11-02-2012 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday,November 2, 2012 7:00 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 7:00 a.m. Board Members present were:
Demond Dawkins and John Yeager. Mitch Herzog arrived at 7:05 a.m.
WEDC staff present was Executive Director Sam Satterwhite.
Ex-officio members Mindy Manson and Eric Hogue 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 October 19, 2012 Minutes of the
Wylie Economic Development Corporation (WEDC)Board of Directors Meeting.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve the October 19, 2012 Minutes of the Wylie Economic Development
Corporation. The WEDC Board voted 3 —FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 2—Consider and act upon WEDC Resolution 2012-01(R) approving a program,
the expenditure of funds, and a Loan Agreement between the WEDC and The American
National Bank of Texas in the amount of$548,935.
Staff reported that complications arose as the WEDC was about to close on the loan with The
American National Bank of Texas to finance the Randack purchase and the Hughes refinance.
While the Council had approved the expenditure of funds for the Randack purchase, Council
must specifically authorize the WEDC to enter into debt. Even though Council was briefed on
the fact that 100% financing was to be secured, a Council Resolution must be passed approving
the same.
The form of approval for EDC's is not as specific, as the WEDC Board approved the expenditure
of funds and the associated debt within its minutes. However, a WEDC Resolution is a more
formal document that will be submitted to Council as it considers approval of WEDC financing
WEDC —Minutes
November 2, 2012
Page 2 of 3
on November 13, 2012. Therefore staff submitted WEDC Resolution 2012-01(R) for the
Board's consideration.
Staff recommended that the WEDC Board of Directors approve WEDC Resolution 2012-01(R)
and recommend to the Wylie City Council approval of WEDC debt associated with the purchase
of properties on Cooper Drive and refinancing debt for properties purchased on Industrial Court.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve WEDC Resolution 2012-01(R) and recommend to the Wylie City
Council approval of WEDC debt associated with the purchase of properties
on Cooper Drive and refinancing debt for properties purchased on Industrial
Court. The WEDC Board voted 4 —FOR and 0 — AGAINST in favor of the
motion.
ITEM NO. 3—Consider and act upon WEDC Resolution 2012-02(R) approving a program,
the expenditure of funds, and a Loan Agreement between the WEDC and The American
National Bank of Texas in the amount of$1,400,000.
Staff reviewed that as with the last Action Item, Council must approve the $1.4 mm in WEDC
debt associated with the extension of Woodbridge Parkway via a formal Resolution. However,
another unexpected delay has presented itself. Staff was informed that in order to qualify for the
tax exempt rate, the City (and in this case the WEDC jointly) cannot issue more than$10 million
in "Bank-Qualified" debt in a calendar year without jeopardizing the tax exempt status of City
bonds. To date within 2012 the City has issued $9.6 mm in"Bank Qualified" debt.
Being that WEDC funding will not be required until the first quarter of 2013, the WEDC will not
be required to execute Loan Documents until January 2013 which will allow the $10 mm cap to
be reset and the WEDC loan will qualify as tax exempt. Council approval of WEDC debt can
take place as early as January 8, 2013; within said approval the Council will represent that the
City has not issued in excess of$10 mm in"Bank Qualified" debt. There is also a provision that
financing not be approved more than 60 days in advance of Loan Agreement approval so the
WEDC will need approve its Resolution in December 2012 to allow for any further delays within
the 60 day window. Therefore, staff recommended that the WEDC Board of Directors table
consideration of WEDC Resolution 2012-02(R) until December 21, 2012, or the first Board
meeting held in December.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to table
consideration of WEDC Resolution 2012-02(R) until December 21, 2012, or
the first Board meeting held in December. The WEDC Board voted 4 —
FOR and 0—AGAINST in favor of the motion.
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:14 a.m. in compliance with Section 551.001
et.seq. Texas Government Code to wit:
WEDC—Minutes
November 2, 2012
Page 3 of 3
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.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:22 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 7:22 a.m.
.Z4 . 2
Marvin Fuller,President
ATTEST:
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Samuel Satterwhite,Director