07-27-1999 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday, July 27, 1999
Board Members Present:
Gary Bowland
Marvin Fuller
Kevin St. John
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
Mindy Manson, Assistant City Manager
Others Present:
Chris Trout, Council Member
J.C. Worley, Mayor Pro Tem
With notice of the meeting posted in time and manner required by law and quorum of Board
members present, the Board of Directors of the Wylie Economic Development Corporation
(WEDC) met in Regular Session on July 27, 1999 in the Woodbridge Club House Conference
Room at 7400 Country Club Dr., Wylie, Texas.
The meeting was called to order by President John Yeager at 7:00 a.m.
ITEM NO. 1 - Discuss and Consider Issues Surrounding the Relocation/Expansion of
Extruders, Inc. to Premier Business Park.
Staff updated the Board regarding a meeting held between Mr. George Frost and staff. Mr. Frost
requested that the WEDC fund the relocation grant upon execution of the Loan Agreement. Staff
responded that the grant could potentially be funded upon 50% completion of the new facility.
Mr. Bowland questioned the effect on cash flow. Staff responded that the WEDC will have a
fund balance well in excess of the relocation grant on December 31, 1999 —that time which staff
has estimated the funds may be requested. Mr. Fuller commented that historically the WEDC
funds grants at the time a certificate of occupancy is issued due to the fact that the WEDC is not
always completely familiar with the company. Being that Extruders has a presence in Wylie and is
a quality corporate citizen, there is minimal risk in funding at 50% completion.
Staff also discussed the lease of the current facility back to Extruders once the WEDC takes
possession. Mr. Frost requested that Extruders enter into a 5-year lease with an automatic 5-year
extension. Board Members stated that a 10-year lease takes this portion of the project outside the
WEDC—Minutes
July 27, 1999
Page 2
scope of the WEDC and under no circumstance will the WEDC enter into a 10-year lease. Mr.
Fuller indicated that it was his understanding that Extruders would be out of the existing facility in
18-months. Staff indicated that in an effort to reduce capital costs, Extruders cut out the second
paint booth from the new facility. Therefore, Extruders will need to maintain the ability to paint
at the current facility. Staff further commented that should the Board insist on an 18-month lease,
Extruders may pull the offer to sell to the WEDC.
Finally, staff indicated that Mr. Frost has requested that the WEDC be responsible for subleasing
the balance of the facility once Extruders vacates the facility less the paint operations. At that
time Extruders will only occupy ±30,000 square feet and only be responsible for ±30% of the
total lease. The Board as a whole commented that this arrangement is not an option at this time.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
fund the relocation grant at the time 50% of the new facility is completed
further authorizing the negotiation by staff for a 5-year lease under the
following conditions:
1. The lease expires December 31, 2004;
2. Extruders is responsible for 100% of the lease of the facility;
3. Extruders may sublease any portion of the facility; and
4. Extruders may break the lease at any time should they vacate 100%
of the facility.
The WEDC Board of Directors voted 5- FOR and 0 — AGAINST in favor
of the motion.
ITEM NO. 2 - Executive Session.
The WEDC Board of Directors convened into Executive Session at 8:50 a.m. to deliberate the
purchase of real property as authorized in the Texas Local Government Code Section 551.072.
ITEM NO. 3 - Reconvene from Executive Session.
The WEDC Board of Directors reconvened into Open Session at 8:55 a.m. No formal action was
taken.
ITEM NO. 4 - Tour Extruders,Inc.
The WEDC Board of Directors chose not to tour Extruders due to time constraints.
WEDC—Minutes
July 27, 1999
Page 3
ITEM NO. 5 - Citizen Participation.
There being no citizens present, the chairman proceeded to Item No. 6.
ITEM NO. 6 - Adjourn.
There being no further business, the meeting was adjourned at 9:00 a.m.
John eager, President
Attest:
‹reidot4eA
Samuel D. R. Satterwhite
Executive Director