01-22-2008 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Tuesday, January 22,2008—5:00 P.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 5:08 p.m. Board Members present were: John
Yeager, Merrill Young, Mitch Herzog, and Chris Seely.
Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry Harris.
Randy Hullett, attorney with Abernathy, Roeder, Boyd &Joplin, P.C. was present.
CITIZEN PARTICIPATION
There being no citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. I — (Motion to Remove From Table) Consider and Act Upon Authorizing
President Fuller to Execute a Performance Agreement with Woodbridge Crossing, L.P.
MOTION: A motion was made by Merrill Young and seconded by Mitch Herzog to
remove consideration of a Performance Agreement with Woodbridge
Crossing, L.P. from the table. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
Staff presented changes to the Performance Agreement between the WEDC and Woodbridge
Crossing, L.P. as presented on January 18, 2008.
During the Initial Phase of the project the Agreement states that Direct Development will have
completed the construction of 280,000 square feet by August 1, 2009, with a Super Target of
185,000 square feet as well as 1,000 parking spaces to support the second anchor and in-line
development on the east side of Woodbridge Crossing. Mr. Fuller asked what percentage of the
total development are the 1,000 parking spaces. Staff explained that 1,000 parking spaces
represented approximately 75% of the parking required for the second anchor and adjacent in-
line development. The only remaining parking to be constructed will be those spaces required to
support the end cap. The Second Phase of Woodbridge Crossing will have a cumulative total of
530,000 square feet constructed no later than August 1, 2011.
The appraised value for all phases of Woodbridge Crossing is required to be at least 3 million
no later than the first tax year following completion of the Second Phase. Mr. Herzog questioned
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January 22, 2008
Page 2 of 3
the consequences if the development failed to reach their goal. Staff explained that while the
developer will not be required to repay any incentive previously reimbursed, Woodbridge
Crossing, L.P. will be in default and no further sales tax reimbursement will be payable.
Staff detailed the infrastructure improvements required to be completed by the developer as:
1. McCreary Road—6,500 linear feet, 4 lanes to the south property line of the landfill, 2
lanes to Sachse Farms, and
2. Springwell Parkway— 1,030 linear feet to the southern property line, 4 lanes, and
3. Traffic signals at McCreary, Springwell, and the central entrance, and
4. Underground electric lines fronting F.M. 544 at an estimated cost of±$ 00,o o,
The sales tax reimbursement, as identified within the Agreement, in year I through year 4, the
developer will receive 85% of the sales taxes generated from Woodbridge Crossing, based upon
the collection of the 'A% sales tax currently dedicated to economic development. Years
through 12, the developer will receive 65% of the sales taxes generated from the 1/2% sales tax
collection. The City has agreed to waiver all development fees associated with lots 1, 2, 6, 7, 8,
9, 14, and 17 as per the Development Plan. No fees will be waived for Lots 3, 4, 5, 10, 11, 12,
13, 15, and 16. Cumulative sales taxes reimbursed by the City and WEDC are capped at $12
million subject to an addendum to this agreement increasing the cap by the net cost of placing
the overhead utilities underground.
Staff indicated that the start date of the agreement will begin 60 days following the issuance of a
Co for Super Target. The end date of the agreement will be 12 years from the Start Date,
subject however to the$12 million cap.
Staff related that the WEDC acknowledges that portions of this property will be sold to third
parties. The WEDC will also acknowledge that should the law change disallowing this type of
incentive agreement, the City, WEDC, and the developer will negotiate in good faith to meet the
intent of the Agreements. Staff also noted that Target is not a party to this Agreement. The
Agreement will be terminated should the performance measures not be met by the developer
with future sales tax reimbursements being discontinued. Staff concluded that the Agreements
may not be assigned without the written consent of the City/WEDC. Finally, staff indicated that
the Wylie City Council will be considering a similar agreement at 6:00 p.m. the same evening.
Staff recommended authorizing President Fuller to execute a Performance Agreement with
Woodbridge Crossing, L.P.
MOTION: A motion was made by John Yeager and seconded by Chris Seely to
Authorize President Fuller to Execute a Performance Agreement with
Woodbridge Crossing, L.P. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
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January 22,2008
Page 3 of
ADJOURNMENT
With no further business, President Marvin Fuller adjourned the WEDC Board meeting at 5:34
p.m.
—1/048/11
Marvin Fuller, President
ATTEST:
Samuel . . Satterwhite
Executive Director