MINUTES

SUNNYVALE 4A DEVELOPMENT CORPORATION

REGULAR MEETING

SEPTEMBER 21, 2006

7:00 P.M.

THE SUNNYVALE 4A DEVELOPMENT CORPORATION MET IN REGULAR SESSION ON SEPTEMBER 21, 2006 AT 7 P.M. IN THE COUNCIL CHAMBERS OF THE SUNNYVALE TOWN HALL, 127 COLLINS ROAD, SUNNYVALE, TEXAS UNDER V.T.C.A., GOVERNMENT CODE SECTION 551.041. THOSE PRESENT WERE:

CHAIRPERSON BILL WHITEHURST

MEMBER PAT WILEY

MEMBER JIM WADE

MEMBER BRAD BARTON

MEMBER LAWRENCE BOYD

1. CALL MEETING TO ORDER

Chairperson Whitehurst called the meeting to order at 7:05 p.m.

2. ADMINISTER OATH OF OFFICE TO ALL BOARD MEMBERS

Kathryn Dewey, Notary Public, administered the oath of office to all Board members, Bill Whitehurst, Jim Wade, Brad Barton, Lawrence Boyd and Pat Wiley who were appointed by the Sunnyvale Town Council on August 28, 2006

3. APPROVAL OF MINUTES

A. REGULAR MEETING OF AUGUST 3, 2006

Motion was made by Member Wade to approve the minutes of August 3, 2006. The motion to approve was seconded by Member Boyd. The motion carried.

4. PUBLIC COMMENT PERIOD: PERSONS MAY ADDRESS THE SUNNYVALE

4A DEVELOPMENT BOARD ON ITEMS NOT ON THE AGENDA. PLEASE

OBSERVE THE TIME LIMIT OF THREE (3) MINUTES. CORPORATION AND

IT'S MEMBERS CANNOT COMMENT OR DELIBERATE ITEMS OF THE

PUBLIC COMMENT.

There were no public comments.

5. DISCUSSION/ACTION ITEMS:

A. PRESENTATION BY TERRY MILLICAN ON THE TOWN SANTIARY

SEWER PLAN AND RELATIONSHIP OF THAT PLAN TO THE

REQUESTED ASSISTANCE BY ROBERT PAREDES FOR THE COLLINS

CORNER DEVELOPMENT.

Terry Millican, Town Engineer, gave a presentation to the Board on the proposed improvements to the sanitary sewer system that was prepared for budget purposes a

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Sunnyvale 4A Development Corporation

September 21, 2006

Page 2

couple of years ago. He stated that this presentation was given to help the Board understand the needs of the Town and the request for assistance by Mr. Paredes for his new development at SH352 and US Hwy 80. Discussion followed.

Member Wade asked if Mr. Millican would give the Board an estimate of the costs for the Paredes project. Mr. Millican said that the projection as presented to him showed an estimate of $199K, but he thought construction costs would be approximately $173K with a 10%-12% increase for engineering.

Robert Paredes stated that they owned the 18 acres under consideration. He said they would pay for the waterline construction and asked for help on the sewer line to finish the project. He stated that they had received approvals for the project on Monday, September 18, 2006.

Motion was made by Member Wade to ask Attorney McCool to draft an economic agreement for Robert Paredes project Collins Corner in the amount of $175,000. The motion to draft was seconded by Member Barton. The motion carried unanimously.

B. PRESENTATION BY TERRY MILLICAN ON STATUS OF BRIDGE

ENHANCEMENTS FOR COLLINS/80 BRIDGE

Terry Millican described the bridge enhancement project costs for a project within the scope of the Town's budget. He stated that the original figures presented from TxDot were approximately $59 million and had been discussed down to about $18.6 million. He said that the intention was to build a nice looking adequate bridge.

Mr. Millican presented a computer presentation of the proposed bridge model. He gave a cost estimate "guess" share that would be 1/12th of the total plus the enhancements or about $1.67 million dollars with about another $300,000 needed for the traffic signals and lighting. He said that the project should be sent for bids in late 2007 and expected to take 1 year to 1-1/2 years for construction.

C. PRESENTATION BY DAVID RAINS OF PROPOSED UPDATE AND

REVISED PROJECT FOR NEW HOPE CENTER AND REQUEST FOR

ASSISTANCE.

David Rains gave an update of New Hope Center planned for Belt Line Road at Town East Blvd. He stated that a major retailer had contracted with the center for the corner location. He discussed the design and phases for the building. Mr. Rains presented a slide show of his project. He said that currently the tax bases to the Town/ISD and County is $26,986 prior to development and after development for Town/ISD was estimated at $412,648. Discussion followed regarding the project infrastructure costs and water retention options.

Member Barton asked Pam Mundo to do a comparison of the tax revenues from this project and Rob Paredes project.

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Sunnyvale 4A Development Corporation

September 21, 2006

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Chairperson Whitehurst stated the Member Boyd needed to leave the meeting for a prior engagement. He did so at 8:15 p.m.

David Rains gave a return on investment for his project. He stated that the developer didn't give an opportunity to discuss many alternatives for the sale. He said that the lack of infrastructure on the corner makes the project nearly impossible. His request was to have Phase 1 and a commitment for Phase 2 or he would have to "kill" the contract for the sale.

Member Wiley asked how long it would be before the national retailer would be ready to build. Mr. Rains said that he expected 120 days at the minimum for the sale then maybe a month additional for permits.

Member Barton asked Pam Mundo if the national retailer would be making an economic request as well as Mr. Rains. Mrs. Mundo said that the Board could always say no.

Member Wade stated that he would like to see something happen at this corner. He said that the Town had some decisions to make regarding development. He stated that he liked the underground electricity, but not the price. He said that he did not want to see an above ground water retention system.

Mr. Rains stated that he would like to request $634,000 for Phase 1 if electrical was built underground or to request $360,000 Phase 1 if electrical was built above ground. Member Wade asked if this was for the entire 8-acre tract. Mr. Rains said it was for the entire tract.

Chairperson Whitehurst told Mr. Rains that there was no hesitancy to help with his project, but asked for time to consider the impacts of underground vs. above ground electric.

Member Wade asked if Mr. Rains needed a commitment tonight. Mr. Rains said that he has about 108 days and was fully confident that the project would close.

D. CONSIDER AGREEMENT TO TERMINATE ECONOMIC DEVELOPMENT

AGREEMENT WITH RAINS OVER TEXAS, LP

Attorney McCool gave the Board a resolution and formal agreement to terminate the existing economic development agreement with Rains over Texas, LP.

Motion was made by Member Barton to terminate the economic development agreement with Rains Over Texas, LP. The motion to terminate was seconded by Member Wiley. The motion carried unanimously.

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Sunnyvale 4A Development Corporation

September 21, 2006

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E. DISCUSSION OF RECENT AMENDMENTS TO SUNNYVALE 4A

CORPORATION BYLAWS.

Attorney McCool explained the recent amendments passed by the Sunnyvale Town Council. He stated that the new amendments allow a Board member to only serve 3 (2-year) terms then a 1-year break is required.

F. CONSIDERATION OF ADOPTION OF A STRATEGIC PLAN FOR

ECONOMIC DEVELOPMENT FOR 2006-2007

Pam Mundo gave the Board considerations for a 2006-2007 strategic plan.

G. CONSIDERATION OF ADOPTION OF A BUDGET FOR 2006-2007

Pam Mundo discussed the budget figures for the 2006-2007 fiscal year. She reviewed revenues, expenses and commitments. She stated that now was the time to start discussing leveraging the funds available to the Board.

Member Wade asked to reduce the expenditures down to the level of revenues. He stated he was not in favor of approving an unbalanced budget.

Motion was made by Member Wade to adopt the budget for the new fiscal year 2006-2007 as presented with an amendment to the capital improvements line item from $250,000 down to $205,650, approving a budget of $445,000. The motion to adopt was seconded by Member Wiley. The motion passed unanimously.

Chairperson Whitehurst read a letter of resignation from Member Barton effective September 21, 2006.

Chairperson Whitehurst recessed the meeting for a 5-minute break at 8:55 p.m.

Chairperson Whitehurst reconvened the meeting at 9:00 p.m.

6. EXECUTIVE CLOSED SESSION

A. PURSUANT TO SECTION 551.087 OF THE TEXAS GOVERNMENT CODE

TO DISCUSS AND DELIBERATE COMMERCIAL OR FINANCIAL

INFORMATION FROM A POTENTIAL BUSINESS PROSPECT THAT THE

BOARD IS SEEKING TO LOCATE OR EXPAND IN THE TOWN; TO

DELIBERATE THE OFFER OF FINANCIAL OR OTHER INCENTIVE TO A

BUSINESS PROSPECT.

Chairperson Whitehurst adjourned into executive session at 9:00 p.m.

B. PURSUANT TO SECTION 551.071 OF THE TEXAS GOVERNMENT CODE

TO CONSULT WITH THE ATTORNEY FOR THE SUNNYVALE 4A

DEVELOPMENT CORPORATION ON MATTERS FOR WHICH THE

ATTORNEY'S DUTIES CONFLICT WITH THE TEXAS OPEN MEETINGS

ACT.

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Sunnyvale 4A Development Corporation

September 21, 2006

Page 5

Chairperson Whitehurst reconvened the meeting into open session at 9:27 p.m.

7. CONSIDER ANY ACTION AS A RESULT OF THE EXECUTIVE SESSION

None taken.

8. UPDATES ON ECONOMIC DEVELOPMENT ACTIONS BY PAM MUNDO

None given.

9. UPDATES OF INFORMATION FROM THE 4A ATTORNEY G. WALT MCCOOL

None given.

10. ADJOURN

Chairperson Whitehurst adjourned the meeting at 9:26 p.m.

____________________________

Chairperson, Bill Whitehurst

ATTEST:

__________________________

Kathryn Dewey, Administration

A TAPE RECORDING OF THIS MEETING IS ON FILE AT TOWN HALL. THESE MINUTES ARE CONDENSED THEREFROM