01-28-1997 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday,January 28, 1997
Board Members Present:
Marvin Fuller (arrived at 3:15, departed at 4:30)
Kevin St. John(arrived at 3:20)
J.C. Worley (left at 3:30 , returned at 4:00)
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
Others Present:
Mike Collins, City Manager
Lou Gigliotti, President, L.G. Motorsports
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 January 28, 1997 in the Chamber of Commerce Board
Room at 108 W. Marble Street, Wylie, Texas.
The meeting was called to order by President John Yeager at 3:05 p.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the December 17, 1996
Regular Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by J.C. Worley and seconded by Merrill Young to
approve the minutes of the December 17, 1996 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 - Discuss and Consider the Approval of the November, 1996 Treasurer's
Report for the Wylie Economic Development Corporation.
MOTION: A motion was made by J.C. Worley and seconded by Merrill Young to
approve the November, 1996 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.
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January 28, 1997
Page 2
ITEM NO. 3 - Discuss and Consider the Approval of the December, 1996 Treasurer's
Report for the Wylie Economic Development Corporation.
MOTION: A motion was made by J.C. Worley and seconded by Merrill Young to
approve the December, 1996 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.
Board member Fuller instructed staff to show the Savage Precision Fabrication loan as a
receivable on all future WEDC Balance Sheets. While no event of default is foreseeable with the
Savage loan, Board member Fuller believed this to be the most accurate representation of the
WEDC financial statements.
ITEM NO. 4 - Discuss and Consider Approval of Final Payment to JDC Construction in
the Amount of$8,945.00 for Entryway Improvements to Premier Business Park.
MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to
approve final payment to JDC Construction in the amount of $8,945.00
for entryway improvements to Premier Business Park. The WEDC Board
of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion.
ITEM NO. 5 - Staff Reports.
Staff updated the WEDC Board of Directors on issues surrounding CPI Communications, Inc.,
advertising efforts within the Dallas Business Journal "Best Relocation Deals of the Year"
special publication, zoning issues surrounding property purchased by Roy and Janice Neely, the
activities of Kansas City Southern Railroad, and activity within 544 Industrial Park. Staff also
presented Project Perry which is a company relocating to the D/FW area from Oklahoma.
ITEM NO. 6 - Discuss and Consider Issues Surrounding Gold Label, Inc.
Staff was contacted by Mr. James Collins, Vice President of Gold Label, Inc. inquiring as to the
availability of property within 544 Industrial Park. Gold Label manufactures Thirst Quencher
drink mix and a variety of other drink mixes. Gold Label is currently located in Addison. Mr.
Collins is interested in relocating Gold Label and Collins & Associates, an architectural/
construction firm, to the one acre lot on the northwest corner of Business Way and Commerce
Drive (Lot 1). Both companies will employ a combined 12 - 15 employees, occupy 12,000
square feet, and have real and personal property valued at $400,000.
Staff informed the Board that the WEDCs' cost for property within 544 industrial Park is $0.70
per square foot or $33,923 for Lot 1. Staff estimated that City of Wylie and WISD taxes
generated by Gold Label over three years will be approximately $26,520. Staff recommended
that the Board consider reducing the purchase price of the property by the taxes generated
leaving a $7,673 balance from the WEDC's cost. Staff asked the Board for further direction in
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January 28, 1997
• Page 3
determining a cost for property within 544 Industrial Park, or a point at which to begin
negotiations.
The WEDC Board of Directors indicated a high level of interest in this project based on new
employees, new taxable value, a new 12,000 square foot, 100% masonry building, and the
intangible spark to the 544 Industrial Park. Based on previous Board decisions regarding
increased construction cost to meet the 100% masonry requirement and based upon the estimated
taxes generated, the WEDC Board of Directors instructed staff to begin negotiation at 20% of
cost, or $6,785 for Lot 1 within 544 Industrial Park. The incentive agreement will be will be for
a minimum of three years with the standard events of default. The Board also instructed staff to
negotiate participation in landscaping improvements.
MOTION: A motion was made by Merrill Young and seconded by J.C. Worley to
authorize staff to begin a thorough investigation of Gold Label and
initiate the negotiation of an incentive agreement. The WEDC Board of
Directors voted 4 - FOR and 0 - AGAINST in favor of the motion.
ITEM NO. 7 - Discuss and Consider Issues Surrounding L.G. Motorsports.
Staff reviewed the history between the WEDC and Lou Gigliotti of L.G. Motorsports. Mr.
Gigliotti is interested in property within Century Business Park. L.G. Motorsports requires
approximately two acres for current operations of 12,000 square feet and acreage for future
expansion. Mr. Gigliotti employs 15 individuals with estimated real and personal property assets
of$511,500. Staff has estimated that the City of Wylie and the WISD will collect an estimated
$33,912 over a three year period.
Based upon ongoing negotiations with Century Business Park owners, the lowest sales price is
$1.10 per square foot or $95,832 for two acres. Mr. Gigliotti's financial limit for land purchase
is $70,000 leaving a shortfall of $25,832. Mr. Gigliotti approached staff and inquired as to
whether the WEDC would be willing to loan L.G. Motorsports $25,832. Staff requested that the
Board consider whether this is a viable project for the WEDC to participate in.
MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to
support in concept a loan of $25,832 to L.G. Motorsports and instructed
staff to begin a thorough investigation of the company's financial status.
The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor
of the motion.
ITEM NO. 8 -Discuss and Consider Issues Regarding Development of Premier Business
Park.
Staff presented the Board with a working document entitled "Vision 2000" - Premier Business
Park Development Standards. The cities of McKinney, Allen, Addison, Farmers Branch,
Garland, and Arlington were surveyed for business parks which have development standards in
place. Issues such as screening, signage, enforcement, building design, building placement,
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January 28, 1997
Page 4
landscaping, and miscellaneous issues were evaluated. Board member Worley instructed staff to
include within the comparison the current building requirements of the City of Wylie. No
motion was made on this item.
There being no further business, the meeting was adjourned at 5:40 p.m.
rohn Y ger, President
Attest:
Samuel D.R. Satterwhite
Executive Director