03-28-2014 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday,March 28, 2014 6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
CALL TO 0 ' 1 ER
Announce the presence of a Quorum
President Marvin Fuller called the meeting to order 6:33 a.m. Board Members present were John
Yeager, Demond Dawkins, Todd Winners, and Mitch Herzog.
Ex-officio member Eric Hogue was present as well as Assistant City Manager Jeff Butters.
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 March 5, 2014 Minutes of the Wylie
Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve the March 5, 2014 Minutes of the Wylie Economic Development
Corporation. The WEDC Board voted 5 —FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 2 — Consider and act upon approval of the February WEDC Treasurer's
Report.
Staff reported that the Deferred Charges notation ($991,554) on the Treasurer's Report Memo
represented the entire $350,000 commitment with $100,00 already funded. The Board directed
staff to amend the memo and confirm with the Finance Department that the $100,000 payment
has been booked properly.
MOTION: A motion was made by Todd Winners and seconded by John Yeager to
approve the February WEDC Treasurer's Report noting amendments to the
Deferred Charges Account. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon the conveyance of WEDC property located at 1405
Martinez Lane to Ascend Custom Extrusion.
WEDC Minutes
March 28, 2014
Page 2 of 4
Staff reported receiving confirmation from Jeff Hull of Highlander Partners that Ascend Custom
Extrusions LLC (ACE) would be exercising its option to purchase 22.42 acres from the WEDC
with closing scheduled on or about April 14,2014. As per the Terms of the Purchase Agreement
within the Commercial Lease, ACE has the option to purchase the property any time after the
third year of the Lease, but prior to the end of the tenth year. Being that the Lease was executed
on November 19, 2010, ACE complies with the Option period requirement. The purchase price
of the property shall be equal to the outstanding loan balance on the indebtedness the WEDC
undertook for construction of the facility which is estimated at$4.28 million.
The WEDC has ordered a title commitment through Lawyers Title and ACE is updating the
survey to reflect the expanded improvements. Per the Purchase Option, the WEDC is
responsible for the cost of the title policy which is estimated at$20,900.
In_order to accommodate the proposed closing date and the formal approval required by the
WEDC Board, staff requested a Special Called Meeting tentatively scheduled for April 11,2014.
Staff had no recommendation at the time.
DISCUSSION ITEMS
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, Performance Agreement between the WEDC and B&B Theatres Operating
Company, Performance Agreement between WEDC and CSD Woodbridge, EXCO Tooling
Solutions, Deanan Gourmet Popcorn, Swimcat, alternate dates for April, May, June & July
Board Meetings,and regional housing,starts.
Woodbridge Crossing
The Sales Tax Reimbursement Report was presented which identified all sales taxes received
through December 2013 within Woodbridge Crossing for the,City General Fund, the WEDC,
and the 4B. As a reminder, the City and WEDC reimbursed 85% of all sales tax generated
within Woodbridge Crossing through September 2013 with the reimbursement percentage
reduced to 65%thereafter. Woodbridge Crossing is eligible for a maximum $6 million in sales
tax reimbursement through September 2021.
$2,154,904.09 has been reimbursed through December with net receipts of$1,286,683.24 after
reimbursements. As well, $1.9 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 were 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.
WEDC—Minutes
March 28, 2014
Page 3 of 4
B &B Theatres Operating Company Performance Agreement
The B&B Theatre Performance Obligations was presented. 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.
Mayor Hogue was informed by B&B ownership that theatre sales are 20% above original
projections.
CSD Woodbridge Performance Agreement
On July 15, 2013 a certificate of occupancy (CO)was issued for Kroger Marketplace. Beginning
October 1, 2013 and ending October 1, 2023, Clark Street Development was eligible to receive a
Y2 cent sales tax reimbursement from the WEDC. To date, Clark Street has not been able to
secure the proper number of sales tax waivers in order for the Comptroller to release support
documentation to the WEDC to process sales tax reimbursements. Staff anticipated receiving
documentation from the Comptroller beginning in July 2014.
In addition to the $100,000 reimbursement incentive paid by the WEDC at CO, Clark Street may
receive cumulative incentives of$1,100,000 over the life of the Agreement.
EXCO Tooling Solutions
Exco officials have executed the Performance Agreement and Real Estate Sales Contract
associated with the relocation/expansion of Exco. Lawyers Title has begun processing the sales
documents with staff anticipating closing the transaction within the next 60 days.
Deanan Gourmet Popcorn
Deanan submitted plans and permit application on March 7th with the Building Department
projecting issuance on or about March 27th.
Swimcat
Mr. Rush has submitted plans to the Building Department for his office development on
Westgate Way. Plan review and issuance of building permit has been delayed by the submittal
of incomplete information.
Alternate WEDC Board Meeting Dates
Staff requested date changes for the following Regular Board Meetings:
April 18th to April 251h—6:30 a.m.
May 16th to May 15th—6:30 a.m. (IC SC conflict)
June 20th to June 19th—6:30 a.m. (Board Member conflict)
th th
July 18 to July 25 —6:30 a.m. (Board Member conflict)
WEDC—Minutes
March 28, 2014
Page 4 of 4
Regional Housing Starts
Twenty homes were permitted in Wylie for February 2014. Sachse, Lavon, and Murphy
permitted a combined forty-five homes over the same period.
No action is requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board recessed into Closed Session at 7:02 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 2013-5b
• Project 2013-5c
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 the intersection of:
• Stone &Birmingham
• Oak Street & Jackson Avenue
CONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:36 a.m. and took no action.
I JOURNNIENT
With no further business, President Fuller adjourned the WEDC Board meeting at 7:36 a.m.
Marvin Fuller,President
ATTEST:
Samuel Satterwhite,Director