05-15-2019 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Wednesday, May 15, 2019 —6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
CALL TO 0 ' I ER
Announce the presence of a Quorum
President Bryan Brokaw called the meeting to order at 6:31 a.m. Board Members present were
Todd Wintters, John Yeager, Demond Dawkins, and Marvin Fuller.
Ex-officio members Mayor Pro Tern Jeff Forrester and City Manager Chris Holsted were present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner,
and Senior Assistant Angel Wygant.
INVOCATION & PLEDGE OF ALLEGIANCE
Board Member John Yeager gave an invocation and led the Pledge of Allegiance.
CITIZEN PARTICIPATION
With no citizen participation, President Brokaw moved to Action Items.
ACTION ITEMS
ITEM NO, 1 — Consider and act upon approval of the April 17, 2019 Minutes of the Wylie
Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Demond Dawkins and seconded by Todd Wintters to
approve the April 17, 2019 Minutes of the Wylie Economic Development
Corporation. The WEDC Board voted 5 — FOR and 0—AGAINST in favor
of the motion.
ITEM NO.2—Consider and act upon approval of the April 2018 WEDC Treasurers Report.
Staff reviewed the Treasurers Report and called the Board's attention to the following highlights:
Sales Tax Receipts continue to rise with $274,299 received in April representing a 35% increase
over 2018 receipts. It should be noted that a <$64,250> audit adjustment from the Texas
Comptroller's Office occurred in May 2018. Without the adjustment, year-over-year sales tax
would have increased 2.4%.
WEDC —Minutes
May 15, 2019
Page 2 of 4
During the month of April, the WEDC funded $97,990.92 in incentives to SAF Holland and Clark
Street Development. In addition,the WEDC completed the 'Nursing Home' asbestos remediation
and purchased property located at 208 N. 2nd Street.
Mr. Fuller requested that staff prepare a cash flow analysis for a future meeting to prepare for a
decreased cash position.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve the April 2019 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 3 —Consider and act upon issues surrounding a Performance Agreement between the
WEDC and Ashishkumar&Vidita Patel.
As reported at the April 5th Board Meeting,staff approached Mr. Patel to facilitate the development
of improved parking benefitting property located at 308 N. Ballard Ave. Staff was able to confirm
that with WEDC assistance, Mr. Patel will provide six parking spaces to the east of the 1,250
square foot office.
As directed in Executive Session, staff negotiated with Mr. Patel for the removal of the wood-
framed structure east of the office. New to the discussions, and as reflected in the proposed
Agreement, staff proposed the Board consider funding removal of the structure at a cost of$1,500.
The $1,500 figure was developed by a quote from Intercon Demolition.
The reimbursement incentive for parking improvements available to Mr. Patel is 50% of the
estimated costs up to a maximum $10,000. The low bid received by Mr. Patel is $24,300. The
maximum reimbursement incentive to Mr. Patel for both parking and demolition is proposed at
$11,500.
MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins to
enter into a Performance Agreement with Ashishkumar & Vidita Patel to
provide up to $11,500 in reimbursements for demolition and qualified
infrastructure assistance. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 4—Discuss issues surrounding the FY 2019-2020 WEDC Budget.
Staff presented a first draft of the FY 2019 - 2020 WEDC Budget to the Board and sought input
from Board Members prior to a second Budget Work Session tentatively scheduled for June 4th
As is the case every year, staff has worked closely with Finance to develop an accurate Beginning
Fund Balance being that the WEDC budgets to have those monies available for the following year
and bases its expenditures on the same.
WEDC—Minutes
May 15, 2019
Page 3 of 4
The WEDC has estimated $5,818,412 in available resources including a beginning fund balance
of$327,291.
Sales Tax projections are typically estimated in March. At that time, year-end receipts for FY
2018 — 2019 were calculated at $2.82 mm, or a 10% gain over FY 2018 —2019. From the year-
end total, staff has budgeted for a conservative 5% growth rate for FY 2019 —2020 creating sales
tax projections of$2,960,895.
In FY 2018 —2019, staff had budgeted for the sale of the WEDC pad site on Highway 78. With
no contract pending, staff has carried that sale over to FY 2019 — 2020 along with the potential
sale of a pad site within the 544 Gateway property which is experiencing significant activity.
In addition to operating funds for FY 2019-2020, Incentives for known projects are $1,016,889
with $500,000 allocated for future projects which arise during the budget year. $1,415,325 will
be allocated to debt service with three loans being retired in FY 2018 - 2019 and two loans
transitioning to P&I in FY 2019 - 2020.
Finally, $575,000 will be allocated to Street & Alleys for development costs associated with the
Brown& 78 site.
Staff indicated a second Budget Work Session will be held in June with a final draft being
presented to Council on July 1
ITEM NO. 5- Review issues surrounding WEDC Performance Agreement Summary, Hotel
Occupancy Tax, environmental activity summary, Jackson Street alley project, 78/Brown
redevelopment update, ICSC ' Con 2019, active project summary, and regional housing
starts.
Staff updated the Board on WEDC projects and activities noting that year-over-year sales tax
receipts received in April were essentially flat over 2017 receipts with Woodbridge Crossing
shopping center increasing .89% and Woodbridge Centre decreasing .1%.
GT Construction has completed the Jackson Street alley paving will all barricades removed.
Striping and general clean-up is all that remains to be done.
As reported previously, staff proposed to KCS the purchase of 2.563 acres at Brown and 78 for$6
psf which KCS accepted. With that development, staff has contacted Collin County and begun
the process to acquire the County-owned 1.2260 acres adjacent to the KCS tract. As well,TxDOT
notified the WEDC that it would sell approximately 0.3 acre at the corner with the WEDC currently
processing an appraisal and survey. The WEDC has closed on both Swayze tracts.
Staff will be attending the Annual ICSC Recon conference May 18—22 and will report activity to
the Board at the next Board Meeting.
New Housing starts remain strong with thirty-seven new homes permitted in Wylie in April.
WEDC —Minutes
May 15, 2019
Page 4 of 4
ITEM NO. 6 — Discussion of issues to be placed on a future WEDC Board Meeting agenda
(no substantial consideration/discussion allowed).
No Board Member requested that an item be placed on a future agenda.
EXECUTIVE SESSION
Recess into Closed Session at 7:43 a.m. in compliance with Section 551.001, et. seq. Texas
Government Code, to wit:
Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act). Consider the sale or acquisition of properties located at:
* State Highway 78 & 5th Street
* State Highway 78 & Ballard
• State Highway 78 & Skyview
• State Highway 78 & Alanis
* State Highway 78 & F.M. 544
Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act). Deliberation regarding commercial or financial information that
the WEDC has received from a business prospect and to discuss the offer of incentives for:
• Project 2013-3a
• Project 2016-1 b
• Project 2017-12b
• Project 2019-5a
▪ Project 2019-5b
CONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
The WEDC Board of Directors reconvened into open session at 8:26 a.m. and took no action.
ADJOU MENT
With no further business, President Brokaw adjourned the WEDC Board meeting at 8:26 a.m.
44 -11
Bryan/Drokaw,President
ATTEST:
Samuel Satterwhite, Direc or