03-11-2018 (WEDC) Minutes mutes
Wylie Economic Development Corporation
Board of Directors Meeting
Sunday, March 11, 2018 —2:30 P.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 2:32 p.m. Board Members present were
Bryan Brokaw and Demond Dawkins.
Ex-officio member Mayor Eric Hogue was present.
WEDC staff present was Executive Director Sam Satterwhite 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 February 28, 2018 Minutes of the
Wylie Economic Development Corporation DC) Board of Directors Meeting.
MOTION: A motion was made by Demond Dawkins and seconded by
Bryan Brokaw to approve the February 28, 2018 Minutes of the Wylie
Economic Development Corporation. The WEDC Board voted 3 —FOR and
0—AGAINST in favor of the motion.
ITEM NO. 2 — (Remove from Table) Consider and act upon issues surrounding a
Performance Agreement between Cross Development,LLC and the WEDC.
MOTION: A motion was made by Bryan Brokaw and seconded by
Demond Dawkins to Remove the Item from Table. The WEDC Board voted
3 —FOR and 0—AGAINST in favor of the motion.
Staff thanked the Board for coming in on Sunday due to the inability to secure a quorum for the
week of March 12th and Cross hoping to close on the property on March 16th. As reported at the
2-28-18 WEDC Board Meeting, Council directed WEDC staff to address several concerns
surrounding the Cross project which were as follows:
• The land south of the Explorer Pipeline Easement may never be developed based upon
multiple development challenges relating to accessibility and potential Contaminants
remaining on-site;
• The unknown timing related to Phase II; and
• The amount of waived fees and WEDC monies recommended by staff may not be
commensurate to the project benefits based upon the unknown timing for Phase II.
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March 11, 2018
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Staff provided a review of the entire project with Cross presenting the mixed-use project to Council
on 2-13-18 which approved zoning for the 286-unit multi-family development with commercial
uses on the 15.72-acre tract. Project costs will be in excess of$32,000,000 for the multi-family
alone. Now with zoning complete, Cross is awaiting Council and WEDC Board decisions prior to
closing on the property.
As reported to the Board previously, the premise behind considering financial assistance is based
upon the site being underperforming, excessive site work costs, and the significant benefit this
project will bring to surrounding commercial properties. Staff is recommending that in addition
to the potential fee waivers of $475,000 being considered by Council, the WEDC approve
$250,000 in reimbursement of qualified infrastructure. Based upon estimated net development
fees imposed by the City of$325,000 and using an assumption of new taxable value of at least
$30,000,000 on the multi-family component of the project alone,the rate of return on investment
(ROI)will be approximately 6 months on the entire package with an annual net benefit to the City
of Wylie in the amount of$365,000. Net benefit is comprised of sales tax, property tax, fees,
utility revenue,and franchise fees less cost of utility and governmental services. For clarification,
the ROI utilizes property taxes generated by the multi-family component with partial value
generating taxes in 2020.
As summarized in the Agreement and shown on the attached site plan, commercial development
associated with the project is depicted as 2, 3,500 square foot restaurant pads,2,300 square feet of
general retail, and 18,600 square feet of office space within what is identified as Phase II.
Company Obligations (performance measures) associated with the project are as follows: (1)
project cost for Phase I of at least$32,000,000, (2)purchase the 15.72 acres no later than March
20, 2018, (3) break ground on the multi-family component no later than August 1, 2018, (4)
certificates of occupancy issued on all multi-family no later than September 1, 2020, (5)provide
documentation supporting the expenditure of no less than $500,000 in site work to address the
removal/remediation of polypropylene and shredded plastics and site preparation, (6) certificates
of completion on 2,300 square feet of general retail and 3,200 square feet of restaurant space no
later than September 1, 2020. Should Cross fail to meet any of the above Obligations, the
contemplated waived fees will be due and payable prior to the issuance of any Certificate of
Occupancy and all WEDC assistance will be void in advance of payment
After receiving input from Council at the February 27th Meeting, staff approached the developer
in an effort to tie a portion of the contemplated fee waivers and WEDC reimbursements to some
portion of Phase II. While Cross Development was unable to commit to the timing of the office
product,Council's concern over the 'development' obstacles can be address within the Agreement
as follows:
In addition to the previously presented Company Obligations, Cross must now provide
documentation evidencing that the property south of the Explorer Pipeline Easement is accessible
to vehicular traffic, the property is free from Contaminants caused by Electro Extraction, Inc.
operations,and that the same area is actively being marketed for commercial uses consistent within
the existing PD-MF/CR under Zoning Case 2017-12.
Staff emphasized that Council will meet on this item after the Board Meeting on the 1 lth and that
any decision of the Board is subject to Council approval. Staff asked Mayor Hogue if a WEDC
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March 11,2018
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decision coming out before Council would be perceived negatively by Council being that the City
is taking the 'lead' on this project. Mayor Hogue commented that in light of the proposed closing
on the land and the inability to secure a quorum after the Council meeting,he did not see any issue
with the WEDC making a decision subject to Council approval.
MOTION: A motion was made by Bryan Brokaw and seconded by
Demond Dawkins to approve the Performance Agreement between Cross
Development,LLC and the WEDC subject to Council approval. The WEDC
Board voted 3 —FOR and 0—AGAINST in favor of the motion.
ADJOU' NT
With no further business,President Fuller adjourned the WEDC Board meeting at 3:02 p.m.
Marvin Fuller,President
ATTEST:
Samuel Satterwhite,Director