09-07-2006 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
Thursday, September 7, 2006—6:00 A.M.
Inwood National Bank—Conference Room
200 South Hwy. 78 —Wylie,Texas
CALL TO ORDER
Announce the presence of a Quorum.
President Fuller called the meeting to order at 6:00 a.m. Board Members present were:
John Yeager, Gary Bartow, Mitch Herzog, and Merrill Young, who left at 7:00.
Staff present was Executive Director Sam Satterwhite and Administrative Assistant Gerry
Harris.
Others present were Mayor John Mondy.
CITIZEN PARTICIPATION
There being no citizen participation, President Fuller proceeded to Action Items.
ACTION ITEMS
ITEM NO. 1 — Consider and Act Upon Approval of the August 17, 2006 Minutes of
the WEDC Board of Directors Meeting.
MOTION: A motion was made by Merrill Young and seconded by Gary Bartow
to approve the August 17, 2006 Minutes of the WEDC Board of
Directors Meeting. The WEDC Board voted 5 — FOR and 0 —
AGAINST in favor of the motion.
ITEM NO. 2 — Consider and Act Upon Issues Surrounding a Loan Agreement
Between the WEDC and Brad D.Jacoby and Catherine G.Jacoby.
Staff reported that the WEDC has subordinated its interest in the Jacoby Loan Agreement
to Amegy Bank. The deadlines have been reestablished at two and four years,
respectively. Best Circuit Boards, Inc (BCB) withheld Jacoby's outstanding debt to the
WEDC of $147,649 from the sale of the building and land. The $147,649 has been
escrowed by BCB and will be returned to Jacoby should the debt be forgiven, or paid to
the WEDC should Jacoby be declared in default.
Through negotiations surrounding the $147,649, staff was able to discuss in more detail
issues surrounding Building Two and the Moulding Associates (MAI) expansion. Staff is
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September 7, 2006
Page 2 of 3
confident that Building Two will be complete within two years if not sooner. BCB is
agreeable to the construction of a fire lane on BCB property for the shared use by MAI.
MAI can expand by a maximum 32,000 square feet if BCB sells MAI 44' for a fire lane
and parking only. MAI can, and most likely will, add 108,200 square feet should the
entire property(3.2 acres)between MAI and BCB be utilized for the MAI expansion.
Staff did propose the purchase of the BCB 3.2 acres by the WEDC at a market rate, and
will be pursuing the WEDC purchase of the entire site to assist MAI expand, but
primarily to ensure that the balance of the 3.2 acres does not remain undeveloped. Board
Member Herzog commented that the WEDC should aggressively pursue the purchase of
the 3.2 acres.
Staff proposed that should terms be reached to purchase 3.2 acres from BCB, the WEDC
release the $147,649 upon substantial progress on Building Two. Substantial progress
could be identified as completion of the slab for a two-story, 40,000 square foot office
building. The Board directed staff to bring back potential terms for a renegotiated Loan
Agreement should there be substantial progress on the land purchase.
MOTION: A motion was made by Merrill Young and seconded by Mitch
Herzog authorizing staff to negotiate for the purchase of 3.2 acres
from BCB in an amount not to exceed $265,000 ($1.90 per square
foot). The WEDC Board voted 5 —FOR and 0—AGAINST in favor
of the motion.
ITEM NO. 3— Consider and Act Upon Issues Surrounding a WEDC Strategic Plan.
Staff provided copies of strategic plan proposals from TIP Strategies, Angelou
Economics, and Avalanche Consulting. The scope of work is very similar with project
costs ranging from $60,000 - $75,000. The WEDC RFP presented broad requirements
surrounding identification of existing conditions, industrial and retail target market
studies, and a recommended action plan. While all proposals addressed the industrial
market studies, staff indicated a lack of detail provided for a retail target market study by
all consultants. Following a recommendation by staff, the Board favored the proposal
presented by TIP Strategies and requested that TIP interview with the Board and provide
further information surrounding a retail component within the Strategic Plan.
MOTION: A motion was made by John Yeager and seconded by Merrill Young
to pursue the services of TIP Strategies for strategic planning
purposes. The WEDC Board voted 5 — FOR and 0 — AGAINST in
favor of the motion.
Note: Board Member Merrill Young departed at 7:00 a.m.
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September 7, 2006
Page 3 of 3
Presentation
Presentation by Mark Houser and Jeff Moore of Brown & Hofmeister, LLP.
ITEM NO. 4—Consider and Act Upon Issues surrounding WEDC Legal Services.
Staff reported that the WEDC began reviewing several legal firms capable of
representing the WEDC as a result of concerns over potential conflicts with respect to
Abernathy representing both the City of Wylie and WEDC. Of the four firms
interviewed, staff indicated that Brown & Hofrneister could provide the most expertise
and experience should the Board decide to make a change.
Mr. Herzog and Mr. Yeager were very impressed with the credentials of Mr. Moore and
Mr. Houser. Especially impressive was Mr. Moore's experience with 4A sales tax
corporations. Staff recommended that the Board maintain its relationship with Abernathy
based upon a proven working relationship, experience, and familiarity. President Fuller
believed it was in the best interest of the WEDC to wait until all members of the Board
were present to make this decision.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog
to table consideration of WEDC legal services. The WEDC Board
voted 4 —FOR and 0—AGAINST in favor of the motion.
ADJOURNMENT
With no further business, President Fuller adjourned the WEDC Board meeting at 7:53
a.m. Consensus of the WEDC Board was to adjourn.
Marvin Fuller, President
ATTEST:
Samuel D.R. Satterwhite
Executive Director