05-20-2011 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, May 20, 2011 — 6:30 AN,
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 John Yeager. Todd Wintters arrived at 6:35,
WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.
Ex-officio members Mayor Eric Hogue and Mindy Manson were present.
CITIZEN PARTICIPATION
There being no citizen participation, President Fuller proceeded to Action Items,
ACTION ITEMS
ITEM NO. I — Consider and act upon approval of the April 20, 2011 Minutes of the WEDC
Board of Directors Meeting.
MOTION: A motion was made by Chris Seely and seconded by Marvin Fuller to
approve the April 20, 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 April 2011 WEDC Treasurer's
Report.
Staff pointed out some deficiencies in the Treasurer's Report in relation to the Ascend Custom
Extrusion Financial Summary. Outstanding question which remain are: 1) should the $2.56
million already borrowed by the WEDC for construction be booked as a liability; and 2) should
the $148,542.30 outstanding balance of Ascend funds to be used for construction management
and interim interest be booked as a liability? President Fuller indicated that the Ascend Project
Summary was helpful in tracking current and future expenses related to the project, but did
request that a report detailing project benchmarks, similar to the Woodbridge Crossing report, be
provided for the Board's review at the next Board meeting.
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May 20, 2011
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MOTION: A motion was made by John Yeager and seconded by Chris Seely to
approve the April 2011 WEDC Treasurer's Report. The WEDC Board
voted 3 — FOR and 0 — AGAINST in favor of the motion.
ITEM NO. 3 — 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 43 had been submitted to the WEDC for its
review and approval. The third request was for $914,908. Staff anticipated receiving ANB
approval by 5-19-11. Staff reported that combined with Request #1 and #2, the WEDC will have
borrowed $2,561,731 on a total $4.92 mm construction loan.
The Ascend completion date remained at 6-22-11, but staff reported doubt that H&W would
meet that deadline. High winds during the week of 5-9-11 delayed the roof completion which in
turn has delayed backfilling the foundation. Ascend is installing their stretcher bed currently
with the paint line arriving the week of 5-30-11. Ascend also indicated that an offer has been
made on their second press.
The WEDC's construction manager was present to make a brief presentation of the construction
schedule.
No action was requested by staff for this item.
DISCUSSION ITEMS
ITEM NO. 4 — 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, ICSC 2011, Restaurant Recruitment Strategy, 19 acre commercial tract
owned by the City of Wylie (formerly the Wells tract), parking improvements in downtown
Wylie, American Restoration, FY 2011 2012 WEDC Budget, extension of Woodbridge
Parkway, and regional housing starts,
I.Voodlyidge 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 February 2011 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 that they are in compliance with the City/WEDC Agreements
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May 20, 2011
Page 3 of 6
with the next performance measure of a cumulative 385,118 square feet due by September 1,
2013. There is currently 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.
A summary of Direct Developments' Performance Obligations was presented for the Board's
review. Also presented was a Valuation Tracking Analysis which identified the appraised value
of the land and improvements since 2005. An updated version of this report will provided in
June and again in ±September when the values are certified.
Greenway Investment Company
On May 1011' the Wylie City Council authorized the City Manager to execute a Termination
Agreement between Greenway and the City of Wylie. WEDC Counsel did want a more formal
document even though it was indicated earlier that a letter agreement' would suffice. While the
WEDC Board already authorized staff to execute the Agreement, a copy was provided for the
Board's review.
ICSC 2011
On May 22— 25, staff along with the Mayor and Board member Wintters will attend ICSC in Las
Vegas. With two anchors for Woodbridge Crossing secured, staffs 2011 focus will be on end
users, specifically restaurants. There has however been some recent activity on the site across
from Wylie High School by a national grocer which will allow us to interact with their
representatives early on in the process.
WEDC Restaurant Recruitment Strategy_
A concerted effort will be made at ICSC to make contact with as many restaurants which fit the
Wylie demographic as possible. While an attempt will be made to set up individual meetings
with each restaurant or their real estate representative, that may not be 100% possible. Our
contact information and restaurant recruitment packet will be left with each entity identified in
our Restaurant Recruitment program.
As of Monday, May 16'1 , demographic profiles and Wylie marketing materials went out to 23
restaurant concepts which were narrowed down from a list of 45 concepts with the help of Board
members Fuller and Herzog. That list was attached for the Board's review. As with most ICSC
attendees, staff will attempt to schedule meetings with all of our 'targets' the rest of this week.
Regardless of our success in meeting with the entities on the Master List, these concepts will be
our focus for the near future. As we progress through this process, staff will provide a monthly
tracking report as to our success or lack thereof in attracting these concepts to Wylie along with
feedback received from the restaurants or their representatives.
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May 20, 2011
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19 Acre Commercial Tract Owned by the City of Wylie (Wells Property)
The WEDC has funded a grading plan and coordinated the relocation of fill dirt on the 19 acre
commercial tract near the intersection of Sander' and F.M. 544. A great deal of debris came in
with the dirt which could create maintenance problems. With the grass growing rapidly, staff
had to make a decision to hire a firm to grade certain areas and remove a significant amount of
debris. Two bids were received in the amount of$6,800 and $4,000. The WEDC and City of
Wylie are going to split the cost of the low bid.
Downtown Trvlie Parking Improvements
The First Baptist Church of Wylie (FC) owns a 0.2 acre lot on Ballard Street next to Boyd
Studio. As discussed previously, the WEDC had briefly discussed paving the lot to address
downtown parking needs for an ownership stake in the lot. With FBC not interested in
conveying its interest in the lot to the WEDC, staff still believes there is a need that could be
filled by paving the lot. With potentially 35 spaces to be added at approximately +$35,000, staff
plans on approaching the Parks Board and the Wylie City Council to seek their input.
Staff had discussed the issue with FBC officials with there still being significant interest in
structuring an agreement for public parking on the lot with the WEDC to be reimbursed for a
percentage of its cost after an unidentified period of time. Staff will continue to work on this
project because there are significant public benefits at stake being that downtown parking is
significantly limited during peak periods. Staff believed input from the City Council and Parks
Board could be obtained prior to the WEDC Board Meeting in June.
American Restoration
Staff has been working with the principals at American Restoration on F.M. 544 to facilitate the
development of a concept site plan under which light industrial development could be developed
alongside commercial uses. American Restoration owns 12 acres on the north side of F.M. 544
with a 10 acre tract to the east owned by the Benson family and an 8 acre tract to the west owned
by James Blakey. To the west and adjacent to the Blakey tract is the 19 commercial property
owned by the City of Wylie.
American Restoration would like to utilize the northern half of their property for light industrial
uses with the frontage utilized for commercial uses (office and retail). With the depth of the
property being+750' and assuming proper screening, staff believes that the commercial and light
industrial uses could coexist in this corridor commercial zoning district.
Helinberger Associates has assisted staff in developing a concept plan and more importantly
estimating infrastructure cost. The Benson, American Restoration, Blakey, and City of Wylie
properties currently do not have sewer service. Further, there is a large drainage swale that
bisects the northern portion of the American Restoration tract. Staff understands that to provide
sewer service to any of the aforementioned sites; a line must be extended +3,1E00 feet to the west
where Muddy Creek intersects F.M. 544. The estimated cost for these improvements is
S161,000 not including engineering or surveying.
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May 20, 2011
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To place the storm sewer underground on the American Restoration site and adequately handle
the flow which is coming from the Westgate subdivisions to the north and northeast, a 54" pipe
must be put in place for an estimated 800' at an estimated cost of 52I7,000. The storm sewer
improvements would only be put in place if the utilization of the northwest corner of the
American Restoration property economically outweighed the cost of the improvements.
Staff committed to the expense of 54,200 for the boundary and topographical survey of the 12
acre American Restoration site. First of all, staff committed to this expense as a first step in
securing an initial 25,000 square foot American Restoration expansion and ±50,000 square feet
of mixed-use commercial development. Secondly, staff sees this project as an opportunity to
bring sewer service to the area and open up 50 acres to commercial development including the
City of Wylie 19 acre site. The concept site plan was attached for the Board's review.
As discussions progress with American Restoration, staff will place this item on an upcoming
agenda as an action item.
FY 2011 — 2012 WEDC Budget
City of Wylie staff began the budget process on April 25, 2011. WEDC staff will provide input
for sales tax revenue estimates to the City of Wylie by May 31, 2011. Staff anticipates
presenting the first draft of the WEDC budget to the Board on June 17th and seeking approval
from the Board on July 15th. Presentation of the WEDC Budget to Council will take place on
July 12th or July 26th.
Extension offVoodbrid e Parkway
The commercial tract at the southwest corner of Woodbridge Parkway and F.M. 544 (Herzog
tract) is currently under contract to Clark Street Development which anticipates developing a
grocer anchored mixed use development. The ideal development scenario is for the north/south
access of Woodbridge Parkway to be in place to facilitate direct traffic flow to State Highway
78. At the intersection of the future alignment of Woodbridge Parkway and State Highway 78,
the City of Sachse has announced a Super Wal Mart. Staff understands that the Sachse portion
of Woodbridge Parkway will be in place to the bridge and that the City of Sachse is in the
process of identifying funding for the bridge which is 100% in the City of Sachse. What remains
is 52 million for infrastructure improvements and right-of-way acquisition within Wylie City
limits,
Staff believes that the commercial opportunities on the 35 acre Herzog tract at 544 and
Woodbridge Parkway combined with the future development of the 50 acre Scholz tract north of
the North Texas landfill warrant the consideration of public funds being utilized to fund the
improvements. Whether it is 4A sales tax backed certificates of obligation sold by the City or a
public private partnership similar to the Direct Development sales tax reimbursement program,
the City/WEDC should begin planning for this public investment. What must happen from this
point forward is for the parameters of the Clark Street development be solidified and
confirmation from Sachse that the bridge will be built. The Mayor, City Manager, and staff have
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May 20, 2011
Page 6 of 6
discussed the proposed development with Clark Street and had a very positive meeting.
Additionally, the Mayor and WEDC will meet with Clark Street at ICSC.
Regional Housing Starts
Only 18 homes in Wylie were permitted in April below the 23 homes permitted in April 2010
with Sachse, Lavon and Murphy below 2010 figures as well.
No action was requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:35 a.m. in compliance with Section
551.001, et.seq. Texas Government Code, to wit:
Recess into Closed Session 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).
• Receive legal advice concerning Cause No. 366-01521-2011 in the 366th Judicial District
in the case styled Wylie Economic Development Corporation vs. Sanden International
(U.S.A.), Inc.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:33 a.m.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:33 a.m.
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Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director