10-30-2009 (WEDC) Minutes min tes
Wylie Economic II evelop ent Corporation
Board of I irectors Meeting
Friday, October 30, 2009 — 6:30 A.M.
IJHwoOd National :tank— Conference Room
200 South Hi. way 78 — Wylie, Texas
CALL TO OR) R
Announce the pjesence ° a Quoruni
President Fuller called the meeti g to order at 6:30 a.m. Board Members present were: John
Yeager, Mitch Herzog, Chris Seely, and Todd Wintters.
WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.
No ex-Officio Board Members were present.
CITIZEN PARTICIPATION
There being no citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of t e September 18, 2009 Minutes of the
WEDC oard of Direct rs Meeting.
MOTIO A motion was made by itch Herzog and seconded by John Yeager to
approve the Septe fiber 18, 2009 Minutes of the WEDC '..oard of Directors
Meeting. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 2 — Consider and act upon approval of the Set tember 2009 Treasurer's Re ort.
MOTION: A motion was lade by John Yeager and seconded by Todd Wintters to
approve the September Treasurer's Report. The WEDC soard voted 5 —
FOR and 0 —AGAINST in favor of the motion.
ITEM NO. 3 — Co,sider and act upon iss es surrounding an Economic Development
Agreement between the WEDC and Sawtech Corporation.
To review, as per directio, from the 16oard at the 9-18-09 Board Meeting, staff informed
Sawtech officials they were in default of the terms of the existing Economic evelopment
Agreement between the two parties. 'ore specifically, Sawtech was informed that they had
until November 2nd to cure the perso al property value shortfall or the final installment of
S24,805 within the Economic Develop ent A eeme t would ot be ded.
WEDC inutes
October 30, 2009
Page 2 of 5
On 10-26-09 the WE PC received Hotification from the Collir Central Appraisal District that at
the request of the owner (Sawtech), the value for personal property located a 2805 Capital Street
had been i, creased from $449,420 to $500,420. The terms of the Economic Development
Agreement have been satisfied and staff will process the final incentive installment as per the
conomic Development Agree ent.
Staff had no recommendation and the Board was not required to vote on approval of this item so
long as Sawtech has satisfied all terms of the Agreement.
ITEM NO. 4 — Staff Report: review staff activities surrounding the 2009 1E1 C Annual
Co ference, lease of WE IC facilities, the 2009 WEDC Invitational, refinancing W DC
debt, Shafer Plaza, 26 acres for sale at the intersection of Eubanks and State Highway 78,
City of Wylie I Tact Fees, ad regional housing starts.
As a reminder to Board members, the Board may not discuss an item which is not specifically
identified on the agenda. Only those items listed above can be discussed. Should any s.oard
member wish an item to be placed on the agenda at any time prior to a :oard meeting, please
contact the WEDC President or staff.
2009 IEDC Conference: epresenting the City Manager's Office, Assistant City Manager Jeff
'utters atte ded the conference with WEDC staff. r. :utters had planned to attend the WEDC
Board meeting and making a presentatio but encountered an unexpected personal matter that he
had to attend to out-of-state. Mr. utters plans on attending the 'ovember 20th Board meeting.
Staff came away from the conference with two key philosophies: 1) the WEDC is not
utilizing/promoting federal and state incentive programs as it should be, and 2) the WEDC may
need to reevaluate its role in the community and the ways in which it seeks public input.
First of all, Project Phoenix will re uire the WEDC to immediately begin to start applying for
federal and state incentives. Prograt s such as the Skills a evelopme, t Fund, Texas Enterprise
Fund, the Texas Enterprise Zone Program, Federal Enterprise Zone/renewal Community
Program are just a few of the opportunities which may enha, ce our econo ic development
effb ,s in Wylie. The Governor's office coordinates all state programs and facilitates application
for federal funds as well. Staff has scheduled a meeting with the Governor's Eco omic
Develop, e t office on November lith.
Secondly, staff continues to ask the question surrounding the purpose/goals of this organization?
How ca the WEDC promote the local business co, lmunity/Chamber to a greater extent? How
can we seek input fr m the community regarding economic development progra, s to a greater
extent? Do we eed more citizen input? Staff even suggested restructuring the ake-up of the
WEDC oard so that a greater cross section of the community is re,oresented. ,..oard member
Herzog requested that after staffs ideas are more thought out that they he brought back to the
Board.
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October 30, 2009
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Lease of WEDC facilities: The Cazad building and the Hu_ es buildi ig fronting 'ighway 78
remai vacant. The WE SC has listed the properties with Vince Maige for the past t ee months
and have seen very little activity.
The Ferrell building is vacant as well with enough electrical i wrovements to get the power
tm led on. The WE DC has received an estimate for $1,615 for drywall, paint, and roof
improvements (including painting over wording on west exterior wall). Staff has approved that
work which will commence on Monday. There are two potential renters inquiring about leasing
the facility. The first one is a contractor who Has offered $800 per month, but needs for all utility
bills to be paid for 12 months. With this user there will be the outside storage of equipment. The
second inquiry is from an individual wanting to store classic cars, boats, and jet skis for $800 per
month. Both users understand that part of the lease will be maintaining both Ferrell tracts.
2009 WEDC Invitational: Sixty individuals participated in the WEDC Invitational held on
October 20th. Companies represented included Henry S. Miller, Carlisle Coatings, Extruders
division of Atrium Companies, American Restoration, Southern Fastening Systems of Texas,
Quick Trip, Herzog Development Corporation, City of Wylie Building Department, City of
Wylie Assistant City anager, Interco Demolition, WISD, Direct Development, The Wylie
'ews, Lutz Woodworki g, Global Innovation, FEC Electric, Shafer Properties, Viewpoint Bank,
RLK Engineering, TPG Mecha ical, Tea_ e Nail & Perkins, UDR (multi-family developer),
Stan Haddock Investments, Gar et Hill, Richard Parker, Inc., Commonwealth Title, Hoegger
Associates, Wylie City Council members and WEDC Board members.
Staff believes that this program continues to be an exceptional marketing tool for the WEDC.
President Fuller requested that staff formulate a non-golf event that will reach more of the
business community and brig back a plan in Dece ber for a spring event.
RefinancingWEDC Debt: Staff is researching the potential for the WEDC to refinance all of its
existing debt at a tax exempt rate. The remai, ing principal on existing WEDC de e t is $1.2
million, Remaining terms on existig notes range froi, 3.2 years to 8.6 years. Interest rates vary
-om 5.75% to 6.25%. Assumi g that the Attorney General would verify that a tax exempt rate
co id be achieved, the WEDC could refinance its debt with a 5-year term at a ±4.25% interest
rate and have a savings of±-$112,000. Should the WEDC Board have an interest in refinancing
and the Attorney General authorizes the exemption, staff would also recommend that the WEDC
payoff the remai ing balance to rpowlandiAnderson for the Cooper Drive purchase (remaining
balance $53,400 — interest savings of $5,350). A brief analysis of the above proposal was
provided.
Sha er Pia:a: Applebee's estaurant has shown a renewed interest in the Wylie area. Shafer
Prope ies has indicated that Applebee's has accepted their proposal for the lot adjace t to
Starbuck's. Shafer has ass red staff that the Applebee's concept will fit on the lot. Applebee's
has also been inquiring with Direct Development for a lot fronting Target.
26 Acres at Eubanks and Hi hwav 78: Staff has attached a commercial property flyer by
Property A visors, Inc. for a 26 acre tract at the southeast corner of E, banks and State Highway
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October 30, 2009
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78. Staff provided this information only to show the potential this area will have in the future.
When combined with Archie Eubar s property and Wylie Steel, there is a 36 — 40 acre
commercial site. Future City of Wylie bond iss es should look at improve ents to Eubai Hs and
its impact on commercial property to the east and west.
City of Wylie Impact Fees: Staff and Mr. Hoisted have not completed its analysis of options for
potential changes to the City of Wylie Impact Fee structure. The analysis will be complete for
the November 20th Board Meeting.
Regional Housing Starts: Staff believes that most of you receive this information already, but
wanted to point out that September was largest single month since J ly of 2008. Staff did not
have enough confidence to declare a trend, ut it is nice to have some good news. Staff believes
that a projected 250 homes for 2009 is a positive indicator in this market environment (housing
figures were attached).
No action was requested by staff
ITEM NO. —Consider issues sr rounding the 2009 WE IC An ual eport.
anticipation of the WE PC Annual Report which must be presented to the Wylie City Council
no later than January 31, 2010, staff presented an outline for the upcoming report and sought
feedback. The report must include, but is not limited to, a review of all expenditures made by
the Board, a review of accor 1piisj ents, and a review of other than irect' economic
development efforts. While not identified wit in the I y-laws, staff believed that an in-depth
analysis of 2010 goals and objectives should be presented as well.
Staff had no recommendatia for this issue.
EXECUTIVE SESSION
The WEDC Board of Erectors convened into Executive Session at 8:01 a.m.
I. Consider issues surrounding the purchase of property located near the intersection of
Regency Drive and Steel Road as authorized in Section 551.072 (real property) of the
Local Government Code, Vernon's Texas Code A lotated (Open Meetings Act).
II. Consider is& es surroun ing the purchase of property located near the intersection of
Woodbridge Parkway and Hooper Road as authorized in Section 551.072 (real property) of
the Local Government Code, Vernon's Texas Code Annotated (Open eetings Act).
III. Consider issues surrounding Project Phoenix as authorized in Section 551.087 (Economic
Development Negotiations) of the Local Government Code, Vernon's Texas Code
notated (Open Meetings Act).
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October 30,, 2009
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Hi'ECONVENE INTO OPE MEETIH G
• APRIMIRM:•
The VIEDC Board of Directors reconvened ib tO open session at 8:52 am. No action was taken
as a result of discussion held in Executive Session.
ADJad 'MENT
4E., •
With io further business, President Marvin Fuller adjoui ced the WEDC Board meeting at 8:52
a.m.
PO'r
-
Marvi' Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director