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05-15-2015 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting May 15, 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 6:35 a.m. Board Members present were John Yeager, Mitch Herzog, Demond Dawkins and Todd Wintters. Ex-officio member Eric Hogue, Mayor and Mindy Manson, City Manager was present. WEDC staff present was Executive Director Sam Satterwhite and Sr. Assistant Angel Wygant. CITIZEN PARTICIPATION Lynn Grimes informed the Board that RaceTrac had received an award for the number one store in this region. RaceTrac is extremely involved in the Community of Wylie and the citizens seem to be recognizing and rewarding that involvement. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the April 28, 2015 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to approve the April 28, 2015 Minutes of the Wylie Economic Development Corporation. The WEDC Board voted 5 —FOR and 0 —AGAINST in favor of the motion. ITEM NO. 2 — Consider and act upon approval of the April 2015 WEDC Treasurer's Report. Staff noted a typographical error on the Expense Report for WEDC Executive Director to the Board's attention. 'John Yeager Mcllvain' should have read John Mcllvain. MOTION: A motion was made by John Yeager and seconded by Todd Wintters to approve the April 2015 WEDC Treasurer's Report as amended. The WEDC Board voted 5—FOR and 0—AGAINST in favor of the motion. WEDC—Minutes May 15, 2015 Page 2 of 6 ITEM NO. 3 — Consider and act upon an Amendment to the Performance Agreement between the WEDC and All State Fire Equipment, Inc. Staff summarized the Performance Agreement between the WEDC and All State Fire Equipment calling for a 9,300 square foot office/warehouse project with a contemplated valuation of$1.175 mm. Upon satisfying the agreed upon performance measures, All State will be eligible for a cumulative $60,000 incentive package from the WEDC over a three year period. As per Section II a. 1), All State must receive a Certificate of Occupancy (CO) from the City of Wylie no later than December 31, 2015. Due to previously discussed difficulties surrounding financing, All State will not even begin construction until July 2015. Staff is certain that All State has been pursuing completion of the project with all reasonable efforts and that most, if not all, of the delays have been outside of their control. With that in mind, staff believes that an extension of the date by which All State must receive a CO is in order. Staff recommended that the WEDC Board of Directors approve an amendment to a Performance Agreement between the WEDC and All State Fire Equipment, Inc. allowing for an extension of the date by which a CO must be issued from December 31, 2015 to August 1, 2016. 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 All State Fire Equipment, Inc. allowing for an extension of the date by which a CO must be issued from December 31, 2015 to August 1, 2016. The WEDC Board voted 5—FOR and 0—AGAINST in favor of the motion. ITEM NO. 4 — Consider and act upon issues surrounding a Treasury Management Resolution for American National Bank. Staff reminded the Board that the WEDC recently converted to ACH payments rather than checks to make payments on its loans to American National Bank. The City of Wylie Finance Department has requested that the WEDC establish online access to these loans in order to verify proper posting of payments. American National Bank has agreed to establish on-line access but requires approval from the WEDC Board of Directors via the attached Treasury Management Resolution before such access can be granted. The loans affected by this Resolution are: • ANB Loan number: 88122627 (Martinez) • ANB Loan number: 88130968 (Hughes/Randack) • ANB Loan number: 88130976 (Woodbridge Parkway) • ANB Loan number: 88148481 (Buchanan) • ANB Loan number: 88149711 (Peddicord/White) Staff recommended that the WEDC Board of Directors approve a Treasury Management Resolution permitting staff to access and verify loan payments to ANB. WEDC—Minutes May 15, 2015 Page 3 of 6 MOTION: A motion was made by Demond Dawkins and seconded by John Yeager to approve a Treasury Management Resolution permitting staff to access and verify loan payments to American National Bank. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 5 — 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 personnel needs, 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 Woodbridge Crossing Attached for the Board's review was the Sales Tax Reimbursement Report which identifies all sales taxes received through April 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. $2,839,483 in reimbursements has been earned through April 2015 with net receipts of $1,920,530 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, $88,599 was generated in sales tax in February 2015 versus $79,100 in February 2014. This increase represents a 12% 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, the year over year gain of 12%represents an accurate comparison. 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 WEDC—Minutes May 15, 2015 Page 4 of 6 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 '/2 cent sales tax reimbursement from the WEDC (City of Wylie 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. Exco Tooling Solutions Exco has begun construction of its 30,000 square foot facility within Premier Business Park. While all indications pointed to an October completion date, the 28 rain days over the last 10 weeks have pushed back the date. A CO is required by January 31, 2016 which is still obtainable but staff may present an amendment to the Board if significant rain delays continue. 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 WEDC and City staff have been working with McCarthy Architects to develop draft schematics to present to the Board. Following ICSC, staff will schedule a presentation to the Board by McCarthy Architects. ICSC 2015 National Conference Staff reported that the appointments set to date were promising and more would follow. Board members Fuller, Herzog, Yeager, and Mayor Hogue would be attending the Conference which begins Sunday, May 17t . WEDC—Minutes May 15, 2015 Page 5 of 6 WEDC Personnel Needs Staff reported that a third staff position for the WEDC will be proposed in the FY 2015 — 2016 Budget process which will begin in June. The proposed position will be an `Assistant Director' with a job description to be presented within the budget process as well. Staff is suggesting this addition so that the WEDC can become more efficient with the Senior Assistant focusing on administrative duties, the Assistant Director focusing on the oversight of existing projects along with research and development of new projects, and the Executive Director able to focus on new business development. The goal will be to increase our ability to secure new projects to justify the added expense. For analysis sake, a $50,000 salary will create a total annual liability of $76,000 plus the need for an additional office. Staff reiterated that should the Board care to consider increasing staffing levels based upon the evaluation of current job descriptions and a proposed job description for a new position, staff would continue in that direction. Should the Board believe that current staffing levels were adequate, no further action will be necessary. WEDC Website and Aerial Update The new aerial has been finalized and was delivered on May 14`h. Staff had a kick-off meeting with ED Suite to redesign the WEDC web site. Completion of the web site will take several months. Sporting Events Staff attached a spreadsheet by which the use of Mavericks tickets are tracked. With no remaining games the Sporting Events spreadsheet will no longer be included within the Staff Report. Regional Housing Starts Fifty-seven homes were permitted in Wylie for April 2015. Sachse, Lavon, and Murphy permitted a combined twenty-six homes over the same period. No action is requested by staff for this item. EXECUTIVE SESSION Recessed into Closed Session at 7:08 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). WEDC—Minutes May 15, 2015 Page 6 of 6 Board Member Herzog left the meeting at 7:08 a.m. due to a potential conflict of interest on Project 2014-9b. He returned at 7:15 a.m. following the conclusion of discussion on that project. • Project 2014-9b • Project 2015-2a • Project 2015-4a • Project 2015-5a 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: • Birmingham and Oak • Cooper Drive and State Highway 78 Ex Officio Member Hogue left the meeting at 7:11 a.m. and did not return. Board Member Demond Dawkins left the meeting at 7:53 a.m. and did not return. RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:14 a.m. and took no action. ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 8:16 a.m. Marvin Fuller,President ATTEST: Samuel Satterwhite, Director