04-27-2012 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, April 27, 2012 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 6:38 a.m. Board Members present were:
Chris Seely, Mitch Herzog, John Yeager and Todd Wintters.
WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris.
Ex-officio members Eric Hogue and Mindy Manson were present. Mayor Hogue departed the
meeting at 8:35 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 April 5, 2012 Minutes of the WEDC
Board of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to
approve the April 5, 2012 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 March 2012 WEDC Treasurer's
Report.
President Fuller requested that staff confirm whether Wylie Ice Cream Holding should be
categorized as a Note Receivable rather than a Deferred Charge (Incentive).
MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to
approve the March 2012 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 a WEDC Budget Transfer for FY 2011-2012.
Staff reviewed that on August 19, 2011 the WEDC Board of Directors authorized staff to hire
RLK Engineering to design an approximate 3,100 LF sewer line extension near the intersection
of F.M. 544 and Sanden on the north side of F.M. 544. RLK has completed all field work,
WEDC—Minutes
April 27, 2012
Page 2 of 5
contract has been awarded to Interstate Pipeline, and work on the sewer line will be complete by
May 4, 2012.
On February 17, 2012 the WEDC Board of Directors approved a bid of up to $229,000 with a
5% contingency. Interstate Pipeline has submitted the first draw for work completed
($111,965.30).
The Finance Department has established a `Sewer System' account for tracking expenditures
associated with the sewer line extension. Upon Board approval, $230,000 will be transferred
from the Land Account ($199,000) and the Incentives Account ($31,000) into the Sewer System
Account. The Land Account will have a remaining balance of $150,000 with $1,000,378
remaining in the Incentives Account. $174,000 within the Incentives Account is earmarked for
prior WEDC commitments.
Staff recommended that the WEDC Board of Directors approve Budget Transfer Request EDC4-
27-12 in the amount of$230,000.
MOTION: A motion was made by Todd Wintters and seconded by Chris Seely to
approve a WEDC Budget Transfer for FY 2011-2012 in the amount of
$230,000. The WEDC Board voted 5 — 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, Commercial Lease/Performance
Agreement between the WEDC and ACE, WISD 1.5 acres, sewer line extension, WEDC
insurance, ICSC 2012, B&B Theatres, and regional housing starts.
Woodbridge Crossing
Staff reported that Woodbridge Crossing/Direct Development is currently in compliance with all
terms of the Amended and Restated Performance Agreement. The Sales Tax Reimbursement
Report was presented which identified all sales taxes generated through February 2012 within
Woodbridge Crossing for the City General Fund, the WEDC, and the 4B. 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.
The next performance measure of a cumulative 385,118 square feet is required to be in place by
September 1, 2013. There is currently 318,152 square feet in place within Woodbridge Crossing.
Ross, Rack Room, and Rue 21 are currently under construction and will result in approximately
40,000 square feet. Rosa's Café closed on an acre lot in front of Target on April 20tn which will
result in an additional 6,940 square feet. Staff also reported that Direct is again negotiating with
TJ Max with additional restaurant activity taking place.
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April 27, 2012
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President Fuller requested that staff provide projections for cumulative sales tax reimbursements
through 2020.
A summary of Direct Developments' Performance Obligations was presented for the Board's
review.
Ascend Commercial Lease and Performance Agreement
The Ascend Custom Extrusion Critical Dates Analysis and Performance Agreement Monitoring
Procedures were presented. Payment #1 of the Economic Incentives has been funded with
Ascend meeting all Performance Obligations within Section A of the attachment. A final
Certificate of Occupancy was issued on September 23`d
A meeting was held at Ascend on April 20th to discuss faulty roof drains at the Ascend facility.
Present at the meeting were representatives of Hill & Wilkinson, Pulliam Construction
Management, WEDC, and Ascend. The consensus was that the current design results in most
rainfall bypassing the drains and vacating the roof through the roof scuppers. This scenario
causes accelerated discoloration of the building and accelerated erosion below the scuppers. Hill
& Wilkinson has proposed a redesigned which will divert water into the primary drains.
WISD 1.5 acre Tract
Mr. Parker had submitted the sole bid on the 1.5 acre WISD tract on F.M. 544 with the WISD
Board of Trustees accepting the bid at their most recent Board Meeting. Mr. Parker must now
produce a survey and the closing will take place following its submittal to the WISD.
Sewer Line Extension
The WEDC sewer line project will be completed on or about May 4, 2012. Staff has approved
several change orders for sewer taps within each manhole for the property owners, sodding
disturbed areas in front of American Restoration, and boring the driveway in front of Rains
Plumbing. Project cost will remain below the approved $220,000.
WEDC Insurance
All WEDC facilities are covered under the City of Wylie insurance policy with no increased cost
for FY 2011 — 12. Beginning in FY 2012 — 2013 the WEDC will be assessed $1,000 for this
coverage.
ICSC 2012
The Wylie community will be sending City and WEDC representatives to the national ICSC
conference May 20 — 23, 2012. Staff will begin preparing for this important endeavor the week
of April 30th. The Board requested weekly updates as to staffs progress in establishing meeting
with retailers and a comprehensive calendar identifying daily activities.
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April 27, 2012
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B&B Theatres
B&B Theatres is scheduled to close on 10 acres of property near the southwest corner of F.M.
544 and Woodbridge Parkway on April 30, 2012.
Regional Housing Starts
Eighteen homes were permitted in Wylie for March 2012. Sachse, Lavon and Murphy permitted
a combined twenty-four homes over the same period.
No action was requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:08 a.m. in compliance with Section 551.001
et.seq. Texas Government Code to wit:
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas
Code Annotated (Open Meetings Act).
• Consider a request for assistance from Project Warranty utilizing WEDC property located
at 2804 W. F.M. 544 to develop a new commercial facility.
• Consider a request for assistance for the extension of utilities on FM 1378 north of
Stonecrest Trail and south of Parker Road.
• Consider a proposed amendment to a Performance Agreement between the WEDC and
PM Realty Group.
• Consider a proposed amendment to a Performance Agreement between the WEDC and
Wylie Ice Cream Holdings.
• Consider requests for assistance for a commercial development located near the
intersection of Cooper Drive and F.M. 544.
• Consider a request for assistance from Project ATR.
• Consider a request for assistance from JTM Technologies.
• Consider a request for assistance for a commercial project located near the intersection of
Commerce Street and F.M. 544.
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
Board Member Mitch Herzog left the meeting at 8:50 a.m. due to conflict of interest surrounding
the PM Realty Group item. He did not return to the meeting.
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April 27, 2012
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The WEDC Board of Directors reconvened into open session at 9:05 a.m. and took the following
action:
MOTION: A motion was made by John Yeager and seconded by Chris Seely to
approve a two year note in the amount of $2,500 to Wylie Ice Cream
Holdings (Personally guaranteed by Bobby Glass) at 5% interest payable
annually with the note being funded at closing. The WEDC Board voted 4—
FOR and 0—AGAINST in favor of the motion.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 9:05a.m.
Marvin Fuller, President
ATTEST:
Samuel Satterwhite, Direc or