08-11-1992 (WEDC) Agenda Packet DATE POSTED: 08/07/92
TIME POSTED: 3 .`30 rh.
MEETING
DEVELOPMENT CORPORATION OF WYLIE, INC.
TUESDAY, AUGUST 11 , 1992
4:00 PM
2000 HIGHWAY 78 NORTH, WYLIE, TEXAS
CALL TO ORDER
ORDER OF PAGE
BUSINESS NUMBER BUSINESS
1 Discuss and Consider Approval of Minutes of
July 14, 1992 Regular Meeting of the Development
Corporation of Wylie, Inc.
2 Discuss and Consider Treasurer's Report
3 Oath of Office for New Member
4 Report from Executive Director
a. Update on Physician's Regional Hospital
b. Update on Master Brake Service, Inc.
c. Update on Development of New Industrial Site
5 Recess Open Meeting
6 Convene to Workshop to Discuss Goals and Objectives
7 Reconvene Regular Meeting
8 Citizen Participation
.9 In Accordance With the Open Meeting Act, the
Development Corporation will hear comments of
Public Interest From Residents of the City of
Wylie. Any discussion must be limited to
placing the item on a future agenda for further
Consideration.
10 Wylie Residents Wishing to Speak Should Limit
Remarks to a Maximum of Five (5) Minutes
11 Adjourn
NOTICE OF MEETING
Notice is hereby given that the Economic Development Corporation Board of
Wylie will meet at 4:00 P.M. on the //e-le-' day of ae_A-5(_A___<.1E , 1992
at 2000 Highway 78, North, in the City of Wylie, Texas, for the purpose
of considering the above agenda.
_fr_Aat_4(9card77Jor/s,)city Secretary
POSTED THIS THE 7e( DAY OF 4A-eitcae , 1992, AT3:30,M.
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DIRECTORS OF DEVELOPMENT CORPORATION OF WYLIE, INC.
MINUTES
July 14 , 1992
The Directors of the Development Corporation of Wylie, Inc. met
in regular session at 4 :00 P.M. on Tuesday, July 14, 1992 in the
Development Corporation's office at the Municipal Complex. A
quorum was present and notice of the meeting had been posted in
the time and manner required by law. Those present were Jim
Smith, President; James Blakey, Vice President and member John
Tobin. Executive Director Charlie Womack, Mayor John Akin and
City Manager Steve Norwood were also present. In attendance from
the City Staff was Anita Collins.
Jim Smith called the meeting to order.
DISCUSS AND CONSIDER APPROVAL OF MINUTES OF JUNE 14, 1992 REGULAR
MEETING : James Blakey made a motion that the minutes be
approved without any corrections. John Tobin seconded the
motion. The motion carried with all in favor.
DISCUSS AND CONSIDER APPROVAL OF TREASURER'S REPORT: Jim Smith
read the treasurer's report as prepared by Bart Peddicord, former
Secretary-Treasurer and member of the board. The report stated
the expenditures and revenues of the Development Corporation of
Wylie, Inc. for the month of June. Mr. Smith reported the
current balance to be $325,357.71 , sales tax received in June was
$13 ,529.42, interest received was $873 .65 and expenditures in
the amount of $4,097.04 . The expenditures were as follows:
Rent - $50.00, C. C. Womack - $849.50 for salary, $174. 79 -
Oak Ridge Country Club reception, $22.75 for office supplies and
$3 ,000 to the Chamber of Commerce for advertising. A motion was
made by John Tobin to approve the report and was seconded by John
Yeager. The motion carried with all in favor.
OATH OF OFFICE FOR NEW MEMBER: This item not carried out as new
member was not present.
DISCUSS AND CONSIDER APPOINTMENT OF SECRETARY/TREASURER: John
Tobin nominated John Yeager to be the new Secretary/Treasurer,
James Blakey seconded the nomination. The vote carried with all
in favor.
DISCUSS AND CONSIDER PROPOSAL FROM MASTER BRAKE SERVICE: The
Executive Director presented a proposal from Master Brake
Systems, Inc. (copy of proposal attached at end of minutes) .
Master Brake proposes that the Development Corporation purchase
the vacant Tarrant plumbing building in Wylie at a price not to
exceed $150,000 and advance their company a "cash grant" of
$30 ,000 to be spent for renovation purposes. Master Brake would
then execute a five year lease with an option to purchase the
property at a pre-arranged or negotiated sales price. A motion
was made by James Blakey authorizing the Executive Director to
proceed with an appraisal of the property. The motion was
seconded by John Tobin. The motion carried with all in favor.
DISCUSS AND CONSIDER PROPOSAL FROM PHYSICIANS REGIONAL HOSPITAL:
Physicians Regional Hospital has requested assistance (copy of
request attached) from the Development Corporation. They are
asking the Development Corporation to place a $120,000 CD into
Provident Bank Wylie to collateralize a $120,000 loan to the
Hospital to fund the development of a new Geriatric Psychiatric
Unit at the Hospital and working capital deficits during
development of this Unit.
REPORT FROM EXECUTIVE DIRECTOR: Charlie Womack gave his monthly
report (copy attached) and an update on the prospects pending at
this time. They are Metrocast, Inc, Perma Tune, Inc, Golden
Pickle, and Master Brake Systems, Inc.
FINALIZE SEMI-ANNUAL REPORT TO CITY COUNCIL: The board members
were given a draft of the report (copy attached to minutes)
prepared by Jim Smith. A motion was made by James Blakey to
approve the report for presentation to the City Council
RECESS OPEN MEETING:
CONVENE TO WORKSHOP TO DISCUSS GOALS AND OBJECTIVES: No
discussion was held on this item.
RECONVENE REGULAR MEETING:
CITIZEN PARTICIPATION: No citizen participation
ADJOURN: There being no other matters of business for
discussion, a motion was made by James Blakey and seconded by
John Tobin to adjourn this meeting. The motion carried with all
in favor.
Minutes of the July 14 , 1992, regular meeting approved by the
Board of Directors at its meeting on August 11, 1992 .
Jim Smith, President
PREPARED BY :
l
Anita Collins
Master Brake Systems, Inc.
P.O. BOX 29789 2343 N RRELL RD.SUITE 305 DALLAS,TX 75229 214/2410164
Board of Directors
Development Corporation of Wylie, Inc.
P.O. Box 428
Wylie, Texas 75098
Ref.: Master Brake Systems, Inc.
Gentlemen,
The above referenced company is a Texas Corporation domiciled in
Dallas. Outstanding common stock is owned by Bill Barnett, Don Lewis and
Charles Chessier. Lewis and Chessier own and operate Accurate Automatic
Manufacturing Corp. 703 Business Way, Wylie,Texas. The company generates
sales in excess of$2,000,000.00 and has a payroll of some forty-one (41)
employees.
Some three years ago, Mr. Barnett developed a revolutionary vacuum
over hydraulic brake system for heavy duty trailers that are used in the trucking
industry. The three investors decided to organize the above referenced company
to manufacture and market the product nationwide through established
distributors. Sales have exceeded all projections and management continues to
be optimistic that this trend will continue as efforts are increased to penetrate an
additional share of this market.
The first year sales,in 1989-1990, were$600,000.00 with an employee
work force of five (5). The 1990-1991 year sales increased to $1,500,000.00 with
an increase in work force to eleven (11) employees. The 1991-1992 fiscal year
ended in June 1992 yielding sales of$1,900,000.00 and an increase of work force
to fifteen (15). Sales forecasts for the 1992-1993 year are$2,250,000.00. When the
company was organized, a decision was made to rent a 7000 sq. ft. industrial
building in Dallas. As sales increase we have been required to increase our
current work force to fifteen (15) full or part time employees. -This increase has
taxed our ability to meet expanded sales growth and our location will not permit
acquiring or enlarging our facilities to meet future sales projections. For this
reason, we have decided a move to larger facilities would be in our best interest.
We believe the vacant Tarrant Plumbing building in Wylie, with a few
modifications, would be adequate to meet our immediate and future needs. The
brick and metal building, located on a two(2) acre site,contains 2000 sq. ft. of
office space and the remaining 8000 sq. ft. is non-partitioned open work area. A
wooden decked storage area has been constructed over the office area. A large
concrete paved parking area is provided in front of the building. The remainder
of the property is enclosed by a four foot chain link fence. Jane Henry Realtors,
Inc. has the property listed for $210,000.00,but we believe an offer of
approximately $150,00.00 may receive a favorable response from the current
owner.
The office space needs a new coat of paint. Two additional offices can be
added by partitioning a former showroom. A new electrical service must be
installed to operate heavy duty machines and equipment. An air-conditioned
assembly area of 1800 sq. ft. must be constructed within the open space. We
have received an initial bid from a local contractor to complete the
improvements for a total cost of$33,000.00.
We request the Development Corporation to consider the purchase of the
Tarrant Plumbing building for a price not to exceed$150,000.00 and then
advance our company a "cash grant" of$30,000.00 to be spent for renovation
purposes. Our corporation would then execute a five year lease with an option
to purchase the property at a pre-arranged or negotiated sales price.
Your consideration of our request will be appreciated and we shall be
happy to furnish financial or other required information,should our application
receive a favorable response.
Sincerely,
Bill Barnett- President
111
1likiNt° PH
YSICIANS
REGIONAL HOSPITAL
801 SOUTH HWY. 78 • P.O. BOX 1500 • WYLIE, TEXAS 75098 • (214) 442-5414
June 23, 1992
HAND DELIVERED
Charlie Womack
Wylie Economic Development Corporation
201 N. Ballard
Wylie, Texas 75098
RE: HOSPITAL LOAN REQUEST
Dear Charlie:
As promised, I have enclosed a copy of the loan guarantee proposal
for Physicians Regional Hospital as you requested in our last meeting.
Again, time is of the essence on this loan request. _
If you have any questions- and/or need any additional information, please
give me or Larry a call at 442-5414, ext. 300 or 214.
Your consideration of this request is greatly appreciated.
Respectfully yours,
Mark W. Liston
Executive Vice President & C.F.O.
Enclosure
cc: Larry Wedekind
Peggy McCollum
Steve Miller
PHYSICIANS REGIONAL HOSPITAL
LOAN GUARANTEE PROPOSAL
TO
WYLIE ECONO DEVELOPMENT CORPORATION
REQUEST: The Economic Development Corporation to place a $120, 000
CD into Provident Bank Wylie to collateralize a $120, 000 Loan to
the Hospital to fund the development of a new Geriatric Psychiatric
Unit at the Hospital and working capital deficits during
development of this Unit. This Unit provides 21 new jobs to the
area and allows the Hospital to continue its financial viability
and delivery of emergency care to all citizens of the area,
regardless of ability to pay.
BACKGROUND AND HISTORY: Physicians Regional Hospital ("Hospital")
was originally constructed and opened by American Healthcare
Management, Inc. (AHM) in July 1983 as a 37 bed acute-care medical
and surgical hospital . As a result of poor management and a
negative community image, the Hospital experienced significant
financial losses through 1986.
Finally i. `tovember 1986, in an attempt to stem these losses, AHM
asked Mr. awrence J. Wedekind, a noted local hospital turnaround
specialist, to consult and advise AHM ?: elative to the Hospital.
After approximately six (6) months of consultation, AHM entered
into a 5-year management contract with Mr. Wedekind and his
company, Paragon Healthcare Systems, Inc. (Paragon) to operate and
manage the hospital .
Paragon successfully recruited topnotch physicians in several
specialties, developed new services needed in the area, implemented
cost controls and quality assurance programs, and forged
cooperative relationships with the existing physicians and
community organizations and businesses. The Hospital began to
experience positive cash flow as a result, most of which accrued to
the benefit of its owner, AHM, instead of the Hospital itself.
Despite the financial improvement at the Hospital in late 1987 AHM
filed Chapter 11 bankruptcy reorganization due to other problems in
their hospital network. This further eroded investment by AHM of
positive cash back into the Hospital. Frustrated with AHM' s drain
on positive cash flow, Mr. Wedekind then successfully negotiated a
Lease Purchase of the Hospital. This lease purchase includes an
exclusive purchase option, a ten (10) year lease of the land,
building and major equipment and the purchase . of the Accounts
Receivable (A/R) , supplies, minor equipment, good will, and cash-
on-hand at the time of such purchase. This Lease Purchase was
consummated on May 1, 1989 . As a result, Paragon has a 55%
ownership position in the Hospital and is the General controlling
Partner. Mr. Wedekind owns the majority interest in Paragon and
other minority interests are held by the following individuals:
Mark Liston, Peggy McCollum, Stuart Kalb, Kathie Sukkar. The 45%
remaining Limited Partnership interests are held by three (3)
couple of national adolescent psychiatric providers . Over five
(5) freestanding Psych hospitals have closed in the Dallas
area alone in the first 6 months of this year.
4 . The Emergency Department has grown steadily over the last 3
years due to quality of care enhancements put in place between
1987 and 1989 and the improved image that has occurred.
5 . The Surgery Department is now equipped with state of the art
orthopedic, endoscopic, gynecological, ophthalmic and
general/vascular instrumentation as the result of the
recruitment of several extremely capable surgeons from Plano
in these specialties and continued investment of positive cash
in these areas. Surgical volume has grown steadily as a
result.
6 . Last, but not least, our patients consistently receive
personalized loving care from the staff and word of mouth
advertising has been very strong as a result, particularly in
the last 1 1/2 years. Due to the harmonious working
environment, our employee turnover remains very low.
Unfortunately, as mentioned in #3 above, in January 1992 the census
in the adolescent psychiatric unit stared to decline. It became
apparent that the future demand and reimbursement for inpatient
psychiatry would be tenuous at best due to the industry troubles
spawned by a couple unscrupulous national companies. However,
Paragon fortunately had been planning the development of geriatric
psychiatry services since early 1991 to replace adolescent
psychiatry due to the growing need for such services in our service
area. The closure of the adolescent unit was therefore planned very
carefully to coincide as closely as possible with the opening of
the Geriatric unit, although it was closed one (1) month earlier
than expected due to the industry problems that occurred. As
stated earlier, initial conception of the Geriatric Psychiatry unit
occurred in early 1991 due to the recurring demand for such a unit.
Development of the Geriatric Psychiatry unit was started formally
in October 1991 and was finished in May 1992 . After several
mandated state licensing and clinical quality oriented surveys, the
unit was opened on June 8, 1992 , despite not having sufficient
capital to fully pay for the expansion or the working capital
needed during the first 3 months of operations of the Unit.
Relative to this capital need, Paragon had hoped to obtain an
expansion and working capital loan from Equitable Bank Dallas to
finance the Geriatric Psychiatry unit and applied for such a loan
in early 1991. Equitable Bank approved the hospital ' s loan request
conditioned upon a loan guarantee from either SBA or FMHA
government loan guarantee programs . After initial research and
application to the SBA, it was determined conclusively that the
Hospital didn't quality for an SBA loan guarantee since its gross
revenue was too high. Therefore, a loan guarantee from FMHA was
applied for by Equitable and the Hospital. Initial application to
FMHA was made in January 1991.
Equitable and FMHA officials believed and represented to Paragon
that the loan would be approved and funded well before the end of
1991. It seemed that there was no question that the Hospital would
qualify for the FMHA loan guarantee program. Much to our dismay,
this $650 , 000 loan has still not received formal approval from
FMHA, despite approvals from Equitable, the regional FMHA office,
OSHA, and the North Texas Board of Governors. Approval and funding
is still expected,- but will probably not occur in time to solve the
Hospital ' s immediate working capital needs.
The local banks are also unable to lend any additional monies to
the Hospital without additional collateral in the form of cash or
equivalents. Therefore, the Hospital is now in a position where it
has been forced to use operational cash flow to fund the Geriatric
Psychiatry expansion and renovation project. This, combined with
the overall Hospital negative cash flows that have occurred since
April 1992 because of the closure of Adolescent Psychiatry Unit has
placed the Hospital in temporary dire financial straits. It is
expected that negative cash flows will continue through July 31,
1992 due to the fact that the adolescent psychiatry service was
ceased in March 1992 and collections from the geriatric unit will
not start until the first part of August 1992 .
In summary, the Hospital has already experienced 2 1/2 months of
negative cash flow and will experience another 1 1/2 - 2 months
until the geriatric unit revenues make up the difference. As shown
in the attached Forecasted Cash Flow analysis (Exhibit B) , the
hospital started the month of June with a negative $28 , 000 account
balance due to the last 2 1/2 months of negative cash flow and this
situation will worsen to approximately a negative $145, 000 by the
end of July. Beginning in August, cash flows will again become
positive due to the geriatric psychiatric unit collections and this
negative account balance will be whittled down until it again
becomes positive in November 1992 .
NEED:
The Hospital therefore needs a short-term cash infusion immediately
of at least $120, 000 in order to fund the negative cash flows that
have already occurred and the continuing working capital needs
through July 1992 .
As seen by the Forecasted Cash Flow analysis, a $120, 000 loan can
easily be repaid with interest by December 1992 . Such a loan can
also be paid back early if the Equitable Bank/FMHA loan
materializes prior to December 1992 .
ALTERNATIVE IMPACT:
The alternative to not obtaining the $120, 000 expansion and working
capital is to close the geriatric unit immediately. This would
cause the immediate loss of approximately 21 new employees (jobs)
relating to the new geriatric unit and would place the entire
Hospital in immediate jeopardy due to the amount of cash ($45, 000)
already expended on the renovation project necessary to make the
unit operational. The Hospital's medical and surgical operations
alone are simply not strong enough at this time to support the high
levels of unreimbursed care and overhead necessary to provide
unrestricted access to Hospital/Emergency care in our community.
In other words, in addition to geriatric unit closure, closure of
the Hospital ' s Emergency department is also quite likely if the
Hospital does not receive these monies soon. Since closure of the
emergency department is often tantamount to closing the hospital
and will definitely increase morbidity and mortality in our area,
this is not a viable alternative for the area. The loss of
approximately 110 jobs are ultimately at stake for the community
and the loss of ad valorem taxes and sales tax revenues are also at
state. This equates to a direct economic loss to the area of
approximately $3 . 5 million per year.
PROPOSED SOLUTION:
Provident Bank Wylie will provide the additional $120, 000 as an
extension of our existing loan or simply a new loan on the
condition that a CD be placed as collateral. The Hospital proposes
that the Economic Development Corporation place $120, 000 of its
funds in a 6 month CD collateralizing the $120, 000 loan needed by
the Hospital. This loan will be a six month fully amortizing loan
so that the collateralized portion of the CD decreases each month
until the loan is fully paid off by the end of the 6th month.
Timing is critical . Closing of this transaction is requested by
June 30, 1992 . Provident Bank Wylie has already approved several
large checks that posted to the Hospital ' s account without the
account balance to fund these checks. The bank' s patience is
limited. Your immediate consideration is appreciated.
Sincerely, - -
Lawrence J. Wedekind
Chief Executive Officer
LJW/sa
Physicians Regional Hospital Community Support - 89,90,91
Cost to
Schools: •
PRH
Wylie Independent School District
Elementary Schools
Birmingham:
Annual Health Fair in Auditorium
Health Screenings and Handouts 89, 90,91 $750
Halloween safety bags 1989, 90,91 $420
Special Students Tour of Hospital $50
Hartman:
Career Day 90 Provide nurse, lab tech, physical therapist $480
Hospital Day 1990 (supplies) $100
Halloween safety bags 1989,90,91 $345
Drug Awareness Week- psychologists and therapists 90,91 $400
Akin
Halloween safety bags 1989,90,91 $140
Middle School
Medical Explorers Program $100
Highschool
Project Care Drug Testing 90, 91 $6,650
Medical Explorers Program 90,91 $1,700
Purchased Grand Champion Steer(FFA) 1990 $2,475
Purchased Steer and Lamb (FFA) 1991 $1,900
Purchased Lamb (FFA) 1992 $170
Health Program Scholarship-S600/yr
Wylie Band Boosters -donations, 89,90,91 $45
Wylie Football Team -cups donated;91_ $190
Wylie Football Programs- ads, 90,91 - $315 •
Comunity Independent School District-yearbook ad, 91 •
$50
Wylie Christian Academy
Year Book ads -89,90,91 . $150
Auction donations - 89,90,91 $1,750
Preschools
Free Continuing Education Courses for Teachers 1991 $350
Halloween Safety Bags 1989,90,91 $315
Wylie Chamber of Commerce and area Businesses
Chamber Annual Dues - 89.90.91 $900
Support of other Chamber Functions 89,90,91 $1,965 •
TI Health Fair- 90, Nurse, giveaways $200. "
Chamber Parade 89,90,91 - Floats $3,000
Hillcrest Nursing Home Pagent Donation -91 $50
Business Expo at Birmingham Elementary School-91 $300
Chamber Board Member-92
Provide Physical Therapist to area businesses for education S500
Employee Time to attend Chamber Ribbon Cuttings, etc.-89,90,91 53,000
Wylie News and Wylie Sentinel Advertising-89,90,91 $3,300
Member of Economic Development Committee 90,91 51,000
Member of Partnership in Development-92
Community Organizations
Girl Scouts, Camp Fire Girls, tours, etc. 89,90,91 S1,000
Wylie Womens League 89,90.91.92
Baked Food Sales $80
Easter Egg Hunt (Cabbage Patch) $300
Member since 89
PRH Auxiliary provided refrestments at Tour of Homes,91 S 100
Wylie Rotary Club
Charter Member and financial supporter, 89,90,91 S2,160
Christian Care Center
Donate Space 89,90,91 $18,000
Provide garage sale space and signs $200
Discounted Mammograms for those recommended via CCCC $1,000
Promote Health and Wellness in the Community
Annual Health Fairs, at PRH 90,91 $4,000
Provide Meeting Space for TOPS &WT Watchers 89,90,91 S 1,200
AARP Lectures and support, Wylie, Copeville-92 $300
Wylie Volunteer Fire Dept.
1) 2 employees are volunteer firefighters and are paid
when fighting fires during working hours, 89,90,91,92 $5,000
2) ads in annual function program 89,90 $200
Parker Volunteer Fire Department- ads in publications $100
Brochures to educate public about gallbladder disease,
mammograms, and availability of physicians, 90,91 S20,000
Newsletter- with health education articles 90.91 $15,500
First Aid Station at McKinney's Forever Free -91 $1,400 -
Coordinate Wadley Blood Drives 4 times/yr, 90.91 $1,000
- $104,600
Physician Recruitment
Includes Recruitment Fee, Guarantee, Renovation, Free Rent $368,500
Gilbard
IHN
Birdsong
Adams
'nt
Dental Clinic
Haskell
Texas Heart Group
Texas Surgery Group
Schacherer& Frazee
Kay, et. al
Derbonne
•
•
Total $473,100
PHYSICIANS REGIONAL HOSPITAL
PHYSICIAN RECRUITMENT
05/31/89 - 05/31/92
•
Recruitment Free/Disc. Office Office Moving
Physician Fee Guarantee Rent Renovation Staffing Advertising Expenses T-
Or. Propst 8,000 4.800 2.000 6,000 500 21
Dr. Gilbard 18.000 9.600 2,000 2,000 3,000 34
IHH 4.000 7,000 11
Or. Birdsong 18.000 70.800 * 14.248 9.400 6,000 118
Or. Adams 24,000 10.580 17,116 300 51
Dr. Naini 6.700 1 .000 7.000 300 15
Or. Scriefer 1 ,100 3,000 4
Dr. Frazee 7.800 5,000 1 ,000 13
Dr. Derbonne 18,000 58.345 * 10.500 1 .500 4.000 92
Multi-Specialty Suite 3.000 400 3
Dr. Kay 2.500 2
Total S54.000 S143.845 572.048 S41 ,480 530,11.6 S17,000 S10,000 S368
* Includes moving expenses
4
.. f
FILE REF: \CASH\92PROJOS Page CF-1
PHYSICIANS REGIONAL HOSPITAL
Forecasted Cash Flow
1992
6/92 7/92 8/92 9/92 10/92 11/92 12/92 TOTAL
CASH BALANCE AT BEGINNING OF MONTH - ($28,052) ($91,733) ($144,863) ($99,159) ($63,759) ($24,045) $14,125 ($28,052)
FORECASTED CASH RECEIPTS:
Med/Surg I/P and 0/P and Other Income (a) - 556,000 539,206 648,305 549,201 546,555 547,011 553,002 3,843,260
Geriatric Psych Program Receipts (b) 0 0 122,670 122,670 122,670 122,870 122,670 614,350
TOTAL FORECASTED CASH RECEIPTS 556,000 539,206 671,175 672,071 671,425 669,881 675,872 4,457,630
FORECASTED CASH DISBURSEMENTS:
Hospital Payroll (including taxes) (c) 312,440 249,960 224,960 .224,960 220,000 220.000 220,000 1,672,320
Accounts Payable 197,000 204,000 216,000 230,000 230,000 230,000 230,000 1,539,000
Geriatric Psych Capital/Renovation Costs (b) 6,000 ,0 0 0 0 0 0 6,000
Geriatric Psych Operating Costs (b) 0 , 28,935 57,870 57,670 57,670 57,670 57,070 316,286
Capital Purchases 4,000 4,000 4,000 3,000 3,000 3,000 3,000 24,000
Debt/Lease Payments (d) 100,241 105,241 120,841 120,841 120,641 120,641 98,241 787,087
TOTAL CASH DISBURSEMENTS 621,661 592,136 625,671 636,671 631,711 631,711 609,111 4,346,092
CASH BALANCE AT END OF MONTH - ($91,733) ($144,663) ($99,159) (363,759) ($24,045) $14,125 $60,666 900,866
CASH BALANCE AT END OF MONTH (with $120,000 loan) $28,267 ($24,663) $20,641 $56,241 $95,955 $134,125 3200,686 $200,686
• ASSUMPTIONS -
i
(a) - Med/surg average daily census is 12.5 for the forecast period with historical
patient mix and net revenue trends.
(b) - 12-bed geriatric pysh unit becomes exempted by Medicare on 7/1/92 with reimbursement
beginning in 0/92. Total costs to renovate unit approximate■ $45,000. The majority
of these costs were funded in April and May of the current year out of operational
cash flow.
(o) - Three (3) payroll periods occur during the month 6/92.
(d) - Refer to page CF-2 for detail of debt/lease payments.
FILE REF: \CASH\82PROJ05 Page CF-2
PHYSICIANS REGIONAL HOSPITAL
Forecasted Dobt/Leas. Service
1992
Description 6/92 7/92 8/92 9/92 10/92 11/92 12/92 TOTAL
American Nat. Bank - Term Loans (vans) $1,163 $1,163 $1.163 $1,163 91.163 $1,163 $1,163 $6,141
Provident Bank - Equipment Loan 950 950 950 950 950 950 950 6.650
Provident Bank - Term Loan ($450,000) 9,800 9,800 9,800 9,800 9,600 9,800 9,600 68,600.
HCH, Inc. - Lease (.) 55,795 60,795 00,795 60,795 60,795 60,785 00,795 420,565
NCH, Inc. - Purchase Note 5,390 5,390 5,390 5,390 5,390 5,390 5,390 37,730
Equitable Bank - Term Loan 7,000 7,000 7,000 7.000 7,000 7.000 0 42,000
Property Taxes 20,143 20,143 20,143 , 20,143 20,143 20,143 20,143 141,001
Medicare Cost Report Repayment 0 0 15,600 15,600 15,600 15,000 0 62,400
TOTALS $100,241 $105,241 $120,841 8120,841 9120,641 9120,541 $96,241 $787,087
s sees ex-msssssse srsasscasss sssssasaaas cares
(a) - HCH, Inc. is the lessor on the hospital and related assets. ,
i
•
SUMMARY OF JUNE ACTIVITIES
The summer business doldrums were active during June
because only one prospect indicated any interest in locating
a business in Wylie. Some of the previous prospects are
still interested in a move but negotiations continue to be
erratic due to vacations and other summer time detractions.
Final preparations to end my tenure with my former
employer consumed more time than I had anticipated. This
delay prevented some of my business development plans and
activities.
Most previous prospect leads were generated through the
Wylie Chamber of Commerce office. Not one prospect was
referred to this office during June. This may be due to the
Chamber's economy move to reduce the director's hours to a
three day work week.
I did attend an all-day training session conducted by
the Economic Development Training Division of the Texas
A & M University System. The meeting was arranged by the
City of Garland/Economic Development Group and was
restricted to twenty participants. Several cities in the
Metroplex and surrounding area were represented by someone
interested in business development within their area. It
appears that the current main focus with most cities is the
retention of jobs instead of trying to create new ones.
Competition for new business has become so intense that many
cities are questioning the profitability of what is required
to attract a major employer.
Two local small businesses contacted the office about
financial assistance. Visits were made to each business and
a discussion was conducted with each owner. Both companies
are experiencing the same problem. Slow accounts receivable
repayments have liquidated their available working capital
and they can no longer purchase sufficient inventory to meet
their production needs. Successful loan negotiations with a
local bank provided sufficient funds for one of the
companies, but the remaining business has a very difficult
Federal Income Tax problem. Dialogue with the owner and
local bank will continue in an attempt to find a
satisfactory solution to this very serious financial
problem.
THe owners of three vacant properties were visited to
discuss a telephone inquiry from a company that might
consider a move to Wylie provided a suitable building could
be leased. The individuals visited were: Don Hughes, Bill
Green and Michael Fornero, owner of the Johnston Building.
Each building would need extensive renovations to meet the
needs of the prospect. There has been no strong indication
from either the owners or the prospect to continue
negotiations.
On June 14th we visited with Gary B. Pittard and Bill
Johnson. Pittard is Senior Territory Manager, Southwest
Distribution District Office for Exxon Oil in Tyler and
Johnson owns and operates an Exxon Oil Distributorship in
Corsicana. They were interested in the possible population
growth of Wylie and the possible date when construction will
be completed on Highways 78 and 544 . They also asked about
land values near the intersection of 78 and 544. They
asked for the name of the owner of the land adjacent to the
Eckerd Building and this information was supplied as
requested.
Jim Smith and I traveled to Arlington to view and
discuss the video being produced by Michael Brown
Productions. Some changes were recommended in the audio
verbiage and a request was made for some additional footage
to the visual portion of the film. Management agreed to
consider our recommendations and would attempt to make as
many changes as possible. . The finished product should be
available for showing by the end of July.
PROSPECT REPORT
Metrocast, Inc.
Very little progress to report on the relocation of
this company from Garland to Wylie. Mr. John Bennett, TU
Electric, has been interested in moving this company out of
Garland. He has driven the principals of the company to
Wylie to inspect the Cordova Marble Building. Management
was impressed with the building and made an appointment with
the realtor to discuss a possible sales contract. The
interested party failed to keep the appointment. Attempts
have been made to reschedule the appointment. In the
meanwhile the local bank has made an inquiry regarding the
loan status with the lender. Apparently there has been no
recent negotiations between the interested parties. If
there is no evidence of any progress being made, by the end
of the month, I will attempt to visit with the owner to
evaluate the possibility of moving this company to Wylie.
Perma Tune . Inc.
No progress or correspondence has been received from
this company since we declined a cash grant request for
R & D Aeronautical Engineering Co. Mr. Harold Smith owner
of R & D Company was very upset and vocal when informed of
his request being denied. From current reports he continues
to be very vocal with the decision and very little help is
expected from Smith in our attempts to move this company to
Wylie.
Golden Pickle
We continue to visit with Mr. Steve Collett regarding
his negotiations with the City of Garland. He has offered
to make some changes in his building plans but has received
no response from the City authorities. He promised to keep
Wylie in his plans should he receive no favorable response
from Garland.
Master Brake Systems . Inc.
Negotiations have continued most of this month. A
personal visit with Mr. Don Lewis was made to inspect the
Tarrant Plumbing Building as a possible relocation site. A
subsequent visit by the owners of the company was beneficial
because they decided, that with a few renovations, the
building would meet their immediate and future needs. They
are drafting a formal request to be submitted to the
Development Corporation for financial assistance in their
possible move to Wylie.
MEMORANDUM
DATE: July 14 , 1992
TO: City Council
FROM: Development Corporation of Wylie, Inc.
Jim Smith, President
RE: Semi-Annual Report
In the last six months the Development Corporation of Wylie
has received a total of $96,408.50, of which $90,892.38 was
sales tax revenue and $5,516.12 was interest.
There has been expenditures as follows:
Rent $ 300.00
Printing 172. 60
Promotions 1,661 .75
Office Remodeling 2, 305.00
Audit 625.00
Furniture 1 ,304 . 95
Training 95 . 00
Salaries 2,550.50
Video 5,375.00
P. I .D. Expenditures 76.58
$14,466. 38
This leaves a balance on deposit with Provident Bank Wylie
of $315,051 .68.
In addition to the expenditures the Corporation has the
following liabilities:
Holland Hitch $28,000. 00
Income Tax/Fica 679.00
$28,679.00
Leaving $286,372 .68 available for use as of 5-31-92.
In addition to the six monthly meetings, three special
called meetings have been held. Several formal requests for
financial assistance have been received. Only one of these
has resulted in a grant.
We are actively involved with four companies who have
expressed an interest in moving to Wylie. One of these
looks very promising and the other three are somewhat
marginal . We are also working with one company that is
going to leave Wylie because of financial reasons.
The Corporation has employed a full time Director as of July
1 , 1992. We believe this to be a positive move and expect
to see much more activity in the area of business
solicitation.
We have contracted with Michael Brown Productions for the
creation of an eight minute video to publicize Wylie. We
expect to use this video to recruit new business.
We are looking forward to an exciting and busy year ahead.
Respectfully