11-18-2014 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday,November 18,-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 7:02 a.m. Board Members present were
John Yeager, Mitch Herzog, Demond Dawkins and Todd Winners.
Ex-officio member Mindy Manson, City Manager was present.
WEDC staff present was Executive Director Sam Satterwhite and Sr.Assistant Angel Wygant.
CITIZEN PARTICIPATION
Lynn Grimes reminded the Board that the Christian Care luncheon at St. Anthony's was being
held later that day and encouraged the Board Members to attend and support the event.
ACTION ITEMS
ITEM_NO. 1 - Consider and act upon approval of the November 7, 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 November 7, 2014 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 5 FOR and 0 -
AGAINST infavor of the motion.
ITEM NO. 2 Consider and act upon approval of the October 2014 WEDC Treasurer's
Report.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Winners to
approve the October 2014 WEDC Treasurer's Report. The WEDC Board
voted 5—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon issues surrounding a joint advertising program
between the WEDC and the Downtown Merchants Association.
Staff reminded the Board that for the past three .years the WEDC has participated in an
advertising program for the benefit of Historic Downtown Wylie. Under the terms of the
Agreement, following the expenditure of at least $10,000 on advertising by the Merchants
Association to promote downtown, the WEDC will reimburse the Merchants Association up to
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November 18, 2014
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50% with a maximum of $5,000. The program has been successful to date with increased
advertising dollars spent to promote downtown Wylie.
During the transition to a new Treasurer for the Merchants Association, there was a
miscommunication as to the funding requirements which must be completed and submitted by 9-
30-14. Staff explained that the new Treasurer believed that the documentation was required to
be submitted by 10-31-14. Staff reported that the expenses took place within the required fiscal
year and that the submission of $14,000 in advertising expenses should qualify for
reimbursement up to the maximum $5,000. Anticipating a second request for funding in
September 2015, staff believed that the WEDC Board of Directors should increase the
advertising budget for this line item from $5,000 to $10,000 for FY 2104-15.
Staff recommended that the WEDC Board of Directors approve total program expenditures of
$10,000 for the joint advertising program between the WEDC and Downtown Merchants
Association for FY 2014-15. Board Member Herzog and Fuller inquired as to whether any
reimbursements were made in FY 2013-14 to which staff answered that there were none.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve total
program expenditures of $10,000 for a joint advertising program between the
WEDC and Downtown Merchants Association for FY 2014-15. 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
2014-15.
Staff informed the Board that the Insurance Policy has now been finalized for the WEDC
property being leased by Exco Tooling Solutions ($4,015.0) which was not planned for in the FY
2014-15 WEDC Budget. Additionally, the Insurance assessment from the City of Wylie was
$105 more than anticipated for FY 2014-15.
Also, based upon the assumption that the Board approves the previous Action Item in regard to
advertising reimbursements to the Merchants Association, the Advertising budget must be
increased by $5,000.
Staff recommended that the WEDC Board of Directors approve Budget Transfer Request
EDC10-28-14 in the amount of$9,120.00.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve Budget Transfer Request EDC10-28-14 in the amount of$9,120.00.
The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 5 — Discuss issues surrounding an amendment to a Performance Agreement between
the WEDC and The Wedge Corporation.
Staff reminded the Board that in order to qualify for Incentive Payment No. 2 ($137,500), The
Wedge Corporation must receive a Certificate of Occupancy and be operational no later than
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November 18, 2014
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December 31, 2014 and provide documentation verifying Qualified Infrastructure cost of at least
$275,000. While the Rock is still committed to a December 28, 2014 opening date, staff believes
that a 30 day extension of the December 31st deadline should be considered.
Staff requested authority from the Board to amend Section IIb of the Performance Agreement to
allow for "Documentation of receipt of a final CO from the City for the Facility and evidence
that the Company is occupying and operating the Facility on or before January 31, 2015.
Board Member Herzog was hesitant to consider any extension based upon there being six more
weeks prior to December 31st and the 30 day request may turn into a 45 or 60 request based upon
unforeseen circumstances. President Fuller agreed and believed the Board should reevaluate the
issue at the December Board Meeting.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
Table this item until the December 19, 2014 WEDC Board Meeting. The
WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 9 — Staff report: reviewed issues surrounding Performance Agreements between the
WEDC and: Woodbridge Crossing, Ascent Custom Extrusions, CSD Woodbridge, Dank Real
Estate, Swimcat, RLK Xleration, WEDC promotional activities, Enrichment Grants (Taste of
Home & Bob Heath Enterprises), B&B Theatres Operating Company, City of Wylie 19 acres,
Jackson Street properties, sporting events, and regional housing starts.
Woodbridge Crossing
Attached for the Board's review was the Sales Tax Reimbursement Report which identifies all
sales taxes generated through September 2014 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. Due to the default under the Amended and Restated
Performance Agreement, Woodbridge Crossing is only eligible to receive up to $6 million in
sales tax reimbursement through September 2021 as opposed to the maximum reimbursement of
$12 million originally contemplated.
$2,557,635 was eligible for reimbursement through November with net receipts of $1,710,067
after reimbursements. As well, it is estimated that $2.5 mm has been paid in ad valorem taxes to
the City of Wylie (excluding the WISD).
As shown on the Sales Tax Reimbursement Report, $117,148.19 was generated in sales tax in
September 2014 versus $68,431.50 in September of 2013. This increase represents a 71% gain
over 2013 receipts. The Board will recall though that many businesses were not being tracked
properly by the Comptroller which was identified and corrected in February 2014.
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November 18,2014
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Ascend Commercial Lease and Performance Agreement
Staff reviewed the Ascend Custom Extrusion Critical Dates Analysis and Performance
Agreement Monitoring Procedures. Payment #4 of 5 for the Economic Incentives has been
funded with Ascend meeting_all Performance Obligations within Sections A and B of the
attachment.
Also attached for review was the Performance Agreement between the WEDC and ACE which
was approved in December 2013. Payment #1 of 4 has been funded with Ascend meeting all
Performance Obligations within Section A of the attachment.
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 is eligible to receive a-Y2
cent sales tax reimbursement from the WEDC (City of Wylie is not part of sales tax
reimbursement agreement). Quarterly payments will be made to Clark Street based upon the
data provided by the Comptroller. In addition to the $100,000 reimbursement incentive paid by
the WEDC at CO, Clark Street is eligible to receive cumulative incentives of$1,100,000 over the
life of the Agreement.
Along with a summary of the Performance Agreement, a Sales Tax Reimbursement Report was
included for the Board's review. The Board noted that the August receipts fell dramatically,
most likely due to Kroger not being included within the report. The only logical explanation for
the decrease is that Kroger must pay quarterly.
Dank Real Estate (Deanan Gourmet Popcorn)
Deanan Gourmet Popcorn received its certificate of occupancy on October 14t. Barbara Hodge,
President of Deanan Gourmet Popcorn has indicated they will pay their property taxes in
November and provide documentation of such. Upon confirmation of payment, the WEDC will
fund a $15,000 incentive payment. Deanan is eligible to receive an additional $15,000 over the
next two years should they remain in compliance with the Performance Agreement.
The WEDC Board has been invited to an Open House event on November 22°d from 5:30 p.m. to
8:30 p.m. in Deanan's new facility located at 216 Windco Cir.
Swimcat
Mr. Rush has completed the exterior of his building on Westgate and is nearing completion of
interior finish out. With the 60 day extension on completion, Mr. Rush should not encounter any
further delays.
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November 18, 2014
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RLK Xleration
Meineke (RK Xleration) held its grand opening on Monday, November 10th. With all
obligations met under the Performance Agreement, the WEDC issued a check to Mr. Kirk in the
amount $20,000.
WEDC Promotional Activities
Staff informed the Board that they had approached the Mesquite Rodeo and inquired about an
opportunity for the WEDC to host an event in 2015 for up to 150 guests of the WEDC to
promote Wylie. Along the same rationale as hosting the WEDC Invitational, staff believes the
Mesquite Rodeo would be an opportunity for elected officials, local business leaders, and the
development community to gather and encourage investment in Wylie. Staff met with a
Corporate Sales Representative on 11-17-14 and believes the opportunity to be an excellent
opportunity to network with current and potential business contacts and promote the City of
Wylie.
Enrichment Grants
After completing all requirements under the Agreement, a payment was made to Taste of Home
in the amount of$10,000. Mr. Bob Heath has ordered awnings contemplated within the Letter
Agreement dated 8-25-14. Staff approached Mr. Heath and discussed issues surrounding
residential uses within his building and further informed him that the WEDC would not be
rescinding its commitment based upon a staff oversight regarding program guidelines.
B&B Theatres Operating Company
On November 11, 2014 the Wylie City Council voted 6-1 declaring B&B in Default of a Retail
Development Agreement. Staff has delivered an Amended Performance Agreement to B&B and
is awaiting their approval. Upon receipt of the same, staff will process a $25,000 grant and
reimbursement of sales tax.
City of Wylie 19 acres
PBK will be facilitating a joint planning session between the Wylie City Council and the WEDC
Board of Directors on January 27, 2015. Please mark your calendars accordingly.
Jackson Street Properties
On November 11, 2014, the Wylie City Council accepted the WEDC bid to purchase the
Peddicord Center and further authorized the pledging of sales tax to secure a loan with ANB to
purchase the same. The Council was very supportive of WEDC efforts on this project and looks
forward to participate in the planning process for future development in the downtown area.
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November 18, 2014
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Sporting Events
Staff attached a spreadsheet by which the use of Mavericks tickets is tracked.
Regional Housing Starts
Twenty-one homes were permitted in Wylie for October 2014. Sachse, Lavon, and Murphy
permitted a combined thirty-one homes over the same period.
No action is requested by staff for this item.
Mindy Manson departed at 7:30 am.
EXECUTIVE SESSION
Recess into Closed Session at 7:31 in compliance with Section 551.001, et.seq. Texas
Government Code, to wit:
Board Member Dawkins left the meeting at 7:52 a.m.
Board Member Herzog left the meeting at 8:25 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).
6 Project 2014-11a
• Project 2014-9b
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:29 a.m. and took no action.
ADJOU' MENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:29 a.m.
Marvin Fuller, President
ATTEST:
Samuel Satterwhite, Director