06-12-2018 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Tuesday, June 12, 2018 —6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
CALL TOO ' 1 ER
Announce the presence of a Quorum
President Marvin Fuller called the meeting to order at 6:32 a.m. Board Members present were
John Yeager, Bryan Brokaw, Todd Wintters, and Demond Dawkins.
Ex-officio member Mayor Eric Hogue was 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 May 16, 2018 Minutes of the Wylie
Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Bryan Brokaw and seconded by
John Yeager to approve the May 16, 2018 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO.2—Consider and act upon approval of the May 2018 WEDC Treasurer's Report.
Staff reviewed the items contained in the Treasurers Report and called the Board's attention to the
4% increase in sales tax this month. While this is encouraging, staff will continue to monitor for
any budget adjustments that might be necessary.
In reviewing the Balance Sheet Subledger, the Board discussed paying off outstanding loans
following the sale of property to SCSD-Finnell, Ltd. which is scheduled to close in June. The
Board directed Staff to payoff loans 88148481 and 88157334 and apply $300,000 to principal
reduction of loan 88149711.
MOTION: A motion was made by Demond Dawkins and seconded by
John Yeager to approve the May 2018 Treasurer's Report for the Wylie
Economic Development Corporation. The WEDC Board voted 5 —FOR and
0—AGAINST in favor of the motion.
WEDC—Minutes
June 12, 2018
Page 2 of 4
ITEM NO.3—Consider and act upon authorizing WEDC President Marvin Fuller to execute
all documentation necessary to effectuate the sale of Lot 4RB within Railroad Industrial
Park Addition, consisting of 1.569 acres, to SCSD-FINNELL, Ltd along with all documents
contemplated within the Purchase and Sale Agreement executed on January 10, 2018
between SCSD-FINNELL, Ltd and the WEDC.
Staff reviewed that the WEDC entered into a Purchase and Sale Agreement with SCSD-FINNELL,
LTD on January 10,2018 for the sale of 1.54 acres to be developed with a proposed 10,000 square
foot multi-tenant building. Staff also called the Board's attention to the recorded plat showing the
subdivided Lot 4RB of 1.569 acres out of the original 3.014 acres owned by the WEDC.
As per the agreed upon square foot price, the total sales price will be $1,367,060 prior to closing
expenses.
As negotiated within the Purchase and Sale Agreement, and part of the presented Performance
Agreement, Finnell will receive a $25,000 reimbursement incentive should a building permit be
issued no later than 12-31-18 and a 10,000 square foot multi-tenant structure be substantially
complete no later than 10-1-19. Further,Finnell will receive an additional$50,000 reimbursement
incentive should a 60% lease ratio of restaurant users be achieved within 30 months of closing.
However,should Finnell not achieve a minimum 53%lease ratio within the same 30-month period,
Finnell will be subject to a penalty of$125,000 as secured by a Deed of Trust.
Within the Performance Agreement, staff recommended two changes: (1) Page 2, Section 3a
"...applied to obtain a building permit..."will be amended to"obtained a building permit"and(2)
Page 4, Section 10 "...at the sole reasonable discretion..." will be amended to "the sole
discretion".
Staff recommended that the WEDC Board of Directors authorize WEDC President Marvin Fuller
to execute all documentation necessary to effectuate the sale of Lot 4RB within Railroad Industrial
Park Addition, consisting of 1.569 acres, to SCSD-FINNELL, Ltd along with all documents
contemplated within the Purchase and Sale Agreement executed on January 10, 2018 between
SCSD-FINNELL, Ltd and the WEDC.
MOTION: A motion was made by Bryan Brokaw and seconded by John Yeager to
authorize WEDC President Marvin Fuller to execute all documentation, as
amended, necessary to effectuate the sale of Lot 4RB within Railroad
Industrial Park Addition, consisting of 1.569 acres, to SCSD-FINNELL, Ltd
along with all documents contemplated within the Purchase and Sale
Agreement executed on January 10, 2018 between SCSD-FINNELL,Ltd and
the WEDC. The WEDC Board voted 5—FOR and 0—AGAINST in favor of
the motion.
ITEM NO. 4—Consider and act upon issues surrounding the provision of WEDC assistance
toward infrastructure improvements to be made by Taylor and Son Properties, LLC
benefiting property located at 107 N. Jackson Avenue.
WEDC—Minutes
June 12, 2018
Page 3 of 4
As directed by the Board in the May 16th Board Meeting, staff approached Taylor & Son to
encourage the maximum amount of parking spaces be developed at the 1,290 square foot remodel
taking place by Taylor at their new 107 Jackson Street acquisition. Staff was able to confirm that
with WEDC assistance, Taylor will provide seven parking spaces behind the building.
Using the rationale that a minimum of three spaces contemplated by Taylor could be constructed
and meet reasonable parking requirements, staff proposed that the WEDC fund 50% of the cost
associated with maximizing the parking on the lot which would add four additional spaces. The
thought is that the WEDC/downtown business district and Taylor are both benefitting from the
additional parking and the WEDC shares in the cost.
Taylor indicated that the additional 4 spaces will cost $6,400 with staff proposing to fund $3,200
for reimbursement of expenses associated with the qualified infrastructure.
Staff recommended that the WEDC Board of Directors authorize the Executive Director to enter
into a Performance Agreement with Taylor and Son Properties, LLC to provide up to $3,200 in
reimbursements for qualified infrastructure assistance.
MOTION: A motion was made by Bryan Brokaw and seconded by John Yeager to
authorize the Executive Director to enter into a Performance Agreement with
Taylor and Son Properties, LLC to provide up to $3,200 in reimbursements
for qualified infrastructure assistance. The WEDC Board voted 5—FOR and
0—AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 5 - Staff report: Staff reviewed issues surrounding WEDC Performance
Agreement Summary, Environmental Activity Summary, REVA Hospitality, Dank Real
Estate, LP, FY 2018 — 2019 Budget, " K Properties, ICSC 2018, and regional housing
starts
Staff updated the Board on WEDC activities and properties noting a delay in the construction start
date for Dank Real Estate, LP's expansion of their Gourmet Popcorn manufacturing plant.
Activity has resumed and staff is working this Dank to identify a revised start date. In addition,
staff informed the Board of a minor modification that was made to JRMK Properties Performance
Agreement prior to payment of the incentive. Due to client confidentiality issues,JRMK objected
to allowing an audit of company records or providing documentation for the file. Staff reviewed
the required documentation in JRMK's offices and was satisfied that the required performance
measures had been met and verified.
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.
WEDC—Minutes
June 12, 2018
Page 4 of 4
EXECUTIVE SESSION
Recessed into Closed Session at 7:16 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
* Birmingham& 78
• Project 10-7
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 2018-4b
* Project 2018-4c
• Project 2018-5a
* Project 2018-6a
• Project 2018-6b
* Project 2018-6c
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:27 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:27 a.m.
Marvin Fuller,President
ATTEST:
Samuel Satterwhite, Director