04-20-2011 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Wednesday, April 20, 2011 — 6:30 AM,
WEDC Offices —Conference Room
250 South Highway 78 — Wylie, Texas
CALL TO ORDER
Announce the presence of a Quorum
President Marvin Fuller called the meeting to order at 6:30 a.m. Board Members present were:
Chris Seely and Mitch Herzog.
WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.,
Ex-officio members Eric Hogue and Mindy Manson 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 March 21, 2011 Minutes of the
WEDC Board of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to
approve the March 21, 2011 Minutes of the WEDC Board of Directors
Meeting. The WEDC Board voted 3 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 2 — Consider and act upon approval of the March 2011 WEDC Treasurer's
Report.
President Fuller questioned whether the Ascend 'prepaid rent' was included in the Claim on
Cash. Mr. Fuller also directed staff to prepare an internal tracking document, similar to WEDC
Balance Sheet sub ledgers, to account for Ascend expenses related to interim interest,
construction management, and improvements made to the Holland Hitch storage area. Further,
Mr. Fuller requested that a contingent liability be accounted for in the event Ascend does not
exercise its purchase option and leases the facility to term with the WEDC being contractually
obligated to repay all funds associated with the 50°A participation of the Holland purchase and
improvements.
MOTION: A motion was made by Chris Seely and seconded by Mitch Herzog to
approve the March 2011 WEDC Treasurer's Report subject to clarification
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April 20, 2011
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requested on the Building Account. The WEDC Board voted 3 — FOR and 0
— AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon issues surrounding a 'I udget Transfer Request for
the WEDC FY 2010 — 2011 Budget.
On March 2, 2011, the WEDC Board of Directors approved a proposal by staff to undertake a
Restaurant Recruitment Strategy to be performed by The Retail Coach. The fee for completion
of this study is $12,500 plus expenses. The Board approved an amount of no more than
$14,000. In order to fund this expense from Special Services staff proposed to utilize $8,000
currently in the Special Services — Miscellaneous Account as well as transfer $6,000 from
Advertising to Special Services.
Staff recommended that the WEDC Board of Directors approve Budget Transfer Request
EDC4-15-11 in the amount of$6,000.
MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to
approve Budget Transfer Request EDC4-15-11 in the amount of S6,000.
The WEDC Board voted 3 — FOR and 0 — AGAINST in favor of the motion.
ITEM NO. 4 — Consider and act upon issues surrounding the construction of a 96,000
square foot industrial facility at 1405 Martinez Lane.
Staff reported that an application for draw Request #2 had been submitted to the WEDC for its
review and approval. The second request was for $1,421,396. Staff anticipated receiving ANB
approval by 4-22-11. Staff reported that combined with Request #1, the WEDC will have
borrowed $1,646,823 on a total $4.7 mm construction loan.
The Ascend completion date has been moved from 6-29-11 to 6-22-11. Panel erection was
scheduled to begin on April 20 with the steel package to be delivered April 25th. The retaining
wall on the Holland side was started on April 15th with a completion date of May 6th,
The WEDC's construction manager was present to make a brief presentation.
No action was requested by staff for this item.
ITEM NO. 5 - Consider and act upon issues surrounding an Impact Fee Agreement
between the City of Wylie and the WEDC.
Staff reported that after briefing the City Council in Executive Session on a request to provide
incentives to the Ascend project in the form of reduced Thoroughfare Impact Fees, staff will
present an Impact Fee Agreement between the WEDC and City of Wylie requesting a reduction
of thoroughfare impact fees from $202,789.44 to $41,095.86 (providing a credit of$161,693.58).
Under Section 395.023 of the Local Government Code, municipalities are able to waive or credit
fees due from a developer for offsite improvement funded by the developer. In this case, the
WEDC replaced 1,865 linear feet of asphalt roadway (Martinez Lane) with a concrete street with
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April 20, 2011
Page 3 of 5
curb and gutters at a construction cost of$412,524. Staff added that Section 395.023 allows for
the WEDC to request a credit equal to the construction cost of offsite improvements with the
WEDC only requesting a partial reduction.
The requested thoroughfare impact fee of S41,095.86 in addition to all other development fees
imposed by the Building Department and Water Department equaled $108,825. Ascend is
contractually obligated to fund 50% of these development fees which will be paid at the time the
resolution is executed.
The Wylie City Council is scheduled to consider approval of the Impact Fee Agreement on April
26, 2011. Staff encouraged Board members to attend this Council meeting.
Staff recommended that the WEDC Board of Directors approve an Impact Fee Agreement and
Resolution 2011-01 between the City of Wylie and WEDC.
MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to
approve an Impact Fee Agreement and Resolution 2011-01 between the City
of Wylie and WEDC. The WEDC Board voted 3 —FOR and 0—AGAINST
in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 6 — Staff report: review issues surrounding an Amended and Restated Performance
Agreement between the WEDC and Woodbridge Crossing, an Ad Valorem Tax Abatement and
Sales Tax Reimbursement, Agreement between the City of Wylie, WEDC, and Greenway
Investment Company, VS Rhinestone Design, Glenn Brothers Meats, ICSC 2011, Restaurant
Recruitment Strategy, and regional housing starts.
Woodbridge Crossing
Woodbridge Crossing is currently in compliance with all terms of the Amended and Restated
Performance Agreement. A Sales Tax Reimbursement Report was presented which identified all
sales taxes generated through October 2010 within Woodbridge Crossing for the City General
Fund, the WEDC and the 4B Corporation along with an 'audit adjustment' generated in October
2010, As a reminder, 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 performance measure due May 1, 2011 of 64,000 square feet of lease space constructed on
the in-line lots adjacent to Target between McCreary and Springwell has been met. Direct
Development has been notified in writing that they are in compliance with the City/WEDC
Agreements with the next performance measure of a cumulative 385,118 square feet due by
September 1, 2013. Currently there is 314,652 square feet in place within Woodbridge Crossing,
3,500 square feet under construction, with Ross and Rack Room Concepts planned for in-line
space next to Kohl's.
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April, 20, 2011
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A summary of Direct Developments' Performance Obligations was presented for the Board's
review.
Greenway Investment Company
On April 26th, staff will request that the City Council terminate the Abatement/Sales Tax
Agreement with Greenway and further waive the reimbursement of all abated taxes.
VS Rhinestone Design
Staff reported that VS intended to close on their site within Regency Business Park the week of
April I 8th. Staff reminded the Board that the WEDC was committed to reimburse VS up to
$5,000 for the relocation/installation of equipment.
Glenn Brothers Meats
Staff reported that Glenn Brothers Meats had declined the offer made by the WEDC to purchase
their property on Industrial Court. No explanation was provided/requested with no counter to the
WEDC's offer.
ICSC 2011
On May 22 — 25, staff along with the Mayor and Board member Seely and Wintters will attend
ICSC in Las Vegas. With two anchors for Woodbridge Crossing secured, the 2011 focus will be
on end users, specifically restaurants. There has been some recent activity on the site across
from Wylie High School by a national grocer which may allow the WEDC to interact with their
representatives early on in the process.
WEDC Restaurant Recruitment Strategy
The Retail Coach has indicated that an initial target list will be developed by April 20th for
review by the WEDC. After finalizing the list, marketing packages will be sent to the targeted
restaurants and The Retail Coach, along with staff, will begin making personal contacts. It will
be the goal of staff to make personal contact with each target, or their real estate representative,
at ICSC in May. Staff will distribute the initial target list on the afternoon of the 201 for Board
input or a two-person Board subcommittee can be created to meet on the 21 or 22nd.
Regional Housing Starts
Staff reported that Wylie was up 40% for the month, and down 8% YTD, Lavon was down 30%
YTD, Murphy was down 64%, and Sachse was down 32% YTD.
No action was requested by staff for this item.
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April 20, 2011
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EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:24 a.m. in compliance with Section
551.001, et.seq. Texas Government Code, to wit:
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.
Section 551.087 (Economic Development Negotiations) of the Local Government Code,
Vernon's Texas Code Annotated (Open Meetings Act).
• Deliberate the offering of incentives to Project Infill.
• Deliberate the offering of incentives to Project Reef.
Section 551.072 (Real Property) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
• Deliberate the purchase of real property associated with Project Infill.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:45 a.m.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:45 a.m.
/// a44/(ry
Marvin Fuller, President
ATTEST:
-
Samuel D.R. Satterwhite
Executive Director