04-17-2015 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, April 17, 2015 —6:30 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 6:32 a.m. Board Members present were
John Yeager, Mitch Herzog 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 JA7.7 Fest would be held rain or shine the following day
and the Taste of Wylie and the Live Auction benefiting the Christian Care Center would be held
April 27th at the First Baptist Church Events Center and encouraged the Board members to
attend.
ACTION ITEMS
ITEM NO. 1 —Consider and act upon approval of the April 15, 2015 Minutes of the Wylie
Economic Development Corporation (WEDC)Board of Directors Meeting.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
approve the April 15, 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 March 2015 WEDC Treasurer's
Report.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve the March 2015 WEDC Treasurer's Report. The WEDC Board
voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon approval of an Amendment to the Performance
Agreement between the WEDC and Getset,LLC.
Staff reviewed an existing Performance Agreement between the WEDC and Getset, LLC which
outlines a WEDC assistance package associated with the construction of a 6,700 square foot
commercial project to be located on Century Way in Wylie. The Agreement calls for Getset to
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April 17, 2015
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obtain a certificate of occupancy (CO) no later than May 1, 2015 for the contemplated
improvements.
Due to significant rain events over the last several months and continuing currently, Getset has
been delayed in their construction process. With the flat work and excavation complete, the roof
approximately 2/3 complete, and masonry to begin the week of April 20, Getset officials believe
they will be finished in June which would translate into a July 1, 2015 CO date. However, staff
recommends an amendment to the Agreement calling for an August 1, 2015 requirement for CO
so as to provide additional time for further unforeseen delays.
Staff recommended that the WEDC Board of Directors approve an amendment to a Performance
Agreement between the WEDC and Getset, LLC allowing for a CO to be permitted no later than
August 1, 2015.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Wintters to
approve an amendment to a Performance Agreement between the WEDC
and Getset, LLC allowing for a CO to be permitted no later than August 1,
2015. The WEDC Board voted 4 — FOR and 0 —AGAINST in favor of the
motion.
ITEM NO. 4—Consider an Enrichment Grant Application for improvements to a property
located at 212 S. Marble.
Staff presented a grant application from Mr. Bob Heath for enhancements to property located at
212 S. Marble (The Old Blue House). Mr. Heath is seeking assistance to `repaint the exterior' of
the house which is leased to several businesses.
As required,Mr. Heath has provided three bids for the contemplated work as follows:
1. Talent Construction - $8,108.84
2. Chuy's Painting Contractor- $7,800.00
3. Castro Painting- $9,500.00
Staff also reviewed the Guidelines which state that the Program Purpose is to assist businesses in
maintaining a well-ordered exterior appearance. The Guidelines also identify Qualified
Expenses as improvements undertaken to enhance, upgrade, or address structural issues
creating a severely distressed physical environment.
Staff stated that the request qualifies under the Program Purpose but was not distressed to a level
exhibiting structural problems. Staff further believed that this request would fall into a category
of customary maintenance that should be expected of a property owner. However, by taking this
position staff posed the question would the WEDC be rewarding a property owner for not
undertaking regular maintenance of their building so that it could get to a severely distressed
state and receive a grant?
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April 17, 2015
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Staff recommended that the WEDC fund a $3,900 Enrichment Grant to Mr. Bob Heath which is
equal to 50% of the low bid from Chuy's Painting Contractor.
The Board felt that the request technically fell within the guidelines of the Program Purpose and
agreed to fund the grant at a lesser level of 25%, or $1,950, since the scope could be considered
what would normally be considered maintenance by the property owner.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve an Enrichment Grant to Mr. Bob Heath in the amount not to exceed
$1,950 subject to the terms and conditions of the Enrichment Grant Program
Guidelines. The WEDC Board voted 4 — FOR and 0 —AGAINST in favor
of the motion.
ITEM NO. 5 — Consider and act upon a Real Estate Contract between the WEDC and the
Birmingham Land Trust for the purchase of property located at 505 S. Ballard, 507 S.
Ballard, 601 S. Ballard, 603 S. Ballard, 605 S Ballard and 607 S. Ballard, all located within
the City of Wylie, Texas.
Provided for the Board's review was a Real Estate Contract by which the WEDC will purchase 6
lots from the Birmingham Land Trust. The properties currently support single family and multi-
family rental homes with all in a significant state of disrepair. The purchase price of$409,000
was developed from an original offer of $365,000, demolition costs of $39,000, and a $5,000
management fee for the Birmingham Trust to complete the demolition prior to closing.
Staff presented that they became aware the Trust was focusing their attention on west Ballard
and divesting itself of assets on east Ballard and approached the Trust with an interest in
acquiring the sites. While staff believes this acquisition by the WEDC will be a long-term hold
in terms of securing a third party to redevelop the site, equal emphasis is given to securing the
discontinuation of the current use and cleaning up an entry point into the community.
Assuming approval of this contract, staff commented that the WEDC will place in escrow the
entire purchase price as called for in Section 11. Following WEDC acceptance of the Title
Commitment and the removal of all debris and concrete, escrowed monies will become non-
refundable.
Staff recommended that WEDC Board of Directors approve a Real Estate Contract between the
WEDC and the Birmingham Land Trust for the purchase of property located at 505 S. Ballard,
507 S. Ballard, 601 S. Ballard, 603 S. Ballard, 605 S Ballard and 607 S. Ballard, all located
within the City of Wylie, Texas and further authorize President Fuller to execute all closing
documents associated with the purchase of the same.
MOTION: A motion was made by Mitch Herzog and seconded by Todd Winners to
approve a Real Estate Sales Contract between the WEDC and the
Birmingham Land Trust for the purchase of property located at 505 S.
Ballard, 507 S. Ballard, 601 S. Ballard, 603 S. Ballard, 605 S Ballard and
607 S. Ballard, all located within the City of Wylie, Texas. Further, the
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April 17, 2015
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Board authorized WEDC President Marvin Fuller to execute all closing
documents associated with the purchase of the same. The WEDC Board
voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 6 — Consider and act upon a Chapter 380 Development Program and
Agreement between the WEDC and the City of Wylie.
Presented to the WEDC Board was a Chapter 380 Development Program and Agreement
between the WEDC and the City of Wylie. The Agreement calls for the City of Wylie to fund
$202,000 toward the outlined development program which calls for the WEDC to acquire and
market six lots on South Ballard for redevelopment. As per the Agreement, the WEDC must
complete the identification of and conveyance of properties to a third party within 30 years.
Upon the sale of each and/or all properties, the WEDC will reimburse the City 50% of the sales
price less expenses. Finally, the Agreement calls for the City to mow the properties on an as-
needed basis as determined by the City.
Staff originally approached the City Manager for assistance on this purchase due to the potential
long term hold for redevelopment of the properties understanding however that a change in use
could be important to the community.
Staff recommended that the WEDC Board of Directors approve a Chapter 380 Economic
Development Program and Agreement between the WEDC and City of Wylie and further
authorize President Fuller to execute the same.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve a Chapter 380 Economic Development Program and Agreement
between the WEDC and City of Wylie and further authorize President Fuller
to execute the same. The WEDC Board voted 4 —FOR and 0 —AGAINST
in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 7 — Staff report: review issues surrounding Performance Agreements between the
WEDC and: Woodbridge Crossing, Ascend Custom Extrusions, CSD Woodbridge, and Exco
Tooling Solutions, Jackson Street properties, ICSC 2015 National Conference, WEDC web site
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.
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April 17, 2015
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Woodbrwide Crossing
Attached for the Board's review was the Sales Tax Reimbursement Report which identifies all
sales taxes received through March 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 March 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, $85,839 was generated in sales tax in
January 2015 versus $69,774 in December of 2013. This increase represents a 23% gain over
2014 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. Therefore, a
more accurate year over year analysis will be available in May 2015
Ascend Commercial Lease and Performance Agreement
Attached for 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.
Ascend currently has 207 employees and runs 3 shifts in shipping & packing, 7" press, 8" press,
and 2 shifts in the 9" press and paint & fabrication. A 3rd shift should come on line for the 9"
and Paint& fabrication by the end of May bringing total employment to 220.
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 '/2
cent sales tax reimbursement from the WEDC (City of Wylie not part of sales tax reimbursement
agreement). Quarterly payments are made to Clark Street based upon the data provided by the
Comptroller. In addition to a $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.
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April 17, 2015
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Along with a summary of the Performance Agreement, a Sales Tax Reimbursement Report was
included for the Board's review.
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.
Jackson Street Properties
Staff reported that Demolition of the laundromat was complete with Intercon still needing to put
up a barrier/fence to keep cars from parking on the pad. Staff has also contracted to sod the area
to reduce the runoff of mud onto the alley. Intercon did go over the area with a larger
roller/magnet that picked up many screw from the metal building that was removed. Staff has
reached out to area retailers to offer reimbursement for damaged tires with no response.
Staff has also hired McCarthy Architecture to assist with a concept design for a mixed use
development for Jackson Street. Staff is eager to identify how the area will be parked and cost
estimates for a multi-story parking garage. Staff is expecting preliminary drafts on April 23rd
Staff has also met with an investment firm which is interested in developing a 3 —4 story mixed
use development utilizing new development tax credits (not to be confused with low income tax
credits).
ICSC 2015 National Conference
Board members Fuller, Yeager and Mayor Hogue will be attending ICSC May 17—20. To date
there are no specific meetings established with staff and our consultant, The Retail Coach,
diligently working on the same over the next 3 weeks.
WEDC Website and Aerial Update
The new aerial being produced will be finalized and ready to go to production by April 27th to be
completed no later than May 11th. Staff had narrowed down selection of a web site design firm
to a single candidate; however their references did not support our expectations. The WEDC
now has selected ED Suite which does business almost exclusively with EDC's across the state.
The kickoff meeting with staff is scheduled for the end of April.
Sporting Events
Staff attached a spreadsheet by which the use of Mavericks tickets is tracked.
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April 17, 2015
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Regional Housing Starts
Thirty-one homes were permitted in Wylie for March 2015. Sachse, Lavon, and Murphy
permitted a combined thirty-six homes over the same period.
No action is requested by staff for this item.
EXECUTIVE SESSION
Recessed into Closed Session at 7:25 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 2014-9b
• Project 2015-2a
• Project 2015-4a
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:
• Oak Street and Birmingham
• Cooper Drive and State Highway 78
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:30 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:30 a.m.
Marvin Fuller,President
ATTEST:
Samuel Satterwhite, Director