Loading...
07-19-2013 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, July 19, 2013 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 John Yeager, Demond Dawkins, and Mitch Herzog. Ex-officio members Mayor Eric Hogue and Mindy Manson were present. WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris. CITIZEN PARTICIPATION Ms. Lynn Grimes, Keller Williams Real Estate/The Wylie Art Gallery, was in attendance and advised the WEDC Board of Directors that she continues to hear from the community the need for more sit down restaurants. With no further citizen participation, Mr. Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the June 21, 2013 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by Mitch Herzog and seconded by Demond Dawkins to approve the June 21, 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 approval of the June 2013 WEDC Treasurer's Report. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the June WEDC Treasurer's Report. The WEDC Board voted 4 — FOR and 0—AGAINST in favor of the motion. WEDC—Minutes June 21, 2013 Page 2 of 7 ITEM NO. 3 — Consider and act upon an Agreement between the WEDC and 78-Kreymer, Ltd. for the reimbursement of expenses associated with demolition services. Staff reported that they were approached by Mr. Mark Smith, President of 78-Kreymer, Ltd., inquiring as to the level of interest the WEDC may or may not have in assisting with the removal of a billboard located at the southwest corner of State Highway 78 and Kreymer Lane. While the billboard is still functional, it typically is not leased and has a significant amount of overgrown vegetation surrounding its base. Mr. Smith presented a $3,000 and $2,500 proposal for demolition of the billboard. Mr. Smith requested that should the Board be interested in participating in the project, the WEDC could pay the demolition company directly. Staff preferred the WEDC reimburse 78- Kreymer, Ltd. for expenses associated with the demolition to protect the WEDC from liability for demolition services and from 78-Kreymer, Ltd. itself Staff recommended that the WEDC Board of Directors authorize the reimbursement of expenses up to $2,500 for removal of a billboard located at the southwest corner of State Highway 78 and Kreymer Lane and further authorize the WEDC Executive Director to execute a Letter of Understanding surrounding the terms of the WEDC reimbursement. MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to authorize the reimbursement of expenses up to $2,500 for removal of a billboard located at the southwest corner of State Highway 78 and Kreymer Lane and further authorize the WEDC Executive Director to execute a Letter of Understanding surrounding the terms of the WEDC reimbursement. The WEDC Board voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 4 — Consider and act upon issues surrounding the FY 2013 — 2014 WEDC Budget. Staff presented the second draft of the WEDC FY 2013 —2014 Budget. Revenue Sales Tax — Sales tax receipts have remained constant since the July presentation. FY 2013 —2014 sales tax receipts are estimated at$1,856,035. Fund Balance — Since the first budget presentation staff became aware that the `avoided tax payments' made by Ascend were included in the Claim on Cash and thus inflated the projected beginning unreserved Fund Balance by $96,190. The offset to this reduction of available funds will be reflected in a reduction to the `Future Projects' line-item within Incentives. The previously reported Beginning Fund Balance of$1,539,795 has been reduced to $1,443,605. Chamber Reimbursement — Staff had identified $900 in revenue from Chamber Reimbursements. Over the past 18 months, the WEDC has sponsored the Chamber Business Card Exchange which is reflected in the Food Supplies budget. The WEDC—Minutes June 21, 2013 Page 3 of 7 $3,000 annual expense funds food and beverages for the weekly networking meeting of Chamber members. While food and beverages are provided at no cost, the Chamber requests donations to offset the WEDC expense which in turn is given to the WEDC in cash each week/month. While there has been no issue to date, the handling of cash can become problematic and staff time involved in making cash deposits is significant both to the WEDC and Finance Department relative to the annual amount of money being reimbursed. What began as a matter of principle that the donation be returned to the WEDC has resulted in the unintended consequence of additional staff time. Staff proposed that the Chamber of Commerce continue to collect donations and put the $900 back into the event in the form of either upgraded food or door prizes to the participants; an option which will be left up to the Chamber. Expenses Compensation — The proposed budget does not reflect a merit increase for the Executive Director. As identified previously though, staff requested that the Cooper Clinic Executive Physical Program ($4,420) be treated as income in addition to 28% of the cost to offset taxes and deductions. This approach is being requested because the expense is treated as income/bonus which is taxed at a higher rate. Should the Board approve this approach; a Letter Amendment to the Executive Director's Employment Agreement could be executed requiring the physical to be completed by January 1St of each year with evidence of the same provided to the WEDC President. The budget does however reflect a request for a 3% salary increase for the WEDC Senior Assistant. The resulting impact to the budget would be $1,238 annually. Staff reported that Mrs. Harris has continued to perform her duties at a superior level and publically represents the WEDC with the utmost professionalism. Staff also requested monies to fund an Administrative Assistant position beginning on or about July 2014 with Mrs. Harris retiring on September 30, 2014. The base salary of the position requested was proposed at$34,715. President Fuller requested that an Executive Session item be posted on the agenda at the next Board Meeting to discuss the Evaluation of the Executive Director and staff salaries. Incentives — Staff only proposed two changes from the first budget presentation surrounding incentives. The first new program proposed would be designed to benefit existing businesses only in the maintenance and enhancement to the exterior of their facilities. Staff's concept would be to provide up to $50,000 annually in a single or multiple grants to a company or companies which make long lasting improvements to the exterior of the buildings. Improvements such as adding a masonry façade to a metal building, exterior painting, sign/monument enhancements, or even xeriscaping landscape improvements. Staff envisions creating an application, publicizing the program, and having the board vote on the awarding of grants. WEDC—Minutes June 21, 2013 Page 4 of 7 Board Members Herzog and Yeager voiced support for the program as long as there was some requirement for the businesses to participate financially in the program; for example to fund 50% of the proposed improvements. Ex-Officio Member Manson also suggested that preference could be given in the application process for those proposed improvements which address bringing a legally non-conforming structure into conforming compliance Board Member Dawkins requested that draft program guidelines and a detailed application process be brought before the Board prior to implementation of the program. Also new to the budget draft is a $275,000 incentive for a project staff commented would be presented within Executive Session. Staff indicated though that should the WEDC not approve the project in question, those monies will roll into the `Future Projects' line-item with the Incentives Budget. Staff further reported that due to an increase in the Land budget and $325,000 additional monies for line-item Incentives, Future Projects was reduced to $741,411. Staff reviewed that Future Projects are those monies not set aside for specific projects,programs, or operating costs. President Fuller requested that an Executive Session item for personnel be placed on the next agenda so that the Executive Director can be evaluated by the Board and that WEDC staff salaries can be discussed. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to table approval of the WEDC FY 2013 —2014 Budget until the next meeting. The WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 5 — Staff Report: review issues surrounding an Amended and Restated Performance Agreement between the WEDC and Woodbridge Crossing, Performance Agreement between the WEDC and ACE, Performance Agreement between the WEDC and B&B Theatres Operating Company, Performance Agreement between the WEDC and Sanden International, (U.S.A.), Inc., T.W. Snider & Associates, extension of Woodbridge Parkway, Caliber Collision, Wal Mart Neighborhood Market, performance evaluation of the WEDC Executive Director, and regional housing starts. Woodbridge Crossing The Sales Tax Reimbursement Report was presented which identified all sales taxes received through April 2013 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 with the reimbursement percentage reduced WEDC—Minutes June 21, 2013 Page 5 of 7 to 65% thereafter. Woodbridge Crossing is eligible for a maximum $6 million in sales tax reimbursement through September 2021. $1,762,116 has been reimbursed to date with net receipts of$1,025,151 after reimbursements. As well, $1.4 mm has been paid in ad valorem taxes to the City of Wylie (excluding the WISD). Ascend Commercial Lease and Performance Agreement The Ascend Custom Extrusion Critical Dates Analysis and Performance Agreement Monitoring Procedures was presented. Payment #3 of 5 for the Economic Incentives has been funded with Ascend meeting all Performance Obligations within Sections A and B of the attachment. As reported previously, Ascend ordered a third extrusion press that will be delivered on or about March 2014. An architect has been hired along with Pulliam Construction Management to design and construct the proposed 21,000 square foot expansion. Local Ascend officials would prefer to break ground in August 2013 but continue to work toward purchasing the WEDC property and building. Staff did report that Ascend may be getting closer to terms being that Highlander has somewhat relaxed their requirement of not guaranteeing debt. Ascend and Highlander have a Board meeting the week of July 22nd from which Mr. Rentfrow has assured staff there will be more information pertaining to refinancing. B &B Theatres Operating Company Performance Agreement The B&B Theatre Performance Obligations was presented and the WEDC will fund Incentive No. 2 of $25,000 plus sales tax reimbursements following the certification by the Central Appraisal District of a minimum appraised value of$10 mm. Performance Agreement between the WEDC and Sanden International (USA), Inc. Staff received an email from Mr. Phaup indicating that the WEDC will receive confirmation of Sanden's investment in the piston line on July :,2nd. Staff thanked Mr. Phaup and indicated the WEDC is looking forward to receive the information and finalize the Performance Agreement. T. W. Snider &Associates Staff reported that Mr. Snider went vertical with improvements contemplated within Phase II of the Performance Agreement between the WEDC and T.W. Snider & Associates which among other things requires Snider to receive a Shell Final (CO) for a 4,800 square foot office and the development of 17 additional parking spaces within Snider's existing development. Should the proposed improvements be completed by November 1, 2013, the WEDC will fund a $45,000 grant. WEDC—Minutes June 21, 2013 Page 6 of 7 Woodbridge Parkway Staff reported on July 16th the Engineering Department advertised the project with bids required back and opened on August 9th. Engineering also met with utility contractors with relocation underway on or about July 30th. Substantial completion of the project is required within 300 calendar days as per the bid requirements. Caliber Collision Caliber Collision, a highly service oriented body shop, has proposed a 14,280 square foot Wylie facility behind and adjacent to Chili's off of Westgate Way. Staff reported that the Planning & Zoning Commission unanimously approved the Specific Use Permit which will be considered by Council in August. Wal-Mart Neighborhood Market Staff reported that Wal Mart is proposing a Neighborhood Market concept at the northeast corner of McCreary and McMillan. P&Z voted to deny the site plan via a 3 —3 vote. Wal Mart has the right to appeal the denial to City Council which would require a super majority vote for approval. Staff requested input from the Board regarding the role of the WEDC in a very politically charged issue within which a business is proposing a new project which complies with all City codes and standards. Board Member Dawkins asked whether staff commented on other projects, specifically those which the WEDC do not have a financial interest. Staff replied that is a common practice for the WEDC to interject its support of commercial projects, similar to Caliber Collision, even though there is not an incentive package in support of the project. Mr. Dawkins, along with the balance of the Board members in attendance, indicated that should staff feel the need to publically comment on this project at either a P&Z or Council Meeting, staff should remain consistent and not change its approach to economic development in Wylie simply because a project is controversial. Performance Evaluation of the WEDC Executive Director Staff reported that the Board will have an opportunity to evaluate the Executive Director at the next Board meeting and evaluation forms were handed out by President Fuller. Regional Housing Starts Eleven homes were permitted in Wylie for June 2013. Sachse, Lavon and Murphy permitted a combined thirty-four homes over the same period. No action is requested by staff for this item. Ex-Officio Member Mayor Eric Hogue left the meeting at 7:45 a.m. WEDC—Minutes June 21, 2013 Page 7 of 7 EXECUTIVE SESSION The WEDC Board recessed into Closed Session at 7:48 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 2013-4a • Project 2013-5b • Project 2013-5c • Project 2013-5d • Project 2013-6a • Project 2013-7a Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). Consider the acquisition of property located near: • F.M. 544 &Regency • State Highway 78 &Ballard Street • F.M. 544 & Commerce • Cooper Drive Board Member Mitch Herzog left the meeting at 8:22 a.m. Ex-Officio Member Mindy Manson left the meeting at 8:55 a.m. RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 9:06 a.m. and took no action. ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 9:06 a.m. /4/1a/1/611 Marvin Fuller,President ATTEST: Samuel Satterwhite,Director