01-26-1999 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday,January 26, 199i
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 January 26, 1999 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 2:09 p.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the December 15, 1998
Regular Board of Directors Meeting of the Wylie Economic Development Corporation.
President Yeager indicated that the Motion for Item No. 5 was incorrect and did not reflect the
decision of the WEDC Board of Directors to withdraw an incentive package offered to Benecore,
Inc. should financing not be secured by February 1, 1999.
MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to
approve the minutes for the December 15, 1998 Regular Board of
Directors Meeting of the Wylie Economic Development Corporation as
amended. 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 December, 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 December, 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
January 26, 1999
Page 2
ITEM NO. 3 -Discuss and Consider Issues Surrounding Gold,Label, Inc.
Staff informed the WEDC Board that Gold Label, Inc. has approached the WEDC again in hopes
of securing property within 544 Industrial Park to support a 10,000 facility. Gold Label
manufactures powder drink mixes and employs approximately 8 individuals. Gold Label
officials requested property on the corner of Business Way and Commerce. However staff
informed the Board that unless otherwise instructed, staff would only pursue Gold Label if
located at the end of the cul-de-sac within the Park. The Board agreed with staffs' approach and
advised staff to ensure that Gold Label has adequate financing.
ITEM NO. 4 - Discuss and Consider Issues Surrounding Hoffman Blastroom Equipment.
Staff informed the WEDC Board of Directors that Hoffman will not be placing a mixture of
asphalt/concrete surrounding the fabrication facility and that Hoffman will be in Default of the
Loan Agreement. Board Member Fuller believed that a crushed concrete surface, as currently
proposed, will be acceptable. The Board as a whole agreed that no funds will be expended to
assist in paving improvements as originally committed to within the Loan Agreement. As well
though, the Board did not believe it to be necessary to pursue default under the circumstances.
Board Member St. John commented that since the WEDC will not be funding $164,869.00 in
paving improvements, subordination to the financial institution providing the permanent
construction loan will be acceptable. Finally, the Board was concerned that changes may be
made in the landscaping agreement. In an effort to address that concern, staff suggested that
landscaping improvements become an Event of Default.
MOTION: A motion was made by J.C. Worley and seconded by Kevin St. John to
withdraw Note 3 from the Loan Agreement, not pursue a default
associated with paving improvements, place language within the Loan
Agreement which specifies screening improvements as an Event of
Default, and provide a subordination clause. The WEDC Board of
Directors voted 5 -FOR and 0 - AGAINST in favor of the motion.
ITEM NO. 5 - Discuss and Consider Issues Surrounding Project Honeycomb.
Staff informed the Board that Benecore, Inc. had been approved for a construction loan of$2.4
million by First Texas Bank. At the current time, First Texas and Benecore are working with the
USDA to secure the package. First Texas officials estimate closing by the end of February.
Staff suggested an extension of time for Benecore to allow for the USDA process.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
allow Benecore, Inc. 60 days to secure financing through First Texas and
the USDA prior to withdrawing the existing incentive package. The
WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor of
the motion.
WEDC -Minutes
January 26, 1999
Page 3
ITEM NO. 6 - Discuss and Consider Issues Surrounding a Loan Agreement Between the
Wylie Economic Development Corporation and Savage Precision Fabrication, Inc.
Staff indicated that the final year of the Loan Agreement between Savage Precision Fabrication,
Inc. and the WEDC will occur on January 31, 1999. At that time, should there be no Event of
Default, the principal payment will automatically be forgiven and an interest payment of$833.33
will be due and payable. However, as provided in the Loan Agreement, the interest payment
may be forgiven by an affirmative vote of the WEDC Board of Director's.
MOTION: A motion was made by Marvin Fuller and seconded by J.C. Worley to
forgive the interest payment of $833.33 associated with the Loan
Agreement between Savage Precision Fabrication, Inc. and the WEDC.
The WEDC Board of Directors voted 5 - FOR and 0 - AGAINST in favor
of the motion.
ITEM NO. 7 - Discuss and Consider Amending the By-Laws of the Wylie Economic
Development Corporation.
Staff provided a copy of the existing by-laws to the WEDC Board of Directors. Staff
commented that the name change within the by-laws be addressed, qualifications for serving on
the Board, and tenure of Board members should be consider in the future. The Board advised
staff to present the Board with possible amendments. At that time, the Board will consider
whether a Special Called Meeting will be held to address the issue followed by presentation to
the Wylie City Council.
ITEM NO. 8 - Staff Reports.
Staff updated the Board on projects such as Accurate Automatic and Falcon Fine Wire.
ITEM NO. 9 - Citizen Participation.
There being no citizens present, the Chairman proceeded to Item No. 10.
ITEM NO 10 - Adjourn.
There being no further business, the meeting was adjourned at 4:17 p.m.
John Ye er, resident
Attest:
Samuel D.R. Satterwhite
Executive Director