylietexas.gov;jeff.forrester@wylietexas.gov;diane.culver@wylietexas.gov; candy.arnngton@wylietexas.gov;toby.wallis@wylietexas.gov: david.dahl@wylietexas.gov;sam@wylieedc.com;mindy.manson@wylietexas.gov; carole ehrlich@wylietexas.gov;dpdawkins@verizon.net; bcbrokaw@gmail.com Mate. Monday,July 31, 2017,4:38:47 AM CDT Sirs, Please accept this ethics complaint against Mr. Marvin Fuller and Mr. Sam Sattenvhite. I tried to talk with Eric Hogue to share this information to avoid a public complaint and he will not return my calls . I then contacted Mr. Stephens and Mr. Forrester and was informed by Mr. Stephens they are uncomfortable meeting me at my office. I suspect it is because someone that does not know me is telling rumors and Iies about me. Attacking my character is a good way deflect attention from facts. Because I have no other avenue to bring following issue to light, the ethics complaint seems like the next best avenue. My request is for everyone to study the facts in this communication and to be fearful of those who spread lies and rumors to try and hide facts. Please forward this communication to all members of the Wylie EDC Board as I don't have all of their email addresses. I began following the activity of the Wylie EDC after a newspaper article in the Wylie News in 2006. I have attached that article for your review. I have read the Ethics Ordinance in place at our City (1 have attached a copy for your review). About 4 years ago I began listening to and storing the recordings of the meetings since they are held at a time which is not convenient for most citizens to attend and I also get and keep the minutes of all meetings. Their fiduciary duties should be taken eery serious. The complaint is "failure to disclose conflicts of interest and self-dealing." Please follow this link to the property records of a piece of property in Wylie Collin CAD - Property Search which is owned by Panta Properties. This is a building behind the Exxon at the corner of 544 and I-Iwy 78. A S30,000 incentive award was granted to this project and it was funded by Inwood Bank of Wylie. Collin CAD - Property Search Search for properties appraised by die Collin Central Appraisal District. If you search the Deed Records of this property on the Collin County Records site (I have attached these for your convenience) you will find the this property and the building are financed through Inwood Bank. One of the Notary's on the Deed is Mr. Fullers administrator at the Wylie Branch of Inwood Bank, Robin Gray, this tells me that the documents were processed in Wylie. There is a Deed in October 2015 when the construction of the building began and another in June 2016 when construction was finished, the best I can tell by looking at the timeline. Attached are the minutes of the WEDC meeting on November 20, 2015 which is the meeting when an incentive grant was voted on and approved by the Board of the Wylie EDC between Panta Properties and the Wylie EDC. Mr. Fuller was absent in this meeting but was present in the discussions of the 1/2 project prior to this approval and has been in all of the meetings since the approval of this award when this award was discussed. As per the bylaws he is a voting member as the President of the Board. Also as President of the Board, he has the opportunity to steer the activities of the Board. For your convenience, next I have attached the page from the Collin County Records which shows the dates of the filings and the lender of the property being discussed. Please notice the date of the award of the performance agreement and the date of the Deeds. My complaint is there has been no disclosure of conflict of interest by Mr. Fuller to the board who voted to issue an award to this project. Mr. Fuller is a bank representative and his job is to loan money and acquire banking clients for Inwood Bank. I have all of the recordings and minutes of the WEDC meetings prior to this incentive being approved through today. This incentive is still and ongoing activity by the Wylie EDC which makes it timely(within the 6 month time frame of the ordinance). The absence of disclosure of conflict of interest is disturbing. I have included Mr. Satterwhite in this complaint because he has informed me in the past that nothing goes through the Wylie EDC without his knowledge and at a cost of over$150,000 per year(plus benefits) I expect that he should know all details of all activities. I don't know that Mr. Satterwhite is or was aware of the conflict of interest but I would think that it would be one of his responsibility to know where funding for projects come from and with his close relationship with Mr. Fuller and Lawyers Title I see areas of concern. Lawyers Title rents office space to the Wylie EDC and processed the Deed and Loan documents that arc attached. I found and read a complaint which was posted online recently. This complaint was filed by someone in Richardson but it's contents are disturbing. The complaint seems to be valid as the supporting documentation is included. I have attached it for your review. All of this information together appears to me to disclose a pattern of activity. In my industry, when an incident happens one time and is corrected, it is viewed as an oversite or mistake_ When a pattern of activity occurs, there is a serious problem. Mr. Fuller has been the President of the Wylie Economic Development Board for over 20 years and is aware of the requirements of disclosure of conflicts of interest with this position as is Mr. Satterwhite. The attached documentation seems to show there have been issues with the nondisclosure of conflicts of interest over many years. I, as a local resident and a taxpayer, find it difficult to believe that this failure to disclose conflict of interest is an oversite. you can dismiss talk and actions but patterns never lie. All projects of the Wylie EDC are discussed in Executive Session prior to any vote being made in an open meeting and this project has been on the agenda many times prior to and after the incentive grant was voted on so there were lots of opportunities to disclose this conflict of interest. The Wylie EDC answers to the City Council. The City Council serves to protect the tax payers and tax dollars of our community. I hope the City Council takes this issue serious. I want a City Government that is transparent and operates with the highest possible morals, ethics and values. Respectfully, Jai Dennis 972-977-6401 jalray®yahoo.com 212 ' ECEIVED AUG 0 B tYl] OFFICE OF THE CITY MANAGER Collin County Website Information shown to me in January, 2017 . scanned this document for future review at that time . At that time , I was unaware you could see a deed online . Results Page 1 of 1 Records 11 to 201 of 54 0.03125 Seconds Certified from 02/1411974 through 12f1012016. ,.;e I v .f 3 V_..____ Drag a column header here to group by that column # Instrument .Image Ver Dat Name Role OtherName OtherRole Type BookType Legal # Rec Desc Lot 6 Blk ABkM 10/28/2015 PATNA INW'Jt L Pg 17 1015102840136481¢1. .r 2 35 33 PM PROPERTIES Grantor NATIONAL BANK cranter DEED TRUST Sub MARTINEZ L.0 s3 WYLIE REPLAT Lot6ElkABkM 10R8/2015 PATNA INWOOD Pg 17 j{7151028001364822} 2 35 33 PM PROPERTIES Grantor NATIONAL BANK Grantee h5 Fr= Sub MARTINEZ Li:: 43 WYLIE REPLAT Lot 6 Blk A Bk M :.ih/2:115 PATNA Pg 17 3 2015102800136480Q J^ Y 1 If.33 PM PROPERTIES Grantee OOAMA FALZIA •;rai'1. DE EC. Sub MARTINEZ LLC *3 WYLIE REPLAT Lath Blk A Bk M 6.16/2016 PATNA INW07P Pg 17 4 j016061600075492¢i " 8 55 36 AM PROPERTIES Grantor NA';[NAL DANK 'mote• DEED TRUST Sub MARTINEZ LLC s3 WYLIE REPLAT Lot 4 Blk B Bk J 10/2/1997 Pg 593 5 la 71002000838680 e Y la 00.00 PATNAIK Grantor GREAT WESTERN Grantee DEED TRUST LR Sub•LEGACY AM RAKESH FINANCIAL MILLS 04 PLANO... Lot 4 Blk B Bk 1 10/2/1997 PATNAIK TAYLOR PAUL Pg 593 6 )997100200083065Q - V 12 00 00 RAKESH Grantee HOMES LTD ".'Sr'i}, 3FFE. _a Sub LEGACY AM HILLS Y4 PLANO... Lot 4 6Ik B Bk.) 10/2/1997 HEARTLAND Pg 593 7 39971007000838660 e Y 12 00 00 PATNAIK Grantor MORTGAGE Grantee DEED TRUST LR Sub LEGACY AM RAKESH CORPD MILLS IA PLANO... 10/2/1997 PATNAIK NORWEST 8 19471002000133867Q Y r 12 00 00 RAKESH Grantor MORTGAGE INC Grantee ASSIGNMENT Lit AM Lot 4 Blk B Bk 3 10/2/1997 Pg 593 9 19971002000835690 Y r 12 00 00 PATNAIK Grantor LANK ONE ';rar,tee ASSIGNMENT LR Sub LEGACY AM RAKESH HILLS a4 PLANO... Lot 4 BIk B Bk) 12/302002 Pg 593 PATNAIK WELLS FARGO 10 200212300019+2420 a L2 00 00 RAKESH Grantor HOME MORTGAG Grantee DEED TRUST LR Sub LEGACY AM HILLS 44 PLANO . 1/6/2003 PATNAIK 1.1 2003010600002282Q) 1 12 00 00 RAKESH Grantee BANK ONE Grantor PEiFAsE LR AM tote Blk B Bk 1 1/7/2008 PATNAIK IPMORGAN CHASE Pg 593 12 j0080107_00.002a630>" r 1 56 O7 PM RAKESH Grantor BANK Grantee DEED TRUST Sub LEGACY HILLS a4 PLAN)} Lot 4 Blk B Bk 117/2008 PATNAIK Grantor "_'" HOMSTD Pg 593 17 j0080107000024550' 1 56:07 PM RAKESH }�'t DESG Sub LEGACY HILLS*4 PLANO 4/3/2001 PATNAIK 14 Z0010403226009030 e C 12 00 00 RITIK Child Parents BIRTH CERT VI AM Lat 2 Blk P 12/2/2013 PATNAIK PULTE MORTGAGE Rk 2012 Pg:385 15 7011170200159227G} Y B 15 43 AM R.AKESH Grantor LLC Grantee DEED TRUST Sub WATERFORD PARKS*9 ALLEN Lot 2 BIk P 16 2013120204159221Q} r 12/2/2013 PATNAIK Grantee PULTE HOMES Grantor DEED Bk 2012 Pg:385 8:15 43 AM RAKESH TEXAS L/P Sub WATERFORD PARKS a9 ALLEN 17 711i40607070053410 i v 6/2/2014 PATNAIK Child VURITY TRUPTI Parents BIRTH CERT 3:26:21 PM ANIKA RAMCHANDRA 18 Z0150203020011680 A. w 2/3/2015 PATNAIK Parents DAS SAIYASH Child BIRTH CERT 4 18 26 PM LUCY 19 Z0150203020011730} .1 Parents PATNAIK Parents CAS SHEVALLY Child BIRTH CERT 4:18 26 PM LUCY Lot 1t Blk C 3/11/2015 Bk H Pg 398 20 Z015031100026549¢1- r 11:16 16 PATNAIK Grantor 'hE1 MORTGAGE vraritee DEED TRUST Sub HUNTERS AM ROMAN CORPORATION GLEN NORTH 2 PLANO Page 1171 GI 1 tpill httn:.icountvclerlaecords.co.collin.tx.us.webinuuirv'results.asnx 12/29/2016 RECEIVED AUG 0 8 201? Online records shown` "`"' to me sometime in March of 2017 . This was the motivation to try and meet with Council Members Stephens and Forrester . ( First effort to file a complaint . ) 1'lSe 20151028001364810 10/28/2015 02:35:33 PM DT 1/7 GF#licto 1 T` ' f&10 CONSTRUCTION DEED OF TRUST RECORDATION REQUESTED BY: INWOOD NATIONAL SANK 7121 INWOOD ROAD DALLAS;TX 75209 WHEN RECORDED MAIL TO: IMV000 NATIONAL BANK 7521INWOOD ROAD DALLAS.,TX 7520E SEND TAX NOTICES TO: Patna Prepettlas LLC 3201 MONSTIE LANE PLANO.TX 75025 SPACE ABOVE THIS UTE IS FOR RECORDERS USE ONLY THIS DEED OF TRUST Is dated October 27,2015,among Pattie Properties LLC,whose address is 3208 MONETTE LANE, PLANO, TX 75025 rGLantor"); INWOOD NATIONAL BANK. whose address is 7621 INWOOD ROAD. DALLAS,TX 75209(referred to below sometimes as*Beneficiary"; and Gary L Tipton,whose addra.. Is 762E Inwood Road,Dallas,TX 75209(referred to below as"Trustee"). CONVEYANCE AND GRANT. Far ramble ac raldarodah.GNAW emcees to Truster in trust,with mown of ado for tel . :'r' . ... a Ssnedelery,Ere to0owing daelbed reel properly,lagether with mg mdetlng or subsequently eroded of dared Width" .. . .+Lnle d eas banes:and ag easements,name of way,end appansneneru;ell water end water rights;and Oa Other rights,royaibca.and Droab -. .,• - the reel property,Including with id lbnhtl7on suds rights es Grantor may have In it remote,all,gas,geothermal and abnder matters. "Real Property")located In COLUN County,Male of Texas: LOT 8. BLOCK A, OF IIOARTINEZ ADDITION, PHASE III, AN ADDITION TO THE CITY i 1"+'Lt �_ COUNTY,TEXAS ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLU i:" 7 sty F THE PLAT RECORDS OF COL.LIN COUNTY,TEXAS. L The Real Property or Its address Is commonly known es 815 S HWY 78,WYLIE, !. •.,98. Grander hereby absolutely assigns to Lander Cello known as eenaeoiary In this Deed of That)an of- �► end 'In end to ail prawnall l Cods ode Monad In Persons!Properly erde Rennp eats from the Prgpeny. to eddtlon,Gantor m -. THIS DEED OF TRUST,INCLUDING THE ASSORTMENT OF RENTS AND THE EECUIETY -,.,..- DI THE REFITS PROPERTY, IS OMEN TO SECURE (A) PAYMENT OF THE INDEBTEDNESS MO (B) PERFORMANCE•'ANY AND ALL 0 AT', UNDER THE NOTE. THE RELATED DOCUMENTS,AND THIS DEED OF TRUST. THIS DEED OF TRUST,IN, DING THE AWN r, : OF RBRTM AND THE SECURITF INTEREST IN THE RENTS AND PERSONAL PROPERTY,IS ALSO GIVEN 70 •r' ANY AND ALL•'GRANTOR'S OSUSATIONS UNDER THAT CERTAIN CONETRUCTTON LOAN AGiiI:BIBeT BETAISEN ORAMOR 'rt'- OF EVEN DA J i-,'- , ANY EVENT OF DEFAULT UNDER THE CONSTRUCTION LOAN AOREEIISNT,OR ANY OF THE _•• , , TO THOM,SHALL ALSO EV DEAN ENT OF DEFAULT UNDER THIS DEED OF TRUST. THIS DEED OF y •-•A i•• THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE. Ea epl as ateae tee pnm tiled In Nile Deed• T .. • ,'•• • .•' - esker ad meanie aeand by this Deed of Tara as they beans due,and ehal.lsicdy and in e away . . absgeaona under the name,that Dead of Tent and the Related Doarmeas. PURPOSE OF LOAN.The Nate In the amaot of 5704.701.00 - . 'to•...- In whole,-. •V.. linenried sttLnurrodsbape advanced or commirtsd by Lander to Grantor on Oaobar 27.2015 attire ••.. - .• of `y' •Granmr ),,..• atlmoniedoes rndpL CONStRUCTION MORTGAGE. This Deed I Trust lee -• .• -• r the• ••-- 'd Beaked 0334 and 2430E at the Urtlbnn Cannurelal Cede,an those,.than.hew been adopted by the ,of • AND OF THE PROPERTY. • ,• get•• .•. and we of Ste Prosody Mel be gowned by following Liz PelassNaa sod Um. Unlit the Ocanteno,of sn ' ,• . ,`,. roman In pos aeten and control of the Rowe; (2) use,opera.or menage the Pmpert:.and (3) -•• - . . •,y,. • '.. Daly to Maintain. Grenlor shall mama' the •- . . condition end promptly perform d repots,reptsceicenta,end maInt nm a nerasaary to preserve as vakte. ContpSattce With Enshoraoenar!Laws. R. and „ •-to Lender theta (1) Curing the period of Grantor's oweeelttdp of ttw Properly,Them hoe been no tai,..� ration, .._ ,treatment,deposal,release ar Saddened release of any Harendar Sabana,by any person on,under. .•.. .or from 'ef''*,• ) Grantor has no knowledge of,or mason 1e banana that there ha bean..seep►as proviome dtepaed"end manned ����iirr,,rr,,• Lender In weird. (a) any broach or vla eUon d any Fitvborenesdel Lawn, (b) any use.goaeteda4 •.. _. s.etmelt, L•- - name or threatened release of any Harardeus Dubstome en,ender. abod et tram the Peoperty by. . • tie or•-- -••u d the Piapety.or (C) my WOO or tvestmed idoatlain or dabae of any kind by�ry person mfsdng :�1- ,• • . (31 -.-•. as pestrloudy dhdased to end edunwledged by Lender In madam N)rrel then Candor nor any tenant.•• -. •yard the Property steal we,generate.menureduts,.tors,bvai deppee of or Meuse any Hatedano '7,�- ad, r from the Propely,end (b) any much=hay OM be cadged In aauplence with as appEw' 'cadre,solo. Owe,- .. •.•. sad oedtneruse,bdrndng without limitation al Envk Gander dea aulras Lander and its egerds to , .T •.- the- •- to rate such Mapenkes and mob,at Geocora amends.es Lander rney dicta appropriate'to• with thin exam of See Dead of Trust My Inepadlaes or WM mode by Larder sfesf De for Undies ••� ••• „• .. .... ._.-..... , •to aoos any resparudiy or IlabOty an the pert of Linder to Grantor or m my other peraan. • - .. a end warmness Caaakned toren We based on Grader's mass degauss In inves0gtling the Prppsety for Hazardous = busby (I) relwass and Waives tiny Mae Climb egatnei Lander for lideaady or eMdbuton In the . e vent ."k -• • • •.-t a other ruts under any each!BM and (2) agrees to indemnify,defend,end raid hand me L amar •-•.. "t• ad am - .. Ueettdes,damages,waiter.ifd mensal wool Lliedr may dboeiy or Indirectly numt.or Peter rend:bag •-�breaah .�'��sedkrr of the Deed of Trim or es a oonsenuenm of try use,gennrrdlan,manufadurs,storage. release R .red oeearteg prior to Granite ownastip a inners k the Prop/ty.whether or not the same woe or I lore.been • - ".'•Gorr:. The provisions of this section of the Deed of Trutt.bnardkrg the abegatlare to kdemNM and Ostend, the payrrent,TM lndapedneaa and the aedafsdan and remnreyanae of the lien of this Deed of Than and sluD not be '"- We of any Interest In Chit Ptopeny.whemr by tcradmrae or euhrsdee. We •a7 not arena,conduct or permit any rertmca nor rarnmlL perralt,or amen any warm;of or waste on or to TM- of the Property. Without Smiting the gormodity of the foregoing.Orantr wit not remove,cc grant to any other pay the - • . ,- any Mbar,mturals ltna egne d and gas),met day,merle ski.grovel orrock products without Le der%Prior written aransri I reetrldi00 wig not apply b eights and easements(such a gas and eft)not owned by Grrhtor ad of whlph Grarmr • Ma inhumed Larder In writing odor to Grantor's signing of ads Deed of Trust. • Removal of Improvements. Grantor sill not gereollit or remove are improvements from the Rod Property without Lender's oar vmmen cement. Al a aondtdoe to die rennovd or any I mprove/nem,Larder rimy leqube Gutter to ream monoemeetts sstidedory to Lander to replace such Impwamema Wet Pmprovamaw of et taut goudl value. • Lenders Right to Endf, Lender end Lender's aphis and WPtasentedvm may enter upon the Red Property at ell reasonable Amos to Moral b Larder',acmes ref to cowl the Red Property for purposes of Grnntos Co miltince with the tame and CatdDkrn of Ms Deed of Tnul Campdosee watt Gaemiw nbl iktutenaenbt. Grantor shed prorepuy comply MTh di laws.arataerraa,and mgulriane.now or haaehea to seed,d all gavemmmtd authollea applicable TO the ass or mummy of tea Property,Inducting without Arrnation.tit.Americus With Disabilities Act. Crane"may madaod in pond bath any such law,ordure,,or mgulallen end withhold rnmpasnoe during arty fl il 14 f & pi iIII , _ �$ i i i ili III Ijij$ . u a it a • $ Pl i 1.1i iiii : ;1 g -11ia fits • i` i i _ -,: ill y $ _i. 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It addition to the fights and remedies set fort above,with=pact la eA or any put of the Property,the Tnalee that have the anted t the full to at providedby nodal aids and Lender w shag Iwo the right to bndoee by a�eew, case either se in aoeordenco wan Substitute Mateo. Lends,at Lenders option.from tires to time,and more than once.may appoint in writing a simonises or eubedtrte trustee,with or without cows,inclwarg the regional/an,absence,death,Inability.tetrad or Wham to ad of the Trustee. The successor or abatttie tonne may be eppohted without ewer cocaine the resignation of the fanner bugles end without troy lamtsllty accept for the era iton end acknowledgment of the appalebnent by the banefdLry of this Deed of Trust- The successor or substitute trustee shalt Men succeed to aA rights,cbltgatons,end duke of the Trustee. This appchnbnere may be mode on Londe.behalf by the President,any Vice President.Secretary.or Cashier of Lender. NOTICES. Any lotto required to be elven under this Deed of Trust,Including without Tina atlon any nation of default end any notice of sets anal be given In writing,end Mal be effective when Wanly Named.when actually received by l lafaethrdls(unless*thereto required by law),when deposited with a Wotan uecoordnd overnight cooler,or,if noted,when deposited In the United Steles ruse.a and due, ecnEed or registerd real postage prepaid.dimmed to as addresses shown near the beginntrg of this Deed of Tent Any party may dame he addtsts for notices under this Deed of Tent by gable formal written nadce to the other parties.aperelyng met the ptapeee or the notice is to chime the partys address. Fcr notice pupates.Grantor anon to hamp Lander hdbneed et at times of Oraniora cumuli address. Undoes otherwba famed or requiem by tow,If them n nine time one Grader,any no glean by Lender to any Grafter is deemed to be nodes given to ell Grantors. DUE ON SALE-COHABIT BY LENDER..LENDER MAY.AT LENDERS OPTION.DECLARE IMMEDIATELY DUE AND PAY = YAU.SUMS SECURED BY THIS DEED OF TRUST UPON THE SALE OR TRANSFER.WITHOUT LENDER'S PRIOR WRiTTER CONSENT.OF "St* PART OF THE PEAL PROPERTY,OR ANY INTEREST IN THE REAL.PROPERTY. A'SALE OR TRANSFER'MEANS THE '1'T* REAL PROPERTY CR ANY RIGHT,TITLE OR INTEREST iN THE REAL PROPERTY:%ETHER LEGAL,BENEFICIAL OR L, VOLUNTARY OR INVOLUNTARY:WHETHER BY OUTRIGHT SALE,DEED,INSTALLMENT BALE CONTRACT,LAND CONTRACT. •••• I., _ FOR DEED,LEASEHOLD INTEREST.LEASE-OPTION CONTRACT.OR BY SALE,ASSIGNMENT,OR TRANSFER OF ANY BENEFICIAL IN OR TO ANY LAND TRUST HOLDING TTRE TO THE LIABILITY COMPANY,TRANSFER ALSO INCLUDES ANY CHANGE IN OW IE•- • MORE THAN TWENTY-FNE PERCENT (25%) OF THE VOTING STOCK. PARTNERSHIP INTERESTS OR UNN -. UTY COMP INTERESTS,AS THE CASE MAY BE OF SUCH GRANTOR. HOWEVER.THIS OPTION SHALL NOT BE .. -, - =' IF SUC DEMISE IS PROHIBITED BY FEDERAL tAW OR BY TEXAS LAW. MISCELLANEOUS PROVISIONS.The following miscellaneous d aneous provisions are a pa this Deed d Trout: Amendments. Tide Dead of Trust together with any um Related Doeatta,constitutes the entire • .. ., .and •of the. as to the mates col forth In this Deed of Test. No steretian of or amendment to this Deed• • .NSA be -. unless given in writing and signed try SW levy or parties sought to be charged or bound try the allamlbn orA rom II l Reports. the Property le hard for purposes other than Glamor's residence.G .. Le der adeed es as corned ttamrnnt of net operable income received hen the Property doling Grantor's Lender shag require. 'Nei operaarg income OM mean it cash receipts from the . . . '..t ... In connection with the oprata of the Property. Captlru H eadingt. Caption hor&gs In this Deed of Torn ere for aowenlenm. .. Tory and are not te Interpret or define the previsions of lids Deed of Trust. Merger. There shall be rm raga of the Interest or omen created by this Daod T any other In J or eareta In the Property et any limo held by or for the bend'of Lander In any capacity,without the r-. en . - Govendng Law. Res Deed of Toni will be governed by bdoral taw egg-, not preempted by federal law, the taws d the Sate of Tana mai d ard to its overacts of law. '�!''. Deed -. . .. ban accepted by Lander In the Site of Taco. Chaim of Vanua. If them lea b soul,and If the trenaecliort• .. by this Deed- • •••nod In DALLAS Courtly.Gunter egress am upon Lendeds mammal to submit to the'wis ed=of the mats- r - •`cry.State - rik Ne Waiver by Lender. Lando awl not be deemed lo lune ., ••• this• •�. Treat thine such waiter is pen in wddne and shed by Lender. No deiay r agdseion on the pan of '".. . . any right •. operas a a waiver of such right er any other rloht. A waiver by Lander of a Podebn d We• . . . 1 pmbrrtse or oonaltde a weaver d larder's right otherwise to dsmer d stirs cent it rum with teW prevision{rot a y• a • _•d Teti No prior waMt by Linder.+nor airy cowls of dosing between Lander and Omar,shall sons ieme f -- of any of or d any of Mentor's obitgadona es m any future traneacbon- VMwtwar lie consent of Lander b • -•hide,.•le Deed- " Waning of such eorsent by Lauder to any bhaahm shell not eostbrle conanudrg corral to f,! - such ., -•• it required aid in el eases audt canard may be granted or withheld In the sale discretion d •- � 9evmbl ty. I a court of competent petadtdlon Ands '74'" • of this Deed of Trust to be Regd.Invalid.a tneebaeable as to any churmstanco.thel near.;On not mete to-.. ... - . bead.or unenforceable ls to any ether eircurnmerne. t haasede. the offending pmviaon ahel ba-. . - I h• •-- raid and enforceable. If the offending provision rand be ea readied, it sine be mneWmad d :f�hont . of , Undssa otherwise requited by law. the Sagethy, Invalidity, or uhmNp�abley of any pranlslms of• Deed of Tm- net 7 - ems tags*,validity or snfoeosibthy of any other amnion of this Deed of Trust Sueassan end Assigns. Sum(e=to Pk • .- - stadedd • Deed of Trust on transfer of Grantor's Interest elle Deed of True*deg be binding upon and hope to the• eat pa • nt panne.their . . - and salons.. I owoerabip of the Property becomes vested In a person otter than Grauer,Lander. Grimier. I sa do Gra 's dot with ntor euaelsaore with refetenee to lids Deed of Teat and the indebtedness by wry or ..• a - !. —Grantor from the obllgedam of eft Deed of Trust or liability under the indebtedness. Time Is of the Essence. Time is d..- on hi the pertommaea d this Deed of Tnuat OEVI811ONS. The .. `0 • torus ash have too following meanings wten used In thin Deed of Teal. Unless 'pedhmaly stated to.; . •,.. unmade anal mean mama In lawful money d tli Wilted Stabs d Ar ante. Words and terms used in.. . . 'h Include the plural,and the plural sill Include trio singular,a the contend may require.Wands and tame not gta+rdes. . j� •+ .dust shall have the meerriga autthuted to each term'In the Uniform Onernad t Code —� 1 • - , roars tNWOOO NATIONAL SANK end b successive end amigos Borrower. The •. �u;'_•. Pees Pmpettee LLC and includes el aosiWsn and co-makers signing the Nam and all tnab' redo.. . J •Neat The •and d Truer mean tide Dead of Trust among Orarrree.Lender,and Trustee,and thanes wMnout limitation at .. aid security •i -prodtiane relating to the PeeonW Property and Rena. De• mown the Default set forth In this Deed of Tract In the sedan titled'Defadr. �rnorrda'EetvitorermruW Lame mean any and al afro.Ward and local amtntas,rapmaWoes and erdt wimal relating to the •.-,_ d wing heath or the enviorrrwnt.Induding without Mulligan the Ootoralwnsrer Eradn>mrnental Response. Compcn* . • • LIMO/An of 1980.as amended,42 U.S.C.Seelen a601,et rum.(CERCLA'1.tie teethe A sendmeres end Remehorkethth Act of 1 SSA.Pub.L Ne.99.499 CSARAL the Hazardous Mated=Trartspmtedon Act.49 U.S.C.Seddon 1501,et sad- gm Resource Canervedon end Recovery An 42 U.S.C.Sidon 6901, at seq..or Who applicable=te or bderd lawn,nd s,or maunder*adopted putuam thereto. Evrd of Default The wads'Event of Defeulr mean any of the wares of default set forth In this Deed of Trial is the events of default section of tub Deed d Tent theater.The weed'Grantor means Pabm Properties LLC. Gusrenter.The word'Guarantee memo any 1Furardr,entry,or aaoamn edatlst party of any or all of the Indebfedrsaa. Gusmay. The word'Guaranty moms the guaranty hem Gurenmr to Lender,including without Aral a gumnny of slier pm of ire Nola. . -- .. s DEED OF TRUST Loan Ho:104405704 (Continued) Page e Hazardous Substances. Tha word, Hnardow Substances'moan m tw s dm1,because of shot quantity.ooncanaadon or pfyalral. chemical or Inadbus ehhreetedatinau,may coma or pose a plasm or pagoda'hazard to human With ar t u anvbcntnent wean sn{uepeny used. awed. lamed disposed af, 4energad, msnufacawad,transported or otherwise hand ad. The words'Hazardous Bubetan00a'are used In the any broadest serer sad Include without Sedation any and ad hazardous Cr lode atMsncea,Materide or wade as cleaned try dratted wear the Environmental Laws. The tarn'Hazardous substances•also Includes,withal imitation.petroleum and petroleum by.pradurds or any fraction therm'and asbestos. Improvements. The word'Improvements'means et asisti g and future hrmrozarrwnts.buildings.structures,mabaa lionise abed on the Rod Property.bum.addition.lepfeomlarra and aeterconabudfon an the Rail Praparry. Ihdebtednaa. The word'Indabtadnas'meads It principal.kdersst end other amounts,coed and ahgrosea mode under the Nate or lidded Dowmsna.together with all renewals of,esdeeflora of,modelohkne of,srnatldadata of and andsddsdlone for the Nate or Palatial Oadentur s and any amount§"amended ar advanced by Larder to discharge Grantor's abegatlwn or sspunaa Incurred by Trustee or Leaded to enforce Grantor's cbcgadaa under the Coed of Trust,together with Maraat on such smsuna as piowdad In this Dead of Trust. Lander. Thu ward'tandor marts INW00D NATIONAL BANK.Ito surnuaore end assigns. New. The ward-Note'moans the[swift :ay note dated October 27,tore,la the original principal amount of$704,70140 from Gramor to Lender,together wee se renewola of,aavmhns of,maddtgaans of,re0nantdngs of,corwddadana at and ... for the promfasary nmla or agroernardL Paused)Properly. The worth"Permed Properly'mean at equipment thmee0.sad other arddea re paraandl Property 4.honseter owned by Greats%and now or herader attached or armed to the Red Properly,together with di accessions.pants. ' to ail meplaesmente or end ae substitutions for,any of such oropety:end legenhsr witlh Cl proceeds(Including oilman Ihnaahee 'If- - - proceeds and refunds of ptomains)ham any sole or other dtepmtlan of the Property. Prepat r.The word'Properly'means aaderwely me Rad Frowsty and the Personal Property, Real Properly.The wants'Real Property'model ma real property.lee:rests end radrte.es Mawr demoted In .. Trust. Mead Dectarura. The wads'Related Doanante'mom all promissory notes,meet age,loot ..,,, "',,+W«,, sg earnerta,ghafentea,mostly egremhena,moutgogaa,deeds al bust leanly dude,collateral mortgages, ...lop eg rhorts and doaamnt%whether now or heroafsr twisting.ardieuad In connection with the Wontedness. ` 7 Routs. Thu twat'Pens'means ad present and future rents, manure%beam issues.wands,p;'..,and other Nit.. . d. ..tour Ira Properly.The word'Rents'shell also mean as'Rena'as dented In Chapter94 of the Tensa , Code. Trude.. The word"nortee•means Gary L Tipton,whoa.address Is 7521 Sn000d Road •I1 •`' S?A9 wW Wale or orooessof trustesa. GRANTOR ACIDIOWLEDOEI HAVING READ ALL THE PROVISIONI OF This OM OF TRUIT. • • •R 0 r,•.TTERMS. GRANTOR: 7 PATNA:plifttlfsa tiC /144 . ` - /y1 TASs• ial .aOY: "noax //` ��c.rr -r TiLIMITED LIABILITY CO y'' g'''•.OW •Fc MENT STATE OP l 1 • At ewer(OPCor \ Tele Indbennere woe -• • .. .before y a: P ,20� by TANVIR ARMAD,Manager of mans P1e0erdae tt.G,, . .41P ►w •1111 • GATHER.N QCl!GPM' ,aic,"lt..... �' 7 Li7. VG HoaeyPhdhll.00fToms -Li - • �i- =ILITY COMPANY ACKNOWLEDGMENT . STATE Of ram %, t COt1NTY rIlk: I la i nos Pest ore= ...•• esters ma on Oat.. rz[ + I06 by FNMAPiOSAMA Manager of A1141111 Pan s Prowess - . on bandy of Pabu Prop.rdeee LLC.s warded Ilsbally company. })CFrTHERINE COOKPUBLIC II:fi! adiZ / STATE Of TEXAS y%mi S a or My Carhm Ewa p1-01•+r1•* tasaPro,Ver.16.2.10.002 Capt.D+H USA Corporation 107,2015. NI Rants Resorued. -TX HACFIILPIAGO1.PC TR.280010 PRaa 1901351500320 Acciri,46%; Filed end Recorded °Mal Pabuc Records Stacey Kemp.County Clerk fkrCoMa County.TEXAS `- 10128/2015 02:35:33 PM c4 I 350.00 CJAMAL 20151028001364810 �• L 1 Jb 4 `I '' k Gr 20151028001364820 10/28/2015 02:35:33 PM N2 1/3 Immeit UCC FINANCING STATEMENT FO-LOW;NSTRUCTIONS A NAVE&PHONE CF CON'A;TAT FILE.0ptibnatl Loan/1104405704 ?.E•VAL CONTACT AT FILER(oplona!) C.SEM ACitNOV'tECGMEN-TO; (Name and Add':aa) Inwood National Bank 7 7621 Inwood Road Dallas,TX 75209 L THE ABOVE SPACE IS G OFFICE US LY 1 DEBTOR'S N.W.E. ?•cults any tl.5 -Motetrr ne;1 a x lel hue rand NI rams;CO no:Tit nod y.ar anarav:a:a*nr Part:r Ms D 4 cry avidual Dap:Ys nrnsstill n3l RI L.-Lae 1c.trove ea:I Rat I bark dreei Mn ❑an:pro%de the Irdeedual:eater�h'3�manai n:ten 1:d the r'nenorg S F . 'etJCC'Aal 10 ORCANILIT ON NAME I Patna Properties LLC 1 OR e/C.,'b W01'/'O:.AL'S SURNAME =£BST P3RSC WL WVa= 'd iO'AL NRb4(5) SUFFIX A •c. r INCCCRESS G,1 - - w - - 5-ATE .CtiSTAL CODE C3'A7RY 3208 MONETTE LANE PLANO 25 USA 0.DEBTORS NAME:Pror Se Fehr OCa Oettorname(2a or 23.)(,.se load red rwrw do rot and.rro dy r an serf par:arthe tars woo;.Ir arty part of ate.nav'dtal Dabrnrs ^ama WI ia,r:in dna 22.tam at d:On 2 blank 744 i Mee C std p'av:da the I vlmral Cate=pc ix r'• data Flu. Sadenrr:t Adderld.rm;Fain UCC1MI •2a.CRCA.'a-IOA'SNAME � OR e.7 wCUp_55 aNA1rE FIRST PE NAL NAVE .cOr.QML nArrE(StMl IAL(S) SUFFIX 7a AA LAGAJLINESS ——di 5'A1F I POSTAL COCE CDUI."TRY I 3 SECURED PARTYS NAME: %WE ad ASSIGNEE of ASSIGNOR SE - P TYI c S,?ged Parov none(;a or 3dI 3a ORGANRATON S NA:1F INWOOD NATIONAL BANK OR 34.IIlD,V1ZUA_S SURNAME • RSONAL r1AtAE .L:r1ONAL NANE(SiAYRJtL(51 SUFFIX l.7MAIUNBAGGRESS / re STATL PCSIat CODE CC-RORY 7621 INWOOD ROAD L TX 75209 USA A.COLLATERAL. "ha fsancnc er:atmrert deters the 'ee :arM' — Purchase Money Security Interest In urns, h of the foregoing Is owned now or acquired rata;all accessions,additions, replacements,and aubatitutions relating to of rig;all records of any kind relating to any of the foregoing. 5.Chedr Rai if aper-abls and Ich ya7t Pal ma.Camara is ❑eaJd Ina mat owl s.CCIAl ram 1 r arse Iretnrcaons) II stair"amturlslsred by a Dedo:srfs?ennui RsresentaLYa 8a_Clem p:hl"appreatte red ena:yt tI ere ben Sb.Cam=d apdrable rid mom=Jr aria tar C PUCIl.Frmnx Tranaaobal I:J Mu.da;r.taa.H:r.Trriaeran 0 A CMkr u a Tram:a:rp LaiCn 0 Asrauhurat Jan 0%ROI=Mg 7.ALTERNATIVE CESi3wtTICN II wracea r): l Les»uLeswr 0 CmprraaCceslpr,e Q SaescS,rhr l] Btdlsuaaw 0 Likeueett orser 8.OPTIONAL FILER REFERENCE DATA: COLLIN COUNTY CLERICS OFFICE SECURED PARTY COPY—UCC FINANCING STATEMENT;FS•rn UCC1)(Rev 04l2Cl51) 041.1 S.W.400 Eui Avenue,Pbrtrand,Oregon 97204 I UCC FINANCING STATEMENT ADDENDUM FOLLOW INSTRUCTIONS S.NAME OF FIRST DEBTOR: soma es are 1s or is on FI.lusm10 StetIA at It In,lb Ass ENE error sums hlleldrial Oohmr nuns NO na IL aseru nerd ❑ sa ORGANIZATIONS NAME Patna Properties LLC OR 11 ENDIVIOUALS SURNAMEE FRRST PERSONAL M 1 MOTIONAL tuoistspurtam SUFFIX THE AROVE SPACE• ."�•, • --. USE ONLY I 10.DEBTOR'S NAME:Proviso(t0s er 104 crib gg adrJNand Mbar sons a Ikhor rams eras di rid R ar he lb or 2b d the drip •--•• !,-'• MN sad,IV7 rmrsrs — to not milt mod,Of s>mrnlars arty um of as Oaetds none)sod ilia 0s me3n0 sad-cm In Oro Mt 10a.ORGANIZATIONS NAME C.) OR 1tlg t Vi1 I IALS SURNAME 1 INOIMOUALS FIRST PERSONAL MAME { IOIVIDUAL'8 MOTIONAL NANEIsyINffML(S) SUFFIX 10c MAILJNG ADDRESS .CITY / STATE POSTAL CODE COUNTRY 1 11. ADDITIONAL SECURED PARTY'S NAME Or ❑ASSIGNOR S- -Ms P :+� S PRAM*ON pm MM.MO or1101 Ills.CRGAMZAi1Ot(S NAME OR 11s.INDIVIOUAL'S SURNAME FIRST RSOr1AL ,a/ MOMONAL NAMIF;SpalfAt(S1 SUPRX 11a MAILING ADDRESS 7 STATE POSTAL CODE COUNTRY 0.— \\V.- 12 ADDETTONAL SPACE FOR ITEM 4{Cc ): ' 13.tAa'Ws FINANCING STATER // p h0 ... ra 1i1 or seeded)in es 14.Ter FINANONG STATEMEEM REAL ESTATE RECORCs , _. ■moss amber to as ad ■caws ss4atracced oollsterst ®I+Red as s gssaza%Mg . Nuro mrd••--.. . a •• • •"wl• • NM. .•74—�"' •.-el lien 15 15.D... I tlen al roar sera sr Om1o•dos►se me a -- •tram* / LOT S.BLOCK A,OF MARTINEZ ADDITION,PHASE III,AN ADDITION TO THE CITY OF WYLIE, COLLIN COUNTY,TEXAS ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLUME I1, PAGE 17, OF THE PLAT RECORDS OF COL IN COUNTY,TEXAS. 17.MISCELLANEOUS: SECURED PARTY COPY—UCC FINANCING STATEMENT ADDENDUM(Form UCC1Ad)(Rev-04r20111) 400Sys.MR Assume,Posited,Orgies 27204 1901351500320 Flied end Recorded Oldelal Public Records �--t� Slacey Kemp,Conaly Clerk Cansf211 C01anly.S:3TEXAS •�`;'- 10f1812015 02:3Sc33 PM fS7.00 CIAMAL 201510211001364120 LTIC#1901351500320 20151028001364800 10128/2015 02:35:33 PM DI 113 WARRANTY DEED , "NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR 5TRII E ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER S Date: Octobe 9l,20I5 Grantors: Fauzia Osama and Tanvir Ahmed 3208 Monette Lane Piano,TX 75025 \-,.....74V Grantee: Patna Properties LLC 3208,Queue L5ne Plano, 75025 Consideration: $10.00 and other good and valuable consi a recei. .d sufficiency of which is hereby acttaowledged and confessed by -•tor. Property(including any improvements: Lot 6, Block A, of MARTINEZ ADDITION, PHASE :: n addition .)the City of Wylie,Collin County,Texas according to the map or..'at . • recorded'. Volume M, Page 17,of the Plat Records of Collin County,T- Reservations from and Exceptions to Cam' r.tee and ' w, See Attached Exhibit"A" Grantor, for the consideration and 3+31_ to , .•as from and exceptions to conveyance and warranty, grants, and con ..~ t ,.t.- the property, together with all and singular the rights .. •• . . es .-•7in any wise belonging,to have Aliand hold it to Grantee, , . __ a7rr ...... . . .rs, successors, or assigns forever. Grantor binds Grantor and sr :. • a executors,admisystrators,and successors to warrant and forever defs,.•s[+ a property to Grantee and Grantee's executors, edmini- r and gas against every person whomsoever lawfully claiming or • aim the . •r :. part thereof,except as to the reservations from and exceptions:. nveyance ... .ty. This con :. ! . . _._ subject to all liens. mortgages, encumbrances, easements and other1.. . of record. LTIC#1901351500320 When the context requires,singular nouns and pronouns include the plural. t:au sauna Tanvir Ahmed STATE OF TEXAS ) COUNIY OF COLLIN ) The foregoing instrument was acknowledged before me on this I7 day of October,2015 by Bauzia Osama and Tanvir Al mad. CI AT CCM GINN410 ' NDTFgr Plfa'.;Cs r , A AI": CC „E441s w4+-231f Notary Public,S '. ?� LTICi1901351500320 Exhibit"A" Exceptions to Warranty of Tide 1. All restrictive covenants appearing of record 2. Visible and apparent easements on or across the property. 3. All casements appearing of record. 4. Any rights,interests,or claims which may exist or arise by reason of the following matters disclosed by survey, Job No.: 513-0810 Dated: September 3,2013 Prepared by: J.T.Thompson,Land Surveyor Matters shown: Concrete Encroaches along West side of the Property AFTER RECORDING RETURN TO: Patna Properties LLC 3208 Moncttc Lane Plano,TX 75025 Pled..a Rena., Daher Po&Rama. Cacy .[ CAP Camay,T C Mj\• toinnots atrial PM sum GAMAL �I IeInorsoousuoo 20160616000754920 06/16/2016 08:55:36 AM DT 1/7 CONSTRUCTION DEED OF TRUST RECORDATION REQUESTED BY: tNw000 NATIONAL BANK Tall INWOOD ROAD DALLAS,TX 7•iMOS WHEN RECORDED MAIL TO: DiMIGOD NATIONAL BANK 7021 MOOD ROAD DALLAS,TX 732OS SEND TAX NOTICES TO: Pahl208 Properties ETTE LLC PLAN 0 E1 TE LAM PLANO.TX 75021 SPADE ABOVE TWO UxE IS FOR RECORDER'S USE ONLY THIS DEED OF TRUST Is dated May 31.2018,smon0 Patna Properties LLC,whose address b 3208 MONETTE LANE, PLANO, TX 75025 ('Granter"): INWOOD NATIONAL BANK.whose address Is 7821 INW•• ROAD, DALLAS,TX 75209(referred to below sometimes as'Beneflefaryr');and Gary L Tipton,whose .•• 4 la 7821 Inwood Road,Dallas,TX 75209(referred to below as'Trustee"). CONVEYANCE AND GRANT. FOr Valuable oonddattllan,Orator canny,Is Tease b Oust,with power d seN,for to WWII M Su sSdby,the foaawleq desamod and property.toDepar PhDs ed udsdnO or subeer erdy erected or dead bublow, •.. . . ... . Mures;aM ed emmanb.sp1ia of bey,Ord othiortanommE ed wale and wafer Vas:end W sew d di.Mye0k0,old Woes .• the real properly.4rdudlrg without antaatlon such Mtn es Grantor may has In at nemamhs,dl,Sus.Oeathaned set ebder mbTem, .. "Real Property")located In COLON County,State of Tease: LOT e. BLOCK A, OF MARTINEZ ADDITION. PHASE III, AN ADDITION TO THE CITY 1 COUNTY,TEXAS ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOW '" ■F THE PLAT RECORDS OF COLLIN COUNTY,TEXAS. The Red Property or Its address Is commonly known es 815 S HIGHWAY 78, 75098. -;1111 Granbrbaby absdwdy assigns b He ie Lander(mho arst.,Banrtctery In the Dead dinar)ea- a,and o to all promo ere Mum thaw d Oa Papaw and at Rods b the e Properly. In'dalon. • • to f - Cods sorrily aroma In the Psiwal Property mid Rents. TWO DOM DF TRUST.INCLUDING THO AIsONNOIT UI RENft AND THE sacuenT IN THE RENTS •.. PROPERTY. Y. 1S GIVEN TO SECURE (A) PAYMENT OF THE INOESTEDNESS AND OS' PAIPOAl1ANCE•.ANY MO AU.• • • ••-WIDER THE NOTE, THE Dame DOCUmENTt,AND THIS D®Of TRUST. Tfta DEED or TRUST. •..r,-T Doe THE ••••••' '• OF eons AND THE SECURITY meow et THE RENTS AND PERSONAL PROPERTY,,S ALSO GIVEN TO • -'�1,ANY AND ALL GRANTORS 081UGATIONS UNDER THAT CERTAIN CONSTRUCTION LOAN AGENT BETWEEN D -'T1• OF EVEN DA NERERaRR MY EVENT OF DEFAULT WIDER THE CONSTRYCTTON LOAN AGREEMENT,OR ANY OF THE TED •• y: ,.•TO DIER®e.SHALL ALSO SE AN EVENT OF DEFAULT(RIDER THIS DEED OF TRUST.THIS DEED OF N • . - THE FOLLOWING TERMS: PAYMENT AND PERFINMTANCE. Enwpl as otherwise prodded In thle •. •d T `• d arlarmis soused by Ida Deed of Tent ea Guy become duo.awl shall artily ly and In Dist' arm obllpeea s under the Now,OW Deed of Tryst,and the Relabel Dooanarda. pURPOSE OF LOAN. Th.Nora to the erase of L58.541.11I .• . •. In.,.� In whole. other enandal amorrunodetIorn advohced or committed To Gwadar an May]t.2015 at Graatos l .j of •• gas rem*. CONSTRUCTION MORTGAGE.TN.Dad of Tap b m'-• . . ••'~ of Sedlons 0-334 and 2A•300 of the UrDf mr Comma/dal Cade.a Thom Mdiba ham beers Waded by• s. P0110ESet)N AND MAINTENANCE OF THE PROPERTY. ^•row• possession and we of The Prapmiy OW be premed by the fa0owbtg provtdom: Peaswekn and Use. (Intl the o0awmrhea or m d• -'IC...! ) nenai h posses:1mi ant eonbd of the Property. (21 uaa. •Wwe4►or musses Ow PropsaY,rd (3l : the• .. • . Dray to Matrdsen. Grantee Nat mabealn Da . .. . toriantaba mnealon and pdompdr carbon sin wake.nplecrnentr.and mslntanoew naaaaay to cream Its aim Cowinmrr__Eneronmental ..411111111 . . - •• to La diet (1) During the pared of Grantors aewahlp of the Uvperty them hoe bon no we . . .•• . - trss ratchm.dtrpod,release oraweele feed Massa of arty N csandous Substance by any parson an. ../slow or from r) Granter has no bnowledyn of.or mason to beams that Wee hos been,ararpt as prmvbudy•• _._ •to atd . . b WIDIy : • In W n, (a) e y breads or videdoe of cry Erndonnuned Lowe. Rum) any u /aaraeon. • !! ,rage.. •.1 ratemae or Osesttanad amass d any Haardous Subarea on.order, road or bans the Prapedy T remora or•.-- - of the Property,or (c) any aemd or thmatand>dlpadan or deans of any bind by ow prime - arld (3) -r• Au praWeudy dlsdoed to and edmsetadeed by Lander In wdtlne,(s rather Grantor nee any sweat; ". '�T•�it ..•�.••-.•war ol the Property WO or..generals,mahufeeaae.Non,but diaper d a miaow ay Howdy h. 8•.-'! . -•�+LwAi,+ front Ito Prapenr end 0)• • mid ° l such Wirral Ili Oil E e a:r nlst Lows. Grantor Wm ed IpLUsa Wheat aYfioriiw Lads ad ti naOeMc �'� ,pow We PmoPsttM b roster suds ImsPsdbrb and testa,a Gransore umpawa,as Lader Amy loam appap/lee to Papery wdtr Dia section of the Deed of Trust My bapedtens or testa mode by Lander.hull be for Land . oantmbd to slats try reverie/ayt or AabiBy on ate purl d Lender to Grantor or b shy other. . ../ .u ,_ • • . . oo<rabud tomb os based en Gemnba's due dRlwan=In breaail5a ne the Properly far - &ardor Mosby (1) mimes end waives any Arturo dabna west alder far Indoor*or contrtbuton his Use want • '1 far desrap or other opus radar any suds laic and (2) somas to Indenmyy.defend.and held hemdeaa old asses.eatledw,damps,panddas,and swarm which Lander may Greedy of Itdbsofy swan or actor .-• •.. '1 a a wean of the Deed al Twit or as aconsequence of any use.Denem m do. anedsehre.WSW. - a• rve . - awunbg prier to Ownsarr areanhip or Interest In to Properly.whether or nal the mime rhea or ••hem been •L,K to .'..- The prmreiare d the esdbt d the Deed of Trust,lnddlg the mar to Indemnify ad ridged. Deed and aurae the ... d Si.IndeUednws old the agar sod reeonnyano,of the Osn d Site of Tent dam real be • •by i urdtry - • ..-. of ay Mood In the Property,whether by foreclosure or at ensiss. :'"T sub. Gm aloe nil OWL arrduet a any para.ponds o nubbin nor ccerrilt.p .or wafer ay Unocal;of a wane on or to the �f- • any•.• • of the Pmprty. Whorl IMOOM We gram y of them the Imabg,Omar eta not remove,or omit to any other poly• y in` say •miner*(tndredn0 or and past red,day,scoria.ON,Omd or wady p:oduee without Lendeee prior written toe mhaaw trn will not apply to delft end saaads(such as gasand dl)net owned by Omar and of Wilds Guenterhas Wormed Larder In wrIane prig to Omen's doles or the Deed of Than. Removal d lbpavaemm. Want"she not domain i or remove any bnprovaswma from the Rash Property without Lender%prow widen mwent De a m idd en To Ws rerowal of any Imermementa.Lander map maim QMador to rake omngemmds ssdsfscony to Lender to replace such dnprovarama with knmcwirrants of at Mast squat ohm. Leaders Math to EMet Lender and Lambda agirth utd reprommothes may ohaupon the Rad Mammy se Ill resumes times to road b tandde Interests ad 10 Inspect the Roil Properly lot purposes at Grantors oompllasob with the Tema old oadlaom of Oda Deed of TerraL Cana=with Governmental itsodremente.d S authoress appapltlstoo the oreGmaowY of the Propay.Indudhe without ambitiontor WO pitagety amply vedi an laws.ordinances.ard .now or hereadm In admitthe Mwde:aw With CiadOltiw Act Granter rimy contest In rood Nth any such Ines.ordnenca,or reeuufan IN withhold completna during any rigillir fi i ig i fli a gig4iVireo. g lii 6^ R 1_; � A . isrt 1-1141811o104 10 2111: 11112ORo 19.1r� ��i oi 41.�:„ :f '. 2 s IJ1;t!! 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Vi ip s € 11111 / J Ifl!'Rhi illootta 1I--L111401, 1 t lx si l ii Is � �f :.tom: � iII !!i lip iIII lip u 1 ghliiiiiiis S Sai it q lop 0,21 -..41,,,i_ - --1:0 I V, Iii 1110141 ill 1 S - i i f d 8 . � � nap NI 49 1 19 iIiiIp 4. i 41ibiiliai li s� i� � as � � $ S i� ' �� � • ,16114 � � �g c8 110 is 11 osa i IIi al li 1Ig Io irIill ,. Ini, :4. .o gaps 10e , s : ':s I' 11&ll1I111211 1 s1iiPI � � t � � TITYp mF 1 1. g 1 :i - 1 0 1601 N' ll 1 h6g +1 1.gu 21 i li Iit th 11 III 4 5 ildi lib r 1 ---t : 16 Psev 2111 ! I 1 Wall IP i tilt DM i 4 till11 .1V4'1! /t " lilt IS! I a 3 iiill i si ill iii will itilitliliii 11yiiiii i iiiillivaistil hi Iasi 515101:11qpii .ffp pni . 0-11'Hp ii RI -3 11 VT 11P 1 4 2 A ail a ,.A1 1 3.1 .. Ji g i istifil Bilid° 1 Hi it a It ii II 211 ! AI :A — 111 11 Eg r as a MEW DEED OF TRUST Loan NO:104408148 (Continued) Page 8 ;pedantry salad to the raneery,as references to dollar errands chat meal enounte In lawful money of the UMW Series of Americo. Wade end roans did a the sbtgider whet lndude the Plaid,and the plural shag Indude the angular,es an t context may realmWards and tares not otherwise WaalIn ids Dead ofTrustdal hero the msaifr a egdbuted to midi tie India Worm Consrrerd+t Cady. 8asfiduy.The word'Banelldery means INW000 NATIONAL BANK,sad as successors and ssstgis. Bamwer. The word*Borrower"mans Peon Propatln LLC and Indian ad coetgnora and madam alining tiro Nola and dl Oak sueaesaas and assigns. Deed of Trust.The wads'Dead of Tnrer man thla Dead of Truer dreg abeaor,Lander,aid Tr stee.and includes without IIadtitlon all nslgnmend end security tnlveat provisions n ada;to the Penang'Proaeny and Reels. Default.The word'Default means Pa Default sat data In this Deed of Trust In to sedan tlaad•Ool ur. Enrbomoarhe Laws. The words'rndrenmaihp Laws'mean any sad d ace.federal aid teed dada.ngWaSss and addenda rdadng to to proledon of human halat or the arrsirrurent.6rdudtng walnut tirdtstirn the Cemprehsmlvs Enrkarorront•l Reeponsa. Carpansatton,and Lte11114 Pun of 1080.as amended.42 U.BC.Sedan 9601,at sod.l'CERCLA1.to Supafrud Amrdmeme and Reauthorization Ad of 1006,Pub.L No.09.999 r9ARA1.the Neaardous Metaled Transportation Act.49 U.S.C.S.Cdon 1601,at seq.. the Reeautce CGmrvatiri and Raewery Ad.42 U.S.C.Seddon 8001,et sae..or other aypdnbhs sale or Waal lone,mtak or ropvaters adopted pursued shwa. Event of oshulL Tiro words*Event of Odour man any of the evards of Wadi sat forth in this Dead of Trust in Cue of default sedan of the Deed ci That. Edging trtdsbkdmess. The wrds'Exdting indebtedness'raw the tnddatddnae described In the Wang Dens of TNat. Grantor.The word Manta'new Patti Propartlos LLC. Ouasnter. The ward'Guar ntor'mass any guarantor.surety,or accommodation party of cry or as et the Gummy. The word'Guaranty*mar *pia prima from Guarantor to Lander,InWGng MamaMamaI mItaton a. ..,.. .. ., . pat of Gat Ilstoders Subslanew. The words'Nuaedaw Su eluima'mow mdabile Chet.bemuse of their quasety. —. ^�& • dleniteal or Infectious dwvmistlea,may puss a pod a prima r parade!heeud to halo or . . '�.•-"7".a.Y _ ' fhrpropedy red,hosted,sarsd,dhdrdsed d,gawsted, mdrOad eu+sd,terepoesd or .., L horded. r • •Namwdaua Substance era wad do Mak very taoedeed sage r d Include without tmdte ion ay and d .-f or etc .. .�... wands or waste a Planed by a fated under the EmaraimenW taws.This Lean 7tsmdats Subside="•'*7"'1 ...without w • psbdatm and petroleum by prcdud.or any fraction threat end asbestos. Red Rowdy.Improveme ed. The word Shctlons�replecenveMs ind mains dcaw conW edsdng sumon future the Rad- : " + Mixed m Cu. Indebtedness. TIr word'bid.tdsdnas'mew ea pelndpd,iraeresL and other •..,.�., costa and -- • •�.. . aide lira Nolo or Raided Documents,bgarm with dt mamma of,estensiens of,mopscatirre Weldon of : . • •• • . • forere e Note or Ridded Doodads end any sn oned,eapendad or advanced by Lander to d• - catgadrs •'ammo blamed by Topes or Lander to enforce Grantor's obligations under tide.Deed ofTnrat,tog with -• on such es provided In bhte Dad of Tot Lander.The word'Lander means INIMXICI NATIONAL BANK.a •- Nets. Trha word'ache mass ne prmdenay node dead May 31, .• 6.1R • .1 •• -- adnound of$58,541.18 from Grantor to Larder.tsdgaaer with as rarotwts of.mansions of, . , .... .. - of.mrrdtdslam d of,a rub4 a for ordee the prory note a stosenrril. //•' Pausal Property. The words VararW wan an dl +'•• and . .. r.�- - W personal property now or Wader owned by Grantor,and now or harodtr sterhed or rased.. •. Reel . • ., m aaoaseles.pals.and adders to,sit replacements of,and a wbadhdans Par,my of arch .... • •• ••••••_. . ; all .. . ... (badudkn walnut Ladtidan at insurance proeeeds sod rotunda of pmnlsas)from any sale or. .. Property. Fropry. The word*Property'mans rdladive y • ill' •... I Property. Red Property.The words'Red Properly'mean r l. .. •. '. '- ,as further deeatbed In air Deed of Trust. lidded Oseumeba. The words'Raided •. ( :• )...�promysa dada agreements.bat agnereds,andro mean .its.Bw+�es,security ere . tend. •. duds.easatad rooftops,end ad other Instenemis. agreements and documents,whether now or •. .•aterded In eoemedfon with to Indabadnar. New . Tin 'R word ants*means di• - future • .Income,issues.irod9n profits,a n 4 Geer bonsai derived born the Properly.Tie won!Tanta*did, -. . Dada 04 dais Tess Property Code. Twain The word'Trustier - WOis 7021 Inwood Wed.Dallas.TX 75209 and any substitute or enmeaar busload GRANTOR ACKNOWLEDGES HAVING- • -OF THIS DEED OF TRI1Sy,AND IMANTOR AOREEB TD ITS TERNS. GRANTOR • PATNA LLC•�' / hi.� -ncR.cCGtY OCZ14,,tp Br I i._►rli�t✓r�L'e. �i RY - t•... ` BeAasA,ate aegdr of Pans lwpaWa LLC DEED OP TRUST Loon No:104400146 (Continued) PSOo 7 LIMITED LIABILITY COMPANY ACKNOWLEDGMENT STATEOF ' eitac 1 Colli+n 1 Q mean�nuc COUNTY OF 541 } r..• Cato.Noires 2316 This Insaument was sdato 1sd low Ood be it on ,3 U n� W T ,20i10 by TANYIR NOlAn.Wneger of Psin. Ripostes LLC,a mombor on Wan d Pabw Proprdai LLC.a umlud WNW mnpuny. , fel 4 A Air- Natary Pule, • d T LIMITED LIABILITY COMPANY ACKNOWLEDGMENT '111)11111111/> STATE OF O S 1 Ile COUNTY OF LatViiy\ 1 \:77 l This bnbumanl IA=a ickno aladaed bdo o mo on / ` a 1 �' by F,-• ., Wow of Patna Properdsi LIB,a mambor on WWI at Pools Piapodfaa LLC,• n._.. T.v, .. • �� c c, .... FA GRAY Rota of Ttns . . Conan.Ewa e.p.=Ot6 Los0Pro.Vor.16.2.10.002 Copy D•li USA Cao.praOon I . F - HscFN.A.10e1FC TR.26W2 PRA '1111111111111116649 gild and Undid Omdd Fob6r Reatds I`" �__ OHISg6l6 6is2k2i AM t ' floAO C1ANAL ' . 0I! 201610620oa1SA20 20160616000754920 06/16/2016 08:55:36 AM DT 1/7 CONSTRUCTION DEED OF TRUST RECORDATION REQUESTED BY: INWDOD NATIONAL BANK 7621 INWOOD ROAD DALLAS.TX 75209 WHEN RECORDED MAIL TO: INW000 NATIONAL BANK 7E21 INWOOD ROAD DALLAS,TX 75209 SEND TAX NOTICES TO: Patna linsperts1.1.0 320E ONETTE LANE PIANO,III 7SQg5 SPACE ABOVE THIS Luis IS FOR REcomers USE ONLY THIS DEED OF TRUST Is dated May 31,2015,among Patna Properties LLC,whose address IS 3208 MONETTE LANE, PLANO,TX 75025 roranlotl; INWOOD NATIONAL BANK, whose address Is 7021 NNW••• ROAD, DALLAS,TX 75209(referred to below samadntes as"Benallelaty");and Guy L Tipton,whose .•.. • is 7621 Inwood Road,Dallas,TX 75209(referred to below as'Trustee'). CONVEYANCE AND OMNT. For vuIi 1e amldsudon,Granter conveys to Tame=I.bust,with pewar of sale,for me bwMR v Dauaettry,Ms fdmo+ring described rut property.lagetina m Mh el adsang or.ubsequeney erected cc aeM�ad buildings. ... .m�prop hndudehg orR arm si sesarrnsts woos ta *cn such Grsnt 1 sswater �=swots.end edo,wea W sineW mod "Real Property"}located In COLLIN County,State of Tease: LOT 6. BLOCK A, OF MARTINEZ ADDITION, PHASE III, AN ADDITION TO THE CRY 1 �, COUNTY,TEXAS ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN VOLUM `;,�- F THE PLAT RECORDS OF COWN COUNTY,TEXAS. The Real Property or Its address Is optionally known as 515 S HIGHWAY 78, 75098. Gnala booby absabtoly=lens to Lander(oleo eorwk as aeMaaelaryIn this Deed of Trust)d•• • ,end In art to el =sant era Muse Noses nf the Property and el Rode horn the Property. In addition, • } to Code aacoNy Interest In the Personal Ptapeny and Rants. THIS D®OF TRUST.INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY 4'• IN THE RENTS PROPERTY, IS GIVEN TO SECURE (A)PAYMENT OF THE OIDEETEDNEaa AND (I PERFORMANCE• ANY MID ALL WIDER THE NOTE, THE RELATED DOCUMENTS,AND TIES DEED OF TRUST. THIS D®OF TRUST, .. TIE OF RENTS AND THE SECURITY INTEREST IN TNT AN RENTS D PERSONAL PROPERTY.IS ALSO GIVEN TO . ;•ANY AND ALL , OROJIMIE8 OBLIGATIONS UNDER THAT CERTAIN CONSTRUCTION LOAN AGREEMENT BETWEEN . OF EVEN OA.-HEREWITH.ANY EVENT OF DEFAULT UNDER THE CONSTRUCTION LOAN AGREEMENT.OR ANY OF THE•• TED • • r"TO TT 11.MALL ALSO SE AN EVENT OF DEFAULT UNDER Tlas OM OF TRUST.THUS DEED OF • ' +' THE FOLLOWING TERMS: PAYMENT AND PERFORMANCE EmmaEm as oatenefw prodded In Edo• of T• • • as.a4adt sassed by this Osed of Trust as Say bears d m,and slid strledy end In a Emory ... • remora obagWWors under the Nate,dill Deed of Trust.and lh.Reim=Doeurrime 1 • PURPOSE OF LOAN.to Larder to GranNato tor m ernoura of M ,201$a�'Orantars,• d ` m whore. /other EranceU tiers adVartmtl arrinined CONSTRUCTION MORTGAGE. Ths Deed of Truer Is a"-. • ' ...T W•• of Sailors 11.334 Dad 2A-300 of Ore Udlonn Cone edsi axle.es those seedcase hire been adopted by•Ai PO49FRSION AND MAINTENANCE OF'THE ... PROPERTY. p and use of the Properly stunt be g ow=by the Iloilo/Wry mobilorm: /1 Possession and Use. Ara the occurrence of as ^ of ; • 1) remahr In possession aret coned of the Proper1. (2) use,operas or into a to Propertyand (3I .-.-- ' , the• ..-• . Duly to W ntubi. Grantor trust mintasu are - •• v tenantable condtlen ertd promptly perform ill repose.replace gala,end msintansia nseeNmly to Drowse No pliance With doWennstr ul m Lender that (t) Dor=the penal of Grunters oreetaldp of aim Memory.More his Well no me .. DOsuserd.disposer.Meese or thwsuned Wiese of arty Hmtudorw Substance by any Person cm • • 1 about or born r. Griner has no luwdedge of,or tsuen m bellows this Oven hes been.auospt a prpfomusy•' .• m are .. . - by In wilting, NI any Meath or dulid n of any Emdonmsasl Lowe. (b) any to.,SuneruMon, . st Mo... .. . dfipost,Meese as threatened Memo of any Hasardoua Stfituoa an.under, about or Born die Propaay omen or•-.• d lh.Property,as (c) any.aml a tMooMned ltlpndun or dolls of any kind by any parson • . . end (3) L.•r• es prsMmolly Badoved es and idmowledgsd by Loader In w/Eng,(a)nether Omnmr nor say wad, .._ ._ , .•..wu of the Frowsty shell use,genets*rmrrdemrn.sere.tat,*vow of or Maass y• • hen ens Plaper ,fM Qt) any such aatMly abet Me out aw m d h apNernae with +pp cable sy, . . ._. +` ": �. , end ordbmwsto.Indul thg walkout Reunion a0 EneMw.ne l WWI. Orator sat an Nerds rortres Lender d Ns upso the Property to make such Iaspedou end tote,at Graders erenee,as Larder rosy deem approplse to. . ... • Properly with Yds secsbn or t e Dead of Trust My Inspeadau or tests nada by Lender slid be for • nallened In male any rospatf@Ugr as Usbay on Duo pert of Lander to Giormr or to any •.. conmhud herein me booed an Onntah due duper=b I nvesdgedrg the Properly for Nam• ' \Omdor hereby (I) n oleul end wales any future skims matron Larder for Indemrty wrro art muten b Om Weed • A .. , . Moosuper r Moosup or eth rot mk a der a es y such trim end (2) mien to hndor nlly dotard,ere)told d hamde • !�^`. and ... .. . baass,Nsba des.damps,per t se and muma Midi Lander rosy'drwWy or Memory sustainsustaina sutler. . •- s '• medal of Mee Dad of Trust a e ap s a aonaupue nos of any use.geuamUon,muutae t*.alonga. .- rehtme oawmog price to Grerdofs owrhettstp Of kdeM r Ii 010 Frowsty,wrother or not the Una was as ..Mel been . ,W••... The prwlmmns of this sector al Sn Dead of Trust.inducting the abDgi d an to MdsnrdtL�and Wald, �-• vtse Pm .. + of the Indebtedness and lie sstoud ant mrwyerah on aoons of the Ian of this Deed of Tryst ea st Nrd t not be /'e 4, martby Laken - • . of any Merest in the Property,Miens by foredoom or etkarvrlw. N.' • . • that not agues.conduct or pemdt any rrdsewe nor hermit.penult.or tuner any WOOS or or wets an ar t m e•+r• any..!. d the Property. Withal ureic g 1Ne geosflty of In f r,g e ,Mirka WE not=we,or rant m my deer pony Our •. . . . any Isobar.mina=IbrduW an i ea d gas), de po ),coil,day.saria,sot, or roc* en a waho.a Lender's Prior mitten--..... reultMor cola not oppy to dgW end sasseurrs(such as 9•s ad ea)not owned by Grad*and of ttateh Grantor hss Informed Lender el writing poor m Wanton signing MOM Deed of Trust. Removal e1 taprevonerl. Grouter shall not dame*or remove any Improvements hoot the Real Property%Nthout Wadi prlar written MoMI. Asa conmdan to the femoral of any Impsvernuaa,Lander reay roqubs erase*m nnsbe urenpenwrub stltaday to Larder to rapIsaa mil Improvements with Improvements of et best equal m em. Leaden Rlgis to Eider.Lender and Lenders swots end momenta/as nmy aaer upon the Rad Property t.I n000nlble dorm to sMend to Landers Insre=and to stsped the Rood Prom=for pommel of Grentore compiekn with to tarns and=Mons of this Deed of Trust. Caaagara with Gerienonsrdel Ram berate te. Grantor ImaD promptly comply with at Iasi,are nanws.are reguttane.now or Immafter in effect.of MI govenmewl aNhatles appthasse to the use or omrpancy of the Property,Inda:Omg without ambtfon,the Amenaao WMh DWbESIs Act Grs+ier may omtast In good filth any still low.calmness,or mouth=aM withhold eemplam a Owing my i ' il it Ilfihl a� bI s � ." � $ g $�� $i � Hip i$a¢�'gl ��L - #ll,fi:i . �1 _ 18 ill 4� f9¢ iiblI s 40.11 lit I 1 it z b- I ii � iiii s $ 1i $ iili grg 'tiihhiftii1Pi8 fluill*iJflfl h i- a641' g Sbi IV hi li 11 lt,ihil s . ._ .. :jfr it 'd yviiiiiihk. onbiliogpo l ii 1.211i le III 1 il ft 141011 a ! iiid4!ztii! igi liii € -$ � sa$jj � 111111 III i" la I � � ����eS gg $s,2:810ipiih Nil it gi loop; 1 it,'„ir @s-k 1 . .1 D iii 211 i Pse 2pp I 12 i iii i • is i�i i2iiuispil —, _ Uuiiiii4Us3 ! 34411 ti .� ,ai i ih I ,t s ie. 1 a. il'idi NO191111 ipillit1-1111 Ipi Bfili ; 11:1,111o104101Ibilli'. ll .: a I., ti ,. is l plpihl , " �� S �ip�� �wt.�0 3 1 j �#1111%;111181140s 8a� s ' :' �, f,'8 i ��� � i �� ilt iiiiibill drill 1 lilivith !,... PiJ it9gg ii I LI, l gi lt g aitilifll 3! pia ' I.( 2 iy $ Ti ilithaiiiiiiim 1 qiiip js . a 8b3a 1 i s tis 11 11 sa � � s 4 bli is 12 , i ii 1 r �: ! . ti � 411161, iiii1 ! Cr I5 . i I . I . / 1 ; sit i ei h a iiiii i i spill st 1 ;gip lib 1 �a H ii.Isk: t i. � 1 s ' 'l iil S� � iliui II iii � � � -i. i ii i I 1 li _ i ' 1h4ijVi4Ii!II!iii i hi 'Ph 11 I 1 I ! II! lial E I it NI:414VA'sa 1 1;q1 I il J r � 8 P aqt11111 I 1 li I liflit �� � PA � a r�1 pi �s � 68 egiii:vp ; . - s g1111 ip i iiii mil, `-\-‘-4-f 4 ' 114" I 1111 B 11441 J 1,---- g 11- 1111111 ifi iii iipp Ali ? .x ',nighhsla 51fYI illi I ILI hhh :A- 1 11315 r �g � 8 � 8 qq, i 'v' " ' i pipit!. t . 1'zi ii iiiiii 5$3i 11 pillE 8 n' r -ire. li ha $ i r 8 -- y 88 i i - /. , ei .!Intl! ' iiiIii 2,_-7-N . - Ili ,: 1114'411 � 01111111 � $8Si � f �41!I 8b� b� �» II 11111111 �� �'Fiiirl ;nsgi 12 ,45.1pfi i � •� b � �8y`:i.; •p.,1110 P liff.E- tt la � iri r 8i 8g` 8 iiie i 8b 8a 8;T. ' Millis 8ii ',bli pT l = 8 I a dig Ohl dg 13 II . . i ! l ! i Mi ;Ili bl 11h1'8i' B� i1 i 1 sji A € 1IisI. is if i I'ls its 1 ill ii iii. 411;1 i lig ii 1 : i -i [ F- - is i eilbOld ! M} Ifl ' III 1„t 1 1 a I ill . .3 . . ,s . : ill , , . b i II 1b 1 i I PM1 JItIj 0111.11111 il hi fil -i'i'kg''-(! ‘1! j. lifr:1 11110 *hill ollioio I ogititt. iii :Immo I. da, ,ii liF .--.. ....!4 14 : 4 2!ealp NO iip, 11121 . :il ibblimil !II ' li ail liell i! 20 i y hgli i il ..,4-t-iii ! ii---oe or t F ti 111111ff lilt I'! ! 1 #itU i -A:i gi'l tiqMiItt fUlfill rV- sinit is i hi!"1' Ell 1111111 . • .. cgs 12 i a- II ill!11114 DI II i 1 li! itilii Pi i lliii ilai - leilF:.iPP . zlihs i IP .1111. ill i b siligillit 111 'I III ill PO41411 lifir 11.1"iiii '-!.- i_/. "7-.:*:.1: 1 iliPetiv AP i gill! tolfifii tp 41. 31 I 11014 kali hal 11 gypsy 111 . -e,] 1,1[ i re:$.1, b 2119911 41 1 r op iti- IIIL 14_ it g " - ilvini Ir i i 11 h b� b b � ` � g tflpi � b �^�s� ads � its., ,ig, igs I . �. : � .�' .ga -11. r 2 grail i ilss aa : - 1*. : . H 111 i I " tm hi 1 1 , fer iln puip ivii ?. - 1 132- brill, iiiiiidsv -iiraiiiiitifiliffizhildvidiLif„fiat s c t: . . $eIflI lU o 'I1'4111 III ig fi : .* .4 I. I1II'I1II IIIPJ lit 'I % ems. - � �..- _ iF ar 101 '1111 t !a!7`ee .�•.1.r �� Fir:11. '�� �II g i il IRE it ri Pi � XI'; itILlittliIII gJar Ii S9zi Pow R I w 'IR :it ii '7.-,,t, „i ", J-7'': 7ILI di g oils30 44-4 ti; fl 111 ila 5. 1 1 PIP li R R IbiliVjkjflo i i 22 IlI4h NJ ytq il 10 01 tViiIIIj :6j 6II !Ra . 1 8 \ h- IiIjh WII 'L $ii :total 1 -, : 147 1 , tp, 11,-cid 1 21 i p li gill d 0 IMI o El $ liro II 1 ! SA 2 [ a !I i 1' pi id 3 till gl I. � ig ■ ' g $ 11111jfl sg it,'_ :; s. 7 P it fig! tlqiili i li li iii'. ,l'Ur if **-41111 191I la 11 I i ; . P1115 411 21 I ! a I ill" 11 ili NH an o 1 iqp. g i iliti r.M.1 pi NI li d' i!II 1 1 _ ; . - - o it Ri i 1 e R gaIdi 6 3 ai r.f _ g 1 14;11 �€ o � id � � ii4 �C �_ 0 3.: �+ 5111 � � !NOP I ii ,.� _ II, . I $ illi� 4 it --� .4 15It p � itit 6 , Alt 1 gs Ai m 8 s6 8l sAig g:A.1',--q. 'TV a ,R Pliii i 1111111 if I to a IIIIJ illIiñ11 ;lit! 11111 1 U tilo 1 R. J21114:11 DEED OF TRUST Loan No:104406146 (Continued) Pip 6 epedllwly'lead to the contrary,at!gfaan:es to dollar smuts shell MMN'mount&N Wrad money of the Unwed States of kneels . Wads end semi used In the slndWar shall Ndude the pbral.and the p urst shag Include the stnoutar,as the wiled lily reohdra. Wads old bans nol otherwise defined In ads Deed of Taut still hens the maydays MIrrbutad to such two In the Uniform Canes ctiI Coda•. Beneficiary.The word'Beneninclere means INWOOD NATIONAL.BANK and is shhmsuas and melons. Barowar. The word'Borrower raw Palm Properties U.0 and Includes all caelphas and ci.malhete depth.the Note and w melt succemers and asef9+hs. Deed of Taut.The words'Creed of Trust'mean this Deed of Trust am rq grantor,Lender,and Trustee.and Indudm without dndlet.on eg ssalgnmant end security Interest poistons Wean to she Personal Property and Rena. Odsult.The weed'Detour Meets the Default sat bath In this Oast of Trust In the section Med'Datsur. Emrlrmmuntd Law. Thu wards'Endronmentd Laws'mean any and ell sate.federal end loaf statutes s end adheres* aletng to la protstden of room health or the owhonmenl.including without IlmIte on the ComprehwmNee Response, Corpaheulon,and Loudly Ad of 1910.es amended.42 U.S.C.Sedan 9601,eI up.FCERCLA'J,the Soperhand Amahhtmads end Rermthwgsdon Act of 1988,Pub.L No.99-499 rSARA'}.the tfamdaw Materiwl Tra grandon Act.49 U.B.C.Sedan 1801.et no.. the Resource Conservator and Recovery Act,42 U.S.C.Section 6901.el um..or other eco'able sate or federal Isms,rules,or reyhdadmhs adopted paauerd thereto. Ewa of Deland. The words'Event of Default'mom any of the events of default sat forth In Ids Deed of Trust in the of datsult melon of ode Deed of Trust. Meng Indebtedness, The words'EdWrto Indebtednsu'mien the bndeetedrau dssalhed a the Esistlr9 Lane m of Trust Orsal r.The word'Grantor meats Para Pr pelte LLC. Ouwndor.The word'Ousantor means my guaador.suety,or scconewodadah panty of any or of of the• . Gusranty The wad'Lluasmyr Tuna to gushily hen GuaranMa to Lander.Including without amtafian s. . pat of Natardous SubsOwse. The words'tlasardous Substmces'Tenn ram 111i*that.battle of shah quanfly.`•" y Carried our idedous dhsaede a.may caws or pose a proem or colander hated to r:. health or k • when it-apedy used. treated,stored deposal of, gahaaled.maadugaed,gimbaled a .• • r herded. r . . 'tlaserdous SubiWo,a'ere treed In their very bhasdes scrag end bUda+Memel anWallmn any end d or redo '•. ..... matartets or worts n dented by or lead under the Envienranal Laws.The term'itswsdcus Subteen:es" . ,MAMMA` . predawn and petroleum*products at am heddon thereof and mmemes. Improvement& The word Irnprovernientr means el wed Red Properly,lad ices.ads orm upteeemed*end ether . m ion t he Real- .•...!, he an die T ... . tedabtsd4eee. The word'hdahtadnaa'mean at prMhdpd Interest and Me •. caste phi wrier the Fiala or Related Dowunenb6 mother with el renewal'of,eeewlons d,moelantons • of • . !•. ,. • for the Nets a Related OocoraiU and amp amouma aparded Cr advenad by Lander b••' - eb9gelara•j eapwass Inured by Truss or Lander to Waco Onerdols ettcedaa under th a Owed of Trust,-.. . _ with " en such • . • es prodded In Oda Deed of Trust. Lender.The ward'Lender maw INWOOD NATIONAL.BANK.he Note. The word'Rohr moans the proedee ry note dated May 31, ; a.In •,. • .Ifts . tunOYRL of SSS,S41.18 elan Granter toLadar.bget of rigs et reraw is of.seenians of. . et,eawotdaltons of.end aubatthdtarn for the poralseary nuts or.leement Paschall Property. The words"Personal Properly mesh st .F•• • and ••. . r(.'• of personal property now or hareem anal by Gr-.m argil now our Irfaaller meshed our sinew•.• Reel- : , •, el eeasslchs,pone.aril sddldone b,at replacements d,end at subattadens for.any of such . •. •. - •. •..•�;..•_ , erg ....... big wdtlhad[inflation MI Murano, proceeds and refunds of pamimn)ham any side or., . .°.•-•. - •..Properly. Property. The ward'Propeny'weans ooftsdraly, /in- • •Property. Rut Props y.The words'Real Property"mien.r . a further described le Ohs Deed of Trust. Rotated Decimate. The wards'Ralabdd • �..� . met eynenhenm.loin syreemena,enek naahtal agreements.Waanee,weawty .. . .. trust - •. deeds,eogalsal eattpges,ad sou owe Instruments, egrecnarah and documents.ts.whether now our •41;iii.r• ere riled in cennend wIwth the Indebtedness. Rams. The wad'Rents'mama w• „•future income,Imes,apothem,prolix.old Other benefits derived from the Property. The word"Rage dish ...' • ampler 9d d the Yam Property Code. Usage. T 'Trosaa' � r •.. ....In Tb21 Inwood Reed.Dale,TX 76209 and any substituteor GRANTOR AWO/OrWLFDO881GYMNO ..OF THIS DEED OF TRUST.AND GRANTOR AOREES TO ITS TERM& CRAfITOih / PATNA• 1,-LLC ./`\y,1,fi.0i,ii_ I►:� CC�a[cc�n 4)acf4 rrr•i al�tir..►• �w AYZIA MAMA.M mMe/ Pr.P.Uss d Path LLC DEED OF TRUST Loan No:104406148 (Continued) Page 7 UMITED LIABILITY COMPANY ACKNOWLEDGMENT STATE OF f ixo S 1 wlrsaL wrote �nt{ 1 V1 Is 4 COUNCY OF C"•ki ' ` I Q0 5 $mf •T..,' Comm.Nana 7+2016 Tide wed wan.dmorAe d befog ma on J tint_ 0 201 b by TANVIR A)OIAfl.Manigar of Pam. Plap ardn belief LLC,■member an beli of Paine Properana U.C.a umbod Oddly many. delfr' Ord I` • Notary Publla.:.,.a!7.I ..1111)1P1211' UMITED UABILITY COMPANY ACKNOWLEDGMENT STATE OF C. 1 1 CouNTY OF ( al.7I n 1 a. of TMs In i ganef was advnaRe09ed Worm me an :: Paine Propelling C.9 maebar on belief of Palm Plapee!>a U.C.a Ibnite0 /r t ROSIN GRAY �;I� / r iid /� Notary PoOtk Of Tim 1c11i • Lb. Comm,Wires 11-13- L4eiPm.Ver.15.2.10.0112 Cap.D.H USA CmpogOaa I Wt. lTialme H.1CFN.PIAll.FC Ti420942 PR-4 ASe. C:::::) . Pad tail Reeseds4 Mild Peg&aemede . Ca a L .Cost �k •{` minCaal "L tit 'N 4' 79140414900751910 RECEIVED AUG 0 8 2017 Emails to Councilman ""MANA`" Stephens and Forrester in an attempt to disclose the perceived ethics violations in private with my representatives . B/5/2017 (2 unread)-ialray@yahoo.com-Yahoo Mail Find messages, documents, photos or people F Back 41k <« r♦ r Archive ra Move m Delete. d Spam ••• '""' X Inbox Re: meeting with my representatives. Inbox Unread Keith Stephens <stephens@verrzon net> Apr 19 at 5:38 PM Starred W To:Jal dennis Cc:jforrester98@yahoo corn Drafts 1 Sent I'm not available, I have a meeting scheduled tomorrow evening. Archive Sent from my'Phone Spam On Apr 19. 2017. at 5'31 PM,jal dennis <jalrav( yahoo.com>wrote: Trash I can sit down tomorrow evening if that works for you guys here at my office. V i E?wS 1 1.dt. Photos Jal Dennis 972-429-0603 Documents jalray niahoo.com Tutorials On Wednesday,April 19,2017 3:06 PM,jal dennis <jalravevahoo.com>wrote: Folders + New Folder I want to make it easy on you guys. You are volunteers and I respect that. AAA Saturday mornings are always quiet and I am an early morning guy. Don't know if you both will be available, if so, we can use my office. Accuhealth Amazon American Jal Dennis Atmos 972-429-0603 jalrayQyahoo.com 815/2017 Pnnl Window el X Subject. Re: meeting with my representatives. From. jalray@yahoo.com To: sephens@verizon.net Cc: jforrester98@yahoo.com Date. Wednesday,April 19, 2017, 5:48:52 PM CDT That's ok Keith, don't worry about meeting. I did not want the information I was going to give you shared in public and a restaurant will have the ability for others to hear. God Bless you and thank you for your time. Jal Dennis 972-429-0603 jalray@yahoo.com On Wednesday,April 19, 2017 5:35 PM, Keith Stephens<stephens@verizon.net>wrote: Saturday mornings are usually good with me. I would prefer that we meet in a public setting, maybe coffee at one of the local establishments. . . . Keith Sent from my iPhone On Apr 19, 2017, at 3:06 PM, jai dennis <jalrayla.yahoo.com> wrote: I want to make it easy on you guys. You are volunteers and I respect that. Saturday mornings are always quiet and I am an early morning guy. Don't know if you both will be available, if so, we can use my office. Jal Dennis 972-429-0603 8I512017 Print Window jalray(a.!yahoo.com On Wednesday,April 19, 2017 3:00 PM,JEFFREY FORRESTER <}forrester98@vahoo.com>wrote: Jal, I can sit down with you one evening to discuss. Let me know a day and time that is convenient. Regards, Jeff Sent from Yahoo Mail on Android On Wed,Apr 19, 2017 at 2:14 PM, jai dennis <jalrayeyahoo.com> wrote: I would like to sit down with the two of you and review some information that I think the City needs to know. I have sought council and have been informed that as my City Council Representatives you have the ability to hear what l have to say and then carry this to the council if you deem it appropriate. Pm trying to find a way to put sonic things to bed. Let me know if this is something you are willing to do. Jul Dennis 972-429-0603 jalray ayahoo.com nECf/VED AUG 0 8 zon Ethics Ordinance : u 2014- 19 2015 - hR ORDINANCE NO.2014-19 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, ESTABLISHING A CODE OF ETHICS; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDINANCE; PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF. WHEREAS, the City of Wylie desires for all of its citizens to have confidence in integrity, independence, and impartiality of those who act on their behalf in government; and WHEREAS, this proposed Code of Ethics to define the bounds of reasonable ethical behavior by the City Council and all appointed City Offices. NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS that this Ordinance be adopted in order to promote confidence in the government of the City of Wylie, and thereby enhance the City's ability to function effectively. Section 1. Definitions. In this article: Administrative Board means any board, commission, or other organized body: (1) That has, by law, final decision-making authority on matters within its jurisdiction and that is either: (a) established under the City Charter or by city ordinance, or (b) whose members are all council members or are appointed or confirmed by the City Council; or, (2) Created as a non-profit economic development corporation by the City Council under the authority of the Development Corporation Act of 1979, as amended. Advisory Board means a board, commission, or other organized body other than an Administrative Board,that was created by an act of the City Council whose members are appointed or confirmed by the City Council and are charged with making recommendations to the City Council on matters within its jurisdiction. City Official means a member of the City Council, an Administrative Board, or an Advisory Board. Economic Interest means a legal or equitable property interest in land, chattels, and intangibles,and contractual rights having a value of more than fifty thousand dollars ($50,000.00). Service by a City Official as an Officer, director, advisor, or otherwise active participant in an educational, religious, charitable, fraternal, or civic organization does not create for that City Official an "Economic Interest" in the Ordinance No.2014-19—Code of Ethics Page 1 of 11 property of the organization. "Economic interest" does not include the contract and/or business relationship that the City Manager, City Secretary, City Attorney and/or his law firm, and/or the Municipal Court Judges and Magistrates and/or their respective law firms have with the City." Official Action means: (1) any affirmative act (including the making of a recommendation) within the scope of,or in violation of,an Official's duties; or (2) any failure to act, if the Official is under a duty to act and knows that inaction is likely to affect substantially an Economic interest of the Official. Review Panel means the body charged with reviewing and acting on complaints and requests for declaratory relief filed under this article. Section 2. Covered officials. The rules of ethical conduct contained below apply generally to City Officials unless otherwise specified. Section 3. Officials required to comply with both state and local law. Where a City Official's conduct is regulated by a provision of this article and a similar provision of state law, and it is possible to comply with the requirements of both,a City Official shall comply with both. Section 4. Education. The City shall provide training and educational materials to City Officials on their ethical obligations under state law and this article. Such training shall include at least one formal classroom session in each calendar year.All City Officials shall must annually attend the formal training session offered by the City or equivalent training sessions conducted by the Texas Municipal League or similar organizations.The City also shall prepare and distribute written materials on the subject to each City Official at the time of his or her election or appointment to office. Section 5. Ethical values. It is the official policy of the City that: (A) City Officials shall be independent, impartial, and responsible to the citizens of the City; (B) City Officials shall not have a financial interest, and shall not engage in any business, transaction, or professional activity, or incur any obligation that conflicts with the proper discharge of their duties for the City in the public interest. Ordinance No.2014-19-•Code of Ethics Page 2 of 11 (C) The principles of personal conduct and ethical behavior that should guide the behavior of City Officials include: 1. A commitment to the public welfare; 2. Respect for the value and dignity of all individuals; 3. Accountability to the citizens of the City; 4. Truthfulness; and 5. Fairness. (D) Under such principles of conduct and ethical behavior,City Officials should: 1. Conduct themselves with integrity and in a manner that merits the trust and support of the public; 2. Be responsible stewards of the taxpayers' resources; and 3. Take no official actions that would result in personal benefit in conflict with the best interests of the City. (E) To implement the principles of conduct and ethical behavior set out above, the City Council has determined that it is advisable to enact rules of ethical conduct to govern City Officials. It is the purpose and intent of City Council to assure a fair opportunity for all of the City's citizens to participate in government, to adopt standards of disclosure and transparency in government,and to promote public trust in government. Section 6. Rules of Ethical Conduct for City Officials. The rules of ethical conduct contained below, are intended not only to serve as a guide for official conduct, but also as a basis for discipline of City Officials who do not abide by them. (A) Appearance on behalf of private interests of others. (1) A member of the City Council shall not appear before the City Council, an Administrative Board or an Advisory Board for the purpose of representing the interests of another person or entity. However, a member of the City Council may, to the extent as otherwise permitted by law, appear before any such body to represent the member's own interests or the interests of the member's spouse or minor children. Ordinance No.2014-19-Code of Ethics Page 3 of 11 (2) A City Official who is not a member of the City Council shall not appear before the body on which he or she serves for the purpose of ...1representing the interests of another person or entity, and shall not appear before any other body for the purpose of representing the interests of another person or entity in connection with an appeal from a decision of the body on which the City Official serves. However, the City Official may, to the extent as otherwise permitted by law, appear before any such body to represent the City Official's own interests or the interests of the City Official's spouse or minor children. (B) Misuse and disclosure of confidential information. (1) It is a violation of this ethics code for a City Official to violate V.T.C.A., Penal Code,§39.06 (Misuse of Official Information), as amended. (2) A City Official shall not disclose to the public any information that is deemed confidential under any federal, state, local law, or council rules, unless required by law. (C) Restrictions on political activity and political contributions. (1) No City Official or candidate for City Council shall meet with any employee or group of employees of the City for political campaign purposes while such employees are on duty. (2) No City Official shall, directly or indirectly, coerce or attempt to coerce any City employee to: (a) Participate in an election campaign, contribute to a candidate or political committee, or engage in any other political activity relating to a particular party,candidate,or issue; or (b) Refrain from engaging in any lawful political activity. (3) The following actions by City Officials are not prohibited by this section: (a) The making of a general statement encouraging another person to vote in an election; (b) A solicitation of contributions or other support that is directed to the general public or to an association or organization; and (c) The acceptance of a campaign contribution from a City .1 employee. Ordinance No.2014-19 -Code of Ethics Page 4 of 11 (4) No City Official shall use, request, or permit the use of City facilities, L personnel, equipment, or supplies for the creation or distribution of materials to be used in a political campaign or for any other purpose in support of a political campaign. However, meeting rooms and other City facilities that are made available for use by the public may be used for political purposes by City Officials under the same terms and conditions as they are made available for other public uses (D) Use of cell phones or electronic devices during meetings. City Officials shall refrain from using cell phones or electronic devices during a meeting unless it is for the purpose of accessing agendas and information relevant to the agenda. Cell phones shall be turned off or put on vibrate during meetings. Should it be necessary to use a cell phone, City Officials shall step out of the meeting. Text messaging,emails and other written communications shall not be sent during a meeting unless it is an emergency. (E) Use of City letterhead and logo. The City's name, letterhead and logo are not to be used for non-City business or purposes. City Officials shall not use the City letterhead or other materials for personal correspondence, in connection with non-City business such as personal L fund raising for charitable causes, endorsements, or other types of personal business. Section 7. Board of Ethics. (A) Creation and appointment. There is hereby created a Board of Ethics to consist of five members and two alternates.The purpose of the Board shall be to issue advisory opinions and waivers on ethical issues arising under this article and to hear inquiries or complaints and issue findings and recommendations regarding alleged violations of this article. Prospective Board of Ethics members shall be interviewed by the entire City Council. (B) Qualifications. (1) All members must live within the city of Wylie city limits. (2) Members may not serve on any other Council appointed Board or Commission during their term on the Board of Ethics. L (3) No City of Wylie employee can be on the Code of Ethics Board. Ordinance No.2014-I 9-Code of Ethics Page 5 of 11 (C) Terms of appointment. No Board of Ethics member may serve more than two (2) consecutive years (with .1 the exception of the inception to achieve staggered terms.) (D) Removal. The unexcused absence of any member of the Board of Ethics from three (3) consecutive meetings, unless the Board has excused the absence for good and sufficient reasons as determined by the Board, shall constitute a resignation from the Board. A member may be removed for inappropriate conduct before the expiration of the member's term. Before removing a member, the Board of Ethics shall specify the cause for a recommendation of removal and shall give the member the opportunity to make a personal explanation. Then the recommendation shall be brought to the City Council for an official vote by Council. If the recommendation is regarding a City Council member that member shall be exempt from the vote. E. Consultation with city attorney. The Board of Ethics may consult with the city attorney or a designee of the city attorney regarding legal issues which may arise in connection with this article and .1 may request advisory assistance from the city attorney in conducting hearings on inquiries during any stage of the process. F. Advisory opinions and waivers. (1) Any current elected officials or board/commissions member or anyone seeking to become an elected officials or board/commissions member may submit a written request to the Board of Ethics for advisory opinions on whether any conduct by that person would constitute a violation of the Code of Ethics. The Board of Ethics shall render an advisory opinion pursuant to written rules adopted by the Board, but in no case shall the Board take longer than six (6) weeks from the time it received the request to issue an advisory opinion or to give written notice explaining the reason for delay and stating an expected issuance date. (2) Any current elected officials or board/commissions member or anyone seeking to become an elected officials or board/commissions member may submit a written request for a waiver of any provision of the Code of Ethics. The Board of Ethics is empowered to grant a waiver if it finds that the waiver will serve the best interests of the City. The Board shall issue appropriate notice of its meeting on the waiver and its meeting shall be open to the public. The Board shall .1 Ordinance No.2014-19—Code of Ethics Page 6 of 11 either issue or deny the waiver within six (6) weeks of receiving the L request. G. Complaints or inquiries to the Board of Ethics. Any person may file an official written complaint or inquiry with the Board of Ethics asking whether a current elected officials or board/commissions member has failed to comply with this code of ethics. Prior to review by the Board of Ethics, the city attorney shall first determine the following: (1) If the Board of Ethics has jurisdiction over the alleged violation,and; (2) If the alleged violation, if true, would or would not constitute a violation of this article. Subject to the rules adopted by the Council pursuant to section 7.H., the Board of Ethics shall: (1) Conduct a hearing in a meeting, which shall be open to the public on L all official written complaints or inquiries which have not been dismissed pursuant to paragraph G of section 7 or resolved under paragraph F of section 7. (2) Except as otherwise provided in this article, make public written findings and recommendations, if any, on complaints or inquiries. Board findings should characterize the seriousness of the violation, if any. (3) The City Manager or the City Attorney shall inform the person who is the subject of the complaint or inquiry and the person who submitted the complaint or inquiry of the Boards' findings, and recommendations; and (4) If the Board feels corrective action may be necessary, it must make its recommendations to the City Council in writing. The Board may propose actions appropriate to the finding, ranging from a recommendation that the person abstain from further action on the matter or seek a waiver, to adopting a resolution reprimanding the person. (H) Procedures for complaints or inquiries. L The City Council shall adopt written rules to govern the Board of Ethics in order to create a process that is fair both to the person who submitted the complaint or Ordinance No.2014-19-Code of Ethics Page 7 of 11 inquiry and the person who is the subject of the complaint or inquiry. In addition to rules which the Board may in its discretion adopt,the rules shall: (1) Establish time lines for all aspects of its handling of complaints or inquiries. The time lines shall be sufficiently long to enable a person who is the subject of a complaint or inquiry to have adequate time to understand the complaint or inquiry and prepare a response. The rules shall allow the Board to alter the time lines upon a request of the subject of a complaint or inquiry for more time to prepare; (2) Require the complaint or inquiry to be in writing on a form approved by the Board, to be signed, and to show the home or business address and telephone number of the person who submitted it. The form shall contain a statement that must be signed and which states that, to the best of the person's knowledge, information, and belief formed after reasonable reflection, the information in the complaint or inquiry is true. The rules shall require the complaint or inquiry to describe the facts that constitute the violation of this Code of Ethics in sufficient detail so that the Board and the person who is the subject of the complaint or inquiry can reasonably be expected to understand the nature of any offense that is being alleged; (3) Prohibit the Board from accepting complaints or inquiries about .1 actions that took place or became known to the complainant more than six (6) months prior to the date of filing; (4) Require the Board to notify the person who is the subject of the complaint or inquiry that a complaint or inquiry has been filed. The rules shall require the Board to provide the notification in a timely manner, but no more than five (5) days from the day the complaint or inquiry was filed. The rules shall require the notification to include a copy of the full complaint or inquiry; a copy of any portion of this article that is alleged to have been or that may be violated; and the Board's rules for dealing with complaints or inquiries; (5) Require the Board to provide the subject of the complaint or inquiry with a copy of the complaint or inquiry before it provides copies to any other parties. The rules shall recognize that distribution to the public of a complaint or inquiry prior to screening by the Board as required in below could harm the reputation of an innocent person and is contrary to the public interest; therefore, the rules shall prohibit the public release of the complaint or inquiry until the screening process in below has been completed; (6) Require the Board or a committee of the Board to meet within thirty- one (31) days of receiving a complaint or inquiry to screen the Ordinance No.2014-19—Code of Ethics Page 8 of 11 complaint or inquiry. The rules shall allow the Board to immediately L dismiss a complaint or inquiry if: a. The alleged violation is a minor or de minimis violation; b. The complaint or inquiry is, on its face, frivolous, groundless, or brought for purposes of harassment; c. The matter has become moot because the person who is the subject of the complaint or inquiry is no longer an elected officials or board/commissions member; d. The person who is the subject of the complaint or inquiry had obtained a waiver or an advisory opinion under section 7.F. permitting the conduct. The rules shall require the dismissal and the reason for dismissal to be in writing and available to the public. (7) Require the Board to have hearings at meetings, which are open to the public on complaints or inquiries, which have not been dismissed pursuant to paragraph G of this section or resolved under paragraph F of this section. (8) Allow any person who is the subject of a complaint or inquiry to designate a representative if he or she wishes to be represented by someone else, to present evidence, and to cross-examine witnesses, The rules shall allow the person who submitted the complaint or inquiry and the subject of the complaint or inquiry sufficient time to examine and respond to any evidence not presented to them in advance of the hearing; (9) Require deliberations on complaints or inquiries to be conducted in open session; (10) Allow the Board to dismiss a complaint or inquiry without a finding for or against the subject of the complaint or inquiry if the person committed the violation due to oversight and comes into voluntary compliance; (11) Allow the Board to dismiss a complaint or inquiry if the person who submitted it does not appear at hearing and if, in the opinion of the Board, it would be unfair to the subject of the complaint or inquiry not L to have the opportunity to examine the person. The rules shall, however, require the Board to schedule the hearing at a time that is reasonably convenient to both the person who submitted the complaint or inquiry and the subject of the complaint or inquiry; Ordinance No.2014-19—Code of Ethics Page 9 of 11 (12) Require the Board to base a finding of a violation upon [clear and convincing evidence]; (13) Require the Board to inform the person who submitted the complaint or inquiry and the subject of the complaint or inquiry in writing if it believes a complaint or inquiry is frivolous, groundless, or brought for purposes of harassment; (14) Prohibit members who have not been present for the hearing from participating in a recommendation; (15) Require that findings and recommendations be made only by a majority of the Board; (16) Allow the Board to consider, when it makes findings and recommendations, the severity of offense; the presence or absence of any intention to conceal, deceive, or mislead; whether the violation was deliberate, negligent, or inadvertent; and whether the incident was isolated or part of a pattern; (17) Allow the Board to issue an advisory opinion in response to a complaint or inquiry, in lieu of making findings and _I recommendations,where deemed appropriate by the Board. Section 8. Other Obligations. This Code of Ethics is cumulative of and supplemental to applicable state and federal laws and regulations. Compliance with the provisions of this Code shall not excuse or relieve any person from any obligation imposed by state or federal law regarding ethics, financial reporting, lobbying activities,or any other issue addressed herein. Even if a City Official is not prohibited from taking official action by this Code of Ethics, action may be prohibited by duly promulgated personnel rules, which may be more stringent. Section 9. Effective Date. This Code of Ethics shall take effect on May 28, 2014, following its adoption and publication as required by law. Every person shall be provided reasonable opportunity to review this Code of Ethics as a condition of their candidacy and/or application to be a City Official. Individuals seated as City Officials on the effective date of this Ordinance shall be bound by it and shall sign a written acknowledgement of receipt and understanding of this Code within 30 days of the effective date. All City Officials elected, appointed or retained following the effective date of this Code shall sign a written acknowledgement of receipt and understanding of this Code before performing any of the duties or functions of the City Official's position. Ordinance No,2014-19—Code of Ethics Page 10 of 11 Section 10. Distribution and Training. (A) At the time of application for a position of City Official, every applicant shall be furnished with a copy of this Code of Ethics. No application shall be considered complete without a signed acknowledgement of receipt and understanding of this Code by the applicant. (B) The City Attorney or City Manager as designated by the City Council shall develop educational materials and conduct educational programs for the City Officials on the provisions of this Code of Ethics, Article XI of the City Charter, and Chapters 171 and 176 of the Texas Local Government Code. Such materials and programs shall be designed to maximize understanding of the obligations imposed by these ethics laws. Section 11. Severability. If any provision of this Code is found by a court of competent jurisdiction to be invalid or unconstitutional, or if the application of this Code to any person or circumstances is found to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the other provisions or applications of this Code which can be given effect without the invalid or unconstitutional provision or application. DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS,on this 20th day of May, 2014. Eric Hogue, M y ATTESTED AND -- - CORRE LY RECO E : ,t4 OFWI , G4.rr�•( - Caro e Ehrlich, ecretary l� ,landL r i r.- ,.,,, r •�• ' {,:,fir DATES OF PUBLICATION: May 28.2014 In the Wylie News .14 rs Iyt s 11887• -goo or law— Ordinance Ordinance No.2014-19 -Code of Ethics Page 11 of 11 U&S TIIc 31.1tuurisb1IIr T'GIm • ‘lurplt< '4Ioniti.r • the I'rin.rtiln I Icraid • - • THE WYLIE\£WS (0), Le(r STATE OF TEXAS COUNTY OF COLLIN Before me, the undersigned authority, on this day personally appeared Chad Engbrock, publisher of C& S Media,dba The Wylie News,a newspaper regularly published in Collin County,Texas and having general circulation in Collin County, Texas, who being by me duly sworn, deposed and says that the foregoing attached: City of Wylie Ordinance No. 2014-19 was published in said newspaper on the following dates, to-wit: May 28, 2014 Chad Engbrock, Publisher Subscribed and sworn before me on this,the ' day of , 2014 to certify which witness my hand and seal of office. t. dinad Sonia A.Duggan / Notary Public i for Co,,,,,, ,BpiresThe State of Tex s 09-02-2016 My commission expires \11rphti \l.h,r.\t I '.Hf..-• I II ail•I'c: It. ,!,r•!1) 1+ IN -in't:4•+'i.i4' :i1S.I,c'I`. u: I trn1,r. :Il, I'rincet..n t;Ilirr• I III S will•1,0 1i . +I?•I Filmy ilk I X 7 -1..4 •'J r•I IN 4:2 �1�11t_ May 28 -May 29,2014 { ORDINANCE NO.2014-19 AN ORDINANCE OF THE CITY OF WYLIE, TEXAS, ESTABLISHING A CODE OF ETHICS; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS ORDI- NANCE; PROVID- ING FOR REPEAL- ING, SAVINGS AND SEVERABIL- ITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE ; AND PROVID- ING FOR THE PUBLICATION OF THE CAP- TION HEREOF. 3-lt-26-339 RESOLUTION NO.2015-11(R) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS ADOPTING RULES OF PROCEDURES FOR THE BOARD OF ETHICS WHEREAS, the City Council of the City of Wylie desires for all of its citizens to have confidence in the integrity, independence, and impartiality of those who act on their behalf in government; and WHEREAS, this proposed Rules of Procedure for the Board of Ethics sets out the guidelines by which the Board of Ethics will review and act on all inquiries; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,TEXAS: SECTION 1: The following rules shall govern the Board of Ethics: A. Creation and Membership The Board of Ethics (Board) is created by Wylie Ordinance 2014-19 and serves at the will of the City Council. The Board shall consist of five(5) regular members and two(2) alternates who will serve no more than one (1) term of two (2) years, with the exception of the inception to achieve staggered terms. The members will be resident citizens of the City and may not serve on any other Council appointed Board or Commission during their term. City of Wylie employees may not serve on the Board. The Board members are required to complete Open Meetings Act training and receive Certificate of Completion by the first ninety(90) days of first year appointment. B. Powers and Duties of the Commission In response to an inquiry, the Board shall issue advisory opinions and waivers on ethical issues arising under Ordinance 2014-19. In response to a complaint, the Board shall issue findings and recommendations to the City Council regarding alleged violations of Ordinance 2014-19. C. Officers The Board shall select from among its members in the first meeting (and at such other times as these offices may become vacant), a Chairperson and Vice-Chairperson to serve for a period of one(1) year. In the absence of both the Chairperson and Vice-Chairperson,the Commission shall elect an Acting Chairperson. D. Officers Duties The Chairperson shall preside over all meetings and perform all duties as required by law. The Vice-Chairperson shall assume all duties of the Chairperson in the absence of the Chairperson. E. Quorum A quorum shall consist of three(3) members. No matters may be handled without the presence of a quorum and all votes shall be by a majority of members present. Resolution No.2015-11(R) Adopting Rules of Procedures for The Hoard of Ethics F. Conflict of Interest Should any member of the Board feel they have a conflict of interest with an agenda item before the Board, they should fill out a conflict of interest form prior to the meeting and openly declare same before discussion proceeds. The member is thereby prohibited from discussing the item or voting on the question. G. Abstention Should any member of the Board choose to abstain from voting on any question before the Commission, where no declared conflict of interest exists, their vote shall be recorded as an affirmative vote in the official minutes of the City of Wylie. H. Agendas An agenda shall be prepared by the City Manager or his her designee for each meeting of the Board. The agenda shall be posted as required by law seventy-two (72) hours prior to the meeting. 1. Meetings The Board shall meet as necessary at 6:00 pm in the Council Chambers of the Wylie Municipal Complex, unless noted otherwise. All meetings shall be open to the public, and the public is encouraged to attend. The unexcused absence of any Board member from three (3) consecutive regularly scheduled meetings, unless excused by the Board for good and sufficient reason as determined by the Board,shall constitute a resignation from the Board. All meetings shall be held in full compliance with the provision of state law, ordinances of the City and these rules of procedure. J. Minutes of Meetings Minutes of all meetings shall be kept by the City Secretary, and are subject to amendment and ratification by the Board at a regular meeting. The minutes of the Board proceedings shall show the overall vote or if absent or failing to vote,shall reflect that fact. K. Complaint or Inquiry Form Complaints or inquiries shall be in writing on a form approved by the Board. Complaints or inquiries shall be signed and show the home or business address and telephone number of the person who submitted it. The form shall contain a statement that must be signed and which states that, to the best of the persons knowledge, information, and belief formed after reasonable reflection, the information in the complaint or inquiry is true. The complaint or inquiry shall describe the facts that constitute the violation of the code of ethics in sufficient detail so that the Board and the person who is the subject of the complaint or inquiry can reasonably be expected to understand the nature of any offense that is being alleged. L. Complaint or Inquiry Process 1. The Board or its designee will not accept complaints or inquiries about actions that took place or became known to the complainant more than 6 months prior to the date of the filing of the complaint. Resolution No.2015-1 l(R) Adopting Rules of Procedures for The Board of Ethics 2. The Board or its designee shall notify the person who is the subject of the complaint or inquiry that a complaint or inquiry has been filed in a timely manner, but no more than five (5) days from the day the complaint or inquiry was filed. The notification shall include a copy of the full complaint or inquiry; a copy of any portion of Ordinance 2014- 19 that is alleged to have been or that may be violated; and the Board's rules for dealing with complaints or inquiries. The Board or its designee shall provide the subject of the complaint or inquiry with a copy of the complaint or inquiry before it provides copies to any other parties. 3. The distribution to the public of a complaint or inquiry prior to screening by the Board as required could harm the reputation of an innocent person and is contrary to the public interest; therefore, the public release of the complaint or inquiry shall be prohibited until the screening process has been completed. 4. Prior to the review by the Board, the City Attorney shall first determine: a. If the Board has jurisdiction over the alleged violation; and b. If the alleged violation, if true, would or would not constitute a violations of Ordinance 2014-19. M. Action of the Board The Board shall meet within thirty-one (31) days of receiving a complaint or inquiry to screen the complaint or inquiry. The Board shall schedule the hearing at a time that is reasonably convenient to both the person who submitted the complaint or inquiry and the subject of the complaint or inquiry. The Board may alter the time line upon the request of the subject of a complaint or inquiry for more time to prepare. 1. The Board may immediately dismiss a complaint or inquiry if: a. The alleged violation is a minor or de minimis violation; b. The complaint or inquiry is, on its face, frivolous, groundless, or brought for purposes of harassment; c. The matter has become moot because the person who is the subject of the complaint or inquiry is no longer an elected officials or board/commissions member; d. The person who is the subject of the complaint or inquiry had obtained a waiver or an advisory opinion under Paragraph F of Section 7 of Ordinance 2014-19 permitting the conduct. e. The person committed the violation due to oversight and comes into voluntary compliance; f. The person who submitted the complaint or inquiry does not appear at hearing and if, in the opinion of the board, it would be unfair to the subject of the complaint or inquiry not to have the opportunity to examine the person. 2. If the Board dismisses a complaint or inquiry, the reason for dismissal shall be in writing, submitted to the person who submitted the complaint or inquiry, and made available to the public. Resolution No.20154 1011 Adopting Rules of Procedures for The Board of Ethics N. Hearings The board shall have hearings at meetings, which are open to the public, on complaints or inquiries which have not been dismissed pursuant to paragraph G of Section 7 or resolved under paragraph F of Section 7 of the Ordinance 2014-19. The Board shall allow any person who is the subject of a complaint or inquiry to designate a representative if he or she wishes to be represented by someone else, to present evidence, and to cross-examine witnesses. The Board shall give the person who submitted the complaint or inquiry and the individual who is subject of the complaint or inquiry sufficient time to examine and respond to any evidence not presented to them in advance of the hearing. Hearings will be conducted following the general guidelines listed below: 1. Introduction of agenda item by the Chairperson; 2. Report by the City Manager, City Attorney or designee; 3. Presentation by complainant; 4. Presentation by the individual,or their representative,who is subject to the complaint; 5. Questioning by the Board of the complainant; the individual, or their representative, who is subject to the complaint; witnesses with information relevant to the complaint; 6. Commission query of Staff; 7. Commission discussion and action pertaining to the issue of the hearing. O. Evidence Only relevant evidence and testimony will be received. Information and other physical evidence should be submitted to the Chairman of the Board or designee prior to the meeting. Any Board member having new factual information regarding agenda items shall make that information known to all Board members. P. Deliberations and Findings Deliberations on complaints or inquiries arc to be conducted in open session. Board members who have not been present for the hearing shall not participate in formulating a finding or recommendation. In determining their findings or recommendations, the Board shall: 1. Base a finding of a violation upon clear and convincing evidence. 2. Take into consideration the severity of the offense; the presence or absence of any intention to conceal, deceive, or mislead; whether the violation was deliberate, negligent,or inadvertent;and whether the incident was isolated or part of a pattern. 3. Have the option to issue an advisory opinion in response to a complaint or inquiry, in lieu of making findings and recommendations,where deemed appropriate. If the Board finds that a violation of Ordinance 2014-19 Section 5 or Section 6 has occurred, it shall make one of the following recommendations to Council: Resolution No.2015-1 1(R) Adopting Rules of Procedures for The Board of Ethics 1. If the Board finds that the accused has committed a minor violation, the violation was unintentional, and the accused fully cooperated with the investigation, the Board may issue a notice titled "Notice of Minor Violation" and shall state the findings of the Board. 2. If the Board finds that the accused has committed a major violation, acted intentionally, or failed to cooperate with the investigations, the Board may issue a notice titled"Notice of Public Censure",and shall state the findings of the Board. 3. If the Board feels that corrective action may be necessary, it must make its recommendations to Council in writing. All findings shall be in the form of a motion. A motion to approl,c any matter before the Board or to recommend any action shall require a majority favorable vote of the members present Failure of the Board to secure a majority concurring vote to approve or recommend action shall be recorded in the minutes as a failed motion. SECTION 2: This Resolution shall take effect immediately upon its passage. RESOLVED this the 14th day of April, 2015. ERIC HOGUE, Mayor ATTEST TO: CAROLE EHRLICH, City Secretary Rcso.ution No 2015-11(R) Adopting Rubs of Procedures for The Board of Ethics 4'eceve.0 AUG 0 8 201? afiFiae afi rNe cRy MgHaGE Wylie EDC Minutes November 20, 2015 Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, November 20,2015-6:30 A.M. WEDC Offices-Conference Room 250 South Highway 78-Wylie,'Texas CALL TO ORDER Announce the presence of u Ouorum Vice President Mitch Herzog called the meeting to order at 6:30 a.m. Board Members present were Demand Dawkins and Todd Wintters. Ex-officio members Mayor Eric Hogue and City Manager Mindy Manson were present. WEDC staff present was Executive Director Sam Satterwhite and Sr. Assistant Angel Wygant. CITIZEN PARTICIPATION Lynn Grimes was in attendance and reminded the Board about the upcoming Wylie Arts Festival on December 5th. She encouraged the Board to attend and thanked them for their support. With no further citizen participation, Mr. Hering proceeded to Action Iterns. ACTION ITEMS ITEM NO. 1 - Consider and act upon approval of the October 16, 2015 Minutes of the Wylie Economic Development Corporation(WEDC) Board of Directors Meeting. MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins to approve the October 16, 2015 Minutes of the Wylie Economic Development Corporation as amended. The WEDC Board voted 3 - FOR and 0-AGAINST in favor of the motion. ITEM NO. 2 - Consider and act upon approval of the October 2015 WEDC Treasurer's Report. MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins to approve the October 2015 WEDC Treasurer's report. The WEDC Board voted 3-FOR and 0- AGAINST in favor of the motion_ ITEM NO. 3 - Consider and act upon a First Modification to Loan Documents between The American National Bank of Texas and the WEDC. Staff reminded the Board that on September 23, 2015 the WEDC executed Loan Documents associated with the borrowing of S1,685,000 to fund the purchase of the Linduff property on WEDC—Minutes November 20, 2015 Page 2 of 6 Business Way and the Edge property on State Highway 78. At the time the Loan Documents were drafted and subsequently approved, the WEDC was going to fund both the acquisition and sale simultaneously and perform the modifications to the Linduff property post-closing. Under that described structure, The American National Bank of Texas (ANB) was going to fund the loan upon execution of the Loan Documents. As the project was renegotiated during the closing weeks prior to WRDC/Edge approval, the WEDC closed on the Linduff property but will not close on the Edge property until on or about March 21, 2016. Staff requested of ANB to only draw down on the purchase of the Linduff property and fund the remaining S750,000 at a later date so that interest would not accrue. Presented for the Board's review was a modification to the Loan Documents clarifying the WEDC loan as a `draw note' and that interest will only accrue on the current principal balance of the loan, which may change from time to time, up to the inaxiniuni amount of$1,685,000_ Staff recommended that the WEDC Board of Directors approve a First Modification to Loan Documents between The American National Bank of Texas and the Wylie Economic Development Corporation. MOTION: A motion was made by Demond Dawkins and seconded by Todd Wintters to approve a First Modification to Loan Documents between The American National Bank of Texas and the Wylie Economic Development Corporation. The WEDC Board voted 3—FOR and 0—AGAINST in favor of the motion. ITEM NO. 4 — Consider and act upon ratification of a Commercial Contract between the WEDC and McClure Partners,LLC. Staff reviewed a Commercial Contract for the purchase of a 1.433 acre lot (Ferrell Property) from the WEDC by McClure Partners, LLC for $250,000. The Contract calls for McClure to simultaneously close on the adjacent 0.69 acre Jacobs tract and 1.66 acre Goldenberg tract, remove all improvements on the three properties including the Goldenberg building and the Jacobs billboard, and construct median improvements to be located near the northwest corner of the Ferrell property. Finally, the WEDC has committed to participate financially in median improvements for a turn bay into property on the north side of F.M.544. Staff recommended that the WEDC Board ratify a Commercial Contract between WEDC and McClure Partners, LLC. MOTION: A motion was made by Demond Dawkins and seconded by Todd Wintters to ratify a Commercial Contract between WEDC and McClure Partners, LLC. The WEDC Board voted 3 — FOR and 0 — AGAINST in favor of the motion. WEDC—Minutes November 20, 2015 Page 3 of 6 ITEM NO. 5 — Consider and act upon issues surrounding a Performance Agreement between the WEDC and Patna Properties, LLC. Staff explained that Dr. Tanvir Ahmad has purchased a 0.57 acre lot near the intersection of F.M. 544 & State Highway 78 (fronting Kirby behind Exxon). L7r. Ahmad intends to construct a 4,283 square foot office building within which he will utilize 3,100 square feet for his medical practice. The remaining 1,183 square feet will not be finished out until a tenant is identified. Dr. Ahmad had previously inquired as to any available assistance from the WEDC. Dr. Ahmad has a construction budget of $700,000 (S 163.44 psf). Pulliam Construction Management has been working with Dr. Ahmad to develop construction plans and a construction budget. Should the project move forward, construction will begin within the first quarter of 2016 with an estimated completion date within the third quarter of 2016. In developing an incentive package to present to the Board, staff is hesitant to utilize a S163.44 psf appraised value being that medical construction costs may not translate into appraised value. Also, a more conservative psf cost/value requirement will reduce the opportunity for there to be a default within the Performance Agreement. Therefore, staff is utilizing a $130 psf valuation requirement. Further, staff typically utilizes a 3 year factor when developing an incentive based upon the amount of new property taxes that %4ilf be generated over that period of time. However, similar to the Tony Snider project, additional credit is warranted in the form of a 4 year factor for creating value on a property with marginal access and visibility. Using a 'new value' assumption of$557,000 generating$7,500 per year in property taxes to the City of Wylie(86.89 cents) and the WISD l&S (47 cents), a 4 year factor creates a total package valued at S30,000. Within the attached Performance Agreement, staff proposed to fund S20,000 at CO and the remaining S10,000 upon a certified valuation of$707,000 ($557,000 new value plus existing S 150,000 in real property). Staff recommended that the WEDC Board of Directors approve a Performance Agreement between the WEDC and Patna Properties, LLC as presented. MOTION: A motion was made by Todd Winters and seconded by Dernond Dawkins to approve a 1 crlbrmance Agreement between the WEDC and Patna Properties, LLC. The WEDC Board voted 3 FOR and 0 AGAINST in favor of the motion. ITEM NO. 6 — Consider and act upon issues surrounding the redevelopment of WEDC properties located on Industrial Court and Cooper Drive. Staff made an oral presentation surrounding proposed infrastructure improvements impacting the Exco/Mann Made properties which may require demolition at' WEDC buildings located on Industrial Court. Staff made no recommendations and the WEDC Board took no action on this item. WEDC—Minutes November 20, 2015 Page 4 of 6 DISCUSSION ITEMS ITEM NO. 7 — Staff report: review issues surrounding Performance Agreements between the WEDC and: Woodbridge Crossing, Ascend Custom Extrusions, CSD Woodbridge, Excu Tooling Solutions, Von Runnen Holdings, All State Fire, WEDC Staffing, 106 N. Birmingham and regional housing starts. Woodhrids;c Crossing Attached for the Board's review was the Sales Tax Reimbursement Report which identifies all sales taxes received through August 2015 within Woodbridge Crossing for the City General Fund, the WEDC, and the 4B. As a reminder, the City and WEDC reimbursed 85% of all sales tax generated within Woodbridge Crossing through September 2013 with the reimbursement percentage reduced to 65% thereafter. Due to the default under the Amended and Restated Perliyrmance Agreement, Woodbridge Crossing is only eligible to receive up to $6 million in sales tax reimbursement through September 2021 as opposed to the maximum reimbursement of S12 million originally contemplated. S3,157,963.71 in reimbursement has been earned through October 2015 with net receipts of S2,341,181.81 after reimbursements. As well, it is estimated that $3.5 nun has been paid in ad valorem taxes to the City of Wylie(excluding the WISD). As shown on the Sales Tax Reimbursement Report, S104,666.76 was generated in sales tax in August 2015 versus S93,677.52 in August 2014. This increase represents a 12% gain over 2014 receipts. Ascend Crinrmerciai Lease and Performance Agreement Attached for the Board's review was the Ascend Custom Extrusion Critical Dates Analysis and Performance Agreement Monitoring Procedures. Payment#4 of 5 for the Economic Incentives has been funded with Ascend meeting all Performance Obligations within Sections A and B of the attachment. Also attached for the Board's review was the summary of a second Performance Agreement between the WEDC and ACE which was approved in December 2013. Payment #2 of 4 has been funded with Ascend meeting all Performance Obligations within Section A of the attachment. CSI) Waodbridt'e Performance Agreement On July 15, 2013 a certificate of occupancy(CO)was issued for Kroger Marketplace. Beginning October 1,2013 and ending October 1, 2023,Clark Street Development is eligible to receive a Vz cent sales tax reimbursement from the WEDC (City of Wylie not part of sales tax reimbursement agreement). Quarterly payments will be made to Clark Street based upon the data provided by the Comptroller. In addition to the$100,000 reimbursement incentive paid by the WEDC at CO, WEDC—Minutes November 20, 2015 Page 5 of Clark Street is eligible to receive cumulative incentives of $1,100,000 over the Iife of the Agreement. Along with a summary of the Performance Agreement, a Sales Tax Reimbursement Report was included for the Board's review. Exco Tooling Solutions Exco has begun construction of its 30,000 square foot facility within Premier Business Park. All indications point to a temporary CO being issued by November 30, 2015 and Final CO is anticipated by December 31, 2015. As provided in the Summary of Performance Obligations, the WEDC will fund an $87,000 incentive upon issuance of a CO followed by four payments of S20,000 over the following four years. Von Runnel, Holdings Von Runnen Holdings has encountered no significant delays in their construction schedule and anticipates a Certificate of Occupancy (CO) being issued no later than January I, 2016 as required by the WEDC Performance Agreement. Upon issuance of a CO and confirmation of S1.25 mm in construction costs, the WEDC will issue Incentive Payment No. 1 of$20,000. Two additional payments of$10,000 each will be issued over the following two years. Al!Stow Fire Equipment All State Fire Equipment was issued a building permit on July 2, 2015 and held their Ground- Breaking ceremony on September 18, 2015. Work is progressing well and ASFE appears to be on track to receive a Certificate of Occupancy by the August I, 2016 as required in their Performance Agreement. WEDC Staffing Staff is preparing to interview four individuals for the Assistant Director position the week of December 7th. While response to the job posting did not result in as strong a candidate pool as staff desired, there are at least two qualified candidates that are being interviewed and two additional individuals who warrant an additional look. Should the pool be narrowed to a single or even two candidates, staff will involve a Board Member in a second interview. However, if none of the candidates present a quality option for the WEDC, staff will discontinue the process and start over. 106 N. 8irmineham Staff continues to discuss options with local developers for redevelopment of the K&M property. Preliminary discussions have resulted in demolishing the building not being a preference at least with Mr. Bob Heath and Mr. Gary Taylor. Both individuals arc however developing their plans for redevelopment in writing which will be presented to the Board for its review. WEDC—Minutes November 20, 2015 Page 6 of 6 Re.einnnl Hnusine Starts Thirty-two homes were permitted in Wylie for October 2015. Sachse, Lavon, and Murphy permitted a combined Thirty-six homes over the same period. No action was requested by staff for this item. EXECUTIVE SESSION Recessed into Closed Session at 7:34 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 • Ballard Street and Oak Street RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 7:54 a.m. and took no action. ADJOURNMENT With no further business, Vice President Herzog adjourned the WEDC Board meeting at 7:54 a.nt. ,.. • Marvin Fuller, President ATTEST: ,.,,-- • Samuel Satterwhite,Director ECE1 V D AUG 0 g 2017 OF fi'HE O Om,MANAGES Complaint against Wyl Economic Development Corporation I—ttl \. (: Slliti. fil5c�., 15. 611 ,5i5I to.t:l,utiltctlti�5tnnuhtit.c-t,11i Suite 1 l!t{t "!—?: 61-1 515ct I,Itrlct cr>11�tIti551nI1ttI7ti LCul11 Ittc}t.trcitinn,'1'c�..ts i{151t Table of Contents I. Summary 3 Summary of Specific Transactions and Decisions Raising Conc�.rns Introduction to the\1}lie EDC Board,\X y,lie [SD Trustees and Other Play,ers I[. Sale of Land to Wylie EDC Board Member's Family 6 Background of the Land Transaction Timeline Concerns Regarding the Tran:ac jin I I[. Use of Tax Revenue for Dairy Queen Loan 11 Transaction Concerns Ree,4 r.l:ne the Tran.iart:,:-. I\'. Use of Tax Revenue for Movie Theater 12 Transaction Concerns Reprclir:4 the I ran-. cri ,n V. Use of Tax Revenue for Flower Shop 13 Transaction Concerns Regarding Transact:.)n VI. Conflicts of Interest 14 Mitch 1-lerzog Marvin Fuller V11. Requested Remedies 15 Vill. Appendix 16 Appendix 1: 1 '\he EDC. Formation Informatik:.n&Btlau Appendix 2: Minutes of the EDC dated September 15,2!!11 Appendix 3: Collin County Central Appraisa:District inf.,rmauon Appendix 4: Minutes of the Wylie EDC dated October 21, 2011 Appendix 5: Minutes of the\X'}•lie EDC dated January, 16,2''12 Appendix 6: Minutes of the Wylie EDC dated February, 1—, 2012 Appendix 7: Minutes of the Wylie [SD dated March 19,2012 Appendix 8: Public Notice of Bidding Process Ady,erusements Appendix 9: Appraisa of the\VISD Property dated March 6,2012 Appendix 10: Minutes of the Wylie EDC dated March 23, 2012 ?AGE I 1 Appendix 11: Minuus of the Wile ISD dated April 16,2012 Appendix 12: Minutes of the Wylie EDC dated April 2-,2012 Appendix 13: Minutes of the Wylie EDC dated November 16,2012 Appendix 14: Wylie EDC Memorandum dated July 7,2016 Appendix 15: Detail Listing Appendix 1'i: Minutes of the Wylie EDC dated July 15, 2011 Appendix 1-: Minutes of the Wylie EDC dated July 29,2011 Appendix 18: Minutes of the Wylie EDC dated August 19,2011 Appendix 1:': Minutes of the Wylie EDC dated October 28,2016 PAGE 12 Summary The Wylie Economic Development Corporation :the "Wylie EDC"; is a Texas nonprofit economic development corporation in Wylie, Texas.' Since at least 2011, a review of the minutes of the Wylie EDC Board of Directors .the "Wylie EDC Board"} appears to show a pattern of. (1:: self-dealing by the Wylie EDC Board members, ,2, undisclosed conflicts of interest and 1 3! uses of funds unauthorized bt statute. Due to the nature of economic development corporations and nonprofits,independent citizens whose cities send their taxpater dollars to an economic development corporation lack standing to address these concerns in a court of law.. lccordingh, the nonprofit status of such entity places an investigation or review of the practices of such entity in the province of the Office of the Attorney General and an} potential criminal investigation into the indniduals involved within the province of the District Attorney. The objective of this complaint is that the Office of the Attorney General look into this matter independently and determine whether the \X the EDC is operating within the confines of the law and to take steps to protect the taxpa}er ref cnues of the citizens of Wt he, Texas from being used to generate mere financial and personal benefit for the V1 the EDC and the individuals associated with the Wylie EDC Board, as opposed to the City of\X t lie itself. A sccondart objective is for the Collin County District .\ttorney to review whether any laws have been violated by the members of the\X'vlie EDC Board. Summary of Specific Transactions and Decisions Raising Concerns • Sale of Real Propertt Owned bt 1l vlie ISD to \X vhe EDC Board member's Father-in.Law • Loan for a Dairy Queen • Movie Theater • Renovations to a Flower Shop • Potential Conflicts of Interest Issues See the\\'slie Economic DI.A clopmcnr Corporation SLcrerary of State Formation informauon and First Amended Btlaws at Appendix 1. Vey Tran r. Hoa, ,481 S.\\.3d 313,316-I- (Tex..lpp.--Houston fist Dist.20151;. PAGE 13 Introduction to the Wylie EDC Board, Wylie ISO Trustees and Other Players • Mitch Herzog 802 Forest Edge Lane likt Wylie,Texas 75098 r. f. Telephone: :972, 429.2344 ` Email: mitch.herzogna wy1ieisd.net Wylie ISD Board Member /1\ /. Former Wylie Economic Development Corporation Board Member Resigned October 28, 2016 Occupation: Commercial Real Estate, Parker Real Lstatc Stacie Gooch 2404 Drain Drive \X clie,Texas -5098 Telephone: (972:� 42': 234.S Email: Stacie.gooch a,w liuisd.nct Wylie ISD Board Member Occupation: RLaltor, Ebbs l-iollicias • Joe Stooksberry Telephone: •:972:. 429..2346 .:::4:.ii Email: jne.stooksberrt a,w5lieisd.net '• ` Wylie ISD Board Secretary ;r * Occupation: .lccoun• ting Manager, Firetrol Protection Systems, Inc. Ili* . Marvin Fuller North Texas Municipal Water DiktrlLt, Admin. Buildirr 501 East Brown Street Wylie,Texas 75098 w Telephone: .972' 442.54r:5 • Wylie EDC President Occupation: Banker,Wylie Branch President of Inwood National Bank PAGE 1 4 - --- Sam Satterwhite \ EDC Offices 250 S. Highwa) 78 `. r Wylie,Texas -5098 - - Telephone: ..9-2: 442--901 Email: sam@wylieedc.com ,, Wylie EDC Staff Liaison '' - Occupation: x, Richard Parker Richard Parker, Inc. �{ 2555 W. FM 544,\C}'he,Texas -5098 .� `...`' Telephone: i 972 442 5114 Father-in-law to Mitch Herzog :.,. Occupation: Realtor, Employs Mitch Herzog at Parker Real Estate PAGE 15 Sale of Land to Wylie EDC Board Member's Family Background of the Land Since 2011, the Wylie ISD has previously owned a 2.9453 acre tract of land (the "WISD Property':. The \VISD Property is situated within the following boundaries: North— Hwy 544; East and South —33 acres owned b} an entity controlled by Richard Parker, the father-in-law of ditch Herzog, who was at all pertinent times a Wylie EDC Board member and Wylie ISD Trustee; and on the West,—a creek,separating the\VISD Property from Wylie High School. About half of the 1VISD Property was in a flood zone, resulting in references to the \V SD Property as only 1.5+/- acres throughout the Wylie EDC Board minutes. ,ate,.. }lei,J Afae..0 w)1re LA-4 Philter,„r,.r lm owNed I'igrnr I. Tens Aldo..r. nfras t n:•.ershap•.•Ix land that us the slily it of the transaction The properri I uded tit.gray is the[f'7 y D Prapertj The propert)maned by R::lnard Parker, ^le f rth.r to:lass of Math 1lertroi,a II jl:r f DC Board ntrrnhrr and Ii"ylrr I tO Trrutrr,a labeled as'Land Parker _-Already Onlned" Transaction Timeline • As early as 2011, Richard Parker' inquired about purchasing the \VISD Property.` • Prior to July, 2011, Sam Satterwhite, in his capacity. as Executive Director of the Wylie EDC, approached Dr. John Fuller, the then current Wylle ISD Superintendent, inquiring of the potential sale of the 1VISD Property. to the 1Vy he LDC.' • Dr.John Fuller and the Wylie ISD Trustees responded by stating that it had determined the minimum price for the \VISD Property was S5.00 to 5,.00 per square foot. Richard Parker is the father-in-law of Mitch Herzog. In add:tion,Mr Herz.:g is also employed by Parker Real Estate, an entity owned by Richard Parker. Yee the Minutes of the\' ylie EDC dated September I3,2011,attached is :Appendix 2. 'gee the Minutes of the 1(t°ie F.DC dated September :;,2011,attached as Appendix 2. PAGE 16 o Dr.John Fuller was the Wylie ISD Superintendent from 1993 until July, 2011. o In or about July, 2011, a new superintendent was hired for the Wylie ISD. • According to the Collin County Central Appraisal District, the market value for the 1t 1SD Property in 2011 was S 109,060.00.` • During September, 2011, the Wylie EDC Minutes reflect a position that the Wylie FDC developed the position that the 1ii'ISD Property should be sold by the Wylie ISD and that the likely sole bidder would be the adjacent land owner,an emits owned by Richard Parker. The discussions included by an argument in support of a low and decreasing value of the WISD Property, as well as an offer to pay for a survey and an appraisal to assist the Wylie ISD in selling the property•' Although Mitch Herzog excused himself from this portion of the 11t he EDC Board meeting, Marvin Fuller presided.' • In or about October,2011, the Wylie EDC staff,along with its President,Marvin Fuller,made a presentation to the Real Estate Committee of Wylie ISD to present the Wylie EDC's interest in assisting the 1t\lie ISD to sell the WISD Property.The Wylie 1SD President,Stacie Gooch, who is also a local realtor, instructed the Wylie EDC to make the presentation before the full Wylie ISD Board in January,201.2.14i • During the Jarman 16, 2012, meeting of the Wylie ISD Board, Sam Satterwhite, Executive Director of the 1\\lie EDC, made the presentation to the 1X.ylie ISD Board staring that the Wylie EDC's only interest was for the WISD Property to be part of a master planned communist. Mr. Satterwhite continued the position developed by the Wylie EDC that the WISD Property would have no value if it was not sold at that time. o Mitch 1-lerzog a trustee for the Wylie ISD, a board member of the Wylie EDC, and son-in-law of the eventual purchaser of the WISD Property was present at this Wylie EDC meeting and there is no indication that he excused himself during such meeting due to a conflict of interest or otherwise disclosed the potential conflict during this meeting. • As of February 1-, 2012, the \\\lie ISD Board had authorized the commencement of the public bid process for the 1\TSD Propert and started the appraisal process. o Wylie EDC pre iously offered to pay the upfrrint costs of the appraisal and survey, but no response had yet been provided as to whether the Wylie ISD was accepting such assistance..: See the Collin Count} Central Appraisal District Records,attached as Appendix 3 See the Minutes of the\Xthe EDC dared September 15,2011,attached as Appendix n.Vet the Minutes of the 1V.lie WC dared September 15,2011,attached as Appendix 2 9 S;e the Minutes of the\' he EDC dated September 15,2011,attached as Appendix 2 1 See the Minutes of the\`•1ic EDC dated October 21,2011,attached as Appendix 4. 11 See the Minutes of the 11C lie ISD dated January 16,2012,attached as Appendix 5 12 Sec the Minutes of the\X he [SD dated Januan 16,2012,attached as Appendix 5 1i Sec the Minutes of the\V\lie ISD dated January 16,2012,attached as Appendix 5. i+ See the Minutes of the Wt lie I.DC dated February 17,2012,attached as Appendix 6. 15 See the Minutes of the Mile EDC dated February 17,2012,attached as Appendix 6. PAGE 17 o There again is no indication that Mitch Herzog,whose father-in-law is considered the only potential bidder, excused himself from this discussion.`' • On March 19, 2012, the Wylie ISD voted to approve the sale of the 2.9453 acre WISD Property and to publish public notice in accordance with Tex. Local Gov't Code §272.001.'al, to receive open and sealed proposals and to present said proposals to the Wylie ISD Board.- o Mitch Herzog abstained from this vote. • The only known advertisement of the 1t'1SD Property, occurred on two occasions, March 28, 2012 and April 14,2012, in the classified section of the local paper.19 o The classified advertisements failed to properly identify the location, provide an address or gic e a full legal description of the WISD Property.Z" o There was no signage on the Property itself providing notice that the WISD Property was for sale, informing of the bidding process or who to contact if interested. • The Wylie EDC voted to authorize the expenditure for a surrey and appraisal of the WISD Property.' o The appraisal concluded that there was no market for the 1`i'ISD Property aside from Mr. Parker, the adjacent landowner." o The appraisal did not consider the potential increased value of the WISD Property to Mr. Parker, especially considering that the purchase of the Wylie ISD Property would allow Mr. Parker to consolidate it with the substantially larger adjacent tract. • On April 16, 2012,Wylie ISD authorized the superintendent to execute a contract for the sale of the WISD Property o Mitch Herzog abstained from this cote. • During the April 27,2012,1X.‘lie EDC meeting,ins rec ealed that the sole bidder on the WISD Property was Richard Parker. • On June 7, 2012, the 16: ISD Property u as sold to an entity owned by Richard Parker for S27,000.00 '.or S0.21 per square foot;. • On April 29, 2015, the WISD Property, and an additional portion of land was sold by the entity owned by Richard Parker to the Episcopal Diocese of Dallas.'' o Through an admission by Mr. Parker, it was learned that he sold the WISD Property to the Episcopal Diocese of Dallas at S9.00 per square foot. 16 See the Minutes of the Wylie hDC dated l-ebruar} 17,2012,attached as 1ppendix 6. 1".See the Minutes of the Wylie ISD dated March 19,2012,attached as Appendix 7. 1�See the Minutes of the Wylie ISD dated March 19,2012,attached as Appendix-. i"See the Public Notice of Bidding Process Advertisements,attached as Appendix 8. .See the Public Notice of Bidding Process Advertisements,attached as.Appendix 8. 21 See the Minutes of the Wylie ISD dared September 15,21;11,attached as Appendix 2. --.Sre the Appraisal of the'WISD Property dated March 6,2012,attached as Appendix 9,see alto the.Minutes of the V lie EDC dated March 23,2012,attached as Appendix 10. 23 See the Minutes of the Wylie ISD dated April 16,2012,attached as Appendix 11 21 See the Minutes of the Wylie ISD dated April 16,2012,attached as Appendix 11. -'See the Minutes of the Wylie EDC dated April 27,2012,attached as Appendix 12. 25 See the Collin County Central Appraisal Distnet Information,attached as Appendix 3. Sec the Collin County Central Appraisal District Information,attached as Appendix 3. PAGE l 8 o In addition to foregoing the substantial profit on the resale of the land, the \USD Property. is now tax exempt,generating no propern tax revenue for the City of Wylie. Concerns Regarding the Transaction Wylie EDC Foregoing Purchase and Assistance of Board Member Family in Purchase One of the most substantial concerns regarding this transaction is that it appears as though the Wylie EDC was aware of the potential profitability and value of the WISD Property in light of the "master planned development" pitched to the \Vt he ISD by Sam Satterwhite, and rather than purchasing the \\'ISD Property itself to then sell at a profit,it assisted a family member of a Wylie EDC board member to make such purchase and realize the substantial future profit,which profit would have benefited the economic deg clopment and financial position of the City of\V)lie and its citizens. Mr. Satterwhite's representations to the\X vlie 1SD Board,that the\L ylie 1SD needed to sell the\\'lSD Property to avoid holding property with no value, is of concern, especially when considering that such assertions n ere made prior to the appraisal and prior to obtaining any independent assessment of potential uses of the\VISD Propern. Further concerns arise from Mr. Sattenvhite's claim that the Wylie EDC's only interest was to utilize the \VISD Property in a "master planned development." Additionally, both the Collin County propern tax records and position of the prior Wylie ISD superintendent as to the value raise concerns about Mr. Satterwhite's statements. The position was not consistent with: . 1; the ability to regain usable acreage of the WISD Property in the flood plain by adding fill dirt, essentially doubling the usable acreage of the\\ISD Property; (2) the development of adjacent property spurring further development and increasing the \alue of the WISD Property; (3) the value of the \VISD Property due to its frontage along FM544; (4) the potential development for Wylie High School after removing the creek; or, (5) the value of holding real property that had substantial value to the development of the adjacent landowner's property, Mr. Richard Parker. Whether Marvin Fuller and the \t'ylhe EDC was truly acting as a steward and for the economic development of the City of Wylie, as opposed to assisting the famih member of Mitch Herzog, a Board Member whose father-in-law owned the property adjacent to the \XISD Property, is a subject for serious consideration and investigation to ensure that opportunities that would better the City of \X'ylie and public good are not being usurped or passed over to benefit certain individuals. Marketing and Timing of Sale Practices Pursuant to §272.001 of the Texas Local Gov't Code, certain content must be contained in a public notice of sale. One portion of such information is the location of the property. Tex. Local. Gov't Code §272.001(a). Under the doctrine of pari materi, noncompliance with the bidding statutes renders such sale void. Collins z. Corey, of El Paso, 954 S.\.X,2d 137, 146 (Tex.App.—El Paso 1997). In this instance, although there is a basic,general legal description of the WISD Property in the Public Notice of Sale, the notice is wholly silent on the location of such propert•.'s Moreover, as there are other -�See the Public Notice of Bidding Process Advertisements,attached as -‘ppendi\8. PAGE 19 potential bidders who missed the opportunity due to the defective notice,whether such sale is void is a question for further inquiry. It appears from reviewing the records that the Wylie EDC,under the guidance of its President,Marvin Fuller, reached a conclusion regarding the disposition of the WISD Property prior to any survey, appraisal and actual information related to its potential value to the Wylie EDC, the Wylie ISD or the City of Wylie. The WISD Property has frontage off of a major artery in the arca and with the size, was sufficient to support its own commercial development, such as a building and development of a medical facility, as well as other potential growth opportunities that were not seriously investigated, but instead were represented to the Wylie ISD as a "master planned development." The lack of marketing efforts, though not statutorily required, evidence a breach of fiduciary duties owed to the citizens of Wylie. The fact that only one bid was received is more likely directly related to the lack of marketing of the WISD Property,as opposed to its lack of marketability. Moreover,the questionable objectivity of the appraisal entirely disregarded several comparable sales that shared the FM 544 frontage, and were at a value substantially higher per square foot than the appraisal value. Upon information and belief, the profit earned by Mr. Parker upon the sale of the WISD Property was substantial and a lost opportunity for the City of Wylie and or the Wylie ISD. In addition, the essentially closed bidding process, the failure to market the WISD Property in accordance with industry standards, the exclusion of the ad valorem tax data for purposes of the appraisal and the sale of the \X'ISD Property at a value far below market value all cause concerns regarding the propriety of the transaction for which an investigation is warranted to protect the public interest in the Wylie EDC. Although it is understood that an appraisal is conclusive of the fair market value pursuant to §272.001 of the Tex. Local Gov't Code, whether such appraisal was objectively prepared is a material factor in discerning whether it is worthy of thi deference given under the statute and in the public good. Ste the Appraisal of the\ 1SD Property dated March 6,2012,attached as .-appendix 9. PAGE 1 10 Use of Tax Revenue for Dairy Queen Loan Local Gov't Code ;505.I51 authorizes only certain projects with the use of tax revenue from a Type A or Type B tax. Chapter 505 authorizes an economic development corporation to engage in projects related to recreational or community facilities that the board determines to be useful for professional or amateur sports, athletic, entertainment, tourist, convention and public park purposes, and more. Local Gov't Code 503.152. In addition,it permits a store, restaurant and concessions related to such venues to be considered part of the project as well. Id. An economic deg elopment corporation generally cannot lend its credit or grant public money. or another thing of value in aid of a corporation. Local Gov't Code §505.152. However,a municipality may grant public money to a corporation under pursuant to a contract authorized by Tex. Local Gov't. Code §380.002. Id. As is apparent from the statute, loans from tax revenues are to dev elop an area around such communit) or recreational activities to generate revenue anti further economic development. With specific reference to the Dairy Queen located at 420 TX-78,Wylie,Texas 77)098, that is not the case. Transaction The Wylie EDC approved a loan in the amount of S93,950.00 to 11}lie Ice Cream Holdings LLC d/b/a Dairy Queen i."Dairy Queen"),who then assigned the loan proceeds to Texas Mezzanine Fund .."TGIF where the Wylie EDC sent payment on November 13, 2012. As of Jul% -, 2016, Dairy Queen has made 42 payments and a balloon payment in the amount of S33,248.44 is due on December 15, 2019; Concerns Regarding the Transaction There is nothing demonstrating that this project was for recreational or community purposes. This project does not appear to meet the qualifications of an authorized project as described in _;505.151 of the Tex. Local Gov't. Code. Based upon its location, there is nothing to support such position. In addition, it is assumed that Type B tax revenue was used to fund this loan. However, there is nothing demonstrating that the procedural requirement of public notice to allow a citizen to object was properly followed. Tex.Local Gov't Code§505.160,.303. Furthermore,prior to funding this project, it does not appear that any public hearing was held. In 2012, the City of Wylie had a population of 44,1323 exceeding the 20,000 population threshold that would allow it to act without such a public hearing. Local Gov't Code §505.159(b). " See the Minutes of the Wylie EDC dated November 16,2U12,attached as Appendix 13,,ee also the\X t lie EDC Memorandum dated July 7,2016,attached as Appendix 14 ",See the Wv1ie EDC Memorandum dated July 7,2016,attached as Appendix 14. Seethe United States Census Bureau. PAGE I I Use of Tax Revenue for Movie Theater Transaction The Wylie EDC also provided 5251,3-2.38 to B&B Theater located at -11 1\oodbridge -etct Parkwa% \V, s lie,Texas ,5098. Such x � ! F Fk amount included an amount equal ~ W. t to the taxes paid b} B&B Theater. • ` � J " 1 The B&B Theater shows motion ��` z1) # mei • pictures. n .+ rrr►r— �^'��� "� Concerns Regarding the Transaction Economic development corporations authorized to use Type B tax revenues are governed by Chapter 505 of the Local Government Code. Local Gov't Code §501.00216 . Though §505.152 permits the use of the Type B tax revenue for recreational or community facilities, such authorization does not include movie theaters. The use of Type B tax funds is permitted for business enterprises that create or retain "primary jobs." Local Gov't Code ,501.155. The concern with the use of funds for this project arise,' from the use of such funds for a project that not create a "primary job." Local Gov't Code .;'5(11.002(12}fa;.ui. The definition of "primary job" expressly excludes motion picture theaters. Id. Therefore,the\X'vlie EDC does not appear to have the authorit\ to provide such funding to B&B Theater. The Wylie IF.DC does not appear to have such authority under Local Gov't Code §505.156, as the revenues for the preceding two fiscal years exceeded S50,000.00. Sr: Loc. Gov't Code 5505.156 l). Finally, Wylie EDC does not qualify as a landlocked community. Loc. Gov't Code §505.157. Such provision is drafted so as to apply only to Dallas County and I larns County. PAGE 112 Use of Tax Revenue for Flower Shop Transaction On or about February 19, 2015, the Wylie EDC paid S26,627.00 to the Wylie Flower & Gift Shop to remodel the store's facade."The Wylie Flower& Gift Shop is located at 129 N. Ballard Avenue,Wylie, Texas i • 75098. Wil"! I Concerns Regarding Transaction • Economic development corporations authorized to use Type B tax 1 revenues are governed b\ Chapter 505 of the Local Government Code. • - . Local Gov't Code §501.002.IG;. r `ice Though §505.152 permits the use of the Type B tax retenue for recreational or community facilities. The use of Type B tax funds is permitted for business enterprises that create or retain "primary jobs." Local Gov't Code §501.155. The concern with the use of funds for this project arises from the use of such funds for a project that not create a "priman- lob." Local Gov't Code 501.002r12:'. It does not qualify as a priman :ob as the products and services are not ultimatelt exported to regional, statewide, national or international markets infusing new dollars into the local economy. Local Gov't Code §501.1)02(12)(A.i*. Further, none of NAICS codes specifically included in the definition of "primary job"expressly include flower shops. Id Therefore, the\X`ylie F.DC does not appear to have the authority to provide such funding to the Wylie Flower and Gift Shop. As stated previously, the 1t'ylie EDC does not appear to have such authority under Local Gov't Code §505.156,as the revenues for the preceding two fiscal years exceeded S50,000.00. See I.oc. Gov't Code §505.15G(1). Finally, Wylie EDC does not qualify as a landlocked community. Loc. Gov't Code §505.157. Such provision is drafted so as to apply only to Dallas County and Harris County. ;;Sir the Detail Listing attached as Appendix 15. PAGE I -i Conflicts of Interest Mitch Herzog As previously stated, Mitch Herzog is the son-in-law of Richard Parker. Richard Parker had an ownership interest in propern near the intersection of F.M. 344 and Sanden Blvd. through an entity called Parker/Scholz Properties LTD :the "Parker/Scholz. Propert} On July 15, 2011, the Wylie EDC Minutes reflect a discussion regarding Parker/Scholz Property.' The Minutes do not reflect, however, Mr. Herzog excusing himself or signing an Affidavit Stating Conflict of Interest related to the property and transaction discussed.' At a subsequent meeting on July 29, 2011, the notes state that Mr. Herzog did execute an Affidavit Stating Conflict of Interest regarding Parker/Scholz Property.' 1-lowever, during the meeting on August 19, 2011, he again participates in the meeting wherein they discuss Parker Scholz Property,an entity where there is an admitted conflict of interest.' No Affidavit Stating Conflict of Interest from Mitch Herzog was included in any of the notes that are made publicly available. In addition, Mr. Herzog is a member of the Wylie ISD Board and although he abstained for votes on the sale of the WISD Property, he was present at all meetings of the Wylie ISD Board discussing such sale. Mr. Herzog's position on the\X vile ISD Board, the W' he EDC and his relationship to the purchase of the W1SD Property raises concerns.Of further note is Mr. Herzog's recent resignation from the 1E vhe EDC Board.' Marvin Fuller Marvin Fuller is the 1C‘lie EDC Board President and presided over each and ever} meeting de%eloping the position to coinince the 'the Wylie ISD to sell the 1l ISD Property at a low price. Mr. Fuller remains the President of the \\* lie EDC to this date. I le is also the President of the local branch of Inwood Bank. The correlation bent een persons and entities receiving tax funds from the 11 vhe EDC and financing via Inwood Bank should be investigated. u See the Minutes of the W'he [DC dated July 15,2011,attached as 1ppendix 16. 35 See the Minutes of the W%he EDC dated July 15,2011,attached as Appendix 16. See the Minutes of the\V%he EDC dared July 29,2011,attached as Appendix 1 3"See the Minutes of the Wylie 1.DC dared August 19,2011,attached as Appendix 18 '"See the Minutes of the\X t lie EDC dared October 28,2016,attached as Appendix 19. PAGE 114 Requested Remedies Citizens of Wylie,Texas have valuable tax dollars that it has authorized to be used by the Wylie EDC in accordance with the governing and applicable law. If,as is suspected, the taxpayer funds are being used on unlawful projects, for projects that are to the personal benefit or gain of the \Vvlie EDC Board Members as opposed to the City of 1X.vlie and conflicts of interest are not being disclosed, the Attorney General is authorized to step in and institute adequate remedies to safeguard the taxpayer's funds and take whatever steps are necessary to deter future misconduct and reestablish trust. The removal of all Board members of the \Vvlie EDC who participated in these transactions would be a good start, specifically including Marvin Fuller and Sam Satterwhite. The recent resignation of Mitch Herzog is interesung regarding its timing, but is not enough to protect the taxpayers of Wylie. PAGE 115 Appendix Appendix 1: Wylie EDC Formation Information & Bylaws Appendix 2: Minutes of the Wylie EDC dated September 15, 2011 Appendix 3: Collin County Central Appraisal District Information Appendix 4: Minutes of the Wylie EDC dated October 21, 2011 Appendix 5: Minutes of the Wylie EDC dated January 16, 2012 Appendix 6: Minutes of the Wylie EDC dated February 17, 2012 Appendix 7: Minutes of the Wylie ISD dated March 19, 2012 Appendix 8: Public Notice of Bidding Process Advertisements Appendix 9: Appraisal of the WISD Property dated March 6, 2012 Appendix 10: Minutes of the Wylie EDC dated March 23, 2012 Appendix 11: Minutes of the Wylie ISD dated April 16, 2012 Appendix 12: Minutes of the Wylie EDC dated April 27, 2012 Appendix 13: Minutes of the Wylie EDC dated November 16, 2012 Appendix 14: Wylie EDC Memorandum dated July 7, 2016 Appendix 15: Detail Listing Appendix 16: Minutes of the Wylie EDC dated July 15, 2011 Appendix 17: Minutes of the Wylie EDC dated July 29, 2011 Appendix 18: Minutes of the Wylie EDC dated August 19, 2011 Appendix 19: Minutes of the Wylie EDC dated October 28, 2016 NaE I THE WYLIE NEWS, March 22, 2006 Report calls for changes in WEDC accounting practice By Patty Montagno An audit report released last week questioned some of the accounting practices of the Wylie Economic Development Corporation. The report was presented at last week's city council meeting by auditor Lewis Crain of Rutledge Crain and Company, P.C. In his summary letter,Crain said the WEDC is a"discretely presented component unit"in the city's combined financial statements. The WED is financed with a voter-approved half-cent city sales tax. Its purpose is to aid,promote and further the economic development within the city. According to the report,the WEDC is a government- fund type u ith a Sept.30 fiscal year end. The audit identified several "reportable conditions that we believe to be material weaknesses" in the WEDC's accounting procedures,Crain said. "A material weakness is a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that errors or fraud in amounts that would be material in relation to the basic financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions," he said. Auditor concerns included missing board meeting minutes,deposits of public funds deposited in another financial institution other than the city depository, related party transactions and accounting and administration practices. In a memo to WEDC Executive Director Sam Satterwhite,City Finance Director Larry Williamson wrote that the finance department has raised a number of issues regarding the WEDC. "Other issues have been brought to our attention by the city auditors and others by different city departments," Williamson said."These issues include questionable expenditures.violations of the Open Meetings act, violations of the Public Funds Investment Act, improper bidding procedures and evaluations of bids,conflicts of interest and related-party transactions and financial reporting." Williamson also stated that although the finance department is"in a glass house and has a lot of work to do," they still have city-wide responsibilities that must be addressed. ''The Open Records Act requires that the WEDC keep minutes of its board meetings and that they be available for review,"he said."The finance department and the city auditors have requested these minutes and have been informed that a number of the required board are not available." Satterwhite said the WEDC simply got a little behind in taking minutes. I admit to poor minute taking when we were in complicated negotiations regarding the sale of Extruders and were meeting every 10 days or so,"he said."There was a time when I was the only staff. "We have recognized this concern and have been working to rectify the situation and one of my recommendations would be to electronically record all the meetings." Referring to a deposit in the amount of S154,490.61 to Inwood National Bank, Williamson said the Public Investment Act prohibits an individual from making investments of government funds without being a 'Certified Investment officer' and requires deposits to be collaterized for amounts over FDIC insurance limits. He also cited Section 11. Depository of the city that states: "All monies received by any person,department or agency of the city for, or in connection with,the affairs of the city shall be deposited promptly in the city depository or depositories, which shall be designated by the city council in accordance with such regulations and subject to such requirements as to security for deposits and interest thereon as may be established by ordinance and law. Procedures for the withdrawal of money or the disbursement of funds from the city depositories shall be prescribed by ordinance." "All funds should be in the city's depository and part of the city's pooled cash accounts," he said. Although Williamson told the council Satterwhite had failed to address the issues brought up in the audit, Satterwhite said after receiving Williamson's memo he met with the finance director for more than an hour to address the concerns. The two thoroughly discussed every issue.Satterwhite said. "The$154,490.61 was a money market account that was set up in Inwood National because the interest rates were more favorable and the transaction was signed off on by myself and Gary Boni land who was board treasurer at the time,"he said. The transaction was also highlighted because WEDC board member Marvin Fuller is president of Inwood National Bank, Wylie."Mr. Fuller did not take part in any discussions regarding his bank,"Satterwhite said. Fuller said there was a period of 14 days in which the S 154,490.6I WEDC funds were not properly insured and that internal oversight was corrected immediately upon discovery. "The$154,490.61 was the year-end(9-30-05)balance in the account in question and from 2-28-05 through 9-30-05 the account balance had S 1,200,000.00 in securities properly pledged to this account," Fuller said. "However, from 2-14-05,when the initial deposit was made to the account, through 2-27-05 the account was not adequately secured." Satterwhite said Williamson asked if he had the proper licensing or certification to make public investments."I said I didn't know I needed that certification saying that I should sign up for the appropriate courses,"he said."He said that wouldn't be necessary because he would act as our investor." Satterwhite said the city attorney advised the economic development board that all WEDC monies did not have to deposited in the city depository although the majority of WEDC monies are. Mayor John Mondy said after reading the auditor's report he met with all parties to get a handle on the situation. He said the work the WEDC has done over the years had contributed to the growth and success of the city. "We'll need to look at another legal opinion regarding some of these issues and the WEDC is forming a corrective plan and will submit it to the city,"Mondy said. "The city approved staffing for the WEDC quite a while ago,so we are partially responsible for the lack of record keeping." Mayor pro-tens Eric Hogue said the auditor's report did identify certain areas in which the city as well as the Wylie Economic Development Corporation can improve. "As a member of the city council, I would like more information on each of those concerns before commenting on any specific issue or how each might be resolved," he said. Satterwhite said the WEDC strives to adhere to all policies created by the city. "The WEDC recognizes that the more closely we adhere to the city guidelines and procedures the more fiscally responsible we will be,"he said. The most concerning issue to me is that there could be a slight perception of impropriety existing at the WEDC and I want to assure everyone that we take these concerns very seriously and we value the close working relationship with the city. The WEDC prides itself on its relationship with the city and we realize we are ultimately responsible to the taxpayers. "I may be guilty of being somewhat disorganized, but I am not unethical." WEDC board members are, Fuller. Gary Bartow,John Yeager and councilman Merrill Young. -In reference to WEDC activities, we are open to scrutiny in our success as well as our shortcomings and I welcome any and all questions into the operations of the WEDC and believe that the Wylie City Council will be satisfied with the WEDC Board of Directors response to these inquiries," Satterwhite said. "Any procedural or operational changes which need to be made will be implemented swiftly and comprehensively. "As well, we will continue to perform our number one objective of creating jobs and expanding the local tax base." The WEDC budgets for the last five years show any unexpended fund balances of the prior year will be included in the current year budget. FY 01 02 -S787,700; FY 02 03 -$688,220; FY 03 04- S822,820;FY 04 05 -$949,863 and FY 05 06- $1,449.549. According to Fuller,the WEDC, in conjunction with the City Manager's office, has participated in funding a new secretary position. "This individual is providing increased clerical assistance so that the issue of incomplete minutes will not reoccur,"he said Fuller said the WEDC and City of Wylie have formalized this assistance in the form of an interlocal agreement. "I have full confidence in the WEDC staff and past actions of the WEDC Board and I believe that all concerns,both actual and perceived,will be explained to the full satisfaction of all involved," Fuller said. "My fellow Board members and I,have contributed countless hours to an organization which has a long- term impact on the positive growth of our community. "The WEDC Board and City Council will jointly resolve all concerns so that the business of economic development can continue and achieve even greater success than we have up to this point." ♦'t•; OF WI, • : - Board of Ethics mr,= r r: AGENDA REPORT tsar s,'4h nl iI Meeting Date: September 7, 2017 Item Number: 4 (City Secretary's ('-se Only) Department: City Manager Prepared By: Mindy Manson Account Code: Date Prepared: August 31, 2017 Exhibits: Draft complaint form Subject Consider and act upon a Complaint or Inquiry Form. Recommendation Motion to approve a Complaint or Inquiry Form. Discussion Ordinance 2014-19, Section 7. (H) (2) states that complaints or inquiries are to be submitted in writing on a form approved by the Board. The form is to contain the following information: - The signature of the individual making the complaint; - The home or business address and phone number of the person who submitted it; - The statement that,to the best of the person's knowledge, information.and belief formed after reasonable reflection, the information in the complaint or inquiry is true; - The facts that constitute the violation of the Code of Ethics in sufficient detail so that the Board and the person who is the subject of the complaint or inquiry can reasonably be expected to understand the nature of any offense that is being alleged. - The date the actions took place or became known to the complainant. (For clarification, actions that took place or became known to the complainant more than six months prior to the date of filing a complaint will not be accepted). Staff has drafted a complaint form which is attached for the Board's review. (Rev 01'2014) Page i of 1 Board of Ethics Complaint/Inquiry Form Submitted by: Name Address Phone# Indicate below what portion of Ord. 2014-19, Section 6. Rules of Ethical Conduct for City Officials that you believe the individual(s) has violated. Check all that apply. Appearance on behalf of private interests of others _ Misuse and disclosure of confidential information Restrictions on political activity and political contributions Use of cell phones or electronic devices during meetings Use of City letterhead and logo Facts and Nature of the Complaint/Inquiry(information may be attached): Date that the action took place or became known to the undersigned: To the best of my knowledge, information and belief formed after reasonable reflection, the information contained in this complaint or inquiry is true. Signature Printed Name Date