04-17-2001 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
April 17, 2001
Board Members Present:
Gary Bowland
Marvin Fuller
Kevin St. John (arrived at 7:30 a.m.)
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
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 April 17, 2001 in the Woodbridge Golf Club Conference
Room located at 7400 Country Club Drive, Wylie, Texas.
The meeting was called to order by President John Yeager at 7:20 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the January 25, 2001
Regular Board of Directors Meeting of the Wylie Economic Development Corporation
MOTION: A motion was made by Marvin Fuller and seconded by Gary Bowland to
approve minutes for the January 25, 2001 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 — Consider and Act Upon Approval of Minutes for the February 22, 2001
Regular Board of Directors Meeting of the Wylie Economic Development Corporation
MOTION: A motion was made by Marvin Fuller and seconded by Merrill Young to
approve minutes for the February 22, 2001 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.
WEDC—Minutes
April 17, 2001
Page 2
ITEM NO. 3 — Consider and Act Upon Approval of Minutes for the March 27, 2001
Regular Board of Directors Meeting of the Wylie Economic Development Corporation
MOTION: A motion was made by Marvin Fuller and seconded by Merrill Young to
approve minutes for the March 27, 2001 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. 4 — Discuss and Act Upon Issues Surrounding an Access Easement Affecting
WEDC Property Located at 404 South Highway 78.
Staff presented the WEDC Board with a request for an access easement from Jonathan Kagen
Properties (JKP) which would provide access from the Walgreens site to State Highway 78 via
WEDC property. The concept drawing provided by JKP depicted an access drive which did not
account for the conveyance of Kansas City Southern right-of-way which will be available to
Walgreens and JKP. Therefore, the use of the property would not be maximized.
Board member Bowland commented that it is premature to discuss an access easement with the
location of any potential easement unknown at this time. Board member Fuller requested that
JKP be notified that the WEDC will discuss an access easement at a time when the location of
that easement can be finalized.
MOTION: A motion was made by Marvin Fuller and seconded by Gary Bowland to
deny a request made by JKP for a mutual cross access easement. The
WEDC Board of Directors voted 4 — FOR and 0 — AGAINST in favor of
the motion. Board member St. John abstained due to a conflict of interest.
ITEM NO. 5 — Discuss and Act Upon Issues Surrounding the Demolition of WEDC
Property Located at 404 South Highway 78.
Staff presented the Board with two bids for demolition of the Extruders site. In anticipation of
selling the site for a retail use, staff will be presenting the demolition of the existing facility to
potential buyers/brokers as a vital element of the sale. Based upon a low bid by Intercon
Demolition ($189,593), the removal of all improvements will add $0.857 to the sales price.
Board members commented that the demolition of the facility prior to or shortly after the sale is
important to the WEDC and community, but is not an absolute at this time. Boar member Young
indicated that a third bid would be required should the WEDC decide to demolish the facility
prior to the sale.
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April 17, 2001
Page 3
No action was taken on this item.
ITEM NO 6 — Discuss and Act Upon a Contract of Purchase and Sale for WEDC Property
Located at 404 South Highway 78.
Staff presented to the Board a Contract of Purchase and Sale brought by Stanley Haddock Real
Estate Investments. The offer provides for a$6.00 per square foot sales price with approximately
180 days to close. Stanley Haddock has been described as an investor with no intent of
developing the property.
Board member Fuller commented that it is difficult to respond to the offer without some
knowledge of the intent of the buyer. Mr. Fuller further commented that the sales price is
directly linked to the use of the property emphasizing that a quality retail development may pay
less for the property opposed to an investment group. Staff continued to emphasize the
importance of having this buyer demolish the site prior to, or soon after the proposed sale.
The Board instructed staff to convey the following to Mr. Haddock: $25,000 earnest money
required, the WEDC will pay for the title policy, a 90 day due diligence period will be allowed
with 120 days to close, demolition of the site must begin within 30 days following closing, the
WEDC will pay a 3% sales commission to Mr. James Blakey, and the site must be rezoned from
industrial to retail/commercial.
MOTION: A motion was made by Marvin Fuller and seconded by Merrill Young to
counter the Contract of Purchase and Sale from Stanley Haddock Real
Estate Investments with an asking price of $8.80 per square foot. The
WEDC Board of Directors voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 7 — Discuss and Act Upon Issues Surrounding the Expansion/Relocation of
Mann Made, Inc.
No new information was provided to the Board surrounding this issue.
ITEM NO. 8 — Discuss and Act Upon Issues Surrounding the Expansion/Relocation of
B.E.&H., Inc.
No new information was provided to the Board surrounding this issue.
WEDC—Minutes
April 17, 2001
Page 4
ITEM NO. 9 — Discuss and Act Upon Issues Surrounding the Purchase of Property
Generally Located Near the Intersection of Martinez Lane and Kristen Lane.
Staff brought forward a request to negotiate for the purchase of two industrial tracts on Martinez
Lane. Tract I is owned by Holland Hitch consisting of 8.45 acres with approximately 2.51 acres
affected by the flood plane. Holland Hitch has not indicated an asking price. Tract II is
represented by CB Richard Ellis consisting of 10.01 acres with approximately 2.91 acres affected
by the flood plane. CB Richard Ellis indicated that there is an $0.88 per square foot asking price
for Tract II. Tracts I & II are south and adjacent to Martinez and adjacent and to the west of the
Holland Hitch facility.
Staff indicated that both Mann-Made and B.E.&H. would be interested in purchasing a 4 and 2
acre tract respectively from the WEDC if both tracts can be acquired. Staff presented concerns
regarding the flood plane, a gas line easement, and a TXU overhead easement, which would
affect the development of the property. Staff presented the Board with a concept site plan, which
depicted a 600' cul-de-sac which would provide access to all points of the site. Cost estimates
came in at $90,000 which includes water, sewer, and road to site. Board member Fuller
questioned the need to expend monies for access up front instead of leaving that responsibility to
future developers. However, Mr. Fuller agreed that the WEDC should pursue the purchase of the
tracts and debate development strategies at a later date. Mr. Fuller directed staff to determine
property ownership for all adjacent properties so that development options can be fully explored.
Board member St. John commented that the WEDC should explore owner financing on Tract I
and request a 180-day option on Tract II.
MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John
authorizing the WEDC Executive Director to offer $562,882.32 ($0.70 per
square foot) for the purchase of approximately 18.46 acres generally
located near the intersection of Martinez Lane and Kristen Lane. The
WEDC Board of Directors voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 10 — Discuss and Act upon Issues Surrounding a Loan Agreement Between
Carlisle Coatings & Waterproofing and the WEDC.
Staff presented the Board with changes to the Carlisle Loan Agreement which had been approved
at the March 27, 2001 WEDC Board Meeting. The following concepts were applied to the
agreement as presented: (1) Carlisle will pay cash for all improvements with no need for
language referencing a construction loan, (2) all loans forgiven by the WEDC will be
characterized as `capital contributions' as allowed under Section 118 of the Internal Revenue
WEDC —Minutes
April 17, 2001
Page 5
Code, (3) Carlisle will be allowed to establish and conduct new operations not contemplated in
the Agreement outside of Wylie, (4) Carlisle is now responsible for applying for a zoning change
and not securing the change, (5) minor changes to the indemnification language was made, and
(6) sale and leaseback language for the new facility was added.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
approve changes made to the Loan Agreement between Carlisle Coatings
& Waterproofing, Inc. and the WEDC. The motion further authorized
WEDC President John Yeager to execute the Loan Agreement and all
associated documentation. The WEDC Board of Directors voted 5 — FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 11 —Citizen Participation.
There being no citizen participation, President Yeager proceeded to Item No. 12.
ITEM NO. 12—Adjourn.
There being no further business, the meeting was adjourned at 9:20 a.m.
o Yea er, President
Attest:
Samuel D.R. Satterwhite
Executive Director