12-17-2010 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, December 17, 2010 — 6:30 A.M.
WEDC Offices — Conference Room
250 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 Todd Wintters. Mr. Herzog left the meeting at 8:50.
WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.
Ex-officio members Erie Hogue and Mindy Manson were present. Mayor Hogue left the
meeting at 8:27 a.m.
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 November 18, 20,10 Minutes of the
WEDC Board of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to
approve the November 18, 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 November 22, 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 November 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. 3 — Consider and act upon approval of the November 2010 WEDC Treasurer's
eport.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve the November 2010 WEDC Treasurer's Report. The WEDC Board
voted 4 — FOR and 0— AGAINST in favor of the motion.
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December 17, 2010
Page 2 of 4
ITEM NO. 4 — Consider and act upon issues surrounding the refinancing of WEDC debt
held by Mr. Don Hughes and Prime Kuts (Mr. Marty Anderson).
Staff reported that Mr. Hughes and Mr. Anderson had been approached to reduce the current
notes with the WEDC from 6% to 5%. As reported previously, Mr. Hughes is interested in
refinancing with Mr. Anderson requesting that the loan be paid off opposed to refinancing. Mr.
Anderson's payoff is S170,494,
With Mr. Hughes loan having a S214,453 outstanding balance at a current rate of 6%, the 1%
reduction would result in a savings of 56,685 over the remaining, life of the note. The only
expense staff could foresee would be the fee to file the note and possibly 5300 in legal fees.
Mr. Herzog proposed that the Board refinance Mr. Hughes note at the rate of 5°/0, and pay off the
balance of Mr. Anderson's note.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
authorize Mr. Fuller to execute the loan modification to Mr. Hughes note
and to authorize WEDC staff to execute the loan payoff to Mr, Anderson.
The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion,
DISCUSSION ITEMS
ITEM NO. 5 — Staff report: review issues surrounding an Amended and Restated
Performance Agreement between the WEDC and Woodbridge Crossing, WEDC office
relocation, and regional housing starts.
The Board members were reminded by staff that the Board may not discuss an item which is not
specifically identified on the agenda. Only those items listed on the agenda can be discussed.
Woodbridge Crossing
Staff reported that Woodbridge Crossing is currently in compliance with all terms of the
Amended and Restated Performance Agreement. A Sales Tax Reimbursement Report was
presented which identifies all sales taxes generated and reimbursed through September 2010
within Woodbridge Crossing for the City General Fund, the WEDC, and the 4B Corporation.
Staff also reviewed that the City and WEDC will be reimbursing 85% of all sales taxes generated
within Woodbridge Crossing through September 2013 and 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. There is currently 81,000 square feet under construction slated to be completed by
March, 2011. A 'critical dates analysis' was also presented for the Board's review.
A fourth, quarterly payment was issued to Direct Development on 12-1-10 in the amount of
S77,836. The Board was asked to note the Audit Adjustment which was received after the most
recent quarterly payment. Grand China Buffet submitted sales tax payments which had not been
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December 17, 2010
Page 3 of 4
paid to date. This situation related to a previous question raised at a Board meeting which posed
the possibility of a lump sum payment for prior unpaid taxes which could have negatively
impacted the WEDC financially. Staff discussed that since the WEDC only bases its
reimbursements on sales taxes received from the site, there could be no negative impact to the
budget.
WEDC Office Relocation
Staff reported that the office relocation has been completed with only minor complications. It
had been anticipated that there was an existing conference table \Nhich could be utilized;
however the table was too small to meet the WEDC need. A conference table was purchased for
S2,199 and a matching credenza for $1,000. Also purchased was office furniture for the Director
and Administrative Assistant for 55,533, new phones for S523, and wiring for computers and
copier at $997. As well, a mover was hired at a cost of S631. With a budget of S10,500, total
expenses were S I 0,883.
Regional Housing Starts
Housing starts were reported as down this month for Wylie, Lavon, and Sachse with permits up
slightly for Murphy. With only 5 homes permitted in December to date, Wylie should only
permit approximately 260 homes this year; which is down from the 300 homes the WEDC' had
been projecting for a majority of the year.
Staff Recommendation
No action was requested by staff
President Fuller chose to delay discussion of Item No. 6 until after Executive Session.
ITEM NO. 7 — Review issues surrounding the 2011 WEDC Annual Report.
In anticipation of the WEDC Annual Report which must be presented to the Wylie City Council
no later than January 31, 2011, staff presented an outline for the upcoming report and asked for
feedback from the Board. The report must include, but is not limited to, a review of all
expenditures made by the Board, a review of accomplishments, and a review of other than direct
economic development. While not identified within the By-laws, staff believed that an in-depth
analysis of 2011 goals and objectives be presented. The Board asked that any activity on the
Pleasant Valley property be included on the Annual Report. The Board also asked that the move
of the WEDC offices be added to the report and that any mention of Kansas City Southern be
removed from the report.
Staff had no recommendation at the time,
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:20 a.m. in compliance with Section
551.001, et.seq. Texas Government Code, to wit:
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December 17, 2010
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Section 551.071 (Consultation with Attorney) of the Local Government Code, Vernon's Texas
Code Annotated (Open Meetings Act).
• Deliberate a pending or contemplated litigation surrounding Project Re-tool.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:27 a.m.
No action was taken as a result of discussions held in Executive Session.
ITEM NO, 6 — Review issues surrounding the construction of a 96,000 square foot
industrial facility at 1405 Martinez Lane and a Purchase Agreement between the WEDC
and SAF-Holland USA, Inc.
Staff reported that the partial release from the International Bank of Luxembourg had yet to be
received. Supposedly it had been executed and was to arrive on Wednesday the 15th.
Mobilization for construction was scheduled to begin on Monday, December 201 which would
have to be delayed if closing couldn't take place on the Holland purchase and the ANB
construction loan by Friday, December 17111. The delay did not appear to be with Holland
representatives. Based upon comments from Holland's attorney,, this type of delay is typical
from Holland's lender.
The Board was presented with an updated construction schedule and budget. Mobilization is due
to begin on 12-20-10 with building pad completion and piers being drilled on January 11, 2011.
Issuance of the certificate of occupancy is scheduled for 5-31-11.
The original construction budget had been established at $5,220,939. With many of the bids in
the budget is now at $5,065,708 (-$155,231). Mr. Jacob Riney, H & W Senior Estimator, was
present at the Board meeting to field questions and to review the updated budget and
construction process.
No action was requested by staff,
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board m eting at 9:04 a.m.
•
olkA (/1
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director