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09-26-2018 (WEDC) Minutes mutes Wylie Economic Development Corporation Board of Directors Meeting Wednesday, September 26, 2018 —6:30 A.M. WEDC Offices—Conference Room 250 South Highway 78 — Wylie, Texas CALL TO 0 ' 1ER Announce the presence of a Quorum President Bryan Brokaw called the meeting to order at 6:31 a.m. Board Members present were John Yeager, Marvin Fuller, Todd Wintters, and Demond Dawkins. Mayor pro tern Keith Stephens and Assistant City Manager Chris Holsted were present. WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner, and Senior Assistant Angel Wygant. INVOCATION & PLEDGE OF ALLEGIANCE Todd Wintters gave an invocation and led the Pledge of Allegiance. CITIZEN PARTICIPATION With no citizen participation, President Brokaw moved to Action Items. ACTION ITEMS ITEM NO. 1 —Consider and act upon approval of the August 15,2018 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to approve the August 15, 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 August 2018 WEDC Treasurers Report. Staff reviewed the items contained within the Treasurers Report and called the Board's attention to the 1.16% increase in sales tax received in September. Staff is hopeful that this represents a reversal in the sales tax trend and bodes well for the upcoming year but will continue to plan conservatively. WEDC—Minutes September 26, 2018 Page 2 of 5 MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to approve the August 2018 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 3 —Consider and act upon a Budget Amendment for FY 2017-2018. Staff explained that unanticipated legal expenses for the City owned 544 Gateway property located on Kirby Street had been incurred for services performed by the law firm,Guida, Slavich&Flores, P.C. This firm was employed to review environmental work being performed on this site as well as interfacing with TCEQ in an attempt to expedite the completion of the VCP process. Staff recommended that the WEDC Board of Directors approve Budget Transfer Request EDC-2 increasing Audit & Legal by$15,055 and reducing Incentives by $15,055. MOTION: A motion was made by Todd Winners and seconded by John Yeager to approve Budget Transfer Request EDC-2 increasing Audit& Legal by $15,055 and reducing Incentives by $15,055. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 4 — Consider and act upon a Performance Agreement between the WEDC and 2819 FM 544 Ventures, LLC. Staff reminded the Board that a meeting was held with Mr. Myers at ICSC RECon regarding redevelopment of West FM 544. The property has several buildings totaling 2,462 square feet (a 1,304 square foot house and 1,158 square foot structure). Mr. Myers specifically requested assistance with the demolition of these structures to help offset the development cost to build a new commercial structure. Mr. Myers is currently marketing the property for restaurants and has several companies interested in the property. Mr.Myers received three quotes for the demolition and the lowest estimate was$48,000. The total figure is comprised of$20,000 in demolition, $23,500 for asbestos remediation,and$4,500 for air monitoring. Staff proposed that the WEDC Board approve participation in the demolition up to $25,000. Staff stipulated that while Mr. Myers must complete demolition by December 1,2018, it believes they will begin the demolition process within the next few weeks. Performance Measures are identified as follows: Incentive No. 1 $25,000 ). Visual inspection of the completed demolition; and ) Minimum project cost of$45,000; and ) Ad valorem property taxes current. ) Eligibility expiration is December 1, 2018. WEDC —Minutes September 26, 2018 Page 3 of 5 Staff recommended that the WEDC Board of Directors authorize the Executive Director to enter into a Performance Agreement with 2819 West FM 544 Ventures, LLC to provide $25,000 in reimbursements for demolition assistance. MOTION: A motion was made by Todd Winners and seconded by John Yeager to approve a Performance Agreement with 2819 West FM 544 Ventures, LLC to provide $25,000 in reimbursements for demolition 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, Hotel Occupancy Tax, Environmental Activity Summary, KCS Strategic Partners Conference, Presentation of WEDC website, Retail Live 2018, Wylie Education Foundation, utility improvements impacting WEDC property, active project summary, and regional housing starts. Staff updated the Board on WEDC projects. August highlights included: Sales Tax receipts for Woodbridge Crossing shopping center were down 7% which seemed unusual particularly combined with the increased overall sales tax receipts. Woodbridge Centre experienced a 13% increase in sales tax revenue. Housing starts remained strong with fifty new homes permitted in Wylie. Staff updated the Board on the KCS Strategic Partners Conference. Mr. Satterwhite and Mr. Greiner attended the conference as well as the special focus group at the conclusion of the event to discuss/promote the Wylie distribution park. This focus group consisted of transload operators, logistics consultants, KCS customers, and the KCS marketing/industrial group. There was a high level of interest and staff would not be surprised to see significant developments within the next 18 months. However, there will likely be a need to extend infrastructure to the site in preparation for development. Staff asked Mayor pro tem Stephens if he felt it was too early to update Council on the details of this site in advance of any actual development. He commented that it might be helpful to schedule a work session to provide Council Members with a historical overview and update them on the prospects for this site. Staff will explore including this item on an October Council Agenda. The WEDC website is still in the loading stages which is taking a bit more time than previously anticipated. Staff anticipates a `go-live' date in the very near future. Mr. Satterwhite and Mr. Greiner attended the Retail Live 2018 event held in Austin, Texas in August. Over 70 participating retailers had booths/tables and several hundred people were in attendance. Many of our local retailers, regional brokers and several prospective businesses also had a presence at the show. This mid-year event is an excellent opportunity to catch up on retail/restaurant activity outside of the annual ICSC RECon Conference. WEDC—Minutes September 26, 2018 Page 4 of 5 The Dank project is progressing well but it has been discovered that there is insufficient water pressure on Windco Circle to support fire suppression systems for expanded Deanan Popcorn operations. Staff is exploring options for extending a water line from Windco Circle to Eubanks Lane which will address Deanan water pressure and may enhance utility services for the WEDC owned (Gallagher)property adjacent to the Deanan site. The Wylie Education Foundation has asked the WEDC to participate with them in a recently launched internship program. Specifically, student in a graphic design practicum class will perform services for the Education Foundation to experience the demands of real-world application of their skills. Staff felt this was a better use of sponsorship funds than a general sponsorship and has allocated $2,250 in sponsorship funds to this program. InvenTrust (Target) and Clark Street (Kroger) both have several projects pending final approval and staff anticipates receiving announcements very soon. Overall restaurant activity seems to be higher than last year and staff is optimistic about users for the Hwy 78 properties. 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 Recess into Closed Session at 7:25 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 at: • Oak& Jackson • Oak& Ballard • State Highway 78 & 5th Street • Birmingham & 78 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 2018-6c • Project 2018-8b • Project 2018-8c • Project 2018-9a • Project 2018-9b • Project 2018-9c WEDC—Minutes September 26, 2018 Page 5 of 5 RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:39 a.m. and took no action. • 1 JOU MENT With no further business, President Brokaw adjourned the WEDC Board meeting at 8:39 a.m. Bryan okaw, President ATTEST: Samuel Satterwhite,Director