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10-18-2013 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, October 18, 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 6:31 a.m. Board Members present were Todd Wintters,Demond Dawkins, and Mitch Herzog. Ex-officio member Mindy Manson was present. WEDC staff present was Executive Director Sam Satterwhite and Senior Assistant Gerry Harris. CITIZEN PARTICIPATION With no citizen participation, Mr. Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the September 20, 2013 Minutes of the Wylie Economic Development Corporation (WEDC)Board of Directors Meeting. MOTION: A motion was made by Todd Wintters and seconded by Mitch Herzog to approve the September 20, 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 September 2013 WEDC Treasurer's Report. MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to approve the September 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 the WEDC purchase of 1.59 acres from Hobart Investments,Inc.,formally known as Hobart Industries,Inc. Staff reported that the WEDC was scheduled to close on the 1.59 acre Hobart tract on October loth and has now rescheduled the closing for November 11th. Approximately 30 days ago Mrs. Folstadt, a 50% owner of the property, passed away. Mrs. Folstadt's son and daughter, who are both 25% owners, are probating the will and establishing new officers of Hobart Investments on WEDC—Minutes October 18, 2013 Page 2 of 6 or about November 1, 2013. At that time, the title company will be satisfied as to the ability of Hobart Investments to convey title to the WEDC. The Board took no action. ITEM NO. 4 — Consider and act upon issues surrounding the WEDC purchase of 1.065 acres from Hobart Investments,Inc.,formally known as Hobart Industries,Inc. Staff reported that due to the required disposal of debris from within the building, the WEDC has been unable to complete the Phase I environmental report. Hobart has removed 100% of the storage barrels, removed approximately 95% of the debris within the buildings, and extensively cleaned the concrete floors. Helmberger Associates was informed on 10-16-13 that the building is ready to inspect and will begin their Phase I immediately. Due to the delay, Hobart and the WEDC have executed an amendment to the contract extending the due diligence period form sixty to one-hundred twenty days. Closing is tentatively scheduled for the first week of January. As staff has been evaluating the improvements which will be required to lease the building, a number of repairs will need to be made to meet minimum standards. Based upon input from Pulliam Construction Management (PCM), repairs could be as high as $30,000. Staff was directed to obtain a detailed estimate of the required improvements. The Board took no action. ITEM NO. 5 —Consider and act upon issues surrounding an Amended and Restated Performance Agreement between the WEDC and T.W. Snider& Associates. Staff reviewed that on October 9, 2012 the WEDC executed an Amended Performance Agreement with T.W. Snider & Associates. Due to the lagging office demand Mr. Snider was afforded more time to complete Phases II—IV of his project. As specified in the Agreement, Mr. Snider must receive a shell final from the City of Wylie for a 4,800 square foot office on or before November 1, 2013. Also, at least 17 additional parking spaces must be completed between Buildings 3 & 4, as well as complete neighborhood screening as approved on the site plan for Phases 1 — IV. Mr. Snider approached staff in September to discuss the potential for a thirty day extension to the November 1st deadline. Upon meeting the performance measures the WEDC will fund a$45,000 incentive. Staff reported that the project is 95% complete with all remaining to be completed are two pours for the parking lot/sidewalks, permanent power to be provided to the building, and wrought iron fence panels to be installed between existing brick columns. Mr. Snider anticipated that all outstanding issues will be completed by the week of November 18th. Mr. Herzog commented that he had been to see the building and agreed that Mr. Snider is working diligently toward the completion of the project. Staff recommended that the WEDC Board of Directors approve a 30 day extension for the completion of performance requirements associated with Incentive 2a of the Amended and WEDC—Minutes October 18, 2013 Page 3 of 6 Restated Performance Agreement between the WEDC and T. W. Snider & Associates. Mr. Herzog suggested that the WEDC extend the deadline for completion to Friday, December 13th to allow for any unanticipated circumstances. MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to extend the deadline for the completion of performance requirement associated with Incentive 2a of the Amended and Restated Performance Agreement between the WEDC and T.W. Snider& Associates to December 13, 2013. The WEDC Board voted 4—FOR and 0 —AGAINST in favor of the motion. ITEM NO. 6 — Consider and act upon issues surrounding a 19-acre commercial tract owned by the City of Wylie located near the intersection of F.M. 544 and Sanden Boulevard. Staff reported that a developer was interested in a portion of 19 acres owned by the City of Wylie on F.M. 544 across from Wylie Medical Plaza. Staff could only respond to the inquiry by stating that Council and the WEDC Board had not yet established a vision or concept plan for the property and that it may take several months to do so. Staff commented to the Board that while the Planning Department was more than capable of formulating a concept plan, it may be more efficient to hire an architectural group to focus on this effort. Staff presented the Board with a proposal from PBK Architects. Staff stated that should PBK or any other firm be hired to assist the City, that firm would work in conjunction with the City Council, WEDC Board of Directors, and City of Wylie Planning Department to establish a vision for this property and thus allow the WEDC to effectively market the property in the future. The proposal was based upon compensation for basic services at $15,000. The work product to be delivered would be multiple concept plans based upon 2—3 work sessions with Council/WEDC. Staff had previously believed that the City/WEDC should wait until property is further developed around Wylie Medical Plaza which in turn would make the City property more marketable. Based upon the initial inquiry by a developer however and the level of current activity in the commercial development market, it might be more prudent to go ahead and establish a concept for the property and be prepared whether the Council would entertain a purchase offer or not. Mr. Dawkins suggested that the WEDC hire PBK for the developmental design, but asked that staff have PBK be more specific on what constituted `additional services' and `additional expenses'. MOTION: A motion was made by Demond Dawkins and seconded by Todd Wintters to hire PBK to develop a master-plan design of the City of Wylie 19 acres located on F.M. 544. The WEDC Board voted 4 —FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS WEDC—Minutes October 18, 2013 Page 4 of 6 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 (avoided tax payments), Sale of WEDC owned Property to ACE, Performance Agreement between the WEDC and B&B Theatres Operating Company, Performance Agreement between the WEDC and Sanden, T.W. Snider & Associates, extension of Woodbridge Parkway, Caliber Collision, City of Wylie parking standards, WEDC Invitational, and regional housing starts. Woodbridge Crossing The Sales Tax Reimbursement Report was presented which identified all sales taxes received through July 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 to 65% thereafter. October 2013 figures will be received by the WEDC in December 2013. Woodbridge Crossing is eligible for a maximum $6 million in sales tax reimbursement through September 2021. $1,943,868.69 has been reimbursed to date with net receipts of $1,105,337.10 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. Sale of WEDC owned Property to ACE Ascend and WEDC staff are still preparing the contract and closing documents for the sale of WEDC property and improvements on Martinez to Ascend. Staff expects the closing to occur by 11/15/13 and will keep the Board updated on the progress of closing documents. B &B Theatres Operating Company Performance Agreement In June, the WEDC began receiving a Sales Tax Area Report from the Comptroller which tracks taxable sales generated from the Wylie B&B Theatre. 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 on or about September 1, 2014. Performance Agreement between the WEDC and Sanden International (USA), Inc. On October 3, 2013 a Sanden employee signed for a Certified Letter notifying Sanden COO Jimmye Phaup that the WEDC Board is requesting documentation pertaining to the piston line WEDC—Minutes October 18, 2013 Page 5 of 6 installation prior to November 1, 2013. The letter to Mr. Phaup was presented for the Board's review. City of Wylie Parking Standards The City of Wylie Planning Department has reevaluated parking requirements for commercial developments with the Planning & Zoning Commission making a recommendation concerning the same to be considered by Council on October 22nd. In summary, the proposed standards will reduce the required number of spaces with the greatest impact to large commercial developments such as Wal-Mart and Target. While the Planning & Zoning Commission stopped short of considering the reduction of parking space size and `green' initiatives encouraging alternative construction methods, the WEDC believed that Planning staff was vigorously representing the business community with the proposed changes. WEDC Invitational The WEDC will be hosting 51 guests at the WEDC Invitational golf outing on Thursday, October 24t'. Board Members were asked to inform staff of any last minute additions to the guest list. Regional Housing Starts Eight homes were permitted in Wylie for September 2013. Sachse, Lavon and Murphy permitted a combined thirty-three homes over the same period. No action is requested by staff for this item. EXECUTIVE SESSION The WEDC Board recessed into Closed Session at 8:05 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 2013-3 • Project 2013-4a • Project 2013-5c • Project 2013-5d • Project 2013-9a 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: • Ballard&Alanis WEDC —Minutes October 18,2013 Page 6 of 6 RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 9:05 a.m.and took no action. ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 9:05 a.m. fri/1 AVIA Marvin Fuller, President ATTEST: Samuel Satterwhite,Director