02-15-2008 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, February 15,2007—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 6:06 a.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.
Ex-Officio Board Members Mindy Manson and John Mondy were present.
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 January 18, 2008 Minutes of the
WEDC Board of Directors Meeting.
MOTION: A motion was made by Merrill Young and seconded by John Yeager to
approve the January 18, 2008 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 January 22, 2008 Minutes of the
WEDC Board of Directors Meeting.
MOTION: A motion was made by Merrill Young and seconded by Chris Seely to
approve the January 22, 2008 Minutes of the WEDC Board of Directors
Meeting. The WEDC Board voted 5 — FOR and 0 -- AGAINST in favor of
the motion.
ITEM NO. 3 — Consider and Act Upon Approval of the January 2008 WEDC Treasurer's
Report.
Staff explained that there was an entry in a newly created account entitled 'Bad Debt' in the
amount of$16.52. The bad debt was in essence a write off based upon an error in calculating the
employee contribution for life insurance premiums. After discussions between WEDC staff and
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February 15, 2008
Page 2 of 5
the Finance Department, it was staffs recommendation to Finance that the 'Bad Debt' entry
would be reversed out and charged against the employee earnings in April 2008.
Staff also informed the Board that the WEDC Administrative Assistant would be afforded a car
allowance starting in March 2008 as opposed to documenting mileage driven each month and
submitting an expense reimbursement request. President Fuller inquired with the City Manager
as to whether a car allowance for the WEDC Administrative Assistant would pose a procedural
or hierarchical issue at the City. The City Manager's response was no. Staff recommended that
the WEDC Board of Directors approve the January, 2008 Treasurer's Report.
MOTION: A motion was made by Chris Seely and seconded by John Yeager to
approve the January 2008 WEDC Treasurer's Report. The WEDC Board
voted 5—FOR and 0—AGAINST in favor of the motion.
ITEM NO.4—Staff Update: Review Staff Activities and Ongoing WEDC Projects.
Staff reviewed activities and ongoing WEDC projects as follows:
Direct Development/Target: The Target Executive Committee met on February 13th to
formally approve the Wylie Site. As it was approved, Direct Development will close
with Herzog Development Corporation on the I with Target closing with Direct on the
same day.
Sales Tax Training: On October 24th, 2008, the Texas Economic Development Council
will be hosting a sales tax training one-day seminar in Ft. Worth. Confirmed participants
are Mitch Herzog and Chris Seely.
International Council of Shopping `enters: On May 1 — 21, 2008, City of
Wylie/WED Wylie/WEDC representatives will be attending the annual ICSC conference in Las
Vegas, Nevada. Confirmed attendees at this time are Mayor bendy, Mitch Herzog,
Chris Seely, and staff. As the goal was in 2007 to meet with developers, the WEDC will
expand its focus to end users.
WEDC Marketing Materials: The WEDC is currently updating its aerial
photography/marketing materials. While the WEDC budgeted $8,000, staff will be
expending $8, 55. These added monies will come from the miscellaneous line item
within Marketing Materials. Staff had anticipated purchasing 500 units with 1,000 units
only adding$855 to the total cost.
Garnet Hill: Garnet Hill Skilled Living and Rehabilitation Center will be complete in
June. If board members have not seen the construction in the past several months, it is
worth the time. The change to the area is dramatic. Garnet Hill is approximately 2 miles
north of F.M. 544 on McCreary Road.
Request from city of Wylie Finance Department: Finance, at the request of City
auditors, has requested that the WEDC attempt to ascertain a more definitive estimate of
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February 15, 2008
Page 3 of
value when entering into Promissory Notes with prospects for the sale of WEDC land.
For example, JTM land was valued at $2.25 per square foot based on staffs assessment
of market value. Further, the WEDC is valuing land in the Savage project at $2.50 per
square foot. Staff has identified a commercial appraiser which will write a letter that
states that the 'WED 's estimate of market value is within a realistic range of value for
the identified area.'
Finance has also requested that the WEDC require companies receiving incentives from
the WED /City fill out a 1099 so that the as can track those incentives and tax them
accordingly. Staff is more than willing to comply with the request, but believes that
incentives are not taxable. Staff is seeking out a qualified opinion.
Green way Tax Abatement Agreement: The Collin County Commissioners Court will be
considering participating in the Greenway Tax Abatement Agreement in March. While
the County will only participate at 50%, their participation will lessen the amount the
Wylie community will have to participate being that a cap is in place on the total amount
of incentives provided to the project from the City, WED , and any other participating
taxing entity.
Kansas City Southern Railway Company: Staff is still pursuing the purchase of a small
T tract from the KCS which was approved in November 2007. Staff has attempted to speed
up the process with no success.
Staff recently employed a contractor to mow the KCS right-of-way on F.M. 544 from
CV, past Westgate Way to the Sanden property line, While staff understands the
WEDC does not maintain private property, in this case, staff believes it would not have
been accomplished otherwise and the expense greatly enhances the aesthetic appeal of
State Highway 78. The cost to the WED was$750,
No action was requested by staff for this item.
EXECUTIVE SESSION
The WEDC Board of Directors convened into Executive Session at 6:33 a.m.
I. Consider and Act Upon Issues Surrounding a Letter of Intent Between the WEDC and
Savage Precision Fabrication, Inc. as Authorized in Section 551.087 (Economic
Development Negotiations) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
II, Consider and Act Upon Issues Surrounding the Purchase of Property 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 Purchase of Property Located on State
Highway 78 Between Brown Street and Ballard Avenue as Authorized in Section 551.072
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February 15,2008
Page 4 of 5
(Real Property) of the Local Government Code, Vernon's Texas Code Annotated (Open
Meetings Act).
IV. Consider and Act Upon Issues Surrounding a Letter of Intent Between the WEDC and
T.W. Snider and Associates as Authorized in Section 551.087 (Economic Development
Negotiations) of the Local Goverment Code, Vernon's Texas Code Annotated (Open
Meetings Act).
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:33 a.m.
Actions taken from Executive Session:
1. Motion made to authorize Board President to enter into Letter of Intent approving
amendments to:
1 (b)WEDC(b)WED shall reimburse Savage for moving costs associated with the relocation of
equipment, inventory, and fixtures in an amount up to Two Hundred Four Thousand,Three
Hundred Fifty-Seven dollars ($204,357. ; ; -; :. .}+ - . . - A-•
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F The reimbursement will
be funded in five (5) equal and annual installments with the first installment paid at the
issuance of the CO and continuing thereafter provided that Savage is not in Default of
terms outlined in the Performance Agreement.
I (c) WED WEDC shall cause to have waived by the City of Wylie, or pay in lieu of waiver, all fees
associated with Building Permit Fee, Plumbing, Mechanical, & Electrical Permit Fees, Fire
Inspection Fee, Fire Department Plan Review Fee, and all other inspection fees not
specifically named with the exception of Fire Development Fee, Thoroughfare Impact Fee,
and Water & Sewer Impact Fees, and third party review of Fire Sprinkler & Fire Alarm
plans. ■ ■ ■ a
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(b) The Facility, along with the Property, and all taxable personal property located on the
Property, will be appraised each year by the Collin County Central Appraisal District at no
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etween Raymond
Censtfuction and Savago< at a minimum value to be mutually agreed upon by WEDC and
Savage prior to execution of a Performance Agreement. Savage acknowledges that the
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February 15, 2008
Page 5 of 5
minimum value originally contemplated by TVEDC was ,051.443. Savage further
acknowledges that should the final value mutually agreed upon by all parties for pwposes
of establishing a minimum valuation be lower than 4,051,443, the WEDC may reevaluate
the total incentives granted to Savage.
MOTION: A motion was made by Mitch Herzog and seconded by Merrill Young to
authorize Board President to issue a Letter of Intent with Savage Precision
Fabrications, Inc. with the above mentioned amendments. The WEDC
Board voted 5--FOR and 0—AGAINST in favor of the motion.
No further action was taken as a result of discussions held in Executive Session.
ADJOURNMENT
With no further business, President Marvin Fuller adjourned the WED WEDC Board meeting at 8:35
a.m.
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Marvin Fuller, President
ATTEST:
amuel D.R. Satterwhite
Executive Director