02-05-1997 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Wednesday, February 5, 1997
Board Members Present:
Marvin Fuller
Kevin St. John
J.C. Worley
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
Others Present:
Joel Scott, Wylie City Council Nick Smith, KCS
Mike Collins, City Manager Richard Sparlin, MK Centennial
Mindy Manson, Assistant to the City Manager Robert Swanagon, MK Centennial
Dick Holdaway, KCS Brian McLaren, MK Centennial
Glen Ebeling, KCS Raymond Cooper
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 5, 1997 in the Board Room of Sanden International
(U.S.A.), Inc. at 601 S. Sanden Blvd., Wylie, Texas.
The meeting was called to order by President John Yeager at 10:00 a.m.
ITEM NO. 1 - Presentation of Rail Facility Conceptual Plan by the Kansas City Southern
Railway Co. and Representatives of MK Centennial Engineering,Inc.
Mr. Richard Sparlin of MK Centennial presented to the WEDC Board of Directors issues
surrounding the development of a rail port on approximately 550 acres north of Highway 78 and
east of the Wylie Municipal Complex. Phase I of development will consist of 3 additional
classification tracks to compliment the existing line on the property. These lines will be used
initially to provide relief to traffic at the Zacha Junction Rail Yard. Improvements will be valued
at approximately $3 million which will include a small office and 20 employees. Construction of
the additional classification tracks will begin as soon as KCS receives the appropriate zoning.
Answering a specific question, KCS representatives indicated that two classification tracks can
be constructed within the existing KCS right-of-way without the approval of the City of Wylie.
Phase II of development will consist of relocating the mainline track to the northern portion of
KCS property and rerouting all train traffic through the old Cottonbelt line. The Sante Fe line
would be removed at that point and at-grade crossings will decrease from 21 to 8. The
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February 5, 1997
Page 2
Cottonbelt line will potentially be routed through the former City of Wylie service center,
crossing F.M. 544 west of the existing crossing and connect with the Sante Fe line. At this point,
lifts may reach 10,000 per month.
The later stage of Phase II will consist of an expansion of the classification yard. This will
ultimately result in increased truck traffic. In making the argument that the increased truck
traffic will result in only a small percentage increase in the current truck traffic, Mr. Sparlin cited
1990 traffic counts from the Texas Department of Transportation (TXDOT) which indicate
13,800 vehicles per day travel Highway 78 through Wylie. 10% of that figure has been
identified as truck traffic, thus Wylie already has the truck traffic. Although the increased truck
traffic has been portrayed as minimal, KCS has committed that the later stages of Phase II will
not begin until Highway 78 is widened to Highway 205. Phase II may begin within 3 - 4 years
with an approximate $35 million investment and an additional 20 employees.
KCS also committed to the development of a 250 acre industrial park which will be marketed to
rail users. Board members were concerned that this property would fall within the rail corridor
and thus its taxable value be apportioned the length of the KCS line. Dick Holdaway committed
that it is not the intention of KCS to lease any property within the industrial park, but to sell it to
users and be fully taxable on the Wylie tax rolls.
The question was asked what is to become of the abandoned right-of-way which will be created
by the removal of the Sante Fe line. Bob Swanagon responded that the funds received from
TXDOT for that right-of-way will be used to offset the construction costs of a grade separation at
either Skyview or F.M. 544.
ITEM NO. 2 - Discuss and Consider Issues Surrounding the Development of a Wylie Rail
Facility by the Kansas City Southern Railway Co.
The WEDC Board of Directors showed a great deal of interest in several aspects of the proposal.
If indeed the Sante Fe line is removed, the community will no longer be split by the railroad
tracks and retail property along 78 will be available for development. The combination of
increased traffic and the available right-of-way may encourage TXDOT to expedite the widening
of Highway 78. Also, if the 250 acre industrial park is aggressively marketed by KCS, the
attraction of large industrial users could result in millions of dollars in new, taxable value to the
community. Another issue was raised that if KCS does not build in Wylie, operations may be
moved further north and Wylie will still have to contend with increased train and truck traffic
without the benefit of additional tax base.
Several concerns were raised as well. Will property values surrounding the 550 acres be
adversely affected? Will operations be so obtrusive that surrounding neighborhoods will be
unlivable? Finally, what will the true impact be on existing roadways and does KCS have the
ability to effect the expansion timetables?
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February 5, 1997
Page 3
The WEDC Board of Directors instructed staff to not only investigate the economic impact this
project will have on the community, but also assist City staff in determining quality of life
impacts. All things being equal, the Board believed that this project could be supported by the
WEDC if certain terms and conditions were met by KCS.
MOTION: A motion was made by J.C. Worley and seconded by Merrill Young
instructing staff to work closely with City of Wylie in the analysis of the
impacts a KCS rail port will have on the Wylie community. The WEDC
Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the
motion.
There being no further business, the meeting was adjourned at 12:30 p.m.
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John Y ger, President
Attest:
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Samuel D.R. Satterwhite
Executive Director