04-25-2003 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
April 25, 2003
Board Members Present
Gary Bowland
Marvin Fuller
Kevin St. John(arrived at 7:10 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 25, 2003 in the Conference Room of Woodbridge Golf
Club located at 7400 Country Club Drive, Wylie, Texas.
The meeting was called to order by President John Yeager at 7:00 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the March 18, 2003,
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 the minutes for the March 18, 2003, 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 the March, 2003 Treasurer's Report
for the Wylie Economic Development Corporation.
MOTION: A motion was made by Merrill Young and seconded by Gary Bowland to
approve the March, 2003 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 4—FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 3 — Consider and Act Upon Issues Surrounding a Loan Agreement Between
Carlisle Coatings & Waterproofing,Inc. and the WEDC.
Staff indicated that Carlisle is not in default as defined by the Loan Agreement between Carlisle
Coatings & Waterproofing and the WEDC. Therefore, the WEDC Board of Directors is required
to forgive Payment 1 associated with the sale of land upon which Carlisle is located and
WEDC —Minutes
April 25, 2003
Page 2
furthermore is required to forgive the first advance under Note 2. Staff also indicated that the
second advance associated with Note 2 was delivered to Carlisle resulting in a decrease in
incentives payable to Carlisle over the next three years to $150,000.
MOTION: A motion was made by Marvin Fuller and seconded by Merrill Young to
forgive Payment 1 ($116,667) in regard to Note 1 and forgive the first
advance ($50,000) in regard to Note 2 as required by the Loan Agreement
between the WEDC and Carlisle Coatings & Waterproofing. The WEDC
Board of Directors voted 5 — FOR and 0 — AGAINST in favor of the
motion.
ITEM NO. 4 — Consider and Act Upon Issues Surrounding the Development of WEDC
Property Located at 404 S. Highway 78.
Staff updated the WEDC Board of Directors on matters relating to the completion of demolition
work at the WEDC 5-acre tract, dealings with the Staubach Company, and restaurant
development on the WEDC site. With no recommendation or motion required, the WEDC
Board of Directors proceeded to Item No. 5.
ITEM NO. 5 — Consider and Act Upon Issues Surrounding Refinancing a Note with
American National Bank — Wylie Secured by WEDC Property located at 404 S. Highway
78.
Having gone out to bid for the refinance of a $1.13 million WEDC note, Inwood National Bank
and American National Bank responded to the request for proposal. Inwood offered a floating
rate, adjusted daily to the Bank of America Prime rate with a floor of 4.25% and a ceiling of
6.25% based upon a 20-year amortization. Of the three options provided by American National,
the modification of the existing note (Option 3) for 20 months fixed at 3.75%, then adjusted
annually for 60 months at 200 basis points over the Federal Home Loan Bank one year note, was
the most competitive option.
Staff recommended that the WEDC Board of Directors authorize President Yeager to execute all
necessary documentation necessary to modify the existing note with American National Bank —
Wylie as per the above terms.
Board Member Fuller chose to abstain from the vote based upon his employment with Inwood
National Bank.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland
authorizing President Yeager to execute all documentation necessary to
modify an existing note with American National Bank — Wylie as per
Option 3 as detailed in the ANB Term Sheet. The WEDC Board of
Directors voted 4—FOR and 0—AGAINST in favor of the motion.
WEDC—Minutes
April 25, 2003
Page 3
ITEM NO. 6 — Consider and Act Upon Issues Surrounding an Incentive Package Between
the WEDC and Auto Soft Technical Services.
Staff informed the Board that the second and final installment of $2,500 is due and payable to
Auto Soft Technical Services based upon an incentive agreement between the WEDC and Auto
Soft.
MOTION: A motion was made by Gary Bowland and seconded by Merrill Young to
approve the payment of $2,500 to Auto Soft Technical Services. The
WEDC Board of Directors voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 7—Consider and Act Upon Issues Surrounding a Loan Agreement Between the
WEDC and Hoffman Blastroom Equipment,Inc.
Staff informed the WEDC Board of Directors that Hoffman Blastroom Equipment has filed for
Chapter 11 bankruptcy. Staff commented to the Board that the intent of the Loan Agreement had
been all but met being that two quality facilities have been constructed. Board Member Fuller
commented that while that may be true, a detailed accounting of the Hoffman project should be
presented to the Board for full review.
No recommendation was made by staff requiring a motion or action by the Board.
ITEM NO. 8—Executive Session.
The WEDC Board of Directors entered into Executive Session at 7:50 a.m. to discuss personnel
matters (evaluation of Executive Director) as authorized in the Local Government Code, Section
551.074.
ITEM NO. 9—Reconvene from Executive Session.
The WEDC Board of Directors reconvened from Executive Session at 8:15 a.m.
President Yeager indicated that the performance of the Executive Director warranted a salary
increase resulting in the following motion.
MOTION: A motion was made by Merrill Young and seconded by Marvin Fuller to
raise the base salary of the WEDC Executive Director by 8% effective
April 28, 2003. The WEDC Board of Directors voted 5 — FOR and 0 —
AGAINST in favor of the motion.
WEDC—Minutes
April 25, 2003
Page 4
ITEM NO. 10—Staff Update of Retail/Commercial Projects Impacting the City of Wylie.
Staff updated the WEDC Board of Directors on the construction of Alanis, Home Depot, Wal
Mart, Bank of America, and Wendy's.
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 8:15 a.m.
ohn Y ger,President
Attest:
•
Samuel D.R. Satterwhite
Executive Director