SEPTEMBER 26, 1996
SCHERTZ DEVELOPMENT FOUNDATION
BOARD OF DIRECTORS' MEETING
MINUTES
September 26, 1996
Pat's Place South
Item #1 Call to Order: The meeting of the Schertz Development
Foundation Board of Directors was called to order at 12:09 p.m.
by President, Tom Weaver.
Those present:
Tom Weaver
Lew Borgfe1d
Kerry Sweatt
Jackie Jones
Mark Marquez
Ear1een Ehlers
- Executive Director
- Recording Secretary
Item #2 Approval of Minutes of August 22, 1996: Mr. Sweatt
made the motion to approve the minutes as written, which was
seconded by Ms. Jones. Motion carried unanimously.
Item #3 Update on SAC Building Corp. and Countryside Ceramics:
The Board went into executive session at 12:12 p.m. Board
reviewed SAC letters with responses regarding compliance of
covenants. Mark Marquez explained letters and timing of such.
Options the Board could take were discussed. Mr. Marquez
recommended turning everything over to the attorney for further
action. Ms. Jones stated that SAC's September 19, 1996,
response needed to be addressed. Mr. Marquez said that there
were no major violations of the other owners that justified
sending letters for compliance. He said that the City of
Schertz has lots that have mulch that is available to citizens
free of charge on one of the lots. Mr. Sweatt interjected
that if the Board thought that was a problem he would see that
the mulch was moved to another location.
Ms. Jones asked about Countryside Ceramics and when they were
due to build. Mr. Marquez said their deadline had already
passed and SAC's would be October 20, 1996, but that
Countryside Ceramics was complying with all other covenants.
Mr. Sweatt said that he would like to repurchase those lots
where SAC is not in compliance. Mr. Weaver said that the
Board has two actions it can take. Litigation and to buy back
the two lots.
Mr. Sweatt said that if they buy back lots 25 & 26 they would
separate SAC's property; they own 23, 24, 25, 26, 28, & 29
with some interest in lot 27. Ms. Jones said she would like
to let the attorney look at all of the information and make a
recommendation. Mr. Marquez said he would send all the
information to Mr. Spain and ask him to make a recommendation.
Mr. Sweatt said that Mr. Marquez should convey to Mr. Spain
the exact order of how the Board feels things should be
handled. Ask for a recommendation, but that the Board would
like to buy back the lots first, then if needed temporary
restraining order (TRO) and injunction.
Mr. Marquez moved the discussion to Countrywide Ceramics
stating that after meeting with them they indicated they were
not financially able to build and would not be able to for at
least three years. Mr. Marquez had offered a year extension
on the option to repurchase. Mr. Marquez covered the options
he gave them as outlined in the memo to the Foundation dated
September 20, 1996. He indicated that the Foundation would be
financially strapped if they were to buy back the property,
especially in light of pending problems with other owners.
Mr. Sweatt said the Board would not have to exercise the
option to rebuy, but that they could ask for right of first
refusal.
Mr. Borgfeld expressed his concern that buying SAC's lots back
but not Countryside Ceramics might be a problem. Ms. Jones
said that with Countryside the Board has the "option" to
repurchase, not an obligation to do so. Mr. Weaver agreed
also stating that there is nothing wrong with exercising rights
if you have a problem. He also stated that it is the full
judgment of the Board to exercise the option to repurchase or
not. Mr. Borgfeld said he felt the Board needs to repurchase
the lots from SAC, but that it also needs advise of the
attorney as far as where they stand on involvement of the
covenants.
Mr. Sweatt said to pursue repurchase of the lots from SAC and
to let the Countryside Ceramics ride until further discussion.
Mr. Marquez said that we need to find out if it will be
considered a waiver if the Board does not seek to take the
option now. Mr. Sweatt said that if the Board can let the
thing with Countryside go for now that would be appropriate as
long as that does not mean that the Board waives its right to
exercise the option in the future, two or three years from now.
Mr. Marquez said he would work with Countryside Ceramics to
sell the property. Mr. Borgfeld said that any future owners
would be bound by the restrictions in place and that it would
show in the Title exactly what those restrictions are, in this
case that the owners are not in compliance with building within
the two year period and that future buyers would have to build
as soon as possible.
Mr. Borgfeld also noted that the Board acting as the
architechtural committee needed to be recorded by the County
when possible. Mr. Marquez said he would take care of that.
Mr. Sweatt said that even though it was not yet recorded they
could act because it had been formally noted and approved.
Mr. Weaver noted that executive session ended at 12:29 p.m.
Item #4 Financial Report - Mr. Marquez gave a verbal report
stating that the Foundation has about $51,000 on its books.
$37,000 draws interests and is in CD's. The balance of about
$10,000 or so is available cash. Mr. Marquez said that he
would have a report available at the next meeting.
Item
have
#5 Proposed Budget FY 96-97 - Mr.
this ready for the next meeting.
Marquez said he would
He said after speaking
to Mr. Spain he would put an information packet together,
along with a proposed budget and submit it to Board members
prior to the next meeting.
Item #6 Nominations for New Board Members. Mr. Sweatt made
the nomination of Mr. Don Jeffreys, pastor of the First Baptist
Church. Also nominated were Mr. Ed Harris of Fibre Art and
Mr. Tony Moreno as alternate. Mr. Marquez will follow up by
contacting nominees and asking if they would like to sit on the
Schertz Development Foundation Board of Directors.
Item #7 Selection of New President - Mr. Sweatt nominated Ms.
Jones as President, Mr. Borgfeld seconded the nomination which
carried unanimously.
Item #8 Board Member Comments - none.
Item #9 Executive Director's Comments: Mr. Marquez
congratulated Ms. Jones on her appointment. The attorney
invoice was discussed noting that the Foundation paid $205.
Mr. Marquez covered the letter from the City of Schertz asking
for donations for the Christmas tree. Mr. Sweatt abstained
from discussion because of his City affiliation. Mr. Marquez
talked about the IRS letter and the problem with the auditor
and that the Foundation might think about adding the Foundation
under the City's engagement letter to the auditor. Last item
discussed - McKenney letter outlined. At the last Foundation
meeting, Mr. McKenney had asked that his building plans be
reviewed and approved. The plans were approved with two
conditions, landscaping and an explanation of how the rear of
his new building would be screened were to be addressed. Mr.
Marquez received a written response regarding landscaping and
screening which clearly satisfied the Foundation's criteria.
Mr. Marquez answered Mr. McKenney's request for approval
stating that he is in compliance and ok was given to proceed.
Item #10 President's Comments - None.
Item #11 Set Next Meeting Date - October 10, 1996, noon,
location to be announced.
Item #12 Adjourn - Meeting was adjourned by Mr. Weaver.
Thomas Weaver
President
~~
Recording Secretary