02-19-2010 (WEDC) Minutes Mi sutes
Wylie Economic Ievelopnlent Corporation
•oard of I irectors eetir g
Friday, February 19, 2010 —6:30 A.M.
Inwood National Bank— Conference Room
200 South Highway 78 — Wylie, Texas
CALL TO 0 E
44nnounce the presence of a Quorum
President Fuller called the meeting to order at 6:30 a.rn. board Members present were: John
Yeager, Todd Wintters, Hitch Herzog, and Chris Seely.
WEDC staff present was Executive Rirector Sam Satterwhite.
Ex-Officio I oard Members Eric Hore and Mindy Manson were present.
MIZE' ' PA•TICIPATION
There being no citizen participation, President Fuller proceeded to Action Items,
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the January 14, 2010 Minutes of the
WEDC Board of 0 irectors Meeting.
MOTTO : A motion was made by Mitch Herzog and seconded by John Yeager to
approve the January 14, 2010 mutes of the WEDC oard 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 January 2010 WEDC Treasurer's
Report.
President Fuller directed staff to ask the City of Wylie auditor if the City/WEDC is tracking the
sales tax reimbursements to Woothridge Crossing properly.
MOTION: A motion was rade by John Yeager and seconded by Chrr s Seely to
approve the January 2010 WEDC Treasurer's Report. The WE DC ioard
voted 5 — F01 and 0 — AGAINST in favor of the motion.
ITEM Ni. 3 — Consider and act upon issues surrounding the WEiC support of a business
Center within the Rita & Truett Srith Library.
Staff informed the •oard that WEDC Counsel has indicated that WEDC funding of this project
was authorized within the confines of the governing legislation. However, the WEDC must own
the assets involved in 'stocking' the B siness Center. Further, the City and WEDC will be
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February 19, 2010
Page 2 of 5
require@ to enter into an Interlocal Agreeme it authorizing the City to utilize these resources for
an indefinite period of time.
Staff indicated that a draft Interlocal Agreement would be presented to the Board in the near
ture and that the fui di g of the program would take place within the FY 2010-2011 WE NC
•udget.
No formal action was requested of the Board.
ITEM O. 4 — Consider and act u,"o iss es surrounding a erformance Agreement
between the WE)C and Sanden International (U.S.A.), Inc.
As directed at the January 14, 2010 WEDC :oard Meeting, staff presentee an Amended ad
Restated Performance Agreement between the WEDC and Sa de International. Staff reviewed
that the only substantive item cha iged from the original Agreement was for 100% of the
incentive to be nded in March of 2010 instead of funded over a two year period. All of the
performance measures surrounding value, employment figures, productions levels, and term
remain in place.
MOTION: A motion was made by itch Herzog and seconded by Todd Wintters to
approve an Amended and Restated Performa ce A eement between the
WEDC and Sanden International. The WEDC Board voted 5 —FOR and 0 —
AGAINST in favor of the notion.
ITEM NO. 5 — Staff report: review issues surrounding the lease of WEDC facilities,
Extruders divisio of Atrium Companies, an Amended and Restated erformance
Agreement bet-wee the WEI C and Woodbridge Crossing, L.P., Greenway Invest lents,
presentation to Council surrounding Thoroughfare Impact Fees, proposed development at
East Fork Park, and regional housing starts.
Lease of WEDC Facilities:
The suite vacated by Twisted Pepper has been leased to Waterman Plumbing. Waterman
requested a lease rate of$800 monthly. Staff negotiated an average rate of$900 for the first year
and $1,000 for the second year. The adjacent suite occupied by Jaco Welding is leased for
$1,000 per month.
Staff replaced the furnace in the Wate an suite and installed a fence between the two Hughes
buildings. Ti e Furnace was 22 years old and the lack of a fence was an issue for two potential
die ts.
The only WEDC facility remaining vacant is 211 Indust al Court.
Extruders division qf Atrium Coman,pL ,sIEL: Ja ey entfrow, Extruders General Manager,
contacted staff to indicate that Extruder's !arent compai y, Atrium, had filed for Chapter 11
Bankruptcy o Ja uary 20, 2010. Staff was informed that two-thirds of the bond holders had
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February 19, 2010
Page 3 of 5
exchanged eq ity for debt and will recoup 10— 15 cents on the dollar. Mr. Rentfrow commented
that Extruders is one of the few Atrium divisions that makes money. Extruders is cu ently
operating two, ten hour shifts, five days per week.
Woodbridge Crossing: Woodbridge Crossing is currently i compliance with all terms of the
Amended and Restated Performance Agreement. The first sales tax reimbursement payment to
Woodbridge Crossing will be processed on or about March 1, 2010 which will be comprised of
sales taxes generated in October, November, and December of 2009. As a reminder, The City
and WEDC will be reimbursing 85% of all sales taxes generated within Woodbridge Crossing
through September 2013. Beginning October 2013, 65% of all sales taxes generated will be
reimbursed.
The next performance measure of 64,000 square feet of lease space constructed on the in-line
lots adjacent to Target between cCreary and Springwell shall be completed no later than May
1, 2010. For this measure to be met, staff estimates that a second anchor or a combination of
junior anchors will need to begin the constr 4-2tion process on or abo t Aug st 1, 2010. Should
this particular performance measure or any fut re measure not be met, the maximum
reimbursement of $12 million will be reduced to $6 million. A 'critical dates analysis' was
attached for the toard's review.
Greenway Investments: As conveyed in the January Board Meeting, Greenway has approached
the WEDC and City to discuss amending the existing Sales Tax Reimbursement and Tax
Abatement Agreement between the three parties. Staff had anticipated some t e of Letter of
intent or concept from Greenway. However, Greenway is still developing alternatives internally
and is not ready to present a proposal at this time. Mark ardaway of Greenway has indicated
that a concept should be presented to staff within the next two weeks with a formal proposal to
be presented to the Board at the I arch .oard meeting.
Staff is open to any idea which will facilitate the development of the site adjacent to Tractor
Supply.
Moron th are im act Fees: On February 9, 2010 staff presented to Council the outcome of
WE C discussions surra nding Thoroughfare Impact Fees. Council was supportive and agreed
with WEDC conclusions. Co u ncil was also sympathetic to concerns regarding the 40%
differential between the east and west zones. While no further study of the issue was discussed,
staff believes that these discussions will greatly impact the reevaluation of the fee structure in
2012 at which time the City will be reviewing the provisions within the fee structure.
East Fork Park: An individual who manages a marina/restaurant facility on Lake Texhoma is
holding preliminary discussions with the Corp of Engi eers and the operator of East Fork Marina
to determine the potential for upgraded facilities around Lake Lavon north of City Hail. Staff
will provide updates to the Board on an as-needed basis.
Re Yional Houing Starts: Wylie had a good Jan ary with 28 housing starts as well as
representing 42°/0 of all housing starts in the quad city area of Wylie, Sachse, I urphy, and
Lavon. Wylie has also outpaced prior year starts in 4 of the previous 5 months.
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February 19, 2010
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Staff Recoil',lie dation
No action is reeuested by staff for this item.
' XECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 7:1 I a.m.
I. Consider issues su au ding Project Orange as authorized in Section 551.087 (Economic
Development egotiations) of the Local Government Code, Vemon's Texas Code
Annotated (Open Meetings Act).
II. Consider issues surrounding the purchase of property located near the intersection of Steel
oad and Regency Drive as authorized in Section 551.072 (real property) of the Local
Government Code, Vernon's Texas Code Annotated (Open Meetings Act).
III. Consider issues surrounding the potential offering of incentives to a co mercial project
located near the intersection of College Street and Ballard Street as authorized in Section
551.087 conomic Development Negotiations) of the Local Government Code, Vernon's
Texas Code Annotated (Open eeti gs Act).
IV. Consider issues surrounding Project Phoenix as authorized in Section 551.087 (Economic
Development Negotiations) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
RECONVENE INTO OPEN MEETING
The WE' C Board of Directors reconvened into open session at 8:13 a.m.
ITEM No. III
Staff presented to the Board a commercial project to be undertaken by Pulliam Constructio
Management. Mr. Pulliam proposes a 3,500 square foot office building to be located at 303
Jackson Street. The project is estimated to have an appraised value of$450,000 to $500,000 ani
is scheduled to be completed by December 31, 2010.
Mr. Fuller commented that the project is taki g place in an area where little development has
occurred over the past several years and this type of office development will greatly e ance the
southeastern 78 corridor. Further, the development proposed by Mr. Pulliam greatly exceeds the
construction standards ii posed by the City of Wylie which will further benefit the
area.
Staff recom lended a $36,817 incentive paid over a three year pe .od which is equal to local
property taxes ge crated over that same time. Staff recommendation was based upon a
minimum $475,000 appraised value for the life of the project, a certificate of completion issued
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February 19, 2010
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by 12-3 1-10, architectural approval by the WEDC, aro erty taxes paid a ually, and
confo ation with all local ordinances.
The Board was supportive of the riproject but was ore comfortable wit a total incentive
package of S11,000 per year for t cc years to be paid at the time the valuation for the property is
certified by the Collin County Central Appraisal District which is on or about Au: st 1st of each
applicable year.
MOTION: A otion was made by Todd Wintters and seconded by 'itch Herzog
authorizing sta to draft a Pe o ance A.4 ee ent between the WEDC and
Pulliam Construction fanagement based upon a 1.30,001 incentive package
and other perfo ance measures reco ended by staff. e WEDC Board
voted 5 —FOR and 0—AGA ST in favor of the motion.
ADJOU MHNTh
N
With no furt er business, President Fuller adjourned the WEDC 1oard meeting at 8:14 a.m.
.""
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director