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06-16-2021 (WEDC) Minutes Minutes • Wylie Economic Development Corporation Board of Directors Meeting June 16,2021 —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 8:36 a.m.Board Members present were John Yeager,Melisa Whitehead, Gino Mulliqi, and Tim Gilchrist. Ex-Officio Members Mayor Matthew Porter and City Manager Chris Hoisted were present. WEDC staff present included Executive Director Jason Greiner and Senior Assistant Rachael Hermes. INVOCATION& PLEDGE OF ALLEGIANCE Board Member John Yeager gave the invocation and led the Pledge of Allegiance. COMMENTS ON NON-AGENDA ITEMS Marvin Fuller was present to address the Board regarding the tenure of John Yeager and wished to thank him for his many years of service to the community and WEDC. 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 a 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 May 19,2021 Minutes of the WEDC Board of Directors Meeting. B. Consider and act upon approval of the May 2021 WEDC Treasurer's Report. Board Action A motion was made by John Yeager, seconded by Gino Mulliqi, to approve the Consent Agenda as presented.A vote was taken,and the motion passed 5-0. REGULAR AGENDA 1. Consider and act upon a recommendation for appointment to the Comprehensive Plan Advisory Committee. Staff Comments Staff discussed the recent creation of the Comprehensive Plan Advisory Committee at the June 8th City Council Meeting. Mayor Porter discussed the intent of receiving input from representatives from six organizations as well as citizens directly appointed by Council to discuss overall land use for the City of Wylie. Mayor Porter discussed the time commitment necessary to fulfill the appointment. Staff expressed openness to serve on the CPAC if the Board was unable to make the time commitment. Board Action A motion was made by Gino Mulliqi, seconded by John Yeager, to recommend Jason Greiner to the Comprehensive Plan Advisory Committee.A vote was taken,and the motion passed 5-0. WEDC—Minutes June 16, 2021 Page 2 of 4 . � DISCUSSION ITEMS DS1. Discuss issues surrounding lease of Wylie EDC office space. Staff discussed the lease of WEDC office space at 250 S. Hwy 78. Since the original 5-year lease,the WEDC Board chose to renew the lease for an additional 5-year term in February of 2016 and then opted to extend the lease for an additional 12-month term on January 20,2021. Staff has contacted Mr.Baron Cook, who was present at the meeting, to extend the lease option for the additional 12-month term through January 2022. Staff discussed the need to determine any future terms of the lease as WEDC considers the FY 2021-2022 Budget Process. The Board discussed long-term planning and the option to lease space within future developments, co-locate with the Chamber of Commerce,or office in City Hall.The Board discussed a need for signage at the current WEDC office location.Mr.Cook stated that there is currently an available site for a monument sign,but he understood that the previous Executive Director did not see a need for signage at the location. Staff noted that potential development immediately adjacent to the office might cause the existing access drive to move. The development would also need to be finalized before a determination of the exact sign location can be made.The Board inquired about the availability of office space at City Hall.City Manager Hoisted stated that space could be available at the Board's direction. The Board referred to Staff for their opinion. Staff discussed the importance of being part of the central business district and recruiting Class A office space into the market. Staff discussed the Board's previous discussions regarding the importance of autonomy between the city and WEDC and noted the potential for co-location with the Chamber of Commerce. Board Member Yeager discussed the value of separation from the city and visibility in the community. Mayor Porter discussed the long-term goal of locating in Class A office space or centrally locating near downtown Wylie. Board Member Mulliqi recommended renewing for 12-24 months to allow for time to consider future developments. The Board discussed varying opinions regarding the issue of signage at the current location and Mr. Cook was agreeable to considering the option of splitting the cost of a monument sign with a longer-term lease. The Board agreed with the preference to extend the lease for an additional 24 months,through January 2024,and evaluate options for signage after securing the lease. DS2. Discuss issues surrounding Wylie EDC loans. Staff presented current loans held by WEDC and noted the need to review the loans and debt as we enter the budgeting process for FY21-22. Various scenarios were presented to the Board to provide insight into the variety of annual payment options, interest rates,and terms and the impact of those figures on current and future budgeting. Staff discussed options for refinancing current debt and borrowing additional funds for future projects. Staff noted discussions with American National Bank and Government Capital. President Dawkins recommended revising loan requests to reflect monthly payment options at a fixed rate. The Board requested that staff provide additional information at the next meeting to have'like for like' comparisons. DS3. Discuss issues surrounding the FY 2021-2022 Wylie EDC Budget. President Dawkins noted that this Item would be tabled until after Executive Session. DS4. Staff report: WEDC Property Update,Downtown Parking,WEDC Office/Insurance Claim, Engineering Report,Upcoming Events,New Board Member Handbook,and WEDC Activities/Programs. Staff noted that sales tax revenue allocations were up 38.43%for May and 21.4%for June. WEDC—Minutes June 16, 2021 Page 3 of 4 Scheduling for demolition on E. Brown Street will take place soon after current tenant vacates, and additional demolition will be budgeted for the next budget year. Staff noted issues surrounding mowing on WEDC-owned properties and throughout the city due to the frequent rain. Construction is complete from the recent flooding at the Wylie EDC offices. Quotes for furniture replacement have been received. The KCS permit application for construction of the waterline extension on FM 544 is pending review and staff is hopeful that construction can begin within the next month.Cost estimates have been updated for pending FM 544 real estate transactions and details are being finalized on the Brown& 78 median improvements. Manufacturing Day and Small Business Week activities in the month of May were successful and a Press Release will be added to the website to highlight Economic Development Week. Staff noted the current Marketing Calendar and highlighted upcoming events and activities. Staff noted the need for a Special Called WEDC Board Meeting in the first week of July to discuss the FY21-22 Budget. President Dawkins expressed his gratitude and appreciation to John Yeager for his service to the WEDC Board.Board Member Yeager reflected on his time on the Board and noted some of the projects that he was grateful to have worked on during his tenure with WEDC as well as his optimism for the future of the WEDC. Fellow Board Members expressed their appreciation to Mr.Yeager for his commitment to the community. EXECUTIVE SESSION Recessed into Closed Session at 9:41 a.m.in compliance with Section 551.001,et.seq.Texas Government Code, to wit: Sec.551.072. DELIBERATION REGARDING REAL PROPERTY; CLOSED MEETING. ES1. Consider the sale or acquisition of properties located at FM 544 and Cooper,Jackson and Oak, Regency and Steel, State Hwy 78 and Alanis, State Hwy 78 & Ballard, State Hwy 78 and Birmingham,State Hwy 78 and Brown. Sec.551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS; CLOSED MEETING. ES2. Deliberation regarding commercial or financial information that the WEDC has received from a business prospect and to discuss the offer of incentives for Projects:2017-10a,2018-9b,2020-11b, 2021-2a,2021-2b,2021-4a,2021-4b,2021-4c,2021-4d,and 2021-5a. RECONVENE INTO OPEN SESSION Take any action as a result from Executive Session. President Demond Dawkins reconvened into Open Session at 10:43 a.m. and moved back to DS3. DISCUSSION ITEMS 1 DS3. Discuss issues surrounding the FY 2021-2022 WEDC Budget. 4� WEDC—Minutes June 16, 2021 Page 4 of 4 Staff continued the discussion from the last WEDC Board Meeting related to the FY 21-22 Budget while noting the figures from the updated May 2021 Monthly Financial Report, as these figures can be used to provide the most up-to-date estimates of the beginning fund balance for FY 21-22. Staff highlighted the projected ending revenue balance of$3.157 MM. The projected expenses for the remainder of the FY were reviewed, as well as sales tax projections, resulting in a projected beginning fund balance of $1.255 MM for FY 21-22. Sale of property and real estate transactions that are pending will affect the final figures and staff projects anticipated revenues for next year at $7.3MM. Personnel Services anticipates a 2% salary increase for existing employees and the addition of an Admin 1 position. Operating Expenses saw no noticeable increase apart from a slight increase in insurance costs and Incentives came in just under the current amount due to the completion of a couple of current agreements. Staff projected an increase to Special Services expenses due to clearing/mowing costs associated with the NTMWD water line relocation and staff hopes to have updated cost estimates soon. Demolition expenses for Kirby were noted.Advertising expenses were highlighted,with efforts being made to increase the social media presence in the next FY. Community Development saw a slight increase to fund a VIP Industry Dinner and Travel, Training & Recruitment expenses reflect one additional ICSC Conference taking place in December. Dues & Subscriptions saw a slight increase to fund additional tools that will be available to the public related to online training programs and GIS property search tools.Debt Service figures were reviewed,with debt refinancing and the increased loan amount of$8MM at 4%being calculated for the next fiscal year. Principal reduction was also plugged into the equation, with staff being mindful that these figures will be dependent upon the Board's direction related to the loans. No funds were budgeted for,Land Purchase into the next fiscal year. Infrastructure Projects were reviewed,with staff anticipating additional cost estimates at the next Board Meeting. With no major changes, staff anticipates an ending fund balance of$1.8MM for FY 21-22. Board Member Yeager noted that he would like to see local banks included in the process of refinancing if they would like to offer their services and President Dawkins expressed his agreement. FUTURE AGENDA ITEMS There were no Items requested for inclusion on future agendas. ADJOURNMENT With no further business,President Dawkins adjourned the WEDC Board meeting at 10:59 a.m. Demond Dawkins,President ATT . : Jason G iner Execu ' Direc or