07-18-2008 (WEDC) Minutes Mii utes
Wylie H conomic Development Corporation
Boars of lirectors Meeting
Friday, July 18, 2008 — 6:00 A.
Inwood National Bank— Conference Roo
200 South Highway 78 — Wylie, Texas
CALL TO 0 L!'DER
Announce the presence of a Ouorum
President Fuller called the meeting to order at 6:05 a.m. Board Members present were: John
Yeager and Mitch Herzog.
Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry anis.
Ex-Officio Board embers ayor Eric Hogue and Mindy Manson were present.
CI H IZEN PARTICIPATION
There being no citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM ' O. 1 — Consider and Act Upon Approval of the June 27, 2008 Minutes of the
WEDC Board of Directors Meeting.
MOTIO A motion was made by Mitch Herzog and seconded by John Yeager to
approve the June 27, 2008 Minutes of the WEDC loard of Directors
eeting. The WEDC bard voted 3 — FOR and 0 — AGAINST in favor of
the motion,
ITEM Ni. 2 — Consider ani Act Upon apl royal of the June, 2008 WEDC Treasurer's
eport.
MOTICr : A motion was made by Mitch Herzog and seconded by John Yeager to
approve the June 2008 WEDC Treasurer's Report. The WEDC card voted
3 — FOR and 0 — AGAINST in favor of the motion.
ITEM NO. 3 — Consider and Act Upon Issues Surrounding Approv 1 of the H Y 2008 —
2009 WEDC udget.
Staff presented for review the final draft of the FY 2008 — 2009 WEDC udget. Staff proposed
approval of the "iudget, filing the same with the City Secretary on August 5 and presenting the
.udget to the City Council on August 12th.
WE IC Minutes
July 18, 2008
Page 2 of 5
Staff projected FY 2008 — 2009 sales tax receipts of $1,300,000 which would represent an
estimated 3.7% gain over FY 2007 — 2008. Staff also presented a $412,424 fund bal& ce as staff
has estimated all expenses tH OUH the end of Se•tember 2008. udget highlights as presented
by staff were $544,446 for Incentives, $335,827 for Debt Service, $400,000 for La d, and
Advertising/Community Development of $101,698. The prii ary change from the June 27th
presentation was the inclusion of$25,000 withi the Streets and Alleys account for the potential
paving of an alley east of Ballard and south of Brown to benefit co ercial developme t in the
area.
President Fuller indicated that there may be changes to Personnel expenditures following
Exec tive Session.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve the FY 2008 — 2009 WEDC Budget subject to amendments
resulting from discussion held in Executive Session. The WEDC Boars
voted 3 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4 — Consider and Act pon Issues Surrounding WEDC Assistance in the
Redevelopment of Commercial Property Located at 106 E. irown.
Staff reviewed that on ay 15, 2008 a request was presented to the Board from Dr. Ken Steen
for assistance in the de olition of a residence structure he was contemplating p rchasing and
locating his practice to. The residence presented was located ear the southeast corner of Brown
and Ballard. Dr. Steen also indicated that he was attempting to acquire the property on the hard
corner of Brown and Ballard to combine with the aforementioned lot. The Board indicated to
staff in May that there may be opportunity for assistance should Dr. Steen acquire both lots and
redevelop them simultaneously.
Dr. Steen has since indicated that he has bee unable to acquire the corner and would like to
proceed with the redevelopment of the lot he has since closed on. In light of Dr. Steen's inability
to acquire the corner, the question has been presented again as to whether the WEDC would
consider assisting with the redevelopme t of this single property to a ew commercial use.
Dr. Steen intends to demolish the existing 1,287 square foot single family structure and construct
a 2,100 square foot facility for his physical therapy practice which is currently located at 520 W.
rown. The property falls within the downtown historic zo ing dist ct and will have seve on-
site parking spaces. Construction cost has bee estimated at $300,000. Dr. Steen has an estimate
for the demolition from R & L Landscape for $4„000.
Staff presented that the preference would be for the corner lot to redevelop sim Itaneously with
Dr. Steen's prope y, the project still has merit independently with its co tinuation of
redevelopment omentum frot Jefferson to 'rown. Further, the dollars being requested are
minimal com ared to the retu o aesthetics and property tax base. Should the Board consider
WEDC participation in the demolition of the structure, staff would e sure that the bid was
competitive and formalize performance sta Aards to ensure that constructio is completed prior
to funding WEDC assistance.
WE C Minutes
July 18, 2008
Page 3 of 5
Staff recommended that the WEDC bard of Directors authorize the WEDC Executive Director
to execute a Performa ce Agreement with Dr. Ken Steen for assistance, not to exceed $4,000, in
the demolition of property located at 106 E. rown.
The Board questioned whether staff felt that Dr. Steen would build a larger facility if the corner
lot could be acquired. The •oard also asked staff to investigate what type of business co Id be
located on the corner lot, and where the business would be able to provide customer parking.
MOTION: A motion was made by Jo Yeager and seconded by Mitch Herzog to table
the item providing staff additional time to research the Board's questions.
The WEDC ,'"oard voted 3 — FOR and 0 — AGA, ST in favor of the motion.
ITEM 'O. — Consider and Act Upon Issues Surrounding a Real Estate Contract Between
the Kansas City Southern Railway and the WE IC.
As a review, on June 18th the Real Estate Contract between the WEDC and KCS was executed
by KCS officials. The contract calls for a purchase price of 13.25 multiplied by the number of
gross surveyed square feet." As staff presented this item to the :oard in August 2007, it was
estimated that the property to he acquired was to be ±0.3055 acre out of a ±0.458 acre tract.
Following receipt of the survey and the determination by the KCS that only a 25' right-of-way
was to be maintained from t e rail ce terline, the actual property available for sale is 0.406 acre.
ased upon t e previously assumed square footage and a fixed cost per square foot, staff had
anticipated a purchase price of$43,178.85. The actual purchase price is $57,477.42. Now wit
purchase price in excess of $50,000, WEDC by-laws require formal approval from the Wylie
City Co ncil. While Council was informed of the purchase via the WEDC Annual Report,
formal approval was neither sought nor given for the expenditure. Staff will request Council
approval at the July 22, 2008 City Council meeting. Staff has also reviewed the survey and
commitment and has identified no out of the ordinary issues.
Staff recomme ded that the WEDC ,:oard of Directors approve the purchase of 0.406 acre fro
the Kansas City Southern Railway Company for $57,477.42 and further authorize the WEDC
President to execute all docu H entation, required to effectuate the sale.
MOTIO A motion was made by Mitch Herzog and seco ded by John Yeager to
approve the purchase of 0.406 acre fro the Kansas City Southern Railway
Company for $57,477.42. The motion was amended to also authorize the
WEDC President to execute all documentation required to effec ate the
sale. The WEDC board voted 3 — FOR and 0 — AGAINST in favor of the
motion.
I H EMI NO. 6 —Staff Update: L eview Staff Activities and Ongoing WH DC rojects.
Savage Precision Fabrication, Inc.: The Savage buildi g permit will be issued no later than July
16th, Savage continues to move forward with excavation and utility extensions.
WEDC Minutes
July 18, 2008
Page 4 of 5
211-4 Industrial Court: The vacant WEDC facility has been adveH ised for lease on site, in the
Wylie ews, and the Piano Star Courier.
Kohl's: Kohl's again rescheduled their Executive Committee Meeting to July I7th, All Kohl's
representatives that staff has contacted are still confident in the Wylie market and anticipate
approval. Staff will have an update at the Board Meeting.
Garnet Hill: The Garnet Hill Open House/Ribbon Cutting will be July 22nd. Invitations should
be received shortly. All I oard members are encouraged to attend as the WEDC participated in
this project.
Pediatric Associates of Wylie iT.A. : Staff was contacted by Dr. Lanman six onths ago
inquiring as to whether the WEDC could participate in any way in the construction of a new
office located on Woodbridge Parkway at the intersection of Hensley and Hooper (northwest of
Cooper Junior High). P.A.W. intends to develop a 2.54 acre tract into a three phased
development consisting of a 7,000 square foot P.A.W. facility and two I-.cre tracts supporting
±6,500 square foot office/medical facilities each. Phase I will have a constructio cost of±$1.2
million. Staff initially indicated that the WEDC typically did not participate in office
development, but that did not preclude our participation. That conversation was prior to WEDC
participation in the Snyder project.
As P.A.W. has progressed with their plans, staff has determined that P.A.W. must bring water
under four lanes of Woodbridge Parkway which will facilitate future development east of
Hooper ad north of the proposed PA.W. development. Staff has yet to determine esti ated
costs for boring under Woodbridge Parkway, but anticipates bringing this issue to the Board
formally at the August meeting.
Nicom Construction: icom has received its building permit per the requirements set forth by
the Board at the May 156 WEDC Board Meeting. Staff is processing the 'icom reimbursement
check (S10,000) for demolitior, performed at Regency-Steel Business Campus.
Extruder's division of Atrium Companies, Inc..- The fi al payment to Extruder's for an
expansion/gra t program undertaken in 2005 is die to be considered for payment on Aug st l .
While Extrus er's will meet the vaL ztion requirements per the Agree tnt,, the employment
provision will rOt be met due to the downturn in the home building sector. An Action Item will
be presented to the Board at the August WEDC Board Meeting.
EXECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 7:08 a.m. President Fuller
requested that Mayor ogue and City Manager Mason retain to participate in the evaluation of
the Executive Director.
1. Consider and Act Upon Issues Su ri ounding Personnel Matters (Evaluation of the Executive
Erector) as Authorized in Section 551.074 of the Local Government C de, Vernon's
Texas Code Annotated (Open Meetings Act).
WEDC —Minutes
July 18, 2008
age 5 of 5
RECON N f, 'TO OPEN MEETL ',G
The WEDC oard of Directors reconvened into open session at '7:52 a.m.
Actions taken from Executive Session:
I. After staff review by the WE1C oard, the Board asked that the Budget for FY 2008 -2009
be amended as follows: Salary for the Executive Director be increased .,'3,600 annually, Car
Allowance for the Executive Director be increased by $1,200 annually, and a Performance
J.,onus of $18,000 be paid to Executive Director. The Board directed that the Petfo ance
Bonus and Car Allowance be effective August 1, 2008 with the Salary increase effective October
1, 2008.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the '''erfonisiance onus and increase to Car Allowance as detailed
above and amend the FY 2008 — 2009 :udget to reflect changes to Salary.
The WEDC Board vote. 3 — FOR and 0 AGAFNST in favor of the H otion.
ADJOURNMENT
With no further business, President Marvin Fuller adjourned the WEDC Board meeting at 7:56
a.,
/ 1/1
Marvin Hi uller, Prestient
ATTEST:
Samuel D.R. Satterwhite
Exec i'tive Director