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12-09-1997 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday, December 9, 1997
Board Members Present:
Marvin Fuller
Kevin St. John(arrived at 1:30 p.m.)
J.C. Worley
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
Vicky Cross, Administrative Assistant
Others Present:
Mike Collins, City Manager
Henry Garland, Chamber of Commerce Board Member
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 December 9, 1997 in the Board Room of the Wylie Chamber
of Commerce at 108 W. Marble, Wylie, Texas.
The meeting was called to order by President John Yeager at 1:25 p.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the October 21, 1997 Regular
Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to
approve the Minutes for the October 21, 1997 Regular Board of Directors
Meeting for 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 Approval of the October, 1997 Treasurer's Report for
the Wylie Economic Development Corporation.
MOTION: A motion was made by J.C. Worley and seconded by Merrill Young to
approve the October, 1997 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 5 - FOR
and 0 - AGAINST in favor of the motion.
WEDC - Minutes
December 9, 1997
Page 2
ITEM NO. 3 - Discuss and Consider the Relocation of Best Technologies, Inc. to 544
Industrial Park.
Staff presented the Board with the following documents drafted to implement an incentive
package between the WEDC and Gary Bottoms: a Loan Agreement, Promissory Note for
$7,500, Promissory Note for $6,526, Promissory Note for $55,000, Deed of Trust, Real Estate
Lien Note, Warranty Deed with Vendor's Lien, and a Limited Guaranty Contract. Staff reviewed
the above documents which are a product of negotiations between Gary Bottoms and the WEDC
over the past six months.
The Loan Agreement governs the repayment and forgiveness of all incentives being offered to
Mr. Bottoms. The Board members were pleased that the Best Technologies project has come to
a conclusion and advised staff to publicize the WEDC's relocation of 55 employees, etc.
MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to
approve all agreements and documentation required to effectuate the
Corporations' incentive proposal with Gary Bottoms. The WEDC Board
of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion.
Citing a conflict of interest, Board Member Fuller abstained.
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to
authorize John Yeager, Chairman of the Board of the Wylie Economic
Development Corporation, to execute all agreements and documentation
required to effectuate the Corporations' incentive proposal with Gary
Bottoms and Best Technologies, Inc. The WEDC Board of Directors
voted 4 - FOR and 0 - AGAINST in favor of the motion. Citing a conflict
of interest, Board Member Fuller abstained.
ITEM NO. 4 - Discuss and Consider Issues Surrounding the Relocation of Hoffman Blast Room
Equipment to Premier Business Park.
Hoffman presented staff with an updated version of the site plan which the WEDC Board of
Directors have been considering over the past several months. The version considered reflected
an 8,000 square foot expansion of the original fabrication shop, extensive screening of outside
storage areas, and extensive paving surrounding the fabrication facility.
Board Member Fuller maintained a concern for the width of the site. This concern was based
upon the southwest corner being the best site south of New Hensley and the impression that
Hoffman is requesting more property than is actually necessary to efficiently run their business
operations. A majority of the Board members agreed with Mr. Fuller. Board Member St. John
suggested that Hoffman should decrease the width of the site by 50'. As well, the suggestion
was made to insist to Hoffman the extension of the site plan to include property south of the
storage area to the southernmost property line.
WEDC - Minutes
December 9, 1997
Page 3
Additionally, staff presented the Board with an analysis of increased paving cost over that of
crushed concrete on the entire site plan. Staff indicated that based upon a combination of
concrete and asphalt, Hoffman will bear an increased cost of$186,075. Board Member St. John
strongly believed a 75% participation in increased costs, as requested by Hoffman, is excessive.
This belief was supported by the fact that the WEDC Board of Directors previously agreed that a
100% property grant would be acceptable, thus placing a value on the land incentive at a
minimum of$233,481 ($0.80 per square foot). A majority of the Board agreed with the previous
assertion with Board Member St. John suggesting a 50% participation level not to exceed
$65,000.
MOTION: A motion was made by Merrill Young and seconded by J.C. Worley to (1)
reimburse Hoffman 50% of increased paving costs not to exceed $65,000,
and (2) offer Hoffman a parcel of property at the southwest corner of
Premier Business Park which must be 934' deep and not exceed 350' in
width. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST
in favor of the motion.
ITEM NO. 5 - Discuss and Consider Issues Surrounding the Relocation of L.G.
Motorsports to Century Business Park.
The Board was provided with a brief history of the L.G. Motorsports project and a full review of
the Gigliotti's personal income tax returns and L.G. Motorsports balance sheet and income
statements since 1995. Considering the length of time this project has taken to develop, the
Board was pleased that Mr. Gigliotti is prepared to close.
Staff informed the Board that L.G. Motorsports will generate approximately $34,230 in property
tax to the City of Wylie and WISD over the next three years, thus the WEDC investment of
$25,832 will take 2.3 years to recoup. Aside from the increased employment (15) and increased
property taxes, the WEDC Board of Directors believe that the site location within Century
Business Park will generate additional activity at a site which has been dormant for±10 years.
The consensus of the Board was that L.G. Motorsports is an acceptable project for the WEDC to
be involved with. While this is the case, there was concern that the WEDC should not release
any funds prior to the completion of the building. Staff suggested that funds be released upon
issuance of a certificate of occupancy by the City of Wylie. The full Board agreed with that
suggestion. Board Member St. John indicated that due to the fact that L.G. Motorsports markets
their product nationwide, the WEDC must insist on a Wylie mailing address. Staff added that
the WEDC should require Mr. Gigliotti to place `Wylie, Texas' on all L.G. Motorsports racing
vehicles so as to promote Wylie.
WEDC - Minutes
December 9, 1997
Page 4
MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to
authorize staff to initiate the legal steps necessary to loan $25,832 to Lou
Gigliotti. 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 Relocation of CPI
Communications to Premier Business Park.
Staff presented the Board with a brief history of the CPI project which the Corporation has been
involved in for the past eighteen months. Mr. Perry Easterling has indicated that CPI requires
2.34 acres and $20,000 to relocate to Premier Business Park. The site requested is at the
northwest corner of the park and is 530' by 210'.
Although CPI intends to expand the proposed 14,000 square foot facility in the future, the
WEDC Board of Directors believe that the risk of leaving the northern portion of the tract vacant
is too great. Therefore, Board Member Fuller suggested that the WEDC grant the property
necessary to support the proposed operations and offer CPI a first-right-of refusal on property to
the north. The Board was in agreement. In terms of a relocation grant, the Board believed that
$20,000 was far too much for a company with so little personal property. Staff recommended
that the Board offer the amount to be generated by CPI in property taxes to the City of Wylie
over a one year period.
MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to
offer CPI Communications the minimum amount of property necessary to
support CPI operations at the northwest corner of the Park and $2,882 to
relocate to Wylie. The WEDC Board of Directors voted 5 - FOR and 0 -
AGAINST in favor of the motion.
ITEM NO. 7 - Discuss and Consider Issues Surrounding the Reorganization of the Wylie
Chamber of Commerce.
Henry Garland, Wylie Chamber of Commerce Board Member, presented the WEDC Board with
a proposed reorganization of the Wylie Chamber of Commerce. The WEDC is being approached
because the proposal calls for the Chamber to contract with the WEDC for managerial services of
Chamber staff. The Board discussed the issue and agreed that the proposed structure has merit
and supported the further exploration of the reorganization.
ITEM NO. 8 - Staff Reports.
Staff reviewed the project inventory, the status of the Aluma Graphics expansion, Kansas City
Southern Railway, and the realignment of Alanis Lane.
WEDC - Minutes
December 9, 1997
Page 5
ITEM NO. 9 - Citizen Participation.
There being no citizen participation, President Yeager proceeded to Item No. 10.
ITEM NO. 10- Discuss and Consider Issues Surrounding Project First Response.
Staff informed the Board that Project First Response had resurfaced with First Response
management taking the relocation decision to the Board of Directors in order to make offers on
property necessary to initiate the proposed expansion.
ITEM NO. 11 - Adjourn.
There being no further business, the meeting was adjourned at 4:22 p.m.
ohn Ye er, resident
Attest:
Samuel D.R. Satterwhite
Executive Director