09-21-2012 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, September 21, 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 Eric Hogue and Mindy Manson were present.
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 28, 2012 Minutes of the
Wylie Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the August 28, 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 August 28, 2012 Minutes of the
Special Called Joint Work Session of the WEDC Board of Directors and Wylie City
Council.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve the August 28, 2012 Minutes of the Special Called Joint Work
Session of the WEDC Board of Directors and Wylie City Council. The
WEDC Board voted 5—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon approval of the August 2012 WEDC Treasurer's
Report.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to
approve the August 2012 WEDC Treasurer's Report. The WEDC Board
voted 5 —FOR and 0—AGAINST in favor of the motion.
WEDC—Minutes
September 21, 2012
Page 2 of 6
ITEM NO. 4 — Consider and act upon the purchase of property from Jerry & Carmie
Randack located at 711 & 713 Cooper Drive (Wylie Industrial Park Block A, Lots 2A, 3,
and 4.
Staff reported that the WEDC is under contract to purchase 1.089 acres from the Randack's for
$400,000. Each party will be responsible for their customary fees including the seller being
responsible for the title policy. Staff is preparing to take the item to Council for their approval
on October 9, 2012 with the feasibility period expiring October 14, 2012.
Resource Environmental Consulting performed an asbestos survey resulting in the identification
of 3,180 square feet of asbestos-containing linoleum in the western two-thirds of the building.
Intercon Demolition has provided a `not-to-exceed' quote of$6,500 to dispose of the materials
prior to demolition of the facility. Staff did not suggest the immediate demolition of the
structure but did recommend that upon purchase, the WEDC should remove the hazardous
materials and keep on file the report clearing the property of the same. Mr. Wintters agreed with
the recommendation. The Board directed staff to contact the Seller's Agent and request that the
seller reduce the purchase price by $6,500 to pay for the cost of removing the contaminated
materials from the building.
With no 'out of the ordinary' encumbrances of the property other than utility easements, and
following Board and Council approval, staff is prepared for the WEDC to close on the property
seven days following the expiration of the feasibility period.
American National Bank will be prepared to fund the transaction by October 14th, providing 80%
financing at the direction of staff. American also indicated that should the Board change its
mind any time before closing, 100% financing would be available at 2.99%.
Staff recommended that the WEDC Board of Directors approve the purchase of Wylie Industrial
Park Block A, Lots 2A, 3, and 4 in the amount of$400,000 further authorizing President Fuller
to execute all documentation necessary to effectuate the purchase.
Mr. Dawkins and Mr. Fuller stated that since American is willing to provide 100% financing,
with no fees, the WEDC should take advantage of the package offered.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the purchase of the Randack property and authorize President
Fuller to execute the closing and financing documents. The WEDC Board
voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 5 — Consider and act upon issues surrounding an Amended and Restated
Performance Agreement between the WEDC and T.W. Snider& Associates.
Staff presented an Amended and Restated Performance Agreement between T.W. Snider and the
WEDC. Following direction from the Board on July 20th, staff developed the proposed
amendments based upon the following criteria:
WEDC—Minutes
September 21, 2012
Page 3 of 6
1. Mr. Snider is to be allowed three additional years to meet performance requirement
contemplated under the Agreement (August 1, 2013 to August 1, 2016).
2. Parking requirements contemplated under Section 2 (b) were reduced from 100% of the
required parking for Phase II, III, and IV to an additional 17 spaces and circular access
between Building 3 and Building 4.
3. Phase II (4,800 square feet) must be completed in shell form by November 2013 to
qualify for Incentive 2a.
4. While the previous Agreement called for a cumulative sales price of $600,000 for the
four office suites in each Phase, the amendment allows for a combination of sales price
and appraised value of$600,000.
5. Within Section IV, staff included language which allows the Board to consider a scenario
under which the square footage requirements are met for Phase III or Phase IV, but the
valuation not certified due to the contemplated construction being complete after January
1, 2016. The proposed language allows the Board to consider at their sole and absolute
discretion the certified value in July 2017 so long as the square footage requirement is
met prior to August 1, 2016.
Staff recommended that the WEDC Board of Directors authorize the WEDC Executive Director
to execute an Amended and Restated Performance Agreement between the WEDC and T. W.
Snider and Associates.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
authorize WEDC Executive Director to execute an Amended and Restated
Performance Agreement between the WEDC and T. W. Snider. 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, Woodbridge Centre, PM Realty, purchase of 0.5 acre
from Duel Products, extension of Woodbridge Parkway, Wylie Ice Cream Holdings, WEDC
Invitational, and regional housing starts.
Woodbridge Crossing
Staff reported that on September 6, 2012, Woodbridge Crossing, L.P. was 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. A Valuation Tracking Report was presented which
showed that there is 369,822 square feet within Woodbridge Crossing. Woodbridge Crossing,
L.P. will have 30 days to cure the identified default.
Also presented was the Sales Tax Reimbursement Report which identified all sales taxes
generated through June 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.
WEDC—Minutes
September 21, 2012
Page 4 of 6
Ascend Commercial Lease and Performance Agreement
An 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 of the attachment. Ascend
currently operates 2 shifts and employs 185 individuals.
Woodbridge Centre
Clark Street maintains a projected opening for the Kroger anchored center of June 2013. Edge
Realty has maintained that there has been significant progress in leasing discussions specifically
attributed to the extension of Woodbridge Parkway.
PM Realty
Oncor is maintaining a completion date for burial of overhead utilities on or about October 1st
Following completion of the burial and activation of the new lines, the overhead poles and lines
will be removed, including the power pole located in the center of the easternmost access point
to the site.
PM had approached the WEDC with a new request for financial assistance in the design and
construction of artwork to be located in the public right-of-way at the main entrance to the site.
PM had secured commitments from the Public Arts Advisory Board and the Parker-Scholz
group. Staff replied however to PM that the WEDC was not in a position expend monies for that
purpose and respectfully declined their request.
Purchase of 0.5 acre from Duel Products
With the assistance of Lawyer's Title, Duel was able to obtain a partial release from its lender.
The WEDC closed on the property on September 7, 2012. Staff will place the Duel site and
adjacent WEDC site on a future agenda to discuss platting and anticipated uses for the 1 acre
which is now available to the west of Duel Products remaining facility.
Extension of Woodbridge Parkway
Staff reported that the Engineering Department received a 50% set of plans with no significant
comments. A 90% set of plans will be available on or about October 3rd as well as right-of-way
documents. From that point an appraisal will be ordered for right-of-way which will be
completed on or about October 24th. Bid documents will be distributed the first of December and
take approximately four weeks to be awarded. Following mobilization, construction should
begin in March 2013 with a twelve month completion timeframe.
Wylie Ice Cream Holdings
Staff reported that Dairy Queen will be open by November 1, 2012. A training day will be
announced before the official opening at which there will be no charge for food and beverages.
WEDC—Minutes
September 21, 2012
Page 5 of 6
WEDC Invitational
Staff has sent out 170 notices for the 6th annual WEDC Invitational Golf Tournament on October
24t. Staff anticipates approximately 80 participants.
Regional Housing Starts
Twenty homes were permitted in Wylie for August 2012. Sachse, Lavon and Murphy permitted
a combined thirty-eight homes over the same period.
No action was requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:02 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.
• Incentive Proposal -Project ATR.
Section 551.072 (Real Property) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
• Purchase of property located near the intersection of F.M. 544 and Cooper Drive.
• Purchase of 2.189 acres from GE Capital located near the intersection of McCreary Rd.
and F.M. 544.
• Purchase of property near the intersection of Martinez Lane and Alanis.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 9:15 a.m. and took no action.
WEDC — Minutes
September 21, 2012
Page 6 of 6
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 9:16 a.m.
Marvin Fuller,President
ATTEST:
Samuel Satterwhite, Director