01-20-1998 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday,January 20, 1998
Board Members Present:
Marvin Fuller(arrived 2:32)
Kevin St. John(arrived 2:32)
J.C. Worley
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
Vicky Cross, Administrative Assistant
Others Present:
Mr. 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 January 20, 1998 in the Board Room of the Wylie Chamber
of Commerce at 108 W. Marble St., Wylie, Texas.
The meeting was called to order by President John Yeager at 2:05 p.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the December 18, 1997
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 for the December 18, 1997 Regular Board of
Directors Meeting for 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 Approval of the December, 1997 Treasurer's Report
for the Wylie Economic Development Corporation.
MOTION: A motion was made by Merrill Young and seconded by J.C. Worley to
approve the December, 1997 Treasurer's Report as amended to reflect the
sale of Lots 7, 8, 9, and 10 of 544 Industrial Park for the Wylie Economic
Development Corporation. The WEDC Board of Directors voted 3- FOR
and 0 - AGAINST in favor of the motion.
WEDC - Minutes
January 20, 1998
Page 2
ITEM NO. 3 - Discuss and Consider the Relocation of CPI Communications to Premier
Business Park.
Staff presented the Board with a draft copy of the CPI Communications Loan Agreement. Staff
commented to the Board that there are three items within the Loan Agreement that the
Easterlings would like for the WEDC Board of Directors to reconsider.
1. Interest on Note 1 be subject to the same forgiveness criteria as the principal on Note 1
2. CPI be allowed to rent a portion of the proposed 14,000 square foot facility
3. The audit requirement on Page 8, Section 9(e)be removed from the agreement
Addressing item 2, the Board was not as concerned with CPI renting out a portion of the
proposed facility as long as CPI occupied more than 50% of the facility and maintained their
primary operations within Premier Business Park. The Board also agreed to release the audit
requirement for CPI if the lender for the construction loan (American National Bank) will
provide a letter to the WEDC describing business and personal account histories. Finally, the
WEDC Board held a lengthy discussion regarding automatic forgiveness of interest for Note 1 if
there is no Event of Default. The Board believes that interest payments will be forgiven on an
annual basis if there are no Events of Default, as with principal payments. Therefore, why
separate principal from interest if the terms of forgiveness are similar? Board members agreed to
have interest payments subject to the same terms of forgiveness as principal payments within the
Loan Agreement.
The Board of Directors instructed staff to make the appropriate changes and present a final Loan
Agreement at the next Board Meeting. Staff indicated that CPI is ready to begin construction as
soon as the Loan Agreement is finalized.
ITEM NO. 4 - Discuss and Consider Options for Providing Natural Gas Service to Premier
Business Park.
Staff presented the WEDC Board with a sample gas main extension contract between Lone Star
Gas (LSG) and the Wylie Economic Development Corporation. It is estimated that the cost of
providing gas service to Premier Business Park will be ±$50,000. Under the terms of the sample
contract, LSG will reimburse the WEDC for the cost of improvements based upon the annualized
gas usage within the Park. Mr. Will Nabors, Business Development Manager for LSG, estimated
that the WEDC will be reimbursed between $10,000 and $15,000 for the increased gas usage of
CPI and Hoffman Blast Room Equipment.
The Board believed that it is the WEDC's responsibility to provide gas to the Park and that it has
been the intention of this organization to do so as soon as there became a demand. The Board
instructed staff to finalize the gas main extension contract with Lone Star Gas, bringing the final
document back to the Board for final consideration.
WEDC - Minutes
January 20, 1998
Page 3
ITEM NO. 5 - Discuss and Consider Issues Surrounding the Reorganization of the Wylie
Chamber of Commerce.
Staff presented the Board with an organizational structure chart describing the proposed structure
of the Chamber of Commerce and the Wylie Economic Development Corporations. Board
member Kevin St. John was concerned with perception issues revolving around the Chamber
being influenced by the City of Wylie being that the proposed structure has the new Chamber
employee technically being a City employee. The WEDC Board instructed staff to investigate
other ways in which the new Chamber employee can be provided benefits.
ITEM NO. 6 - Discuss and Consider Issues Surrounding the Expansion of Accurate
Automatic.
Staff discussed Accurate Automatics intentions to expand their current operation within 544
Industrial Park and the concerns relating to increased parking space. The WEDC Board agreed
that the parking situation will determine the WEDC's involvement in the expansion.
Staff informed the Board that inadequate information is available to determine a level of
commitment by the WEDC. The WEDC Board instructed staff to provide the appropriate
documentation at the next Board Meeting.
ITEM NO. 7 - Staff Reports.
Staff summarized the Project Inventory and issues surrounding Aluma Graphics, American
Molds and an updated concept site plan for Premier Business Park. Mr. Mike Collins, City
Manager, was present to discuss issues surrounding the expansion to Highway 78, Potters
Landscaping, and Mayfield Concrete.
ITEM NO. 8 - Citizen Participation.
There being no citizen participation, President Yeager proceeded to Item No. 9.
ITEM NO. 9 - Convene Into Executive Session.
As per the Texas Open Meetings Act, Government Code Section 551.074 (evaluation of issues
regarding the Wylie Economic Development Corporations Administrative Assistant), the WEDC
convened into Executive Session.
ITEM NO. 10-Reconvene Into Open Meeting.
President Yeager called the meeting back into open session.
WEDC - Minutes
January 20, 1998
Page 4
MOTION: A motion was made by J.C. Worley and seconded by Merrill Young to offer
the WEDC Administrative Assistant a full-time position at $10.50 per hour.
The WEDC Board of Directors voted 5- FOR and 0 - AGAINST in favor of
the motion.
ITEM NO. 11. Adjourn.
There Being no further business, the meeting was adjourned at 5:05 p.m.
ohn Ye ger, President
Attest:
Samuel D.R. Satterwhite
Executive Director