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07-14-2010 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Wednesday, July 14, 2010 — 6:30 A.M. Inwood National Bank — Conference Room 200 South Highway 78 — Wylie, Texas CALL TO ORDER AnIzounce the presence of ct Ouorum President Fuller called the meeting to order at 6:30 a.rn. Board Members present were: John Yeager, Mitch Herzog, Todd Winners, and Chris Seely. WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry Harris. Ex-ofticio members Mayor Eric Hogue and Mindy Manson were present. Also attending was Assistant City Manager Jeff Butters. CITIZEN PARTICIPATION There being no citizen participation, President Fuller proceeded to Discussion Items. DISCUSSION ITEMS * Staff report: review issues surrounding the lease of WEDC facilities, an Amended and Restated Performance Agreement between the WEDC and Woodbridge Crossing, performance evaluation of the WEDC Executive Director, 25 Steel Road, Savage Precision Fabrication, Sanden International, and regional housing starts. Lease of WEDC Facilities: All WEDC owned properties are currently leased. Staff also indicated that the existing tenant at 2804 F.M. 544 may be vacating the property. Woodbridge Crossing: Woodbridge Crossing is currently in compliance with all terms of the Amended and Restated Performance Agreement. The Board was presented with the Sales Tax Reimbursement Report which identified all sales taxes generated and reimbursed through January 2010 within Woodbridge Crossing. Staff also reviewed that 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 McCreary and Springwell shall be completed no later than May 1, 2011 , Staff reported that with the opening of Kohl's, PetsMart, and Dollar Tree that the performance measure will be met. However, should any future performance measure not be met, the maximum reimbursement of S12 million will be reduced to 86 million. WEDC — Minutes July 14, 2010 Page 2 of 5 Staff also reported that a positive trend emerged out of May and June sales tax receipts. Even without Woodbridge Crossing, WEDC sales tax receipts were up 1,5 and 8°,70 respectively over the prior year. That gain represented a first since June 2009 of increased receipts excluding Woodbridge Crossing. 25 Steel Road: The deed for 25 Steel Road has been executed and staff is awaiting receipt of the original from WISD attorney Gilbert Bragg. Staff received a bid for removal of several drums of oil and cleanup of debris for 33,000, There also exists 31255 in liens by the City of Wylie for mowing that may or may not have been paid by Mr. Bragg. Once staff receives all final paperwork, the liens vill be paid if need be and released by the City. Evaluation of the Executive Director: Staff reported that the personnel evaluation for the WEDC Executive Director will take place in August. President Fuller distributed evaluation forms and requested that the Board Members complete the evaluation forms and return the same to him prior to the August Board meeting. Savage Precision Fabrication: A ceremony has been scheduled for September 2' honoring Savage as the National Subcontractor of the Year by the SBA. Congressmen Hall and Johnson along with Representative Laubenbcrg and Mayor Hogue will be speaking at the eVent along with Raytheon officials. The ceremony will begin at 11:30 a.m. followed by lunch. Sanden International: There was some confusion as to the Board's attendance at a tour of Sanden's progress in refitting the PX manufacturing line. Sanden officials wanted to have the Board and City Council tour the facility in September/October upon final completion of improvements. The June tour was for staff only and designed as an update only. Sandell officials apologized for any misunderstanding. Regional Housing Starts: While starts are down this month over 2009, a strong trend continues with only one month is this year in which less than 20 new homes were permitted. Staff Recommendation No action is requested by staff for this item. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the June 24, 2010 Minutes of the WEDC Board of Directors Meeting. MOTION: A motion was made by John Yeager and seconded by Todd Winners to approve the June 24. 2010 Minutes of the WEDC Board of Directors Meeting. The WEDC Board voted 5 — FOR and 0 - AGAINST in favor of the motion. WEDC - Minutes July 14, 2010 Page 3 of 5 ITEM NO. 2 - Consider and act upon approval of the June 2010 WEDC Treasurer's Report. MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to approve the June 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 the appointment of a Chair and Vice Chair of the WEDC Board of Directors for a one year term. Each July following the selection of WEDC Board members by the Wylie City Council, the WEDC elects officers for the upcoming year. On July 17, 2009, the WEDC Board of Directors elected the current officers, After completing all required materials for this item, staff noted that the agenda item had not been posted properly. The current wording indicates the appointment of Chair and Vice Chair opposed to election of 'Officers-. Therefore the agenda item has not been posted properly and must be tabled until the August Board Meeting. MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to table the election of officers to the August WEDC Board Meeting. The WEDC Board voted 5 - FOR and 0 - AGAINST in favor of the motion, ITEM NO. 4 - Consider and act upon issues surrounding the physical location of WEDC offices currently located at I08-C West Marble including but not limited to the lease of new office. During the June 24, 2010 WEDC Board meeting there was discussion of moving the WEDC offices to 303 South Jackson, The lease rate would be S2,500 per month for 2,000 square feet, or S1,500 per month for the WEDC and S1,000 per month for the Chamber in year one and S1,250 per month for both entities in year two. To locate to 303 South Jackson, the WEDC would be required to purchase a conference table with chairs and a limited amount of furniture for a reception area. Staff was confident that a large used conference table and chairs could be located for a greatly reduced price. Since the last discussion on this issue, another office has opened up which was not considered previously. Keller Williams plans to vacate its offices located at 250 South Highway 78 within the next 45 days, The property is owned by the WEDC's current landlord, Mr. Baron Cook, owner/operator of Lawyer's Title (previously Commonwealth Title), Should Mr. Cook decide to relocate Lawyers Title to 250 South Highway 78, the WEDC/Chamber would have the opportunity to lease approximately half of the building. The total lease rate would be S3,000 per month, with the WEDC/Chamber payments being 82,000/S1.000 for year one and S1 .500 /S1.500 for year two. A third option would be for the WEDC to occupy all of the space currently occupied by Lawyers title, with a lease rate of 82.500 per month. This would assume that the Chamber would occupy all of the space currently occupied by the WEDC/Chamber. WEDC — Minutes July 14, 2010 Page 4 of 5 A fourth option would be for the Chamber and WEDC to occupy 10000 of the space currently occupied by Lawyers for S2,500 per month. Both of these options are dependent on Mr. Cook moving to the Keller Williams building. A fifth option would be for the WEDC to buy a facility from either Mr. Cook or Mr. Tony Snider, Mr. Cook's building has an asking price of S450,000 with Mr. Snider selling 1,200 square foot suites for S169.900. The Snider price includes finish out. The final option would be to stay at the existing location. All options arc predicated upon the WEDC and Chamber staying together which seems to be the desire of the Chamber and if configured properly would be staffs preference as well, RECESS FROM 200 SOUTH HIGHWAY 78, WYLIE, TEXAS TO TOUR FACILITIES ITEM NO. 5 - The WEDC Board recessed at 7:03 a.m. to tour offices located at 250 South Highway 78 and 303 South Jackson. No action was taken during the tour of the offices. RETURN TO 200 SOUTH HIGHWAY 78, 'WYLIE, TEXAS ITEM NO. 6 — Continue consideration of and take any action resulting from discussion of issues surrounding the physical location of WEDC offices currently located at 108-C West Marble, including but not limited to the lease of new offices. The WEDC Board of Directors reconvened at 7:44 a.m. to further discuss the relocation of the WEDC offices. Mr. Herzog brought up one option that Staff had not addressed in his presentation which was relocating to the .new Municipal Complex. While Mr. Herzog believed that in light of the current investment in the new municipal complex and moreover fiscal responsibility, the subject should be discussed. Mr. Herzog commented that synergy would be positive and allow for convenient. interaction with other City departments, he believed that separate facilities projects a separateness that is important when representing 'business' interests. Mayor Hogue related that based upon the Executive Director reporting directly to the Board and not the City Manager; there exists the potential for discord due to the variance in daily operating procedures compared with other City department. Mayor Hogue continued that there are times when a developer's interest and the City's interest are different and the WEDC must be perceived to represent business interest first and foremost. WEDC offices within the City Manager's suite could detract from that primary responsibility. After much discussion of the pros and cons of all the options presented, Mr. Yeager said that it would be his preference for the WEDC offices to be located at 250 South Highway 78 if Mr. Cook decided to move Lawyers Title to that office. MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to negotiate a lease agreement for offices located at 250 South Highway 78. Should offices not be available at 250 South Highway 73, Mr. Yeager added to the motion to negotiate a lease agreement for offices located at 303 South WEDC — Minutes July 14, 2010 Page 5 of 5 Jackson. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 7 — Consider and act upon issues surrounding the FY 2010 — 2011 WEDC Budget. Staff presented the second draft of the FY 2010 — 2011 WEDC Budget to the WEDC Board of Directors. Staff will be making a WEDC Budget Presentation to the Wylie City Council on July 27th. President Fuller suggested that the Utility Account be increased by $1,300 to accommodate any increase caused by the relocation of the WEDC offices. There were no other changes. MOTION: A motion was made by Chris Seely and seconded by Mitch Herzog to approve the FY 2010 — 2011 WEDC Budget after adjusting the Utility Account to $4,800. The WEDC Board voted 5 — FOR and 0— AGAINST in favor of the motion. EXECUTIVE SESSION The WEDC Board of Directors convened into Executive Session at 8:28 a.m. I. Recess into Closed Session in compliance with Section 551.087 of the Texas Government Code, in order to deliberate regarding commercial or financial information that the City has received from a business prospect and to deliberate the offer or other incentives to a business prospect. RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 9:09 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 9:09 a.m. Marvin Fuller, President ATTEST: Samuel D.R. Satterwhite Executive Director