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05-06-1999 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION Tuesday, May 6, 1999 Board Members Present: Gary Bowland Marvin Fuller Kevin St. John John Yeager Staff Present: Samuel Satterwhite, Executive Director Others Present: Chris Trout, Wylie City Council J.C. Worley, Wylie City Council Mike Collins, City Manager 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 May.6, 1999 in the Board Room of the Wylie Chamber of Commerce at 108 W. Marble St., Wylie, Texas. The meeting was called to order by President Yeager at 12:00 p.m. ITEM NO. 1 - Discuss and Consider Issues Surrounding Hogans Gold Label, Inc. (d.b.a. Gold Label, Inc.). MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to table consideration of issues surrounding Hogans Gold Label, Inc. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 2 - Discuss and Consider Issues Surrounding the Relocation/Expansion of Project Southside to Premier Business Park. On March 31, 1999, staff, along with Mr. Marvin Fuller, attended a meeting at Extruders to discuss the potential sale of land on which Extruders currently is located. Aside from WEDC representative, Mr. George Frost, President of Extruders, and Mr. Ken Gilmer, Chief Operating Officer of Atrium Companies were in attendance. Although not the perceived intent of the meeting, the sole discussion revolved around the potential of Extruders remaining in Wylie. WEDC - Minutes May 6, 1999 Page 2 Project specifications were as follows: construction of a 240,000 square feet facility, tilt-wall construction, purchase of an additional extrusion press ($5 million), relocation of 180 jobs from the Woodsville operation, relocation of the existing extrusion press located in Woodsville, and third party ownership of the proposed facility with a 15-20 year lease to Extruders. On April 12th, staff along with a team of Wylie representatives, met with Extruders to discuss potential incentives to the project. Incentives discussed at the meeting were a 22 acre greenfield site south of Hensley and west of Sanden, a 400%tax abatement from the City of Wylie over a 5- year period, a $380,000 reimbursement for relocation expenses, a commitment by the WEDC to secure the designation of an Enterprise Zone within Premier Business Park, and payment for development fees associated with construction of the new facility up to $60,068. A follow-up meeting was scheduled for April 26th. Extruders returned on April 26th and asked the WEDC and City of Wylie to consider the following issues: 1. The value placed upon property within Premier be reduced to $0.50 per square foot; 2. Terms of the abatement package be increased from 400% to 500% over 5 years; and 3. The Wylie city government be supportive of the proposed expansion. The WEDC Board of Directors believed that a reduction in the purchase price of the 22 acre site from $1.00 per square foot to $0.50 per square foot is acceptable. Mr. Bowland commented that the Collin County Central Appraisal District will base their evaluation on market value regardless of the sales price. The WEDC Board did not believe it is in the best interest of the community to offer a 100% abatement. Should a 100% abatement be offered, future projects will be significantly impacted and a precedent will be set. The Board also discussed issues surrounding the relocation grant. Should Extruders relocate to Premier Business Park, the WEDC will fund 50% of the grant at the time a certificate of occupancy is issued, and the final 50% of the grant will be funded at the time all extrusion presses are fully operational. Also, the Board believed a 22 acre site is far in excess the amount of acreage required for a 240,000 square foot facility. Staff informed the Board that a 200,000 square foot, metal facility is now being considered. The Board believed that if the intent to construct a 100% masonry facility is maintained, the increased value will offset the additional land being offered. MOTION: A motion was made by Marvin Fuller and seconded by Gary Bowland to convey 22.2 acres of property within Premier Business Park to Extruders should a 200,000 square foot, 100% masonry facility be constructed, fund a $380,000 relocation grant, value property within Premier Business Park WEDC -Minutes May 6, 1999 Page 3 at $0.50 per square foot, and recommend a 400% abatement package to the Wylie City Council. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. ITEM NO.3 - Discuss and Consider Issues Surrounding the Wylie Chamber of Commerce 1999 Ranch Rodeo. MOTION: A motion was made by Gary Bowland and seconded by Kevin St. John to table consideration of issues surrounding the Wylie Chamber of Commerce 1999 Ranch Rodeo. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 4 -Executive Session. The Wylie Economic Development Corporation Board of Directors convened into Executive Session at 1:50 p.m. to deliberate the purchase of real property as authorized in the Texas Local Government Code, Section 551.072. ITEM NO. 5 - Reconvene From Executive Session. The Wylie Economic Development Corporation Board of Directors reconvened into open session at 1:55 p.m. No action was taken as a result of Executive Session. ITEM NO. 6- Citizen Participation. There being no citizens present, the Chairman proceeded to Item No. 7. ITEM NO 7-Adjourn. There being no further business, the meeting was adjourned at 1:57 p.m. John Y ger, resident Attest: Samuel D.R. Satterwhite Executive Director