07-20-2012 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, July 20, 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 6:30 a.m. Board Members present were:
Demond Dawkins, Mitch Herzog, Todd Wintters, and John Yeager.
WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris.
Ex-officio members Mayor Eric Hogue and Mindy Manson were present. Mayor Hogue
departed the meeting at 7:45 a.m. Assistant City Manager Jeff Butters was also present and
departed from the meeting at 7:50 a.m.
CITIZEN PARTICIPATION
Ms. Lynn Grimes commented that she believed the WEDC was doing an exceptional job in
attracting new commercial business to Wylie and encouraged the continued use of aggressive
economic development programs in pursuit of additional tax base and new jobs.
There being no citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 —Consider and act upon issues surrounding the election of WEDC officers.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to elect
the following officers: Marvin Fuller — President, Mitch Herzog — Vice
President, Todd Wintters — Treasurer, and John Yeager - Secretary. The
WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon approval of the June 22, 2012 Minutes of the WEDC
Board of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the June 22, 2012 Minutes of the WEDC Board of Directors
Meeting. The WEDC Board voted 5 — FOR and 0 —AGAINST in favor of
the motion.
WEDC—Minutes
July 20, 2012
Page 2 of 8
ITEM NO. 3 — Consider and act upon approval of the June 2012 WEDC Treasurer's
Report.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the June 2012 WEDC Treasurer's Report. The WEDC Board voted
5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4 — Consider and act upon issues surrounding an Amended and Restated
Performance Agreement between the WEDC and T.W. Snider& Associates, Inc.
Staff reminded the Board that the WEDC currently has an Agreement with T.W. Snider &
Associates to fund up to $205,000 in infrastructure assistance. The project was originally
designed to facilitate the construction of four, 4,800 square foot office condominiums consisting
of four, 1,200 square foot units in each. Under the Performance Agreement, Incentive No. 1 was
funded following the completion of the first 4,800 square foot shell and the finish out of the first
1,200 square foot office unit. The project is located off of Stone Road, behind the Exxon located
at the intersection of Stone and State Highway 78.
Staff continued that following completion of the first shell building in 2010 the overall economy
slowed considerably and the project did not progress as Mr. Snider or the WEDC had hoped.
While the office condominiums had originally been planned to sell to individual owners, Mr.
Snider was required to lease out three of the four units in Phase I with the last unit to be finished
out and occupied by September 2012.
Mr. Snider is planning on moving forward with Phase II with a 4,800 square foot shell to be
constructed and a single 1,200 square foot office suite finished out. As well, 17 additionally
parking spaces will be added along with a circular driveway to access the balance of the four-
phased development. A site plan was presented with current infrastructure highlighted as well as
what is proposed for Phase II.
Staff brought this item to the Board for two purposes: (A) would the Board be willing to
consider amending Performance Requirements for Incentive No. 2a and (B) would the Board be
interested in amending the Agreement to provide for more time to complete all four phases.
A reimbursement incentive of$45,000 is to be funded for Incentive 2a following completion of
(1) a 4,800 square foot shell on or before 8-1-13, and (2) completion of all parking and screening
required for Phases I, II, III, and IV. Mr. Snider reported that construction plans will be
submitted to the City of Wylie on or about August 1, 2012 with construction to begin within 45
days after receipt of the building permit. While all screening will be completed along with Phase
II, only 17 of the remaining 35 parking spaces will be constructed due to limited cash flow.
Based upon the negative impact the economy has had on commercial activity in the area and Mr.
Snider's continued commitment to the project, staff recommended the Board consider altering
the performance requirements for Incentive 2a. For those same reasons and staff's continued
belief that this office development is the highest and best use for the property, staff also
commented that the Board should consider extending the time frame by which Mr. Snider can
qualify for at least Incentive 2b and Incentive 3. Incentives No. 2b—4 however were based upon
WEDC —Minutes
July 20, 2012
Page 3 of 8
each phase having a cumulative sales price of $600,000. Sales of the office suites were not
progressing with Mr. Snider being forced to lease the suites. While the prospect of having owner
occupied office suites was attractive to the WEDC at the time the Agreement was contemplated,
staff believed Mr. Snider should not be penalized for reacting to the economic downturn.
Board member Herzog commented that as long as the circular drive is constructed the decreased
number of parking spaces provided was secondary. Board member Wintters agreed.
President Fuller directed staff to notify Mr. Snider that the Board is willing to consider amending
the terms of the Performance Agreement and directed staff to bring back a draft to the
Performance Agreement by the next Regular Board meeting. President Fuller also directed staff
to identify the existing appraised value for the properties.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
table the issue until the next Regular Board meeting. The WEDC Board
voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 5 — Consider and act upon issues surrounding the WEDC FY 2012 — 2013
Budget.
On July 10, 2012 staff presented to Council the proposed FY 2012 — 2013 WEDC Budget.
Council had no objections to the programs presented and awaits a final budget following the 7-
20-12 WEDC Board meeting. Staff presented the third draft of the FY 2012 — 2013 WEDC
Budget. It was reported that the City Secretary must file a City of Wylie Budget no later than 8-
5-12. Staff commented that only changes from Work Session#2 would be presented for review.
Compensation — Staff proposed a 2.5% Merit Increase for Senior Assistant Gerry Harris
equating to a budget increase of$1,524 which includes $1,219 in salary and an estimated$305 in
benefits. At the 7-13-12 Council Budget Work Session, Council directed the City Manager to
bring back a budget for City personnel reflecting a 5% raise. Staff requested that should the
Council approve a 5% raise for City staff that Ms. Harris be given the same percentage. The
Board unanimously directed staff to include 5% in the budget for Ms. Harris citing her
importance to the organization and diligent efforts over the past year. Staff indicated that 5%
would equate to an additional $1,524 expense to the proposed budget.
Advertising — Staff had proposed increased funding within 'Advertising' in the amount of
$8,988. Staff requested the Board approve the increase to fund a new publication initiated by the
Wylie News entitled 'In and Around Wylie' which would be a publication which would
complement advertising within the Wylie Connection, both aimed at local promotion of the
WEDC. Staff added that to offset the increase annual advertising expenses in the Wylie
Connection be reduced by $820 and 'Promotional Materials' be reduced by $2,000 resulting in a
net increase of$6,168.
A lengthy discussion ensued during which the Board members believed that while the WEDC is
positively promoted throughout the Wylie, Sachse, Murphy communities, WEDC efforts are
possibly not promoted throughout the region adequately.
WEDC—Minutes
July 20, 2012
Page 4 of 8
Board member Dawkins and Herzog directed staff to bring back to the Board in the near future
an analysis of the most efficient and cost effective way to promote the WEDC to the D/FW
metroplex via print advertising. Mr. Herzog recommended to the Board that the advertising be
increased by $15,000 for regional advertising efforts. Mayor Hogue commented that staff work
closely with the City Public Information Officer.
Mr. Yeager and Fuller both commented that the Board should not lose sight of the fact that many
citizens of Wylie are not familiar with what the WEDC has accomplished and its ongoing
responsibilities. To that end, it was recommended that the WEDC participate in the Wylie News
publication, but only 50% of what was recommended by staff.
Furniture & Fixtures — Staff requested that $2,500 be approved for the construction of built-in
cabinets underneath the work area in the copier room to provide for more storage.
Supplies — Other — The Board directed staff to budget $5,000 for ongoing expenses related to
the WEDC Business Center located in the Smith Library. The Board also directed staff to
inquire as to how much the Business Center is utilized and if the Library staff has held seminars
in developing resume's and business plans.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the Budget with the changes noted with the exception of the
Insurance Bond in the amount of$303. The WEDC Board voted 5 —FOR
and 0—AGAINST in favor of the motion.
John Yeager abstained from all discussion and vote on the issue of the Insurance Bond stating a
Conflict of Interest.
MOTION: A motion was made by Todd Wintters and seconded by Mitch Herzog to
approve the Budget line item of the Insurance Bond in the amount of
$303. The WEDC Board voted 4 — 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, RFP for financing the Woodbridge Parkway
extension, Wylie Ice Cream Holdings, Chemical Recycling, Inc., B&B Theatres, Woodbridge
Centre, PM Realty,Accurate Automatic, Sanden International, and regional housing starts.
Woodbridge Crossing
Woodbridge Crossing 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 April 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
WEDC—Minutes
July 20, 2012
Page 5 of 8
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,
2012. Staff reported that Direct will not meet the square footage requirement and be in default as
of September 1, 2012 resulting in a reduction of the maximum sales tax reimbursement from $12
million to $6 million. Based upon the pending default, staff has projected that the City of Wylie
and WEDC will reimburse a cumulative $6 mm to Direct on or about March 2017.
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 had been funded with
Ascend meeting all Performance Obligations within Section A of the attachment. Staff is
prepared to fund Payment #2 upon certification of the personal property valuation by the Collin
CAD on July 31, 2012.
RFP for Debt Associated with Extension of Woodbridge Parkway
RFP's were submitted following the 6-22-12 Board meeting. No requests for clarification have
been submitted to date. The City Manager is prepared to hold a Work Session with the City
Council to discuss joint City funding on 8-14-12.
Wylie Ice Cream Holdings
Dairy Queen will break ground by July 20th with a proposed 90 day construction time frame.
Dairy Queen has also requested that the City Manager submit their request for waiver of
thoroughfare impact fees to the City Council.
Chemical Recycling, Inc.
The City/WEDC environmental attorney has yet to draft a letter to Congressman Hall requesting
his assistance in having the EPA transfer regulatory authority over this site to the TCEQ.
B&B Theatres
Staff reported that B&B Theatres has elected to not have a ground breaking ceremony. B&B
typically has a very elaborate grand opening and they concluded that it was going to be too
difficult to coordinate with all the necessary parties out of state that would need to be here for a
groundbreaking so they will focus on the grand opening. Construction is scheduled to be
complete in early April, 2013.
WEDC —Minutes
July 20, 2012
Page 6 of 8
Woodbridge Centre
Kroger held their groundbreaking ceremony on June 27th at 11:00 a.m. on their site at
Woodbridge Parkway and F.M. 544. There were approximately 110 people in attendance.
PM Realty
J. Volk Engineering has prepared the median bid documents and is sending them out on 7-18-12
to Tiseo Paving, McMahon Contracting, and Ratliff Hardscapes & Construction. Bids will be
due back on 7-27-12. Staff will attempt to have a Special Board Meeting to award a bid on 7-31-
12
Staff reported that Oncor has amended their Discretionary Service Agreement to reflect an
altered funding proposal. While the original Agreement called for the contracted amount of
$208,120 to be funded within 30 days of completion, the amended Agreement requires $104,060
to be funded prior to construction and the balance in 12 months. Staff reported that while this
amended structure did not represent any savings, staff chose to accept the amendment for cash
flow purposes.
Accurate Automotive
Accurate Automatic is a machine shop located at 703 Business Way behind the Post Office. In
1998 the WEDC funded a $50,000 incentive package to assist Accurate in the expansion of their
facility. In 2001 Accurate purchased an adjacent property on Business Way which has an
office/tech building which occupies approximately half of the lot. Accurate is proposing to put a
warehouse on the balance of the property.
To facilitate the process, staff hired a surveyor to define the limits of the property being that
there is no current survey. Staff has also delivered the survey to Helmberger & Associates to
determine the maximum size of the structure. In addition to the survey costs, staff will be
recommending a small assistance package in the future for this project.
Sanden International
Sanden is in receipt of the WEDC incentive proposal and has indicated a decision will be made
by July 20, 2012. Also, staff did complete the letter to Mayor Hogue providing WEDC support
for a Work Session between Sanden, the City Council, and the WEDC Board of Directors.
Sanden has yet to formally request the Work Session.
Regional Housing Starts
Thirteen homes were permitted in Wylie for May 2012. Sachse, Lavon and Murphy permitted a
combined thirty-eight homes over the same period.
No action was requested by staff for this item.
WEDC—Minutes
July 20, 2012
Page 7 of 8
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 8:16 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).
• Request for Proposal -Project Detroit.
• Request for Assistance - Project UTS.
• Incentive Proposal - Project ATR.
Section 551.072 (Real Property) of the Local Government Code, Vernon's Texas Code
Armotated(Open Meetings Act).
• Purchase of properties located near the intersection of State Highway 78 and Cooper
Drive.
• Purchase of property near the intersection of Springwell and F.M. 544.
Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act).
Performance Evaluation- WEDC Executive Director.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 9:50 a.m. and took the following
action:
MOTION: A motion was made by Mitch Herzog and seconded by Demond Dawkins to
authorize staff to make an offer of no more than $0.75 per square foot to GE
Capital for 2.19 acres located near the intersection of Springwell and F. M.
544. The WEDC Board voted 5 —FOR and 0 — AGAINST in favor of the
motion.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
award a Bonus to the Executive Director equal to 12.5% of his annual salary
and fund an annual physical performed by The Cooper Clinic for the
Executive Director. The WEDC Board voted 5 — FOR and 0 — AGAINST
in favor of the motion.
NVEDC—Minutes
July 20, 2012
Page 8 of 8
AflJ(flTRNN'WNT
With no further business, President Fuller adjourned the WEDC Board meeting at 9:51 am.
Marvin Fuller,President
ATTEST:
Samuel Satterwhite, Director