12-07-2001 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
December 7,2001
Board Members Present:
Gary Bowland(arrived at 7:55 a.m.)
Marvin Fuller(departed 8:30 a.m.)
Kevin St. John
John Yeager
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 December 7, 2001 in the City Council Conference Room of
the Wylie Municipal Complex located at 2000 Highway 78 North, Wylie, Texas.
The meeting was called to order by President John Yeager at 7:05 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the October 16, 2001
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 minutes for the October 16, 2001 Regular Board of Directors
Meeting of the Wylie Economic Development Corporation. The WEDC
Board of Directors voted 3 — FOR and 0 — AGAINST in favor of the
motion.
ITEM NO. 2 — Consider and Act Upon Approval of the October, 2001 Treasurer's Report
for the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to
approve October, 2001 Treasurer's Report for the Wylie Economic
Development Corporation as amended. The WEDC Board of Directors
voted 3 —FOR and 0—AGAINST in favor of the motion.
ITEM NO. 3 — Consider and Act Upon Issues Surrounding an Incentive Agreement
Between Southern Fastening Systems, Inc. and the Wylie Economic Development
Corporation.
Staff indicated that discussions have been ongoing between the WEDC and Southern over the
past several months. Southern has indicated that it is seriously considering relocating/expanding
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December 7, 2001
Page 3
its operations to Wylie, Texas. Southern distributes pneumatic tools, nails and staples for the
homebuilding industry.
As indicated by Southern, a 54,000 square foot facility could be constructed on property owned
by the Birmingham Land Trust on Sanden Boulevard. The value of the proposed facility will be
±$2,000,000. Inventory will be valued at $4 — 5 million with personal property valued at ±$1
million. In addition to consolidating operations in Dallas, Plano, and Houston, Southern will
employ 20 individuals at their new location.
Staff proposes an incentive package valued at$300,000 to be paid out as follows:
Waiver of City bld. permit fee $10,000
Yr. 1 cash grant 90,000
Yr. 2 cash grant 50,000
Yr. 3 cash grant 50,000
Yr. 4 cash grant 50,000
Yr. 5 cash grant 50,000
TOTAL $300,000
Year 1 grant will be paid following the issuance of a certificate of occupancy from the City of
Wylie for a 54,000 square foot, tilt-wall facility. Years 2 — 5 grants will be paid out following
the receipt by the WEDC of appraisal records from the Collin County Central Appraisal District
reflecting a total appraised value on the site of at least$7.25 million.
Board member Fuller indicated that he, along with Board Member Bowland and staff, met with
Southern officials at their Dallas location. At that meeting, WEDC representatives reviewed the
financial records of Southern. While Southern's position is leveraged, their cash flow position is
strong, commented Fuller.
Staff commented that there is minimal risk for the WEDC in this project. Incentives will only be
paid out after significant performance by Southern. Also, should Southern only bring $4 million
in inventory, the breakeven point for the WEDC/City of Wylie investment is 1.8 years. Based
upon $7.25 million in value, the City of Wylie will receive $52,563 in property tax revenue
annually and the Wylie ISD will receive $113,825. Finally, no tax abatement will be sought by
Southern from the City of Wylie.
MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller
authorizing staff to negotiate and draft an incentive agreement between
Southern Fastening Systems, Inc. and the WEDC valued at $300,000. The
WEDC Board of Directors voted 3 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 4—Executive Session.
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December 7, 2001
Page 3
The WEDC Board of Directors convened into Executive Session at 8:00 a.m. to discuss
personnel matters relating to an Employment Agreement between the WEDC and the Executive
Director as authorized in the Local Government Code, Section 551.074; and to consult with
Corporation attorney, as authorized in the Local Government Code, Section 551.071, on a matter
which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of
Professional Conduct of the State Bar clearly conflicts with this chapter.
ITEM NO. 5—Reconvene From Executive Session.
The WEDC Board of Directors reconvened from Executive Session at 8:44 a.m. No action was
taken as a result of discussion held in Executive Session.
ITEM NO 6—Citizen Participation.
There being no citizen participation, President Yeager proceeded to Item No. 7.
ITEM NO. 7—Adjourn.
There being no further business, the meeting was adjourned at 8:45 a.m.
Jo Yea er, President
Attest:
Samuel D.R. Satterwhite
Executive Director