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.
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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
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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.
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September 25,2007
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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.
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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