10-19-2012 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, October 19, 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 6:30 a.m. Board Members present were:
Todd Wintters, and John Yeager, and Mitch Herzog.
WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris.
Ex-officio members Mayor Eric Hogue and Mindy Manson were present.
CITIZEN PARTICIPATION
There being no citizen participation, President Marvin Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the October 5, 2012 Minutes of the
Wylie Economic Development Corporation (WEDC) Board of Directors Meeting.
President Fuller asked that the Minutes be amended to reflect that the motion resulting from
discussions in Executive Session detailed that $177,000 was to be paid to Direct Development at
closing and $25,000 to Apple Texas at Certificate of Occupancy.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the October 5, 2012 Minutes of the Wylie Economic Development
Corporation as amended. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon approval of the September 2012 WEDC Treasurer's
Report.
President Fuller requested that future Treasurer's Reports include INCODE documentation
detailing payments in lieu of taxes received from Ascend and set aside for the City of Wylie and
the Wylie ISD.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the September 2012 WEDC Treasurer's Report. The WEDC Board
voted 4—FOR and 0—AGAINST in favor of the motion.
WEDC—Minutes
October 19, 2012
Page 2 of 4
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, WEDC participation in downtown parking
improvements, PM Realty, WEDC lease property at 2806 F.M. 544, WEDC Invitational, and
regional housing starts.
Woodbridge Crossing
The Sales Tax Reimbursement Report was presented which identified all sales taxes generated
through July 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. Woodbridge Crossing is eligible for a maximum $6 million in sales tax
reimbursement through September 2021.
Ascend Commercial Lease and Performance Agreement
The Ascend Custom Extrusion Critical Dates Analysis and Performance Agreement Monitoring
Procedures was 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.
WEDC Participation in Downtown Parking Improvements
The discussion of undertaking WEDC funded parking improvements on Ballard Street last
occurred in August 2011. As a review, staff proposed the construction of approximately 21
parking spaces on property owned by FBC Wylie to be used as `public parking' for the benefit of
Downtown Wylie. An aerial identifying the site on Ballard Street (Downtown Wylie) was
provided to the Board in addition to a concept design. The existing design contemplates a
connection to an existing FBC parking lot, but the utilization of an alley easement connecting to
Oak Street is also a possibility. In 2011 the City Engineer established a cost estimate of$40,000.
Staff intends to finalize negotiations by the end of the year between the WEDC and the First
Baptist Church surrounding joint use for public parking, and reimbursement to the WEDC for
expenses incurred should the property be sold. Final consideration by the WEDC Board and
City Council will be presented in January 2013.
PM Realty
Median improvements on F.M. 544 fronting the PM site are complete. The connection for power
to the meter feeding the traffic signal at 544 and Sanden will be made on 10-17-12. Oncor has
completed all improvements required for underground electrical service. Time Warner is
nearing completion of all required upgrades for their underground service. Following private
improvements required by PM, Oncor will finalize the underground connection and the overhead
poles and existing service lines will be removed.
WEDC—Minutes
October 19, 2012
Page 3 of 4
WEDC Lease Property Located at 2806 F.M. 544
The City of Wylie Parks Department will be vacating WEDC property located at 2806 F.M. 544
by the end of October. The City spent in excess of$30,000 to finish out the 2,800 square foot
office warehouse to meet their short term needs (occupied the property since December 2010).
In addition to new entry doors, windows, roll-up bay door, paint, and electrical improvements,
the City will be leaving a 2-ton a/c unit, expanded fence improvements, and an electronic gate.
The a/c unit, fence, and gate had an original cost to the City of$14,000.
While the WEDC did not charge the City for the use of the property, staff believes it is in the
best interest of the WEDC to compensate the City for a portion of the improvements. Staff
would even be comfortable with purchasing the a/c unit and fence improvements for cost based
upon the value to the WEDC and ability to lease out the property for an increased amount due to
the improvements being in place.
Board members discussed the balance between the City utilizing the property at no cost for
almost 2 years and the value added improvements which will remain in place. Also there were
costs associated with minimum standards that the City was required to achieve in order to
receive a Certificate of Occupancy which the Board did not believe was `reimbursable'.
Discussion also took place regarding the potential for the City to recoup their expenses upon
demolition of the facility in the future and whether material could be reused or sold for scrap.
President Fuller commented that any demolition company will factor those `scrap' materials into
their demolition bid with the WEDC paying a higher cost should everything of value be
removed.
President Fuller suggested that the WEDC compensate the City of Wylie in the amount of$5,000
for remaining improvements at 2806 F.M. 544. Based upon this payment and a subsequent
release, the WEDC will not need to consult with the City upon contracting for demolition. Staff
was directed to bring the issue back as an action item.
WEDC Invitational
Eighty-six individuals have confirmed their attendance at the WEDC Invitational on October 24th
at Woodbridge Golf Club. Board members were asked that should they have any additional
invitees, staff should be contacted by the end of the day on October 19tn
Regional Housing Starts
Fifteen homes were permitted in Wylie for September 2012. Sachse, Lavon and Murphy
permitted a combined twenty-nine homes over the same period.
No action is requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:09 a.m. in compliance with Section 551.001
et.seq. Texas Government Code to wit:
WEDC—Minutes
October 19, 2012
Page 4 of 4
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.
• Incentive Proposal—Project LAF.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:29 a.m. and took no action.
RECESS
The WEDC Board of Directors temporarily recessed the meeting to tour WEDC properties.
RECONVENE INTO OPEN MEETING—TOUR OF WEDC PROPERTIES
The WEDC Board of Directors reconvened into Open Meeting at 7:42 a.m. and announced the
presence of a quorum as they toured WEDC properties located at:
• 1405 Martinez Lane—Wylie, TX
• 25 Steel Road—Wylie, TX
• 2806 F.M. 544—Wylie, TX
Board Member Mitch Herzog left the meeting at 8:09 a.m.
ADJOURNMENT
WEDC Board members returned to 250 S. Highway 78 and with no further business, President
Fuller adjourned the WEDC Board meeting at 8:39 a.m.
Marvin Fuller, President
ATTEST:
Samuel Satterwhite, Director