08-20-2010 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, August 20, 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 Administrative Assistant
Gerry Harris.
Ex-officio member Mayor Eric Hogue was present. Also present was Assistant City Manager
Jeff Butters.
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 August 4, 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 August 4, 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 July 2010 WEDC Treasurer's
Report.
MOTION: A motion was made by John Yeager and seconded by Chris Seely to
approve the July 2010 WEDC Treasurer's Report. The WEDC Board voted
4 — FOR and 0 — AGAINST in favor of the motion.
ITEM NO. 3 — (MOTION TO REMOVE FROM TABLE) Consider and act upon issues
surrounding the election of WEDC officers.
MOTION: A motion was made by John Yeager to remove Item 3 from the table.
Staff reviewed that each July following the selection of WEDC Board members by the Wylie
City Council, the WEDC elects officers for the upcoming year. Staff provided Section V —
Officers of the WEDC By-laws. Section V provides for the selection of Officers and the duties
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August 20, 2010
Page 2 of 4
of the same. On July 17, 2009, the WEDC Board elected the current officers following
Councilman Young's departure from the WEDC:
Marvin Fuller— President Mitch Herzog— Secretary
John Yeager— Vice President Chris Seely—Treasurer
President Fuller initiated a discussion surrounding the potential need for a change to the existing
leadership so as to not become complacent or stagnant. Mr. Seely indicated that he believed the
leadership roles, especially that of President, was working well. Mr. Herzog commented that he
believed continuity brought stability to the Board. Mr. Fuller responded that while he
appreciated the confidence of the Board he believed that there should be a leadership change in
2011 if not this year.
MOTION: A motion was made by Chris Seely and seconded by John Yeager
nominating Marvin Fuller for WEDC President, Mitch Herzog Vice
President, John Yeager Secretary and Chris Seely Treasurer, 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 WEDC and BBV Texas Development, LLC.
Staff provided for the Board's review an executed Performance Agreement between the WEDC
and BBV Texas Development, LLC. The WEDC and BBV entered into this Agreement on June
27, 2007 for the purpose of providing cost reimbursement for infrastructure improvements
including water, sewer, drainage and roadway improvements in an amount not to exceed
$96,000. The WEDC funded the first reimbursement of $32,000 in July 2008. The Second
reimbursement of$27,040 was funded in July 2009.
In order for BBV to Qualify for the third reimbursement incentive of$32,000, a $7 million real
property valuation is called for, employment of eighty full and part time employees at the Wylie
location must be met, and the WEDC must confirm that all ad valorem taxes have been paid.
While the employment requirement has been met at 129 and property taxes are current, the
certified valuation from the Collin County Central Appraisal District came in at $5,802,601;
which was down from $5,914,760 in 2009.
Staff presented that the Agreement contemplated potential performance measure shortfalls and
included language which would allow consideration of a reduced incentive payment. Staff read
to the Board Section V of the Agreement stating that "in the event that the Company does not
meet or exceed the Performance Requirement as specified in Section II, the WEDC
Reimbursement Incentive would be either voided or reduced proportionately in advance of
payment at the sole discretion of the WEDC." The current real property valuation is 82.9% of
the established benchmark (82.9% x $32,000 = $26,528).
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog
approving a reimbursement incentive per the terms of the Performance
Agreement between the WEDC and BBV Texas Development, LLC in the
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August 20, 2010
Page 3 of 4
amount of$26,528. The WEDC Board voted 4 — FOR and 0 — AGAINST
in favor of the motion.
ITEM NO. 5 - Staff report: review issues surrounding an Amended and Restated
Performance Agreement between the WEDC and Woodbridge Crossing, City of
Wylie/WEDC Interlocal Agreement, a Proposal for a Commercial Development Strategy &
Retail Recruitment for the City of Wylie, Texas from Catalyst Commercial, a proposal to
lease WEDC property on Cooper Drive, Collin County Day — Austin, 25 Steel Road, and
regional housing starts.
Woodbridge Crossing: Woodbridge Crossing is currently in compliance with all terms of the
Amended and Restated Performance Agreement. Attached for your review is the Sales Tax
Reimbursement Report which identifies all sales taxes generated and reimbursed through March
2010 within Woodbridge Crossing for the City General Fund, the WEDC, and the 4B
Corporation. As a reminder, the City and WEDC will be reimbursing 8.5°/0 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. With lot preparation for Kohl's underway on June 22nd along with signed leases for
PetsMart and Dollar Tree, staff is confident that Direct will meet the 5-1-11 performance
measure. Should any future performance measure not be met, the maximum reimbursement of
$12 million will be reduced to $6 million. A 'critical dates analysis' was provided for review.
City of Wylie/WEDC Interlocal Agreement: Staff reported that it is his understanding that the
City of Wylie plans on utilizing WEDC property located on F.M. 544 for a Parks Department
maintenance facility.
Proposal for a Commercial Development Strategy & Retail Recruitment for the City of
Wylie, Texas from Catalyst Commercial: Staff reported meeting with Catalyst Commercial
which has proposed updating the City of Wylie Retail Trade Area Market Analysis and
providing retail recruitment assistance. While the Board agreed that the market analysis needed
updating, they were not comfortable with the $49,817 project cost. Staff commented that with so
many unknowns relating to negotiations with Project 95k, it might be prudent to delay the study
until FY 2011 — 2012.
Proposal to lease WEDC property on Cooper Drive: Staff presented a request from 'Twice
the Ice' to lease WEDC property located at the intersection of Cooper Drive and F.M. 544, The
company is seeking to construct a self-serve ice dispenser which meets all City of Wylie building
requirements. The proposed lease rate $4,800 to $7,200 annually. The Board was not interested
in pursuing this opportunity.
Collin County Day — Austin: Staff reminded the Board that Collin County Days has been
schedule for March 2 — 4, 2010. Aside from staff, Mr. Herzog and Mr. Winners are planning on
attending the event.
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August 20, 2010
Page 4 of 4
25 Steel Road: Staff reported receiving the deed for 25 Steel Road. As reported previously, the
WEDC is in the process of satisfying liens placed upon the property by the City of Wylie for
mowing and maintenance in the amount of $1,255. Also, a title policy will be in place by
September 1, 2010 for the taxable value of$70,808. Staff chose to increase the policy over and
above the $25,171 purchase price based upon the minimal increase in cost of$330.
Regional Housink Starts: Housing starts were reported as up this month with 33 homes
permitted in July. The strong trend continues with only one month is this year in which less than
20 new homes were permitted and an annual total of 300 permits easily attainable (a 17%
increase over 2009).
EXECUTIVE SESSION
The WEDC Board Recess into Closed Session at 7:24 a.m. in compliance with Section 551.001,
et.seq. Texas Government Code, to wit:
Section 551.087 (Economic Development Negotiations) of the Local Government Code,
Vernon's Texas Code Annotated (Open Meetings Act).
Deliberate commercial or financial information that the WEDC has received from a business
prospect and deliberate the offer of incentives to a business prospect.
Section 551.072 (Real Property) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
Discuss purchase of property generally located near the intersection of State Highway 78 and
Martinez Lane.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 9:17 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 me? g at 9:18 a.m.
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director