01-14-2005 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
January 14,2005
Board Members Present
Gary Bartow
Gary Bowland
Marvin Fuller
John Yeager
Merrill Young(departed at 7:45 a.m.)
Staff Present
Samuel Satterwhite, Executive Director
With notice of the meeting posted in time and manner required by law and a quorum of Board
members present, the Board of Directors of the Wylie Economic Development Corporation
(WEDC) met in Regular Session on January 14, 2005 in the Conference Room of Inwood
National Bank located at 200 South Highway 78, Wylie, Texas.
The meeting was called to order by President Marvin Fuller at 7:05 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the November 15, 2004
Regular Board of Directors Meeting of the WEDC.
MOTION: A motion was made by Gary Bowland and seconded by John Yeager to
approve the Minutes for the November 15, 2004 Regular Board of
Directors Meting of the WEDC. The WEDC Board of Directors voted 4—
FOR and 0—AGAINST in favor of the motion.
ITEM NO. 2 — Consider and Act Upon Approval of Minutes for the November 23, 2004
Regular Board of Directors Meeting of the WEDC.
President Fuller noted that the vote on Item No. 2 was 3—FOR and 1 —AGAINST.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager to •
approve the Minutes for the November 23, 2004 Regular Board of
Directors Meting of the WEDC as amended. The WEDC Board of
Directors voted 3 —FOR and 1 —AGAINST in favor of the motion.
ITEM NO. 3 — Consider and Act Upon Approval of the October, 2004 Treasurer's Report
for the Wylie Economic Development Corporation.
MOTION: A motion was made by John Yeager and seconded by Gary Bowland to
approve the October, 2004 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 4— FOR
and 0—AGAINST in favor of the motion.
WEDC—Minutes
January 14, 2005
Page 2
ITEM NO. 4 — Consider and Act Upon Approval of the November, 2004 Treasurer's
Report for the Wylie Economic Development Corporation.
MOTION: A motion was made by Gary Bowland and seconded by Gary Bartow to
approve the November, 2004 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 4—FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 5 — Consider and Act Upon Issues Surrounding the Offering of an Incentive
Package to Extruders Division of Atrium Companies,Inc.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager to table
consideration of issues surrounding the offering of an incentive package to
Extruders Division of Atrium Companies, Inc. The WEDC Board of
Directors voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 6— Consider and Act Upon Issues Surrounding the Sale of 3.05 Acres from the
WEDC to Shafer Properties.
Staff indicated that the Shafer contract goes hard on January 20, 2005. In the event that the
WEDC does not remedy any outstanding title issues within its control or Shafer requests
additional time for its due diligence period, staff requested that the WEDC Board of Directors
schedule a meeting for the morning of January 20th. Staff identified outstanding issues as
follows: oil, gas, and mineral interests maintained by the BNSF, a Lease Agreement between the
BNSF and the Sante Fe Energy Company, a fiber optic easement maintained by the BNSF, and
easements which are to be abandoned by plat.
The BNSF has agreed to sell the WEDC the mineral rights for $5,000. Staff has proceeded
forward with that purchase due to the ability to cure three issues with the purchase (Sante Fe
Energy Company issue will be cured when the oil, gas, and mineral easement is removed). Staff
also indicated that there exists 14,715 square feet of easements which will be abandoned upon
platting. It is unknown how the title company will clarify those easements.
Should the Shafer contract go hard and Shafer close on the 27th, staff recommended that the
WEDC Board of Directors authorize President Marvin Fuller to execute all documentation
necessary to effectuate the sale between Shafer and the WEDC.
MOTION: A motion was made by John Yeager and seconded by Gary Bowland
authorizing WEDC President Marvin Fuller to execute all documentation
necessary to effectuate the sale of±3.05 acres to Shafer Properties. The
WEDC Board of Directors voted 4 — FOR and 0 — AGAINST in favor of
the motion.
WEDC—Minutes
January 14, 2005
Page 3
ITEM NO. 7— Consider and Act Upon Issues Surrounding the Sale of 2.01 Acres from the
WEDC to The Cirrus Group.
Staff indicated that the final point to be negotiated with Cirrus was the penalty should Baylor
vacate the building prior to the expiration of the Development Agreement between the WEDC
and Cirrus. Staff indicated to the Board that the penalty has been estimated at $157,000 arrived
at by determining a market rate of$5.50 per square foot for the site less the $3.69 sales price.
Cirrus indicated that for the WEDC to take a second position on the property in the amount of
$157,000 would be detrimental to the deal because those funds would have to be escrowed by
Cirrus and further complicate any future assignment of the package. Cirrus offered a $60,000
unsecured note between the WEDC and Cirrus to be paid should Baylor vacate the facility within
the life of the five year agreement. Board member Bowland questioned the financial strength of
Cirrus and further their belief in securing a 10-year lease with Baylor should Cirrus be
uncomfortable executing an unsecured note for$157,000.
President Fuller believed that Cirrus should escrow funds, even in a lesser amount than
$157,000, which will provide the WEDC with a greater security than that of an unsecured note.
President Fuller also understood the cloud on title that would exist if a second lien is required on
the property by the WEDC if and when the site is sold to a real estate investment trust. Board
member Yeager believed that if the WEDC is in possession of an executed 10-year lease between
Baylor and Cirrus, and Cirrus has contractually committed to construct the proposed facility, the
security the WEDC receives with either a secured or unsecured note is secondary to the project
itself.
President Fuller offered a compromise which consisted of a $157,000 unsecured note, of which
$100,000 is forgiven upon the issuance of a certificate of occupancy for the 10,000 square feet to
be utilized by Baylor. The remaining $57,000 will be forgiven over the life of the five-year
development agreement.
Staff also presented that Cirrus, while desiring for the contract to go firm on the 15`h of January,
would like to extend closing until the WEDC plats the site, secures signage on State Highway 78
through a planned development zoning district, and provides Cirrus with a schedule of
construction for Cooper Drive extension. These changes will be effectuated via a third
amendment to the sales contract.
MOTION: A motion was made by John Yeager and seconded by Gary Bartow
authorizing staff to amend language in a development agreement which
addresses a $157,000 unsecured note between Cirrus and the WEDC and
approve the Third Amendment to the Sales Contract between Cirrus and
the WEDC. The WEDC Board of Directors voted 4 — FOR and 0 —
AGAINST in favor of the motion.
WEDC—Minutes
January 14, 2005
Page 4
ITEM NO. 8—Staff Report.
Staff updated the Board on issues surrounding the WEDC web site, Mission Knives, Sanden
International, and the proposed purchase of the Ferrell Construction site.
ITEM NO. 9—Citizen Participation.
There being no citizen participation,President Fuller proceeded to Item No. 10.
ITEM NO. 10—Adjourn.
There being no further business, the meeting was adjourned at 9:45 a.m.
(eiVietn. )6(,&•--
Marvin Fuller,President
Attest:
Samuel D.R. Satterwhite
Executive Director