01-24-2020 (WEDC) Minutes mutes
Wylie Economic Development Corporation
Board of Directors Meeting
Friday, January 24, 2020—7:30 A.M.
WEDC Offices—Conference Room
250 South Highway 78 —Wylie, Texas
CALL TO 0 ' I ER
Announce the presence of a Quorum
President Demond Dawkins called the meeting to order at 7:32 a.m. Board Members present were
John Yeager, Gino Mulliqi, Melisa Whitehead and Tim Gilchrist.
Ex-officio member Chris Holsted, City Manager 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 Dawkins gave the invocation and led the Pledge of Allegiance.
CITIZEN PARTICIPATION
Sam Satterwhite spoke as a citizen and expressed his thanks to the Board and the Board's through
the years for their support and vision on behalf of the citizens of Wylie. He mentioned that during
his tenure, many wonderful things had been accomplished for Wylie due in large part to the
collaborative relationship between the WEDC, Board of Directors and City of Wylie staff and
Council. Board President Demond Dawkins echoed those sentiments and thanked Sam
Satterwhite for his excellent leadership of the organization.
With no further citizen participation, President Dawkins moved to Action Items.
ACTION ITEMS
ITEM NO. 1 —Consider and act upon approval of the January 7,2020 Minutes of the Wylie
Economic Development Corporation (WEDC) Board of Directors Meeting.
MOTION: A motion was made by Gino Mulliqi and seconded by John Yeager to approve
the January 7, 2020 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 December 2019 WEDC Treasurers
Report.
Staff reviewed the Deferred Outflows and discussed current projects and Deferred Inflows for an
outstanding forgivable loan. Sales Tax receipts for December were down 2% over 2018. During
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January 24, 2020
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December the first payment for the VCP application associated with the Hwy 78&Brown property
was made.
MOTION: A motion was made by John Yeager and seconded by Melissa Whitehead to
approve the December 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 Check Set of Construction Drawings associated with
a Real Estate Contract between the WEDC and WB Real Estate, LLC.
Within the WB (Whataburger) Real Estate Contract, the WEDC required its approval of a 'Check
Set of Construction Drawings' specifically pertaining to masonry construction and the type of
stone being utilized to ensure that a 100% masonry building was constructed being that the State
of Texas recently denied cities ability to enforce masonry construction standards. Further, the
WEDC wanted to ensure that WB utilized the identical stone as used with the adjacent CFA and
Finnell projects.
Staff assured the Board that it had verified that the building is 100%masonry construction and the
required Pro Fit Alpine Ledgestone-Chardonnay is being utilized. The approval of construction
plans by the City is anticipated on or about January 17th. With a closing date scheduled for
February 13th, the WB Director of Real Estate indicated that a closing could take place as early as
January 31'.
MOTION: A motion was made by Gino Mulliqi and seconded by John Yeager to approve
the Check Set of Construction Drawings pertaining the Real Estate Contract
between the WEDC and WB Real Estate,LLC. The WEDC Board voted 5 —
FOR and 0—AGAINST in favor of the motion.
ITEM NO. 4—Consider and act upon a a Performance Agreement between the WEDC and
Savannah Woodbridge Development, LLC.
Staff reminded the Board that during Executive Session, WEDC staff presented Project 2019-lie.
Savannah requested assistance from the WEDC specifically related to fee waiver& infrastructure
assistance as related to the construction of a new 9,000 square foot medical office building with a
significant imaging component fronting Woodbridge Parkway near B&B Theatre, more
specifically 801 Woodbridge Parkway in Wylie, Texas. Savanah plans to invest no less than $4
million in the project with completion anticipated no later than August 1, 2021. The following
Agreement outlines a $90,000 incentive, payable over a two-year period requiring Certificate of
Occupancy on a 9,000 medical office building at a cost of$4 mm,a 5-year lease with Texas Health
Resources.
Should Savannah Woodbridge fail to meet the Performance Measures for Incentive No. 1, the
entire Performance Agreement is voided in advance. Further, no partial incentive payments will
be provided.
Staff projects that Savannah Woodbridge will have a real property valuation of$2.25 mm and
personal property of$1.5 million which will generate approximately$38,219 in property taxes per
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January 24, 2020
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year to the City and WISD. In addition, Savannah will generate no less than $80,000 in
development fees.
MOTION: A motion was made by John Yeager and seconded by Gino Mulliqi to approve
a Performance Agreement between WEDC and Savannah Woodbridge
Development, LLC providing for a maximum incentive of $90,000 and
further authorizing the WEDC Executive Director to execute said Agreement
subject to Wylie City Council approval. The WEDC Board voted 5 — FOR
and 0—AGAINST in favor of the motion.
Due to the potential for a conflict of interest,at 7:57 a.m.,Board Member Gilchrist excused himself
from the meeting prior to any discussion associated with Item 5.
ITEM NO.5—Consider and act upon issues surrounding a Performance Agreement between
WEDC and Avanti Windows & Doors, LLC.
Staff explained that WEDC staff has been working on Project 2019-5b since early 2019. Avanti
requested assistance from the WEDC specifically related to the equipment expansion, new job
creation, and infrastructure assistance at their facility on Hensley Lane. Avanti plans to invest over
$5 million and employ more than 100 full-time employees between their manufacturing and
installation entities. The Performance Agreement outlines a $120,000 incentive, payable over a
three-year period calling for a Certificate of Occupancy (CO) by July 1, 2020 on new equipment
with an investment of no less than $5 mm. The company is required to staff, create and maintain
no less than 42 full-time employees at CO, 70 full-time employees at the 1-year anniversary of
CO, 90 full-time employees at the 2-year anniversary of CO and 110 employees at the three-year
anniversary of CO.
In accordance with Resolution No. 2019-17(R), WEDC staff will take this project back to Wylie
City Council to request authorization to formalize negotiations with Avanti Windows & Doors,
LLC and enter into a Performance Agreement with the same.
The proposed Performance Measures and Incentive Payments are identified as follows:
MOTION: A motion was made by John Yeager and seconded by Melissa Whitehead to
approve a Performance Agreement between the WEDC and Avanti Windows
& Doors, LLC. Providing for a maximum incentive of$120,000 and further
authorizing the Executive Director to execute said Agreement, subject to
Council approval. The WEDC Board voted 4 — FOR and 0 — AGAINST in
favor of the motion.
Board Member Gilchrist returned to the meeting at 8:15 a.m. prior to discussion of Item 6.
ITEM NO. 6—Consider and act upon issues surrounding the WEDC 2019 Annual Report.
Staff presented the WEDC 2019 Annual Report to the Board for their review and approval. As
per the WEDC By-laws, the WEDC must present an annual report to the Wylie City Council no
later than January 31st of each year. The report must include, but is not limited to, a review of
expenditures made by the Board, a review of accomplishments, and a review of other than direct
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January 24, 2020
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economic development. Staff believes the Report presented meets the intent of the requirements
of the By-laws with the same being presented to the Wylie City Council on January 28, 2020.
MOTION: A motion was made by Gino Mulliqi and seconded by John Yeager to approve
the 2019 WEDC Annual Report and present the same to the Wylie City
Council for their review. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
Randy Helmberger joined the meeting at 8:33 a.m.
Tim Porter and Albert Garza joined the meeting at 8:36 a.m.
DISCUSSION ITEMS
ITEM NO. 7 — Discussion of development issues pertaining to the City/WEDC owned 544
Gateway property.
Tim Porter provided an overview and update of the complexities associated with providing a
looped water line for this property. Even with these complexities, given the good economy, this
project is a relatively small project and we are having difficulties finding contractors willing to bid
on the project. In addition, since the water line must be run under the railroad tracks, there are
KCS requirements for supervision and traffic control that must be met. Staff discussed possible
solutions to the challenges on this project.
Randy Helmberger, Tim Porter and Albert Garza left the meeting at 9:09 a.m. and did not return.
ITEM NO. 8—Review issues surrounding WEDC Performance Agreement Summary,Hotel
Occupancy Tax,SAF Holland,environmental activity summary,Brown& 78 redevelopment
update,WEDC investment property, Taylor& Son, upcoming events, and regional housing
starts.
Staff updated the Board on WEDC projects and activities.
ITEM NO. 9 — Discussion of issues to be placed on a future WEDC Board Meeting agenda
(no substantial consideration/discussion allowed).
Board Member Dawkins requested that an item be placed on a future agenda to discuss Impact
Data Source reports analyzing the economic impact of projects considered by the Board as well as
costs associated with the 544 Gateway projects for the City of Wylie and the WEDC.
EXECUTIVE SESSION
Recessed into Closed Session at 9:32 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:
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January 24, 2020
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• State Highway 78 & F.M. 544
• Jackson& Oak
• State Highway 78 & Marble
• Skyview& CR 384
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 2017-10a
• Project 2018-2a
• Project 2019-11b
• Project 2019-11c
• Project 2019 12-a
RECONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
The WEDC Board of Directors reconvened into open session at 10:17 a.m. and took the following
action:
MOTION: A motion was made by Gino Mulliqi and seconded by John Yeager to
authorized the purchase of 1.226 acres from Collin County generally located
at the southwest corner of Brown Street and State Highway 78 in the amount
of $294,000 and the purchase of 0.3 acre from Collin County generally
located at the southwest corner of Marble Street and State Highway 78 in the
amount of$75,000,further authorizing the WEDC Board President to execute
all documentation necessary to effectuate the transaction. The WEDC Board
voted 5 —FOR and 0—AGAINST in favor of the motion.
ADJOU MENT
With no further business, President Dawkins adjourned the WEDC Board meeting at 10:18 a.m.
Demond Dawkins,President
ATTEST:
Jason Gre. e Execu ve D ector