05-26-2009 (WEDC) Minutes Minutes
Wylie Economic Developme it Corporatioi
Board of Directors Meeting
eld to Replace May 15,2009 WEDC Board Meeting Which Failed to Meet Posting equirements Ur der the
Texas Open Meetings Act
Friday, May 26, 2009 —7:00 A.M.
I wood National Bank—Conference Room
200 South ighway 78 —Wylie, Texas
CALL TO 0 i ER
Announce the presence of a Quorum
President Fuller called the meeting to order at 7:00 a.m. Board Members present were: John
Yeager, Mitch herzog, Todd Wintters and C s Seely.
WEDC stal'' present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry anis.
Ex-Officio i oard Members Mayor Eric Hogue and Mindy Manson were present.
CITIZEN PARTICIPATION
There being o citizen participation, President Fuller proceeded to Action Items.
ACTIO. ITEMS
ITEM NO. 1—Co i sider and act upon approval of the April 17, 2009 Minutes of the WEDC
Board of Directors Mee g.
MOTION: A motion was made by Mitch Lerzog and seconded by Chris Seely to
approve the April 17, 2009 Minutes of the WEDC Board of Directors
Meeting. The WEDC IOrd voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 2 — Consider and Act Upon Approval of the April 2009 WEDC Treasurer's
eport.
MOTIO motion was made by Chris Seely and seconded by Todd Winners to
approve the April 2009 WE,C Treasurer's eport. e WEDC Board
voted 5—FOR and 0— AGAINST i favor of ie motion.
ITEM NO. 3— Consider and Act Upon Issues Surrounding t e Purchase of 0.437 acre from
Crossroads Manageme it IV,Ltd. H the mount of$161,687 plus a plicable clos ig costs.
e Planning & Zoni g Commission un imously approved e plat for the WEI C/Crossro s
tract on 5-5-09. The City Co ncil will consider approval of the same on 5-26-09. Staff
WEDC Minutes
May 26, 2009
Page 2 of 5
anticipates that the plat will be api roved on the 26th and the WEDC and Crossroads can proceed
to closing p 'or to the June 15 ' deadline. Being that the WEDC Board has reviewed the
executàL contract, survey, and title commitment several times, that information is not being
provided for your review.
Staff along with Board member Herzog toured the existing structure locat- on the site. Staff
noted that it may t. e up to 90 days for the site to be cleared and it is unknown at this time as to
whether e tenant will remove all items from the property. Staff recommended that following
closing, the WEDC should enter into a 90 day lease wi the existing tenant, requiring that the
tenant vacate the premises at the e d of the term. Staff had bee told that the tenant is currently
paying $750 per month.
A point to consider in the future would be that after the te ant vacates the premises, WEDC
should clean the property and consider ot leasing to a new tenant so that it would be available to
sell should the opportunity present itself.
MOTION: A motion was ade by Todd Wintters and seconded by Mitch Herzog to
auH orize President Fuller to execute all documentation necessary to
effectuate the purchase of 0.437 acre from Crossroads Manageme it IV, Ltd.
in the amount of S,1,61,803.62 plus all applicable closing costs, and further
authorize staff to enter into a 90 day lease with the existing tenant at a rate
of$750 per month. He WE IC Board voted 5 —FOR and 0—AGA 'ST in
favor of the motion.
ITEM NO. — Consider and Act Upoi Approval of a Budget Transfer for the WEDC FY
2008—2009 Budget.
Staff reported at si ificant maintenance a d repair on three buildings owned by the WEDC on
Industrial Court. 207-4 (Pri e Kuts building) will require $7,500 - $10,000 to bring it up to a
minimum standard to receive a c ificate of occ pancy. 210 and 211 will require approximately
$2,500 in work to present the properties in a professional manner to prospective tenants. It is for
these reasons; staff is requesting the reallocation of funds to the Special Services account.
Staff is proposing reducing expendi res in Travel & Training ($5,000), Audit & Legal ($5,000),
and Engineering—Architect($2,500) to offset the increase to Special Services (SI2,500).
MOTION: A motion was made by Mitch erzog and seconded by Chris Seely to
approve a B dget Transfer R ED5-15-09 for the WEDC FY 2008 —
2009 Budget in the amount of$12,500. e WEDC Board voted 5 — FOR
and 0—AGAH ST in favor of the motion.
ITEM NO. — Consider and Act Upon Issues Surrounding WE iC cost Participa on in the
Acquisition of R11i t-of-Way for Spr given P rkway.
WE I C Minutes
May 26, 2009
Page 3 of 5
Staff reported that the City of Wylie has bee pursuing the condemnation of property for the
southerly extension of Springwell Parkway. • 5-12-09, the Wylie City Council aps roved a
Settlement Agreement in the amount of$300,000 for e purchase of the required right-of-way.
Unless a t-of-way acquisition is bud.eted for, purchases are funded out of H orou fare
impact fees. Impact fees available at this point of time to the City for this purchase are
$279,606.35. The balance of$20,393.65 will be funded by reducing the existing fund balance.
Sta propos-• that e WEDC fund the balance of$20,393.65 for several reasons: 1) He WEDC
took the responsibility initially of acquiring the ri t-of-way at no cost which failed and led us to
this point; 2) the extension of roadway infrastructure is key to the success of Woodbridge
Crossing and thus falls within the charge of tr re WEDC; and 3) the proportionate share being
proposed is more than equitable. Ste stated His belief that a partnership does exist on t
project between e WEDC an• City as evidenced by the existing Performance A. eeme ts by
the City and WEDC for the benefit of Woodbridge Crossing.
MOTION: A motion was made by Cr *s Seely and seconded by Mitch Herzog to
authorize the transfer of$20,393.65 to e City of Wylie as participation in
the purchase of the ri t-of-way for Springwell Parkway. re WE PC
Board voted 5 —FOR and 0—AGAINST in favor of the motion.
PRESENTATION
Staff report: review staff activities surrour.ding Verizon Wireless commu'ications tower,
ICSC An ual Conference, Wylie Senior Care, BBV Texas Development, a rd djSCrSSjOr,r of
intermo al activity impacting CoH rr County.
As a reminder to Board members, the Board may not discuss :r r item which is not specifically
identified on the agenda. Or ly ose items listed above can be discussed. Should any Board
rrr ember wish : r item to be placed on the agenda at any time prior to a Board meeting, please
contact the WEDC President or staff.
Verizon Wireless: Throu: r its Site Acquisition Services Division, Verizo r Wireless is
attempting to expand its wireless communication facilities in Wylie. The WEDC has been
contact-•r in an effort to lease a 40' x 40' parcel on Cooper. The 25 year lease would yield
$10,000 annually with a 2% annual escalator. Staff indicated to Verizon that it would not be in
the WEDC's best interest to encumber any WEDC property in the Cooper Drive area for that
period of time.
CCCAD Preliminary Estimate of Appraised Value: The Collin County Central Appraisal
District released a 2009 estim rte of appraised value at $2,130,550,380. Certified valuations for
2008 were $2,120,999,582. Wit *n the 2009 rH re, there is $114.4 million in new cons rCtiOfl
with $15.4 million being new commercia industrial activity.
ICSC Annual conference May 17 — 20 2009: Ste r rted that e ICSC COr ference was a
success eetings with Dr rr in Brands, r e r r.S Store, Christian Brothers Auto r otive, Cobb
WEDC Minutes
May 26, 2009
Page 4 of 5
Fendley, -N-Out :urger, Dairy Queen, ayiess were all productive e primary focus of the
'p was the meeting between Wylie and Kohl's. Included in the meeting were r-1,resentatives
from Direct Develop ent and Inland Real Estate. Kohl's was assur- in no uncertai terms that
FHHe City Wylie would process any special development rsuirements necessary to facilitate an
opening date of October 2010. Further, Kohl's o cials as well as Inlans were assuri, that the
City of Wylie, WEDC and Direct Development would be renegotiating the existing performance
au cements to provide Direct with the greatest opportunity to develop a well-ordered shopping
center. Wylie r- resentatives were informed that Ko 's would m ea public announcement as
to its intention to construct a Wylie store within 30 days.
Wylie Senior Care: Hill & Wilkinson ticipates be: fining construction on the Wylie Se ior
Care facility located behind Brookshire's on May 25th with a completion time frame of no longer
than 4 months.
BBV Texas Development: The WEDC entered into a P ormance A eement with :BY Texas
Development on June 26, 2007 to participate in o site infrastructure improvements associated
with the BBV project. Within the Ai cement, a $7 million improvement value is called for
along with the employment of ty full and part time employees at the Wylie location. While
the employment requirement will be met, t e preliminary estimate for valuation of the site came
in at $6.704 million from the CCCAD. While the Board will not determi e the status of a
$32,000 reimbursement incentive payment until after July 25, 2009, staff is monitoring the
situation closely and has informed BBV of the shortfall.
At the time the Agreement was drafted, the WEDC contemplated potential valuation shortfalls
and included language which would allow consideration of a reduced incentive payment. Please
note Section 5 of the attached Agreement which states that "in the event that the Company does
not meet or exceed the Performance Requirement as specified in Sectio II, the WEDC
Reimbursement Incentive will be either voided or reduced proportionately in advance of
ayment at the sole discretion of the WEDC."
Ste has discussed with BBV the language incl ded within Section 5 of the Agreement and
indicated that the Board will consider the issue after the value has been certified. Staff also
informed *WI that further reduction of the value via negotiations with the CCCAD will be
considered by the WEDC Board of Directors.
Intermi dal Activity Impacting Collin County
Staff has no new i formation surrounding this item, but has placed it on the agenda in the event
further discussion comes from the May 13th presentation by Commissioner Hoa. and.
No action was re sliest,' by staff for this item.
EXECUTPa SESSION
The WE PC Board of Directors convened into Executive Session at 7:15 a.m.
DC —Minutes
ay 26, 2009
age 5 of 5
I. Consider issH es s ounding a Perfo ce Agre- ent b- the WEDC and
Woo'',ridge Crossi g, L.P. as au orized in Section 551.087 (Economic Develoement
Negotiations) of the Local Gov ent Code, V- on's Texas Cote otated (Open
Meetinl- Act).
II. Consider issues surrounding the potenti: offering of inc- tives for project Re-tool as
authorized Section 551.087 (Economic Development Negotiations) of the *cal
Gov- ent Code, Vernon's Texas Code otated(*len Meetings Act).
' CO ' , NE TO OPEN MEET
The DC Board of Directors reconvened into open session at 7:17 a.m.
Sanden Presentation. A r- ort was reviewed detailing S. den's inves ent in refurbishing
existing p: s line and its pact on the future arket ••sition of Sandell.
No action was taken as a result of discussions held in Executive Session.
ADJO NT
Wi no farther business, President M. *n Fuller I jo ed the DC oard meeting at 7:18
a.m.
I h /
Ma resident
A TEST:
Sa
uel D.R. Satte ite
Executive Director