03-20-2019 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Wednesday, March 20, 2019—6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78—Wylie, Texas
CALL TO ORDER
Announce the presence of a Quorum
President Bryan Brokaw called the meeting to order at 6:35 a.m. Board Members present were
Todd Wintters, John Yeager, Demond Dawkins and Marvin Fuller.
Ex-officio members Mayor Eric Hogue and City Manager Mindy Manson were present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner,
and Senior Assistant Angel Wygant.
INVOCATION & PLEDGE OF ALLEGIANCE
Board Member John Yeager 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 February 20, 2019 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 February 20, 2019 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 February 2018 WEDC Treasurers
Report.
Staff reviewed the Treasurers Report and called the Board's attention to the following highlights:
Sales tax receipts continue to be strong with $208,222 received in March. This represents a
13.87% increase over March 2018 receipts and a 14.24%increase overall over the prior year. The
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March 20, 2019
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City Finance Department is deciding whether to adjust Sales Tax Revenue during the Mid-Year
Budget Amendment. Staff will adjust WEDC Budget numbers in accordance with the City's
decision. However, staff does not anticipate adjusting expenses to allocate the additional sales tax
revenue.
During the month of February, the WEDC made final incentive payments to Mikten and Hooper
Woodbridge II. In addition,the WEDC sold property located at 105 N. Jackson and purchased the
Weatherford Property, 300 N. 2nd Street, and 306 & 208 N. 2nd Street.
On 2/15/19 the WEDC made a payment in the amount $459,605.40 to pay off the remaining
balance of American National Bank loan#88149711 which funded the purchase of the Peddicord
building, parking lot purchased from the City of Wylie, and the White Property on Alanis Drive.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
approve the February 2019 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 Purchase and Sale Agreement between the WEDC
and Taylor and Son Properties, LLC.
Marvin Fuller reminded the Board that, as previously presented in Executive Session,the principal
in this item has a business relationship with his employer. The Board was polled and determined
no conflict of interest existed for Item 3 or Item 4 involving the same principal.
Staff reviewed a Purchase and Sale Agreement between the WEDC and Taylor and Son Properties.
The WEDC purchased the+0.17-acre tract on Birmingham Street from FFA Village, LLC in 2019
for $99,000 and is expending $5,500 for the demolition of the existing structure, thus creating a
purchase price of$104,500.
Staff reported that this property could be a long-term hold to complement redevelopment efforts
on Jackson and Birmingham or can be used to immediately attract new investment in the form of
a 3,500 square foot office building.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve a Purchase and Sale Agreement between the WEDC and the Taylor
and Son Properties, LLC and further authorize WEDC President Brokaw to
execute all documentation necessary to effectuate the transaction. 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
Taylor and Son Properties, LLC.
Staff presented a Performance Agreement between the WEDC and Taylor and son Properties,
LLC. As an accompaniment to the Purchase and Sale Agreement, the WEDC is committing to
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March 20, 2019
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fund a $104,500 reimbursement incentive. Should Taylor and Son construct the contemplated
office project as evidenced by the issuance of a building permit by February 1,2020 and Certificate
of Completion for a minimum of 3,500 square feet issued by February 1, 2021, they will receive
the first half of the reimbursement incentive. Taylor must also provide documentation supporting
construction costs of not less than$400,000,which is a conservative number by design. The second
reimbursement incentive is to be paid upon receipt of Certificate of Occupancy for not less than
1,750 square feet by February 1, 2022.
Staff has drafted language into this Agreement which allows for a 90-day extension to either the
Permit deadline,the CO deadline, or both. The extension can be requested in writing and obtained
by Company should it be determined by staff, at its sole and absolute discretion,that the Company
is making reasonable efforts to meet the above deadlines but is unable to do so.
Board Member Wintters called staff s attention to a correction required to the incentive amount on
page 4 of the agreement. 'Forty-Nine Thousand Five Hundred Dollars' should be amended to
read 'Fifty-Two Thousand Two Hundred Fifty Dollars'.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve a Performance Agreement between the WEDC and the Taylor and
Son Properties,LLC, as amended,and further authorize the WEDC Executive
Director to execute the Agreement. The WEDC Board voted 5 —FOR and 0
—AGAINST in favor of the motion.
ITEM NO.5—Consider and act upon issues surrounding a Performance Agreement between
the WEDC and ST' GRVL, LP.
Prior to discussion of this item, Marvin Fuller informed the Board that the principal in this item
has a business relationship with his employer. The Board was polled and determined no conflict
of interest existed.
As directed in Executive Session, staff presented a Performance Agreement between the WEDC
and STRR GRVL, LP (dba Professional Plumbers Group). STRR is undertaking an 8,400 square
foot expansion to their existing 12,000 square foot office/warehouse. The purpose of the
expansion is to place a majority, if not all, of the material and inventory utilized in their business
operations under roof. This expansion will not only make their operations more efficient but
remove permissible outside storage of goods from public view.
STRR is expending in excess of$800,000 on the expansion and has requested a$26,000 assistance
package from the WEDC. Development fees to the City of Wylie will be$15,000 and a Certificate
of Occupancy will be required under the Agreement prior to August 31, 2019. Professional
Plumbers Group currently employees 58 hourly/salaried employees in their office/warehouse in
addition to 75 contract laborers based out of their Wylie operations.
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March 20, 2019
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MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve a Performance Agreement between the WEDC and STRR GRVL,
LP and further authorize the WEDC Executive Director to execute the
Agreement. The WEDC Board voted 5 — FOR and 0 —AGAINST in favor
of the motion.
DISCUSSION ITEMS
ITEM NO. 6 - Staff report: review issues surrounding WEDC Performance Agreement
Summary, Hotel Occupancy Tax, environmental activity summary, McClure office project,
Jackson Street alley project, Retail Coach Presentation, 78/Brown redevelopment update,
active project summary, and regional housing starts.
Staff updated the Board on WEDC projects and activities noting that year-over-year sales tax
receipts received in February for the Woodbridge Crossing shopping center increased .79% and
Woodbridge Centre experienced a decrease of 2% over the same time period.
The WEDC and McClure closed on a real estate transaction on 2-28-19. A building peimit has
been issued for the office project and construction will start within the next 30 days.
GT Construction will begin a second WEDC alley project north of Oak and west of Jackson the
week of March 25th.
Elm Creek Environmental has begun the process to enroll all WEDC property in the Hwy 78 &
Brown area within the Voluntary Cleanup Program (VCP) through the Texas Council on
Environmental Quality. The First Baptist Church of Wylie and the Swayze family have authorized
testing to take place on their respective properties located on 2nd Street.
ITEM NO. 7—Presentation by City of Wylie Finance Department to review WEDC
financials and reporting practices.
Melissa Beard, Finance Director and Ron Arp, Assistant Finance Director for the City of Wylie
reviewed the CAFR for FY 2017-2018 for the WEDC Board and provided feedback received
from auditors. The WEDC financials and business activities during the prior fiscal year did not
identify any concerns or the need for any changes or adjustments for FY 2018-2019.
ITEM NO. 8— Discussion of issues to be placed on a future WEDC Board Meeting agenda
(no substantial consideration/discussion allowed).
Board Member Dawkins requested that staff place on a future agenda his role as Treasurer for the
WEDC Board and discussion of any related compliance issues which might arise with his
employer as a result of his serving the Board in this role.
President Bryan Brokaw recessed into Executive Session.
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March 20, 2019
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EXECUTIVE SESSION
Recess into Closed Session at 7:45 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:
• State Highway 78 & 5th Street
• State Highway 78 & Ballard
• State Highway& Cooper
• F.M. 544 & Cooper
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act). Deliberation regarding commercial or financial infoiniation that
the WEDC has received from a business prospect and to discuss the offer of incentives for:
• Project 2013-3a
• Project 2017-6a
• Project 2018-8b
• Project 2019-2a
40 Project 2019-3a
Mayor Hogue left the meeting at 8:00 a.m.
' CONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
The WEDC Board of Directors reconvened into open session at 8:53 a.m. and took the following
action:
ITEM NO. 9—Consider and act upon a Commercial Contract of Sale with KC Swayze.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to enter
into a commercial Contract of Sale with KC Swayze to purchase property
located at 208 N. Second Street, Railroad Addition, Block 9, Lot 9 and North
'/z of lot 8 for $180,000 plus applicable fees and closing costs, and a second
Commercial Contract of Sale with Swayze Revocable Living Trust to
purchase property at 204 North 2nd Street, Railroad Addition, Block 9, Lot 7
and South 1/2 of Lot 8 for $180,000, and further authorize WEDC Board
President Bryan Brokaw to execute all documentation necessary to close each
real estate transaction. The WEDC Board voted 5 —FOR and 0—AGAINST
in favor of the motion.
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March 20, 2019
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I JOU' MENT
With no further business, President Brokaw adjourned the WEDC Board meeting at 8;54 a.m.
Brya rokaw, President
ATTEST:
Samuel Satterwhite, Director