07-21-1998 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday,July 21, 1998
Board Members Present:
Gary Bowland
Marvin Fuller
Kevin St. John
J.C. Worley
John Yeager
Staff Present:
Samuel Satterwhite, Executive Director
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 July 21, 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 2:00 p.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the June 16, 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 the minutes for the June 16, 1998 Regular Board of Directors
Meeting of the Wylie Economic Development Corporation. The WEDC
Board of Directors voted 5 - FOR and 0 - AGAINST in favor of the
motion.
ITEM NO. 2 - Discuss and Consider Approval of the June, 1998 Treasurer's Report for the
Wylie Economic Development Corporation.
MOTION: A motion was made by J.C. Worley and seconded by Gary Bowland to
approve the June, 1998 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
July 21, 1998
Page 2
ITEM NO. 3 -Discuss and Consider Issues Surrounding the Relocation of MAI to Premier
Business Park.
Staff presented the Board with a draft Loan Agreement between Moulding Associates, Inc.
(MAI) and the WEDC. Staff indicated that there are very few variations from the Letter of Intent
to the Loan Agreement. The most significant change was presented within Section 9,
Recommendation to the City and Other Entities. Under the Letter of Intent, the WEDC is only
acting as an advisor to the City Council regarding the proposed tax abatement for MAI. MAI
represents that the proposed tax abatement (± $105,000) is a significant portion of the incentive
package as a whole and if that amount cannot be guaranteed, it will `concern MAI greatly'.
Staff indicated to the Board that there is a 99.9% guarantee that the abatement will be approved
by the Wylie City Council, Collin County, and Collin County Community College (CCCC).
MAI would prefer that the WEDC guarantee the abatement dollars should any of the above
taxing entities balk at the abatement package. Should the WEDC decide to guarantee that
incentive, an additional incentive of$35,500 (abatement for Collin County and CCCC) will be
required from the WEDC. Aside from those additional dollars, the rate of return on investment
over future revenues will remain constant. The Board believed that while this will not be a
standard consideration for future incentive packages, the MAI project is too important to the
community to press the issue with MAI officials.
MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to
negotiate other incentives with MAI equal to the proposed abatement
package should the City of Wylie, Collin County, and Collin County
Community College not approve a tax abatement package of 300% over 5
years. The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in
favor of the motion.
ITEM NO. 4 - Discuss and Consider Issues Surrounding the Relocation of FarmTek, Inc. to
Wylie, Texas.
Staff presented a draft Loan Agreement between FarmTek, Inc. and the WEDC which commits
the WEDC to fund ± $15,000 in sewer improvements to the previously owned Hometown
Furniture site. The term of the Loan Agreement is 3 years with forgiveness contingent upon the
relocation of FarmTek, Inc. to the Hometown Furniture site, annexation of the site to within the
City of Wylie, application and approval of an appropriate zoning district by the Planning &
Zoning Commission and City Council, and the attraction and relocation of certain other
businesses to the site.
Staff indicated that the review of the Loan Agreement is preliminary and that final consideration
will take place within the next 30 days. The WEDC Board of Directors encouraged staff to
continue working with FarmTek and approved of the agreement in concept.
WEDC - Minutes
July 21, 1998
Page 3
ITEM NO. 5 - Discuss and Consider Goals and Objectives for the Wylie Economic
Development Corporation for the Fiscal Year 1998 - 1999.
Staff proposed that the WEDC Board of Directors must consider in the near future the long range
goals and objectives of the WEDC. Although the WEDC has been successful over the past 2
years in increasing the tax base and local employment opportunities, it is believed that the
WEDC has the opportunity to have a greater impact on the local economy if goals and objectives
are further refined. The Board unanimously agreed and instructed staff to make the appropriate
arrangements for a planning workshop.
ITEM NO. 6 - Discuss and Consider Issues Surrounding the Fiscal Year 1998 - 1999
Budget for the Wylie Economic Development Corporation.
At the WEDC Board Meeting, staff distributed a draft budget for the FY 1998 - 1999. With no
time to review the material, the Board had no specific comments regarding the WEDC Budget.
Staff suggested that the WEDC schedule a breakfast meeting within the next week to discuss
budget issues
ITEM NO. 7 - Staff Reports.
Staff updated the Board on issues surrounding Hoffman Blast Room Equipment, Accurate
Automatic, L.G. Motorsports, and the widening of F.M. 544.
ITEM NO. 8 - Citizen Participation.
There being no citizen participation, President Yeager proceeded to Item No. 9.
ITEM NO. 9 - Adjourn.
There being no further business, the meeting was adjourned at 4:12 p.m.
ohn Ye er, President
Attest:
Samuel D.R. Satterwhite
Executive Director