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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