Loading...
04-18-2018 (WEDC) Minutes Minutes Wylie Economic Development Corporation Board of Directors Meeting Wednesday, April 18, 2018 —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 6:34 a.m. Board Members present were John Yeager, Bryan Brokaw, Demond Dawkins, and Todd Wintters. 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 With no citizen participation, President Fuller proceeded to Action Items. ACTION ITEMS ITEM NO. 1 —Consider and act upon approval of the March 21,2018 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by Todd Wintters and seconded by John Yeager to approve the March 21, 2018 Minutes of the Wylie Economic Development Corporation. The WEDC Board voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 2 — Consider and act upon approval of the March 2018 WEDC Treasurer's Report. Staff reviewed the items contained in the Treasurers Report and called the Board's attention to the continuing decline in Sales Tax Revenue for FY 2017 - 2018. Staff has begun identifying areas of budget cuts to accommodate the potential reduction in revenue. MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to approve the March 2018 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board voted 5 — FOR and 0—AGAINST in favor of the motion. WEDC—Minutes April 18, 2018 Page 2 of 4 ITEM NO.3—Consider and act upon issues surrounding a Performance Agreement between the WEDC and The Rocking M, LLC (McClure Partners). Staff reminded the Board that the WEDC approved a Performance Agreement with The Rocking M, LLC in January 2018 for the sale of WEDC property on Jackson Street and financial assistance to develop a new office building occupied by McClure. Based upon a delay in the project due to internal issues within McClure Partners, neither the Purchase Agreement or Performance Agreement has been executed as of yet. As a related issue, the Ballard Street alley and parking improvements have been delayed by staff due to an estimated cost of$150,000 for the alley in addition to the three office projects the WEDC was pursuing in the area failing to materialize. Staff proposed that the WEDC shift its `alley monies' to the unimproved right-of-way behind the proposed McClure office project. In staffs opinion, this would be a much more efficient use of WEDC funds in that it would immediately benefit the McClure project, impact the WEDC lot fronting Birmingham upon its redevelopment, and facilitate the redevelopment of the lot immediately north of the WEDC lot on Jackson owned by Mr. Allen. The Board felt both alleys should remain a priority and directed staff to develop a plan for both the Ballard Street and Jackson Street alleys for review and discussion at a later meeting. No action was taken on this Item. ITEM NO. 4 — Consider and act upon a Performance Agreement between the WEDC and Hooper-Woodbridge II, LLC. Prior to discussion of this item, Board Member Yeager disclosed to the Board that this business entity is a client of Wylie Insurance. President Fuller polled the Board and no members felt a conflict of interest existed. Mr. Lanman completed Phase I of his medical office park located at 501 Woodbridge Parkway near the intersection of Woodbridge Pkwy and Hensley Lane in 2009. He recently announced plans to construct Phase II of the project. Phase II will include real and personal property improvement in the form of a 5,599 square foot medical office facility. As previously discussed in Executive Session, Mr. Lanman approached the WEDC inquiring as to the potential for assistance with Phase II of the project specifically relating to utility infrastructure. Mr. Lanman has committed to have a Building Permit issued by the City on or before June 1,2018 and complete construction of the building as evidenced by Certificate of Occupancy by February 28, 2019. Based upon comparable office concepts in the area and appraised value of the same, Building 2 will create approximately $828,000 in new value (utilizing conservative real and personal property values) and generate approximately $158,000 in net benefits to the City over a 10-year period. The net benefit is determined by calculating all property taxes and fees received WEDC—Minutes April 18, 2018 Page 3 of 4 by the City less the cost of utility/governmental services. Once the improvements are taxed at their full value, factoring in the incentive provided, the return on investment will be 3 months. As directed by the Board in Executive Session, a Performance Agreement providing for a$20,000 incentive package for infrastructure assistance was drafted and presented to the Board for review. The agreement calls for a$20,000 infrastructure reimbursement in one payment upon receipt of a Certificate of Occupancy with receipt of documentation by WEDC supporting a minimum project cost$750,000. Staff recommended that the WEDC Board of Directors approve a Performance Agreement between the WEDC and Hooper-Woodbridge II, LLC. MOTION: A motion was made by Todd Wintters and seconded by Bryan Brokaw to approve a Performance Agreement between the WEDC and Hooper- Woodbridge II, LLC. The WEDC Board voted 5 —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,WEDC Promotional,Promotional Activities and regional housing starts. Staff updated the Board on WEDC activities and properties noting that the Holiday Inn Express& Suites has been notified by staff pertaining to the deadline of 6-30-18 for issuance of a Certificate of Occupancy on this property in order to be eligible for incentives under the agreement. The W&M Environmental Report has been modified to include only active projects. ITEM NO. 6 —Discussion of issues to be placed on a future WEDC Board Meeting agenda (no substantial consideration/discussion allowed). No Board Member requested any items to be placed on future Agendas. EXECUTIVE SESSION Recessed into Closed Session at 7:18 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: • Oak& Ballard • Alanis & Sanden WEDC—Minutes April 18, 2018 Page 4 of 4 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 2017-8b • Project 2018-4a • Project 2018-4b • Project 2018-4c Todd Wintters left the meeting at 8:15 a.m. and did not return. Demond Dawkins left the meeting at 8:26 a.m. due to a potential conflict of interest with an Executive Session project and did not return. RECONVENE INTO OPEN MEETING The WEDC Board of Directors reconvened into open session at 8:43 a.m. and directed staff to proceed with developing a Performance Agreement between the WEDC and JRMK Properties LLC for an incentive in the amount of $10,000 and place this Item on the next WEDC Board Meeting Agenda for consideration by the Board. ADJOURNMENT With no further business, President Fuller adjourned the WEDC Board meeting at 8:44 a.m. Marvin Fuller, President ATTEST: Samuel Satterwhite, Director