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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