11-18-2016 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday,November 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 6:33 a.m. Board Members present were John
Yeager, Demond Dawkins, Todd Wintters and Bryan Brokaw.
Ex-officio member Mayor Eric Hogue and City Manager Mindy Manson were present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner and
Senior Assistant Angel Wygant.
Marvin Fuller welcomed Bryan Brokaw, the newly appointed WEDC Board Member, to his first
meeting.
CITIZEN PARTICIPATION
Lynn Grimes was present and thanked the Board for their sponsorship of the upcoming B&B Fun Run
benefiting the Christian Care Center. She encouraged the Board to come out and participate if they were
free on November 19th at 9:00 a.m.
With no further citizen participation,President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the October 28, 2016 Minutes of the Wylie
Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Demond Dawkins and seconded by
Todd Wintters to approve the October 28, 2016 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 5 —FOR and 0—AGAINST
in favor of the motion.
ITEM NO.2—Consider and act upon approval of the October 2016 Treasurers Report.
Staff reviewed key items within the October Treasurer's Report and informed the Board that an invitation
has been extended to Melissa Beard, Assistant Finance Director with the City of Wylie, to attend the
December 16th meeting. Ms. Beard handles all financial matters for the WEDC and Staff felt it would
be good to have her attend periodically to answer any questions the Board might have.
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November 18, 2016
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MOTION: A motion was made by John Yeager and seconded by
Demond Dawkins to approve the October Treasurers Report for the Wylie
Economic Development Corporation. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 3—Consider and act upon issues surrounding the election of WEDC Officers.
Staff explained that due to Mitch Herzog's resignation from the Board on October 28, 2016, the Wylie
City Council appointed Mr. Bryan Brokaw to fill Mr. Herzog's unexpired term. Mr. Brokaw was sworn
in by City Secretary Ehrlich on November 15th•
With Mr. Herzog resigning, staff requested that the WEDC Board elect/appoint a Vice President and
make any other officer appointments that may be necessary. The current WEDC officers are as follows:
Marvin Fuller.......... President
John Yeager Secretary
Todd Wintters Treasurer
Staff recommended that the WEDC Board of Directors elect officers to fill the vacant VP position. The
following slate of officers were discussed and presented by the Board:
Marvin Fuller President
Todd Wintters .Vice President
John Yeager .Secretary
Demond Dawkins Treasurer
MOTION: A motion was made by John Yeager and seconded by
Bryan Brokaw to approve the new slate of Officers as follows: Marvin Fuller,
President; Todd Wintters, Vice President; John Yeager, Secretary; and Demond
Dawkins, Treasurer. The WEDC Board voted 5—FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 4— Consider and act upon a Performance Agreement between the WEDC and FLM
Development,LLC.
The WEDC has been working with McClure Partners, LLC and their development arm, FLM
Development, LLC to redevelop the southeast corner of FM 544 and Regency Drive. Staff explained
that the overall project is moving forward as planned and they have two of the three pad sites under
contract. FLM has received a letter of intent from a third tenant,but the middle parcel of land was larger
than the client needed. After the initial discussion,the WEDC staff requested feedback from the WEDC
Board and then pledged support to assist FLM with the development of a small office building on the
property. FLM Development has submitted the necessary paperwork to file for a replat of the remaining
parcel and they are awaiting final approval from P&Z and City Council. Both meetings are scheduled
for early to mid-December. Upon approval, FLM Development will replat the remaining pad site into
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November 18, 2016
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two separate parcels, Lot 2R-1 & Lot 2R-2. Lot 2R-1 will be reserved for a fast-casual restaurant user
and McClure Partners plans to move their Headquarters into a new office building on 2R-2.
FLM Development plans to construct a 4,200 sq. ft. office and occupy half, or 2,100 sq. ft., for FLM
offices being relocated from Fanners Branch. The estimated capital investment exceeds $600,000 with
the 4,200 sq. ft. shell and the finish out of FLM offices completed by 12-31-2017. The finish out of the
remaining 2,100 sq. ft. will be completed shortly thereafter with FLM having an additional 18 months
to fill the remaining space and qualify for Incentive Payment No. 2.
The attached Agreement proposes a total maximum incentive of $20,000 which is broken down as
follows:
Incentive No. 1 $10 000
> Construction of 4,200 sq. ft. on Lot 2R-2 located at FM 544 & Regency Drive
➢ Proof of Certificate of Occupancy for a 2,100 sq. ft. suite
> Capital Investment verified at$600,000
Incentive No. 2.... ......... ................... .................. $10,000
➢ Proof of Certificate of Occupancy for a second 2,100 sq. ft. suite
Should FLM Development fail to meet the Performance Measures for Incentive No. 1, the entire
Performance Agreement is voided in advance. Further, no partial incentive payments will be provided.
Staff recommended that the WEDC Board of Directors approve a Performance Agreement between
WEDC and FLM Development, LLC providing for a maximum incentive of $20,000 and further
authorizing the WEDC Executive Director to execute said Agreement.
MOTION: A motion was made by John Yeager and seconded by
Todd Wintters to approve a Performance Agreement between WEDC and FLM
Development, LLC providing for a maximum incentive of $20,000 and further
authorizing the WEDC Executive Director to execute said Agreement. The WEDC
Board voted 5—FOR and 0—AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 6—Staff report: review issues surrounding WEDC Performance Agreement Summary, 605
Commerce, Jarrard Property, Dallas Whirlpools, Ltd Property, ACG Texas, LP, Highway 78 WEDC
Pad Sites, WEDC Annual Report, Promotional Activities, and regional housing starts.
WEDC Performance Agreement Summary
Attached for the Board's review was a summary of all outstanding Performance Agreements including:
ACG Texas, LP, Ascend Custom Extrusion, All State Fire Equipment, B&B Theatres Operating
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November 18, 2016
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Company, Clark Street Development, Dank Real Estate, Exco Extrusion Dies, FLM Development,
Freudiger Holdings, Getset, KREA Acquisition, McClure Partners, Patna Properties, VIAA Properties,
Von Runnen Holdings, Wedge Corporation, Woodbridge Crossing, and Wylie Flower& Gift.
Woodbridge Crossing
Attached for the Board's review was the Sales Tax Reimbursement Report which identifies all sales
taxes received through September 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.
$3,853,100.08 in reimbursement has been earned through October 2016 with net receipts of
$3,071,966.19 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,
$127,653.30 was generated in sales tax in August 2016 versus $104,666.76 in August 2015. This
represents a 22%increase over 2015 receipts.
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 Mann Made,K&M,Business
Way, 111 N. Ballard, 908 Kirby, 201 Industrial Court, is processing the VCP application for the
Commerce &Wallace property, and processing the Municipal Setting Designation through the City.
Jarrard Property
The WEDC successfully negotiated a$25,000 reduction in purchase price for the Jarrard purchase which
is scheduled to close on December 30, 2016. As a reminder, a tenant currently occupies a portion of the
building. Staff will negotiate a month-to-month lease with the tenant which will include a 90-120 day
notice to vacate.
Dallas Whirlpools, Ltd Property
Staff is currently negotiating an amendment to the Purchase Agreement relating to a price reduction
based upon unanticipated expenses the WEDC must incur relating to existing environmental conditions.
Staff will provide a full report at the Board meeting.
ACG Texas, LP
IHOP will be at P&Z on December 6th and Council on December 13th seeking approval of a replat to
increase the width of their lot. Exterior elevations and a site plan has been attached for your review.
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November 18, 2016
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Highway 78 WEDC Pad Sites
CFA is approximately 45 days into their initial 90-day inspection period. The only unexpected issue is
that a Traffic Impact Analysis is required of CFA which only presents an issue from a timing perspective.
Proactively, the remaining two WEDC pad sites will be included within the study so as to identify any
traffic mitigation opportunities that we may not have been considered.
Promotional Activities
To facilitate interaction with the brokerage community and other community stakeholders, the WEDC
has a 1/4 interest(11 games)in Maverick's Season tickets for the 2016-17 Season. The Board will receive
a monthly report as to the utilization of said tickets as attached.
Regional Housing Starts
Twenty-six homes were permitted in Wylie for the month of October 2016. Sachse, Lavon, Murphy
permitted a combined thirty-one with Inspiration permitting thirteen homes over the same period.
No action was requested by staff for this item.
EXECUTIVE SESSION
Recessed into Closed Session at 7:16 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:
• F.M. 544 & Commerce
• Sanden&Hensley
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act).
• Project 2016-12a
• Project 2016-10a
• Project 2016-10b
• Project 2016-1Od
• Project 2016-10e
• Project 2016-1 la
Mayor Hogue departed at 7:57 a.m.
Mindy Manson departed at 8:39 a.m.
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November 18,2016
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RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 8:45 a.m. and took no action.
ADJOURNMENT
With no further business,President Fuller adjourned the WEDC Board meeting at 8:45 a.m.
Marvin Fuller,President
ATTEST:
" � 440.
Samuel Satterwhite,Director