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02-15-2013 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, February 15, 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 6:37 a.m. Board Members present were: Todd Winners, 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 January 18, 2013 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. President Fuller noted the date for the minutes submitted was January 18, 2012 and requested asked that the minutes be changed 2013. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the January 18, 2013 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 January 2013 WEDC Treasurer's Report. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the January 2013 WEDC Treasurer's Report. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. ITEM NO. 3 — Consider and act upon issues surrounding a FY 2012 — 2013 Budget Amendment. WEDC—Minutes February 15, 2013 Page 2 of 6 On December 5, 2012, WEDC staff received confirmation that loan settlement funds in the amount of $548,935 had been wired to the General Fund Account for the City of Wylie. The $548,935 was to combine the Hughes and Randack notes. To properly account for these funds, a Budget Amendment must be approved to increase revenue in an amount equal to the wire deposits ($548,935). The second Budget Amendment increases the expense account for Land in the amount of $395,000 for the purchase of the Randack property with the remainder ($153,935)placed into the Debt Service account to service the new Randack/Hughes note for the remainder of the fiscal year. Staff recommended that the WEDC Board of Directors approve Budget Amendment Requests to Increase Revenue ($548,935) and to Increase Expenditures ($606,195). MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to approve FY 2012 — 2013 Budget Amendments. The WEDC Board voted 4 —FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 4 — Discuss issues surrounding the use of WEDC owned property located at 2806 F.M. 544. Staff reported that there are negotiations to lease WEDC property located at 2806 F.M. 544 to a sign company. The primary use of the property is to store vehicles within the screened fence and materials used on a day to day basis within the existing metal structure. The proposed tenant has also proposed multiple alternative uses which will be outside of the screened fence. The current use being proposed is the sale of outdoor storage buildings similar to those at Home Depot. Almost any use would require that the area fronting FM 544 is paved which is a risky venture for any proposed tenant in that the typical WEDC lease specifies that the WEDC can terminate the lease for any reason with 120 days' notice. The lease also specifies that the tenant must first seek WEDC approval of any use fronting FM 544 and that the WEDC can deny a use for any reason. Staff asked for input from the WEDC Board of Directors as to what type of uses would be restricted by the Board in terms of aesthetics and additional structures. While the Board did not object to the lease of the property to the sign company, Mr. Herzog indicated that he would not agree to the idea of selling storage buildings on the front portion of the property. Mr. Fuller agreed that he would rather have clear open space that is kept neatly mowed. Mr. Yeager also agreed that the property appearance would be more acceptable if all proposed uses are kept inside the existing privacy fence. WEDC—Minutes February 15, 2013 Page 3 of 6 Being that this item was posted as discussion only; staff had no recommendation but believed there was adequate direction provided to move forward with the lease of WEDC property. ITEM NO. 5 — Discuss issues surrounding future development of City of Wylie property (19 acres) located near the intersection of Sanden Boulevard and F.M. 544. Staff noted that with the opening of Wylie Medical Plaza and the potential for additional development becoming greater, the process for master planning the City property north of Wylie Medical Plaza should begin. Staff would like to schedule a joint work session between the City Council and the WEDC Board of Directors to begin to develop a vision. Staff suggested that the work session be facilitated by the Planning Department and the WEDC staff and that it should cover: the need for an outside consultant and funding of the same, preferred uses, use of incentives, potential design themes, real estate broker involvement, and timing for marketing property, etc. Staff tentatively proposed April 23rd for the work session. Mr. Herzog and Mr. Yeager suggested that it would be more productive to have site plan suggestions to present to the City Council rather than approaching them with nothing. Mr. Winners said he knew of several site planners who would be able to provide the WEDC Board and Council with concepts of both industrial use and retail use. The Board requested that staff contact retail and industrial site planners and ask them to provide suggestions of the best use of the 19 acres that is owned by the City. Staff requested no other action. 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-funded parking improvements to downtown Wylie, Woodbridge Centre, B&B Theatre, Dallas Business Journal Book of Lists, and regional housing starts. Woodbridge Crossing The Sales Tax Reimbursement Report was presented which identified all sales taxes generated through November 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 October 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. $1,435,405 has been reimbursed to date with net receipts of$816,209 after reimbursements. 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 of the attachment. Ascend is WEDC—Minutes February 15, 2013 Page 4 of 6 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 full time employees and 25 temps. Staff also presented Ascend expansion plans and the impact on the existing lease. Loan Agreement with American National Bank Over the past several weeks, American National Bank has been requesting that the City of Wylie be party to the Loan Agreement for the $1.4 mm financing for Woodbridge Parkway. Aside from being an issue which came up after the City Council approved a resolution authorizing the WEDC to enter into debt and pledge sales tax receipts, the City preferred not to be a party to any agreement they are not required to be. The bond counsel for ANB wanted the City Council to commit by resolution to not issue more than $10 mm in bank qualified debt in 2013. As discussed in previous meetings, issuance in excess of$10 mm would jeopardize the tax exempt status of the loan and it would not be in the best interest of the City or ANB to do so. However, the City cannot foresee emergency situations which may occur and cannot commit to this limitation. With the support of ANB President Anita Collins and WEDC Counsel Randy Hullett, the ANB bond counsel is now settling for a letter written by the City Manager indicating that the City of Wylie reasonably anticipates that it and its subordinate entities will not issue tax exempt obligations in the aggregate amount of more than Ten Million Dollars ($10,000,000) during the current calendar year. With resolution of the above issue the WEDC will close on the loan on or about February 18th. Extension of Woodbridge Parkway Engineering plans are complete for the extension of Woodbridge Parkway. Mr. Wayne Rich has been presented with a title commitment and a temporary construction easement, but there is no agreement on compensation at this time. Should the right-of-way agent determine in the near future that there is an impasse in negotiations, formal right-of-entry documents will be processed so that the construction process can continue. The Agent has made an offer to the WISD for required right-of-way and it appears the terms are agreeable. Don Herzog is donating right-of-way which should be finalized by the end of February. The final parcel required is approximately 200 — 300 square feet from Mr. Timothy Johnson. The Agent is still attempting to make contact with Mr. Johnson. The project will be advertised for bid in mid-March with a construction time frame of 12 — 18 months. Downtown Parking Improvements Staff was unable to complete the draft lease prior to the Board meeting. A proposal from a local engineering firm came in at $14,000 with a majority of the fee dedicated to obtaining cost estimates from Oncor for utility relocation and bidding out two different designs for (1) alley access and (2) FBC parking lot access. Staff will seek a second engineering bid and also work WEDC—Minutes February 15, 2013 Page 5 of 6 on the parameters of the first proposal to determine what staff can accomplish in terms of research and interaction with Oncor which may reduce the engineering bid. Staff still believed that Board approval would be secured in March and Council approval would be requested on March 26t. Woodbridge Centre Seattle's Best Coffee is purchasing a 16,300 sq. ft. pad from Clark Street near the northeast corner of Woodbridge Centre. The concept will be designed primarily for drive-thru service as there are only 5 parking spaces. Regional Housing Starts Eighteen homes were permitted in Wylie for January 2013. Sachse, Lavon and Murphy permitted a combined forty-four homes over the same period. Staff provided the pending developments in Wylie within the housing report. No action was requested by staff for this item. EXECUTIVE SESSION The WEDC Board recessed into Closed Session at 7:36 a.m. 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). • Project Resurface • Project Detroit • Project ATR Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). • Consider the sale of WEDC property located at 2806 F.M. 544. RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:10 a.m. and took no action. WEDC—Minutes February 15, 2013 Page 6 of 6 ADJOURNMENT With no further business,President Fuller adjourned the WEDC Board meeting at 8:10 a.m. a/A Marvin Fuller,President ATTEST: Samuel Satterwhite,Director