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05-16-2018 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Wednesday, May 16, 2018 —6:30 A.M. WEDC Offices—Conference Room 250 South Highway 78—Wylie, Texas CALL TO ORDER _ Announce the presence of a Quorum President Marvin Fuller called the meeting to order at 6:38 a.m. Board Members present were John Yeager, Bryan Brokaw, and Demond Dawkins. Ex-officio members Mayor Eric Hogue and City Manager Mindy Manson were present. Councilman Matthew Porter was also present. WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner, and Senior Assistant Angel Wygant. CITIZEN PARTICIPATION With no citizen participation, President Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the April 18, 2018 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by Demond Dawkins and seconded by Bryan Brokaw to approve the April 18,2018 Minutes of the Wylie Economic Development Corporation. The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO.2—Consider and act upon approval of the April 2018 WEDC Treasurer's Report. Staff reviewed the items contained in the Treasurers Report and called the Board's attention to the continuing decline in Sales Tax Revenue for FY 2017—2018 including a 16.8% decline in April and-5.7%for the fiscal year. A-$258,000 in Audit Collections was identified in the Comptrollers report with staff unsure as to the reasoning for the significant audit adjustment. City Manager Manson indicated that staff would contact the City's sales tax consultant for additional information. Staff indicated that it has revised the target sales tax revenue number for this fiscal year to $2.6 mm. WEDC—Minutes May 16, 2018 Page 2 of 5 MOTION: A motion was made by John Yeager and seconded by Bryan Brokaw to approve the April 2018 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. ITEM NO.3—Consider and act upon approval of a Performance Agreement between JRMK Properties,LLC and the WEDC. Demond Dawkins excused himself from the Board Meeting at 6:52 a.m. prior to consideration of this item as he is an employee of JRMK Properties, LLC which poses a conflict of interest. Staff reminded the Board that Mr. Jal Dennis purchased the building at 601 Commerce Street with the intent of undertaking significant renovations to ultimately relocate his business. As discussed previously,the former EZ Loan building was in such a state of disrepair and could not adequately park an office use of this size that Mr. Dennis chose to undertake a$400,000 remodel which has greatly enhanced the 544 corridor and is complementary to WEDC/City efforts surrounding the 544 Gateway project. As presented in Executive Session on multiple occasions beginning in August of 2017,Mr.Dennis approached the WEDC inquiring as to the potential for assistance with the project specifically relating to parking infrastructure. As directed by the Board in Executive Session and more so in Open Session on April 18, 2018, a Performance Agreement was presented for review providing for a$10,000 incentive package for infrastructure assistance to JRMK Properties, LLC. MOTION: A motion was made by Bryan Brokaw and seconded by John Yeager to approve a Performance Agreement between JRMK Properties, LLC and the WEDC. The WEDC Board voted 3 —FOR and 0—AGAINST in favor of the motion. Demond Dawkins returned to the meeting at 6:56 a.m. ITEM NO. 4—Consider and act upon issues surrounding the construction of infrastructure benefitting commercial properties on Ballard Street. Over the past 12+ months, staff has been attempting to identify opportunities which will justify the construction of alleys between: (1) Oak and Marble just west of Jackson Street; and (2) Jefferson and Brown just east of Ballard. However great the need is by and of itself, it is staff's opinion that these significant infrastructure costs must be tied to expanding commercial activities. On the `Jackson Street' alley, staff has been informed that the Rocking M project was officially cancelled due to increasing costs and personal circumstances impacting one of the principal partners. However, Taylor & Son has purchased the property at 107 Jackson which presents an opportunity. WEDC—Minutes May 16, 2018 Page 3 of 5 Taylor is completely remodeling the 1,290 square foot home at 107 Jackson(which had previously housed an insurance office) and planning on providing approximately 3 improved parking spaces at the rear of the property which exceeds the parking requirement of 2 on-site spaces and 2 off-site spaces (located on Jackson). Staff has proposed to Taylor to construct as many spaces as possible at the rear of the site (approximately 6-7),with modest WEDC assistance on-site, and tie into a to- be-constructed alley by the WEDC. Taylor is open to the concept and is developing a parking layout and cost estimate. Taylor also built a parking lot behind their property on 104 Birmingham which would benefit from tying onto an alley. Also, staff continues to support the philosophy that the alley greatly enhances the marketability of the WEDC property at 105 Jackson and further justifies construction of the same. The `Ballard Street' alley is currently impacted by 3 active projects. 304, 306, and 308 Ballard which are all in some phase of development/expansion. The owner of 308 Ballard has a tenant interested (office user), no improved parking surface, and has attempted to utilize a crushed concrete product which the City is currently evaluating. Staff believes minor on-site assistance will facilitate the investment by the property owner to develop the parking required for the 1,084 square foot building. The remodeling efforts at 306 Ballard which have stalled over the past 4—6 months are currently underway once again with staff negotiating for increased parking at the rear of the property over and above what will be required which could total 7—8 spaces. Finally, Conversations Coffee, while already having a parking lot at the rear of their site,believes that access to an alley will greatly impact the flow of traffic for their customers and will pay to tie on to the same. Staff sought direction from the Board to negotiate with multiple landowners who are remodeling their properties on Ballard and Jackson with the goal of increasing on-site parking over and above a minimum threshold and recommended that the Board authorize the design of the alley off Jackson and the construction of the alley off Ballard. Councilman Matthew Porter asked staff about the creation of primary jobs associated with this project. Staff explained that certain targeted infrastructure projects necessary to promote or develop new or expanded business enterprises are not required to create or retain primary jobs. The Board requested that staff proceed with design of the alleyways and continue to speak to adjacent property owners regarding their level of interest and willingness to participate in providing additional parking spaces above the minimum requirement. Staff will present those findings to the Board at a future meeting for consideration and action. No action was taken on this Item. WEDC—Minutes May 16, 2018 Page 4 of 5 DISCUSSION ITEMS ITEM NO. 5 - Staff report: Staff reviewed issues surrounding WEDC Performance Agreement Summary, Environmental Activity Summary, Highway 78 WEDC Pad Sites, CFA Opening, FY 2018-2019 Budget, 544 Gateway Property, and regional housing starts. Staff updated the Board on WEDC activities and properties noting the opening of Chick-Fil-A on May 9th. Additionally, staff informed the Board that development of the 2018-2019 Budget is progressing and will be presented to the Board at a later date. ITEM NO. 6 — Discussion of issues to be placed on a future WEDC Board Meeting agenda (no substantial consideration/discussion allowed). No Board Member requested any items to be placed on future Agendas. EXECUTIVE SESSION Recessed into Closed Session at 7:43 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: • Oak& Ballard Section 551.087 - (Economic Development) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). Deliberation regarding commercial or financial information that the WEDC has received from a business prospect and to discuss the offer of incentives for: • Project 2018-4a • Project 2018-4b • Project 2018-4c • Project 2018-5a John Yeager left the meeting at 8:25 a.m. and did not return. RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:29 a.m. and took no action. WEDC—Minutes May 16, 2018 Page 5 of 5 ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 8:29 a.m. a4ek' Marvin Fuller, President ATTEST: Samuel Satterwhite, Director