07-12-2017 (WEDC) Agenda Packet NOTICE OF MEETING
Wylie Economic Developm
CORPORATION
Special Meeting Agenda
July 12, 2017—6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78—Wylie, Texas
Marvin Fuller President
Todd Wintters Vice President
John Yeager Secretary
Demond Dawkins Treasurer
Bryan Brokaw Board Member
Mayor Eric Hogue Ex-Officio Member
Mindy Manson,City Manager Ex-Officio Member
Samuel Satterwhite Executive Director
Jason Greiner Assistant Director
Angel Wygant Senior Assistant
In accordance with Section 551.042 of the Texas Government Code, this agenda has been posted at the Wylie
Municipal Complex, distributed to the appropriate news media, and posted on the City Website: www.wylietexas.gov
within the required time frame.
CALL TO ORDER
Announce the presence of a Quorum.
CITIZEN PARTICIPATION
Residents may address the WEDC Board regarding an item that is or is not listed on the agenda. Residents must
provide their name and address. The Board requests that comments be limited to three (3) minutes. The WEDC
Board is not allowed to converse, deliberate or act on any matter presented during citizen participation.
ACTION ITEMS
I. Consider and act upon approval of the June 21, 2017 Minutes of the Wylie Economic
Development Corporation(WEDC) Board of Directors Meeting.
DISCUSSION ITEMS
II. (Remove from Table) Discuss WEDC FY 2017—2018 Preliminary Budget.
III. Discussion of issues to be placed on future WEDC Board Meeting agenda (no substantial
consideration/discussion allowed).
ADJOURNMENT
CERTIFICATION _
I cert that this Notice of Meeting was posted on this 7'h day of July 2017 at 5:00 p.m. as required by law in
accordance with Section 551.042 of the Texas Government Code and that the appropriate news media was contacted.
As a courtesy, this agenda is also posted on the City of Wylie website: www.wylietexas.gov.
Carole Ehrlich,City Secretary Date Notice Removed
Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Wednesday, June 21, 2017—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 and Bryan Brokaw.
Ex-officio members 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.
CITIZEN PARTICIPATION
With no citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the June 19, 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 June 19, 2017 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 2—Consider and act upon approval of the May 2017 WEDC Treasurers Report.
Staff noted that Incentive payments were made to Freudiger(payment 3 of 3) and to All State Fire
(payment 2 of 3) in a pro-rated amount previously approved by the Board. As well, CFA closed
on the purchase of WEDC property on Highway 78 on June 20th with funds wired into WEDC
accounts held at the City of Wylie. From the sale proceeds and as planned for in the FY 2016 —
2017 WEDC Budget, staff discussed the intent to make a $1 mm payment to American National
Bank as principal reduction on a loan secured to fund land acquisitions associated with the project.
MOTION: A motion was made by Demond Dawkins and seconded by
John Yeager to approve the May 2017 Treasurers Report for the Wylie
Economic Development Corporation. The WEDC Board voted 4—FOR and
0—AGAINST in favor of the motion.
WEDC—Minutes
June 21, 2017
Page 2 of 5
President Fuller proceeded to Action Item No. 5.
ITEM NO. 3—Consider and act upon issues surrounding the WEDC entering into a Listing
Agreement for brokerage services.
Staff informed the Board that,as previously directed by the Board,he had met with representatives
from CBRE, Edge Realty Partners, Falcon Realty Advisors, Henry S. Miller, The Retail
Connection and Davidson Bogle Real Estate. Of the firms interviewed, staff believed that 2 firms
separated themselves as best suited for the needs of the WEDC—The Retail Connection and Edge
Realty Partners.
Staff commented that while most every firm would provide excellent service and representation;
Edge Realty Partners has the most comprehensive knowledge of the market. The Board directed
staff to negotiate a brokerage agreement with Edge Realty Partners with the caveat that all projects
discussed within Executive Session to date be excluded.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
proceed with an Agreement between the WEDC and Edge Realty Partners for
brokerage services with the caveat that all projects discussed within Executive
Session to date be excluded from the Agreement. The WEDC Board voted
4—FOR and 0—AGAINST in favor of the motion.
President Fuller proceeded to Item 6.
ITEM NO. 4-Consider and act upon issues surrounding a Performance Agreement between
the WEDC and AMB Investments.
Staff indicated that per prior direction from the Board in Executive Session, a Performance
Agreement has been drafted for review and approval pertaining to financial assistance to AMB
Investments, Inc. (doing business as Taco Delight). AMB approached WEDC for assistance with
a $100,000 construction program consisting of renovations/upgrades including improvements to
exterior façade, lighting and infrastructure. Since initial discussions, the project expanded to
$130,000
While staff quoted preliminary figures of$14,000 in Qualifying Infrastructure, staff was only able
to identify $8,400 which is eligible for WEDC assistance.
Staff recommended that the WEDC Board of Directors approve a Performance Agreement
between the WEDC and AMB Investments, Inc. authorizing an incentive package of$8,400 based
upon the satisfaction of all called for Performance Requirements.
WEDC—Minutes
June 21, 2017
Page 3 of 5
MOTION: A motion was made by Bryan Brokaw and seconded by John Yeager to
approve a Performance Agreement between the WEDC and AMB
Investments, Inc. authorizing an incentive package of$8,400 based upon the
satisfaction of all Performance Requirements. The WEDC Board voted 5 —
FOR and 0—AGAINST in favor of the motion.
Todd Wintters arrived at 6:53 a.m.
President Fuller proceeded to Item 7.
ITEM NO.5—Consider and act upon issues surrounding a Performance Agreement between
the WEDC and T.W. Snider and Associates.
Staff reviewed for the Board that under the Snider Performance Agreement executed on 11-10-16,
Snider was eligible to receive up to $50,000 in incentives. Snider completed the finish out of
Phase II and received incentive payment No. 1 in the amount of$8,000. However, Snider informed
staff he will not meet the performance measures for Phase III.
Staff recapped the project for the Board and emphasized that this project has resulted in 7 new or
retained businesses, 9,600 square feet of finished office space, and existing parking to support an
additional 6,000 square feet in office space on a property ill-suited for any type of development
given the location, visibility, and access. Staff recommended that the WEDC Board of Directors
declare T.W. Snider&Associated, LLC in default of its Performance Agreement with the WEDC
and void in advance eligible incentive payments within Section II (b) thus terminating the
Agreement.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
declare T.W. Snider & Associates, LLC in default of its Performance
Agreement with the WEDC and void in advance eligible incentive payments
within Section II(b)thus terminating the Agreement. The WEDC Board voted
4—FOR and 0—AGAINST in favor of the motion.
President Fuller proceeded to Action Item 4.
DISCUSSION ITEMS
ITEM NO. 6—Discuss WEDC FY 2017—2018 Preliminary Budget.
In the interest of time,Marvin Fuller suggested that this item be Tabled to the next Meeting of the
WEDC Board of Directors.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
Table this item until the next Meeting of the WEDC Board of Directors. The
WEDC Board voted 4—FOR and 0—AGAINST in favor of the motion.
WEDC—Minutes
June 21, 2017
Page 4 of 5
ITEM NO. 7— Staff report: Staff reviewed issues surrounding WEDC Performance Agreement
Summary, Environmental Activity Summary, ICSC 2017 Real Estate Conference, Highway 78
WEDC Pad Sites, F.M. 544 / City of Wylie pad sites, WEDC Strategic Planning, and regional
housing starts.
Staff noted that the ICSC 2017 Real Estate Conference was very successful resulting in discussions
with new prospects including a sporting goods retailer, office suite buildings and mixed-use
projects. Staff emphasized that Jason Greiner met with an exciting new prospect looking to bring
a project that could even be bigger than Woodbridge Crossing.
Bryan Brokaw mentioned that this show was an excellent educational event and should be required
for all new Board Members in the future.
In the interest of time,President Fuller decide to Table the remainder of the Staff Report until after
Executive Session and move into Executive Session.
President Fuller proceeded to Executive Session before the conclusion of Item 7 which was
continued following Executive Session.
Staff report (continued): Staff resumed reviewing issues surrounding WEDC Performance
Agreement Summary, Environmental Activity Summary, ICSC 2017 Real Estate Conference,
Highway 78 WEDC Pad Sites, F.M. 544/City of Wylie pad sites, WEDC Strategic Planning, and
regional housing starts.
Staff suggested to the Board a Strategic Planning Session solely dedicated to future decision
making on various projects anticipated coming before the WEDC in the next 12 — 24 months.
Staff believed that one or two meetings solely dedicated to short and long-term planning goals and
objectives is warranted. President Fuller directed staff to send out a meeting request to Board
Members within the first two weeks of August.
No action was requested by staff for this item.
President Fuller proceeded to Item 3.
EXECUTIVE SESSION
Recessed into Closed Session at 7:02 a.m. in compliance with Section 551.001, et.seq. Texas
Government Code, to wit:
Demond Dawkins left at 7:17 a.m. and returned at 7:38 a.m.
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:
• Ballard & College
WEDC—Minutes
June 21, 2017
Page 5 of 5
• Jackson& Oak
• Birmingham & Hwy 78
• Ballard& Brown
• Highway 78 & Cooper
• Brown& 78
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
• Project 2017-la
• Project 2017-2a
• Project 2017-6a
• Project 2017-6b
• Project 2017-6c
Bryan Brokaw departed at 8:37 a.m.
Mindy Manson departed at 9:02 a.m.
RECONVENE INTO OPEN MEETING
The WEDC Board of Directors reconvened into open session at 9:23 a.m. and took no action.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 9:40 a.m.
Marvin Fuller, President
ATTEST:
Samuel Satterwhite,Director
Wylie Economic Development Corporation
MEMORANDUM
TO: WEDC Board of Directors
FROM: Sam Satterwhite, Executive Director_
SUBJECT: FY 2017—2018 WEDC Budget ��
DATE: July 7, 2017
Issue
(Remove from Table)Discuss WEDC FY 2017—2018 Preliminary Budget.
Analysis
To be consistent with what was presented on June 215, staff has left a majority of the content in
place for the memo and spreadsheet. The only change is that there was a line item under Travel
& Training, more specifically within ICSC — Nat'l, entitled Prospect Recruitment which was
inadvertently included. Prospect Recruitment is a line item which allows for unforeseen,project-
related expenditures but again, was included within the budget twice. The monies removed are
now within Future Projects.
The attached Fiscal Year 2017 — 2018 WEDC Budget provides an analysis of the projected
expenditures for next fiscal year. For this first review, staff will provide primarily an oral
presentation based upon the following budget highlights:
Available Funding $5,921,182
Beginning Fund Balance $1,668,950
Sales tax receipts 2,831,474
Rental income 99,000
Projected Base Line Expenses 3,991,691
Personnel 402,466
Fixed incentives 931,051
Special Services 132,200
Advertising 146,355
Community Development 52,350
Rental 29,100
WEDC—WEDC Budget
July 7, 2017
Page 2 of 2
Travel & Training 36,750
Dues 29,598
Audit&Legal 23,000
Engineering 32,500
Debt Service 2,036,520
Capital Outlay 91,926
Operating 37,876
The City of Wylie Finance Department has provided the WEDC with a projected $1.67 mm
beginning fund balance. Sales taxes for FY 16-17 are projected to come in at $2.7 mm with the
above FY 17-18 sales tax revenues developed with a conservative 5% increase.
Based upon the above expenses, which are largely determined by fixed commitments,the WEDC
will have an additional $1.93 mm in available resources. Keep in mind however that a budget
number has not been established for 'land acquisition' or the `Future Projects' line item within
Incentives.
Attached is a more detailed breakdown of the above revenue and expenses. Within revenue and
expenses, the sale of one WEDC pad sites is projected. Should a sale not occur, the revenue and
expenses (principal reduction, title policy, commission) will be equally offsetting. There are also
several references to a '544 Gateway Project' which identifies activities on WEDC/City property
acquired from a tax sale and the Dallas Whirlpool transaction.
Recommendation
N/A
Wylie Economic Development Corporation
FY 2017-2018 Budget
REVENUES FY 16-17 FY 17-18 notes
Unreserved Beginning Fund Balance(10-01) $465,686 $1,668,950 Verified with City
40210 Sales Tax 2,467,295 2,831,474 projected 16-17 plus 5%gain
46210 Allocated Interest Earnings 1,000 3,000
Note Receivable 11,958 11,958
Sale of WEDC Pad Site 1,350,000 1,306,800 1 pad sale
Infrastructure Participation-decel lane 41,000 0
Demolition Participation 74,758 0
48110 Rental Income
Steel Rd 6,000 6,000
106 N. Birmingham 12,000 12,000
711 Cooper 4,800 4,800
605 Comm-201 16,800 16,800
605 Comm-200 24,000 24,000
605 Comm-204 9,000 12,000
Delta-E 0 9,600
DCU 0 13,800 6 months
Auto Hail 0 0 anticipate demo
TOTAL REVENUES $4,484,297 $5,921,182
EXPENSES
51100 Personnel Services-Direct Comp.
51110 Salaries $267,575 $280,972 5%increase-Board discretion
51140 Longevity Pay 1,168 1,309
Total Direct Comp. 268,743 282,281
51200 Personnel Services-Other Comp.
51210 Car Allowance 12,600 12,600
51220 Phone Allowance 4,656 4,656
51300 Personnel Services-Retirement(TMRS) 42,427 44,468
51400 Personnel Services-Insurance
51410 Group Hospitalization&Life Ins. 32,521 32,713
51420 Long-Term Disability 1,471 1,602
51440 FICA 17,443 18,283
51450 Medicare 4,079 4,276
51470 Workers Compensation 716 777
51480 Unemployment Compensation-TWC 810 810
Total Insurance 57,041 58,461
TOTAL PERSONNEL SERVICES 385,466 402,466
SUPPLIES
52010 Office Supplies
Maps and Photography 1,000 1,000
Pad Folios-75 2,000 2,000 did not order in FY 16-17
Operating Supplies 1,500 1,500
Misc. 1,000 1,000
Total Office Supplies 5,500 5,500
52040 Postage and Freight
Courier Services(2/month @$20) 480 480
Postage 250 250
Misc. 250 250
Total Postage&Freight 980 980
Wylie Economic Development Corporation
FY 2017-2018 Budget
FY16-17 FY16-17
52810 Food Supplies
Leadership Wylie 400 400
Board Meetings 600 600
ICAN 250 250
Misc. 1,000 1,000
Total Food Supplies 2,250 2,250
54990 Other
WEDC Small Business Resource Center 5,000 5,000
TOTAL SUPPLIES 13,730 13,730
MATERIALS FOR MAINTENANCE
54810 Computer Hardware and Software(maintenance) 3,000 3,000
CONTRACTUAL SERVICES
56030 Incentives
Wdbrdg Ctr-Inland.-Sales Tax Reimbursement 257,024 279,000 Avg$60k/qtr+15%
B&B Theatre-Sales Tax Reimbursement 25,000 25,000 Avg$4,700/qtr
B&B Theatre Incentive(4 of 6) 25,000 25,000
Ascend Phase II(4 of 4) 24,000 0
CSD-Sales Tax Reimbursement 104,000 128,000 Avg$27k/qtr+IHOP,etc.
Dank Real Estate(3 of 3) 7,500 0
Getset(3 of 3) 10,000 10,000
EXCO(2 of 5) 20,000 20,000
Wylie Village Dentistry(2 of 2) 20,000 0
All State Fire Equipment(3 of 3) 20,000 20,000
Von Runnen(3 of 3) 10,000 10,000
KREA-Infrastructure Reimbursement(1 of 1) 100,000 100,000 will not fund in FY 16-17
KREA-H&M Occupancy Tax Reimbursement 0 63,000 9 months revenue
Freudiger(3 of 3) 30,000 0
Patna Properties(2 of 2) 20,000 10,000
ACG Texas(1 of 1) 35,000 0
FLM Development(1 of 1) 76,673 0
McClure Partners 50,000
REVA 100,000
REVA-H&M Occupancy Tax Reimbursement 26,250 3 months reimb after start date
Trout 15,000
SAF 45,000
T.W.Snider 0
Metalbilia 4,800
Future Projects 312,334 1,939,491
Total Incentives 1,096,531 931,050
56040 Special Services
Claritas(4 demographic studies) 700 300
Janitorial Services 1,900 1,900
Mowing 7,000 7,000
Leasehold Improvements 0 10,000 maintenance on lease prop.
Traffic Counts 3,000 3,000
Consulting Services 50,000 50,000 includes Retail Coach$10k
Whitehead&Mueller 50,000 50,000
Misc. 10,000 10,000
Total Special Services 122,600 132,200
56080 Advertising
The Wylie Connection(3) 0 0
Chamber Directory 1,000 1,500
Pirate/Wylie East Football 1,200 1,200
Chamber Banner Ad 1,500 1,500
Wylie News Newcomers Guide 2,100 1,555
Wylie Economic Development Corporation
FY 2017-2018 Budget
FY 16-17 FY 17-18
The Wylie News-misc. 300 500
Downtown Promotion 5,000 5,000
Promotional Materials 3,000 3,000
Regional Marketing Initiative 100,000 100,000
Woodbridge Scorecard 1,500 1,500
Website Maintenance 7,000 7,000
4Most Business Program(12) 18,600 18,600
Misc. 5,000 5,000
Total Advertising 146,200 146,355
56090 Community Development
Christian Care Golf Tnmt/Sponsorship 2,000 2,000
Wylie Chamber of Commerce:
Championship Rodeo 1,500 1,500
Banquet 1,500 1.500
Golf Tournament 500 0
Misc. 1,000 1,000
Rotary Club 1,000 1,000
WISD Education Foundation Sponsorship 1,500 1,500
Taste of Wylie 2,000 2,000
Regional Broker Event 10,000 10.000
Industrial Appreciation Event 5,000 5,000
Sporting Events 10,000 10,000
Flag Program 3,000 3,000
FFA Sale-Sponsorship 500 1,000
Merchants Assoc.-Downtown Events 500 500
Habitat Golf 500 500
Collin College Gala 2,500 2,500
Collin County Prayer Breakfast 250 600 $300/table
Coventry Event Sponsorship 1,000 1,000
Education Foundation Fit 4 Business event 5,250 5,250
4Most Events-materials 2,500 2,500
General Funds 5,000 5,000
Total Community Dev. 52,000 52,350
56110 Communications
Internet 2,400 2,400
Cell Phone Equipment 500 500
Office Lines 1,932 2,268
Microsoft Exchange 600 600
Sales Force License 2,550 2,800
Tablet Service 1,368 1,368
Total Communications 9,350 9,936
56180 Rental Expense
250 S. Hwy 78($2,250 @ 12 mo.) 27,000 27,000
Copier Service Agreement 2,328 2,100
Total Rental 29,328 29,100
56210 Travel,Training,and Recruitment
TEDC Conference
Annual-registration 1,200 1,200
Travel 750 750
Lodging 1,000 1,000
Meals 250 250
Wylie Economic Development Corporation
FY 2017-2018 Budget
FY 16-17 FY 17-18
ICSC-Nat'l
Registration 2,850 3,600 600 x 6?
Airfare 2,500 3,600 600 x 6?
Lodging 4,000 6,000 ±1,000 x 6?
Meals 1,500 2,400 400 x 6?
ICSC-Texas
Registration 500 500
Airfare 0 0
Lodging 0 0
Meals 400 400
Wylie/Collin County Days 4,000 0
Training-Assistant 500 500
Training-Director 1,000 1,000
Training-Assistant Director(3) 5,550 5,550
Prospect Recruitment 10,000 10,000
Total Travel, Train.&Recruit. 36,000 36,750
56250 Dues
IEDC(2) 810 810
TEDC(2) 1,000 1,000
Rotary(2) 1,440 1,458
Wylie Chamber of Commerce 1,500 1,500
Wylie Merchant Association 75 75
Woodbridge Golf Club 3,550 3,550
ICSC(8) 400 400
Notary Public 100 0 Renewal 11/18
Dallas Business Journal 75 105
Club Corp 7,610 7,800
DFW Marketing Team 2,500 2,500
Impact Data Source 4,500
Xcelligent 5,400
Misc. 500 500
Total Dues 19,560 29,598
56310 Insurance
General Liability&Loss Casualty 4,000 3,500 3,300 in 2016
Bond 310 310
Total Insurance 4,310 3,810
56510 Audit and Legal Services
Audit 3,000 3,000
Legal 20,000 20,000
Total Audit&Legal Services 23,000 23,000
56570 Engineering-Architect
Surveying 10,000 10,000
Engineering 7,500 20,000 544 Gateway Project
Misc. 2,500 2,500
Total Engineering-Architect 20,000 32,500
56610 Utilities
Electricity&Water 2,400 2,400
TOTAL CONTRACTUAL SERVICES 1,561,279 1,429,049
DEBT SERVICE&CAP.REPL FY 16-17 FY 17-18
Wylie Economic Development Corporation
FY 2017-2018 Budget
57110 Debt Service
Randack/Hughes 121,284 20,214
ANB-Peddicord/White 88,589 88,589
ANB-Buchanan 87,983 87,983
ANB-K&M/Hobart 104,943 104,943
Linduff/Edge(Pad) 204,718 204,718 Principal to be reduced from
$1.5 mm to$500k in FY 16-17
Kirby-Dallas Whirlpool 144,174 144,174
Woodbridge Parkway 159,215 159,215
Principal Reduction 1,000,000 1,226,684
Total Debt Service 1,910,906 2,036,520
CAPITAL OUTLAY
58110 Land
Acquisition 50,000 0
Title Policy 8,366 7,844 1 pad sale
Commission 70,500 72,272 1 pad sale
58210 Streets&Alleys
Infrastructure Improvements 331,300 0 544 Gateway Project
Downtown Parking 60,000 0
58810 Computer Hardware&Software 5,000 9,310 New Copier
58830 Furniture&Fixtures 2,500 2,500
TOTAL CAPITAL OUTLAY 527,666 91,926
OTHER FINANCING(USES)
59111 Transfer to General Fund
Interdepartmental Assistance(Finance Department) 5,000 5,000
TOTAL OTHER FINANCING(USES) 5,000 5,000
TOTAL EXP $4,407,048 $3,981,691
Wylie Economic Development Corporation
MEMORANDUM
TO: WEDC Board of Directors
FROM: Sam Satterwhite, Executive Director
SUBJECT: Agenda Items
DATE: July 7, 2017
Issue
Discussion of issues to be placed on future WEDC Board Meeting agenda (no substantial
consideration/discussion allowed).
Analysis
At the request of President Fuller, this item will be standard on all agendas to provide Board
Members with a specific opportunity to request that an issue be placed on a future agenda for
consideration. To date, items for consideration are originated predominately by staff and at times
by Board members with no formal policy in place.
The Board will note that no substantial consideration/discussion is allowed to prevent violation
of the Open Meetings Act which requires discussion/action items be placed on Agenda's with
specific language as to what will be discussed. For example, the above language will allow a
Board Member to present a request for a certain item to be placed on an agenda for consideration,
but not the ability for the same Board Member to argue the merits of the issue. Conversely,
another Board Member may not discuss the merits as to why they may not want that particular
item on a future agenda.
Recommendation
N/A