Loading...
03-19-2010 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, March 19, 2010 -- 6:30 A.M. Inwood National Bank — Conference Room 200 South Highway 78 — Wylie, Texas CALL TO ORDER Announce the presence of a Quorum President Fuller called the meeting to order at 6:30 a.m. Board Members present were: John Yeager, Mitch Herzog, and Chris Seely. WEDC staff present was Executive Director Sam Satterwhite and Gerry Harris, Ex-Officio Board Member Jeff Butters was 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 the February 19, 2010 Minutes of the WEDC Board of Directors Meeting. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the February 19, 2010 Minutes of the WEDC Board of Directors Meeting. The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 2 — Consider and act upon approval of the February 2010 WEDC Treasurer's Report. MOTION: A motion was made by John Yeager and seconded by Chris Seely to approve the February 2010 WEDC Treasurer's Report. The WEDC Board voted 4 — FOR and 0 - AGAINST in favor of the motion. ITEM NO. 3 — Consider and act upon a mid-year amendment to the FY 2009 — 2010 WEDC Budget. On December 16, 2009 staff estimated that sales tax receipts were down 22% from, projections made in June 2009, That estimate was arrived at by analyzing Target receipts versus all other prior year receipts. Having received actual Woodbridge Crossing receipts from the Comptroller, the actual sales tax receipts for the WEDC less those generated by Woodbridge Crossing are as follows: December -20.21%. January -20.62%, February -8.34'3,4). and March -8.87% (estimate) resulting in an annual decline to date of -13.91%. Combining, the sales tax receipts with a 3 1 c,! WEDC — Minutes March 19, 2010 Page 2 of 6 shortfall in projected Rental Income requires staff to recommend a 10% reduction in overall expenses. Staff reported that the WEDC could continue as is without a budget amendment and just make a budget transfer at the end of the year to cover overages within each expense account. However, should future expenditures adhere to the approved budget the result will be a budget transfer which will reduce 'Future Projects' within the incentive category in turn reducing the FY 2010 — 2011 Fund Balance. The proposed reductions in expenditures are as follows: Office Supplies -S4,250, Postage & Freight -$970, Computer Maintenance -S500, Advertising -S7,700, Community Development - $2,900, Travel & Training -S8,682, Audit & Legal -S9,900, Engineering -S 12,044, Utilities S500, Land -S150,000, Streets S.: Alleys -S25,000, and Computer Hardware -S2,000. While the primary focus of this exercise has been to reduce expenditures, there are several line items which have resulted in a budget increase. Within Special Services, Leasehold Improvement has been increased from $0.00 to S11,250 to accommodate unanticipated maintenance to WEDC lease properties. Within Incentives, Project Re-tool (Sandell) was increased from $200,000 to $300,000 to accommodate an amendment to the Performance Agreement, Within Communications, Website Maintenance was increased from S0.00 to $700. Within Rental Expenses, Copier Service Agreement was increased from $2,400 to $2,700. Within Audit and Legal, audit was increased from $2,500 to $2,600. Under the Proposed amendments, staff recommended a reduction in revenue of$216,364 and a reduction in expenses of$224,446. Also, certain expense accounts as previously indicated were recommended to be increased by S8,082. Staff recommended that the WEDC Board of Directors approve the proposed mid-year budget amendment as presented. MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to approve the proposed mid-year budget amendments, The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 4 — Consider and act upon issues surrounding a Performance Agreement between the Nk"EDC and Pulliam Properties, LLC. As directed at the February 19, 2010 WEDC Board Meeting. staff drafted a Performance Agreement between the WEDC and Pulliam Properties, LLC. Upon learning of the Board's decision. Mr. Pulliam initiated plan revisions and bid requests from various contractors. In review, the Board authorized a three year Performance Agreement totaling $30,000 to be funded upon certification of a minimum valuation of $475,000 for the proposed 3,500 square foot commercial office to be constructed at 303 Jackson Street in Wylie. Mr, Pulliam is to complete construction of said facility no later than December 31, 2010. 'WEDC — Minutes March 19, 2010 Page 3 of 6 Mr. Pulliam requested that the Board consider a minor variation in the payment of the economic development incentives. As decided by the Board initially, payments of S10,000 would be made each year over a three year period at the time the Collin County Central Appraisal District certifies the valuation of the real property. The intent of the Board was to ensure that the minimum value of 5475,000 is present prior to funding. Mr. Pulliam proposes that the first year payment is funded at the time a 'certificate of completion' is issued by the City of Wylie Building Official, Mr. Pulliam contends that the initial S10,000 will assist with certain up-front costs which may not necessarily be financed. Mr. Pulliam understands the philosophy behind the value being certified and does not request to change the timing of payments #2 and #3 to coincide with certification. Staff believed that this is a reasonable request and recommended approval of the same by the Board, While Board Member Ilerzog was in favor of the Performance Agreement and proposed amendment, Mr. Herzog reiterated that there should not be any incentive funded for Payment #2 and #3 should the minimum valuation of 5475,000 not be met. Staff recommended that the WEDC Board of Directors approve a Performance Agreement between the WEDC and Pulliam Properties, LLC, MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to approve a Performance Agreement between the WEDC and 'Pulliam Properties, LLC further authorizing President Fuller the authority to execute said Agreement. The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 5 Consider and act upon issues surrounding ingress/egress for Founders Plaza. Over the past year there has been discussion surrounding the entrance into Brookshire's and the Bariatric Center. With two distinct entrances/exits for the two properties in close proximity, the access is confusing and arguably unsafe. Further impacting this confusion/safety is the opening of Founders Plaza senior care center and a 1.6 acre commercial lot adjacent to Founders which will increase traffic at the 78 intersection. The Planning Department verified that access points are secured via private easements. To briefly summarize, Brookshire's and Founders utilize the northernmost access point with the Bariatric property and Bander clinic utilizing the southernmost access point. In an ideal design there would be no median between the two roads, but it will be virtually impossible to relocate the overhead utilities. Therefore, an improved design would be a one-way entrance to the south. and a one-way exit to the north. There are several challenges involved in redesigning this area. First, staff believes that none of the property owners would want to commit any funding to the redesign. Second, a redesign would negatively impact Brookshire's ease of access if crossing points were not in place near their gas station, near the front of their store, and the loading area at the rear of the store. Finally, the new Founders Plaza entrance may have to be redesigned to accommodate the new entrance. WEDC — Minutes March 19, 2010 Page 4 of 6 The City Engineer has estimated that constniction cost would be S10,000 - S15,000. Surveying costs for platting purposes would be 510,000 - S15,000. The Wylie Police Department has determined that there have been 7 accidents with an address of either Brookshire's or the Bander Clinic. One accident was considered major with 6 accidents considered minor. Whether those accidents were caused by the area of interest is unknown. Should the WEDC Board determine that this is a project staff should spend time on, meetings with the property owners will be set and further analysis will need to take place. The key issue which must be considered is how to get the property owners to participate, The owners currently have adequate access and to change that would create confusion. Staff had no formal recommendation at this time. The Board indicated that while improvements to the access need to be made, it is not the function of the WEDC to facilitate said improvement at this time. The Board directed staff to monitor new commercial activity in the area which may impact their consideration of the issue. ITEM NO. 6 — Staff report: review issues surrounding the lease of WEDC facilities, an Amended and Restated Performance Agreement between the WEDC and Woodbridge Crossing, L.P., Greenway Investments, WEDC Business Center within the Rita & Truett Smith Public Library, Performance Agreement between the WEDC and Sanden International (U.S.A.), Inc. and regional housing starts. Analysis As a reminder to Board members, the Board was directed to not discuss any item which is not specifically identified on the agenda. Only those items listed can be discussed. Lease of WEDC Facilities: The only WEDC facility remaining vacant is 211 Industrial Court. Staff has discussed the lease of 211 with an a/c controls contractor and is awaiting a decision from corporate representatives in Virginia. Staff discussed a starting point of S1,900 per month, well below the S2,600 paid by the adjacent tenant. Woodbriarxe Crossing: Woodbridge Crossing is currently in compliance with all terms of the Amended and Restated Performance Agreement. Provided to the Board was a Sales Tax Reimbursement Report which identifies all sales taxes generated in the fourth quarter 2009 within Woodbridge Crossing for the City General Fund, the WEDC. and the 4B Corporation. Also detailed within the Report were the projected City'WEDC sales tax reimbursements which are awaiting Woodbridge Crossing, L.P. review. 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°/0 of all sales taxes generated will be reimbursed. WE DC Minutes March 19, 2010 Page 5 of 6 The next performance measure of 64,000 square feet of lease space constructed on the in-line lots adjacent to Target between McCreary and Springwell shall be completed no later than May 1, 2011. For this measure to be met, staff estimated that a second anchor or a combination of junior anchors will need to begin the construction process on or about August 1, 2010. Should this particular perforinance measure or any future measure not he met, the maximum reimbursement of S12 million will be reduced to 56 million. A 'critical dates analysis' was attached for the Boards review. Greenway Investments: Staff has had no contact with Greenway representatives. While staff anticipated the receipt of proposed amendments to a Performance Agreement, an obvious delay has occurred. WEDC Business Center: At the request of WEDC Counsel, a more detailed list of materials and equipment has been requested from the Library staff. Mr. Hullett is awaiting receipt of those documents prior to completing the Interlocal Agreement between the WEDC and City. Sanden Performance Agreement: On March 11, 2010 President Fuller, Mayor Hogue, and WEDC staff met with Sanden officials to pay the $300,000 incentive specified in the Performance Agreement. Mayor Hogue conveyed the community's appreciation of Sanden and sincere hopes that future investment will made at the Wylie campus. Sanden officials could not emphasize enough the importance of the local contribution in the eyes of Corporate officials in Japan and that the local support will greatly enhance Wylie's opportunity to be awarded a new piston line which is currently being contemplated. Sanden officials present at the meeting were as follows: Mark Ulfig Kazuto "Zak" Kikuchi Mitsuya (Tim) Yamamoto President & CEO Sr. Vice President President & Region Manager Sanden Int'l Sanden Int'l Sanden of America Shu Umeki Ryuhei Ushikubo Kumar Coimbatore V.P. & Treasurer V.P. & Treasurer General Mgr. Manufacturing Sanden Int'l Sanden Int'l Sanden Int'l Regional Housing Starts: While February showed a decline from January figures, housing starts were still up from the same period in 2009. With a particularly poor February 2009, the entire quad-city region saw significant increases in housing starts this period. Staff Recommendation No action is requested by staff for this item, EXECUTIVE SESSION The WEDC Board of Directors convened into Executive Session at 7:19 a,m. WEDC — Minutes March 19, 2010 Page 6 of 6 I. Consider issues surrounding Project Orange as authorized in Section 551.087 (Economic Development Negotiations) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). 11. Consider issues surrounding the purchase of property located near the intersection of Steel Road 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 commercial project located near the intersection of State Highway 78 and F.M. 544 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 WEDC Board of Directors reconvened into open session at 7:44 a.m. No action was taken as a result of discussions held in Executive Session. ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 7:44 a.m. IMA Marvin Fuller, President ATTEST: Samuel D.R. Satterwhite Executive Director