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03-21-2017 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Tuesday, March 21, 2017 —6:30 A.M. WEDC Offices—Conference Room 250 South Highway 78 —Wylie, Texas CALL TO ORDER Announce the presence of a Ouorum President Marvin Fuller called the meeting to order at 6:33 a.m. Board Members present were John Yeager, Todd Wintters and Bryan Brokaw. Demond Dawkins arrive at 6:35 a.m. Ex-officio member Mindy Manson, City Manager was present. WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner and Senior Assistant Angel Wygant. CITIZEN PARTICIPATION President Fuller welcomed citizen guests Lynn Grimes and Ian McGregor. Ms. Grimes reminded the Board that Taste of Wylie was scheduled for Monday, April 24th and encouraged Board members to attend if they were available. With no further citizen participation, President Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 — Consider and act upon approval of the February 24, 2017 Minutes of the Wylie Economic Development Corporation (WEDC)Board of Directors Meeting. MOTION: A motion was made by John Yeager and seconded by Bryan Brokaw to approve the February 24, 2017 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 February 2017 WEDC Treasurers Report. Staff covered the highlights of the Treasurers Report noting that Ascend had been paid their final Incentive payment. He also noted that lease payments were in good standing with all but one tenant current and that tenant being 3 weeks in arrears. Staff expects that situation to be corrected shortly. MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins to approve the February 2017 Treasurers Report for the Wylie WEDC —Minutes March 21, 2017 Page 2 of 7 Economic Development Corporation. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 3 — [Remove from Table} Consider and act upon issues surrounding a Performance Agreement between WEDC and SAF-Holland USA. MOTION: A motion was made by Todd Winters and seconded by John Yeager to Remove Item from Table. The WEDC Board voted 5 —FOR and 0 —AGAINST in favor of the motion. As directed in Executive Session, WEDC counsel has drafted a Performance Agreement between the WEDC and SAF-Holland USA(Holland). The value of the new equipment along with additional capital investment in personal property is estimated at $4.67 mm. The economic incentive over the next four years to Holland is based upon new jobs created and new personal property value. Mr. Jason Greiner has been working with Impact Data Source which develops economic models to evaluate the cost-benefit to a community providing incentives to new or expanding companies. Mr. Greiner and Impact Data Source finalized the analysis and provided a full oral and written report to the Board. Two Economic Impact analysis scenarios were provided to the Board and Mr. Greiner explained how the differing data input on the number of employees affected the short and long-term economic impact to the community. Staff mentioned that the President of SAF-Holland had offered to host the WEDC Board for a tour of the facility if the Board would be interested in that at a later date. The Board indicated they would like to tour the facility. Staff recommended that the WEDC Board of Directors approve a Performance Agreement between the WEDC and SAF-Holland USA. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to approve a Performance Agreement between the WEDC and SAF- Holland USA. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. Mayor Eric Hogue arrived at 6:53 a.m. ITEM NO. 4 - Consider and act upon an agreement with Impact Data Source for consulting services. Attached for review was a proposal from Impact DataSource for Consulting Services. The program would allow WEDC Staff to develop more in-depth economic impact analysis when evaluating projects. Impact DataSource would prepare and provide a custom Impact DashBoardTM or computer model that analyzes the overall economic and fiscal impact of each unique project. The web based application is WEDC —Minutes March 21, 2017 Page 3 of 7 designed with our local tax rates and then analyzes each project's capital investment, job creation and average wage. As was shown on Page 3 of the proposal, the annual subscription fee equals $4,750 which establishes a one-year service agreement. A six-month subscription is available to us as well for $2,375. This reduced amount would cover the remainder of this fiscal year and then the Board will have the option to renew the subscription at the annual rate in the new budget year. Board Member Dawkins inquired about previous projects to see what the payback period was in actuality. Satterwhite indicated that Mr. Greiner would be charged with taking a sampling of pervious projects to determine if our internal projects were accurate. Staff recommended that the WEDC Board of Directors authorize the assistant director to enter into an agreement with Impact DataSource in the amount of$2,375 for the creation and subscription of our own Impact DashBoardTM. MOTION: A motion was made by Bryan Brokaw and seconded by Todd Wintters to authorize the assistant director to enter into an agreement with Impact DataSource in the amount of$2,375 for the creation and subscription of our own Impact DashBoardTM. The WEDC Board voted 5 —FOR and 0 —AGAINST in favor of the motion. ITEM NO. 5 — Consider and act upon issues surrounding the construction of parking improvements on WEDC property located at 111 N. Ballard. MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to Remove Item from Table_ The WEDC Board voted 5 —FOR and 0— AGAINST in favor of the motion. Staff informed the Board that the City Engineer had received the plans for parking improvements on WEDC property located adjacent to and south of Boyd Recording Studio on Ballard Street. The plans identify 18, angled parking spaces coming in from Ballard Street and exiting around the east side of property owned by Mr. Billy Conkle to Oak Street as was shown on the provided Paving Plans. Following comments and final approval from the City Engineer, Helmberger Associates will send these plans out for bid to at least three qualified contractors. Construction costs have been estimated at $105,000 for paving and $25,000 for Oncor to relocate two existing utility poles and replace multiple transformers. Mr. Greiner received the Oncor estimate via email but will now send final plans to Oncor for a more formalized quote. The only outstanding issue is the unknown cost for relocating Frontier service lines which Mr. Greiner is currently pursuing. Staff recommended that the WEDC Board of Directors authorize the Executive Director to enter into a Construction Contract for parking improvements and an Agreement with Oncor for the relocation of utility poles and transformer upgrades not to exceed $135,000 cumulatively. WEDC —Minutes March 21, 2017 Page 4 of 7 President Fuller inquired about the need for a designated handicap spot in the parking improvements. The Board agreed that it might be advantageous to offer one near the sidewalk along Ballard across from Olde City Park. Staff was directed to explore this option as well as the possibility and costs associated with creating deeper parking spots, where possible, extending to the edge of the property owned by Boyd Studios. Staff will explore incorporating these adjustments into the final design subject to approval by the City Engineer. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to authorize the Executive Director to enter into a Construction Contract for parking improvements and Agreement with Oncor for the relocation of utility poles and transformer upgrades not to exceed $135,000 cumulatively. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 6 — Consider and act upon an amendment to a Performance Agreement between WEDC and DANK Real Estate Ltd. Staff reviewed for the Board the requirements necessary for DANK Real Estate to qualify for incentive payment 3 of 3. DANK is in compliance with the terms of the performance agreement having a real property valuation of$939,362 and a business personal property valuation of$367,728 for a total taxable valuation of$1,307,090. However, this year's property taxes were inadvertently overlooked and were not paid until February 24, 2017. Given that DANK Real Estate is current on property taxes, penalties and interest, and has complied with all other terms of the Performance Agreement, staff believed that the spirit of the agreement had been upheld and recommended that the Board approve a First Amendment to the agreement allowing for an extension by which DANK Real Estate, Ltd must have ad valorem property taxes paid to February 24, 2017. MOTION: A motion was made by John Yeager and seconded by Todd Wintters to approve a First Amendment to the Performance Agreement between WEDC and DANK Real Estate, Ltd. allowing for an extension of the time period by which ad valorem property taxes must be paid to February 24, 2017. The WEDC Board voted 5 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 7-Consider and act upon an amendment to a Performance Agreement between WEDC and VIAA Properties, LLC. Staff reviewed for the Board the requirements for VIAA Properties, LLC to qualify for incentive payment 2 or 2. VIAA is in compliance with the terms of the performance agreement having a real property valuation of$1,162,446 and a business personal property valuation of$99,600 for a total taxable valuation of$1,262,046. However, this year's property taxes were inadvertently overlooked and were not paid until February 14, 2017. WEDC —Minutes March 21, 2017 Page 5 of 7 Given that VIAA Properties, LLC is now current on property taxes, penalties and interest, and has complied with all other terms of the Performance Agreement, staff believed that the spirit of the agreement had been upheld and recommended that the Board approve a First Amendment to the agreement allowing for an extension of the time period by which ad valorem property taxes and fees must be paid to February 14, 2017. MOTION: A motion was made by Bryan Brokaw and seconded by John Yeager to approve a First Amendment to the Performance Agreement between WEDC and VIAA Properties, LLC allowing for an extension of the time period by which ad valorem property taxes and fees must be paid to February 14,2017. The WEDC Board voted 5 —FOR and 0 —AGAINST in favor of the motion. City Manager Mindy Manson departed the meeting at 7:45 a.m. ITEM NO.8-Consider and act upon an amendment to a Performance Agreement between WEDC and Getset, LLC. Staff reviewed for the Board the requirements for Getset, LLC to qualify for incentive payment 2 of 3. Getset is in compliance with the terms of the performance agreement having a real property valuation of $937,428 and a business personal property valuation of $815,551 for a total taxable valuation of $1,752,979. Property taxes for business personal property were paid on 1/30/17 but real property taxes were inadvertently overlooked and not paid until March 15, 2017. Given that Getset, LLC is current on property taxes, penalties and interest, and has complied with all other terms of the Performance Agreement, staff believed that the spirit of the agreement had been upheld and recommended that the Board approve a First Amendment to the agreement allowing for an extension of the time period by which real property ad valorem property taxes must be paid to March 15, 2017. MOTION: A motion was made by John Yeager and seconded by Bryan Brokaw to approve a First Amendment to the Performance Agreement between WEDC and Getset, LLC allowing for an extension of the time period by which ad valorem property taxes must be paid to March 15, 2017. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 9 — Staff report: review issues surrounding WEDC Performance Agreement Summary, Environmental Activity Summary, Meeting Date/Time, Highway 78 WEDC Pad Sites, F.M. 544 pad sites, Local Entrepreneur Focus Group,Promotional Activities, and regional housing starts. No action was requested by staff for this item. WEDC —Minutes March 21, 2017 Page 6 of 7 ITEM NO. 10—Discuss issues surrounding a Regional Advertising and Marketing Initiative. Staff reminded the Board that within the FY 2016 — 2017 Budget, the WEDC Board of Directors dedicated $100,000 for regional advertising and marketing with the intent of promoting Wylie to the smaller region of Garland, Richardson, Plano, Allen, McKinney and to the larger region of the D/FW metroplex. In collaboration with City of Wylie Public Information Office, staff presented a proposed outline of the program for discussion and input. Mr. Craig Kelly, with whom Staff has been collaborating, has assisted in developing the plan details and further agreed to facilitate and help with implementation. The branding exercise will most likely begin with a Council work session to receive general direction. The balance of efforts will be event driven. Staff noted that the identified line items only represent $74,000 of the budgeted $100,000. Year 2 of this multi-year campaign could be judged against the above efforts and refined accordingly. As well, Year 2 would obviously not include funding for Brand Development. Staff presented this Item for information only. Board Member Bryan Brokaw departed the meeting at 8:29 a.m. EXECUTIVE SESSION Recessed into Closed Session at 8:32 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: • Birmingham &Highway 78 • Brown & Ballard Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code Annotated (Open Meetings Act). • Project 2015-12a • Project 2016-10a • Project 2017-la • Project 2017-2a • Project 2017-3a • Project 2017-3b RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:56 a.m. and took no action,. WEDC—Minutes March 21, 2017 Page 7 of 7 ADJOURNMENT With no further business,President Fuller adjourned the WEDC Board meeting at 8:56 a.m. "'A ,1 Mr Marvin Fuller, President ATTEST.. mm Samuel Satterwhite,Director