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02-22-2000 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION Tuesday,February 22,2000 Board Members Present: Gary Bowland Marvin Fuller Kevin St. John(arrived at 2:45 p.m.) John Yeager Merrill Young Staff Present: Samuel Satterwhite, Executive Director Ashley Gillean With notice of the meeting posted in time and manner required by law and a quorum of Board members present, the Board of Directors of the Wylie Economic Development Corporation (WEDC) met in Regular Session on February 22, 2000 in the Board Room of the Wylie Chamber of Commerce at 108 W. Marble St., Wylie, Texas. The meeting was called to order by President John Yeager at 2:08 p.m. ITEM NO. 1 - Discuss and Consider Approval of Minutes for the Wylie Economic Development Corporation Regular Meeting on February 2,2000. MOTION: A motion was made by Marvin Fuller and seconded by Merrill Young to approve the minutes of the February 2, 2000 Regular Board of Directors Meeting of the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 2 - Discuss and Consider Issues Surrounding a Loan Agreement Between Gary Bottoms and the Wylie Economic Development Corporation. Staff advised the WEDC Board that the note between Gary Bottoms of Best Technologies and the WEDC is due and payable. However, as provided in the Loan Agreement between Mr. Bottoms and the WEDC, payment 2 on the note ($28,281.25) should be forgiven being that Mr. Bottoms is not in default. WEDC - Minutes February 22, 2000 Page 2 MOTION: A motion was made by Gary Bowland and seconded by Merrill Young to forgive payment 2 ($28,281.25) associated with the Loan Agreement between Mr. Gary Bottoms of Best Technologies and the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4- FOR and 0 -AGAINST in favor of the motion. ITEM NO. 3 - Discuss and Consider Issues Surrounding a Loan Agreement Between Brad Jacoby and the Wylie Economic Development Corporation. Staff informed the Board of Directors that a draft Loan Agreement was presented to Mr. Brad Jacoby for consideration. The Loan Agreement will detail the terms of a project between the WEDC and Lone Star Circuits (LSC) in which LSC will construct approximately 140,000 square feet on a 13.523 acre site owned by the WEDC. Phase I of the project (100,000 square feet) and Phase II (40,000 square feet) will be constructed simultaneously. As per Mr. Jacoby and provisions in the Loan Agreement, the property will be developed in a way to allow for Phase III (60,000 square feet). The Mr. Jacoby will enter into a note with the WEDC for $589,073 which equates to $1.00 per square foot. The three year note will potentially be forgiven should Mr. Jacoby complete Phase I and II, while planning for the development of Phase III. Staff represented that the Jacoby project will increase the City of Wylie and Wylie Independent School District tax receipts by $135,000 per year. Mr. Bowland indicated that Mr. Jacoby should clearly understand that the potential land grant will be the extent of the Wylie incentive package. The WEDC is not in a position to offer additional cash incentives specifically citing impact/development fees stated Mr. Bowland. The Board agreed and instructed staff to negotiate accordingly. MOTION: A motion was made by Merrill Young and seconded by Gary Bowland to authorize the WEDC Executive Director negotiate a Loan Agreement between the WEDC and Mr. Brad Jacoby of Lone Star Circuits. The WEDC Board of Directors voted 3- FOR and 0 - AGAINST in favor of the motion. Mr. Marvin Fuller abstained citing a previously filed conflict of interest. ITEM NO. 4 - Discuss and Consider Issues Surrounding the Expansion of Sanden International(U.S.A.), Inc.. MOTION: A motion was made by Marvin Fuller and seconded by Gary Bowland to table Item No. 4 for future consideration. The WEDC Board of Directors voted 4- FOR and 0 - AGAINST in favor of the motion. WEDC - Minutes February 22, 2000 Page 3 ITEM NO. 5 - Discuss and Consider Issues Surrounding the Development of Lot 3, Block B (8.035 acres)within Premier Business Park. Staff informed the Board that Cates Drives and Controls (Cates) has shown considerable interest in developing the 8.035 tract east of and adjacent to the Extruders Premier Business Park location. Cates has proposed a 40,000 square foot office facility to house their electrical engineering services. Cates employs 50 individuals and is currently located in Addison. Cates employees are primarily salaried ranging from $50,000 to $125,000. Staff informed the Board that Extruders currently holds an option and first right of refusal on the 8.035 acre site. The WEDC Board instructed staff to negotiate a Letter of Intent with Cates specifying earnest money, the square footage to be developed, and under what conditions the site will be developed. The later depends on Extruders releasing their interest in all or a portion of the site. Staff recommended that Mr. Bowland assist staff in analyzing Cates financial statements prior to entering into a Letter of Intent and that earnest money be set at $10,000. MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John authorizing the WEDC Executive Director to negotiate a Letter of Intent between the WEDC and Cates and initiate the option process between the WEDC and Atrium Companies, Inc., Extruders Division. The WEDC Board of Directors voted 5- FOR and 0 - AGAINST in favor of the motion. ITEM NO. 6 - Discuss and Consider Issues Surrounding the WEDC Strategic Plan 2000. Staff presented the WEDC Board of Directors with a proposed direction for the WEDC to undertake over the next year. Based upon the assumption that the purchase and development of Premier Business Park has been the primary catalyst for economic development in Wylie, discussion was primarily centered around the purchase of additional acreage by the WEDC. Two sites on Hooper Road were discussed along with one site on Sanden Boulevard. The Board believed there are currently two primary obstacles to purchasing land for a potential business park. The first obstacle is cash flow. Based upon the WEDC's commitments to Extruders and the purchase of the industrial facility located at 404 South Highway 78, the WEDC is not in an advantageous position to purchase property at this time. Secondly, it is not in the best interest of the WEDC to undertake the development of the sites currently under consideration. Logistical issues and cost were cited as the primary obstacles. WEDC - Minutes WEDC - Minutes February 22, 2000 Page 4 Staff continued with a strategy to market the industrial site located at 404 South Highway 78. Although currently occupied by Extruders for the next 18 months to 60 months, the WEDC can begin to market the site to retail developers who may be interested in purchasing the site along with the current lease. Board members approved of this strategy and instructed staff to move forward. Finally, staff indicated that considerable effort will be put into the development of a tax abatement program for Moulding Associates and Extruders. In addition, staff commented that an Enterprise Zone designation must be in place prior to the completion of the Extruders facility within Premier Business Park. ITEM NO. 7 - EXECUTIVE SESSION: The Board entered into Executive Session at 3:25 p.m. to deliberate personnel matters (Employment Agreement) as authorized in the Texas Local Government Code, Section 551.074. ITEM NO. 8 - RECONVENE FROM EXECUTIVE SESSION: The Board reconvened from Executive Session at 3:40 p.m. No decisions were made regarding personnel issues. ITEM NO. 9 - Citizen Participation. There being no citizen participation, President Yeager proceeded to Item No. 10. ITEM NO. 10 - Adjourn. There being no further business, the meeting was adjourned at 3:45 p.m. J6gr, President Attest: Samuel D.R. Satterwhite Executive Director