08-21-2019 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Wednesday, August 21, 2019—6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
CALL TO 0' 1 ER
Announce the presence of a Quorum
President Bryan Brokaw called the meeting to order at 6:31 a.m. Board Members present were
John Yeager, Todd Wintters, and Demond Dawkins.
Ex-officio member Chris Hoisted, City Manager was present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner,
and Senior Assistant Angel Wygant.
INVOCATION & PLEDGE OF ALLEGIANCE
Board Member Dawkins gave the 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 July 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 John Yeager to
approve the July 17, 2019 Minutes of the Wylie Economic Development
Corporation. The WEDC Board voted 4 —FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 2 —Consider and act upon approval of the July 2019 WEDC Treasurers Report.
Staff reviewed the Treasurers Report and called the Board's attention to the following highlights:
Sales Tax Receipts were $283,603, a 13.63% increase over 2018 receipts for the same period. To
date, FY 2018-2019 Sales Tax receipts are up 14.93% over FY 2017-2018.
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August 21, 2019
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During the month of July, the WEDC reimbursed sales tax receipts for Woodbridge Crossing and
Clark Street development in the amount of$81,722,funded regional advertising to support Wylie's
Bluegrass on Ballard event in the amount of$5,563, expended $6,476 for engineering associated
with the 544 Waterline project and plans for the Hwy 78 & Brown property, purchased property
located at 503 S. Ballard for $172,298, and obtained an access permit from KCS for the 544
Waterline project in the amount of$2,500.
MOTION: A motion was made by John Yeager and seconded by Todd Wintters to
approve the July 2019 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
President Brokaw moved to Item 5 on the Agenda to provide time for Board Member Mulliqi to
arrive and provide input for Items 3 and 4.
ITEM NO. 5 — Consider and act upon ratification of a Residential Contract between the WEDC
and Greta Kreymer for the purchase of property located at 302 N. Second Street.
Staff requested that the WEDC Board of Directors ratify a contract between the WEDC and Greta
Kreymer for the purchase of property located at 302 N. Second Street. This property is adjacent
to the properties previously acquired by the WEDC in the Brown & Highway 78 redevelopment
area.
MOTION: A motion was made by Demond Dawkins and seconded by John Yeager to
ratify a contract between the WEDC and Greta Kreymer for the purchase of
property located at 302 N. Second Street. The WEDC Board voted 4—FOR
and 0—AGAINST in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 6 — Review issues surrounding WEDC Performance Agreement Summary, Hotel
Occupancy Tax, environmental activity summary, Brown & 78 redevelopment update, 544
Gateway redevelopment update, The Rock Wood Fired Pizza, Water & Sewer/Thoroughfare
Impact Fees,Ballard Street Parking Improvements,WEDC property located at Eubanks& Squire,
Retail Live, active project summary, and regional housing starts.
Staff updated the Board on WEDC projects and activities. Highlights include:
Year-over-year sales tax receipts received in June for Woodbridge Crossing decreased 11.8% and
Woodbridge Centre increased 23% over the same period.
Staff reported that at the August 19, 2019 School Board Meeting the City of Wylie presented the
WISD Board of Trustees with payment for 100% of the back taxes owed on the 544 Gateway
property. City Council is eager to remove all liens associated with their 4.5 acres and place this
property back on the tax rolls. The VCP process continues to move forward on this property and
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August 21, 2019
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staff anticipates the site may be certified by TCEQ sometime between November 2019 and
February 2020.
Staff has been approached by a regional investment company which is in the process of acquiring
The Rock. Staff understands that The Rock has been attempting to sell its DFW locations and that
the Wylie store was pulled from the package due to the profitability of the store. Staff believes
the investment group intends to continue leasing to The Rock which continues to have the highest
alcohol sales of any restaurant in Wylie.
New Housing starts remained strong with fifty-six new homes permitted in Wylie in July.
Board Member Muliqi joined the meeting at 7:21 a.m.
ACTION ITEMS
ITEM NO. 3 — (Remove from Table) Consider and act upon the establishment of a Regular
Meeting Date and Time for the WEDC Board of Directors for 2019-2020.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
Remove Item No. 3 from the Table. The WEDC Board voted 5 —FOR and 0
—AGAINST in favor of the motion.
The Board opted to change the time of WEDC Board Meetings from 6:30 a.m. to 7:30 a.m. and
keep the Regular Meeting date as the third Wednesday of each month.
MOTION: A motion was made by Demond Dawkins and seconded by Gino Mulliqi to
set the 2019-2020 Regular Meeting Date and Time for the WEDC Board of
Directors as the 3rd Wednesday of each month at 7:30 a.m. The WEDC Board
voted 5 —FOR and 0 —AGAINST in favor of the motion.
ITEM NO. 4—Consider and act upon a Performance Agreement between the WEDC and DCU.
Staff reviewed the Performance Agreement and previous amendments to this agreement and
explained Incentive No. 2 associated with the DCU Performance Agreement was due for
consideration by the Board no later than 7-31-19. Within the Performance Measures staff
explained there is a requirement for a minimum appraised value of property located at 2774 Capital
Street within Regency Business Park. At the July 17, 2019 Board Meeting the Board granted a
30-day extension for consideration of this Incentive payment to allow time for the Central
Appraisal District to clarify the appraisal valuation for this building.
After discussion with the Central Appraisal District (CCCAD), it was determined that the value
requirement was missed due primarily to the involvement of the owner who acted as General
Contractor and personally oversaw the building process which resulted in significant savings in
construction costs. Since year one appraised value is based upon the actual cost of construction
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(per the CCCAD),the appraised value performance measure of$1.2 mm cannot be met in the first
year due in part to these cost savings.
Not wanting to penalize a business owner for effectively reducing their cost of construction which
results in the reduction in taxable value for the City in year one,staff recommended that the WEDC
Board approve an amendment to the DCU Performance Agreement waiving the minimum
valuation requirement for the first year only and reducing Incentive No. 2 from $12,500 to
$10,645.77. The incentive reduction was recommended to match the reduced tax receipts on the
lesser value.
MOTION: A motion was made by Gino Mulliqi and seconded by Todd Wintters to
approve an amendment to the DCU Performance Agreement waiving the
minimum valuation requirement for the first year only and reducing Incentive
No. 2 to $10,645.77. The WEDC Board voted 5 — FOR and 0 —AGAINST
in favor of the motion.
DISCUSSION ITEMS
ITEM NO. 7 —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
Recessed into Closed Session at 7:50 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 & Alanis
4, State Highway 78 & F.M. 544
• State Highway 78 & Cooper
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 2019-6a
• Project 2019-7a
• Project 2019-8a
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August 21, 2019
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Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code
Annotated (Open Meetings Act).
• Performance Evaluation of WEDC Staff
Staff members Sam Satterwhite, Jason Greiner and Angel Wygant left the meeting at 8:49 a.m.
and returned at 9:03 a.m.
' CONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
The WEDC Board of Directors reconvened into open session at 9:03 a.m. and took the following
action:
Following the review of accomplishments and performance against objectives during Staff
Performance Evaluation discussion in Executive Session, the following action was taken:
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve a 3% merit increase and a $10,000 performance bonus for the
Executive Director and approve a merit increase and market adjustment for
the Assistant Director increasing the annual salary to $90,000. The WEDC
Board voted 5 —FOR and 0—AGAINST in favor of the motion.
I JOU ' MENT
With no further business, President Brokaw adjourned the WEDC Board meeting at 9:04 a.m.
Brya Brokaw,President
ATTEST:
Samuel Satterwhite, Executive Director