MINUTES

SUNNYVALE 4A DEVELOPMENT CORPORATION

SPECIAL MEETING

AUGUST 23, 2007

7:00 P.M.

THE SUNNYVALE 4A DEVELOPMENT CORPORATION HELD A SPECIAL MEETING ON AUGUST 23, 2007, 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:

PRESIDENT BILL WHITEHURST

VICE PRESIDENT JIM WADE

MEMBER PAT WILEY

ABSENT MEMBER DANNY ALLEN

MEMBER LAWRENCE BOYD

· CALL MEETING TO ORDER

President Whitehurst called the meeting to order at 7:00 p.m.

· APPROVAL OF MINUTES FROM REGULAR MEETING OF JUNE 7, 2007

Motion was made by Member Wiley to approve the regular minutes of June 7, 2007. Motion seconded by Member Boyd. Motion carried 4/0.

· PUBLIC COMMENT PERIOD: PERSONS MAY ADDRESS THE SUNNYVALE 4A DEVELOPMENT CORPORATION BOARD ON ITEMS NOT ON THE AGENDA. PLEASE OBSERVE THE TIME LIMIT OF THREE (3) MINUTES. THE CORPORATION AND ITS DIRECTORS CANNOT COMMENT OR DELIBERATE ITEMS OF PUBLIC COMMENT.

There were no public comments.

· DISCUSSION/ACTION ITEMS:

1. CONSIDER APPROVAL OF AN ECONOMIC DEVELOPMENT AGREEMENT

WITH AMERICAN MARAZZI TILE, INC., INCLUDING A GRANT OF UP TO

$500,000 RELATING TO EXPANSION OF MANUFACTURING FACILITY

Walt McCool, 4A Attorney, asked the Board to consider approval of the development agreement being presented at this meeting with American Marazzi Tile, Inc. to avoid having to redraft it under requirements of a new law adopted in the last session of the legislature becoming effective on Sept. 1, 2007. He advised that there were no changes to the agreement from the copy previously discussed at the last 4A meeting. He said that if all phases of the Marazzi expansion are completed they expect a total of $68, 000,000. He stated that Phase 1 was about $46,000,000 with 57 new jobs. He advised that the building permits had been issued and work had commenced.

Discussion followed regarding the amount of the agreement and scenarios involved should non-compliance occur.

Motion was made by Member Wiley to approve Resolution 2007-08-01 with the correction on paragraph 5 changed from $195,000 to $500,000. Motion seconded by Member Boyd. Motion passed unanimously.

Minutes

Sunnyvale 4A Development Corporation

August 23, 2007

Page 2

· EXECUTIVE SESSION

1. 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.

President Whitehurst adjourned into executive session at 7:17 p.m.

President Whitehurst reconvened the meeting at 7:40 p.m.

2. 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.

· CONSIDER ANY ACTION AS A RESULT OF THE EXECUTIVE SESSION

No action taken as a result of the executive session.

· ADJOURN

President Whitehurst adjourned the meeting at 7:40 p.m.

____________________________

President, Bill Whitehurst

ATTEST:

__________________________

Kathryn Dewey, Town Secretary

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