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03-18-2003 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION March 18,2003 Board Members Present Marvin Fuller Kevin St. John 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 March 18, 2003 in the Conference Room of Woodbridge Golf Club located at 7400 Country Club Drive, Wylie, Texas. The meeting was called to order by President John Yeager at 7:05 a.m. ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the February 10, 2003, Regular Board of Directors Meeting of the Wylie Economic Development Corporation. MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to approve the minutes for the February 10, 2003, Regular Board of Directors Meeting of the Wylie Economic Development Corporation. The WEDC Board of Directors voted 3 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 2 — Consider and Act Upon Approval of the January, 2003 Treasurer's Report for the Wylie Economic Development Corporation. MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to approve the January, 2003 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 3 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 3 — Consider and Act Upon Approval of the February, 2003 Treasurer's Report for the Wylie Economic Development Corporation. MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to approve the February, 2003 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 3 —FOR and 0—AGAINST in favor of the motion. WEDC—Minutes March 18, 2003 Page 2 ITEM NO. 4—Discuss and Act Upon Issues Surrounding Development of WEDC Property Located at 404 S. Highway 78. Staff reported that a water sample needed to be taken to confirm that no residual hydrocarbons remained in the pooled water prior to pumping the water into the City of Wylie treatment system. Following the removal of the remaining water in the excavated site, Intercon Demolition will grade the site. Board member Fuller instructed staff to confirm that Intercon is not looking to the WEDC for payment of the $16,000 negotiated to return the dirt to the excavated site. Staff brought the item forward as information only, not requiring a motion or a vote. ITEM NO. 5 — Discuss Issues Surrounding the Offering of Incentives to Project First Priority. Staff provided the Board with an update of a site visit to Atlanta to tour the facilities of Project First Priority. Staff, along with Board member Bowland, indicated that the asphalt used in the manufacturing process, did not appear to present any negative issues as it relates to any smell emanating from the site. The Board agreed that with the lack of construction activity, the WEDC should utilize all resources budgeted for FY 2002 — 2003. Staff had proposed $187,000 as a local employment grant paid out over 4 years and a relocation grant of$50,000. Board member St. John recommended that the relocation grant equal $150,000 and the employment grant equal $87,000 as an effort to be more aggressive. Staff summarized that the total package, including tax abatements and permit waiver fees could equal $365,794 with a breakeven point of 4.2 years. MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller authorizing staff to offer a WEDC incentive package of $237,000 to Project First Priority. The WEDC Board of Directors voted 3 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 6 — Discuss and Act Upon Issues Surrounding the Purchase of Promotional Items for the WEDC. Staff requested that the WEDC Board of Directors authorize the expenditure of$1,700 for the purchase of WEDC promotional items. Staff represented that logo golf balls could be purchased for $700 and leather portfolios can be purchased for $1,000. Golf balls will be used for brokers, etc. and the portfolios will be used for prospects. Board member St. John instructed staff to be prudent in the distribution of the above items ensuring the promotional items are used strictly for the intended purpose. WEDC—Minutes March 18, 2003 Page 3 MOTION: A motion was made by Marvin Fuller and seconded by John Yeager to approve the purchase of promotional items for the WEDC not to exceed $1,700. The WEDC Board of Directors voted 3 —FOR and 0—AGAINST in favor of the motion. ITEM NO. 7—Discuss and Act Upon Issues Surrounding WEDC Legal Representation. Staff indicated to the Board that the WEDC is currently "between attorneys." The WEDC has utilized Jackson Walker and Vail, Hamilton recently for specialized case work, but has not felt comfortable with the services of Leggot & Clemmons (WEDC counsel for the past 7 years). Staff further conveyed that the WEDC had worked with City Attorney, Richard Abernathy over the past several months on a tax abatement for Home Depot and was very pleased with his work. Board member St. commented that if staff is comfortable with Mr. Abernathy, the WEDC should retain him now in the event that Project First Priority relocates to Wylie. MOTION: A motion was made by Kevin St. John and seconded by John Yeager authorizing the WEDC Executive Director to execute a Retainer Agreement between the WEDC and Abernathy, Roder, Boyd & Joplin. The WEDC Board of Directors voted 3 —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, Cynthia Althuser Lagrone and the WEDC. Staff indicated that Althuser's is not in default as defined under Section 6 of the Loan Agreement between Chet Lagrone, Cynthia Althuser Lagrone and the WEDC. Therefore, as per Section 5(a) of the Loan Agreement, the WEDC shall forgive the principal and interest payment associated with Note. MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John forgiving Payment 2 ($18,413.33) and all associated interest as required under the Loan Agreement between Chester Lagrone and Cynthia Althuser Lagrone and the WEDC. The WEDC Board of Directors voted 3 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 9—Discuss and Act Upon Issues Surrounding a Loan Agreement Between Tony D. Linduff and the WEDC. Staff indicated that Multi-Machining is not in default as defined under Section 6 of the Loan Agreement between Tony D. Linduff and the WEDC. Therefore, as per Section 5(a) of the Loan Agreement, the WEDC shall forgive the principal and interest payment associated with the Note. WEDC—Minutes March 18, 2003 Page 4 MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller forgiving Payment 2 ($16,137.66) and any associated interest as required under the Loan Agreement between Tony D. Linduff and the WEDC. The WEDC Board of Directors voted 3 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 10 — Discuss and Act Upon Issues Surrounding a Loan Agreement Between Yelrow, Inc. and the WEDC. Staff indicated that Yelrow, Inc. is not in default as defined under Section 6 of the Loan Agreement between Yelrow and the WEDC. Therefore, as per Section 5(a) of the Loan Agreement, the WEDC shall forgive the principal and interest payment. MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller forgiving Payment 3 ($10,715.34) and any associated interest as required under the Loan Agreement between Yelrow, Inc. and the WEDC. The WEDC Board of Directors voted 3 — FOR and 0 — AGAINST in favor of the motion. ITEM NO. 11 —Discuss and Act Upon Issues Surrounding a Loan Agreement Between DC & Associates, Inc. and the WEDC. Staff indicated that DC & Associates is not in default as defined under Section 6 of the Loan Agreement between DC & Associates and the WEDC. Also, staff indicated that the Executive Director did not bring forward for consideration to the WEDC Board of Directors forgiveness of Payment 4. Therefore, as per Section 5(a) of the Loan Agreement, the WEDC shall forgive the principal and interest payment for Payment 4 and Payment 5. MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John forgiving Payment 4 ($10,000.00) and Payment 5 ($10,000.00) and any associated interest as required under the Loan Agreement between DC & Associates, Inc. and the WEDC. The WEDC Board of Directors voted 3 — FOR and 0—AGAINST in favor of the motion. ITEM NO. 12—Staff Update of Retail/Commercial Projects Impacting the City of Wylie. Staff updated the WEDC Board of Directors on the construction of Alanis, Wendy's, Blockbuster, and a periodontist locating adjacent to Dr. Jeff Hambrice. Staff also informed the Board that American National and Inwood National Banks would be approached to discuss the potential for refinancing a WEDC note currently held at American National. Staff brought the item forward as information only with no motion or vote required. WEDC—Minutes March 18, 2003 Page 5 ITEM NO. 13—Citizen Participation. There being no citizen participation, President Yeager proceeded to Item No. 14. ITEM NO. 14—Adjourn. There being no further business, the meeting was adjourned at 8:15 a.m. John ager,President Attest: Samuel D.R. Satterwhite Executive Director