06-27-2000 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday,June 27,2000
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Board Members Present:
Gary Bowland
Marvin Fuller
Kevin St. John
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
Ashley Gillean, Administrative Assistant
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 June 27, 2000 in the Conference Room of the Wylie
Chamber of Commerce at 108A W. Marble, Wylie,Texas.
The meeting was called to order by President John Yeager at 7:00 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the May 26, 2000 Regular
Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to
approve the minutes for the May 26, 2000 Regular Board of Directors
Meeting of the Wylie Economic Development Corporation. The WEDC
Board of Directors voted 5 — FOR and 0 — AGAINST in favor of the
motion.
ITEM NO. 2 — Consider and Act Upon Approval of the May, 2000 Treasurer's Report for
the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
approve the March, 2002 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 5 —FOR
and 0—AGAINST in favor of the motion.
WEDC -Minutes
June 27, 2000
Page 2
ITEM NO. 3 — Consider and Act Upon Issues Surrounding a Tax Abatement Agreement
for Moulding Associates, Inc.
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Staff informed the Board that on June 13, 2000, the Wylie City Council approved a tax
abatement agreement between the City of Wylie and Moulding Associates, Inc. (MAI). The
agreement specified a 200% abatement over five years, or a 40% abatement per year for five
years.
Presented also was a Loan Agreement between the WEDC and MAI. Specified within the
agreement was Recommendations to the City and Other Entities which required of the WEDC to
request on behalf of MAI to all applicable taxing entities a 300% tax abatement over five years,
or 60% per year. The WEDC committed to MAI that should any of taxing entities deny the
300% abatement, the WEDC will "compensate Borrower (MAI) in an amount equal to the
proposed tax abatement package, such additional compensation to be provided in equal annual
advances over the above described five (5) year period." The Board was reminded that this
language was added so that MAI could be assured of the total incentive that would be provided..
Staff commented that the 60%commitment was originally determined by estimating $3.4 million
in new value added to the tax roles from the MAI relocation ($1,250,000 real property, $150,000
equipment, and $1,990,443 in inventory). Based upon $3.4 million, the City of Wylie tax
abatement guidelines allows a 60% abatement. As staff became aware that inventory was not
subject to abatement as per state law, the new value subject to abatement was only calculated at
$1.4 million. According to the abatement guidelines, a 40% abatement is allowable. Therefore,
the WEDC is now liable for the outstanding 20% or approximately $3,800 per year over five
years. The Board instructed staff to draft a promissory note effectuating the agreement.
MOTION: A motion was made by Marvin Fuller and seconded by Merrill Young
authorizing staff to develop a note effectuating the agreement
contemplated via Section 9 of the Loan Agreement to compensate MAI for
the unrealized tax abatement, subject to WEDC Board of Directors final
approval. The WEDC Board of Directors voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 4 — Consider and Act Upon Issues Surrounding the Relocation of Cates Control
Systems to Premier Business Park.
Staff informed the Board that Cates no longer proposes the construction of a 40,000 square foot
facility within Premier Business Park. A 20,000 square foot facility is now proposed due to
underestimated construction costs. Board members commented that although the 8 acre site
within Premier presents development challenges in regards to the contour of the site, a 20,000
square foot facility greatly underutilizes the sites' potential.
WEDC -Minutes
June 27, 2000
Page 3
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
deny the request from Cates Control Systems to construct a 20,000 square
foot facility at the southeast corner of Premier Business Park and return all
earnest monies deposited with Commonwealth Land Title as security for
the 8 acre site. The WEDC Board of Directors voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 5 — Discuss Issues Surrounding the Development of a Lone Star Circuits Site
within Premier Business Park.
Staff informed the Board of a meeting that had been held with Mr. Brad Jacoby and Mr. Brian
Vinson to discuss future Lone Star Circuits operations in Wylie, Texas. At this meeting, Mr.
Jacoby confirmed that Lone Star Circuits remained committed to their plan to construct a
100,000 square foot facility in addition to a 40,000 square foot office facility within Premier
Business Park. Furthermore, a 60,000 square foot facility is planned as a phase three
development adjacent to Moulding Associates.
To further solidify the commitment, Mr. Jacoby indicated that the Rowlett contractor, which had
previously been identified to complete the project, had been relieved of his duties. Mr. Jacoby
requested that staff provide recommendations of general contractors to complete the project.
Staff indicated that several interviews with general contractors have been scheduled. Mr. Jacoby
is now convinced that a professional firm with experience is required to complete the project to
his satisfaction.
The above was provided to the Board as information only. No action was taken.
ITEM NO. 6—EXECUTIVE SESSION:
The Wylie Economic Development Corporation Board of Directors
convened into Executive Session at 7:50 a.m. to deliberate the purchase of
real property as authorized in the Texas Local Government Code, Section
551.072.
ITEM NO. 7—RECONVENE FROM EXECUTIVE SESSION:
The Wylie Economic Development Corporation Board of Directors
reconvened form Executive Session at 7:57 a.m. No action was taken as
result of Executive Session.
ITEM NO. 8—Citizen Participation.
There being no citizens present, the Chairman proceeded to Item No. 9.
WEDC -Minutes
June 27, 2000
Page 4
ITEM NO 9 - Adjourn.
There being no further business, the meeting was adjourned at 8:00 a.m.
Jo Yeag ,President
Attest: ,
Samuel D.R. Satterwhite
Executive Director