02-02-2005 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
• February 2,2005
Board Members Present
Gary Bartow
Gary Bowland
Marvin Fuller
John Yeager
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 February 2, 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 7:04 a.m.
ITEM NO. 1 — Consider and Act Upon Issues Surrounding the Sale of 3.05 Acres from the
WEDC to Shafer Properties.
Staff presented an additional change to the Property Improvement Agreement approved on
January 20, 2005. Staff had the requirement to remove the TXU blanket easement from the
criteria for release of escrow funds to Seller. While the WEDC will work with Shafer to have the
easement removed, it will greatly be out of the WEDC's control since the WEDC will not be the
property owner.
Staff also presented the need to identify the placement of the proceeds of the Shafer sale to
Reunion Title.
MOTION: A motion was made by Gary Bartow and seconded by John Yeager to
approve the amended Property Improvement Agreement and Special
Warranty Deed. The WEDC Board of Directors voted 4 — FOR and 0 —
AGAINST in favor of the motion.
A motion was made by Gary Bowland and seconded by John Yeager to
create a money market account at Inwood National Bank for the transfer of
proceeds from the Shafer sale. The WEDC Board of Directors voted 3 —
FOR and 0 — AGAINST in favor of the motion with President Fuller
abstaining from the vote.
ITEM NO. 2 —EXECUTIVE SESSION:
The WEDC Board convened into executive session at 8:20 a.m.
WEDC—Minutes
February 2, 2005
Page 2
Convene into Executive Session to Hold Deliberations Regarding Real
Property (Purchase of Real Property within the Wylie Community by
• the WEDC) as Authorized in Section 551.072 of the Local
Government Code, Vernon's Texas Code Annotated (Open Meetings
Act).
ITEM NO. 3 —RECONVENE INTO OPEN MEETING:
The WEDC Board reconvened into open meeting at 9:20 a.m.
Staff presented a Commercial Contract to the Board to purchase property located at 2806 W.
F.M. 544 at a purchase price of$239,372. The Board believed that purchasing the Ferrell tract
would allow the WEDC to impact the redevelopment of the Regency/F.M. 544 corridor.
MOTION: A motion was made by Gary Bowland and seconded by Gary Bartow
authorizing staff to execute a Commercial Contract between the WEDC
and Ferrell Construction Company. 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 an Incentive Agreement
Between Southern Fastening Systems and the WEDC.
Staff reviewed with the Board that the WEDC entered into an Economic Development Incentive
Agreement with Southern Fastening Systems on March 26, 2002. On November 15, 2002, the
WEDC funded a $90,000 grant to Southern as per Section la of the Agreement and funded the
first of four $50,000 grants in January 2004. Furthermore, Section 1 a states that "beginning on
each anniversary of the payment of the initial grant, WEDC agrees that additional cash grants,
subject to the following conditions precedent, of $50,000 each for years 2, 3, 4, and 5 will be
paid to Southern by WEDC following annual confirmation by the Collin County Appraisal
District that a minimum of$7.25 million in appraised value exists at the site, and that the District
confirm in writing that all ad valorem taxes on the property for the applicable year have been
paid".
Southern currently has $2,714,004 in real property and $2,843,139 in personal property totaling
$5,557,143. The valuation falls 23% short of the $7.25 million minimum commitment. Staff
presented that there are circumstances which the Board should consider outside the terms of the
Agreement. Even though the WEDC funded a portion of the land purchase by Southern from the
Parker group, Southern was instrumental in the Bayco project. Had Southern not agreed to
participate in the purchase of the floodplain property west of their facility, the WEDC would
have most likely purchased the land outright to facilitate the Bayco project. Staff indicated that
under terms of an amendment letter, the WEDC funded $15,000 of the above referenced land
purchase; thus reducing the maximum incentive to Southern this year to the amount of$35,000.
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February 2, 2005
Page 3
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Mr. Ricky Tonneson, Managing, Partner of Southern, indicated to staff that the inventory value
for 2005 will be no less than $5 million which will meet commitments made in the Incentive
Agreement. However, should Southern fall short again, staff recommended that the Incentive
Agreement should be amended so that the WEDC is not in the position to consider extenuating
circumstances to authorize partial payment of the incentive.
Staff presented the example that should Southern have real and personal property equal to $6
million (82.76% of commitment), and then the maximum incentive available will be $41,379
(82.76% of$50,000). The WEDC Board of Directors will still maintain their ability to approve
the maximum incentive based upon the above scenario, but a structure will be in place.
Board member Bowland acknowledged the $15,000 purchase of flood plane property absolutely
impacted the Bayco project, but did not agree that the Incentive Agreement should be
restructured. Mr Bowland continued that the Board will always have the right to consider
extenuating circumstances, as it has the right under the Agreement to deny payment, but to create
a mechanism for lesser valuation to be considered is a poor precedent to set. Board member
Yeager was in favor of funding the remaining $35,000 incentive, but wanted Southern to be
notified in writing that should the valuation requirements as set forth in the Agreement not be
met for 2005, Southern should expect no extenuating circumstances to be considered.
MOTION: A motion was made by Gary Bowland and seconded by John Yeager to
approve payment of $35,000 to Southern Fastening Systems as per the
Incentive Agreement and subsequent Letter Amendment. The WEDC
Board of Directors voted 4 — FOR and 0 — AGAINST in favor of the
motion.
ITEM NO. 5 — Consider Issues Surrounding Assistance/WEDC Loan for Renovation to
Businesses Located at 114, 116, and 118 Ballard Street.
Staff informed the Board that in continuing with the WEDC Door Program and in cooperation
with Moulding Associates (MAI), the WEDC recently assisted with the•installation of a.MAI
door at 120 Ballard Street. The cost to the WEDC was $680. Staff spoke with the owner of 120
Ballard Street, Ms. Sharon Pollock, and determined that Ms. Pollock also owns properties
located at 114, 116, and 118 Ballard Street. Ms. Pollock indicated that door improvements to the
balance of her properties would take some time as it is still quite expense to the owner to install a
door. Ms. Pollock also went to the further extent of replacing the window trims at 120 Ballard.
Staff suggested the creation of a formal Loan/Grant Program to further help business improve
their exteriors. For example, the WEDC could participate in the three additional doors/window
trim for Ms. Pollock for approximately $4,350. A 50/50 relationship could be structured in
which the WEDC provides a $2,175 grant and the balance of $2,175 could be repaid to the
WEDC over a two year period at no interest. Similar grants/loans could be made on a case by
case basis and we could limit the annual expenditures to $5,000. This limitation could be in
place to provide some structure so that we are not funding every project in town.
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February 2, 2005 •
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While the Board was pleased with the continuation of the Door Program, the Board did not
believe the WEDC should consider further participation in downtown redevelopment at this time.
The Board believed that the investment community and local landowners are the best resource
for these types of projects.
With no motion being made relating to this issue, no action was taken by the WEDC Board of
Directors.
ITEM NO. 6—Citizen Participation.
There being no citizen participation, President Fuller proceeded to Item No. 7.
ITEM NO. 7—Adjourn.
There being no further business, the meeting was adjourned at 9:30 a.m.
vviikfri"
Marvin Fuller, President
Attest:
Samuel D.R. Satterwhite
Executive Director