05-17-2004 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
May 17, 2004
Board Members Present
Gary Bartow
Marvin Fuller
John Yeager
Merrill Young (departed at 8:50 a.m.)
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 17, 2004 in the Dividend Room of Inwood National
Bank located at 201 North Ballard, Wylie, Texas.
The meeting was called to order by President Marvin Fuller at 7:03 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the April 26, 2004 Regular
Board of Directors Meeting of the WEDC.
MOTION: A motion was made by John Yeager and seconded by Gary Bartow
approving the minutes for the April 26, 2004 Regular Board of Directors
Meeting of the WEDC. The WEDC Board of Directors voted 4 — FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 2 - Consider and Act Upon Issues Surrounding a Loan Agreement Between the
WEDC and Multi-Machining.
Staff indicated that Mr. Linduff, President of Multi-Machining, is in compliance with all
Affirmative Covenants associated with the Loan Agreement between Mr. Linduff and the WEDC
and furthermore no Event of Default exists. Therefore, the WEDC is required by the Loan
Agreement to forgive the final payment ($16,137.66) and all interest associated with the Loan
Agreement.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager
forgiving Payment 3 ($16,137.66) and all associated interest as required by
the Loan Agreement between the WEDC and Tony D. Linduff. The
WEDC Board of Directors voted 4 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 3 — Discuss and Consider Issues Surrounding Strategic Planning for the
WEDC.
Staff presented a detailed analysis of surrounding communities within Collin, Rockwall, and
Kaufman Counties which have 4A, 4B, and Property Tax Reduction (PTR) sales tax programs.
WEDC —Minutes
May 17, 2004
Page 2
Of particular interest is these programs impact on property tax rates in each community. At this
time, only raw data was presented. Commentaries from local officials regarding impact of 4A
and PTR have not been collected as of yet.
The only communities passing PTR are Rockwall, Greenville, and Terrell. Staff indicated that
only Rockwall and Terrell passed PTR along with 4A and Greenville reduced their PTR rate in
2002 to pass a 4A initiative. Of particular interest to the Board was that Wylie had passed the 4A
and PTR initiatives at the same time. However, the filing of the PTR initiative at the State level
was not done properly and PTR was never collected or initiated. Being that the sales tax was not
at its 20 cap; in 1994 Wylie passed the 4B sales tax. Neither Rockwall, Terrell, nor Greenville
has the 4B tax.
Both Rockwall and Terrell property tax rates have remained relatively constant since the passage
of PTR(decreased 5% and increased 5%respectively) while the Greenville tax rate has increased
by 20% since the inception of PTR. Since 1997 (the year staff estimates that WEDC investments
have significantly impacted the Wylie tax base), the City of Wylie tax rate has increased by 4.4%
with a 2.8% decrease since 2000.
The following was presented by staff as an analysis of what the current tax rates would have to
be to generate the same revenue for the municipalities if PTR was not in effect.
Effective %
Tax rate w/out PTR increase since
Existing Tax Rate PTR Reduction for same revenue year prior to PTR
Rockwall 0.36 0.111 0.471 2.4%
Greenville 0.7992 0.147 0.9462 29.6%
Terrell 0.65 0.224 0.874 18.1%
PTR revenue has increase 150% since passage of PTR for Rockwall, Terrell has increased 151%
and Greenville has increased 4.3% (Greenville reduced their PTR collection rate by 25% in
2002). The Wylie tax rate has increased by 27% since passage of the 4A sales tax. Based upon
the S95,740,500 in assessed valuation of EDC projects, the City of Wylie tax rate is reduced by
60 each year. Therefore, the effective percent change since prior to 4A for Wylie (adding back in
the 60 and utilizing the same logic as the `effective % change since year prior to PTR') equals a
13% increase.
At a future Board meeting, staff was instructed to gather commentary from community leaders in
Rockwall, Terrell, and Greenville to determine if PTR is working as proposed as well as
commentary from Allen, Frisco, and McKinney as to why PTR has not been pursued.
Furthermore, staff will approach Regency from a different perspective to potentially develop the
park from a rear forward perspective.
In addition to the chart provided by staff relating to communities possessing 4A, 4B, or PTR
initiatives, staff was also instructed to determine population and assessed valuation for each
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May 17, 2004
Page 3
studied community in relation to Wylie. As well, President Fuller instructed staff to determine if
any city in the state has reduced 4A to initiate PTR.
No action was taken as a result of discussions surrounding Item No. 3.
ITEM NO. 4 - EXECUTIVE SESSION:
The WEDC Board of Directors convened into Executive Session at 7:28 a.m. to hold
deliberations surrounding the sale of WEDC property located at 404 S. Highway 78 in
accordance with Section 551.072, Government Code, Vernon's Texas Code Annotated (Open
Meetings Act), hold deliberations regarding economic development negotiations between the
WEDC and Bayco Products, Inc. in accordance with Section 551.087, Government Code,
Vernon's Texas Code Annotated (Open Meetings Act), and hold deliberations surrounding
personnel matters (evaluation of the Executive Director) as authorized in the Local Government
Code, Section 551.074 in accordance with Government Code, Vernon's Texas Code Annotated
(Open Meetings Act).
ITEM NO. 5—RECONVENE INTO OPEN MEETING:
The WEDC Board of Directors reconvened into open meeting at 9:00 a.m. The WEDC was
presented with three contracts for the sale of WEDC property located at 404 S. Highway 78. Of
the contracts presented by KMS Interests, Henry S. Miller, and Mr. Todd Misak, the WEDC
Board of Directors chose to entertain the contract presented by KMS Interests, d.b.a. the
Stainback Organization. KMS has proposed the purchase of Lot 3 (42,689 sq. ft.) for $9.60 per
sq. ft. or $409,813. As well, KMS will be funding their portion of the Cooper Drive extension.
KMS has proposed the use of a national bank for the site. The WEDC Board believed that the
extension of Cooper Drive and the two national names locating to Lots 1 & 2 bring an increased
level of value over and above that to be paid for Lots 1 &2.
MOTION: A motion was made by John Yeager and seconded by Gary Bartow
authorizing staff to counter the KMS offer at $11.94 per square foot and
require $1,000 in non-refundable escrow. The WEDC Board of Directors
voted 3 —FOR and 0—AGAINST in favor of the motion.
The Board also held additional discussions within Executive Session surrounding the salary of
the Executive Director. In light of a positive employee evaluation preformed by the Board on
April, 26, 2004, the Board believed a salary increase was warranted. In addition, the Board
instructed staff to develop a bonus formula for future salary discussions. President Fuller
requested that the communities of Allen, McKinney, Frisco, Terrell, and Rockwall be surveyed
as to any existing language which may be available.
MOTION: A motion was made by John Yeager and seconded by Gary Bartow to
authorize a 6.2 % salary increase for the WEDC Executive Director
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May 17, 2004
Page 4
effective May 24, 2004. The WEDC Board of Directors voted 3 — FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 6—Staff Report.
Staff reported on projects under discussion for Baylor Hospital, Lone Star Circuits, and The
Mover. As well, staff reported a 45.16% increase in sales tax receipts for April.
ITEM NO. 7—Citizen Participation.
There being no citizen participation, President Fuller proceeded to Item No. 8.
ITEM NO. 8—Adjourn.
There being no further business, the meeting was adjourned at 9:45 a.m.
�1g ,7 fit47-4/
Marvin Fuller, President
Attest:
rium■
Samuel D.R. Satterwhite
Executive Director