01-20-2005 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
January 20,2005
Board Members Present
Gary Bartow
Gary Bowland
Marvin Fuller
Merrill Young
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 January 20, 2005 in the Conference Room of Inwood
National Bank located at 200 South Highway 78, Wylie, Texas.
The meeting was called to order by President Marvin Fuller at 7:02 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the January 14, 2005
Regular Board of Directors Meeting of the WEDC.
MOTION: A motion was made by Gary Bowland and seconded by Gary Bartow to
approve the Minutes for the January 14, 2005 regular Board of Directors
Meting 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 the Offering of an Incentive
Package to Extruders Division of Atrium Companies, Inc.
Staff presented to the Board a potential expansion to be undertaken by Extruder division of
Atrium Companies. Extruders may construct a 10,800 square foot expansion to their existing
205,000 square foot manufacturing facility on Hensley Land. The proposed expansion will be
valued at $600,000 for the real property and $2.7 million for the personal property which will
consist of a new paint line.
Aside from the increased valuation, the potential for 80 additional jobs exists. Upon the paint
line becoming operational, Extruders will immediately need 20 additional employees. The
average wage for these employees will be $10 - $12 per hour. No additional management or
maintenance personnel will be required. As the demand on the paint line increases, 4 shifts of 20
employees will be required to operate 24 hours per day at seven days per week. Extruders
management estimates that the additional 80 employees required to staff the new paint line could
be in place by the second quarter of 2006.
WEDC—Minutes
January 20, 2005
Page 2
The expansion to the existing facility will be comprised of a 90' x 120' structure extending west
toward the Dallas Moving facility. The front facade will be a tilt wall design and will match the
existing exterior. The west side of the structure will be metal which was allowed under City of
Wylie ordinances when the main facility was constructed in 2000.
Based upon the following property tax analysis, staff proposes a multi-year incentive package.
The WEDC has budgeted $75,000 for the Extruders expansion for FY 2004 — 2005. A
reimbursement for construction costs will be made upon the issuance of a CO by the City of
Wylie. The balance of the recommended $225,000 package will be paid out over an additional 3
years. At a minimum, on July 25, 2006, 2007, and 2008, Extruders must verify through
Appraisal District records that their assessed valuation of real and personal property has
increased by $3.3 million over the benchmark year of 2005. July 25th was chosen due to the
appraisal district certifying the tax role to each entity on that day. In addition to the valuation
requirement, Extruders must verify through payroll records the number of additional employees
over and above the benchmark established at the time a CO is issued by the City of Wylie. For
every additional employee, Extruders will be eligible for an $833 incentive up to a maximum
annual incentive of$50,000. Staff arrived at the $833 incentive by allowing for three shifts of 20
employees which will allow for market fluctuations to their new product. Should Extruders
expand their current facility by 10,800 square feet, increase their total appraised value by $3.3
million, and add at least 60 new employees during 2006, 2007, and 2008, Extruders will be
eligible for a total incentive package of $225,000. Staff estimates that the community's
investment will have a break even point of 2.5 years based upon the above assumptions; not
including though the impact of 80 additional jobs.
Board member Young believed this to be a project the WEDC should pursue. The Board as a
whole directed staff to develop an incentive agreement and continue discussion with Extruders to
ensure the expansion.
MOTION: A motion. was made by Merrill Young and seconded by Gary Bowland to
table consideration of an incentive package for Extruders Division of
Atrium Companies, Inc. The WEDC Board of Directors voted 4 — FOR
and 0 —AGAINST in favor of the motion.
ITEM NO. 3 — Consider and Act Upon Issues Surrounding the Sale of 3.05 Acres from the
WEDC to Shafer Properties.
Being that the Escrow Agreement was finalized on the afternoon of the l9`h, staff distributed the
final version to the Board. Staff believes the presented document to be the final version of the
Property Development Agreement (escrow agreement) and Special Warranty Deed. The final
sales price for the site is S 1,661,311 which accounts for the netting out of all `exterior' easement.
The following are items of interest were presented to the Board for each document.
WEDC —Minutes
January 20, 2005
Page 3
Special Warranty Deed
The second paragraph on page 2 contains language pertaining to the 'view corridors' the WEDC
requested to allow for line of sight to the Cirrus development north of the Shafer site. Shafer has
recently requested a maximum square footage of 6,800 square feet for each of the two stand
alone buildings. This request was recently made to allow for a Starbuck to be included within a
strip containing a second user, preferably a restaurant. The site plan attached to this memo calls
out a 5,000 square retail facility and staff is questioning the philosophy behind the 6,800 square
feet. As long as adequate corridors are maintained, staff has no problem with the additional
footage.
Property Development Agreement (escrow agreement)
1. As per Section 4, the WEDC will be escrowing $194,969 as `collateral' for the
removal of the interior easements (14,715 square feet —Exhibit D). As per Section 7
e, the $194,969 will be released to the WEDC at the time evidence is provided to
Shafer and escrow agent as to the completion of the abandoned easements (filing of
the plat). The Easement must be abandoned within 75 days (Section 6 c).
2. As well within Section 4, Shafer will be escrowing $154,000 for the burying of
electric and Verizon overhead lines fronting State Highway. As per Section 7 f,
Shafer can withdraw up to $84,000 for any work, but must leave $70,000 in escrow
until the underground improvements are completed.
3. Section 5 states that the three separate amounts associated with the removal of the
easements, underground work preformed by Shafer and Cooper Drive Extension will
be placed in three separate escrow accounts.
4. Exhibit D-1 obligates the \VEDC to (1) place the 12' sewer line which was previously
in the KCS right-of-way to be placed within an easement. (2) The oil, gas, and
mineral rights maintained by the BNSF must be released (the WEDC has approval
and is awaiting the final documentation). (3) The fiber optic easement owned by the
BNSF is going to be relocated to the southern portion of the property. The BNSF has
agreed to this at no cost to the WEDC other than writing the legal description and
placing the easement on the plat. Finally, (4) the WEDC will work together with
Shafer to have a `blanket' easement maintained by TXU removed. Once Shafer has
buried the lines and the new easements are created and the existing overhead lines are
redefined, the blanket easement will be abandoned by TXU at no cost.
MOTION: A motion was made by Gary Bowland and seconded by Gary Bartow to
approve the Escrow Agreement between the WEDC and Shafer Properties.
The WEDC Board of Directors voted 4—FOR and 0—AGAINST in favor
of the motion.
WEDC —Minutes
January 20, 2005
Page 4
ITEM NO. 4 — Consider and Act Upon Issues Surrounding the Sale of 2.01 Acres from the
WEDC to the Cirrus Group.
MOTION: A motion was made by Merrill Young and seconded by Gary Bowland to
table consideration surrounding the sale of 2.01 acres from the WEDC to
the Cirrus Group. 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 Contract for Services with
Digitakes for the Development and Maintenance of a WEDC Web Site.
A presentation was made by Jeff Ellis of Digitakes to develop a WEDC website. The Board was
believed that Digitakes was more than qualified to create and maintain the site, directing staff
and Board member Bowland expend up to $5,000 to complete the work. Mr. Ellis quoted $4,600
to develop the site.
MOTION: A motion was made by Merrill Young and seconded by Gary Bartow to
create a WEDC Technology Subcommittee, naming Gary Bowland as
Chairman, and authorizing said subcommittee to enter into contracts and
authorize expenditures on behalf of the WEDC. 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 Facilities/Operations
Expansion of Sanden International (U.S.A.), Inc.
MOTION: A motion was made by Merrill Young and seconded by Gary Bowland to
table consideration of issues surrounding a facilities/operations expansion
of Sanden International (U.S.A.), Inc. The WEDC Board of Directors
voted 4—FOR and 0—AGAINST in favor of the motion.
ITEM NO. 7— Staff Report.
Staff had nothing further to report.
ITEM NO. 8 — Citizen Participation.
There being no citizen participation; President Fuller proceeded to Item No. 9.
WEDC —Minutes
January 20, 2005
Page 5
ITEM NO. 9—Adjourn.
There being no further business, the meeting was adjourned at 8:50 a.m.
/1/(a/14//h1
Marvin Fuller, President
Attest:
Samuel D.R. Satterwhite
Executive Director