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12-09-2019 (WEDC) Agenda Packet NOTICE OF MEETING ECONOMIC DEVELOPMENT CORPORATION Special Meeting Agenda December 9, 2019—7:30 A.M. WEDC Offices—Conference Room 250 South Highway 78 —Wylie, Texas Todd Wintters President Demond Dawkins Vice President John Yeager Secretary Gino Mulliqi Treasurer Melisa Whitehead Board Member Mayor Eric Hogue Ex-Officio Member Chris Hoisted,City Manager Ex-Officio Member Samuel Satterwhite Executive Director Jason Greiner Assistant Director Angel Wygant Senior Assistant In accordance with Section 551.042 of the Texas Government Code, this agenda has been posted at the Wylie Municipal Complex, distributed to the appropriate news media, and posted on the City Website: www.wylietexas.gov within the required time frame. CALL TO ORDER Announce the presence of a Quorum. INVOCATION & PLEDGE OF ALLEGIANCE CITIZEN PARTICIPATION Residents may address the WEDC Board regarding an item that is or is not listed on the agenda. Residents must provide their name and address. The WEDC Board requests that comments be limited to three (3) minutes. In addition, the WEDC Board is not allowed to converse,deliberate or take action on any matter presented during citizen participation. ACTION ITEMS I. Consider and act upon approval of the November 20, 2019 Minutes of the WEDC Board of Directors Meeting. DISCUSSION ITEMS II. Discussion of issues to be placed on future WEDC Board Meeting agenda (no substantial consideration/discussion allowed). EXECUTIVE SESSION If during the course of the meeting covered by this notice, the Wylie Economic Development Corporation(WEDC) should determine that a closed or executive meeting or session of the WEDC Board, or a consultation with the attorney for the City, should be held or is required, then such closed or executive meeting or session or consultation with attorney as authorized by the Texas Open Meetings Act, Texas Government Code§551.001 et. seq., will be held by the WEDC Board WEDC—Agenda December 9, 2019 Page 2 of 2 at the date, hour, and place given in this notice as the WEDC Board may conveniently meet in such closed or executive meeting or session or consult with the attorney for the City concerning any and all subjects and for any and all purposes permitted by the Act, including, but not limited to, the following sections and purposes: Texas Government Code Sections: §551.071 —Private consultation with an attorney for the City. §551.072—Discussing purchase, exchange, lease or value of real property. §551.074—Discussing personnel or to hear complaints against personnel. §551.087—Discussing certain economic development matters. §551.073—Discussing prospective gift or donation to the City. §551.076—Discussing deployment of security personnel or devices or security audit. Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). • Evaluation of WEDC Assistant Director 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 2019-5b • Project 2019-11 e RECONVENE INTO OPEN MEETING Take any action as a result from Executive Session ADJOURNMENT CERTIFICATION I certify that this Notice of Meeting was posted on this 5th day of December 2019 at 5:00 p.m. as required by law in accordance with Section 551.042 of the Texas Government Code and that the appropriate news media was contacted. As a courtesy, this agenda is also posted on the City of Wylie website: www.wylietexas.gov. Stephanie Storm,City Secretary Date Notice Removed Minutes Wylie Economic Development Corporation Board of Directors Meeting Wednesday, November 20, 2019—7:30 A.M. WEDC Offices—Conference Room 250 South Highway 78 —Wylie, Texas CALL TO ORDER Announce the presence of a Quorum President Todd Wintters called the meeting to order at 7:33 a.m. Board Members present were John Yeager, Demond Dawkins, Gino Mulliqi, and Melisa Whitehead. Ex-officio members Mayor Eric Hogue and City Manager Chris Hoisted were present. WEDC staff present was Executive Director Sam Satterwhite, Assistant Director Jason Greiner, and Senior Assistant Angel Wygant. INVOCATION & PLEDGE OF ALLEGIANCE Board Member Dawkins 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 October 16,2019 Minutes of the Wylie Economic Development Corporation (WEDC) Board of Directors Meeting. MOTION: A motion was made by John Yeager and seconded by Gino Mulliqi to approve the October 16, 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 October 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 $308,324 representing an increase of 12.86% over the same period in 2018 and 13.95%higher for the Fiscal Year to date. WEDC—Minutes November 20, 2019 Page 2 of 4 Staff further pointed out that during the month of October the WEDC purchased 302 N. 2nd Street from Mrs. Kreymer and completed draw#10 in the amount of$187,658.20 to fund the purchase. MOTION: A motion was made by John Yeager and seconded by Demond Dawkins to approve the October 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 issues surrounding a Use Restriction Agreement between the WEDC and SCSD-Finnell, Ltd. Staff reviewed for the Board that the WEDC had previously entered into a Use Restriction Agreement with SCSD-Finnell, Ltd. to encourage the development of restaurant uses at the then proposed 10,000 square foot multi-tenant center which now houses Schlotzsky's Austin Eatery among others uses. The terms of the Agreement call for Finnell to develop at least 5,300 square feet of space with restaurant uses which has been accomplished. Should Finnell have failed to meet that requirement within 30 months of the effective date (6-21-18), Finnell would have been required to pay a penalty of $125,000 to the WEDC. To further comply with the Agreement, Finnell must provide the WEDC with Compliance Documentation no less than six (6) months following the issuance of the final Certificate of Occupancy which meets the cumulative square footage requirement which will be on or about June 1, 2020. Finnell is developing a similar project and desirous of using the Schlotzsky's center as collateral. With the WEDC Use Restriction Agreement secured by a Performance Deed of Trust and Finnell pledging the Schlotzsky's property as collateral, the WEDC's lien on the Schlotzsky's project would be superior to Independent Bank's position which is financing the new project. The WEDC put the six (6) month requirement in the Use Restriction Agreement to keep a restaurant use from opening and closing almost immediately due to some unforeseen circumstance. With the tenant finish out being so costly($120 per square foot for Schlotzsky's and$90 per square foot for Fish-n-Tails), staff commented that the likelihood that either restaurant use closes within 6 months is remote at best. Further, should the Board agree to subordinate its lien, it would obviously not be extinguished and have value should an event of default occur within the next 6 months. Staff proposed that the WEDC Board of Directors authorize the WEDC President to execute a Subordination Agreement which would subordinate the WEDC's interest to Independent Bank. MOTION: A motion was made by John Yeager and seconded by Gino Mulliqi to authorize the WEDC President to execute a Subordination Agreement to Independent Bank for the benefit of SCSD-Finnell, Ltd. The WEDC Board voted 5—FOR and 0—AGAINST in favor of the motion. City Manager Chris Hoisted left the meeting at 7:55 a.m. and returned during Executive Session at 8:58 a.m. WEDC—Minutes November 20, 2019 Page 3 of 4 DISCUSSION ITEMS ITEM NO. 4—Review and discussion of issues pertaining to WEDC Bylaws. Staff informed the Board that the Wylie City Council has directed City staff to develop an Ordinance which limits the number of consecutive teluis a Board/Commission member can serve to two consecutive terms. The issue is important to Council due to the overwhelming public interest to serve and the limited number of positions available. The Ordinance,as currently drafted, which restricts the number of consecutive terms that can be served does not apply to the WEDC or the 4B Parks & Recreation Board as they are governed by separate Bylaws. Staff wanted to ensure that the WEDC Board was aware of Council direction on the matter and encouraged the Board, at a minimum, to discuss the pros and cons of term limits for the WEDC Board. Currently, Board Members can serve an unlimited number of consecutive tei ins so long as Council reappoints the individual with an expiring term(Section 4.06). Other issues within the Bylaws which have come up in discussion are that the qualifications may be too vague (Section 4.02 - c) and the possibility of relaxing of residency requirements for Board Members (Section 4.02 - 1 & 2). During Board discussion, Board members indicated that a review of the Bylaws was in order but stressed that given the length of project implementation, strategic nature associated with approved projects, and complexity of issues surrounding project analysis, longer tenure of WEDC Board members was important. In addition, the WEDC Board is a governing Board as opposed to an advisory Board which makes continuity within the Board make-up a crucial element. The Board indicated they would like to participate in a work session with Council to explore these issues and work with Council to identify solutions that might allow for greater participation by Boards/Commissions applicants while still preserving the needs of the WEDC activities. Mayor Hogue committed to schedule a work session with Wylie City Council and WEDC Board Members and Staff in the near future. ITEM NO. 5 — Review issues review issues surrounding WEDC Performance Agreement Summary, Hotel Occupancy Tax, WB Real Estate Contract, TML Economic Development Conference, thoroughfare impact fees, environmental activity summary, Brown & 78 redevelopment update, 544 Gateway redevelopment update, and regional housing starts. Staff updated the Board on WEDC projects and activities. 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. WEDC—Minutes November 20, 2019 Page 4 of 4 EXECUTIVE SESSION Recessed into Closed Session at 8:52 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 &Ballard • Jackson & Oak Section 551.087 (Economic Development) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). Deliberation regarding commercial or financial infoiuiation that the WEDC has received from a business prospect and to discuss the offer of incentives for: • Project 2018-2a • Project 2019-5b • Project 2019-11a • Project 2019-lib • Project 2019-11c • Project 2019-11d Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code Annotated(Open Meetings Act). • Evaluation of WEDC Assistant Director Mayor Hogue left the meeting at 9:16 a.m. and did not return. RECONVENE INTO OPEN MEETING Take any action as a result from Executive Session The WEDC Board of Directors reconvened into open session at 9:54 a.m. and took no action. ADJOURNMENT With no further business, President Wintters adjourned the WEDC Board meeting at 9:54 a.m. Todd Wintters, President ATTEST: Samuel Satterwhite, Executive Director Wylie Economic Development Corporation MEMORANDUM TO: WEDC Board of Directors FROM: Sam Satterwhite, Executive Director SUBJECT: Future Agenda Items DATE: December 5, 2019 Issue Discussion of issues to be placed on future WEDC Board Meeting agenda (no substantial consideration/discussion allowed). Analysis During this Discussion Item, Board Members will have the opportunity to propose that an issue be placed on a future agenda for consideration. The Board will note that no substantial consideration/discussion is allowed so that there will not be a violation of the Open Meetings Act which requires discussion/action items be placed on Agendas with specific language as to what will be discussed. For example, the above language will allow a Board Member to present a request for a certain item to be placed on an agenda for consideration, but not the ability for the same Board Member to argue the merits of the issue. Conversely, another Board Member may not discuss the merits as to why they may not want that particular item on a future agenda. Recommendation This Item is for discussion only and will provide direction to Staff. No formal action is allowed.