10-10-2017 (WEDC) Agenda Packet i I I I
Wylie Economic Development
CORPORATION
Special eeting Agenda
October 10, 2017—7:00 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
Marvin Fuller.....,.... .. ..... ... ......., .......,.. .. ....... .......... ., ........ ......... ..........President
Todd Wintters....... , ...... . ......... . ........ .... .....; . ...Vice President
John Yeager ........ ......... .......... ....... .. .. ..... .......... ......... .... . ..... .........Secretary
Demond Dawkins. ..... ..:. ........... .. ... ........e. . . ..... ......... ..........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. lietexas. ov
within the required time frame.
CALL TOO' PER
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 WEDC Board requests that comments be limited to three (3) minutes. In
addition, the WEDC Board is not allowed to converse, deliberate or take action on any matter presented during citizen
participation.
ACTION ITEMS
h Consider and act upon approval of the September 20, 2017 Minutes of the Wylie Economic
Development Corporation(WEDC) Board of Directors Meeting.
EXECUTIVE SESSION
Recess into Closed Session 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:
• Cooper& Highway 78
• Birmingham & Highway 78
WEDC—Agenda
October 10, 2017
Page 2 of 2
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act). Deliberation regarding commercial or financial information that
the WEDC has received from a business prospect and to discuss the offer of incentives for:
• Project 2017-8a
RECONVENE INTO OPEN MEETING
ADJOU' NT
CERTIFICATION
I certibi that this Notice of Meeting was posted on this 6th day of October 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
mutes
Wylie Economic Development Corporation
Board of Directors Meeting
Wednesday, September 20, 2017—6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
CALL TO 0 ' I ER
Announce the presence of a Quorum
President Marvin Fuller called the meeting to order at 6:34 a.m. Board Members present were
John Yeager, Todd Wintters, and Demond Dawkins.
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
President Fuller welcomed citizen guest Lynn Grimes. Ms. Grimes thanked the Board for their
support of the Wylie Christian Care Center fundraiser at Freddie's and informed the Board that it
was a successful fundraiser.
With no further citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the September 5, 2017 Minutes of the
Wylie Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Demond Dawkins and seconded by
John Yeager to approve the September 5, 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 August 2017 WEDC Treasurers
Report.
Staff reviewed key items within the Treasurer's Report and emphasized that several incentives will
be fully paid in the next few months and will be removed from Deferred Outflows. In addition,
staff called the Board's attention to the following items: the purchase of a new recorder after the
failure of the old one; an as-built survey for Business Way was needed by NTMWD, Advertising
expenditures dedicated to the Regional Advertising Campaign, TEDC Travel expenses for the
Annual Conference being held October 18-20 in Houston, and closing costs for the Jackson Street
property which closed on August 24th. Staff informed the Board that Jason Greiner had been
nominated and voted upon by TEDC to serve on the TEDC Board of Directors for 2018. This will
require his attendance at 5 meetings per year. The Board congratulated Mr. Greiner.
WEDC—Minutes
September 20, 2017
Page 2 of 5
MOTION: A motion was made by John Yeager and seconded by
Todd Wintters to approve the August 2017 Treasurers Report for the Wylie
Economic Development Corporation. The WEDC Board voted 4—FOR and
0—AGAINST in favor of the motion.
ITEM NO. 3—Consider and act upon an amendment to a Performance Agreement between
Patna Properties, LLC and the WEDC.
To qualify for incentive payment#2 of 2 in the amount of$10,000, Patna Properties is required to
meet the following requirements:
1) Provide documentation to the WEDC supporting a minimum valuation of$707,000
for real and business personal property located at 615 State Highway 78 South; and
2) Certify that all ad valorem property taxes were paid in full no later than January 31,
2017.
Patna Properties is in compliance with the performance measure pertaining to a minimum valuation
(real property is at $1,014,230 and business personal property is at $58,325 totaling $1,072,555).
However, 2016 property taxes were not paid until April 3, 2017. Patna indicated that the late
payment was due to an address change.
Given that Patna Properties 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. Staff recommended that the WEDC Board of Directors approve a First
Amendment to the Performance Agreement extending the date by which Patna Properties, LLC
must have ad valorem property taxes paid to April 3, 2017 and approve the payment of Incentive
No. 2 in the amount of$10,000 per the terms of the Performance Agreement.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve a First Amendment to the Performance Agreement extending the date
by which Patna Properties, LLC must have ad valorem property taxes paid to
April 3, 2017 and approve the payment of Incentive No. 2 in the amount of
$10,000 per the terms of the Performance Agreement. The WEDC Board
voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4—Consider and act upon an amendment to a Performance Agreement between
WEDC and DCU, Inc.
Having operated in Wylie for the past 20 years in multiple locations, DCU, Inc. currently leases a
9,000 SF facility located at 908 W Kirby. As part of the 544 Gateway Project, 900 &908 W Kirby
are schedule for demolition. With DCU facing a possible relocation outside city limits, staff
encouraged DCU to identify property which would support a light industrial use and meet DCU's
operating criteria. Staff conveyed to DCU early on that a starting point for an incentive package
would be development fees which have been identified at no less than $31,534.
WEDC —Minutes
September 20, 2017
Page 3 of 5
DCU identified a suitable site within Regency Business Park, more specifically 2774 Capital
Street. The 1.275-acre tract is valued at $124,963 or $2.25 psf. DCU intends to construct an
11,200-square foot building with an estimated construction cost of$700,000 from DCU's general
contractor (this figure does not include excavation). Based upon $62.50 psf, staff believes this
figure to be greatly underestimated, but the majority of the facility is warehouse so possibly there
are some savings to be gained. To meet their natural gas needs, DCU intends to extend an existing
gas line approximately 670' at an estimated cost of$25,000 (per Atmos).
The Performance Measures and Incentive Payments are identified as follows:
Incentive No. 1 a $31,534
A Proof of application for Certificate of Occupancy for a 11,200-square foot facility
and letter from the City of Wylie Building Official stating compliance with
application requirements by August 1, 2018; and
A Proof of gas line extension approximately 670' to the sites eastern property line at
a cost of not less than$25,000; and
A Minimum construction cost of$700,000; and
A Development Fees imposed by the City of Wylie of not less than$31,534; and
A Ad valorem property taxes current.
Incentive No. lb ...„ $18,466
• Certificate of Occupancy for a 11,200-square foot facility not later than August 1,
2018.
• CCAD real &personal property valued at a minimum of$1,200,000; and
A Ongoing operations of DCU; and
A Ad valorem property taxes current.
Incentive No. 3 $25,000
• CCAD real &personal property valued at a minimum of$1,200,000; and
A Ongoing operations of DCU; and
A Ad valorem property taxes current.
Should DCU, Inc. fail to meet the Performance Measures for Incentive No. la, 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 DCU, Inc. providing for a maximum incentive of $100,000 and further
authorize the WEDC Executive Director to execute said Agreement.
WEDC—Minutes
September 20, 2017
Page 4 of 5
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve a Performance Agreement between WEDC and DCU, Inc. providing
for a maximum incentive of $100,000 and further authorize the WEDC
Executive Director to execute said Agreement. The WEDC Board voted 4—
FOR and 0—AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 5 - Staff report: Staff reviewed issues surrounding WEDC Performance Agreement
Summary, Environmental Activity Summary, Highway 78 WEDC Pad Sites, 544 Gateway
Property, and regional housing starts.
No action was requested by staff for this item.
ITEM NO. 6 — Discussion of issues to be placed on a future WEDC Board Meeting agenda (no
substantial consideration/discussion allowed).
Board Member Yeager requested that the Board include a review of the WEDC Bylaws on a future
agenda to identify any revisions that may be needed. Staff will include this item on a future
agenda.
Demond Dawkins left at 7:24 a.m. and returned at 7:29 a.m.
EXECUTIVE SESSION
Recessed into Closed Session at 7:25 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:
• Cooper& Highway 78
• Oak&Jackson
• Steel & Regency
• Brown & Highway 78
• Martinez& Alanis
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act). Deliberation regarding commercial or financial information that
the WEDC has received from a business prospect and to discuss the offer of incentives for:
• Project 2017-8a
• Project 2017-8b
Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
WEDC—Minutes
September 20, 2017
Page 5 of 5
Performance Evaluation—WEDC Executive Director
Jason Greiner and Angel Wygant left at 7:49 a.m. and returned at 8:09 a.m.
Demond Dawkins left at 8:09 a.m. and did not return.
Co 0 OPEN ETING
The WEDC Board of Directors reconvened into open session at 8:36 a.m. and took no action
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 8:36 a.m.
Marvin Fuller, President
ATTEST:
Samuel Satterwhite,Director