09-21-2015 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Monday, September 21, 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 members Mayor Eric Hogue and City Manager Mindy Manson were present.
WEDC staff present was Executive Director Sam Satterwhite.
CITIZEN PARTICIPATION
Mr. Fuller welcomed Lynn Grimes and Tommy Pulliam. Lynn Grimes thanked the WEDC for
purchasing 106 N. Birmingham and cleaning up the property. She felt this purchase contributed
to the beautification of Historic Downtown Wylie. She also thanked the City of Wylie Staff and
Code Enforcement for helping to save the home next door to the WEDC property on N.
Birmingham. She informed the Board that the property would be going before the Historic
Review Board for certification as a Historic Property. Once that is complete, renovation of the
property will commence.
With no further citizen participation, Mr. Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the August 19, 2015 Minutes of the
Wylie Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and seconded by
Todd Wintters to approve the August 19, 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 August 2015 WEDC Treasurer's
Report.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the August 2015 WEDC Treasurer's report. The WEDC Board
voted 5 —FOR and 0—AGAINST in favor of the motion.
WEDC—Minutes
September 21, 2015
Page 2 of 12
ITEM NO. 3 — Consider and act upon issues surrounding a Performance Agreement
between the WEDC and VIAA Properties,LLC
Staff reviewed that in March 2015, the WEDC Board of Directors authorized Staff to negotiate a
Performance Agreement with Dr. Vinay Kumar, owner of Wylie Village Dentistry. Staff stated
he completed negotiations but did not formalize the discussions with a Performance Agreement.
Presented for the Board's review was a Performance Agreement between Dr. Kumar (VIAA
Properties, LLC) and the WEDC. The Agreement calls for VIAA to construct a minimum 8,352
square foot medical office building with a minimum construction cost of$1.3 mm. A Certificate
of Occupancy (CO) must be issued by the City of Wylie no later than February 28, 2016.
Further VIAA must achieve a minimum appraised value of $1,000,000 the year after a CO is
issued.
At issuance of CO the WEDC will issue incentive Payment #1 of 2 in the amount of$30,000.
Twelve months following issuance of CO, Payment #2 of 2 in the amount of $20,000 will be
issued for a total incentive package of$50,000.
It is estimated that the property will generate $10,700 annually in property taxes for the City of
Wylie and $20,500 for the WISD. Also, the project generated $51,108 in development fees to
the City of Wylie.
Staff recommended that the WEDC Board of Directors approve a Performance Agreement
between the WEDC and VIAA Properties, LLC.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
approve a Performance Agreement between WEDC and VIAA Properties,
LLC. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 4 — Consider and act upon issues surrounding the creation of a new position
within the WEDC posting a job description and establishing a salary and benefits.
Staff commented that the WEDC had budgeted for a WEDC Assistant Director position with an
annual salary of $50,000, car allowance of $1,500 and phone allowance of $1,500. A job
description and essential job functions were presented for Board review which will ultimately be
forwarded to the Texas Economic Development Council for posting on its website. Staff
anticipates leaving the job posting open until filled and projects beginning the interview process
on or about November 15 . Staff anticipates developing a short list of candidates and creating
an interview panel to include a representative from the City Manager's office. Staff indicated
that the Board President Fuller will be consulted with prior to the job being offered.
Staff recommended that the WEDC Board of Directors authorize the job description to be
posted, approve an annual salary range of $45,000 - $50,000 with benefits, and authorize the
Executive Director to begin the interview process.
WEDC—Minutes
September 21, 2015
Page 3 of 12
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
authorize the job description to be posted, approve an annual salary range of
$45,000 - $50,000 with benefits, and authorize the Executive Director to
begin the interview process. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 5 — Consider and act upon a Performance Agreement between the WEDC and
Mann Made,Inc.—II.
Staff reminded the Board that the following five Action Items culminate a redevelopment effort
which began in July 2006 and is projected to be completed on or about October 9, 2015. Over
this period of time the WEDC has purchased five properties totaling 3.05 acres on Highway 78
between Starbucks and Wylie Printing at a cost of $1.8 mm. Individual purchases range from
$9.24 psf to $25.02 psf with an average psf price of$13.55. The philosophy from the beginning
of this effort was that without the WEDC initiative in this area, redevelopment would be unlikely
over the foreseeable future due to the cost of acquiring properties with improvements,
demolishing the same, and achieving an adequate return on the resale for a private investor.
The redevelopment effort realized significant gains in 2014-2015 as a sizeable tract was acquired
for $9.24 psf and a long-time holdout on the Industrial Court cul-de-sac was secured. In
February 2015 staff began what has turned out to be a seven month negotiation for the final
property (1.23 acres) located in the center of the identified redevelopment zone owned by Joe &
Barbara Edge who operate a family run business (Mann Made) at the location. It had always
been the contention of the Edge family that the WEDC could not pay enough to achieve an
adequate return on their real estate to purchase an alternate property to suit the needs of their
ongoing business.
As the WEDC acquired a 20,000 square foot building on Commerce Street in 2014, there
became an alternative to satisfy the future needs of Mann Made to house their business
operations. However, the property never received significant interest from Edge due to its age
along with ingress and egress restrictions.
In April/May 2015 two significant events occurred which have allowed the WEDC to come to
terms with Edge. First, a 15,000 square foot building became available on Business Way which
is suitable for Mann Made's needs and second, a national food service group entered into
discussions with the WEDC to purchase WEDC-owned 1.25 acres at the northeast corner of
Cooper and Highway 78. The continuing challenge on both issues was that the asking price for
the Business Way property was $1,050,000 and the national food service group needed 1.53
acres. While the WEDC was able to negotiate a $950,000 purchase price for Business Way,
which is $45 - $55 psf less than new construction, the only option for an additional 0.28 acre
required by the national food service group was Edge who was not willing to sell 0.28 acre.
Combine these issues with the fact that the national food service group is able to pay 'top of the
market' pricing for the fully assembled property, staff believed the timing was right to offer
whatever was necessary to secure the acquisition of the Edge property.
WEDC—Minutes
September 21, 2015
Page 4 of 12
What staff presented and recommended approval thereof was the acquisition of Edge property
for $750,000, the purchase of the Business Way property for $950,000, the conveyance of the
Business Way property to Edge at no cost, the remodeling of the Business Way property to meet
the existing needs of Mann Made at a cost of$549,450, and the relocation by the WEDC of all
Mann Made equipment and inventory at a cost of$171,000. Total investment by the WEDC on
the Mann Made project equals $2,420,450. Combine this figure with the previous acquisitions of
$1,800,000, closing costs and brokerage fees, a combined outlay of$4.3 mm will be incurred by
the WEDC to assemble what will be a contiguous 4.7 acre tract with +680' of frontage on State
Highway 78 ($21 psf). In its present state, the property supports nine buildings with
predominately light manufacturing/warehouse uses.
Based upon a Letter of Intent for a 1.53 acre tract within the redevelopment zone, an $18 psf
sales price for the remaining 1.5 and 1.6 acre tracts, gross sales for the properties are projected to
be $3.83 mm resulting in a net loss of$481,842. However, income has been generated off these
lease properties in the amount of$530,000 over the past nine years resulting in a $48,000 gain
(not including staff time, interest, and maintenance). It was pointed out however that these
figures do not include the expense of demolishing approximately two-thirds of the existing
structures which the Board did acknowledge as negligible considering the scope of the project.
All things being equal, the WEDC revenue and expenses are a wash which reiterates the theory
that this overall project would be difficult to accomplish if undertaken by a private investment
group.
Presented to the Board was a marketing flyer designed by the Retail Coach identifying Plot 1 and
Plot 2 as current properties owned by the WEDC with an unshaded area between the two Plots
depicting the Edge property. A second attachment was designed by RLK Engineering as a
driveway exhibit for TxDOT. The TxDOT exhibit shows 3 restaurant pad sites at 1.5 acres, 1.53
acres, and 1.6 acres.
The attached Performance Agreement formalizes the commitment by Mann Made to sell the
existing property on Highway 78 to the WEDC and vacate the same following the remodeling of
the Business Way property and relocation of machinery and equipment to Business Way. Being
that Mann Made is receiving a financial package in excess of what is considered fair market
value for their 1.23 acre property, the difference between the WEDC capital outlay and fair
market value for the 1.23 acres is considered an incentive which must have claw-back provisions
should Mann Made/Edge not adhere to the performance measures. In calculating the incentive,
staff identified fair market value equal to that amount offered within the most recent Letter of
Intent (LOI) from the national food service group. The $750,000 offer initially negotiated with
Edge was based upon a previous LOI from a second tier (in terms of ability to pay) developer.
The net result between the total WEDC package and market value for 1.23 acres equals $155,000
and will be uncollateralized.
The performance requirements are identified in Section 3 and are as follows:
1. 1.23 acre Edge property on 78 sold to WEDC; and
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September 21, 2015
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2. Mann Made principal place of business to remain in Wylie until such time as a certificate
of occupancy(CO) is issued; and
3. Mann Made must maintain at least five employees with a weekly payroll of$1,760; and
4. Mann Made must vacate 78 property within seven months; and
5. Mann Made must become operational on Business Way as evidenced by the extrusion of
a billet; and
6. Mann Made must not operate or consult for the operation of a third party extrusion
company; and
7. Mann Made must stay current on all property taxes.
After a CO is issued and Mann Made becomes operational, all requirements under the
Performance Agreement will have been met.
Staff was unable to secure a multi-year commitment from Edge to maintain business operations
under the terms of a forgivable note for the full purchase price of the Business Way property due
to the perceived volatile nature of the extrusion business and the position by Edge that there
would be no debt incurred. With the point being mute and Edge willing to discontinue
negotiations, staff presented a Performance Agreement with terms agreeable to Edge.
In theory, the WEDC could convey an interest of $950,000 in the Business Way property to
Mann Made, expend $549,450 in remodeling, relocate Mann Made equipment and machinery to
the Business Way property at a cost of $171,000, Mann Made becomes operational and then
shutters an entity which has been in business for over forty years. The end result will still be that
the WEDC assembled 4.7 acres on 78 and completed a redevelopment project to support three
restaurant pad sites.
As an attachment to the Performance Agreement, the WEDC has employed Pulliam Construction
Management to develop the Construction Budget for the remodeling of 710 Business Way.
While there are still two bids that are out, Mr. Pulliam has provided what he believes to be a 'not
to exceed' budget of$549,450. The first draft of plans have already been reviewed by Edge with
a final set of drawings ready to submit to the City of Wylie on or about September 25th
Construction could take as long as three months with an optimistic time frame of 60 days.
The Board expressed concerns about cost adjustments to the remodel portion of the project and
the financial liability associated with those adjustments. Mr. Pulliam reassured the Board that
his confidence in the estimate was high so long as there was no significant change in the scope of
work and work commenced in the near term.
A second attachment to the Performance Agreement was the bid for moving services from Able
Machinery Movers in the amount of$166,000. The original bid received in June of$338,000
was reduced primarily by Edge agreeing to use Mann Made employees during the shutdown to
move a majority of all items save and except the two extrusion presses, age oven, and other large
pieces of equipment. An additional $5,000 was placed within the Performance Agreement for
unanticipated items associated with moving. The primary expense was identified by staff as
$2,500 for the rental of a commercial truck to be used by Mann Made employees to move dies,
WEDC—Minutes
September 21, 2015
Page 6of12
racks, raw materials, and inventory over a two week period. The first bid also called for a time
frame of 4—6 weeks with the new bid contemplating 3 —4 weeks.
Finally, the WEDC has approximately $2.33 mm in debt associated with Woodbridge Parkway,
Cooper Drive properties, Hobart property on Commerce, Peddicord property on Jackson, White
property on Alanis, Industrial Court properties, and the paving of Martinez. Staff will propose
within a subsequent Action Item that the WEDC Board authorize additional debt of$1.685 mm
for the Edge/Business Way properties totaling $4,015,000 in outstanding obligations. With the
ultimate sale of 3 pad sites, the WEDC Board will have the option of paying off a majority of its
obligations or just pay off the Mann Made/Business Way debt and increase its cash reserves by
approximately $1.75 mm after development expenses.
Staff also presented that a Phase I Environmental has been performed by W&M Environmental
that identified elevated levels of naphthalene and lead which is consistent with industrial
properties with 40+years of use. With additional testing in the form of a limited Phase II, W&M
believes that they can establish that no groundwater has been impacted which increases the
allowable levels for naphthalene and lead per TCEQ requirements.
Staff recommended that the WEDC Board of Directors approve a Performance Agreement
between the WEDC and Mann Made, Inc.—II.
Tommy Pulliam departed the meeting at 7:59 a.m.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve a Performance Agreement, subject to clearance of the property by
W&M Environmental, between the WEDC and Mann Made, Inc. — II. The
WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
The WEDC Board of Directors recessed for a short break at 8:02 a.m. and reconvened into open
session at 8:08 a.m.
ITEM NO. 6 — Consider and act upon a Real Estate Sales Contract between Joe H. Edge &
Barbara J. Edge and the WEDC for the purchase of 1.23 acres located at 398 South
Highway 78, Wylie, Texas, further authorizing President Marvin Fuller to execute all
closing documents necessary to effectuate the purchase of said property.
Attached for the Board's review was a Real Estate Sales Contract between Joe & Barbara Edge
(Edge) and the WEDC under which Edge conveys its interest in 1.23 acres located on State
Highway 78 for the purchase price of$750,000. The Contract acknowledges that the WEDC is
conveying a separate 2.107 acre tract (Linduff Property) at the same time as 1.23 acres is sold to
the WEDC. The Contract further contemplates that Edge will have 7 months to vacate the
property under the terms of a temporary lease which is also attached for your review.
Being that all real estate contracts are contingent on the others closing, the Linduff contract is
scheduled to close no later than October 9th. Lawyers Title has already started a file on this
WEDC—Minutes
September 21, 2015
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Contract and is prepared to close at any time. Once this contract has been executed, all attorneys
involved will review the title commitment and proceed to closing.
Within Section 10.01 (n), it is acknowledged that a 1031 Exchange may be pursued and that the
WEDC will cooperate with that process under certain circumstances. This language was added
in the event that Edge needed a higher purchase price to offset the value of the Linduff property
that would be part of the 1031 Exchange. Staff had preliminarily thought that the purchase price
could be increased and Edge could become responsible for a portion or all of the moving costs.
However, staff was informed by Edge that the $750,000 purchase price will suffice with no need
to alter the terms of the Performance Agreement or Real Estate Contract.
Staff recommended that the WEDC Board of Directors approve a Real Estate Sales Contract
between Joe H. Edge & Barbara J. Edge and the WEDC for the purchase of 1.23 acres located at
398 South Highway 78, Wylie, Texas, and further authorizing President Marvin Fuller to execute
all closing documents necessary to effectuate the purchase of said property.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve, subject to clearance by W&M Environmental Services, a Real
Estate Sales Contract between Joe H. Edge & Barbara J. Edge and the
WEDC for the purchase of 1.23 acres located at 398 South Highway 78,
Wylie, Texas, and further authorizing President Marvin Fuller to execute all
closing documents necessary to effectuate the purchase of said property.
The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 7— Consider and act upon a Commercial Contract of Sale between TD Linduff
Real Estate,L.P. and the WEDC for the purchase of property located at 710 Business Way,
Wylie, Texas more specifically known as Lot 10R, Block 1 of 544 Industrial Park, further
authorizing President Marvin Fuller to execute all closing documents necessary to
effectuate the purchase of said property.
Attached for the Board's review was a Commercial Contract of Sale between TD Linduff and the
WEDC under which Linduff conveys all interest in a 2.107 acre tract, including a 15,000 square
foot commercial building, to the WEDC for the purchase price of$950,000. The transaction is
currently set to close no later than October 9, 2015 under the terms of a recent amendment. Also
under the terms of the amendment, Linduff will vacate the property within 10 business days of
closing as opposed to 14 days called for in the attached Contract.
Staff informed the board that there will be simultaneous closings on Edge to WEDC, Linduff to
WEDC, and WEDC (Linduff property) to Edge.
Staff recommended that the WEDC Board of Directors ratify a Commercial Contract of Sale
between TD Linduff Real Estate, LP and the WEDC for the purchase of Property located at 710
Business Way, Wylie, Texas, more specifically known as Lot 10R, Block 1 of 544 Industrial
Park, further authorizing President Marvin Fuller to execute all closing documents necessary to
effectuate the purchase of said property.
WEDC —Minutes
September 21, 2015
Page 8 of 12
MOTION: A motion was made by Mitch Herzog and seconded by Demond Dawkins to
ratify a Commercial Contract of Sale between TD Linduff Real Estate, LP
and the WEDC for the purchase of Property located at 710 Business Way,
Wylie, Texas, more specifically known as Lot 10R, Block 1 of 544
Industrial Park, further authorizing President Marvin Fuller to execute all
closing documents necessary to effectuate the purchase of said property.
The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 8 — Consider and act upon a Real Estate Contract between the WEDC and Joe
H. Edge & Barbara J. Edge for the sale of property located at 710 Business Way, Wylie,
Texas, more specifically known as Lot 10R, Block 1 of 544 Industrial Park, further
authorizing President Marvin Fuller to execute all closing documents necessary to
effectuate the sale of said property.
Attached for the Board's review was a Real Estate Sales Contract under which the WEDC
conveys its interest in property located at 710 Business Way to Joe and Barbara Edge who will in
turn lease the property to Mann Made, Inc. —II. There will be no direct cost to Edge/Mann Made
other than commitments made under the Performance Agreement between the parties.
Exhibits to this Contract are the Performance Agreement and remodeling Construction Budget.
Under the contract between Linduff and the WEDC, Linduff is responsible for providing the
WEDC with a Title Policy. As the WEDC conveys title to Edge, the policy will pass through to
Edge at no cost to the WEDC.
Staff reiterated to the Board that there will be simultaneous closings on Edge to WEDC, Linduff
to WEDC, and WEDC (Linduff property)to Edge.
Staff recommended that the WEDC Board of Directors approve a Real Estate Sales Contract
between the WEDC and Joe H. Edge and Barbara J. Edge for the sale of property located at 710
Business Way, Wylie, Texas, more specifically known as Lot 10R, Block 1 of 544 Industrial
Park, further authorizing President Marvin Fuller to execute all closing documents necessary to
effectuate the sale of said property.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve a Real Estate Sales Contract between the WEDC and Joe H. Edge
and Barbara J. Edge for the sale of property located at 710 Business Way,
Wylie, Texas, more specifically known as Lot 10R, Block 1 of 544
Industrial Park, further authorizing President Marvin Fuller to execute all
closing documents necessary to effectuate the sale of said property. The
WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 9 — Consider and act upon WEDC Resolution 2015-02 (R) approving Loan
Documents between the WEDC and The American National Bank of Texas in the
cumulative amount of $1,685,000 for the acquisition of 1.23 acres located at 398 South
WEDC—Minutes
September 21, 2015
Page 9 of 12
Highway 78, Wylie, Texas from Joe H. & Barbara J. Edge in addition to the acquisition of
property located at 710 Business Way, Wylie, Texas from TD Linduff Real Estate, L.P.,
pledging as security the use and sales tax revenue the WEDC receives from the City of
Wylie for repayment of said Loan, and further authorizing President Marvin Fuller to
execute all documents necessary to effectuate the Loan Documents.
Staff reviewed with the Board documents which will formalize the Loan between the Wylie
Economic Development Corporation (WEDC) and The American National Bank of Texas
(ANB) to purchase property from Joe & Barbara Edge located at 398 South Highway 78 and to
purchase property from TD Linduff Real Estate located at 710 Business Way. The Loan
Agreement calls for the borrowing of $1,685,000 with the loan amount for the Edge property
being $750,000 and the Linduff Property $935,000. The WEDC funded $15,000 in earnest
money to Lawyers under the terms of the Linduff Contract with 100% financing for Edge.
The Loan Agreement and Promissory Note specify a 4% interest rate with 9 months of interest
only payments followed by 24 months of payments with principal and interest. There are three
(3), 12 month renewal options thereafter at prime plus 0.75%. There is no prepayment penalty.
Following approval of the WEDC Resolution and Loan documents, the Wylie City Council will
be required to authorize, via resolution, the WEDC entering into debt in the amount of
$1,685,000 and the pledge of sales tax receipts as security for said Loan with ANB. The
tentative date for City Council consideration is September 22, 2015.
Staff recommended that the WEDC Board of Directors approve a Certificate of Corporate
Resolution 2015-02 (R) approving Loan Documents between the WEDC and The American
National Bank of Texas in the cumulative amount of$1,685,000 for the acquisition of 1.23 acres
located at 398 South Highway 78 from Joe H. & Barbara J. Edge in addition to the acquisition of
property located at 710 Business Way, Wylie, Texas from TD Linduff Real Estate, LP., pledging
as security the sales and use tax revenue the WEDC receives from the City of Wylie for
repayment of said Loan, and further authorizing WEDC President Fuller to execute all
documents necessary to effectuate the Loan Documents.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve a Certificate of Corporate Resolution 2015-02 (R) approving the
terms and conditions of the Loan Documents, including but not limited to a
Loan Agreement, Promissory Note, and Security Agreement in order to
borrow the sum of$1,685,000 from the American National Bank of Texas
for the acquisition of 1.23 acres located at 398 South Highway 78 from Joe
H. & Barbara J. Edge in addition to the acquisition of property located at
710 Business Way, Wylie, Texas from TD Linduff Real Estate, LP.,
pledging as security the sales and use tax revenue the WEDC receives from
the City of Wylie for repayment of said Loan, and further authorizing
WEDC President Fuller to execute all documents necessary to effectuate the
Loan Documents. The WEDC Board voted 5 — FOR and 0 —AGAINST in
favor of the motion.
WEDC—Minutes
September 21, 2015
Page 10 of 12
DISCUSSION ITEMS
ITEM NO. 10 — Staff report: review issues surrounding Performance Agreements between the
WEDC and: Woodbridge Crossing, Ascend Custom Extrusions, CSD Woodbridge, Exco
Tooling Solutions and regional housing starts.
Woodbridge Crossing
Attached for the Board's review was the Sales Tax Reimbursement Report which identifies all
sales taxes received through August 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.
$3,058,369.97 in reimbursement has been earned through August 2015 with net receipts of
$2,236,480.70 after reimbursements. As well, it is estimated that $3.5 mm has been paid in ad
valorem taxes to the City of Wylie (excluding the WISD).
As shown on the Sales Tax Reimbursement Report, $127,061.34 was generated in sales tax in
June 2015 versus $108,382.12 in June 2014. This increase represents a 17% gain over 2014
receipts.
Staff also updated the Woodbridge Crossing Valuation Tracking Report which shows a $5.2 mm
increase in appraised value over 2015 or a 9% gain. The primary contributor to the gain was TJ
Maxx/Home Goods which brought in new value of$7.7 mm in new construction.
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.
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
WEDC—Minutes
September 21, 2015
Page 11 of 12
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. All
indications point to a December 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.
Regional Housing Starts
Thirty homes were permitted in Wylie for August 2015. Sachse, Lavon, and Murphy permitted a
combined Forty-eight homes over the same period.
No action was requested by staff for this item,
ITEM NO. 11 — Discuss issues surrounding WEDC property located near the intersection
of Jackson and Marble.
Attached for the Board's review were six different Schemes providing development options for a
mixed-use concept on WEDC property on the east side of Jackson Street between Marble and
Oak. The concepts are only meant to determine what the property is capable of sustaining and to
begin the process of determining what type of project the WEDC and Council want to promote
for the area.
While many issues such as depth of retail and square footage of apartments will be determined
by what the Wylie market can support, the aesthetics desired by the City Council and the WEDC
Board can be built into the Planned Development Zoning District, which will be required for this
mixed use project. Current zoning contemplates single family dwellings above owner occupied
businesses, but does not address multi-family lofts/apartments.
As is consistent in each Scheme, the ability to satisfy parking requirements both on-site and off-
site will be a significant challenge. Compounding the parking challenge are the 25-30 cars that
park in the existing parking lot most every day.
McCarthy Architects are preparing a presentation to be shown to both the WEDC Board and
Wylie City Council in December providing exterior elevations of similar projects which are
consistent with the downtown Wylie historic district. The WEDC Board will have the
opportunity to preview that presentation at the November Board Meeting. Following Board and
WEDC —Minutes
September 21, 2015
Page 12 of 12
Council review, staff anticipates presenting the plans to the downtown merchants to seek their
input as well.
No action was requested by staff for this item.
EXECUTIVE SESSION
Recessed into Closed Session at 8:34 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 2015-2a
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:
• Cooper Drive and State Highway
• Business Way and Commerce
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 9:04 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 9:05 a.m.
7
Marvin Fuller, President
ATTEST:
Samuel Satterwhite, Director