05-13-2005 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
May 13,2005
Board Members Present
Gary Bartow
Marvin Fuller(arrived at 6:05 p.m.)
John Yeager
Merrill Young
Staff Present
Samuel Satterwhite, Executive Director
With notice of the meeting posted in time and manner required by law and a quorum of Board
members present, the Board of Directors of the Wylie Economic Development Corporation
(WEDC) met in Regular Session on May 13, 2005 in the Conference Room of Inwood National
Bank located at 200 South Highway 78, Wylie, Texas.
The meeting was called to order by Vice President Merrill Young at 5:45 p.m.
ITEM NO. 1 — Consider and Act Upon Approval of the December, 2004 Treasurer's
Report for the Wylie Economic Development Corporation.
MOTION: A motion was made by John Yeager and seconded by Gary Bartow to
approve the December, 2004 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 3 —FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 2 — Consider and Act Upon Approval of the January, 2005 Treasurer's Report
for the Wylie Economic Development Corporation.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager to
approve the January, 2005 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 3 —FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 3 —Consider and Act Upon Approval of the February, 2005 Treasurer's Report
for the Wylie Economic Development Corporation.
MOTION: A motion was made by John Yeager and seconded by Gary Bartow to
approve the February, 2005 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 3 —FOR
and 0—AGAINST in favor of the motion.
WEDC—Minutes
May 13, 2005
Page 2
ITEM NO. 4 — Consider and Act Upon Approval of the March, 2005 Treasurer's Report
for the Wylie Economic Development Corporation.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager to
approve the March, 2005 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 3 —FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 5 — Consider and Act Issues Surrounding WEDC Investment Accounts and
Short and Long Term Liabilities.
Staff reviewed with the WEDC Board the status of the WEDC assets and liabilities. The WEDC
operating account currently has approximately $138,000 and the Inwood National money market
account has $1,582,738. The upcoming liabilities, outside of standard operating expenses,
represent a $100,000 incentive payment to Bayco due near the end of June, the purchase of the
Ferrell site for $239,372, incentive payment #4 of 5 payments for $50,000 to Carlisle Coatings &
Waterproofing, and a note held by American National Bank for $1,054,632.
Staff recommended that monies equal to the Bayco, Ferrell, and Carlisle payments ($389,372) be
transferred from the Inwood money market to the WEDC operating account so that those specific
transactions can be more efficiently tracked and documented by the City of Wylie Finance
Department. Secondly, staff recommended that the note held by American National be paid off.
Staff indicated that there exists a 2.74% interest rate spread between the American National note
and the Inwood money market account. Also, while the WEDC could utilize the existing Inwood
funds to finance the Holland and Raynor purchases, Staff believes that the competitive bidding
process for those funds will be of benefit to the WEDC in terms of a reduced interest rate.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager
authorizing the transfer from Inwood National Bank to the WEDC
operating account $389,372 and authorize the WEDC Executive Director
and WEDC Treasurer Bowland to pay in full the WEDC note held by
American National Bank in the amount of ±$1,054,632. The WEDC
Board of Directors voted 4 — FOR and 0 — AGAINST in favor of the
motion.
ITEM NO. 6 — Consider and Act Upon Issues Surrounding a Loan Agreement Between
Carlisle Coatings & Waterproofing and the WEDC.
In review, on April 20, 2001, the WEDC conveyed 8.035 acres to Carlisle for the development of
their now existing 110,000 square foot manufacturing facility. In exchange for the conveyance,
Carlisle entered into a note (Note 1) with the WEDC for $350,000. In addition, the WEDC
committed to fund a $250,000 incentive payable over a five year period to defray construction
and relocation costs as defined in the Loan Agreement and further defined in Note 2.
WEDC—Minutes
May 13, 2005
Page 3
As required by the Loan Agreement, being that Carlisle in not in default under the Agreement,
the WEDC Board of Directors is required to forgive payments 2 & 3 ($116,667 and $116,666)
due under Note 1 and forgive the third advance under Note 2.
MOTION: A motion was made by Merrill Young and seconded by Gary Bartow to
forgive payments 2 & 3 due under Note 1 and forgive the third advance
under Note 2 all in accordance with the Loan Agreement between Carlisle
Coatings & Waterproofing and the WEDC. The WEDC Board of
Directors voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 7 — Consider and Act upon Issues Surrounding an Incentive Agreement
Between the WEDC and Sanden International (U.S.A.),Inc.
Staff indicated that the WEDC has been contacted by Sanden International officials with a
request for assistance in their permanent relocation to Wylie of inventory goods previously
located at their Miller Road facility. The estimated value of the inventory now located at the
former Carlisle plant is $8 million. Sanden has entered into a lease agreement with Greenway
Development, the current owner of the site, for a three year lease. Sanden hopes to identify a
permanent location for the 'new' inventory on its current location in Wylie, but could very well
continue occupying the Carlisle facility beyond the three year lease. Based upon the current tax
rate, Sanden will generate an additional $55,200 per year in personal property taxes to the City of
Wylie.
While Sanden has requested an incentive equal to 100% of the personal property taxes paid on
the 'new' value, staff has recommended an incentive equal to property taxes generated on 50%of
the new value or $27,800 per year. President Fuller directed staff to create a maximum value ($8
million) on which the incentive will be applicable. Furthermore, Fuller requested that Sanden
must submit documentation verifying inventory values located at said facility and taxes paid on
the same to receive the 50% incentive.
MOTION: A motion was made by Merrill Young and seconded by John Yeager
authorizing Staff to negotiate an incentive agreement between the WEDC
and Sanden International. The WEDC Board of Directors voted 4 — FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 8 — Executive Session. Convene into Executive Session to Hold Deliberations
Regarding Real Property (Purchase of Real Property within the Wylie Community by the
WEDC) as Authorized in Section 551.072 of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
The WEDC Board of Directors convened into Executive Session at 6:45 p.m.
WEDC—Minutes
May 13, 2005
Page 4
ITEM NO. 9—Reconvene Into Open Meeting.
The WEDC Board of Directors reconvened into open meeting at 7:50 p.m. No motion or action
was taken as a result of discussions held in Executive Session.
ITEM NO. 10—Staff Report.
Staff had nothing further to report.
ITEM NO. 11 —Citizen Participation.
There being no citizen participation, President Fuller proceeded to Item No. 12.
ITEM NO. 12—Adjourn.
There being no further business, the meeting was adjourned at 8:00 p.m.
77,4
,
Marvin Fuller, President
Attest:
Samuel D.R. Satterwhite
Executive Director