03-07-2013 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Special Meeting
Thursday, March 7, 2013 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:
Todd Wintters, John Yeager, and Demond Dawkins.
WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris.
Assistant City Manager Jeff Butters 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 February 15, 2013 Minutes of the
Wylie Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
approve the February 15, 2013 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon issues surrounding the subordination of a loan
between the WEDC and Wylie Ice Cream Holdings to the Small Business Administration.
Staff reviewed with the Board that on March 61112012 the WEDC entered into a Promissory Note
with Wylie Ice Cream Holdings in the amount of $93,950 to assist with infrastructure
improvements for the Dairy Queen in Wylie. At the time the Note was filed of record with
Collin County there were four superior liens in place.
The WEDC's loan payment was subsequently assigned to the Texas Mezzanine fund with
payment made on November 13, 2012. The payoff of the Texas Mezzanine Fund effectively
moved the WEDC to a fourth lien position as originally contemplated by the WEDC in its
original negotiations.
WEDC—Minutes
March 7, 2013
Page 2 of 2
Staff continued that the Small Business Administration, via the Greater East Texas Certified
Development Corporation, is now paying off the Texas First Bank loan of$662,500. As Texas
First Bank is paid the WEDC moves into a superior lien to the SBA which was not the original
intent and more importantly not acceptable to the SBA. The Greater East Texas Certified
Development Corporation is requesting that the WEDC subordinate its lien to its note in the
amount of$683,000,with the added amount of$20,500 representing SBA fees.
Staff reviewed the title commitment for the new SBA loan to ensure that additional liens have
not been filed on the property. Further, Wylie Ice Cream Holdings is current on its loan
payments to the WEDC. Staff emphasized that the WEDC is subordinating its position by an
additional $20,500 (1.12% of total debt).
President Fuller stated that while he didn't object to the subordination, he would like to see the
current financial statements of Bobby Glass and Wylie Ice Cream Holdings.
Staff recommended that the WEDC Board of Directors a Subordination Agreement to the
Greater East Texas Certified Development Corporation in the amount of $683,000 and further
authorize WEDC President Marvin Fuller to execute said Agreement.
MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins
to approve an Agreement subordinating its loan to Wylie Ice Cream
Holdings, LLC to the Greater East Texas Certified Development
Corporation in the amount of $683,000 and authorize President Marvin
Fuller to execute said Agreement. The WEDC Board voted 4 —FOR and 0
—AGAINST in favor of the motion.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 7:08 a.m.
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Marvin Fuller, President
ATTEST:
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Samuel Satterwhite, Director