03-20-2015 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, March 20, 2015 —6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78—Wylie, Texas
CALL TOO ' PER
Announce the presence of a Quorum
President Marvin Fuller called the meeting to order at 6:31 a.m. Board Members present were
John Yeager, Demond Dawkins and Todd Wintters.
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 Taste of Wylie and the Live Auction benefiting the
Christian Care Center would be held April 27th at the First Baptist Events Center. She thanked
the WEDC for their sponsorship and encouraged the Board members to attend.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the February 20, 2015 Minutes of the
Wylie Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the February 20, 2015 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon approval of the February 2015 WEDC Treasurer's
Report.
The Board noted that the Inventory Sub-ledger needed to be amended to reflect the sale of the
Premiere Industrial Park property to Exco. Staff made a note of the change which will be
reflected in the March 2015 Treasurer's Report.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve the February 2015 WEDC Treasurer's Report. The WEDC Board
voted 4—FOR and 0—AGAINST in favor of the motion.
WEDC—Minutes
March 20, 2015
Page 2 of 6
ITEM NO. 3 — Consider and act upon a Real Estate Sales Contract between the WEDC
and Randal & Jacob Glenn.
Staff reviewed a Real Estate Sales Contract between the WEDC and Randal L. Glenn and Jacob
R. Glenn under which the WEDC will purchase two lots totaling 0.3047 acre for $325,000. The
WEDC is further obligated to pay 50% of the Title Policy which is approximately $1,164 and all
customary closing costs attributable to the Buyer. Finally, as per the terms of the Commercial
Lease attached as Exhibit B to the Contract, the WEDC agrees to lease the premises to Glenn for
a period of 12 months (Initial Term) at no cost to Glenn save and except any and all maintenance
and utilities. Following the Initial Term, the WEDC agrees to lease the premises on a month-to-
month basis for $1,200 per month. Either party shall have the right to terminate the lease
provided a sixty day notice is given. However, as per Section 2.4.2, should the WEDC require
Glenn to vacate the premises at any time during the Initial Term, the WEDC shall pay Glenn
$20,000.
As per the attached Contract, the purchase is scheduled to close on or about April 15, 2015.
Delaying the scheduled closing is the need for a variance due to the structure purchased being
located within the 20' setback fronting Industrial Court. Staff has initiated the application for a
variance with the City of Wylie Board of Adjustments which is scheduled for April 20th.
Assuming the variance is granted,closing will take place on or about April 27th.
Staff is recommending the WEDC pay all cash at closing. As of February 28t the WEDC had a
claim on cash of$2,168,248 with $559,567 reserved for the construction of Woodridge Parkway,
effectively reducing the claim on cash to $1,608,681. Within the FY 2014-2015 Budget, the
WEDC set aside $1,008,884 within Incentives for 'Future Projects' which in practice has been
funds set aside for unidentified projects.
Staff recommended that the Board approve the Real Estate Sales Contract between WEDC and
Randal & Jacob Glenn and further authorize WEDC President Marvin Fuller to execute all
documentation necessary to effectuate the above referenced purchase of 0.3047 acres for
$325,000.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the Real Estate Sales Contract between the WEDC and Randal &
Jacob Glenn, including the payment of 50% of the Title Policy. Further, the
Board authorized WEDC President Marvin Fuller to execute all
documentation necessary to effectuate the purchase of 0.3047 acres for
$325,000. The WEDC Board voted 4—FOR and 0—AGAINST in favor of
the motion.
DISCUSSION ITEMS
ITEM NO. 4 — Staff report: review issues surrounding Performance Agreements between the
WEDC and: Woodbridge Crossing, Ascend Custom Extrusions, CSD Woodbridge, All State
Fire, Exco Tooling Solutions, Getset LLC, The Rock Wood Fired Kitchen, Jackson Street
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March 20, 2015
Page 3 of 6
Properties, staff training, Collin County Days / Wylie Days, WEDC website and aerial update,
sporting events and regional housing starts.
Analysis
As a reminder to Board members, the Board may not discuss an item which is not specifically
identified on the agenda. Only those items listed above can be discussed. Should any Board
member want an issue be placed on the agenda at any time prior to a Board meeting, please
contact the WEDC President or staff.
Woodbridge Crossing
Attached for the Board's review was the Sales Tax Reimbursement Report which identifies all
sales taxes received through February 2015 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.
$2,754,444.52 has been reimbursed through February 2015 with net receipts of$1,916,969 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, $186,038 was generated in sales tax in
December 2014 versus $120,214 in December of 2013. This increase represents a 55% 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.
Ascend Commercial Lease and Performance Agreement
Attached for the Board's review was 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 summary of a second Performance Agreement between the
WEDC and ACE which was approved in December 2013. Payment #2 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 not part of sales tax reimbursement
WEDC—Minutes
March 20, 2015
Page 4 of 6
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 impact of The Rock Wood Fired Kitchen will not be
evident for two more months.
All-State Fire
All-State Fire had difficulties in securing financing due primarily to an inability to identify
comparable sales of properties in the area. All-State has since finalized their financing process
and will be breaking ground as soon as possible.
Exco Tooling Solutions
Exco has begun construction of its 30,000 square foot facility within Premier Business Park. All
indications point to an October completion date. As provided in the Summary of Performance
Obligations, the WEDC will fund an $87,000 incentive upon issuance of a CO followed by four
payments of$20,000 over the following four years.
Getset LLC
Getset is building a 6,700 square foot commercial structure to be located at 1303 Century Way
which is adjacent to the future site of All-State Fire. Due to the recent rains, Getset has been
delayed by several weeks in completing their project which may impact their performance
obligation of securing a certificate of occupancy no later than 5-1-15. While the contractor has
indicated that they will be done on or about 5-15-15, staff will reevaluate their progress in April
and bring back a recommendation to extend the CO requirement date.
The Rock Wood Fired Kitchen
In January, The Rock had $99,703 in alcohol sales which placed them in the top 7% in the State
of Texas for restaurants selling alcohol. The next closest entity in Wylie was Chili's at$48,890.
Jackson Street Properties
The snow and ice created a delay in completing the demolition of the laundromat which will be
finalized within the next seven business days. Just as an FYI — several merchants on the west
side of Ballard Street have contacted the WEDC and complained of screws in the alley causing
damage to customers tires. Staff made his contact information available but has not heard from
any individuals with damage as of yet.
WEDC—Minutes
March 20, 2015
Page 5 of 6
Staff Training
Staff completed the first of six classes required for becoming a Certified Economic Developer by
the International Economic Development Council. The next class is scheduled for April 9 - 10,
2015 in Atlanta.
Collin County Days/Wylie Days
Staff attended Collin County Day and Wylie Day in Austin. Collin County Day was more of a
region wide event with the Wylie Chamber of Commerce organizing a very effective Wylie only
event that created some very positive interaction with our legislators. Attending the event were
representatives from the City Council, WISD School Board, City Manager, Superintendent,
Chamber Staff, Oncor, and WEDC staff.
WEDC Website and Aerial Update
The new aerial being produced should be finalized and ready to go to production by March 27th
to be completed no later than May Pt Staff Staff has narrowed down selection of a web site designer
to two companies with a selection to be made by April 1st. A final product should be done within
10— 12 weeks.
Sporting Events
Staff attached a spreadsheet by which the use of Mavericks tickets is tracked.
Regional Housing Starts
Thirty-one homes were permitted in Wylie for February 2015. Sachse, Lavon, and Murphy
permitted a combined twenty-eight homes over the same period.
No action is requested by staff for this item.
No action is requested by staff for this item.
EXECUTIVE SESSION
Recessed into Closed Session at 7:03 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 2014-4a
• Project 2014-9b
• Project 2015-2a
• Project 2015-3a
• Project 2015-3b
WEDC—Minutes
March 20, 2015
Page 6 of 6
• Project 2015-3c
Board Member Demond Dawkins left the meeting at 7:55 a.m. and returned at 8:20 a.m.
Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act). Consider the sale or acquisition of properties located near the intersection
of:
• Ballard Street& Stone Road
• Cooper Drive & State Highway 78
• Birmingham Street and Oak Street
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:48 a.m. and took no action.
ADJOURNMENT
With no further business,President Fuller adjourned the WEDC Board meeting at 8:48 a.m.
vw
Marvin Fuller,President
ATTEST:
mrnm -
Samuel Satterwhite,Director