Loading...
10-16-2001 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION October 16,2001 Board Members Present: Gary Bowland Marvin Fuller(departed 7:35 a.m.) Kevin St. John(arrived 7:15 a.m.) John Yeager 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 October 16, 2001 in the City Council Conference Room of the Wylie Municipal Complex located at 2000 Highway 78 North, Wylie, Texas. The meeting was called to order by President John Yeager at 7:03 a.m. ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the October 5, 2001 Regular Board of Directors Meeting of the Wylie Economic Development Corporation. MOTION: A motion was made by Gary Bowland and seconded by Marvin Fuller to approve minutes for the October 16, 2001 Regular Board of Directors Meeting of the Wylie Economic Development Corporation. 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 the September, 2001 Treasurer's Report for the Wylie Economic Development Corporation. Board member Fuller indicated that earnest money for purchase agreements on Martinez have not been categorized properly. The $10,000 earnest deposited with Commonwealth should be classified as an asset. MOTION: A motion was made by Gary Bowland and seconded by Merrill Young to approve September, 2001 Treasurer's Report for the Wylie Economic Development Corporation as amended. The WEDC Board of Directors voted 4—FOR and 0—AGAINST in favor of the motion. WEDC—Minutes October 16, 2001 Page 2 ITEM NO. 3 — Discuss Issues Surrounding the Purchase of Property Generally Located at the Intersection of State Highway 78 and Martinez Lane. Staff indicated Raynor had agreed to a 6-month extension to the Purchase Agreement, but requested that a first right of refusal be entered into so that the property could continue to be marketed. Holland Hitch was also receptive to a 6-month extension. However, Holland requested that an additional $2,500 in earnest money be deposited to cover surveying and platting expenses. Staff reminded the Board that all earnest money now becomes non-refundable. Board member St. John commented that in negotiating the first right of refusal with Raynor, staff should require that a copy of the contract be presented to the WEDC to trigger the first right. MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to approve a first right of refusal on the Purchase Agreement with Raynor Garage Door and further approve an additional $2,500 in earnest money to Holland Hitch. The WEDC Board of Directors voted 5 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 4—Discuss and Act upon Issues Surrounding the Conveyance of Lot 3, Block B, of Premier Industrial Park South from Carlisle Coatings & Waterproofing to the Wylie Economic Development Corporation. Carlisle has conveyed to staff that it cannot comply with the Internal Revenue Code 1031 (Exchange) because the WEDC property was conveyed to Carlisle and not a third party as required by the Code. At risk is the potential for a capital gains tax savings of $800,000. Carlisle is requesting that the WEDC take title of the property back and transfer it to a holding company until a point in time when the original plant and property is sold. Staff indicated that the WEDC attorney and Travis Wolff, a tax consulting firm, have verified that the WEDC would not be liable for any fraudulent activity. Board member Bowland was concerned that the IRS would view this action by the WEDC as trying to skirt the tax law. The balance of the Board believed that with adequate indemnification agreements from Carlisle and our attorney's opinion, the WEDC should assist Carlisle in pursuing the most aggressive tax savings possible. WEDC—Minutes October 16, 2001 Page 3 MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to authorize President John Yeager to execute all necessary documentation to effectuate the conveyance of Lot 3, Block B, of Premier Industrial Park South, First Revision, from Carlisle Coatings and Waterproofing, Inc. to the WEDC and from the WEDC to Investment Property Exchange Services, Inc. The WEDC Board of Directors voted 4 — FOR and 1 — AGAINST in favor of the motion. ITEM NO. 5 — Discuss and Act Upon Issues Surrounding a Loan Agreement Between DC & Associates, Inc. and the Wylie Economic Development Corporation. Staff indicated that payment 3 ($10,000) associated with the Loan Agreement between DC & Associates and the WEDC is due and subject to forgiveness. DC & Associates is not in default as provided within Section 6, Events of Default. Based upon the current conditions, the WEDC Board of Directors is required to forgive payment 3 associated with note 1. MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to forgive payment 3 associated with a Loan Agreement between DC & Associates and the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 6 — Discuss and Act Upon Issues Surrounding a Loan Agreement Between Yelrow, Inc. and the Wylie Economic Development Corporation. Staff indicated that payment 2 ($10,715.33) associated with the Loan Agreement between Yelrow, Inc. and the WEDC is due and subject to forgiveness. Yelrow, Inc. is not in default as provided within Section 6, Events of Default. Based upon the current conditions, the WEDC Board of Directors is required to forgive payment 2. MOTION: A motion was made by Gary Bowland and seconded by Kevin St. John to forgive payment 2 associated with a Loan Agreement between Yelrow, Inc. and the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4 — FOR and 0 — AGAINST in favor of the motion. WEDC—Minutes October 16, 2001 Page 4 ITEM NO. 7—Discuss and Act Upon Issues Surrounding a Loan Agreement Between Tony D. Linduff and the Wylie Economic Development Corporation. Staff indicated that payment 1 ($16,137.66) associated with the Loan Agreement between Tony D. Linduff and the WEDC is due and subject to forgiveness. Mr. Linduff is not in default as provided within Section 6, Events of Default. Based upon the current conditions, the WEDC Board of Directors is required to forgive payment 1. MOTION: A motion was made by Merrill Young and seconded by Gary Bowland to forgive payment 1 associated with a Loan Agreement between Tony D. Linduff and the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 8 — Discuss and Act Upon Issues Surrounding a Loan Agreement Between Chester F. Lagrone, III. and Cynthia Althuser Lagrone and the Wylie Economic Development Corporation. Staff indicated that payment 1 ($18,413.33) associated with the Loan Agreement between Chester F. Lagrone, III and Cynthia Althuser Lagrone and the WEDC is due and subject to forgiveness. The Lagrone's are not in default as provided within Section 6, Events of Default. Based upon the current conditions, the WEDC Board of Directors is required to forgive payment 1. MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to forgive payment 1 associated with a Loan Agreement between Chester F. Lagrone, III and Cynthia Althuser Lagrone and the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4—FOR and 0—AGAINST in favor of the motion. ITEM NO. 9 — Discuss and Act Upon Issues Surrounding a Loan Agreement Between Moulding Associates, Inc. and the Wylie Economic Development Corporation. Staff indicated that payment 2 ($54,162) associated with the Loan Agreement between Moulding Associates, Inc. and the WEDC is due and subject to forgiveness. Moulding Associates, Inc. is not in default as provided within Section 6, Events of Default. Based upon the current conditions, the WEDC Board of Directors is required to forgive payment 2. WEDC—Minutes October 16, 2001 Page 5 MOTION: A motion was made by Gary Bowland and seconded by Merrill Young to forgive payment 2 associated with a Loan Agreement between Moulding Associates, Inc. and the Wylie Economic Development Corporation. The WEDC Board of Directors voted 3 — FOR and 0 —AGAINST in favor of the motion with Board member St. John not voting on the issue. ITEM NO. 10 — Discuss Issues Surrounding an Amendment to the By-Laws of the Wylie Economic Development Corporation. Staff reviewed certain articles within the WEDC By-Laws, which pertain to residency requirements of WEDC Board members. Staff proposed that the Board consider expanding, or removing the residency requirement within the Wylie City Limits. Staff reasoned that the WEDC could broaden its pool of qualified Board candidates in the future by allowing individuals in the Wylie ETJ to be accepted or just individuals in executive management positions of local companies. Board member St. John commented that individuals that pay City of Wylie taxes are motivated by a greater degree to make decisions to benefit the local economy. Also, Wylie residency provides greater stability in Board members opposed to individuals that only work in the community. For lack of a motion, there was no action taken on this item. ITEM NO. 11 — Discuss and Act Upon Issues Surrounding an Employment Agreement Between the Wylie Economic Development Corporation and the Wylie Economic Development Corporation Executive Director. Staff indicated that an Agreement was not prepared and that the WEDC Board of Directors will review this item in Executive Session at a future date. ITEM NO. 12 — Executive Session to Consult with Corporation Attorney, as Authorized in the Local Government Code, Section 551.071, an a Matter in which the Duty of the Attorney to the Government Body Under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas Clearly Conflicts with this Chapter. The WEDC Attorney was not present; therefore the WEDC held no discussion regarding pending litigation. WEDC—Minutes October 16, 2001 WEDC —Minutes October 16, 2001 Page 6 ITEM NO. 13 —Reconvene From Executive Session. No action was taken as a result of Executive session. ITEM NO 14 — Citizen Participation. There being no citizen participation, President Yeager proceeded to Item No. 15. ITEM NO. 15 —Adjourn. There being no further business, the meeting was adjourned at 8:30 a.m. //f. ' 4,,Z.--e-.-- John eager, President Attest: Samuel D.R. Satterwhite Executive Director