11-20-2019 (WEDC) Minutes 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 0' 1 ER
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.
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November 20, 2019
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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 terms 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 terms 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.
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November 20, 2019
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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 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 2019-11a
• Project 2019-11 b
• 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,
‘C'"
Todd Wintters,President
ATTEST:
Samuel Satterwhite,Executive Director