06-06-2019 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Thursday, June 6, 2019—6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
CALL TOO ' PER
Announce the presence of a Suorum
President Bryan Brokaw called the meeting to order at 6:30 a.m. Board Members present were
Todd Wintters, John Yeager, and Marvin Fuller.
Mayor Eric Hogue and City Manager Chris Hoisted 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 May 15, 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 May 15, 2019 Minutes of the Wylie Economic Development
Corporation. The WEDC Board voted 4—FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 2 — Consider and act a Performance Agreement between the WEDC and E&H
Industries. L.L.0
Staff informed the Board that he was still awaiting information pertinent to this item and asked
that the Board table the item to a future meeting.
MOTION: A motion was made by Marvin Fuller and seconded by Todd Wintters to table
this Item to the July Regular Meeting of the WEDC. The WEDC Board voted
4—FOR and 0—AGAINST in favor of the motion.
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June 6, 2019
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ITEM NO. 3—Consider and act upon ratification of a Residential Contract for the
purchase of real property located at 503 S. Ballard and further authorize WEDC President
Brokaw to execute all documentation necessary to effectuate the transaction.
Staff reviewed an executed Residential Contract between the WEDC and Mr. Gary Braley for the
purchase of Lot 11, Block A of the Butler Subdivision (503 S. Ballard) for a purchase price of
$175,000. As per the direction provided in Executive Session, staff executed the contract and
further provided the opportunity for Mr. Braley to occupy the property for up to twelve months
from closing at no cost other than utilities and maintenance.
The subject property represents a key acquisition for WEDC/City redevelopment efforts on South
Ballard.
Board Member Fuller inquired about the twelve-month occupancy by Mr. Braley and specifically
whether his occupancy entitled him to lease the property to others and whether or not he would
insure the property and be responsible for maintenance and repair. Staff responded that the lease
which would take effect at closing, would not allow for sub-letting to others and would require
renter's insurance be obtained for the contents of the property. The WEDC would insure the
structure as we do with all or our properties. Mr. Braley would be responsible for all costs
associated with his tenancy including maintenance and repair.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to ratify
a Residential Contract for the purchase of real property located at 503 S.
Ballard in the amount of $175,000 and further authorize WEDC President
Brokaw to execute all documentation necessary to effectuate the transaction
The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4—Consider and act upon ratification of a Purchase Sale Agreement between
the WEDC and The Kansas City Southern Railway Company for the purchase of an
approximate 2.563 acre tract of land situated in the J. Truitt Survey,Abstract No. 920,and
the F. De La Pina Survey, Abstract No. 688, City of Wylie, Collin County, Texas and being
the same tract of land as described in deed to Gulf Colorado & Santa Fe Railway
Company, recorded in Volume 30, Pages 470-471, Deed Records, Collin County,Texas and
further authorize WEDC President Brokaw to execute all documentation necessary to
effectuate the transaction.
Staff presented for ratification an executed Purchase Sale Agreement between the WEDC and The
Kansas City Southern Railway Company for the WEDC purchase of 2.563 acres generally located
at the southwest corner of Brown Street and State Highway 78.
The purchase price of $669,882 is based upon an appraisal of $6 psf received by KCS for the
property. Funds for the acquisition are earmarked within the loan secured from The American
National Bank of Texas for the acquisition of properties near the intersection of Brown&78. Debt
service associated with said loan are identified within the FY 2019—2020 WEDC Budget.
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June 6, 2019
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MOTION: A motion was made by Marvin Fuller and seconded by Todd Winners to ratify
a Purchase Sale Agreement between the WEDC and The Kansas City
Southern Railway Company for the purchase of an approximate 2.563 acre
tract of land situated in the J. Truitt Survey, Abstract No. 920, and the F. De
La Pina Survey, Abstract No. 688, City of Wylie, Collin County, Texas and
being the same tract of land as described in deed to Gulf Colorado & Santa
Fe Railway Company, recorded in Volume 30,Pages 470-471,Deed Records,
Collin County, Texas and further authorize WEDC President Brokaw to
execute all documentation necessary to effectuate the transaction. The
WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 5—Consider and act upon an Amendment to Performance Agreement between
the DC and Cross Development, LLC.
Staff informed the Board that as presented in previous Board Meetings, Cross Development is
requesting a 120-day extension to complete Performance Obligations set forth within Section 2 of
the Performance Agreement. The extension was requested to offset significant construction delays
resulting from an extraordinarily wet 4th quarter of 2018.
The City Manager will be presenting an Amendment to the Wylie City Council for a Chapter 380
Agreement between Cross and the City of Wylie requesting an identical extension to the
Completion Date. Staff recommended that the Boards' action be subject to City Council approval
of the 380 Agreement.
Board Member Wintters expressed concern that this amendment was pre-mature given the time
remaining until Cross is contractually obligated to be complete and the possibility of future
weather delays. Staff explained that these concerns had been communicated and Cross was aware
that no future extensions would be granted.
Board Member Fuller confirmed that Cross had requested a 90-day extension and, since no future
extensions will be granted, the Amendment provides for a 120-day extension.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve an Amendment to Performance Agreement between the WEDC and
Cross Development, LLC. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 6—Consider and act upon an Amendment to Performance Agreement between
the DC and SCSD-Finnell,Ltd.
Staff reviewed an Amendment to Performance Agreement to address additional opportunities
associated with the Finnell project adjacent to Wylie Printing. Under the original Performance
Agreement, Finnell was required to secure at least one Certificate of Occupancy(CO) by August
31,2019 for partial reimbursement of Qualified Infrastructure expenses. Additionally,Finnell was
required to secure at least 60% restaurant uses within the 10,000 square foot center by December
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June 6, 2019
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31, 2020 to receive the remainder of the reimbursement incentive. Total Reimbursement Incentive
available to Finnell under the original Agreement was $75,000.
Under the proposed Amendment, Finnell must still achieve at least one certificate of occupancy
by August 31, 2019 but is also required to secure 66% in restaurant uses no later than January 31,
2020. Total Reimbursement Incentive available to Finnell under the Amendment is $175,000.
With added infrastructure participation Finnell will be able to secure a Fish N' Tails Oyster Bar
which has locations in Richardson (2), Plano, and Garland. Fish N' Tails will be relocating one
of its Richardson operations to Wylie and entering into a 10-year lease with Finnell. Further, Fish
N' Tails required the developer to pay 100%of the finish out costs and expand the proposed patio.
Staff has reviewed the financials of this user with average sales of other locations generating sales
tax in excess of the total WEDC Reimbursement Incentive in approximately 24 months. Finnell
is pleased to secure a user which is unique to Wylie, provides such a quality alternative for Wylie
residents, and will complement the adjoining WEDC lot and existing retail/commercial
developments.
MOTION: A motion was made by John Yeager and seconded by Marvin Fuller to
approve a First Amendment to Performance Agreement between the WEDC
and SCSD-Finnell, Ltd. The WEDC Board voted 4—FOR and 0—AGAINST
in favor of the motion.
ITEM NO. 7— Consider and act upon issues surrounding the relocation of a NTM I 42"
water distribution line impacting potential commercial development at State Highway 78
and Brown Street.
As discussed in Executive Session, there is a 42" NTMWD water line running parallel to Hwy 78
and directly through the 2.563-acre KCS property. After discussions with various developers,
engineers and architects, staff believes that the current alignment impacts the buildable area
enough to warrant relocation of the water line. Relocating the line not only reduces the setback on
the development and creates a more efficient site, but also creates the potential for an additional
QSR pad site.
Staff believes that the reduced setback will drastically aid in marketability and the additional cost
of moving the line will be offset by an additional pad sale.
Board Member Fuller raised concerns about the cost-benefit relationship associated with moving
this line at this time with no developer identified for the site.
MOTION: A motion was made by John Yeager and seconded by Marvin Fuller to
approve a First Amendment to Performance Agreement between the WEDC
and SCSD-Finnell, Ltd. The WEDC Board voted 3—FOR and 1 —AGAINST
in favor of the motion, with Marvin Fuller dissenting.
DISCUSSION ITEMS
ITEM NO. 8—Discuss issues surrounding the FY 2019-2020 DC Budget.
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June 6, 2019
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Staff presented a first draft of the FY 2019 - 2020 WEDC Budget to the Board and sought input
from Board Members prior to a second Budget Work Session tentatively scheduled for June 4th
As is the case every year, staff has worked closely with Finance to develop an accurate Beginning
Fund Balance being that the WEDC budgets to have those monies available for the following year
and bases its expenditures on the same.
The WEDC has estimated $5,818,412 in available resources including a beginning fund balance
of$327,291.
Sales Tax projections are typically estimated in March. At that time, year-end receipts for FY
2018 —2019 were calculated at $2.82 mm, or a 10% gain over FY 2018 — 2019. From the year-
end total, staff has budgeted for a conservative 5% growth rate for FY 2019—2020 creating sales
tax projections of$2,960,895.
In FY 2018 —2019, staff had budgeted for the sale of the WEDC pad site on Highway 78. With
no contract pending, staff has carried that sale over to FY 2019 — 2020 along with the potential
sale of a pad site within the 544 Gateway property which is experiencing significant activity.
In addition to operating funds for FY 2019-2020, Incentives for known projects are $1,016,889
with $500,000 allocated for future projects which arise during the budget year. $1,415,325 will
be allocated to debt service with three loans being retired in FY 2018 - 2019 and two loans
transitioning to P&I in FY 2019 -2020.
Finally, $575,000 will be allocated to Street & Alleys for development costs associated with the
Brown& 78 site.
Staff indicated a second Budget Work Session will be held in June with a final draft being
presented to Council on July 11th.
ITEM NO. 6— Discussion of issues to be placed on a future DC Board Meeting agenda
(no substantial consideration/discussion allowed).
No Board Member requested that an item be placed on a future agenda.
Mr. Satterwhite called the Board's attention to the fact that this meeting would be the last Board
Meeting he would attend prior to Mr. Fuller's departure from the Board. He thanked Mr. Fuller
for his service and dedication through the years to the City of Wylie and the WEDC.
Chris Hoisted and Mayor Hogue left the meeting at 8:01 a.m. and did not return.
EXECUTIVE SESSION
Recess into Closed Session at 8:02 a.m. in compliance with Section 551.001, et. seq. Texas
Government Code, to wit:
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June 6, 2019
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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 & Skyview
• State Highway 78 & Alanis
* State Highway 78 &P.M. 544
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 2013-3a
• Project 2017-12b
• Project 2019-8b
* Project 2019-6a
I CONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
The WEDC Board of Directors reconvened into open session at 8:36 a.m. and took no action.
Marvin Fuller addressed the Board expressing that it had been his honor to serve on the Board. He
thanked Sam Satterwhite for his leadership of the WEDC and wished him well in the future.
- I JOURNMENT
With no further business, President Brokaw adjourned the WEDC Board meeting at 8:37 am.
Bryan Bt4(nkavv,President
ATTEST:
--SantuntSatterwhite, Director