09-19-2008 (WEDC) Minutes Minutes
Wylie Econo tIC Development Corporation
Board of Directors Meeting
Friday, Septemier 19, 2008 — 6:00 A.M.
Inwood National Bank— Conference Room
200 South Hi_ Avay 78 — Wylie, Texas
CALL TO ORDER
Announce the presence of a Quopj
President Fuller called the meeting to order at 6:04 a.m. Board Members present were: John
Yeager and Mitch Herzog. Chris Seely arrived at 6:09
WEDC staff present was Exec tive Director Sam Satterwhite and Administrative Assistant
Gerry Harris.
Ex-Officio Board Members Mayor Etc Hope and City Manager Mindy Manso were present.
CITIZEN PARTICIPATION
There being o citizen participation, President Fuller proceeded to Action Items,
ACTION ITEMS
ITEM O. 1 — Consider and Act " pon Api royal of the August 15, 2008 in tes of the
WEDC goard of Directors Meeting.
MOTION: A motion was made by Mitch Herzog and secoHied by John Yeager to
approve the August 15, 2008 Minutes of tHe WEDC oard of Directors
Meeting. The WE PC Board voted 3 — FOR and 0 — AGAH ST in favor of
the motion.
ITEM O. 2 — Consider and Act Upon Approval of the August, 2008 WE IC Treasurer's
Report.
MOTION: A motion was made by John Yeager and seconded by Mitch Herzog to
approve the August 2008 WEDC Treasurer's Report, The WE IC Board
voted 4 — FOR ad AGAINST in favor of the motion.
ITEM NO. 3 — Consider and Act Upon Approval of a hi udget Transfer for the WEDC Pt'
2007 —2008 Budget.
Staff presented for review the Budget Transfer Req test. He request covered t e addition of
funds to the accounts of Salary ($4,200), Sick Leave (51.00), Hospital & Life Insurance
(S4,900), Car Allowance ($100), Medicare ($300). and Dues & Subscriptions ($650). The
WE ID C — Min tes
September 19, 2008
Page 2 of 4
accounts of Postage and ngineering were reduced by S1,400 and $8,751 respectively to offset
the budget transfers.
mo ION: A motion was ,ade by Mitch Herzog and seca ded by Chris Seely to
approve the Budget Transfer Request for the FY 2008 — 2009 WEDC
Budget. The WE IC oard voted 4 — FOR and 0 — AGAI, ST in favor of
the motion.
ITEM NO. 4 — Consider and Act Upon Issues Surrounding a Development Agreement
Between the WEDC and Bayco Products, Inc.
Staff summarized correspondence dated 8-11-08 fr m Bayco requesting a one year extension to
its 5-year agree ent with the WE•C. Per Section 2 (g) of the Development Agreement, Bayco
"shall have paid property taxes for the previous five (5) years of the eement to the Wylie
Independent School District and the City of Wylie in an amount of ot less than $657,000
provided however, the five year period above shall be extended at the sole discretion and
approval of the WE PC in the event the State legislatively lowers the cap on the tax rate which
Wylie and/or WISD may assess.
In 2005, the WISD tax rate was $1.817. Via structural changes to the public school finance
syste by the Texas Legislature, the c rrent WISD tax rate is $1.39. While Bayco continues to
meet its minimu valuation requirements of $6.4 million, it is projected by Bayco that tax
payments to the City and WISD will only be $600,986 at the end of the Agreement resulting in a
shortfall of$56,014.
Staff indicated that Bayco failed to take into account that the City has raised its rate from 0.733
to 0.8989 and the WISI may be raising its rate from 1.39 to 1.51. Assuming the WISD Tax
Ratification Electia passes and there are no tax rate decreases for the City of Wylie and WISD
in 2010, cumulative tax payments are projected to be $682,301 or $25,301 in excess of the
minimum corn lit ent identified in the Development Agreement.
While Bayco was informed as to WEDCs analysis of its cumulative tax payments, Bayco
requested that the extension be considered at this time due to the projected cum lative taxes paid
being so close to the minimum. Based upo staffs' analysis of cumulative tax payments thro gh
2010, staff recommended that the WEDC ' oard of Directors deny Bayco's request for
extension to the terms of the Development Agreement between Bayco and the WE' C.
The oard of Directors asked that this item be tabled until Feces laer when all tax rates will be
settled and a decision could be made bases upon the actual and not projected tax rate.
MOTION: A motion was made by John Yeager and secon ded by Mitch Herzog to table
the item u til the December meeting. The WEDC :oard voted 4 — FOR and
0—AGAINST in favor of the motion.
WEDC Minutes
September 19, 2008
Page 3 of 4
ITEM NO 5 — Consider and Act Upon the Lease of WEDC Facilities Located at 207-''
211, and 210 Industrial Court.
Staff presented information concerning the "break even" amount of each building in consie ering
the rental amounts. After discussion, Mr. Fuller stated that he would be a_,eeable to renting the
buildings on a long time lease of five years if renters were willing to pay arket rates. Mr.
Herzog stated that a three year lease would be more aiH enable to him if the rate was $7.00 to
$8.00 per square foot.
The Board took no action on this item.
ITEM Ni, 6 —Staff Update: g eview Staff Activities and Ongoing WEDC Projects.
But-ger King/Popeye's: The el tanks that were found on site were removed with no further
action required by the EPA. Platting issues are being resolved and plans have been submitted to
Inspections for review. The WEDC will be reimbursing Sun Holdings for demolition costs
following approval of a building permit and substantial commencement of construction.
Ballard and BrO Wn Street: The property owner of t e lot at ;row and Ballard has agreed to
demolish their single family st cture. Staff is still under the assu ption that the asking price is
$80,000.
Saw-Tech: In October, the WEDC will be considering the second of three grant payments to
SawTech Corporation in the amo nt of$24,805. SawTech lust establis a minimum appraised
value of$610,319 for all real and personal property as determined by •the Collin County Central
Appraisal District.
Marketing: Staff is developing a tri-fold marketing brochure to promote WE 111 C activities. The
first targeted audience •for distribution of these materials will be to the local business market
through a series of distribution events at local banks and Chamber of Commerce events. Staff
will also work with the Wylie ews to publicize updated WEDC goals and objectives coinciding
with the completion of the WEDC Amual Repo in December. Staff will also work toward
developi g a comprehensive advertising campaign to targeted industries in the north Texas
region and updating the WEDC web site. As industrial projects have slowed, and our fiat re
retail growth predomi antly limited to Woodb .dge Crossi,g, the WE IC ust focus more on
proactively reaching outside of o ur com i nity for ew commercial projects.
M-Tex Industrial Supply: Located at #9 egency Drive, M-Tex is currently listed for sale at
$875,000. The two acre lot is valued at $408,139 on the tax roles and ' as an 11,670 square foot
structure. M-Tex is currently constructing a new facility in Lavon. Staff reminded the Board
that the WE IC spent a great deal of time and effort attempting to keep -Tex iil Wylie. A site
was deli ed for M-Tex withi, Pre ier Plaza with the 100% masonry requireme t being the
primary deterrent for developi g a Wylie location.
Personnel: As of September 22 d oard Member Seely will be employed by Teag ' ,all
Perki 5 1 their Dallas office.
WEDC — Minutes
Septe her 19, 2008
Page 4 of 4
EXECUTIVE SESSIO
The WE NC Board of D irectors convened into Executive Session at 7:06 am.
I. Consider and Act LT son Issues Surrounding the Provision of Economic Assistance to
Ardetech Infustries, Inc. as Authorized in Section 551.087 (Economic Development.
Negotiations) of the Local Gove ent Code, Vernon's Texas Code Annotated (Open
Meetings Act).
RECONVENE INTO OPEN NIEETI LG
The WEDC Board of Directors reconvened into open session at 7:14 a.m.
ADJOU MENT
•With no fiirther business, Preside t Larvin Fuller adjourned the WEDC Board meeting at 7:15
a.m.
Marv* Fuller, resident
ATTES
Samuel D.R. Satterwhite
Executive Director