06-19-2009 (WEDC) Minutes Minutes
Wylie Economic I evelop Jent Cori oration
Board of Directors Aleeti rg
Friday, June 19, 2009 —6:30 A.M.
Inwood National ank Conference Roo
200 South ighway 78 — Wylie, Texas
CALL TO PER
Announce the presence of a Quorum
President Fuller called the meeting to order at 6:30 a. 1. oard .embers present were: John
Yeager, Mitch Herzog, Todd Wintters and Chris Seely.
WEDC staff present was xecutive Director Sam Satterwhite and Administrative Assista t
Gerry Harris.
Ex-Officio Board Member Mindy Manso was present. Finance Director Linda Vaughan
arrived at 7:30.
MIZE PARTICIPATION
There being no citizen participation, President Fuller proceeded to Action Items,
ACTION ITE
ITEM NO. 1 — Consider and act upon approval of the May 13, 2009 Minutes of the WEDC
Board of I irectors Meeting.
MOTION: A motion was i ade by Todd Wintters and seconded by John Yeager to
approve the May 13, 2009 Minutes of the WEDC Board of Directors
Meeting. The WEDC oard voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 2 — Consider and act upon approval of the May 26, 2009 Minutes of the WEDC
Board of Directors Meeting.
MOTION: A motion was made by Chris Seely and seconded by John Yeager to
approve the May 26, 2009 Minutes of the WEDC bard of Directors
Mee6 g, The WEDC oard voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 3 — Consider and act upon approval of the May 2009 WEDC Treasurer's
Report.
MO ION: A lotion was made by Mitch Herzog ad seconded by Chris Seely to
approve the May 2009 WEDC Treasurer's Report. The WE C Board voted
— FOR and 0 — AGAINST in favor of the lotion.
WEDC — Minutes
June 19, 2009
Page 2 of 5
ITEM NO. 4 — Co sider and act upon ass Hes surrounding the lease of 'WE'D C pruperty
located at 2804 W. F.M. 544.
Staff anticipated that the WEDC would not be in a position to lease the above grope y for the
next 60 — 90 days. However, the previous tena, t who occupied the facility vacated the premises
a d completely removed all belongings.
As discussed in previous meetings, staff is pursuing the possibility of leasing the 4„750 square
foot ilding to Councilman Red yboth as a personal shop. Staff reported that Council is being
contacted to discuss any perceived co flict of interest which the WEDC and Council may
counter. Althoug staff has not received any negative reaction, the issue must still be
discussed with several re aining council representatives.
Staff presented the te s of the lease being $750 per month in addition to the maintenance of the
surrounding 1.5 acres owned by the WEDC. Current maintenance cost for mowing is ±5200 per
month just for the 1 acre fronting F.M. 544. The WE IC is currently asking $2,000 per month
for 4,000 square feet on Industrial Court which has 1,200 square feet of office and is fully air
conditioned. Staff emphasized that those facilities had received no leasing activity in several
months. President Fuller directed staff to advertise tie property at $1,000 - $1,250 per month to
get a more accurate representation of what the market would bear for this property.
Staff also reported that the existing electrical and plum ing is being evaluated at this time to
determine what improvements are required to receive a certificate of occupancy.
Staff had no recommendatia
ITEM NO. 5 —Consider and act upon approval of the FY 2009 — 2010 WEDC udget.
Staff provided the first draft of the FY 2009 — 2010 WEDC budget. Staff anticipated the bard
approving the I udget no later than the August 2 1st Board Meeting and presenting a draft to the
City Council in July. As an overview, spending of$1,812,047 on direct econo ic development
programs (i.e. Incentives, Debt Service, Engineering, and Land) represents 78.4% of the
proposed budget, Personnel Services of $235,754 represents 10.2%, with the balance of 11.4%
expended on Operati, g.
Staff provided the following highlights for the FY 2009 — 2010 Budget:
Revenues: The City of Wylie Finance Department and WEI C staff has estimated that the ',A2
cent sales tax attributed to the WEOC will generate $1,323„620 for FY 2009 — 2010. This
estimate is based upon flat sales tax receipts for FY 2009 — 2010. FY 2008 — 2009 receipts are
based upon receipts to date in addition to at sales tax receipts through Tovember 2009
(October/November receipts accrued back to FY 2008 — 2009). As indicated in the Sales Tax
Projection chart, flat receipts from this poi t forward will equate to a 2.31% gain over FY 2008
2009. With uncertain economic times ahead, staff believes a flat projection is more than
responsible, even with Woodbridge Crossing co ing online in July 2009.
WE C Minutes
June 19, 2009
Page 3 of 5
Staff noted that the WEDC should begin its fiscal year with a $708,126 fund balance. Staff
estimated all expenses through the end of September 2009. As well, a new Revenue line item for
Greenway Ce ter ad Woodb,edge Crossi g has been included. A co, -esponding expense has
been provided as well within 'Incentives' which are 85% aHd 50% of receipts respectively for
Woodbridge Crossing ad Greenway based upon commitments within existing Performance
Agreements. While staff does not typically estimate receipts fro a specific development, the
WEDC will need to track these revenues as we are committed to rebate a portion of the same.
Salaries: No increase in benefits was budgeted for the Executive Director neither in cost of
living or 'Merit aise. Staff requested that the Board consider a cost of living increase for the
Administrative Assistant. Further it was recommended that the 'Phone Allowance' for the
Administrative Assistant be increased by $40 monthly to cover the cost of a blackberry providing
off-site email response.
Incentives: The 'Incentives budget of S1,152,042 was reported as the largest annual projection
for this lie item in the twenty year history of the WE IC, Even with the conte plated
assistance for Project Re-tool ($200,000 for FY 2009 — 2010), miscellaneous funds for 'Future
Projects' ($628,325) will be si ificantly eater than previcy s years. In review it was reported
that all monies not earmarked for specific expenditures/programs are placed within 'Future
Projects' for unforeseen incentive packages.
As oted in the eve ue section, staff provided its best estimate for sales taxes generated from
Woodbridge Crossi g and the new Greenway center. Staff noted that a much 1 ore accurate
incentive budget for Woodbridge Crossing will available in FY 2010 — 2011 as the WEDC will
have reports from the Comptroller as to the sales tax generated by Target. Finally, t ere are four
reoccurring projects which were initiated in prior fiscal years which account for $192,677.
Debt Service: Debt service retired in FY 2008 — 2009 were the Birmingham ad City of
Wylie/Global loans. o other loans will be retired in FY 2009 — 2010 unless notes are paid off
early. The debt service for FY 2009 —2010 was budgeted at $235,005.
Travel & raining: Staff budgeted for participation in the 'CSC national and Texas
conferences, annual and mid-year Texas Economic Development Council conferences, and
participation in the international Economic Development Council.
he Board directed staff to reassess the entire bu Aget, paying particular attention to Commw Hity
Developt, ent and Advertisi, g, and determine whether the programs play a key role retaining and
attracting business and promoting the WEDC.
Staff had no recommendation.
PRESENTATION
I. Staff report: review staff activities surrounding a Performa ce Agreement between the
INDIC and Hooper-Woodbridge, L.L.C., tenant/construction update at Woodbridge
WEDC — Minutes
inc 19, 2009
Page 4 of 5
Crossing, Project 2019, impact fee study, WEDC properties on Industri 1 Court, Steen
Chiropractic, and staff vacation.
Staff reminded the Board embers that any discussion of an item which is not specifically
identified on the agenda is prohi ited per the Oper Meetings Act,
Hooper-Woodbridge, L.L.C.: Staff reported that Pediatric Associates of Wylie is scheduled to
receive t eir certificate of occ pancy (CO) for their new offices or Woodbridge Parkway on
June 18th. The WEDC has received support documentation necessary to fund $16,350 in
infrastructure imorovements as authorized by the WEDC Board of Directors orr January 16,
2009. Once a CO is issued, it will take the WEDC approximately 5 busirress days to issue the
check.
Woodbrid e crossing The Target openi,,g is on schedule for.1 rrly 26th, 2009 with a soft opening
the week before. Target will begin stocking the store on June 18th, a process which will take
several weeks. Direct evelopme t has egun constrr rction of two buildings on either side of the
primary entrance with 75% of the space leased. Kohl's indicated at ICSC that they would
announce the status of the ioroposed Wylie location on June 18th,
Profect 2019 & Impact Fees Study: The proposal has been completed by Helmberger Associates
for Project 2019. The Impact Fee Study has also been less of a priority than directed by the
Board. Staff will attempt to preset findings for both issues in July.
WEDC Properties on Industrial Court: Remodeling of 210 Industrial (Cazad) and 211 Industrial
(Hughes) has been completed with no lease prospects. 207-b Industrial will be completed by
June 19th and should receive a CO by June 22 . The WEDC will be leasing 207-b for $1,000
per month to Elaine Hughes.
Steen Chiropractic: As per the attached correspor dence„ staff has informed Dr. Ken Steen that
the WEDC is withdrawing its offer of reimbursement for demolition costs up to $4,000 based
pon Dr. Steen's relocation to a new facility on Ballard Street. While the Board did not create a
time frame by which a certificate of occupancy must be issued, staff believes that the lack of
financing and no concrete construction schedule places the WEDC corm rritment outside the spirit
of the agreement.
Staff Vacation: Mr. Satterwhite reported that he ill be out of the office from June 30t1 to July
7th. Ms. Harris will be out of the office July 21st througb July 24th.
IL Introduction of City of Wylie L.irector of Finance, Ms. Linda Vaughan.
No action was requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board of Erectors convened into Executive Session at 7:43 a.m.
WEDC— Minutes
June 19, 2009
Page 5 of 5
I. Consider issues surrounding a Perfo rwance Agreement between the VIE SC and
Woo ebridge Crossing, L.P. as authorized in Section 551.087 (Economic Development
Negotiations) of the Local Government Cole, Vemo Texas Code Annotated (Open
Meetings Act).
IL Consider issues surrounding the potential offering of incentives for project Re-tool as
authorized in Section 551.087 (Economic Development egotiations) of the Local
Gove rent Code, Vernon's Texas Code Annotated (Open L. Leetings Act).
RECOT LYE LE INTO OPEL MEETING
The WEDC Board of Directors reconvened into open session at 8:30 a. .
o action was taken as a result of discussions held in Executive Session.
ADJOU ENT
With no farther business, President Marvin Fuller adjourned the ViEDC Board meeting at 8:30
aHr.
s \
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive I irector