08-19-1999 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Thursday,August 19, 1999
Board Members Present:
Gary Bowland
Marvin Fuller
Kevin St. John
John Yeager(arrived at 7:18)
Staff Present:
Samuel Satterwhite, Executive Director
Ashley Gillean, Administrative Assistant
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 August 19, 1999 in the Woodbridge Clubhouse Conference
Room at 7400 Country Club Dr., Wylie, Texas.
The meeting was called to order by Treasurer Marvin Fuller at 7:00 a.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the June 22, 1999 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 of the June 22, 1999 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 - Discuss and Consider Approval of Minutes for the July 20, 1999 Regular
Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Gary Bowland and seconded by Kevin St. John to
approve the minutes of the July 20, 1999 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. 3 - Discuss and Consider Approval of Minutes for the July 27, 1999 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 of the July 27, 1999 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.
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August 19, 1999
Page 2
ITEM NO. 4 - Discuss and Consider Approval of Minutes for the August 4, 1999 Regular
Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
approve the minutes of the August 4, 1999 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. 5 - Discuss and Consider Approval of the May, 1999 Treasurers Report for the
Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
approve the May, 1999 Treasurers 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. 6 - Discuss and Consider Approval of the June , 1999 Treasurers Report for the
Wylie Economic Development Corporation.
MOTION: A motion was made by Gary Bowland and seconded by Kevin St. John to
approve the June, 1999 Treasurers 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. 7 -Discuss and Consider Approval of the July, 1999 Treasurers Report for the
Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
approve the July, 1999 Treasurers 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. 8 -Discuss and Consider Issues Surrounding a Loan Agreement Between the
Wylie Economic Development Corporation and Althuser,Inc.
Staff indicated that discussions have been ongoing between the WEDC and Althuser for the past
two months regarding the relocation of Althuser to 544 Industrial Park. Currently located in
Dallas, Althuser is a manufacturer and distributor of ladies clothing. Althuser has proposed the
construction of a ±13,000 square foot facility on lots 5 and 6 of 544 Industrial Park. Currently
Althuser employs 15 individuals.
Staff provided the Board with a Letter of Intent (LOI) between the WEDC and Althuser defining
the WEDC's intent to convey the above mentioned property to Althuser. The Board instructed
staff to have the LOI executed and request detailed financial statements from Althuser. Staff
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August 19, 1999
Page 3
indicated that financing is currently being sought by Althuser and that the LOI will expedite the
financial institutions understanding of the WEDC's involvement.
MOTION: A motion was made by Marvin Fuller and seconded by Gary Bowland to
approve a Letter of Intent between the WEDC and Althuser, Inc. The
WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of
the motion.
ITEM NO. 9 -Discuss and Consider Issues Surrounding a Loan Agreement Between the
Wylie Economic Development Corporation and FarmTek.
Staff informed the WEDC Board that FarmTek has met two of the three requirements contained
in the Loan Agreement between the two organizations. FarmTek currently occupies +50% of the
facility to the east and a flooring services company has entered into a three year lease for the
balance of the same facility. Therefore, two of the three requirements have been satisfied.
The west building is currently occupied by the Lady Like Shop which recently entered into a one
year lease. Mr. Fuller commented that the WEDC's investment in this project affected the ability
of a local business to remain in Wylie following the downtown fire in December, 1998. Based
upon the Lady Like Shop lease, the Board believed the intent of the Loan Agreement had been
met in regards to forgiveness of the third payment.
MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to
forgive all payments associated with a Loan Agreement between the
WEDC and FarmTek, Inc. The WEDC Board of Directors voted 4 - FOR
and 0 - AGAINST in favor of the motion.
ITEM NO. 10 - Discuss and Consider Issues Surrounding a Loan Agreement Between the
Wylie Economic Development Corporation and Hoffman Blastroom Equipment.
Staff informed the Board that payment 1 associated with Note 1 of the Loan Agreement between
the WEDC and Hoffman Blastroom Equipment has become due. Hoffman is not in default,
having met all requirements of the loan agreement.
MOTION: A motion was made by Gary Bowland and seconded by Marvin Fuller to
forgive payment 1 associated with Note 1 of the Loan Agreement between
the WEDC and Hoffman Blastroom Equipment. The WEDC Board of
Directors voted 4 - FOR and 0 - AGAINST in favor of the motion.
ITEM NO. 11 - Discuss and Consider Issues Surrounding a Loan Agreement Between the
Wylie Economic Development Corporation and Yelrow,Inc. (J C Ornamental Iron).
Staff reviewed the issues surrounding a Loan Agreement between Yelrow, Inc. and the WEDC.
Yelrow intends to complete construction of a 12,000 square foot manufacturing facility. Upon
completion, Yelrow will lease the facility to JC Ornamental Iron Works.
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August 19, 1999
Page 4
Based upon the added value to the tax roles of$416,000 in real property and $98,379 in personal
property, this will generate $32,146 in taxes to the City of Wylie and Wylie Independent School
District over the next three years. Staff indicated that an incentive package of+$32,000 would
be in line with similar projects in which the WEDC participated in equaling three years of new
revenue generated.
Staff recommended that a standard Loan Agreement be entered into between Yelrow and the
WEDC. Board recommendations were that the Note be secured by the property and a personal
guaranty executed by J. C. Worley. Also, evidence of taxes paid should be received prior to
consideration of forgiveness and upon issuance of a certificate of occupancy, the loan is funded
directly to the First National Bank of Sachse.
MOTION: A motion was made by Gary Bowland and seconded by Marvin Fuller to
authorize the WEDC Executive Director to draft an Loan Agreement
between Yelrow, Inc. and the WEDC, further authorizing the WEDC
Chairman to execute said Loan Agreement. The WEDC Board of
Directors voted 3 - FOR and 0 - AGAINST in favor of the motion. Board
member St. John abstained from the vote due to a conflict of interest.
ITEM NO. 12 - Discuss and Consider Issues Surrounding the Relocation/Expansion of
Extruders, Inc. to Premier Business Park.
Staff updated the Board on issues surrounding the relocation/expansion of Extruders, Inc. to
Premier Business Park. Staff informed the Board that a Loan Agreement, Agreement to
Purchase, a Lease Agreement between the WEDC and Extruders, Inc., and a Loan Agreement
between the future property owners and the WEDC would be presented to Extruders for their
approval during the week of August 23, 1999.
ITEM NO. 13 - Discuss and Consider Issues Surrounding the Proposed Fiscal Year 1999 -
2000 Budget for the Wylie Economic Development Corporation.
Staff presented a proposed FY 1999 - 2000 Budget to the WEDC Board of Directors. Board
Member St. John requested that amounts budgeted for Advertising and Electric Utility be
reviewed for accuracy. Mr. St. John also requested a detailed analysis of the "Other" account to
specify why expenditures are 834% over budget. Staff indicated the proposed budget has been
presented for information only. Therefore, no action was taken by the WEDC Board.
ITEM NO. 14 - Staff Reports.
Staff updated Board Members regarding issues surrounding the flood plain reclamation study,
L.G. Motorsports, WEDC strategic planning, Gold Label, Inc., Multi-Machining, and City of
Wylie personnel.
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August 19, 1999
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ITEM NO. 15 - Executive Session.
The WEDC Board of Directors convened into Executive Session at 8:45 a.m. to deliberate
personnel matters as authorized in the Texas Local Government Code, Section 551.072.
ITEM NO. 16-Reconvene from Executive Session.
The WEDC Board of Directors reconvened into open session at 9:10 a.m. The Executive
Director was given a personnel evaluation by the Board. Areas of improvement recommended to
the Executive Director are better time management and better use of resources. Otherwise, the
WEDC Board of Directors were pleased with the efforts of the Executive Director and authorized
the following salary adjustments:
1. Annual salary increase of 11% effective immediately;
2. Car allowance increase of 11% effective immediately; and
3. A one time bonus of$3,000.
ITEM NO. 17 - Citizen Participation.
There being no citizens present, the Chairman proceeded to Item No. 18.
ITEM NO. 18 - Adjourn.
There being no further business, the meeting was adjourned at 9:35 a.m.
ohn Ye er, President
Attest:
Samuel D.R. Satterwhite
Executive Director