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09-25-2007 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Tuesday, September 25, 2007—6:00 A.M. Inwood National Bank—Conference Room 200 South Highway 78—Wylie,Texas CALL TO ORDER Announce the presence of a Quorum. President Fuller called the meeting to order at 6:05 a.m. Board Members present were: Mitch Herzog, John Yeager, Merrill Young, and Chris Seely. Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry Harris. Ex-Officio Member, Mindy Manson was present. Ex-Officio Member John Mondy arrived at 6:09 a.m. CITIZEN PARTICIPATION There being no citizen participation, President Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and Act Upon Approval of the August 17, 2007 Minutes of the WEDC Board of Directors Meeting. MOTION: A motion was made by Merrill Young and seconded by Mitch Herzog to approve the August 17, 2007 Minutes of the WEDC Board of Directors Meeting. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 2 — Consider and Act Upon Approval of the September 6, 2007 Joint Meeting Between the WEDC Board of Directors and the Wylie City Council. MOTION: A motion was made by Merrill Young and seconded by Mitch Herzog to approve the September 6, 2007 Minutes of the Joint Meeting Between the WEDC Board of Directors and the Wylie City Council. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 3 — Consider and Act Upon Issues Surrounding Approval of the August 2007 WEDC Treasurer's Report. Staff notified the Board that August sales tax receipts were down 6.17%. Vice President Young requested that staff research surrounding communities to determine whether this downward trend is area-wide or isolated to Wylie. WEDC—Minutes September 25,2007 Page 2 of 5 MOTION: A motion was made by Mitch Herzog and seconded by Chris Seely to approve the August 2007 WEDC Treasurer's Report. The WEDC Board voted 5—FOR and 0—AGAINST in favor of the motion. ITEM NO. 4 — Consider and Act Upon Issues Surrounding a WEDC Budget Transfer for FY 2006—2007. In order to close the financials for FY 2006 — 2007, staff presented budget transfers required to balance several accounts. One of the more substantial transfers involves the Special Services Account. This account was over budget due to increased mowing expenses, cleaning expenses, travel expenses for the TIP consultants, Premier Plaza South clearing expenses, and demographics studies. In addition, Engineering/Architect services exceeded the budget. The Streets and Alley Account was also over budget due to an increase in charges from Oncor to move utility lines within Premier Plaza. Transfers for Longevity Pay, Hospital & Life Insurance, Rental, Dues & Subscriptions were also presented. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the WEDC Budget Transfer in the amount of$43,597. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 5 — Consider and Act Upon Issues Surrounding a Real Estate Sales Contract Between the WEDC and Prime Kuts Distributing, Inc. Staff provided for the Board's review the survey, Real Estate Contract, Commitment for Title Insurance, and a Commercial Lease associated with the purchase of the Prime Kuts lot on Industrial Court. The 0.1974 acre tract is being purchased by the WEDC for $228,750 which is being 100% financed by Prime Kuts over a period of one hundred twenty months (120) at an interest rate of six percent (6%) per annum. The Wylie City Council approved the purchase and associated debt on 8-28-07 with the purchase scheduled to close on 10-29-07. The Commercial Lease is comprised of an initial 12-month period in which Prime Kuts will be paying a monthly lease of$1.00 per month as contemplated within Article XII (o) of the Real Estate Contract. After the initial 12-month period, the lease will be on a month-to-month basis and have a monthly lease rate of$2,184 per month. A lease rate was calculated based upon the identical square footage rate applied to Almost Home and Delta-E which occupy WEDC facilities on Industrial Court. The WEDC Board requested that the lease specify that when Prime Kuts vacates the facility it be left in as good a condition as when the WEDC took possession. To ensure the requirement, the Board required a deposit by Prime Kuts of$5,000 to be held by third party in an interest bearing account. MOTION: A motion was made by John Yeager and seconded by Chris Seely to approve the purchase of 0.1974 acre from Prime Kuts Distributing, Inc. in the amount of$228,750 and further authorize President Fuller to execute all WEDC—Minutes September 25, 2007 Page 3 of 5 documentation, as amended, necessary to effectuate the sale. The WEDC Board voted 5 —FOR and—0 AGAINST in favor of the motion ITEM NO. 6—Consider and Act Upon Issues Surrounding a Real Estate Contract Between the WEDC and Martin L. Anderson. Staff presented for review the Real Estate Sales Contract between Martin L. Anderson and the WEDC. The purchase price is $76,250 payable in all cash at closing. The Wylie City Council approved the purchase and expenditure on 8-28-07 with the purchase scheduled close on 10-29- 07. Staff also reported on the Phase I and limited Phase II environmental assessments. The soil metals tested for are typical of, but not limited to, substances resulting from the use of rail line traffic. While arsenic and lead were slightly above normal levels identified by the Texas Specific Background Concentration, the results are not uncommon for a property with its history. president Fuller indicated that while this data does not dissuade him from the purchase or lead him to believe further testing should take place for this small tract, it will be valuable information to have when redevelopment efforts result in new construction. Staff recommended that the WEDC Board of Directors approve the purchase of 0.1136 acre from Martin L. Anderson in the amount of$76,250 payable in all cash at closing and further authorize President Fuller to execute all documentation necessary to effectuate the sale. MOTION: A motion was made by Mitch Herzog and seconded by Merrill Young to approve the purchase of 0.1136 acre from Martin L. Anderson in the amount of$76,250 payable in cash at closing and further authorize President Marvin Fuller to execute all documentation necessary to effectuate the sale. The WEDC Board voted 5—FOR and 0—AGAINST in favor of the motion. ITEM NO. 7 — Consider and Act Upon Issues Surrounding a Real Estate Sales Contract Between the WEDC and Martin L. Anderson, Susan M. Anderson, Gary E. Bowland, and Charlotte A. Bowland. For review, staff presented the survey, Real Estate Sales Contract, and a commitment for title insurance between Anderson/Bowland and the WEDC. The Wylie City Council approved the purchase and associated debt on 8-28-07 with the purchase scheduled to close on 10-29-07. The contract identifies a $105,000 purchase price, $25,000 payable in cash at closing, the owner financing$80,000 over a sixty(60)month period at an interest rate of 6%per annum. Because of the proximity of Chemical Recycling, Inc., a site listed within the Comprehensive Environmental Response Compensation and Liability Act Information System, staff ordered a Phase II Environmental audit by Helmberger Associates. No tested sample identified a concentration above allowable levels. Ex-Officio Member Mondy stated is ownership of adjacent property and excused himself from the meeting. WEDC—Minutes September 25,2007 Page 4 of 5 Staff recommended that the WEDC Board of Directors approve the purchase of 0.368 acre from Martin L. Anderson, Susan M. Anderson, Gary E. Bowland, and Charlotte A. Bowland in the amount of$105,000 and further authorize President Marvin Fuller to execute all documentation necessary to effectuate the sale. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the purchase of 0.368 acre from Martin L. Anderson, Susan M. Anderson, Gary E. Bowland, and Charlotte A. Bowland in the amount of $105,000 and further authorize President Marvin Fuller to execute all documentation necessary to effectuate the sale. The WEDC Board voted 5 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 8 — Consider and Act Upon Issues Surrounding Site Improvements to WEDC Owned Property on Hensley Lane. At the Southwest corner of the 3.2 acre tract owned by the WEDC on Hensley Lane there are 2, 80— 100 year old oak trees. One tree was struck by lightening several years ago and lost a large limb to high winds earlier this year. These two separate incidents have caused this tree to be extremely unstable and it is very likely that the remaining large limb will fall onto the Pella parking lot and crush several cars or even injure an individual. Arborilogical Services, Inc. (ASI) of Wylie recommends that this tree be taken down and will perform this service for $2,080. The second tree is located on the WEDC/Pella property line with about 65% on the WEDC side. ASI indicated that this tree would probably not last ten more years based upon signs of rotting and stress. A treatment to extend the life of this tree will be to reduce the weight on the tree by pruning branches up to 1" in diameter($720) and performing quarterly root fertilization ($125). Staff recommended that the WEDC Board of Directors authorize the WEDC Executive Director to enter into a contract with Arborilogical Services, Inc. in the amount of$2,800 for tree removal and pruning services and expend $125 quarterly for fertilization services. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager authorizing the WEDC Executive Director to enter into a contract with Arborilogical Services, Inc. in the amount of$2,800. The WEDC Board of Directors voted 5—FOR and 0—AGAINST in favor of the motion. ITEM NO. 9 — Presentation from WEDC Staff Pertaining to Industrial Activity Within Premier Plaza. Staff presented activity from several companies pertaining to Premier Plaza. There have been inquiries from Precision Wire Products, Riddle Metal Works, and The Staubach Company. Staff continues to work with each company and will report further activity. Staff also reported on progress on the JTM Technologies, Inc. negotiations. No action was taken. WEDC—Minutes September 25, 2007 Page 5 of 5 EXECUTIVE SESSION The WEDC Board of Directors convened into Executive Session at 7:01 a.m. I. Consider and Act Upon Issues Surrounding the Purchase of Properties Located on Cooper Drive as Authorized in Section 551.072 (Real Property) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). II. Consider and Act Upon Issues Surrounding the Purchase of Properties Located on Industrial Court as Authorized in Section 551.072 (Real Property) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). III. Consider and Act Upon Issues Surrounding the Provision of Economic Assistance to Direct Development as Authorized in Section 551.087 (Economic Development Negotiations) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 7:55 a.m. No action was taken as a result of discussions held in Executive Session. ADJOURNMENT With no further business, President Marvin Fuller adjourned the WEDC Board meeting at 7:56 a.m. 111(1414/) Marvin Fuller, President ATTEST: Samuel D.R. Satterwhite Executive Director