08-18-1998 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday,August 18, 1998
Board Members Present:
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 August 18, 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 2:11 p.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the July 21, 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 July 21, 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 Minutes for the July 27, 1998 Regular
Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to
approve the minutes for the July 27, 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. 3 - Discuss and Consider Approval of the July, 1998 Treasurer's Report for the
Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to
approve the July, 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.
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August 18 1998
Page 2
ITEM NO. 4 -Discuss and Consider Issues Surrounding the Relocation of FarmTek to
Wylie, Texas.
Staff presented the Board with a draft Loan Agreement between FarmTek, Inc. and the WEDC.
The Loan Agreement calls for FarmTek to relocate their Sachse operations to the previously
named Hometown Furniture buildings, and to make approximately 11,180 square feet available
for lease to light manufacturing/office tenants. In exchange, the WEDC will complete a sewer
extension to the site under a contract not to exceed $15,000. FarmTek will be forgiven the loan
amount over a three year period if: a) FarmTek relocates operations from Sachse, and b) attracts
a new business to the site with at least 5 employees, or c) attracts a new business to the site
paying annual wages of at least $150,000, or d) attracts a new business to the site which
generates annual revenues of at least $350,000.
MOTION: A motion was made by Kevin St. John and seconded by J.C. Worley to
approve a Loan Agreement and all documentation necessary to effectuate
said agreement between FarmTek, Inc. and the WEDC, further authorizing
the WEDC Executive Director to enter into an agreement with Morrow
Construction to perform the necessary sewer extension. The WEDC
Board of Directors voted 4 - FOR and 0 - AGAINST in favor of the
motion.
ITEM NO. 5 - Discuss and Consider Issues Surrounding the Fiscal Year 1998 - 1999
Budget for the Wylie Economic Development Corporation.
Staff presented an updated budget which was presented to the WEDC Board of Directors on July
27, 1998 regularly scheduled Board Meeting. Staff indicated that the categorized break-down of
the budget is as follows: Incentives - 41%, Personnel - 31%, Operating - 22%, and Marketing -
6% and that all recommended adjustments have been completed.
MOTION: A motion was made by Marvin Fuller and seconded by Kevin St. John to
approve the WEDC FY 1998 - 1999 budget as presented. 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 Relocation of Moulding
Associates, Inc. to Premier Business Park.
Mr. Steve Clemons, WEDC Counsel, presented the Board with changes to the Loan Agreement
which were requested by the attorney for MAI. The majority of the changes were characterized
as minor and not a threat to the intent of the Loan Agreement. The MAI attorney also requested
that the WEDC guarantee abatement of taxes which arise from any increase in value of the MAI
site or an increased tax rate, and withdraw all indemnification language from the document. First
of all, the WEDC Board of Directors did not consider the abatement request as reasonable due to
the inability of the WEDC to dictate appraised values or tax rates. Secondly, acting on the advise
of counsel, the WEDC Board advised staff to indicate to MAI representatives that the
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August 18 1998
Page 3
indemnification language will remain and that the Loan Agreement on the table is final and not
subject to negotiation.
MOTION: A motion was made by J.C. Worley and seconded by Kevin St. John to
approve a Loan Agreement and all documentation necessary to effectuate
said agreement between Moulding Associates, Inc. and the WEDC. The
WEDC Board of Directors voted 3 - FOR and 0 - AGAINST in favor of
the motion. Board Member Fuller abstained from the vote due to a
conflict of interest.
ITEM NO. 7- Staff Reports.
Staff indicated to the Board that a correction deed has been drafted and submitted to Phil
Easterling to execute. In addition, staff informed the Board that the Chamber of Commerce will
be compensated approximately $60 per week for assistance provided to the WEDC by Ms.
Heather Vaughn. This assistance has become necessary due to the vacancy left by the departure
of Jill Sherrill.
Staff also updated the Board on issues surrounding Alumagraphics, Novid Properties, Inc., the
Comprehensive Land Use Plan Steering Committee, Accurate Automatic, a proposed assisted
living facility, an upcoming TEDC Conference, and the nomination of Savage Precision
Fabrication, Inc. as Texas Family Business of the Year.
ITEM NO. 8 - Citizen Participation.
There being no citizen participation, President Yeager proceeded to Item No. 9.
ITEM NO. 9 - Convene Into Executive Session.
Personnel Matters: {Texas Open Meetings Act, Government Code Section 551.074}: Annual
Evaluation of the Executive Director to the Wylie Economic Development Corporation.
ITEM NO. 10- Reconvene Into Open Meeting.
After reconvening into open session, the Board members briefly discussed the performance of
the Executive Director. The area which requires the most improvement is decision making as it
pertains to the negotiation of incentive packages. The Board characterized the Executive
Director as being so intent on closing the deal, that unreasonable concessions are considered by
the WEDC (i.e. Loan Agreements are excessively manipulated by the prospect). Aside from
that point, the Board was pleased with the performance of the Executive Director.
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August 18 1998
Page 4
MOTION: A motion was made by Kevin St. John and seconded by Marvin Fuller to
authorize a salary increase for the Executive Director in the amount of
$4,460 annually, and an annual increase in car allowance in the amount of
$1,500. The Board voted 4 - FOR and 0 - AGAINST in favor of the
motion.
ITEM NO. 11 -Adjourn.
There being no further business, the meeting was adjourned at 4:51 p.m.
ohn ager, President
Attest:
Samuel D.R. Satterwhite
Executive Director