02-13-1998 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Friday, February 13, 1998
Board Members Present:
Marvin Fuller
Kevin St. John
J.C. Worley
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
Others Present:
Joe Hoffman, CEO - Hoffman Blast Room Equipment
Eric Thomas, President - Hoffman Blast Room Equipment
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 February 13, 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 12:02 p.m.
ITEM NO. 1 - Discuss and Consider Issues Surrounding the Relocation of Hoffman Blast
Room Equipment to Premier Business Park.
Staff presented the WEDC Board of Directors with issues surrounding the Hoffman Loan
Agreement and associated documentation. Board member Fuller was concerned with the
documents as presented due to language which would require the WEDC to subordinate its
interest in the property and language detailing the possibility that the interest on Note 3
($165,000) may be forgiven by the Board at some point in the future. Theoretically, Hoffman
could borrow far in excess of the project's worth when Note 3 is funded. This would create a
situation in which a second lien on the property by the WEDC could be worthless. For that
reason, the WEDC amended the Loan Agreement to state that the WEDC will not subordinate its
interest in the property to any financial institution. However, should Hoffman pay cash for Phase
I and pay cash for a substantial portion of Phase II, the WEDC will review a proposal in which
the WEDC subordinates as long as Note 3 is protected fully. In addition, the Board required that
language be added which states that interest will be paid on Note 3 and there will be no
possibility for forgiveness. Representatives from Hoffman were present and agreed with these
amendments.
WEDC -Minutes
February 13, 1998
Page 2
MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to
approve all agreements and documentation, as amended, required to
effectuate the WEDCs' incentive proposal with Hoffman Blast Room
Equipment. The WEDC Board of Directors voted 5 - FOR and 0 -
AGAINST in favor of the motion.
MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to
authorize John Yeager, Chairman of the Board of the WEDC, to execute
all agreements and documentation, as amended, required to effectuate the
WEDCs' incentive proposal with Hoffman Blast Room Equipment. The
WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of
the motion.
ITEM NO. 2 - Discuss and Consider Issues Surrounding the Expansion of Accurate
Automatic.
MOTION: A motion was made by J.C. Worley and seconded by Marvin Fuller to
table Item No. 2. The WEDC Board of Directors voted 5- FOR and 0 -
AGAINST in favor of the motion.
ITEM NO. 3 - Staff Reports.
Staff discussed issues surrounding Moulding Associates, Inc., extending gas to Premier Business
Park, Project First Response, reorganization of the Wylie Chamber of Commerce, and the 1998
Community Profile.
ITEM NO. 4 - Citizen Participation.
There being no citizen participation, President Yeager proceeded to Item No. 5.
ITEM NO. 5 - Adjourn.
There being no further business, the meeting was adjourned at 1:45 p.m.
ohn Y ager, President
Attest:
Samuel D.R. Satterwhite
Executive Director