09-15-2011 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Thursday, September 15, 2011 —6:30 A.M.
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:
Mitch Herzog, John Yeager, Chris Seely and Todd Wintters.
WEDC staff present was Executive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.
Ex-officio members Mayor Eric Hogue and Mindy Manson were present. Councilman David
Goss was present. Assistant Manager Jeff Butters arrived at 6:45 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 August 19, 2011 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 19, 2011 Minutes of the WEDC Board of Directors
Meeting. The WEDC Board voted 5 — FOR and 0 —AGAINST in favor of
the motion.
ITEM NO. 2 — Consider and act upon approval of the August 2011 WEDC Treasurer's
Report.
MOTION: A motion was made by John Yeager and seconded by Chris Seely to
approve the August 2011 WEDC Treasurer's Report. The WEDC Board
voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon issues surrounding the extension of a sewer line to
serve commercial property located near the intersection of Westgate Way and F.M. 544.
Staff reported that RLK had completed all field work associated with the design and planned to
submit to engineering for comments by September 16, 2011. Further, staff had received
construction estimates from Helmberger Associates of$176,825 with RLK estimating a probable
cost of construction to be $251,762. Helmberger had planned for an aerial crossing of a creek at
WEDC—Minutes
September 15, 2011
Page 2 of 5
544 and Sanden and RLK planned for a bore with a casing pipe ($34,500). RLK's figures are
also a probable 'not to exceed' figure with competitive bids coming in lower than$251,762.
Staff stated his belief that the WEDC should fund the sewer improvements during the 2011 —
2012 fiscal year. However, staff did not recommend at this time that the WEDC solicit RFP's
from qualified bidders for construction. Staff will seek input from Council on 9-27-11 regarding
the use of Wells property for commercial use, and did not want to be perceived to be out ahead
of Council on this issue. Should Council determine that the 19-acre Wells tract be used for open
space, the design of the sewer will be impacted as open space uses do not typically require sewer
service.
After receiving Council direction possibly by October, staff believed that the WEDC could be
under construction by December should the Board approve the project. Also, this sewer project
will be placed on the City of Wylie Capital Improvement Plan by+December which will present
the WEDC with a mechanism to be reimbursed for its costs.
Staff recommended that the issue be tabled until final direction from Council is received.
MOTION: A motion was made by John Yeager and seconded by Chris Seely to table
the issues surrounding the extension of a sewer line to serve commercial
property located near the intersection of Westgate Way and F.M 544. The
WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4 — Consider and act upon issues surrounding the construction of public
parking on property owned by the First Baptist Church of Wylie.
Staff had hoped to present an update on this item but had not been able to obtain all the
necessary information. Staff recommended that the WEDC Board of Directors table the item.
MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to
table the issues surrounding the construction of public parking on property
owned by the First Baptist Church of Wylie. The WEDC Board voted 5 —
FOR and 0—AGAINST in favor of the motion.
ITEM NO. 5 — Consider and act upon issues surrounding the disposition of a 1.5 acre tract
owned by the Wylie ISD located near the intersection of F.M. 544 and Woodbridge
Parkway.
WEDC Board Member Mitch Herzog excused himself at 6:45 a.m. due to his position of Board
Trustee for the WISD and his relationship with Richard Parker Real Estate.
As staff presented, there is a f 1.5 acre tract owned by the Wylie Independent School District
(WISD) adjacent to the Scholz/Parker tract at the intersection of Sanden and F.M. 544. As
Scholz/Parker began to prepare their site for development via grading, flood plain reclamation,
and the addition of fill dirt it became evident that should the Scholz/Parker site develop
independent of the WISD site, the WISD would have a very slight opportunity to develop and
would present an ongoing maintenance issue. Staff approached the previous WISD
WEDC—Minutes
September 15, 2011
Page 3 of 5
administration and inquired as to the potential sale of the 1.5 acres. The WISD's response was
that their tract provided a buffer to future development and that should their site sell they would
require $5 - $7 per square foot.
With the current commercial activity, staff approached the WISD Superintendent and inquired as
to his philosophy for the disposition of this excess acreage. The response was very encouraging
with direction to staff to assist the WISD prepare the property for sale. The assistance from the
WEDC can be in the form of surveying and appraisal of the tract. For a school district to sell a
parcel of property it must first be surveyed and then an appraisal must be completed so that the
district can determine the market value. The Superintendent was hesitant to take on these
expenses when there is no assuredness that the value will be in excess of a sales price. This
assessment was based upon the unknown of what impact the flood plain would have on the
appraisal. The Superintendent also believed that the WEDC's support of this sale will be
important to the Board of Trustees.
Staff had received verbal estimates of $1,800 and $1,000 respectively for surveying and
appraisal services. After completion of the above activities, the District would provide notice of
its intent to auction the parcel to highest bidder, with a minimum sales price established the
appraisal. Being that the parcel most likely would have value to only one entity; it is likely that
Scholz/Parker would be the sole bidder.
The Board requested that if there are any additional funds over and above the cost of the
survey/appraisal those funds be returned to the WEDC to reimburse those costs.
Staff recommended that the WEDC Board of Directors authorize the Executive Director to spend
no more than $2,800 for the survey and appraisal of a 1.5 acre tract owned by the Wylie
Independent School District.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
authorize the Executive Director to spend no more than $2,800 for the
survey and appraisal of a 1.5 acre tract owned by the Wylie Independent
School District. The WEDC Board voted 4 — FOR and 0 — AGAINST in
favor of the motion.
WEDC Board Member Mitch Herzog returned to the meeting at 6:59 a.m.
DISCUSSION ITEMS
ITEM NO. - Staff Report: review issues surrounding an Amended and Restated Performance
Agreement between the WEDC and Woodbridge Crossing, Commercial Lease/Performance
Agreement between the WEDC and Ascend Custom Extrusion, City of Wylie 19-acre tract, and
regional housing starts.
Woodbridge Crossing
Woodbridge Crossing was reported to be in compliance with all terms of the Amended and
Restated Performance Agreement. A Sales Tax Reimbursement Report was presented which
WEDC—Minutes
September 15, 2011
Page 4 of 5
identified all sales taxes generated through June 2011 within Woodbridge Crossing for the City
General Fund, the WEDC, and the 4B Corporation. As a reminder, the City and WEDC will be
reimbursing 85% of all sales tax generated within Woodbridge Crossing through September
2013. Beginning October 2013, 65%of all sales taxes generated will be reimbursed.
Direct Development is currently in compliance with all terms under the Performance Agreement
with the next performance measure of a cumulative 385,118 square feet due by September 1,
2013. There is currently 318,152 square feet in place within Woodbridge Crossing. Also, Ross,
Rack Room, Eyemaster's, and Rosa's Café are beginning the initial phases of the
construction/finish-out process.
A summary of Direct Developments' Performance Obligations was presented for the Board's
review.
Ascend Commercial Lease and Performance Agreement
An Ascend Custom Extrusion Critical Dates Analysis and Performance Agreement Monitoring
Procedure was presented for the Board's review. Payment #1 of the Economic Incentives was
funded with Ascend meeting all current Performance Obligations. Ascend has yet to obtain its
Final CO Due to the paint line installation not being completed. Mr. Jamey Rentfrow indicated
that the final programming functions are being performed and that installation will be completed
within the next ten days.
City of Wylie 19-acre Commercial Tract
Staff reported a plan to present to Council on September 27th the potential for utilizing the 19-
acre Wells tract located on F.M. 544 for commercial uses.
Regional Housing Starts
Sixteen homes were permitted in Wylie for August 2011. Sachse, Lavon and Murphy permitted
a combined eighteen homes over the same period. Single family construction in Wylie is down
22% compared to 2010.
No action is requested by staff for this item.
EXECUTIVE SESSION _
Councilman David Goss and Assistant City Manager Butters were invited to stay for Executive
Session.
The WEDC Board recessed into Closed Session at 7:11 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).
WEDC—Minutes
September 15, 2011
Page 5 of 5
• 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.
Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act).
• Consider issues surrounding the sale of WEDC property located near the intersection of
Cooper Drive and State Highway 78.
• Consider issues surrounding the purchase of property located near the intersection of
Cooper Drive and State Highway 78.
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas
Code Annotated(Open Meetings Act).
• Consider issues surrounding Multi-Machining.
• Consider issues surrounding B&B Theatre.
• Consider issues surrounding Clark Street Development.
• Consider issues surrounding Medical uses considering a site near the intersection of F.M.
544 and Sanden Blvd.
WEDC Board Member Mitch Herzog left Executive Session at 7:48
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:01 a.m.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:01 a.m.
Marvin Fuller,President
ATTEST:
- 44,
Samuel D.R. Satterwhite
Executive Director