07-22-2020 (WEDC) Minutes Minutes
Wylie Economic Development Corporation
Board of Directors Meeting
July 22, 2020—8:30 A.M.
300 Country Club Road,Building#100
Wylie, TX 75098
CALL TO ORDER
Announce the presence of a Quorum
President Demond Dawkins called the regular meeting to order at 8:33 a.m. Board Members present
were John Yeager, Melisa Whitehead, and Tim Gilchrist. Gino Mulliqi arrived at 8:35 a.m.
Ex-officio members Mayor Eric Hogue and City Manager Chris Hoisted were present.
WEDC staff present included Executive Director Jason Greiner, BRE Director Angel Wygant, and
Senior Assistant Rachael Hermes.
Market President Anita Collins of American National Bank attended to present to the Board.
INVOCATION& PLEDGE OF ALLEGIANCE
President Dawkins gave the invocation and led the Pledge of Allegiance.
CITIZEN PARTICIPATION
With no citizen participation, President Dawkins moved to Consent Agenda.
CONSENT AGENDA
All matters listed under the Consent Agenda are considered to be routine by the WEDC Board of
Directors and will be enacted by one motion. There will not be separate discussion of these items. If
discussion is desired, that item will be removed from the Consent Agenda and will be considered
separately.
A. Consider and act upon approval of the June 17, 2020 Minutes of the WEDC Board
of Directors Meeting.
B. Consider and act upon approval of the June 2020 WEDC Treasurer's Report.
C. Consider and act upon the award of a contract to Verity Group for the purchase of a
printer in the amount of$9,300.
Board Action
A motion was made by John Yeager, seconded by Melisa Whitehead, to approve the Consent
Agenda as presented.A vote was taken, and the motion passed 5-0.
ACTION ITEMS
President Dawkins began with Action Item 6 for discussion/presentation purposes.
6. Consider and act upon approval of the FY 2020-2021 WEDC Budget.
WEDC—Minutes
July 22, 2020
Page 2 of 6
Anita Collins with American National Bank provided the Board with an overview of the
current loans held with ANB and a recap of debt service coverage ratios from 2014 to 2019.
Various principal reduction scenarios were presented to the Board for their consideration,
noting that the interest rate on the Brown/78 loan could be reduced from 5.25%to 4%with a
principal reduction payment. Reducing the interest rate would result in a savings of
approximately $400,000 and interest-only payments could be made on this loan through FY
21.Ms. Collins explained that an additional principal payment is not a requirement but would
reduce monthly debt service.Ms. Collins expressed her appreciation to the Board and
welcomed any further questions or comments.
Staff noted that reduced expenditures due to COVID-19 and sales tax revenues exceeding
initial projections during the pandemic has resulted in an increased ending fund balance.These
changes have prompted staff to look at several different scenarios for the Board to
discuss/consider related to potential principal reduction. Staff discussed various options
available to the Board on any of the three ANB loans and will update the beginning fund
balance projections as needed based upon the Board's direction.
The Board discussed the options available to them related to principal payments toward the
ANB loans and expressed interest in applying principal payment toward the Brown/78 loan
and the Wallace (Dallas/Whirlpool) loan within FY 20 with the understanding that the interest
rate on the Brown/78 loan would be reduced to 4%and interest-only payments would be made
on the Brown/78 loan for the duration of FY 21.
City Manager Chris Holsted discussed sales tax projections into FY 21. Staff discussed the
proposed FY 21 Budget that was presented to Council on 7-28-20 and noted the inclusion of a
Future Projects line item within Incentives. Staff explained that a similar line item could be
proposed for Land if the Board wished.
The Board opted to delay further consideration of Item 6 until after Executive Session to
accommodate any other necessary changes related to staff evaluations.
President Dawkins stepped out at 8:50 a.m. during discussion of Item 6.
Vice President Yeager moved to Action Item 3 to allow every Board Member to be present for
discussion of Action Items 1 &2.
3. Consider and act upon the award of a contract to EDsuite for website services in the
amount of$17,850.
Staff Comments
Staff noted that the proposed website contract covers full website redesign and technology
integration. Approval of the contract allows for the overall payment of website services to be
spread over multiple years.
Board Action
A motion was made by Gino Mulliqi,seconded by Tim Gilchrist,to award a contract to EDsuite
for website services in the amount of$17,850. A vote was taken, and the motion passed 4-0.
WEDC—Minutes
July 22, 2020
Page 3 of 6
4. Consider and act upon a Performance Agreement between the WEDC and WB Real
Estate,LLC.
Staff Comments
Following direction from the Board, staff took this item to City Council and received approval
to proceed with a Performance Agreement related to the boring under Hwy 78.
Board Action
A motion was made by Tim Gilchrist, seconded by Gino Mulliqi, to approve a Performance
Agreement between the WEDC and WB Real Estate,LLC. A vote was taken, and the motion
passed 4-0.
5. Consider and act upon a Performance Agreement between the WEDC and First Miracle,
Inc.
Staff Comments
Staff noted that this project is related to Landon Winery and assists with approximately 10%
of the overall cost for fire suppression at their downtown location. Over a ten-year period, it is
estimated that this project will generate $117,600 in overall tax revenue for the City of Wylie.
The Economic Impact Analysis(EIA)for this project indicates that for every$1 that the WEDC
invests,this developer is investing$9.97 in our community.
Board Action
A motion was made by Gino Mulliqi, seconded by Melisa Whitehead, to approve the
Performance Agreement between the WEDC and First Miracle,Inc.A vote was taken,and the
motion passed 4-0.
Vice President Yeager moved to Discussion Items.
DISCUSSION ITEMS
7. Staff report: WEDC Property Update, Regional Housing Permits, Downtown Parking,
WEDC Activities and Programs.
Staff updated the Board regarding sales tax revenues for May,stating that revenues are up 38%
over the same month last year. While May revenues include a$156k sales tax adjustment,the
revenues are still up 19%over last year after accounting for the adjustment.
WEDC Property Updates include the discussion of business assistance related to COVID and
rent concessions/adjustments for any commercial rental properties owned by WEDC. After
discussion, the Board directed staff to request a statement of loss from any tenant requesting
assistance.At that time,the Board will assess and review requests on a case-by-case basis.The
Board noted their desire for requestors to fully utilize all available assistance options and
programs prior to requesting assistance. Mayor Hogue and City Manager Hoisted discussed
assistance that has been made available through the City of Wylie, stating that City Council
has the option to reopen the application process if they choose to do so in the future.
Regarding demolition of properties, 503 S.Ballard,204 N 2nd,and 208 N 2nd are scheduled for
demolition in August. Staff noted that 504 E. Brown will be vacated as of July 31, 2020. The
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July 22, 2020
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Board discussed proceeding with demolition at 504 E. Brown to save on mobilization costs
with nearby demolition already scheduled. Staff will provide information related to any
potential cost-savings to the Board. Police and Fire will utilize the locations on 2nd Street for
training opportunities prior to demolition and have already trained at 503 S.Ballard.
Staff informed the Board that the request for use of the WEDC-owned lot at 303 E.Marble for
the FBC Rodeo has been withdrawn since the event has been postponed. Related to the
downtown parking project,staff discussed the interlocal agreement with Union Pacific and will
be more actively pursuing the agreement now that we have more favorable information
regarding sales tax revenues.
Overall project updates include a request that has been submitted to seek an amendment to an
existing Performance Agreement due to COVID-19. The item will be presented with
additional information to the Board at the next meeting.
President Dawkins returned to the meeting at 9:23 a.m. during discussion of Item 7.
Mayor Hogue left the meeting at 9:26 a.m. during discussion of Item 7.
President Dawkins moved back to Action Items.
ACTION ITEMS
1. Consider and act upon issues surrounding the Election of Officers for the WEDC Board
of Directors for 2020-2021.
Wylie City Council recently reappointed Mr. Tim Gilchrist to a three-year term as a
Member of the Wylie Economic Development Corporation Board of Directors. He has
been sworn in by the City Secretary's office.
On an annual basis and following the selection of WEDC Board Members by the Wylie
City Council,the WEDC elects officers for the upcoming year.
The current FY 2020 WEDC Board Officers are:
Demond Dawkins President
John Yeager Vice President
Melisa Whitehead Secretary
Gino Mulliqi Treasurer
Tim Gilchrist Board Member
Board Action
A motion was made by Tim Gilchrist, seconded by Gino Mulliqi, to keep the current 2019-
2020 slate of WEDC Board Officers for 2020-2021: Demond Dawkins, President; John
Yeager, Vice President; Melisa Whitehead, Secretary; Gino Mulliqi, Treasurer. A vote was
taken, and the motion passed 5-0.
WEDC—Minutes
July 22, 2020
Page 5 of 6
2. Consider and act upon the establishment of a Regular Meeting Date and Time for the
WEDC Board of Directors for 2020-2021.
Section 4.07 of the WEDC Bylaws states that the President of the Board shall set a regular
meeting date and time at the beginning of his/her term. WEDC Board Meetings are
currently set for the third Wednesday of each month at 7:30 a.m.
With officers elected via the previous Action Item, the WEDC President is required to
establish the Regular Meeting date/time.
Board Action
A motion was made by John Yeager, seconded by Melisa Whitehead,to keep the current date
and time for Regular WEDC Board of Directors Meetings as the third Wednesday of each
month at 7:30 a.m. for 2020-2021.A vote was taken, and the motion passed 5-0.
EXECUTIVE SESSION
Recessed into Closed Session at 9:38 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 &Brown
• Jackson& Oak
Section 551.074 (Personnel Matters) of the Local Government Code, Vernon's Texas Code
Annotated(Open Meetings Act).
• Evaluation of WEDC Staff
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-l 0a
• Project 2018-2a
• Project 2018-1Oc
• Project 2019-1lb
• Project 2019-12a
• Project 2020-4a
• Project 2020-4c
RECONVENE INTO OPEN MEETING
Take any action as a result from Executive Session
President Demond Dawkins reconvened into Open Session at 10:29 a.m. and the following action was
taken related to Action Item 6.
WEDC—Minutes
July 22, 2020
Page 6 of 6
6. Consider and act upon approval of the FY 2020-2021 WEDC Budget.
Following previous discussion of this Item,the Board directed staff related to specific principal
reduction payments to be made within the current fiscal year.It was determined that principal
reduction payments in the amounts of$347,040 to the Brown/78 Loan and $1,005,522 to the
Wallace (Dallas/Whirlpool) Loan are to be made within FY 20. Upon issuance of these
payments,the resulting beginning fund balance for FY 21 is projected to be $1,407,508.50.
Board Action
A motion was made by Gino Mulliqi, seconded by John Yeager,to approve the proposed FY
2020-2021 WEDC Budget reflecting a projected beginning fund balance of$1,407,508.50. A
vote was taken, and the motion passed 5-0.
ADJOURNMENT
With no further business,President Dawkins adjourned the WEDC Board meeting at 10:31 a.m.
Demond Dawkins,President
ATTEST:
Jaso-' einer, xecutive Director