03-18-2016 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, March 18, 2016 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 6:37 a.m. Board Members present were
Mitch Herzog and John Yeager.
Ex-officio members City Manager Mindy Manson and Mayor Eric Hogue were present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner
and Sr. Assistant Angel Wygant.
CITIZEN PARTICIPATION
Lynn Grimes was in attendance and informed the Board that RaceTrac continues to be No 1 for
6K stores with in-store sales exceeding $100,000 per month.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the February 19, 2016 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 February 19, 2016 Minutes of the Wylie
Economic Development Corporation. The WEDC Board voted 3 —FOR and
0—AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon approval of the February 2016 WEDC Treasurer's
Report.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve the February 2016 WEDC Treasurer's report. The WEDC Board
voted 3—FOR and 0—AGAINST in favor of the motion.
ITEM NO.3— Consider and act upon a Real Estate Contract between the WEDC and First
Baptist Church of Wylie for the purchase of 0.198 acre located at 111 North Ballard Street,
Wylie, Texas.
Staff informed the Board that on 3-10-16 Lawyers Title accepted an executed contract between
the WEDC and FBC Wylie for the purchase of a vacant lot located at 111 North Ballard Street,
adjacent to Boyd Recording Studio.
WEDC—Minutes
March 18,2016
Page 2 of 6
The purchase price equals $150,000 with the WEDC paying for a survey and 50% of the title
policy. Staff has hired W&M Environmental Consultants to perform a Phase I on the site which
will be completed within the next two weeks. The feasibility period expires on 5-6-16 with closing
set for 6-6-16.
Staff will provide an update on the Phase I Environmental Report at the April Board Meeting.
Staff recommended that the WEDC Board of Directors ratify the Real Estate Sales Contract
between the WEDC and First Baptist Church of Wylie for the purchase of 0.198 acre located at
111 North Ballard Street.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to ratify
the Real Estate Sales Contract between the WEDC and First Baptist Church
of Wylie for the purchase of 0.198 acre located at 111 North Ballard Street.
The WEDC Board voted 3—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4 - Consider and act upon issues surrounding the demolition of existing
improvements located on WEDC properties at 398-400 Highway 78 and 207-211 Industrial
Court.
Staff informed the Board that Exco and Mann Made have vacated buildings located at 398 and 400
S. State Highway 78. WEDC tenants in six buildings located on Industrial Court have been given
notice to vacate no later than May 31,2016. As well, staff has already contracted for the removal
of all asbestos related material which will be completed on or about March 31,2016.
Staff developed a Request for Proposal (RFP) for demolition of all properties and delivered the
same to Midwest Wrecking Company, Intercon Demolition, and Precision Demolition. The RFP
requested that the bids be separated into a Phase I(Highway 78 properties)and Phase II(Industrial
Court Properties) with Phase I beginning as early as April 4th and Phase II beginning on or about
July 1st. Also within Phase I, bidders were asked to identify demolition costs associated with the
Exco site and an additional 39' strip of land to the north. This separate figure was requested so as
to identify demolition costs to be included within ongoing negotiations.
The bids received were as follows:
Phase I Phase II Total
Midwest Wrecking $160,325 $89,975 $250,300
Intercon Demolition 141,117 95,300 236,417
Precision Demolition n/a n/a 255,678
As presented, Intercon Demolition was the low bidder at$236,417 with$141,117 for Phase I and
$74,758 attributed to Exco plus 39'.
WEDC—Minutes
March 18, 2016
Page 3 of 6
Staff commented that at a minimum the WEDC should take down the Exco building plus the 39'.
A discussion should also take place as to whether or not to take down the balance of the Mann
Made property at the same time.
Staff recommended that the WEDC Board of Directors authorize the Executive Director to enter
into a contract with Intercon Demolition for the removal of improvements located at 398—400 S.
Highway 78 and 207 —211 Industrial Court and further advise staff on the timing of demolition
for properties within Phase I and Phase II.
The Board unanimously was in favor of taking down the Exco and Mann Made structures and
move forward with the Industrial Court properties on or about July 1, 2016.
MOTION: A motion was made by Mitch Herzog and seconded by John Yeager to
authorize the Executive Director to enter into a contract with Intercon
Demolition for $236,417 for the removal of improvements located at 398 —
400 S. Highway 78 and 207—211 Industrial Court. The WEDC Board voted
3 —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,Exco Tooling
Solutions, All State Fire, BRE Program, 605 Commerce, 106 N. Birmingham, ICSC 2016, The
Retail
Coach, La Quinta Inn& Suites, sporting events, 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 February 2016 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.
$3,416,841.73 in reimbursement has been earned through February 2016 with net receipts of
$2,613,335.63 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, $198,375.98 was generated in sales tax in
December 2015 versus $186,038.17 in December 2014. This increase represents a 6.6%gain over
2014 receipts.
WEDC—Minutes
March 18, 2016
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Ascend Performance Agreement
With the 2012 Performance Agreement completed, a second Performance Agreement executed in
December 2013 is the last commitment between the parties. Payment#3 of 4 is being considered
currently with the remaining Performance Obligations attached for your review.
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'A2
cent sales tax reimbursement from the WEDC(City of Wylie is 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 completed construction of its 30,000 square foot facility within Premier Business Park
and received a final Certificate of Occupancy. With the CO issued, Incentive Payment No. 1 was
funded in the amount of$87,000. An additional $80,000 will be funded over the next four years
in payments of$20,000 each.
All State Fire Equipment
All State Fire Equipment(ASFE)received their final Certificate of Occupancy(CO)on March 9th
and is fully moved into their new facility on Century Way. Staff will begin processing Incentive
Payment #1 in the amount of$20,000 following receipt of documentation supporting a cost of
$788,000. Assuming ASFE remains in compliance with the Performance Agreement, an
additional $40,000 will be paid over the next two years.
BRE Program
A license was acquired from Salesforce to start building the custom database. WEDC Contacts
will be inputted into the system with staff beginning to start mapping fields and importing data in
the next couple weeks. The BRE component of the Database is still under construction. The target
launch date of April 30,2016 is still in place assuming Mr. Greiner continues to work overtime.
605 Commerce
Attached for the Board's review was a spreadsheet tracking all activities with W&M
Environmental for FY 2014-15 and FY 2015-16. W&M has prepared Phase I & II reports for
WEDC—Minutes
March 18, 2016
Page 5 of 6
Mann Made,K&M,Business Way,is processing the VCP application for the Commerce property,
and processing the Municipal Setting Designation through the City.
106 N. Birmingham
Staff had previously reported that Wylie Glass would be leasing 106 N. Birmingham. However,
Mr. Jones determined that it was in his best interest to find a more permanent home rather than
potentially having to move again if and when redevelopment of the Birmingham site takes place.
Staff is working with an alternate tenant and has hired an electrician to preform minor modification
required by the Building Department.
ICSC 2016
The International Council of Shopping Centers annual real estate conference(RECon)will be held
May 22 — 25, 2016. Tentatively scheduled to attend this event will be Mayor Hogue, Board
Members Wintters,Yeager,and Fuller,along with a new attendee Planning Director Renae' 011ie.
While Ms. 011ie is already a valuable economic development asset at City Hall,exposure to a trade
show geared specifically toward commercial/retail development can only enhance our ability to
interact with commercial/retail developers.
The Retail Coach
There has been significant activity generated by The Retail Coach (TRC) over the last several
weeks beginning with updating our target restaurant list in February. TRC has also updated the
Wylie daytime population data at the request of a well-known dining establishment which has a
serious interest in Wylie. TRC along with WEDC staff has already spent significant effort in
developing a strategy for RECON in May and is refreshing all marketing materials highlighting
restaurant pad sites in Wylie.
La Quinta Inn &Suites
With a completion date set for August,underground utilities will be complete on or about March
25th and foundation poured by the end of March. Preselling of rooms begins in June with a VIP
opening one day prior to the official grand opening. Local officials and VIP guests will be
encouraged to stay overnight at the La Quinta prior to the grand opening so as to provide a soft
opening and training for staff.
Sporting Events
Attached for the Board's review was the Promotional Activities Report which specifically details
attendees at Dallas Mavericks games.
Regional Housing Starts
Four homes were permitted in Wylie for February 2016. Sachse, Lavon, and Murphy permitted a
combined forty homes over the same period.
WEDC—Minutes
March 18, 2016
Page 6 of 6
No action is requested by staff for this item.
EXECUTIVE SESSION
Recessed into Closed Session at 7:30 a.m. in compliance with Section 551.001, et.seq. Texas
Government Code, to wit:
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& State Highway
• Martinez&Alanis
• Commerce &F.M. 544
Section 551.087(Economic Development)of the Local Government Code,Vernon's Texas Code
Annotated (Open Meetings Act).
• Project 2015-12a
• Project 2016-la
• Project 2016-lb
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:19 a.m. and took no action.
ADJOURNMENT
With no further business,President Fuller adjourned the WEDC Board meeting at 8:19 a.m.
Marvin Fuller,President
ATTEST:
Samuel Satterwhite, Director