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06-16-1998 (WEDC) Minutes Minutes WYLIE ECONOMIC DEVELOPMENT CORPORATION Tuesday,June 16, 1998 Board Members Present: Marvin Fuller Kevin St. John J.C. Worley John Yeager Staff Present: Samuel Satterwhite, Executive Director Jill Sherrill, Administrative Assistant Others Present: Carol Rodgers, Wylie Chamber Executive Director Mike Collins, City Manager Tobin Maples, City Planner 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 June 16, 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 Yeager at 2:10 p.m. ITEM NO. 1 - Discuss and Consider Approval of Minutes for the May 19, 1998 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 minutes for the May 19, 1998 Regular Board of Directors Meeting of 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 May, 1998 Treasurer's Report for the Wylie Economic Development Corporation. MOTION: A motion was made by J.C. Worley and seconded by Kevin St. John to approve the May, 1998 Treasurer's Report for the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4 - FOR and 0 -AGAINST in favor of the motion. WEDC -Minutes June 16, 1998 Page 2 ITEM NO. 3 - Discuss and Consider Issues Surrounding a Letter of Intent Between Moulding Associates, Inc. and the Wylie Economic Development Corporation. Staff briefed the Board on the background of Moulding Associates, Inc. (MAI) and stated that MAI preferred to have the "L" shaped site located east and north of CPI Communications. Staff stated that if the Letter of Intent was approved by the Board, Staff will approach CPI and request that CPI either exercise or release their first right of refusal on property north of the CPI site. Staff presented the Board with a draft copy of the Moulding Associates, Inc. Letter of Intent. Staff commented that there are very few changes from the final incentive proposal presented by the WEDC. The only significant change revolves around the lease participation by the WEDC. Board Member St. John stated that the WEDC Board needs to have visual inspection of the Garland facility at the time the building is vacated and also that the lease reimbursement payments not to start until the first full month of vacancy. Staff stated the Letter of Intent is intended to be a framework for the Loan Agreement. MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to approve the a Letter of Intent Between Moulding Associates, Inc. and the Wylie Economic Development Corporation. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 4 - Discuss and Consider Issues Surrounding a Tax Abatement Package for Presbyterian Hospital of Wylie. Staff briefed the Board on the background for a tax abatement package for Presbyterian Hospital of Wylie. Over the past 18 months, Presbyterian Hospital and Tenant Corporation have been attempting to merge and initiate extensive renovations to the previously named Physicians Regional Hospital. The renovations will have a cost of± $6,000,000. Staff has secured verbal commitments from the City of Wylie, Collin County, and Collin County Community College for approval of a 400% tax abatement over 5 years (80% per year). The WEDC will be presenting the tax abatement package to the Wylie City Council within the next thirty days. Assuming the entire $6,000,000 will be eligible for the abatement, the proposed tax abatement package will represent $32,400 in unrealized tax revenues each year for five years. City Manager Mike Collins stated that the projection date of completion for this project is August 1, 1998. ITEM NO. 5 -Discuss and Consider Issues Surrounding the Relocation of FarmTek, Inc. Staff briefed the Board on a request from FarmTek, Inc. for the WEDC assistance in renovating the Home Town Furniture Building. The renovations will include repainting building, roof repairs, landscaping, and parking improvements. Also, the owner, Mr. Mike Douglas, will need to extend the sewer lines. Mr. Douglas is requesting assistance in the amount of± $15,000 for sewer line improvements. WEDC - Minutes June 16, 1998 Page 3 MOTION: A motion was made by J.C. Worley and seconded by Kevin St. John to authorize staff to initiate an incentive an incentive package between FarmTek and the WEDC. The WEDC Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the motion. ITEM NO. 6- Discuss and Consider Issues Surrounding the 1998-1999 WEDC Budget. Staff indicated to the Board of Directors that a Budget Meeting will be scheduled at the earliest possible date. ITEM NO. 7- Discuss and Consider Issues Surrounding Best Technologies,Inc. Staff informed the Board that Mr. Gary Bottoms had understood that the WEDC was going to participate in landscape improvements. The Loan Agreement between the WEDC and BTI does not mention landscaping incentives, but staff did have conversations with Mr. Bottoms to that effect early on in the negotiations. Staff believes that the landscaping incentive was offered in good faith and that if the subject had been discussed during preparation of the Loan Agreement, the appropriate language would have been included. Staff recommended the WEDC Board of Directors approve payment of$4,187.50 to Best Technologies, Inc. as reimbursement of 50% of costs associated with landscaping improvements to the BTI facility. MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to approve the payment of $4,187.50 to Best Technologies, Inc. as reimbursement of 50% of costs associated with landscaping improvements to the BTI facility. The WEDC Board of Directors voted 3 - FOR and 0 - AGAINST in favor of the motion. Mr. Fuller abstained from the vote due to a conflict of interest. ITEM NO. 8 - Staff Reports. Staff stated that a 60,000 square foot self storage facility will be brought before P&Z for consideration in the next 60 days. This project will make the fourth tract either purchased or under contract within Century Business Park. Staff reported Hoffman should break ground on their office facility within the next two weeks. Staff is in the process of securing the variance needed to develop a portion of the Soil and Water Conservation Easement in place at the southern portion of the property. The variance should be complete within the next thirty days. Hoffman added 2,000 ft. to their original office floor plan and instead of a north and south layout, the building will be situated at a slight angle. This layout is the result of the final design of the facility, future expansion needs, and the location of the sewer main. Hoffman may have a legitimate argument for a variance to the masonry requirement for the fabrication facility. Tobin Maples, City Planner, addressed the Board on this issue. WEDC -Minutes June 16, 1998 Page 4 Staff informed the Board that Dollar General has a contract on property adjacent to Outlaws BBQ and State Highway 78. The site is not consistent with the City of Wylie Paving Ordinance. This inconsistency has resulted in the need to extend the contract on the property, redesign the site, and approach the Planning and Zoning Commission for a second time. Staff indicated L.G. Motorsports has their plans ready and are waiting for the property to be subdivided and that time limits are at risk. Staff and Board discussed scheduling a meeting to discuss long range planning and a budget workshop. The Wylie City Council will be considering candidates for the WEDC Board of Directors. Kevin St. John has completed one term and has agreed to serve a second term. Board Member Young has indicated that he will resign his position in July. Mr. Jerry Allen, Mr. Phil Buckmeyer, and Mr. Gary Bowland have submitted applications to the City Council for the open positions. Staff updated the Board on Project Quality and stated staff is still pursuing this project. The City Council interviewed three consultants to perform a comprehensive plan review and has decided to go with a Dallas based firm that completed Flower Mound's Comprehensive Plan. The WEDC will participate extensively in regards to any new business and industrial zoning classifications. Board Member St. John asked staff to make a recommendation as to the extent of participation of the WEDC Board of Directors. The Kansas City Southern Railway Company (KCS) met with City staff and Mayor Mondy to inform the City that KCS will be constructing 3 additional classification tracks immediately and up to 15 tracks in the future. The Board was concerned that no mitigation efforts were discussed. Even more concerning was the possibility that KCS may not even consider negotiating. The Board believed that at this point in the process, the primary concern of the City Council must be the removal of the 78 mainline. All other factors are obsolete compared to the importance of that issue. The WEDC Board instructed staff to publicly get involved and encourage the City Council to contact KCS to determine if the opportunity still exists to work together. Also, the Board instructed staff to contact KCS directly to open the lines of communication. ITEM NO. 9 - Citizen Participation. President Yeager opened the meeting for citizen participation. Mr. Henry Garland stated the City needs to be prepared for KCS, know what cards we have to play, and not to show our hand early. The community needs to stand together unified and to get on the same page. Also, the City needs to know all options and legal issues while trying to get a positive out of a no win situation. WEDC -Minutes June 16, 1998 Page 5 Ms. Kenya Johnson urged the WEDC Board to wait to call KCS and not to make any comments to reporters/press. Ms. Johnson believed that statements made by the WEDC Staff and Board have a big impact on the community. Ms. Johnson appealed to the Board to wait for the community to make decisions and gather more information to present to KCS or to fight against them. Sharon Dowdy stated she supported KCS's first efforts here but now there is not a positive coming out of this current plan by KCS. Also, Ms. Dowdy stated she supports the WEDC Board and staff in exploring to see if the opportunity exists to negotiate with KCS. Mr. Richard Parker stated the WEDC and City Council need to pursue all options available. "KCS is coming whether the community wants them or not and the need to make the best of it is paramount". Also, Mr. Parker stated the City Council does not need to spend tax dollars trying to oppose them, it is a no win situation. ITEM NO. 10-Adjourn. There being no further business, the meeting was adjourned at 4:00 p.m. John Ye ger, President Attest: Samuel D.R. Satterwhite Executive Director