10-12-1999 (WEDC) Minutes Minutes
WYLIE ECONOMIC DEVELOPMENT CORPORATION
Tuesday, October 12, 1999
Board Members Present:
Gary Bowland
Kevin St. John
John Yeager
Merrill Young
Staff Present:
Samuel Satterwhite, Executive Director
Ashley Gillean, Administrative Assistant
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 October 12, 1999 in the Woodbridge Conference Room at
7400 Country Club Dr., Wylie, Texas.
The meeting was called to order by President John Yeager at 7:13 a.m.
ITEM NO. 1 - Discuss and Consider Approval of Minutes for the August 31, 1999 Regular
Board of Directors Meeting of the Wylie Economic Development Corporation.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland to
approve the minutes of the August 31, 1999 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 August, 1999 Treasurer's Report for
the Wylie Economic Development Corporation.
MOTION: A motion was made by Merrill Young and seconded by Kevin St. John to
approve the August, 1999 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.
ITEM NO. 3 - Discuss and Consider Issues Surrounding a Loan Agreement Between DC &
Associates and the Wylie Economic Development Corporation.
Staff informed the Board that Payment 1 associated with Note 1 of the Loan Agreement between
the WEDC and DC & Associates has become due. DC & Associates is not in default, having
met all requirements of the loan agreement.
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October 12, 1999
Page 2
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to
forgive Payment 1 associated with Note 1 of the Loan Agreement between
the WEDC and DC & Associates. The WEDC Board of Directors voted 4
- FOR and 0 - AGAINST in favor of the motion.
ITEM NO. 4 - Discuss and Consider Issues Surrounding the Relocation of Multi-
Machining, Inc. to 544 Industrial Park.
Staff informed the Board of the Multi-Machining, Inc. proposal to relocate their business to Lot 1
of 544 Industrial Park. This relocation would include a 13,500 square foot, tilt-wall facility, the
addition of 5 employees to their current staff, and the purchase of two new CNC machines. Real
property improvements at the site would be valued at approximately $500,000 with personal
property values at approximately $400,000. The impact of the added value to the City of Wylie
and WISD would be approximately $12,000 a year in property taxes.
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to
authorize staff to negotiate a Letter of Intent between the WEDC and
Multi-Machining, Inc., provided that there is a Commitment Letter for
financing in place. 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 Relocation of Althuser, Inc. to
544 Industrial Park.
Staff informed the Board that Althuser currently has a commitment for financing with First
National Bank of Sachse. Staff recommended the Board of Directors authorize staff to proceed
with a Loan Agreement between Althuser, Inc. and the WEDC. Via the Loan Agreement the
WEDC will convey Lots 5 and 6 within 544 Industrial Park to Althuser and enter into a 5 year
note with Althuser for$55,240.
MOTION: A motion was made by Gary Bowland and seconded by Kevin St. John to
authorize staff to negotiate a Loan Agreement between Althuser, Inc. 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 a Resolution Authorizing Mr.
John Yeager to Execute a Promissory Note to American National Bank of Texas for
$1,234,409 for the Purchase of a ±5 Acre Industrial Tract Generally Located at 404 S.
Highway 78 (Extruders Division of Atrium Companies, Inc.).
Staff informed the Board that there is a signed Conflict of Interest form on file for Board
Member Fuller because of Mr. Fuller's relationship with American National Bank.
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October 12, 1999
Page 3
Staff indicated that in order for the WEDC to purchase the existing Extruders site, the Board of
Directors must formally authorize President Yeager to execute the Promissory Note with
American National Bank. Also, a corporate resolution must be approved, authorizing the pledge
of future sales tax receipts.
MOTION: A motion was made by Kevin St. John and seconded by Merrill Young to
authorize Mr. John Yeager to execute a Promissory Note and all other
documents necessary to borrow $1,234,409 from the American National
Bank of Texas and to pledge the Corporation's sales and use tax receipts
as security for such note. Also, the WEDC Board further authorizes
Assistant Secretary, Mr. Gary Bowland, to certify the minutes of this
meeting and the contents of the resolution. The WEDC Board of Directors
voted 4 - FOR and 0 - AGAINST in favor of the motion.
ITEM NO. 7 - Discuss and Consider Issues Surrounding the Agreement of Sale and
Purchase of a ±5 Acre Industrial Tract Generally Located at 404 S. Highway 78 (Extruders
Division of Atrium Companies, Inc.).
Staff informed the Board that there is a signed Conflict of Interest form on file for Board
Member Fuller because of Mr. Fuller's relationship with American National Bank.
As with Item No. 6, the WEDC Board of Directors must formalize an agreement of Sale and
Purchase in order to purchase the existing Extruders Site.
MOTION: A motion was made by Kevin St. John and seconded by Gary Bowland
authorizing Mr. John Yeager to execute an Agreement of Sale and
Purchase and all documentation necessary to effectuate the agreement
between the WEDC and Atrium Companies, Inc. The WEDC Board of
Directors voted 4 -FOR and 0 -AGAINST in favor of the motion.
ITEM NO. 8 - Discuss and Consider Issues Surrounding a Lease Agreement by and
Between the Wylie Economic Development Corporation, as Landlord, and Atrium
Companies, as Tenant.
With negotiations finalized for the lease of the Extruders facility, staff presented the lease
document to the Board. Staff informed the Board that the leaseable area for the nineteenth
month through year five will be 33,344 square feet as opposed to 30,000 square feet as indicated
in prior discussions. Board Member Bowland commented that will only have a positive impact
on the WEDC cash flow.
MOTION: A motion was made by Merrill Young and seconded by Gary Bowland to
authorize Mr. John Yeager to execute a Lease Agreement by and Between
the Wylie Economic Development Corporation, as Landlord, and Atrium
Companies, as Tenant and all documents necessary to effectuate said
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October 12, 1999
Page 4
agreement. The WEDC Board of Directors voted 4 - FOR and 0 -
AGAINST in favor of the motion.
ITEM NO. 9 - Discuss and Consider Issues Surrounding the Relocation/Expansion of
Extruders, Inc. to Premier Business Park.
Staff provided update on issues surrounding the relocation/expansion of Extruders, Inc. to
Premier Business Park. There was no motion required on this item.
ITEM NO. 10- Staff Reports.
Staff had no new information to report.
ITEM NO. 11 - Executive Session.
The Wylie Economic Development Corporation Board of Directors convened into Executive
Session at 8:05 a.m. to deliberate the purchase of real property as authorized in the Texas Local
Government Code, Section 551.072.
ITEM NO. 12 - Reconvene From Executive Session.
The Wylie Economic Development Corporation Board of Directors reconvened into open session
at 8:15 a.m.
ITEM NO. 13 - Citizen Participation.
There being no citizens present, the Chairman proceeded to Item No. 14.
ITEM NO. 14 - Adjourn.
There being no further business, the meeting was adjourned at 8:19 a.m.
John /eager, President
Attest:
Samuel D. R. Satterwhite
Executive Director