05-20-2010 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Thursday, May 20, 2010 — 6:30 A.M.
Inwood National Bank— Conference Roam
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, Todd Wintters, and Chris Seely.
WEDC staff present was Executive Director Sam Satterwhite and Gerry Harris.
Ex-Officio Board Members Eric Hogue, Mindy Manson, and Assistant City Manager Jeff
Butters 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 the April 16, 2010 Minutes of the WEDC
Board of Directors Meeting.
MOTION: A motion was made by Chris Seely and seconded by Mitch Herzog to
approve the April 16, 2010 Minutes of the WEDC Board 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 April 2010 WEDC Treasurer's
Report.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the April 2010 WEDC Treasurer's Report The WEDC Board
voted 5 — FOR and 0 — AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon issues surrounding a Promissory Note between the
WEDC and Capital One Bank.
On March 17, 2008, the WEDC entered into a promissory note with Capital One Bank for the
purchase of a 0.2755 acre tract from Mr. and Mrs. Joseph Cazad in the amount of$200,781.55.
The property purchased is located on Industrial Court and is part of an overall redevelopment
plan for the area. The WEDC currently expends $2,034.96 monthly to service the note with an
outstanding balance of S152,282.12 as of 5-27-10. The loan matures on 4-3-18 and has an
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May 20, 2010
Page 2 of 5
interest rate of 6.25%. Staff reported that should the Board authorize the prepayment of the loan
in full; the WEDC would save approximately $41,661.37 in interest. There are no prepayment
penalties.
The WEDC currently has outstanding debt obligations as follows:
Property Date of Purchase Interest Rate Current Balance
Inwood(#54 of 120) 8/26/05 5.75% $4831280.66
Hughes (#45 of 120) 7/25/06 6.00% 235,592.59
Prime Kuts (#30 of 120) 10/8/07 6.00°/0 183,692.13
Bowland(#30 of so) 10/9/07 6.00°/0 21,493.46
Anderson(#30 of 60) 10/9/07 6.00% 21,493.45
Capital One(#25 of 120) 3/17/08 6.25% 151,758.28
Total $1,097,310,57
Staff recommended that the WEDC Board of Directors approve the prepayment of a loan
between the WEDC and Capital One Bank in the amount of S152,282.12.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
authorize the prepayment of a loan between the WEDC and Capital One
Bank in the amount of$152,282.12. The WEDC Board voted 5 — FOR and
0 — AGAINST in favor of the motion.
ITEM NO. 4 — Staff report: review issues surrounding the lease of WEDC facilities, an
Amended and Restated Performance Agreement between the WEDC and Woodbridge Crossing,
L.P., Savage Precision Fabrication, ICSC 2010, Pulliam Properties L.L.C., industrial
development prospects, and regional housing starts.
Lease of WEDC Facilities:
Staff had nothing new to report on this item.
Woodbridge Crossing: Woodbridge Crossing is currently in compliance with all terms of the
Amended and Restated Performance Agreement. Staff presented, for the Board's review, the
Sales Tax Reimbursement Report which identified all sales taxes generated and reimbursed
through February 2010 within Woodbridge Crossing for the City General Fund, the WEDC, and
the 4B Corporation. As a reminder, the City and WEDC reimburse 85% of all sales taxes
generated within Woodbridge Crossing through September 2013. Beginning October 2013, 65%
of all sales taxes generated will be reimbursed.
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May 20, 2010
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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 performance measure or any fitture measure not be met, the maximum
reimbursement of $12 million will be reduced to $6 million. A 'critical dates analysis' was
provided for the Board's review.
Staff was told by a Direct Development representative that Kohl's is supposed to close on a site
within Woodbridge Crossing by May 21" with a pad and parking lot to be delivered by the end
of July. Also, staff was told by a representative of the Retail Connection that two junior boxes
have significant interest in Woodbridge Crossing with one of the users intending to open in 2010.
Sleep Experts has finished out space adjacent to Sally Beauty Supply.
Savage Precision Fabrication: Staff reported that Savage Precision was named the recipient of
the SBA Subcontractor of the Year for Region IV (Alaska, Washington, Oregon, and Idaho). To
show support for Savage, the WEDC Director had planned to attend the Recognition Dinner with
the Gardner's on May 25th but the Director will be attending ICSC, In his place, Ms. Harris will
represent the WEDC at this event. The Gardner's are extremely honored and appreciative that
the WEDC will be in attendance.
ICSC 2010: On May 23 — 26th, the WEDC will attend the ICSC Global Retail Real Estate
Convention (RECON) in Las Vegas. Representing Wylie at the RECON will be Mayor Eric
Hogue, Board Members Herzog and Wintters, and the WEDC Executive Director, Staff will be
scheduling meetings with regional and national retailers primarily promoting Woodbridge
Crossing. Staff has already scheduled a meeting with a second anchor considering Woodbridge
Crossing in addition to several junior boxes considering the area. As well, the WEDC will
continue its focus on attracting restaurants to the area.
Pulliam Properties, L.L.C.: Mr. Pulliam's replat was approved by Council on April 13th and his
plans are currently being reviewed by the building department. Mr. Pulliam remains confident
that he can complete the project by December 31' as required by the WEDC Performance
Agreement.
Regional Housing Starts: Strong housing starts continue within the region with Wylie
permitting 20 homes in March. The Building Department reports that there have been nine new
permits issued to date in May.
Staff Recommendation
No action is requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 6:45 am.
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May 20, 2010
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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).
II. 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 Project BB as authorized in Section 551.087 (Economic
Development Negotiations) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
IV. Consider issues surrounding Project CR1 as authorized in Section 551.087 (Economic
Development Negotiations) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
V. Consider issues surrounding the potential offering of incentives to a commercial project
located near the intersection of Sate 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 7:47 a.m.
IL Staff presented information regarding the opportunity to purchase property located at 25
Steel Road (Lot 3, Block B. Regency Business Park #01, City of Wylie, Collin County,
Texas being that property more particularly described in Volume 3981, Page 54 of the
Deed Records, Collin County, Texas). The above referenced property was struck off to
Wylie ISD at a sheriffs sale. The total amount, if paid in May 2010 is $25,170.77. That
amount will be distributed as follows:
Wylie ISD
City of Wylie Taxes through 2009 823,800.77
Collin County
Collin College
Collin District Clerk Court Costs: $704.00
Fees incurred for the Sheriff's Sale of June 2, 2009:
Notice of Sale: 869,00
Service of Notice of Sales to the McKinney Courier Gazette: $50:00
Publication of Sale in the McKinney Courier Gazette: $492.00
Deed recording fee: $55.00
Total due: S25,170,77
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May 20, 2010
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MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters
authorizing Marvin Fuller to execute all documentation necessary to
purchase property located at 25 Steel Road, Wylie, TX in an amount not to
exceed S27,000.00. The WEDC Board voted 5 — FOR and 0— AGAINST in
favor of the motion.
Jeff Butters left the meeting at 7:40 a.m.
Eric Hogue left the meeting at 7:45 a.m.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 7:52 a.m.
( )
Marvin Fuller, President
ATTEST:
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Samuel D.R. Satterwhite
Executive Director