09-24-2019 (WEDC)Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Tuesday, September 24, 2019—6:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
CALL TO ORDER
Announce the presence of a Quorum
President Bryan Brokaw called the meeting to order at 7:34 a.m. Board Members present were
John Yeager, Todd Wintters, Demond Dawkins and Gino Mulliqi.
City Manager Chris Hoisted was present.
WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner,
and Senior Assistant Angel Wygant.
INVOCATION & PLEDGE OF ALLEGIANCE
Board Member Yeager gave the invocation and led the Pledge of Allegiance
CITIZEN PARTICIPATION
With no citizen participation, President Brokaw moved to Action Items.
ACTION ITEMS
ITEM NO. 1 —Consider and act upon approval of the August 21,2019 Minutes of the Wylie
Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Todd Wintters and seconded by Demond Dawkins to
approve the August 21, 2019 Minutes of the Wylie Economic Development
Corporation. The WEDC Board voted 5 —FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 2 — Consider and act upon approval of the August 2019 WEDC Treasurer's
Report.
Staff reviewed the Treasurers Report and called the Board's attention to the following highlights:
Sales Tax Receipts for September came in at $243,048 representing an increase of 13.88% over
2018 receipts. With 2 months remaining in the Fiscal Year, Sales Tax receipts are just under 15%
over FY 2018.
WEDC —Minutes
September 24, 2019
Page 2 of 5
In August the WEDC made the final payment on American National Bank Loan
#88148481(Buchanan) for property the WEDC purchased on Highway 78 and on September 2"
the WEDC made the final payment on American National Bank Loan#88158043 (K&M—Hobart)
for property purchased on Birmingham and Commerce St.
During the month of August, the WEDC paid an incentive to Mr. Patel in the amount of$11,500
for downtown parking improvements. This payment fully satisfied the WEDC's obligation under
the Performance Agreement. Additionally, the WEDC paid $31,477 in environmental clean-up
costs associated with the FM 544 Gateway site, spent $6,640 for regional advertising, in
partnership with the City of Wylie, associated with the Rodeo, and paid the earnest money and
option fee for the purchase of property located at 302 N. 2nd Street.
MOTION: A motion was made by Demond Dawkins and seconded by John Yeager to
approve the August 2019 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO.3—Consider and act upon a Second Amendment to Performance Agreement between
the WEDC and Dank Real Estate, Ltd.
Staff reminded the Board that the WEDC entered into a Performance Agreement with Dank on
October 25, 2017 for a second expansion & consolidation of Houston operations consisting of
10,140 square feet and the creation of at least eight additional full-time employees. The overall
building footprint following expansion is 20,577 square feet with a total of 33 full-time employees.
On July 18, 2018 the Board extended the term to meet all performance measures by six-months
due to a family medical emergency. The First Amendment to Performance Agreement called for
a Certificate of Occupancy (CO) no later than July 31, 2019. As staff was processing the
paperwork for Incentives, they became aware that Dank did not receive their CO until August 21,
2019. On July 1, 2019 the City performed a final inspection at which time stairway railing needed
to be installed and a final inspection from the elevator company was still required. The railing was
installed prior to July 31st but the elevator was not certified until August.
Staff(in consultation with the Building Department) was comfortable that Dank was substantially
complete on July 31st and therefore met the spirit of the Agreement. Staff presented a Second
Amendment to Performance Agreement and recommended that the Board approve waiving the
July 31, 2019 CO requirement.
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
approve a Second Amendment to Performance Agreement between the
WEDC and Dank Real Estate, Ltd. The WEDC Board voted 5 —FOR and 0
—AGAINST in favor of the motion.
ITEM NO.4—Consider and act upon a Performance Agreement between the WEDC and Cardinal
Strategies.
WEDC —Minutes
September 24, 2019
Page 3 of 5
In June of 2019, staff presented Project 2019-6a to the WEDC Board for consideration and
discussion in Executive Session. After further input from the Board at the July 17th Board Meeting,
staff took the project to City Council on July 23, 2019. In accordance with Resolution No. 2019-
17(R), the Wylie City Council authorized the WEDC to formalize negotiations with Cardinal
Strategies Holdings, LLC and enter into a Performance Agreement.
Cardinal plans to invest approximately $1.8 mm and create up to 66 full-time employees between
their construction, engineering, and environmental divisions. Staff presented a Performance
Agreement outlining a $106,800 incentive, payable over a three-year period for the creation of
approximately 66 full-time employees.
Incentive 1 provides potential funding of$32,000 and requires that company obtain a Certificate
of Occupancy (CO) no later than December 31, 2020, spend no less than $106,800 in qualified
infrastructure, maintain 30 full time employees and be current on all ad valorem taxes and other
property taxes due on the Facility by January 31st of the year after they are assessed.
Incentives 2, 3, and 4 provide payments up to $24,633 each on the 2nd, 3rd, and 4th anniversary date
of CO respectively. The incentives consist of a base reimbursement of $6,933 requiring the
company to continuously occupy the Facility, maintain a minimum employment of 30 full-time
employees, and be current on all ad valorem taxes due on the Facility by January 31St of the year
after they are assessed. An additional reimbursement incentive provides for $500 per full time
employee, up to a maximum of$18,000, for full-time employees over the minimum threshold of
30 employees required for Incentive 1 and the base reimbursement incentive.
MOTION: A motion was made by Gino Mulliqi and seconded by Todd Wintters to
approve a Performance Agreement between the WEDC and Cardinal
Strategies. The WEDC Board voted 5 —FOR and 0—AGAINST in favor of
the motion.
DISCUSSION ITEMS
ITEM NO. 5 — Review issues surrounding WEDC Performance Agreement Summary, Hotel
Occupancy Tax, environmental activity summary, Brown & 78 redevelopment update, 544
Gateway redevelopment update, FM 544 waterline, drainage issues impacting WEDC property at
FM 544 and Cooper, drainage improvements impacting WEDC property at State Highway 78 &
Marble, infrastructure improvements impacting FM 544 Gateway property, and regional housing
starts.
Staff updated the Board on WEDC projects and activities. Highlights include:
Year-over-year sales tax receipts received in June for Woodbridge Crossing increased 3.75% and
Woodbridge Centre increased 25% over the same period. With July Sales Tax earnings received
in September, the WEDC and City of Wylie obligations under the Amended Performance
Agreement have been fully satisfied. Final payment will be made to InvenTrust.
WEDC—Minutes
September 24, 2019
Page 4 of 5
The Holiday Inn Express & Suites opened to the public on September 19, 2019. And the Board
received a spreadsheet detailing Hotel Occupancy Tax receipts.
Staff provided an update of property acquisitions associated with the Highway 78 & Brown Street
project with TxDOT, Collin County, KCS, and 302 N. 2nd Street properties anticipated to close in
the coming months.
Waterline improvements for the joint project between the City and WEDC will not be complete
prior to the end of the current fiscal year. To date, the WEDC has expended $27,704 out of a
$150,000 budget. A budget amendment will be required in FY 2019 — 2020 to account for the
unexpended monies being reallocated to FY 2019 -2020.
Wylie permitted thirty-seven new homes in the month of August.
ITEM NO. 6 — Discussion of issues to be placed on a future WEDC Board Meeting agenda
(no substantial consideration/discussion allowed).
No Board Member requested that an item be placed on a future agenda.
EXECUTIVE SESSION
Recessed into Closed Session at 8:05 a.m. in compliance with Section 551.001, et. seq. Texas
Government Code, to wit:
Section 551.072 (Real Estate) of the Local Government Code, Vernon's Texas Code Annotated
(Open Meetings Act). Consider the sale or acquisition of properties located at:
• State Highway 78 & F.M. 544
• State Highway 78 & Cooper
• State Highway 78 & Ballard
• State Highway 78 & 5th
Section 551.087(Economic Development) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act). Deliberation regarding commercial or financial information that
the WEDC has received from a business prospect and to discuss the offer of incentives for:
• Project 2018-2a
• Project 2019-5b
• Project 2019-7a
Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act).
• Performance Evaluation of WEDC Staff
WEDC—Minutes
September 24, 2019
Page 5 of 5
Staff members Jason Greiner and Angel Wygant left the meeting at 9:02 a.m. and returned at
9:19 a.m.
RECONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
The WEDC Board of Directors reconvened into open session at 9:19 a.m. and took the following
action:
MOTION: A motion was made by Todd Wintters and seconded by John Yeager to
authorize the Executive Director to execute a Purchase and Sale Agreement
between the WEDC and WB Real Estate for the sale of a 1.4-acre property
located on Highway 78. The WEDC Board voted 5—FOR and 0—AGAINST
in favor of the motion.
ACTION ITEMS (cont.)
ITEM NO. 7—Consider and act upon the Election of Officers for the WEDC Board of Directors.
President Brokaw informed the Board that his family had purchased a new home that lies outside
the Wylie city limits. According to the WEDC By-Laws, Mr. Brokaw's relocation outside the
City limits requires that he resign his position on the Board. A letter has been sent to the Mayor
requesting that he inform the Boards & Commissions interview panel and request that Council
appoints a replacement member to the Board.
Considering this resignation, President Brokaw requested that the Board elect new officers.
MOTION: A motion was made by Gino Mulliqi and seconded by John Yeager to elect
the following WEDC Officers for the remainder of the 2019—2020 term year:
Todd Winners—President, Demond Dawkins—Vice President, John Yeager
— Secretary, Gino Mulliqi — Treasurer. The WEDC Board voted 5 — FOR
and 0—AGAINST in favor of the motion.
ADJOU ' MENT
With no further business, President Brokaw adjourned the WEDC Board meeting at 9:28 a.m.
Todd Wintters, President
ATTEST:
Samuel Satterwhite, Executive Director