11-21-2002 (City Council) Minutes MINUTES
Wylie City Council
Thursday, November 21, 2002 — 6:00 p.m.
Wylie Municipal Complex—Council Chambers
2000 State Highway 78 North
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Mayor Mondy called the meeting to order at 6:00 p.m.with the following Councilmembers present:
Joel Scott, Reta Allen, Eric Hogue, Merrill Young, J.C. Worley, and Chris Trout.
Staff members present were Biff Johnson, Mindy Manson, Brady Snellgrove, Barbara Salinas, Chris
Hoisted, and Sam Satterwhite.
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Councilman Hogue was asked to lead the invocation and Councilman Trout was asked to lead the Pledge of
Allegiance.
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There was no citizen participation.
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1. Hold a public hearing to allow the public presentation of evidence for or against the creation of
Reinvestment Zone No.5.
Mr. Sam Satterwhite explained to Council that City and Wylie Economic Development Corporation(WEDC)staff
have been working with Home Depot, U.S.A., Inc. representatives to develop a tax abatement package to assist
with the expansion of Home Depot's Wylie operations. Mr. Satterwhite stated that in order to offer a tax
abatement to any business entity, the lead taxing entity (the City of Wylie) must first create a reinvestment zone.
He stated that prior to the designation of the reinvestment zone, a public hearing should be held to allow any
interested person to speak and present evidence for or against the designation of the reinvestment zone. Mr.
Satterwhite stated that the public hearing notification requirements were met. Mr. Satterwhite explained that the
Council must first find that the improvements sought are feasible and will be of benefit to the zone after the
expiration of the subsequent abatement agreement.He stated that Council must also find that the designation of the
zone is reasonably likely to contribute to the retention or expansion of primary employment or attract major
investment in the zone. Mr. Satterwhite explained to Council that if the zone designation is approved, the
designation lasts for five years and may be renewed for successive periods of up to five years. He stated that the
term of the tax abatement agreement may continue for up to ten years, even if the reinvestment zone is not
renewed after the initial five year term.
The Mayor opened and closed the public hearing with no citizens coming forward to speak. There was no council
action taken.
Minutes—November 21,2002
Wylie City Council
Page 1
2. Consider and act upon issues surrounding the creation of Reinvestment Zone No.5 and the approval of
a Tax Abatement Agreement between the City of Wylie and Home Depot,U.S.A.,Inc.
Mr. Satterwhite explained to Council that Home Depot's investment in the site will be approximately$2 million in
land purchase, $4 million in real property improvements, $1 million in personal property, and $4 million in
inventory. Mr. Satterwhite stated that the WEDC is recommending 10-year tax abatement at 100%per year. He
explained that the City's guidelines only allows for a 400%tax abatement over a 5-year period for newly created
value in excess of$3,000,000. Mr. Satterwhite stated that Home Depot is committed to an added new value of at
least $7,000,000 in each year of the abatement. He stated that a mature Home Depot improvement center
generates$30-$35 million in annual sales.Mr. Satterwhite reminded Council that abatement periods in excess of
5 years must be approved by a three-quarters vote of the full City Council.
Councilman Worley made a motion to approve. Councilman Hogue seconded the motion. A vote was taken and
passed,7-0.
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• Discussion of Collin County Bond Elections
Council adjourned to work session at 6:05 p.m. Councilman Worley was excused at 6:16 p.m.
City Engineer, Chris Holsted addressed Council on two bond projects, FM 1378 and a bridge at Hooper
Road. Mr.Hoisted provided Council with a handout detailing the construction of FM 1378. Mr. Holsted
stated that the next county bond election is scheduled for October 2003. He informed Council that the
City would be able to submit one project with a 50/50 match from the County. Mr. Hoisted explained to
w.. Council that the FM 1378 construction would take approximately five years if it was included on the
county bond. There was some discussion about a tax increase to fund the FM 1378 project. Council was
generally opposed to raising taxes.
There was some discussion on the time frame of the next bond election being in nine years.
There was some discussion on the Hooper Road Bridge project. Mr. Holsted explained to Council that
the proposed bridge would be 25%Wylie, 25%Sachse, and 50%County.
Council recessed from Work Session to convene into Executive Session.
In accordance with Chapter 551,Government Code,Vernon's Texas Code Annotated (Open Meeting Act),
Section 551.071Consultation with Attorney; regarding pending or contemplated litigation; or a settlement
offer with Wylie Police Department.
Council convened into Executive Session at 6:45 p.m. with the following Council members present: John Mondy,
Reta Allen, Eric Hogue, Merrill Young, Joel Scott, and Chris Trout. Staff members present were Biff Johnson,
Barbara Salinas,Jeff Butters,and Lynn Fagerstrom.
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Council reconvened into Open Meeting at 7:01 p.m.The following action was taken.
Section 551.071 Consultation with Attorney; regarding pending or contemplated litigation; or a settlement
offer with Wylie Police Department.
Councilmen Scott made a motion to accept a settlement offer. Councilman Young seconded the motion. A vote
was taken and passed,6-0 with Councilman Worley absent.
Minutes—November 21,2002
Wylie City Council
Page 2
Section 551.074 Personnel Matters, Municipal Coart Personnel; to deliberate the appointment,
employment,evaluation,reassignment,duties,discipline,or dismissal of a public officer or employee.
No action was taken.
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Council reconvened into Work Session at 7:02 p.m. Council stated that they would discuss funding options
for the FM 1378 project with County Commissioner Jerry Hoaglund.
The meeting was adjourned at 7:11 p.m.
/i /
J hn Mondy,Mayor
ATTESST::�
C.J�.A!1 i`ig—
City Secretary
Minutes—Novem',er 21,2002
Wylie City Council
Page 3