Loading...
08-17-2012 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, August 17, 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 Winners, and John Yeager. WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris. Ex-officio members Eric Hogue and Mindy Manson were present. CITIZEN PARTICIPATION Lynn Grimes, business owner (Wylie Art Gallery) at 201 N. Ballard, Wylie, TX inquired about the progress of a parking lot paving project that the WEDC had been working on last year for the benefit of the downtown businesses on Ballard Street. President Fuller asked staff for an update with staff responding that while the project is budgeted for the FY 2012 — 2013; neither the WEDC nor the City Council has formally authorized the project. President Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the July 31, 2012 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to approve the July 31, 2012 Minutes of the Wylie Economic Development Corporation. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 2 — Consider and act upon approval of the July 2012 WEDC Treasurer's Report. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the July 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 the use of WEDC owned property on Cooper Drive (Wylie Industrial Park, Block A,Lot 16B) by Hargrave& Hargrave Foundation Repair. WEDC—Minutes August 17, 2012 Page 2 of 7 Staff reported being approached by the owner of Hargrave & Hargrave foundation repair located at 710 Cooper Drive to utilize the WEDC lot purchased from KCS for outside storage. The current Hargrave site is classified as a `contractor's yard' in the Corridor Commercial zoning district which allows for the outside storage of properly screened materials. Staff indicated that the 0.464 acre WEDC lot could be leased to Hargrave which in turn could expand their use as a contractor's yard. However, because the use would be expanded, the existing non-conforming screening would have to be brought up to the current standard of 100% masonry construction. The WEDC property would also have to be screened and an improved concrete surface would be required. Staff has maintained a consistent position of acquisition of properties on Cooper Drive and the expansion of businesses with a non-conforming structure does not advance the philosophy of redevelopment for this area. However, should Hargrave be interested in the funding of a concrete surface and masonry screening for both lots with a short term lease, staff would recommend based upon the benefit to a local business and the additional screening to be provided for the Hargrave lot. The Board considered that after purchasing the KCS property considerable funds had been spent to remove the concrete pad that was on the lot. The comment was also made by Board Member Dawkins that if the lease with Hargrave & Hargrave was terminated, the WEDC or future owner would be required to spend additional funds to remove the concrete. President Fuller asked staff to obtain an estimate on what it would cost Hargrave & Hargrave to improve the front of the existing building as well as the cost of the paving. Mr. Fuller also asked staff to get an estimate of the cost of removing the paving. MOTION: A motion was made by John Yeager and seconded by Mitch Herzog 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. 4 — Open sealed bids from financial institutions responding to an RFP from the WEDC for financing roadway and bridge improvements to Woodbridge Parkway. Board President Marvin Fuller left the meeting at 6:53 citing a conflict of interest. Vice President Mitch Herzog conducted the meeting in his absence. On June 22, 2012, staff distributed a Request for Proposal to all local financial institutions to secure up to $2 million in funding for roadway and bridge improvements to Woodbridge Parkway. Bids were due back to the WEDC no later than 5:00 p.m. on August 16, 2012. The bids were opened and read aloud at the Board meeting. ITEM NO. 5 — Consider and act upon awarding of a bid to a financial institution for financing associated with roadway and bridge improvements to Woodbridge Parkway. The WEDC Board of Directors received documentation from Inwood National Bank and American National Bank. The Board directed staff to accept the bid from American National Bank based upon the following options: WEDC—Minutes August 17, 2012 Page 3 of 7 Purpose: To provide funds to meet WEDC share of the construction expenses related to the extension of Woodbridge Parkway from Hensley Lane to State Highway 78. Loan Amount: $2,000,000 Payment Structure: Interim: 12 months interest only Permanent: Monthly payment of principal and interest, beginning 30 days from the end of the construction period. Initial Year One Draw Period Interest Rate: 2.61% Permanent Term Interest Rate: 2.61% - 10 years fixed at 2.61% Origination Fee: None Collateral: Pledge of Sales Tax Receipts Guarantors: None Expenses: WEDC agrees to pay all expenses of Bank incurred in connection with the negotiation, preparation, and documentation. These fees will be at borrower's cost and borrower will have the option to roll all set-up/ documentation fees into the loan balance. American National Bank also offered the following rates on existing loans with ANB: RE: WEDC REPRICING PROPOSAL FOR EXISTING DEBTS Borrower: Wylie Economic Development Corporation(WEDC) Existing Debt: (1) $4,663,674.76 (2) $296,890.08 Current Rate: (1) 5.75% (2) 4.95% Proposed Interest Rates: (1) 4.55%fixed for the remaining term of 172 months (2) 2.95% fixed for the remaining term of 38 months Origination Fee: None Prepayment Penalty: None WEDC—Minutes August 17, 2012 Page 4 of 7 Expenses: None MOTION: A motion was made by Todd Wintters and seconded by John Yeager to accept the bid presented by American National Bank as stated above. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. President Marvin Fuller returned to the meeting at 7:07. 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, Chemical Recycling, Inc., Woodbridge Centre, PM Realty, Duel Products/JTM Technologies, WEDC properties on F.M. 544 & Steel Road, Performance Agreement between WEDC and T.W. Snider & Associates, WEDC Invitational, 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. However, on September 1, 2012 Woodbridge Crossing, L.P. will be notified that they are in default of Phase IV of the Performance Agreement which requires 385,000 cumulative square feet of retail space to be constructed on site. Staff presented a Valuation Tracking Report showing 369,822 square feet within Woodbridge Crossing. The Report also noted the increase in valuation from $45.6 million in 2011 to $52.9 million in 2012. Woodbridge Crossing, L.P. will have 30 days to cure the identified default. Staff also presented the Sales Tax Reimbursement Report which identified all sales taxes generated through May 2012 within Woodbridge Crossing for the City General Fund, the WEDC, and the 4B. 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. Ascend Commercial Lease and Performance Agreement The Ascend Custom Extrusion Critical Dates Analysis and Performance Agreement Monitoring Procedures were presented. Payment #2 of the Economic Incentives has been funded with Ascend meeting all Performance Obligations within Section A. Staff reported that Ascend currently operates 2 shifts and employs 185 individuals. Chemical Recycling Inc. While the EPA agreed to transfer oversight of the CRI site to the TCEQ, no time frame for the transfer has been provided. Staff requested in writing from the EPA a date by which the transfer is to take place. Staff also wrote Congressman Hall's office to request their assistance in moving toward TCEQ oversight. WEDC —Minutes August 17, 2012 Page 5 of 7 Woodbridge Centre Construction of the Kroger Marketplace anchored Woodbridge Centre is progressing with a projected opening of June 2013. Kroger had some slight challenges in meeting the requirements of the sign ordinance for their fuel center but City staff was extremely responsive to the matter and worked out the issue in a timely manner. PM Realty A pre-construction meeting will be held between Tiseo and the City Engineering Department on Wednesday, August 15th with construction under way the week of August 20th Oncor staked the property and is coordinating the construction schedule with Time Warner and Durable Specialties. Durable Specialties will be providing the electrical service feed modifications to the TxDOT signal at 544 and Sanden. Oncor maintains that all overhead lines will be buried by October 1, 2012. Duel Products/JTM Technologies Staff reported that the IRS has approved the sale. Even with this approval Duel Products must seek approval from the bankruptcy court which Duel has not initiated. JTM Technologies has determined that it is no longer in their best interest to pursue the construction of a 10,000 square foot facility on the V2 acre the WEDC currently owns in addition to the 1/2 acre being purchased from Duel. While staff does believe that the continued delays have attributed to JTM cancelling the project, JTM also cites recent capital investments which may weaken their financial position. Staff will continue to pursue purchasing the Duel site unless told otherwise. WEDC properties on F.M. 544 and Steel Road Located at 25 Steel Road in Wylie, the WEDC owns 0.65 acre with no improvements. Adjacent and to the east of the WEDC tract is a 2 acre tract owned by Mr. Boyd Hager and adjacent to the west is a 0.65 acre tract owned by Thao Kha. The Hager tract has a 6,700 square foot facility which does not appear to meet many of the existing building codes or development standards. The Kha tract has a 5,000 square foot facility which was built in 2000 and is operated as an automotive repair shop. Staff reported that Mr. Hager is asking $700,000 for his property which would prevent the WEDC from purchasing it for a combined redevelopment effort. Staff plans to place a sign on the Steel Road property providing WEDC contact information. Staff indicated that should United Tech Services decide not to proceed with their project on the Ferrell tract, the WEDC will have a 1.4 acre tract that in staff's opinion should be marketed for office use. That marketing should begin with a real estate sign (after United Tech decision). Until that redevelopment occurs staff will not only market the property for new development but lease out the existing 2,800 square foot office/shop. City improvement including air conditioning, interior finish out, and screened storage yard will add value for the short term. WEDC —Minutes August 17, 2012 Page 6 of 7 Performance Agreement between WEDC and T.W. Snider Mr. Randy Hullett had not completed amendments to the Snider Performance Agreement. Those amendments will be completed and available for Board review/approval in September. WEDC Invitational Staff is preparing for the 6th annual WEDC Invitational Golf Tournament on October 25th at Woodbridge Golf Course. Seventy-five players participated in the 2011 event. Staff requested that the Board members identify individuals to participate in the 2012 event which may benefit the WEDC in its commercial development efforts. Regional Housing Starts Nineteen homes were permitted in Wylie for July 2012. Sachse, Lavon, and Murphy permitted a combined thirty-three homes over the same period. No action was requested by staff for this item. EXECUTIVE SESSION The WEDC Board recessed into Closed Session at 7:26 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 551.087 (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. • Request for Assistance—Cornerstone Development Corp. • Incentive Proposal -Project ATR. • Performance Agreement with Woodbridge Crossing, L.P. Section 551.072 (Real Property) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). • Purchase of property near the intersection of Springwell and F.M. 544. • Purchase of property near the intersection of Cooper Drive and F.M. 544. RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:14 a.m. and took no action. WEDC —Minutes August 17, 2012 Page 7 of 7 ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 8:14 a.m. 414M 1,94 Marvin Fuller,President ATTEST: Samuel Satterwhite,Director