03-18-1997 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday,March 18, 1997
Board Members Present:
Marvin Fuller
Kevin St. John(left at 4:26)
J.C. Worley
John Yeager
Merrill Young (arrived at 3:12)
Staff Present:
Samuel Satterwhite, Executive Director
Others Present:
Joel Scott, Wylie City Council
Mike Collins, City Manager
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, 1997 in the Wylie Chamber of Commerce Board
Room at 108 W. Marble, Wylie, Texas.
The meeting was called to order by President John Yeager at 3:07 p.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the February 24, 1997
Regular Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to
approve the Minutes for the February 24, 1997 Regular Meeting of the
Wylie Economic Development Corporation Board of Directors. The
WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of
the motion.
ITEM NO. 2 - Staff Reports.
Staff updated the Board on issues surrounding Telecom Strategies, Inc., L.G. Motorsports, Wylie
Machine, Inc., a multi-family zoning request by Richard Parker, and paving and drainage
improvements to Steel Road. Board member Worley pointed out that the Council vote to rezone
property owned by the Neely's was 7 - 0 Against and not 6 - 1 Against as indicated in the Staff
Report. The Board also instructed staff to maintain contact with L.G. Motorsports and update
Board members on an as needed basis.
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March 18, 1997
Page 2
ITEM NO. 3 - Discuss and Consider Approval of an Incentive Agreement Between the
WEDC and Novid Properties,Inc.
The Board of Directors instructed Staff to write a letter to representatives of Novid Properties,
Inc. clarifying the terms of interest payments to the WEDC. Board member St. John instructed
staff to correct a clerical error in Section 2(p) of the Loan Agreement.
MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to
approve the Loan Agreement as amended between the Wylie Economic
Development Corporation and Novid Properties, Inc. The WEDC Board
of Directors voted 5 - FOR and 0 - AGAINST in favor of the motion.
ITEM NO. 4 - Discuss and Consider Offering an Incentive Package to Gold Label,Inc.
Staff presented the Board with financial documentation on the Addison based Gold Label, Inc.
Gold Label has proposed the construction of an 8,000 - 10,000 square foot manufacturing facility
on Lot 1 within 544 Industrial Park. Gold Label will employ 12 - 15 individuals during peak
season and 4 - 6 individuals during the winter months in their production of powdered drink
mixes. Gold Label will bring $50,000 in personal property and increase real property values by
$338,000 within 544 Industrial Park. Staff presented an analysis of Gold Label whereas taxes
generated over a three year period would be approximately $25,776.
The Board of Directors primary concern was the ability of Gold Label to generate the necessary
cash flow to service a ±300,000 note. In addition, sales over the past three years have been
unstable. The Board discussed the goals of the WEDC and the fact a company requiring
financial assistance may not have the strongest financials, thus incentives would be necessary.
Based on that assumption the Board believed that the development of Lot 1 may increase the
overall activity within the Park and property which is not on the tax roles will begin to generate
taxes. Also, if Gold Label is able to secure financing, the WEDC Board of Directors will have a
greater comfort level with the project.
In order to offset the 100% masonry building requirement and as an incentive for Gold Label to
relocate to Wylie, the board agreed that Lot 1 may be sold for 20% of cost, or $6,736. In
addition, for every $2.00 spent by Gold Label on landscaping improvements, the WEDC will
contribute $1.00.
MOTION: A motion was made by Kevin St. John and seconded by Merrill young to
approve an incentive package to Gold Label, Inc. for the sale of Lot 1
within 544 Industrial Park for $6,736 and participate in landscape
improvements under a 2 to 1 matching scenario based on the condition
that Gold Label secures conventional financing to construct a minimum
10,000 square foot, 100% masonry building. The WEDC Board of
Directors voted 5 - FOR and 0 - AGAINST in favor of the motion.
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March 18, 1997
Page 3
ITEM NO. 5 - Discuss and Consider Issues Surrounding a Best Technologies, Inc. Facility
in 544 Industrial Park.
Staff presented the Board with a company profile and financials for Best Technologies, Inc.
(BTI) of Richardson. BTI has expressed an interest in moving their Richardson facility to 544
Industrial Park. BTI requires approximately 1.5 acres for a 15,000 square foot facility which will
employ 55 individuals. BTI will increase personal property values by approximately $250,000
and real property by $495,000. Taxes generated by BTI to the City of Wylie and Wylie
Independent School District will be an estimated $16,700 per year. Mr. Gary Bottoms, CEO of
BTI, has indicated that reduced property cost and relocation expenses are the primary needs of
BTI in their attempt to relocate to Wylie.
Board members were pleased with the strength of BTI financials. Although the WEDC has
generally used 20% of cost for property within 544 Industrial Park to offset the 100% masonry
building requirement and encourage development, it was determined that Lots 8, 9, and 10
should be conveyed to BTI at no cost based on the increased level of personal property and
employees. Based upon this increased level of land participation, it was determined that no
relocation expenses be offered to BTI at this time.
The Board did question the ability of BTI to construct a 15,000 square foot facility and have
adequate parking for 55 employees. Staff informed the Board that the Lots 8, 9, and 10 (1.57
acres) will be adequate for BTI's facility and parking, but will leave very little room for future
expansion. Board member Worley commented that the adjacent Lot 7 may have to be conveyed
to BTI now or in the near future to facilitate the relocation.
MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to
offer Lots 8, 9, and 10 to Best Technology, Inc. for the construction of a
15,000 square foot facility and relocation of real and personal property,
and 55 employees from their Richardson operations. The WEDC Board of
Directors voted 4 - FOR and 0 - AGAINST in favor of the motion.
ITEM NO. 6 - Discuss Issues Surrounding a Kansas City Southern Railway Facility in
Wylie,Texas.
Staff updated the WEDC Board on issues surrounding the development of a Kansas City
Southern (KCS) Intermodal facility in Wylie. Issues discussed were funding alternatives for the
widening of State Highway 78, a meeting between City of Wylie and KCS officials in Kansas
City and the importance of the Wylie site to KCS in their development of increased rail traffic
due to the NAFTA Trade Agreement. No action on this issue was taken by the WEDC Board of
Directors at this time.
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March 18, 1997
Page 4
ITEM NO. 7 - Discuss and Consider Approval of the February, 1997 Treasurer's Report
for the Wylie Economic Development Corporation.
Staff informed the Board that a payment to the Hogan Corporation in the amount of$746.50 was
made in error and should have been paid by the City of Wylie. The Board instructed staff to
ensure a credit to the WEDC was made.
MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to
approve the February, 1997 Treasurer's Report for the Wylie Economic
Development Corporation based on the confirmation that a $746.50
payment to the Hogan Corporation be reimbursed by the City of Wylie.
The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor
of the motion.
ITEM NO. 8 -Adjourn.
There being no further business, the meeting was adjourned at 5:40 p.m.
ohn ea r, President
Attest:
Samuel D.R. Satterwhite
Executive Director