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07-23-1997 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION Tuesday, July 23, 1997 Board Members Present: Marvin Fuller Kevin St. John J.C. Worley John Yeager Merrill Young Staff Present: Samuel Satterwhite, Executive Director Others Present: Councilman Joel Scott With notice of the meeting posted in time and manner required by law and a quorum of Board members present, the Board of Directors of the Wylie Economic Development Corporation (WEDC) met in Regular Session on July 23, 1997 in the Wylie Chamber of Commerce Board Room at 108 W. Marble, Wylie, Texas. The meeting was called to order by President John Yeager at 3:07 p.m. ITEM NO. 1 - Discuss and Consider Approval of Minutes for the June 13, 1997 Regular Board of Directors Meeting of the Wylie Economic Development Corporation. • MOTION: A motion was made by Merrill Young and seconded by Marvin Fuller to approve the Minutes for the June 13, 1997 Regular Meeting of the Wylie Economic Development Corporation Board of Directors. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 2 - Discuss and Consider Approval of the June, 1997 Treasurer's Report for the Wylie Economic Development Corporation. Board member Fuller requested that staff calculate the cumulative difference in WEDC revenues over the previous fiscal year. MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to approve the June, 1997 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the motion. WEDC - Minutes July 23, 1997 Page 2 ITEM NO. 3 - Discuss and Consider Issues Surrounding Novid Business Park. Staff reviewed the terms of the Loan Agreement between the WEDC and Novid Properties, Inc. Under that agreement, the WEDC has agreed to loan Novid Properties, Inc. $20,000 to assist in the expansion of infrastructure to better serve Novid Business Park. Repayment of the loan will be based upon 4 annual payments of$5,000. Interest will be based upon the prime interest rate plus 1% as published in the Wall Street Journal on July 23, 1997. The interest rate published is 8.5% providing a total interest rate on the loan of 9.5%. If Novid Properties, Inc. locates a new business comprised of at least 5 on-site employees to Novid Business Park within a specified 12 month period, and the same business remains in operation for 12 months, the principal payment for that period will be forgiven. Staff indicated that the City of Wylie had accepted the water and sewer improvements and that documentation from Intercon Construction had been received identifying the specific work completed. All documents were in order and met the specifications set forth in the Loan Agreement. MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to approve payment to Novid Properties, Inc. in the amount of $20,000 as reimbursement for water and sewer improvements to Novid Business Park, as specified in the Loan Agreement between the WEDC and Novid Properties, Inc. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 4 - Staff Reports. Staff updated the Board on issues surrounding the relocation of BTI to Wylie. It appears that American National Bank may only be able to collateralize approximately 70% of the commercial loan with the new building itself. Gary Bottoms is willing to pledge liquid securities as further collateral and depending upon the final construction costs, the WEDC may be asked to pledge sales tax receipts as collateral. Staff informed the Board that negotiations are taking place between the WEDC, Provident Bank, and Accurate Automatic to expand their facility by 10,000 square feet and increase parking capacity. Board member Fuller commented that expanded parking will be a great asset to the WEDC in that Accurate Automatic employees will no longer be parking on the street. Finally, staff indicated that Mr. Roy Neely would consider relocating Wylie Machine to Lot 1 within 544 Business Park if the WEDC is willing to convey the property to Wylie Machine at no cost and a $25,000 cash grant is made available to offset loss of productivity during downtime, pay salaries during downtime, and to pay for the physical relocation of equipment. The Board instructed staff to work with Mr. Neely on the WEDC owned property, but to give no indication that a $25,000 cash grant is available. WEDC - Minutes July 23, 1997 Page 3 ITEM NO. 5 -Adjourn. There being no further business, the meeting was adjourned at 4:11 p.m. Jo eager, President Attest: Samuel D.R. Satterwhite Executive Director