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