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12-22-2017 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Friday, December 22, 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 6:44 a.m. Board Members present were Todd Wintters, and Bryan Brokaw. Ex-officio member Mayor Eric Hogue was 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 November 15, 2017 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by Todd Wintters and seconded by Bryan Brokaw to approve the November 15, 2017 Minutes of the Wylie Economic Development Corporation. The WEDC Board voted 3 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 2 — Consider and act upon approval of the November 2017 WEDC Treasurer's Report. Staff reviewed key items within the Treasurer's Report and called the Board's attention to the payoff of American National Bank loan 88130968. A hand out was distributed to the Board showing a historical analysis of property valuations within Wylie. MOTION: A motion was made by Bryan Brokaw and seconded by Todd Wintters to approve the November 2017 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board voted 3 — FOR and 0—AGAINST in favor of the motion. ITEM NO.3—Consider and act upon issues surrounding a First Amendment to Performance Agreement between the WEDC and Ron & Carole Trout. Staff reviewed that the WEDC signed a Performance Agreement with Trout on January 9,2017 in an effort to spur development of a commercial property (4,944 square feet) on a Highway 78 site WEDC—Minutes December 22, 2017 Page 2 of 4 near the intersection of Eubanks & 78. Much of the reasoning behind the assistance package was to promote investment on a property with significant access and visibility challenges. Mr. Trout was required to obtain a Certificate of Occupancy by 12/31/17 and provide documentation supporting minimum construction costs of$340,000 as well as certify that all ad valorem taxes on the property were current. Due to construction delays and challenges associated with obtaining permanent power to the building, Trout has not received a Certificate of Occupancy on the property. All other conditions have been met. Trout indicated via correspondence presented on December 14, 2017 that he anticipates completion within the next 30 days and finish out for a prospective tenant by the end of March. The Board agreed that this was a good project facilitating the development of a property challenging commercial options. To account for any future unanticipated delays, the Board directed staff to amend the time frames contained in the proposed First Amendment to the Performance Agreement to allow for issuance of a Certificate of Completion by the City of Wylie on or before May 1,2018,and the time frame for receiving a Certificate of Occupancy for Incentive Payment No. 2 to December 31, 2018. MOTION: A motion was made by Todd Wintters and seconded by Bryan Brokaw to approve a First Amendment to a Performance Agreement between the WEDC and Ron&Carole Trout, as amended. The WEDC Board voted 3 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 4 — Consider and act upon issues surrounding utility improvements impacting WEDC pad sites on State Highway 78. Staff informed the Board that there is an 8" water line coming off the Industrial Court cul-de-sac that runs right in the middle of what staff believes to be the buildable area for future development. The City of Wylie Water Department has agreed to install the line if the WEDC is willing to purchase the materials which have been estimated at$3,698. Staff recommended that the WEDC Board of Directors authorize the purchase of materials required to relocate a water line on WEDC Property near Birmingham and Hwy 78 along with professional services required for creating an easement for the same. MOTION: A motion was made by Todd Wintters and seconded by Bryan Brokaw to authorize the purchase of materials required to relocate a water line on WEDC Property near Birmingham and Hwy 78 along with professional services required for creating an easement for the same. The WEDC Board voted 3 — FOR and 0—AGAINST in favor of the motion. DISCUSSION ITEMS ITEM NO. 5—Discuss issues surrounding the 2017 WEDC Annual Report. WEDC—Minutes December 22, 2017 Page 3 of 4 Staff called the Board's attention to the 2017 Annual Report outline for the Board's review and requested input prior to finalizing the report. The WEDC Annual Report is scheduled to be presented to Council on January 24, 2018. It is staffs intent to provide a historical recap and more comprehensive report of the WEDC's holdings, strategy, and performance in 2017. The final Report will be presented for approval at the January WEDC Board Meeting. ITEM NO. 6 - Staff report: Staff reviewed issues surrounding WEDC Performance Agreement Summary,Environmental Activity Summary,Highway 78 WEDC Pad Sites,544 Gateway Property, KREA Acquisitions, LLC, Promotional Activity and regional housing starts. Staff reported that multiple incentive payments will be due in January and February 2018. Woodbridge Crossing has new construction between Kohls and Dollar Tree and a site plan for ULTA and Sketchers has been approved by the City. Chick-Fil-A construction is well underway. CFA has brought in significant fill dirt and the grading being conducted will help with drainage for surrounding businesses. SAF Holland Performance Agreement valuation requirements for personal property have been impacted by the removal of older equipment in preparation for the new equipment contemplated in the Agreement. Unfortunately, the timing for this equipment removal decreased their personal property valuation for 2017. Staff will be looking for direction from the Board on potential amendments to amend the valuation requirement for this first year to accommodate the timing of this new investment. FEMA documentation has been received confirming that the flood study undertaken on the 544 Gateway property has been completed with the Letter of Map Revision in place. WEDC environmental attorney has indicated that the groundwater readings are still higher than allowable levels on the City site and will require that this property be placed within an MSD. The soil levels are good and are covered by the EPA Ready for Reuse program. As staff has reported on numerous occasions, KREA has experienced delays. As a reminder, the original performance agreement has been amended twice and the CO deadline of 11/30 was not met placing KREA in default. Mr. Kash Parbhu has written a letter, attached to this report, explaining the reason for the delays and asking for consideration regarding a partial incentive payment. President Fuller appreciated the `tone' of the letter and deferred further discussion of this issue to Item 7 to see if any Board members are interested in placing this item on a future agenda. Mr. Sam Satterwhite indicated that he will be unable to attend ICSC RECon — 2018 but had the utmost confidence in Mr. Greiner's ability to coordinate WEDC efforts. ITEM NO. 7 —Discussion of issues to be placed on a future WEDC Board Meeting agenda (no substantial consideration/discussion allowed). WEDC—Minutes December 22, 2017 Page 4 of 4 President Fuller requested that KREA be placed on the next Agenda to be considered by the Board. Board Member Brokaw requested that SAF Holland Performance Agreement be included in a future agenda as well. EXECUTIVE SESSION Recessed into Closed Session at 7:44 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& 544 • Brown &Highway 78 • Brown&Eubanks • Steel &Regency Mayor Hogue departed at 8:30 a.m. 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 2015-12a • Project 2017-8a • Project 2017-11a • Project 2017-1 lb • Project 2017-12a • Project 2017-12b RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 9:11 a.m. and took no action. ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 9:11 a.m. 1140111/1/1 Marvin Fuller, President ATTEST: Samuel Satterwhite, Director