11-09-2010 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, November 9, 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
Vice President Herzog called the meeting to order at 6:30 a.m. Board Members present were:
John Yeager, Todd Wintters, and Chris Seely.
WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.
Ex-officio members Mayor Eric Hogue and City Manager Mindy Manson were present. Also
present was Assistant City Manager Jeff Butters who arrived at 6:37 a.m. Mayor Hogue
departed at 7:16 a.m.
CITIZEN PARTICIPATION
There being no citizen participation, Vice President Herzog proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the October 22, 2010 Minutes of the
WEDC Board of Directors Meeting.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the October 22, 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 a Resolution authorizing the Wylie
Economic Development Corporation to enter into a Loan Agreement with American
National Bank in an amount not to exceed $5,000,000, further authorizing Vice President
Herzog to execute all documentation necessary to effectuate the Loan Agreement.
While the loan documentation is not complete between the WEDC and ANB for the Project 95k
construction loan, staff reported that a Resolution authorizing the project and funding will be
required by ANB prior to execution of the Loan Ageement. Being that the Gross Maximum
Price is currently being refined by Hill & Wilkinson along with finalizing the down payment to
be funded by the 95k equity partner; staff recommended a loan amount not to exceed $5 million
even though the actual amount should be $4.8 million. The additional $200,000 was requested to
provide flexibility.
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November 9, 2010
Page 2 of 4
Staff was asked to address any extra money issues in the Lease Agreement. Staff was also
directed to change the signature line to reflect Vice President Herzog as the signee in addition to
correcting two typographical errors.
MOTION: A motion was made by Chris Seely and seconded by Todd Wintters
approving Resolution No. 2010-1(R) authorizing the WEDC to enter into a
Loan Agreement with American National Bank in an amount not to exceed
$5,000,000, further authorizing Vice President Herzog to execute said Loan
Agreement as amended. The WEDC Board voted 4 * FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon issues surrounding a Construction Escrow
Agreement between the WEDC and SAF-Holland USA, Inc.
Staff provided a Construction Escrow Agreement between the WEDC and SAF-Holland USA,
Inc. formalizing the WEDC's commitment to relocate improvements situated upon the 1.33 acres
being purchased by the WEDC from Holland, The escrowed $50,500 will fund the removal of
775 linear feet (LF) of existing chain link fence and install 621 LF of chain link fence on the new
property line. As well, 9,538 square feet of existing concrete will be removed with 11,770
square feet of paving added on Holland property.
The WEDC will have 120 days to complete the improvements. Hill & Wilkinson will be bidding
the improvements as an add-on to the bids for the 96,000 square foot industrial facility being
constructed on WEDC property. Hill & Wilkinson and those contractors bidding on the job are
aware that these improvements will be paid from a separate funding source.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the Construction Escrow Agreement between the WEDC and SAF-
Holland USA, Inc. The WEDC Board voted 4 —FOR and 0 — AGAINST in
favor of the motion.
ITEM NO. 4 — Consider and act upon approval of AIA Document 141 (Standard Form of
Agreement) and all applicable exhibits between the Wylie Economic Development
Corporation and Hill & Wilkinson, Ltd.
Staff presented for review the ALA Document 141 (Standard Form of Agreement) along with
Exhibits A, B, and C. WEDC Counsel Bob Roeder developed the document with input from
staff and Hill & Wilkinson's attorney. This AIA details each entity's responsibilities throughout
and following the construction process in addition to fees charged by Hill & Wilkinson.
Board member Yeager directed staff to ensure that the WEDC will be listed as additionally
insured within the applicable policies to be provided.
Staff recommended that the WEDC Board of Directors approve AIA Document 141 and all
applicable exhibits and further authorize President Fuller to execute the same.
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November 9, 2010
Page 3 of 3
MOTION: A motion was made by John Yeager and seconded by Chris Seely approving
AIA Document 141 and all applicable exhibits between the WEDC and Hill
& Wilkinson, Ltd. further authorizing President Fuller to execute the same.
The WEDC Board voted 4— FOR and 0—AGAINST in favor of the motion.
EXECUTIVE SESSION
The WEDC Board Recess into Closed Session at 6:53 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 offering of incentives to a business prospect (Project
95k).
• Deliberate a Performance Agreement between the WEDC and Project 95k.
• Deliberate a Commercial Lease Agreement between the WEDC and Project 95k.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:39 a.m.
ADJOURNMENT
With no further business, Vice President Herzog adjourned the WEDC Board meeting at 7:39
a.m.
°Marvin Fuller;President
t ) Pet-7151 ToELKT
ATTEST:
Samuel D.R. Satterwhite
Executive Director