12-23-2003 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
December 23, 2003
Board Members Present
Gary Bowland
Marvin Fuller
Kevin St. John(arrived at 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 December 23, 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 Marvin Fuller at 7:10 a.m.
ITEM NO. 1 — Consider and Act Upon Approval of Minutes for the November 18, 2003,
Regular Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by John Yeager and seconded by Gary Bowland to
approve the minutes for the November 18, 2003, 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 October, 2003 Treasurer's Report for
the Wylie Economic Development Corporation.
MOTION: A motion was made by Merrill Young and seconded by John Yeager to
approve the October, 2003 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 4—FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 3 — Consider and Act Upon Approval of November, 2003 Treasurer's Report
for the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to
approve the November, 2003 Treasurer's Report for the Wylie Economic
WEDC—Minutes
December 23, 2003
Page 2
Development Corporation. The WEDC Board of Directors voted 5 —FOR
and 0—AGAINST in favor of the motion.
ITEM NO. 4 — Consider and Act Upon Issues Surrounding an Economic Development
Incentive Agreement Between the WEDC and Southern Fastening Systems.
Staff informed the Board that Southern Fastening would not meet their $7.25 million dollar
commitment in 2004. Current value at their Wylie facility is appraised at $2.25 million which
represents their 60,000 square foot facility and valuation of land. The shortfall is due to
Southerns' inventory not being in place until shortly after January, 2003 (the date which the
Collin County Central Appraisal District places a value on property). Staff also indicated that
Southerns' 2004 inventory will be±$6.5 million or$750,000 short of the original commitment.
To address the 2003 and 2004 shortfall and determine an equitable means to convey the
remaining $200,000 incentive Southern is eligible to receive, staff recommended an amendment
to the original Incentive Agreement. The recommendation allowed for a pro-rated disbursement
of the $50,000 annual commitments. For example, the 2003 valuation equals 35% of the original
$7.25 commitment, therefore receiving 35% of the $50,000 incentive or $17,241. The
recommendation also extended the life of the agreement from 5 years to 6 years, thus allowing
Southern an additional year to reach the remaining$200,000 incentive.
Board member Yeager believed the amendment as recommended was equitable to both parties.
Members St. John and Bowland believed that the project has far exceeded the WEDC
expectations and suggested payment in full ($50,000) to Southern for the 2003 tax year.
President Fuller, while agreeing with the quality of the project, commented that a structure and
reasoning must be documented in order to grant the 2003 incentive in full being that Southern did
not meet the WEDC imposed minimum standards.
Staff commented that the position of Members St. John and Bowland should in no way be
considered a waiver of minimum requirements for Southern Fastening for the 2004 tax year.
MOTION: A motion was made by John Yeager to convey the pro-rated amount of
$17,241 to Southern Fastening Systems on February 1, 2004 following
confirmation of taxes paid. The motion died for a lack of a second.
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to
waive Year 1 requirements referenced in the Incentive Agreement and
issue payment of $50,000 to Southern Fastening Systems following
confirmation of taxes paid. The WEDC Board of Directors voted 4—FOR
and 1 —AGAINST in favor of the motion.
WEDC —Minutes
December 23, 2003
Page 3
ITEM NO. 5—EXECUTIVE SESSION:
The WEDC Board of Directors convened into Executive Session at 7:50 a.m. to hold
deliberations surrounding the sale of WEDC property located at 404 S. Highway 78 in
accordance with Section 551.072, Government Code, Vernon's Texas Code Annotated (Open
Meetings Act), and hold deliberations regarding economic development negotiations between
Project "Bright Light" in accordance with Section 551.087, Government Code, Vernon's Texas
Code Annotated(Open Meetings Act).
ITEM NO. 6—RECONVENE INTO OPEN MEETING:
The WEDC Board of Directors reconvened into open meeting at 8:15 a.m. No action was taken
as a result of Executive Session.
ITEM NO. 7—Staff Report.
Staff had no new information for Board members.
ITEM NO. 8—Citizen Participation.
There being no citizen participation, President Fuller proceeded to Item No. 9.
ITEM NO. 9—Adjourn.
There being no further business, the meeting was adjourned at 8:20 a.m.
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Marvin Fuller, President
Attest:
Samuel D.R. Satterwhite
Executive Director