10-16-2019 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Wednesday, October 16, 2019— 7:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78—Wylie, Texas
CALL TO 0 ' I ER
Announce the resence o 01.10rUM
President Todd Wintters called the meeting to order at 7:32 a.m. Board Members present were
John Yeager, 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
President Wintters gave the invocation and led the Pledge of Allegiance.
CITIZEN PARTICIPATION
With no citizen participation, President Wintters moved to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and act upon approval of the September 24, 2019 Minutes of the
Wylie Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve the September 24, 2019 Minutes of the Wylie Economic
Development Corporation. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 2 — Consider and act upon approval of the September 2019 WEDC Treasurer's
Report.
Staff reviewed the Treasurers Report and called the Board's attention to the following highlights:
Sales Tax Receipts for October were $224,875 representing an increase of 6.73% over 2018
receipts. With just one month remaining in the Fiscal Year, Sales Tax receipts are 14%higher than
2018.
WEDC—Minutes
October 16, 2019
Page 2 of 5
Staff further pointed out that during the month of September the WEDC paid an incentive to DCU
in the amount of$10,645.77, spent $4,096 for environmental services associated with the City of
Wylie lot on Kirby, and commissioned a survey for ROW abandonment near State Highway 78 &
Brown Street in the amount of$3,500.
MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to
approve the September 2019 Treasurer's Report for the Wylie Economic
Development Corporation. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 3 — Consider and act upon voiding a First Amendment to Performance Agreement
between the WEDC and Cross Development, LLC.
Staff reviewed with the Board that on June 6, 2019, the WEDC Board of Directors approved a
First Amendment to Performance Agreement which extended the deadline by which Cross had to
complete all Performance Measures from August 31, 2020 to December 31, 2020. The 120-day
extension was granted due to extreme rain delays but was contingent upon Council approval of an
identical extension to the City Chapter 380 Agreement.
On September 24, 2019 the Wylie City Council considered a 120-day extension for the Chapter
380 Agreement with Cross and decided that a 60-day extension was warranted.
So as to create a clear paper trail,staff is requesting that the previously approved First Amendment
to Performance Agreement between the WEDC and Cross Development, LLC be voided.
MOTION: A motion was made by Gino Mulliqi and seconded by John Yeager to void a
June 6, 2019 First Amendment to Performance Agreement between the
WEDC and Cross Development,LLC. The WEDC Board voted 4—FOR and
0—AGAINST in favor of the motion.
ITEM NO. 4 — Consider and act upon a First Amendment to a Performance Agreement between
the WEDC and Cross Development, LLC.
In order to be consistent with Council, staff recommended that the WEDC approve a First
Amendment to Performance Agreement that calls for a 60-day extension by which Cross
Development must complete their Performance Obligations as outlined in Section 2 of the
Performance Agreement. With the extension, Cross must now complete the terms of the
Agreement no later than October 31, 2020.
MOTION: A motion was made by Demond Dawkins and seconded by Gino Mulliqi to
approve a First Amendment to Performance Agreement between the WEDC
and Cross Development, LLC. The WEDC Board voted 4 — FOR and 0 —
AGAINST in favor of the motion.
WEDC—Minutes
October 16, 2019
Page 3 of 5
ITEM NO. 5—Consider and act upon a Performance Agreement between the WEDC and North
Dallas Wylie Land Investors, LLC.
In August 2019, WEDC staff presented Project 2019-7a to the Board in Executive Session for
direction. After further analysis at the September 24th meeting, staff took the project to City
Council on September 24, 2019 for their consideration. In accordance with Resolution No. 2019-
17(R), the Wylie City Council authorized the WEDC to formalize negotiations with North Dallas
Wylie Land Investors, LLC and enter into a Performance Agreement with the same.
North Dallas Wylie requested assistance from the WEDC specifically addressing fee waiver and
infrastructure assistance associated with the construction of a new 8,000 square foot medical office
building adjacent to the Kroger-anchored Woodbridge Centre, more specifically 731 Woodbridge
Parkway in Wylie, Texas. North Dallas Wylie plans to invest no less than $2.3 million in the
project over the next 18 months. The Performance Agreement outlines an $120,000 incentive,
payable over a three-year period. The Board requested that the Performance Agreement specify
the business operator as Orthopedic Specialist of Dallas.
MOTION: A motion was made by Gino Mulliqi and seconded by Demond Dawkins to
approve a Performance Agreement between WEDC and North Dallas Wylie
Land Investors, LLC, amended to specify that the business will be operated
by Orthopedic Specialists of Dallas, providing for a maximum incentive of
$120,000, and further authorizing the WEDC Executive Director to execute
said Agreement. The WEDC Board voted 4 — FOR and 0 — AGAINST in
favor of the motion.
DISCUSSION ITEMS
ITEM NO. 6—Discussion of issues surrounding Thoroughfare Impact Fees
Staff informed the Board that on Tuesday, October 8th the Wylie City Council directed the City
Manager to draft an Ordinance amending water, sewer, and roadway impact fees associated with
new residential and commercial construction. Consideration of said Ordinance will take place on
either October 22"d or November 12th. Staff spoke at the Meeting and encouraged Council to
consider the financial impact on new development. The request was made based upon significant
increases to roadway impact fees.
Staff detailed for the Board that a quick analysis of the shopping center use increase alone have
the fees increasing between 134% and 494% depending on which side of town the new project
takes place.
Expanding the analysis further to other uses for Roadway Impact Fees only, the following
increases apply to project specific square footage:
WEDC—Minutes
October 16, 2019
Page 4 of 5
Existing Proposed Fee Percentage
Use Sq Ft Fee West Side East Side Increase
Medical Off. 8,000 $34,272 $75,899 $192,362 121%—461%
Restaurant 7,000 $37,716 $106,911 $270,962 183% - 618%
General Office 6,000 $10,728 $23,362 $59,210 118% - 452%
Fast Food 3,500 $45,710 $125,401 $317,824 174%—595%
Shop. Center 10,000 $29,400 $68,916 $174,664 134% - 494%
Residential per dwelling $1,200 $2,715 $6,880 126% -457%
The Board expressed concern that the proposed fee increases would deter or slow commercial
investment in the community and believed that Council would benefit from seeing calculations
based on recent projects. Staff was directed to prepare this analysis for presentation to Council
prior to finalization of the ordinance. The City Manager agreed to propose a work session to ensure
that Council was fully aware of any potential impact that might result from approving the proposed
fee schedule.
ITEM NO. 7 — Review issues surrounding WEDC Performance Agreement Summary, Hotel
Occupancy Tax, environmental activity summary, Brown & 78 redevelopment update, 544
Gateway redevelopment update, FM 544 waterline, and regional housing starts.
Staff updated the Board on WEDC projects and activities. Highlights include:
The final Woodbridge Crossing sales tax reimbursement payment was made in September and will
no longer be tracked and reported in the Staff Report. Woodbridge Centre increased 25%over the
2018 receipts for the same period.
Staff provided an update of property acquisitions associated with the Highway 78 & Brown Street
project with TxDOT, Collin County, KCS. 302 N. 2nd Street property closed on October 9, 2019.
The City of Wylie went out for bid on the 1.6-acre property located at FM 544 and Kirby. One bid
was received which exceeded the appraised value, which is a requirement of the process.
Wylie permitted thirty-seven new homes in the month of September.
Demond Dawkins left at 8:54 a.m. and did not return.
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October 16, 2019
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ITEM NO. 8 — 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 8:56 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
' CONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
The WEDC Board of Directors reconvened into open session at 9:07 a.m. and took no action.
ADJOU ENT
With no further business, President Wintters adjourned the WEDC Board meeting at 9:07 a.m.
To&1 Wintters, President
ATTEST:
)
Samuel Satterwhite, Executive Director