11-16-2012 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday,November 16, 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:
Demond Dawkins, Todd Wintters, John Yeager, and Mitch Herzog.
WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris.
Ex-officio member Mayor Eric Hogue was 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 November 2, 2012 Minutes of the
Wylie Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the November 2, 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 October 2012 WEDC Treasurer's
Report.
Staff noted that the Balance Sheet Subledger did not reflect the current interest rates for
American National Bank loans which were modified in October. Staff indicated that correct
subledgers would be provided within the November Treasurer's Report.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve the October 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 issues surrounding compensating the City of Wylie
for improvements made to WEDC property located at 2804 F.M. 544.
As staff reported at the October Board Meeting, the City of Wylie Parks Department has vacated
WEDC property located at 2804 F.M. 544. The City expended in excess of$30,000 to finish out
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November 16, 2012
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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.
While a typical tenant is not compensated after the fact for improvements made to lease property
or personal property left remaining, the improvements enhance the WEDC's ability to lease the
property in the future. More importantly, the remaining improvements such as the A/C unit,
windows, fencing, and electronic gate will impact demolition costs in the future as the
demolition contractor will reduce their bid based upon the salvageable materials.
Staff recommended that the WEDC Board of Directors approve payment to the City of Wylie in
the amount of $5,000 and authorize the WEDC Executive Director to enter into a Letter
Agreement with the City of Wylie releasing the WEDC from all obligations associated with
improvements made to, and personal property remaining, at WEDC property located at 2804
F.M. 544.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to
authorize staff to enter into a Letter Agreement with the City of Wylie and
to approve payment to the City of Wylie in the amount of $5,000. The
WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 4 - 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, Clark Street, Woodbridge Parkway extension, office signage, WEDC
December Board meeting, staff personal leave, and regional housing starts.
Woodbridge Crossing
Staff presented the Sales Tax Reimbursement Report which identified all sales taxes generated
through August 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. Woodbridge Crossing is eligible for a maximum $6
million in sales tax reimbursement through September 2021. $1,384,826 has been reimbursed to
date with net receipts of$787,450 after reimbursements.
Ascend Commercial Lease and Performance Agreement
Staff presented the Ascend Custom Extrusion Critical Dates Analysis and Performance
Agreement Monitoring Procedures. Payment #2 of the Economic Incentives has been funded
with Ascend meeting all Performance Obligations within Section A of the attachment. Ascend is
currently operating 3 shifts in extrusion and packing, 2 shifts in shipping, and 1 ten hour shift in
the paint line. There are currently 163 Ascend personnel and 25 temps.
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November 16, 2012
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Wylie Ice Cream Holdings
Payment was sent to the Texas Mezzanine Fund (TMF) on 11-13-12 from the WEDC which was
a result of Wylie Ice Cream Holdings assigning their loan proceeds from the WEDC to the TMF.
A deed of trust was filed with the County securing the WEDC note and the first payment will
begin on December 15, 2012.
It was reported by Owner Bobby Glass that on Saturday, November 3rd the Wylie DQ had the
highest single day receipts of any store internationally slightly edging the previous record held
by a DQ in Frisco.
WEDC Participation in Downtown Parking Improvements
Staff met with Kris Segrest and Charlie Busby of FBC Wylie to discuss publically funded
parking improvements on FBC property. To address concerns regarding continued public use of
the parking lot, a 25 year lease was discussed. FBC did express concern surrounding the use of
the parking lot for public gatherings which may be contrary to their beliefs. It was not
necessarily the use of the property for parking, but the use by a group to hold a rally or promote
their specific cause in some manner. Staff indicated that any lease could provide FBC with final
approval of any use outside of parking. It was also discussed that FBC would reimburse FBC
100% of costs associated with the parking improvements should the property be sold during the
term of the lease.
PM Realty
Staff reported that permanent power is to be energized on 11-16-12. PM Realty anticipates
receiving a certificate of occupancy on December 20, 2012. PM officials will be approaching
the City of Wylie in the next week to discuss a coordinated effort to meet that deadline in the
form of after hour and weekend inspections.
While Time Warner lines have been removed, approximately 5 poles remain at the intersection
of F.M. 544 and Sanden Boulevard. Oncor has been contacted and will remove the poles in the
near future. The WEDC was informed that Time Warner was not required to bore F.M. 544 with
the project cost being reduced from $24,000 to approximately $11,000. The WEDC will be
billed for this expense in January 2013.
Clarke Street
Clark Street has increased leasing activity and is encountering resistance from retailers to sign a
confidentiality waiver so that the WEDC can receive individual sales tax receipts from the
Comptroller. As reported in the past if a retail center has less than four businesses a
confidentiality waiver must be in place for the WEDC to receive sales tax receipts and thus
reimburse a percentage of those receipts as called for in the Sales Tax Reimbursement
Agreement with Clark Street. If a retail center has four or more businesses a `group' report can
be generated which totals the receipts generated but does not list those receipts by specific
business entity. Being that the Clark Street is encountering resistance and is not willing to push
the issue further, Clark Street is willing to wait until there are four businesses in place to start the
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November 16, 2012
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reimbursement process which may be shortly after Kroger opens based upon the recent activity.
Kroger still anticipates opening in February/March 2013.
Woodbridge Parkway Extension
Engineering plans are still at 95% with a final set expected on or about first week of December.
The contract for right-of-way services is still at the attorney's office with the City Engineer
following up on its status on 11-14-12. Right-of-way required for the project is 2 small clips,
WISD property, and approximately 2.5 acres from Mr. Wayne Rich. Should the City and Mr.
Rich not come to an agreement on price the condemnation process should take approximately 90
days. If the process does go to condemnation the City will request right of entry which is
typically granted.
Bids are anticipated to go out in January/February with groundbreaking in March/April.
Construction will take 12— 18 months with the bridge taking 9 months.
Staff has confirmed with ANB that an 18 month draw period will be available on the $1.4 mm
WEDC loan.
Office Signage
Within the WEDC and Chamber office lease there is no mention of office signage. The
Chamber and Miller Law Firm are interested in a monument sign. Lawyers Title has indicated
that they will pay up to 25% of the cost if the WEDC, Chamber, and Miller would like a
monument sign. Ms. Harris has obtained a quote of$8,000 exclusive of tax and fees. Staff is
seeking Board input as to whether the WEDC would be willing to participate in the cost of a
monument sign up to 25%. General discussion surrounding the issue resulted in the Board
directing staff to bring back more information for formal approval.
WEDC December Board Meeting
The Regular Board meeting for the WEDC is scheduled for December 21, 2012. Board
members indicated that they did not anticipate any conflicts with that date.
Staff Personal Leave
Staff reminded the Board that he will be taking off 2 - 4 weeks in December to address a medical
issue.
Regional Housing Starts
Twenty-eight homes were permitted in Wylie for October 2012. Sachse, Lavon and Murphy
permitted a combined thirty-three homes over the same period.
No action was requested by staff for this item.
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November 16, 2012
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EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:05 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.
• Incentive Proposal—Project LAF.
• Request for assistance—Project Cross Country
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:01 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:01 a.m.
Marvin Fuller,President
ATTEST:
Samuel Satterwhite,Director