11-07-2014 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday,November 7, 2014 - 7:00 A.M.
WEDC Offices--Conference Room
250 South Highway 78 —Wylie, Texas
CALL TO ORDER
Announce the presence of a Quorum
President Marvin Fuller called the meeting to order at 7:04 a.m. Board Members present were
John Yeager, Mitch Herzog and Todd Wintters.
Ex-officio members City Manager Mindy Manson and Mayor Eric Hogue were present.
WEDC staff present was Executive Director Sam Satterwhite and Sr. Assistant Angel Wygant.
CITIZEN PARTICIPATION
Lynn Grimes informed the Board that the Wylie Downtown Merchants Association (WDMA)
had decided that its long-term plans were to incorporate Jackson Avenue into the Downtown
area. Downtown aesthetics (lamp posts, benches and plants) would eventually be extended to
Jackson to incorporate them into the downtown area. Board President Marvin Fuller thanked
Ms. Grimes for attending Board Meetings and for her continuing support of the Wylie Economic
Development Corporation.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the October 24, 2014 Minutes of the
Wylie Economic Development Corporation (WEDC)Board of Directors Meeting.
Staff presented an amended version of the minutes reflecting that Board Member Herzog left the
meeting at 7:46 a.m. due to a conflict of interest relating to Project 2014-9b.
MOTION: A motion was made by Todd Winners and seconded by John Yeager to
approve the October 24th, 2014 Minutes of the Wylie Economic
Development Corporation as amended. The WEDC Board voted 4 — FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon a Certificate of Corporate Resolution approving the
terms and conditions of the Loan Documents, including but not limited to a Loan
Agreement, Promissory Note, and Security Agreement in order to borrow the sum of
$722,365 from the American National Bank of Texas to fund a portion of the purchase
price for land and improvements located at 100 West Oak Street, 108 and 110 Jackson
Avenue, and a 6.6 acre tract on Alanis Drive in addition to the pledge of sales and use tax
received by the WEDC as a security for the loan.
WEDC—Minutes
November 7, 2014
Page 2 of 4
Staff presented documents to formalize the Loan between the Wylie Economic Development
Corporation (WEDC) and The American National Bank (ANB) to purchase the Batt Peddicord
Community Center ($338,000), the City—owned parking lot on Jackson Avenue ($144,656), and
6.52 acres from Shirley White ($420,000). The Loan Agreement calls for the borrowing of
$722,365 with the WEDC paying cash for the remaining 20% of the purchase price equaling
$180,591 ($24,187.80 has already been paid to the City of Wylie as Earnest Money). The
current Land budget has $275,812 available.
Following the consideration and acceptance of the WEDC bid on November 1 lth,the Wylie City
Council will be required to authorize, via resolution, the WEDC entering into debt in the amount
of$722,365 along with the pledge of sales tax receipts as security for said Loan with ANB.
The Loan Commitment provided by ANB on October 2, 2014 provided for a 4.20%fixed rate for
5 years with either a 5 or 10 year amortization. The attached Loan documents reflect a 10 year
amortization with a balloon payment on the 60th installment. At the request of staff, the ANB
Loan Committee approved a commitment for an additional 5 years based upon the Federal Home
Loan Bank rate plus±2.5%.
The Promissory Note calls for monthly payments of $7,383.30 ($88,600 annually). Staff
reported that the WEDC budgeted for annual debt service of $85,068 associated with these
projects with the variation a result of a slightly different interest rate. The Loan documents also
require the WEDC to maintain a cash flow coverage ratio of 1.0 times. The projected ratio as
calculated by ANB is 1.19.
Staff recommended that the WEDC Board of Directors approve a Resolution approving the
terms and conditions of the Loan Documents, including but not limited to a Loan Agreement,
Promissory Note, and Security Agreement in order to borrow the sum of $722,365 from the
American National Bank of Texas to fund a portion of the purchase price for land and
improvements located at 100 West Oak Street, 108 and 110 Jackson Avenue, and a 6.52 acre
tract on Alanis Drive in addition to the pledge of sales and use tax received by the WEDC as
security for the loan,further authorizing WEDC President Fuller and WEDC Secretary Yeager
to execute all documents necessary to effectuate the Loan Documents.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Winners to
approve a Resolution approving the terms and conditions of the Loan
Documents including, but not limited to, a Loan Agreement, Promissory
Note, and Security Agreement in order to borrow the sum of$722,365 from
the American National Bank of Texas to fund a portion of the purchase price
for land and improvements located at 100 West Oak Street, 108 and 110
Jackson Avenue, and a 6.52 acre tract on Alanis Drive in addition to the
pledge of sales and use tax received by the WEDC as security for the loan,
further authorizing WEDC President Fuller and WEDC Secretary Yeager to
execute all documents necessary to effectuate the Loan Documents. The
WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion.
WEDC—Minutes
November 7, 2014
Page 3 of 4
ITEM NO. 3 —Consider and act upon an application for a WEDC Enrichment Grant from
Bob Heath Enterprises.
Staff presented a Grant application from Bobby Heath, Owner of Bob Heath Enterprises, for
installation of a 60" round exterior window on the front of his building located at 201 North
Ballard. With no drawing or diagram provided, the proposed window would be placed to the
right of the primary entrance on Ballard Street.
Two bids for the contemplated work were as follows:
1. Talent Construction LLC - $3,648.25
2. Guillermo Alvarez - $3,160.
Staff inspected the building location and discussed the installation of this window with Mr.
Heath. The window is proposed to beautify the property and allow natural light into the interior
of the building.
There was much discussion surrounding whether the window represented a significant
improvement or was a minor cosmetic improvement which had little benefit to the enhancement
of the exterior appeal or structural integrity. Staff ultimately recommended that the WEDC
Board of Directors deny the request by Mr. Heath for an Enrichment Grant.
A Board Member commented that there may be a single family apartment being rented out on
the second floor at this location and that if so a project is not eligible to receive funds should it
have a residential component under the existing Guidelines. Staff indicated that this information
had not been provided and would follow up on its accuracy.
MOTION: Subject to a confirmation of a residential component within the Heath office
building, a motion was made by Todd Winners and seconded by John
Yeager to deny Mr. Heath's request for an Enrichment Grant. The WEDC
Board voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4 — Discuss issues surrounding a date change for the regularly scheduled
WEDC Board Meeting in November.
Staff informed the Board that two Board Members would not be available on the date of
November 21st or on November 20th for a Board Meeting and asked Board Members to review
their calendars to determine if either November 18th or 19th would be acceptable for an alternate
Board Meeting date.
It was decided that the Board Meeting would be held on November 18th.
WEDC—Minutes
November 7, 2014
Page 4 of 4
ITEM NO. 5 — Discuss issues surrounding the purchase of iPads for the purpose of
producing paperless agenda packets for WEDC Board Meetings.
In order to convert to paperless agenda packets, the WEDC will need to purchase electronic
devices for Board Members. Staff proposed that WEDC purchase devices to be used for this
purpose. The Board agreed that electronic packets would be preferable and Staff committed to
investigate available options and make a recommendation to the Board at a future meeting along
with a budget amendment for the unbudgeted expenditure.
EXECUTIVE SESSION
Recess into Closed Session at 7:36 in compliance with Section 551.001, et.seq. Texas
Government Code, to wit:
Board Member Herzog left the meeting at 7:36 a.m. due to a conflict of interest relating to
project 2014-9b.
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas
Code Annotated(Open Meetings Act).
• Project 20 14-9b
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 7:40 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 7:40 a.m.
Marvin Fuller, President
ATTEST:
Samuel Satterwhite,Director