09-18-2007 (City Council) Minutes Wylie City Council
CITY OF WYLIE
Minutes
Special Called Work Session
Wylie City Council
Tuesday, September 18, 2007 — 6:30 pm
Wylie Municipal Complex — Council Chambers
2000 Highway 78 North
CALL TO ORDER
Announce the presence of a Quorum.
Mayor Mondy called the Special Called Meeting to order at 6:40 p.m. with the following Council
members present: Mayor Pro Tern Red Byboth, Councilwoman Kathy Spillyards, Councilman
Merrill Young, Councilman Rick White, Councilman Carter Porter and Councilman David Goss.
Staff present were: City Manager, Mindy Manson; Assistant City Manager, Jeff Butters; WEDC
Executive Director, Sam Satterwhite; Planning Director, Renae' 011ie; Public Information Officer,
Craig Kelley, and City Secretary, Carole Ehrlich.
Mayor Mondy convened into Work Session at 6:41 p.m.
WORK SESSION
• Presentation from Direct Development Representatives (WEDC Executive Director,
S. Satterwhite)
Wylie Economic Development Executive Director Satterwhite addressed Council stating that this
evening was an exciting night. He noted that as Council was aware, there had been discussion
for some time regarding development of commercial property on S.H. 544 and McCreary. He
introduced David Watson, Owner Principal and Don Bouvier, Development Partner representing
Direct Development, 2001 Ross Ave. Ste. 4601, Dallas, Texas. He explained the process began
on the proposed property in 2005 with WEDC making an attempt to purchase the property.
WEDC was told that Mr. Herzog had just completed a contract on the property. Mr. Satterwhite
commented that this contract turned out to be very beneficial to the City and to WEDC. Mr.
Satterwhite turned the presentation over to Mr. David Watson, Owning Principal of Direct
Development.
Minutes—September 18, 2007
Special Called Work Session
Wylie City Council
Page 1
Mr. Watson addressed Council stating that this was indeed an exciting evening. He presented
Council with some background regarding Direct Development. He explained that the company
was singly focused on retail commercial development not focusing on industrial or other types of
developments. He explained that Target had differentiated themselves as the best retail anchor
for community shopping center developments in the industry. He reported that Direct
Development had created a strong relationship with Target, and was fortunate to have Target as
their best client. He invited Council to visit the three shopping centers that have been completed
in the Town of Flower Mound to get an idea of the quality of construction and design the
company offers. Mr. Watson reported that Troy Aikman was an owning partner of the company
and had planned on being present tonight but due to other obligations was unable to attend. He
explained that projects like the one being considered here tonight take a tremendous amount of
effort from city staff, Council, WEDC, cooperative landowners who understand the processes,
and from leaders in the community.
Mr. Watson turned the meeting over to Don Bouvier, Development Partner. Mr. Bouvier
addressed Council stating that he wanted to give Council the vision and intentions Direct
Development was proposing for this site. He reported the firm was asking for a public/private
relationship. He shared pictures of designs of other developments in and around the metroplex
that had been completed by the development firm. He presented a site plan that showed
approximately 600,000 sq. ft. of retail development He stated that the property was almost
there, but not quite yet; this is the reason why we are asking for a public/private partnership.
While the property has the right width and depth, it does not have the completed thoroughfare
crossing. One of the requirements to complete this is to partner with the City to complete the
McCreary Road extension which will guarantee that the shopping center will come to fruition.
This must also include adequate right-of-way for McCreary Road and the shopping center. He
reported that the firm was currently working with Mr. Herzog, North Texas Municipal Water
District, Texas Power and Light, City of Sachse and the City of Murphy to acquire the necessary
right-of-way for the road and the bridge from Maxwell Creek. He reported that the firm was also
working with TxDOT to insure signalization at the site for shopper convenience. He explained
that the design of the project would be sustainable, aesthetically pleasing and stand the test of
time. He reported that on the financial side, the approximate annual revenues generated from
this development to the City included: $700,000 in ad valorem tax, $3,000,000 in sales tax, and
roughly 1,000 new jobs. He reported that the firm was under contract for the property and were
in discussion stages with retailers to bring them all together. He reported that the firm would like
to be under construction by May 2008 with Target wishing to open in July 2009. He noted that
the plan was to build the roadways concurrently with the commercial development. He reported
that finances and economics of this deal were not deep enough for the firm to do all these public
improvements without a method to recoup some of those costs; consequently, three weeks ago
the firm submitted a proposal for the public/private partnership to the Wylie Economic
Development Corporation which is a starting place for these negotiations.
Mayor Mondy asked if it was too early to report tenant interest. Mr. Bouvier stated that he could
only note retailers that they were in discussion with regarding the site. He reported that with the
assistance of the Mayor and WEDC, Target was willing to locate if negotiations continue to be
positive. Other retailers were: J. C. Penny and Kohl's. He reported that Michael's, Dicks's
Sporting Goods, Pet Smart, Ross Dress for Less, community restaurants and a movie theatre
had also shown interest in locating within the development. Mr. Watson reported that the firm
needed to receive the firm commitment from Target prior to finalizing discussions with other
retailers. He reported that the firm was just not there yet. He explained that the commitment that
retailers and the developers were making was projected to cost over $100,000,000. Mr. Bouvier
thanked the Council for their time and interest.
Minutes—September 18, 2007
Special Called Work Session
Wylie City Council
Page 2
Mayor Mondy convened into Executive (closed) Session at 6:55 p.m. stating the exception noted
below.
EXECUTIVE SESSION
Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit:
1. §§551.087 Deliberations regarding economic development negotiations. To discuss
commercial or financial information that the governmental body has received from a
business prospect that the governmental body seeks to have locate, stay or expand in or
near the territory of the governmental body and with which the governing body is
conducting economic development negotiations.
• Discussion regarding economic negotiations with Direct Development
RECONVENE INTO OPEN SESSION
Take any action as a result from Executive Session, including but not limited to:
Mayor Mondy reconvened into Open Session at 7:32 p.m.
1. Consider and act upon authorizing the City Manager to negotiate a development
agreement for a retail development on FM 544 between the City of Wylie and Direct
Development.
Council Action
A motion was made by Mayor Pro Tern Byboth, seconded by Councilman Young to authorize
the City Manager to negotiate a development agreement for a retail development on FM 544
between the City of Wylie and Direct Development. A vote was taken and passed 7-0.
ADJOURNMENT
With no other business before Council, Mayor Mondy adjourned the meeting at 7:35 p.m.
Consensus of Council was to adjourn.
a ,o- `•..,� '� J hn Mo dy, ayor
ATTEST:
•
Car
��� .��.
le Ehrlich, C' y ecretary
'/,, E,
Minutes—September 18, 2007
Special Called Work Session
Wylie City Council
Page 3