06-04-2004 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
June 4, 2004
Board Members Present
Gary Bartow
Gary Bowland
Marvin Fuller
John Yeager(departed at 1:00 p.m.)
Staff Present
Samuel Satterwhite, Executive Director
Others Present
Councilman Earl Newsom
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 June 4, 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 12:00 p.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the May 17, 2004 Regular
Board of Directors Meeting of the WEDC.
MOTION: A motion was made by Gary Bartow and seconded by Gary Bowland
approving the minutes for the May 17, 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 Approval of Minutes for the May 24, 2004 Regular
Board of Directors Meeting of the WEDC.
Staff pointed out three clerical errors within the minutes as presented:
1. the Board reconvened into open meeting at 11:50 a.m. instead of 12:10 p.m.;
2. John Yeager seconded the motion for Item No. 2 instead of Gary Bartow; and
3. the WEDC Board Meeting adjourned at 11:57 a.m. instead of 12:15 p.m.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager
approving the minutes for the May 24, 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. 3 - Consider and Act Upon Approval of the April, 2004 Treasurer's Report for
the Wylie Economic Development Corporation.
WEDC—Minutes
June 4, 2004
Page 2
MOTION: A motion was made by John Yeager and seconded by Gary Bartow
approving the April, 2004 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 4—FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 4 — Consider and Act Upon Issues Surrounding A Loan Agreement Between
Moulding Associates,Inc. and the WEDC.
Staff indicated that the City of Wylie auditor had determined that three payments associated with
a Loan Agreement between Moulding Associates, Inc. (MAI) and the WEDC should have been
forgiven in October of 2001, 2002, and 2003 respectively. Staff presented that MAI has not been
in default during the life of the Agreement and forgiveness of Payments 3, 4, and 5 will satisfy all
obligations associated with the Loan Agreement.
MOTION: A motion was made by Gary Bartow and seconded by Gary Bowland
forgiving Payment 3 ($54,162), Payment 4 ($54,162), and Payment 5
($54,162) and all associated interest as required by the Loan Agreement
between the WEDC and MAI. The WEDC Board of Directors voted 4 —
FOR and 0—AGAINST in favor of the motion.
ITEM NO. 5 — Consider and Act Upon Issues Surrounding a Loan Agreement Between
Brad and Catherine Jacoby and the WEDC.
Staff indicated that the City of Wylie auditor had determined that two payments associated with a
Loan Agreement between Brad and Catherine Jacoby and the WEDC should have been forgiven
in April of 2003 and 2004 respectively. Staff presented that Lone Star Circuits has not been in
default during the life of the Agreement.
MOTION: A motion was made by John Yeager and seconded by Gary Bartow
forgiving Payment 1 ($110,353.25) and Payment 2 ($110,353.25) and all
associated interest as required by the Loan Agreement between the WEDC
and Brad and Catherine Jacoby. 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 Development Agreement
Between Bayco Products, LTD and the WEDC.
Staff presented the WEDC Board of Directors with a Development Agreement between Bayco
Products, LTD and the WEDC. As presented, the Agreement specifies the conveyance of 8.294
acres to Bayco, reimbursement of $100,000 to Bayco for moving expenses and reclamation of
property within the flood plane, Bayco meeting a minimum appraised value of$6.4 million each
year as well as paying a cumulative total of$657,000 in property taxes to the City of Wylie and
Wylie ISD over the life of the Agreement, Bayco constructing a minimum 100,080 square foot
WEDC—Minutes
June 4, 2004
Page 3
facility, and specific events of default. Staff commented that this Agreement concluded 8
months of negotiations and that Bayco should break ground on the project by September 1, 2004.
Being that the Board had reviewed the document on several different occasions, there were no
suggested changes or requests for clarification. Along with a recommendation by staff to
approve the Development Agreement, staff requested that the Board provide staff with latitude to
make minor changes to the Agreement regarding requirements for building permit value and
dates for issuance of building permit and certificate of occupancy.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager to
approve a Development Agreement between Bayco Products, LTD and the
WEDC furthermore authorizing staff to make minor adjustments to the
Agreement, prior to execution, which do not constitute a material change
to the Agreement. The WEDC Board of Directors voted 4 —FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 7—Discuss and Consider Issues Surrounding a Strategic Plan for the WEDC.
MOTION: A motion was made by Gary Bartow and seconded by Gary Bowland to
table consideration of issues surrounding a strategic plan for the WEDC.
The WEDC Board of Directors voted 3 —FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 8 -EXECUTIVE SESSION:
The WEDC Board of Directors convened into Executive Session at 12:40 p.m. to hold
deliberations surrounding the sale of WEDC property located at 404 S. Highway 78 in
accordance with Section 551.072, and hold deliberations surrounding personnel matters
(Employment Agreement between WEDC and Executive Director) as authorized in Section
551.075 both in accordance with Government Code, Vernon's Texas Code Annotated (Open
Meetings Act).
ITEM NO. 9—RECONVENE INTO OPEN MEETING:
The WEDC Board of Directors reconvened into open meeting at 1:14 a.m.
Within Executive Session, staff had presented a letter of intent from Medical Realty Group X to
purchase Lots 5 and 6 within the WEDC 5-acre site located on State Highway 78. Medical
Realty proposes the development of a 35,000 square foot doctor's office complex operated and
managed by Baylor Hospital. Medical Realty represented to staff that Baylor cannot sustain lease
rates on property purchased above $5.00 - $5.50 per square foot.
WEDC —Minutes
June 4, 2004
Page 4
Staff represented a belief that Lots 5 & 6, comprised of±2 acres, has a market value in excess of
$6.50. Furthermore, should Baylor truly want to be in Wylie, there are few sites if any which can
be obtained for$5.50 per square foot.
President Fuller stated that the opportunity to bring a Baylor facility to Wylie should generate the
highest interest possible from the WEDC. A medical facility with the Baylor name recognition
will create the type of mixed-use retail/office environment which the Board envisioned beginning
with discussions to purchase the Extruders site, Fuller continued. Board member Bowland
believed that no matter the square footage price quoted to Medical Realty, participation in water,
sewer, and road construction should be required.
MOTION: A motion was made by Gary Bartow and seconded by Gary Bowland
authorizing staff to accept a letter of intent from Medical Reality Group X
at $5.50 per square foot with the amendment to require participation in
roadway, water, and sewer improvements of 50% of total cost. The
WEDC Board of Directors voted 3 — FOR and 0 — AGAINST in favor of
the motion.
ITEM NO. 10—Staff Report.
Staff informed the Board that the WEDC was holding preliminary discussions with Mann Made
and BE&H to relocate both operations away from the State Highway 78 corridor. Mr. Don
Hughes, landlord to both companies, is currently entertaining a contract to sell the land and
buildings where both operations are currently located. Staff provided this information as an
update only with no recommendation or made or motion required.
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 1:21 p.m.
4-41
Marvin Fuller, President
Attest:
Samuel D.R. Satterwhite
Executive Director