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12-09-1997 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION Tuesday, December 9, 1997 Board Members Present: Marvin Fuller Kevin St. John(arrived at 1:30 p.m.) J.C. Worley John Yeager Merrill Young Staff Present: Samuel Satterwhite, Executive Director Vicky Cross, Administrative Assistant Others Present: Mike Collins, City Manager Henry Garland, Chamber of Commerce Board Member 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 9, 1997 in the Board Room of the Wylie Chamber of Commerce at 108 W. Marble, Wylie, Texas. The meeting was called to order by President John Yeager at 1:25 p.m. ITEM NO. 1 - Discuss and Consider Approval of Minutes for the October 21, 1997 Regular Board of Directors Meeting of the Wylie Economic Development Corporation. MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to approve the Minutes for the October 21, 1997 Regular Board of Directors Meeting for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 2 - Discuss and Consider Approval of the October, 1997 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 October, 1997 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the motion. WEDC - Minutes December 9, 1997 Page 2 ITEM NO. 3 - Discuss and Consider the Relocation of Best Technologies, Inc. to 544 Industrial Park. Staff presented the Board with the following documents drafted to implement an incentive package between the WEDC and Gary Bottoms: a Loan Agreement, Promissory Note for $7,500, Promissory Note for $6,526, Promissory Note for $55,000, Deed of Trust, Real Estate Lien Note, Warranty Deed with Vendor's Lien, and a Limited Guaranty Contract. Staff reviewed the above documents which are a product of negotiations between Gary Bottoms and the WEDC over the past six months. The Loan Agreement governs the repayment and forgiveness of all incentives being offered to Mr. Bottoms. The Board members were pleased that the Best Technologies project has come to a conclusion and advised staff to publicize the WEDC's relocation of 55 employees, etc. MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to approve all agreements and documentation required to effectuate the Corporations' incentive proposal with Gary Bottoms. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. Citing a conflict of interest, Board Member Fuller abstained. MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to authorize John Yeager, Chairman of the Board of the Wylie Economic Development Corporation, to execute all agreements and documentation required to effectuate the Corporations' incentive proposal with Gary Bottoms and Best Technologies, Inc. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. Citing a conflict of interest, Board Member Fuller abstained. ITEM NO. 4 - Discuss and Consider Issues Surrounding the Relocation of Hoffman Blast Room Equipment to Premier Business Park. Hoffman presented staff with an updated version of the site plan which the WEDC Board of Directors have been considering over the past several months. The version considered reflected an 8,000 square foot expansion of the original fabrication shop, extensive screening of outside storage areas, and extensive paving surrounding the fabrication facility. Board Member Fuller maintained a concern for the width of the site. This concern was based upon the southwest corner being the best site south of New Hensley and the impression that Hoffman is requesting more property than is actually necessary to efficiently run their business operations. A majority of the Board members agreed with Mr. Fuller. Board Member St. John suggested that Hoffman should decrease the width of the site by 50'. As well, the suggestion was made to insist to Hoffman the extension of the site plan to include property south of the storage area to the southernmost property line. WEDC - Minutes December 9, 1997 Page 3 Additionally, staff presented the Board with an analysis of increased paving cost over that of crushed concrete on the entire site plan. Staff indicated that based upon a combination of concrete and asphalt, Hoffman will bear an increased cost of$186,075. Board Member St. John strongly believed a 75% participation in increased costs, as requested by Hoffman, is excessive. This belief was supported by the fact that the WEDC Board of Directors previously agreed that a 100% property grant would be acceptable, thus placing a value on the land incentive at a minimum of$233,481 ($0.80 per square foot). A majority of the Board agreed with the previous assertion with Board Member St. John suggesting a 50% participation level not to exceed $65,000. MOTION: A motion was made by Merrill Young and seconded by J.C. Worley to (1) reimburse Hoffman 50% of increased paving costs not to exceed $65,000, and (2) offer Hoffman a parcel of property at the southwest corner of Premier Business Park which must be 934' deep and not exceed 350' in width. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 5 - Discuss and Consider Issues Surrounding the Relocation of L.G. Motorsports to Century Business Park. The Board was provided with a brief history of the L.G. Motorsports project and a full review of the Gigliotti's personal income tax returns and L.G. Motorsports balance sheet and income statements since 1995. Considering the length of time this project has taken to develop, the Board was pleased that Mr. Gigliotti is prepared to close. Staff informed the Board that L.G. Motorsports will generate approximately $34,230 in property tax to the City of Wylie and WISD over the next three years, thus the WEDC investment of $25,832 will take 2.3 years to recoup. Aside from the increased employment (15) and increased property taxes, the WEDC Board of Directors believe that the site location within Century Business Park will generate additional activity at a site which has been dormant for±10 years. The consensus of the Board was that L.G. Motorsports is an acceptable project for the WEDC to be involved with. While this is the case, there was concern that the WEDC should not release any funds prior to the completion of the building. Staff suggested that funds be released upon issuance of a certificate of occupancy by the City of Wylie. The full Board agreed with that suggestion. Board Member St. John indicated that due to the fact that L.G. Motorsports markets their product nationwide, the WEDC must insist on a Wylie mailing address. Staff added that the WEDC should require Mr. Gigliotti to place `Wylie, Texas' on all L.G. Motorsports racing vehicles so as to promote Wylie. WEDC - Minutes December 9, 1997 Page 4 MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to authorize staff to initiate the legal steps necessary to loan $25,832 to Lou Gigliotti. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 6 - Discuss and Consider Issues Surrounding the Relocation of CPI Communications to Premier Business Park. Staff presented the Board with a brief history of the CPI project which the Corporation has been involved in for the past eighteen months. Mr. Perry Easterling has indicated that CPI requires 2.34 acres and $20,000 to relocate to Premier Business Park. The site requested is at the northwest corner of the park and is 530' by 210'. Although CPI intends to expand the proposed 14,000 square foot facility in the future, the WEDC Board of Directors believe that the risk of leaving the northern portion of the tract vacant is too great. Therefore, Board Member Fuller suggested that the WEDC grant the property necessary to support the proposed operations and offer CPI a first-right-of refusal on property to the north. The Board was in agreement. In terms of a relocation grant, the Board believed that $20,000 was far too much for a company with so little personal property. Staff recommended that the Board offer the amount to be generated by CPI in property taxes to the City of Wylie over a one year period. MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to offer CPI Communications the minimum amount of property necessary to support CPI operations at the northwest corner of the Park and $2,882 to relocate to Wylie. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 7 - Discuss and Consider Issues Surrounding the Reorganization of the Wylie Chamber of Commerce. Henry Garland, Wylie Chamber of Commerce Board Member, presented the WEDC Board with a proposed reorganization of the Wylie Chamber of Commerce. The WEDC is being approached because the proposal calls for the Chamber to contract with the WEDC for managerial services of Chamber staff. The Board discussed the issue and agreed that the proposed structure has merit and supported the further exploration of the reorganization. ITEM NO. 8 - Staff Reports. Staff reviewed the project inventory, the status of the Aluma Graphics expansion, Kansas City Southern Railway, and the realignment of Alanis Lane. WEDC - Minutes December 9, 1997 Page 5 ITEM NO. 9 - Citizen Participation. There being no citizen participation, President Yeager proceeded to Item No. 10. ITEM NO. 10- Discuss and Consider Issues Surrounding Project First Response. Staff informed the Board that Project First Response had resurfaced with First Response management taking the relocation decision to the Board of Directors in order to make offers on property necessary to initiate the proposed expansion. ITEM NO. 11 - Adjourn. There being no further business, the meeting was adjourned at 4:22 p.m. ohn Ye er, resident Attest: Samuel D.R. Satterwhite Executive Director