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08-21-2000 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION Monday,August 21, 2000 Board Members Present: Gary Bowland Marvin Fuller Kevin St. John John Yeager Merrill Young 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 August 21, 2000 in the Wylie Chamber of Commerce Conference Room at 108A W. Marble,Wylie, Texas. The meeting was called to order by Chairman Yeager at 7:20 a.m. ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the July 28, 2000 Regular Board of Directors Meeting of the Wylie Economic Development Corporation. MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to approve the minutes for the July 28, 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 Minutes for the July 31, 2000 Regular Board of Directors Meeting of the Wylie Economic Development Corporation. MOTION: A motion was made by Marvin Fuller and seconded by Gary Bowland to approve the minutes for the July 31, 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 3 — Consider and Act Upon Approval of the July, 2000 Treasurer's Report for the Wylie Economic Development Corporation. MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to approve the July, 2000 Treasurer's Report for the Wylie WEDC - Minutes August 21, 2000 Page 2 Economic Development Corporation. 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 Development of a Carlisle Coatings & Waterproofing, Inc., Hardcast Division Facility within Premier Business Park. Staff presented a letter to the WEDC Board of Directors from Carlisle Corporate Supply Chain Manager, Mr. Tony Noe. Mr. Noe outlined the proposed Carlisle expansion as well as areas in which additional incentives are being sought. Informally the WEDC has considered conveying to Carlisle approximately 8 acres within Premier Business Park for the development of a 100,000 square foot manufacturing facility. Also, the WEDC Board of Directors have considered a relocation grant of $250,000 payable over 5 years. Carlisle is requesting the consideration of an additional $50,000 per year aver five years. Based on Carlisle's assumption in the above referenced letter, staff recommended to the Board that an additional $43,923 be included in the incentive package. Board Members St. John and Bowland the WEDC presented its strongest offer in earlier negotiations. MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to deny any further conveyance of incentives to the proposed Carlisle Project. The WEDC Board of Directors voted 3 —FOR and 2—AGAINST in favor of the motion. ITEM NO. 5 — Consider and Act Upon Issues Related to Inventory Taxes Paid by Moulding Associates,Inc. Staff presented to the Board the ongoing issue of inventory taxes not abated to Moulding Associates, Inc. (MAI). Staff reviewed that a mistake was made in a letter presented to MAI on April 2, 1998. The specific mistake was that staff included `inventory' in a statement. Staff admitted that this may have been confusing as to whether inventory was considered in the tax abatement. Staff went on to review that inventory was not mentioned in the subsequent Loan Agreement and was specifically denied as applicable to the tax abatement granted by the City of Wylie. MAI representatives claim that it was their belief that up until the approval of the tax abatement, inventory taxes were subject to abatement. MAI based this assumption on the April 2, 1998 letter. Staff recommended an expenditure of $5,000 per year for five years as a good faith gesture because of the perceived confusion. Staff cited that this is not a legal responsibility, but only a good faith gesture. Board Member Bowland commented that to approve the recommendation would be circumventing the law which restricts the WEDC -Minutes August 21, 2000 Page 3 abatement of inventory. Board Member St. John commented that MAI has received in excess of$300,000 from the Wylie Community in incentives and this is another example of any incentive never being enough. MOTION: A motion was made by Marvin Fuller and seconded by John Yeager to authorize the expenditure of$5,000 annually, payable to Moulding Associates, Inc., as a subsidy for inventory taxes paid to the City of Wylie. The WEDC Board of Directors voted 2 — FOR and 3 —AGAINST in denial of the motion. ITEM NO. 6—Consider Issues Related to Project Circuit Board. There was no action necessary on this item. ITEM NO. 7—EXECUTIVE SESSION: The Wylie Economic Development Corporation Board of Directors convened into Executive Session at 8:05 a.m. to discuss peraonnel matters as authorized in the Local Government Code, Section 551.074. ITEM NO. 8—RECONVENE FROM EXECUTIVE SESSION: The Wylie Economic Development Corporation Board of Directors reconvened from Executive Session at 8:25 a.m. A motion was made by Gary Bowland and seconded by Merrill Young to increase the salary of WEDC Executive Director by $7,000 annually and increase the car allowance by $600 annually. The Board of Directors voted 5 —FOR and 0 —AGAINST in favor of the motion. ITEM NO. 9—Citizen Participation. There being no citizens present, the Chairman proceeded to Item No. 10. ITEM NO. 10—Adjourn. There being no further business, the meeting was adjourned at 8:37 a.m. aim John eager resident Attest: Fellf Samuel D.R. Satterwhite Executive Director