Min - Economic Development Corporation - 2005 - 03/16 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
March 16, 2005
Board
Kurt Kizer
Tim Wood
Ken Fulk
Carl Clemencich
Maxine Sweet
Staff
Charisse Canfield
Jennifer Grimm
Dan Bowman
Call to Order and Announce a Ouorum Present
Guests
David Hoover
Steve Massey
Fred Gans
Mark Stahl
Matthew Alexander
David Baldwin
Ind Heflin
B.A. Cullum
Raquel Morton
With a quomm of the Board present, the Regular Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by President Kurt Kizer at 6:10 p.m. on Wednesday, March
16, 2005 at the AEDC Office. The following items were discussed:
Approve Minutes of the February 16 2005 Regular Meeting of the AEDC Board of Directors
The minutes of the February 16, 2005 Regular Meeting of the AEDC Board of Directors were
approved as submitted on a motion by Carl Clemencich, seconded by Tim Wood.
Presentation by Steve Massey City of Allen Community Services Director, on PUC/ERCOT Proposed
Nodal Electric Market.
Steve Massey, City of Allen Community Services Director, gave a brief presentation to the Board on
the Electric Reliability Council of Texas (ERCOT) proposed Nodal electric market. ERCOT controls
the electric transmission grid for the majority of the State of Texas.
If implemented, Nodal pricing would allocate the cost of inefficiencies in transmission in the electric
power grid controlled by ERCOT to the most congested areas on the grid. Given the electric
transmission congestion in the DFW Region, Nodal Pricing would raise the cost of electricity usage in
the region and could impact the AFDC's ability to recruit companies that are high-energy users to the
area.
The Cities Aggregation Power Project (CAPP) Bill, legislation currently pending in the Texas State
Legislature, requires the cost of electric transmission on the electric grid controlled by ERCOT to be
spread equally throughout ERCOT. The City of Allen has passed a resolution supporting this bill.
On a motion by Carl Clemencich, seconded by Maxine Sweet, the Board approved a resolution
supporting The Cities Aggregation Power Project (CAPP) Bill, to be modeled after the resolution
previously approved by the Allen City Council.
Allen Economic Development Corporation
Regular Meeting, March 16, 2005
Page 2
Consider and take Action for the Approval of the Landscaping. Lighting and Architectural Design
Plans for the Development of The Corporate Center at Twin Creeks Located at the SEC Comer of
Watters Road and Raintree Circle.
Bruce Heller, JaRyCo, is finalizing plans with the City and was not in attendance at the meeting;
therefore, no action was taken.
Convene into Closed Executive Session
The Board convened into closed executive session at 6.55 p.m. to deliberate commercial and financial
information and economic incentives supporting the development of Star Creek (Blue Star) located at
the southwest and southeast comers of the future Watters Road and SH 121 and to discuss
development scenarios for AEDC-owned land located at the southeast comer of Ridgemont Drive and
US 75.
Reconvene into Regular Session
The Board reconvened into regular session at 10:10 p.m.
Consider and take Action for the Approval of Infrastructure Incentives Supporting the Development of
Star Creek (Blue Star) Located at the Southwest and Southeast Comers of the Future Watters Road
and SH 121.
Blue Star is developing Star Creek, a multi -use, 529 -acre development. As part of the development,
approximately 68 acres located at the southwest and southeast corners of the future Watters Road and
Ridgeview Drive have been designated for commercial development.
Blue Star representatives appeared before the Board to request incentives to support the development
of the commercial portion of Star Creek. They presented a site plan for the commercial portion of the
development that included Special Amenities that go beyond the requirements of the Allen Land
Development Code.
On a motion by Carl Clemencich, seconded by Ken Fulk, the Board approved $4 million in
infrastructure incentives to support the development of the commercial portion of Star Creek and
authorized the AEDC Board Subcommittee for the Star Creek Development, including Maxine Sweet
and Tim Wood, to negotiate the incentive contract. The Board recommended the following parameters
for the subcommittee to use in negotiating the incentive agreement:
$1.5 million paid upon the completion of Watters Road and all 4 lanes of Ridgeview Road
(Projected as payable by 1" quarter 2006).
• $1 million paid upon the opening of 200,000 square feet of tenant space
(Projected as payable by 1" quarter 2007).
• $1 million paid upon the opening of an additional 100,000 square feet of tenant space
(Projected as payable by 1" quarter 2008).
$500,000 paid upon the opening of any additional tenant space in 2008
(Projected as payable by I" quarter 2009).
Allen Economic Development Corporation
Regular Meeting, March 16, 2005
Page 3
The Board also recommended parameters for the subcommittee to negotiate the required construction
of Special Amenities included to the Star Creek site plan and presented to the AEDC Board, including:
• A feature to be constructed at the entrance to the commercial portion of Star Creek, located at
the intersection of Watters Road and SH 121.
• Intricate pavers, additional shrubbery and other added features to be located at the main
intersection on Watters Road, adjacent to the fitness facility
• Enhancements at the intersection of Ridgeview Drive and Watters Road.
• Stone enhancements to the bridge located on the southern portion of the commercial
development.
• The construction of a retention pond with a 20 -foot high fountain near the tmilhead, north of
Ridgeview Drive.
• Construction of a central fountain within a 125 -foot by 125 -foot plaza located in the center of
the commercial development, including landscaping, benches, etc. to buffer the area from the
surrounding parking lot.
• Construction and reconfiguration of the promenade leading to the central fountain.
• A green area with enhanced landscaping to be located on the north side of Ridgeview to
conceal the back of the retail development.
• Additional amenities included in the Star Creek site plan and described by Blue Star
representatives to the AEDC Board.
The recommended parameters set by the Board also included requiring that the movie theater and
fitness facility occupy space in the development and that Blue Star meet a required taxable value for
the commercial portion of Star Creek for the tax year 2007 and future years. The negotiated contract
will be brought back to the Board for final approval.
Consider Development Scenarios for AEDC-Owned Land Located at the Southeast Comer of
Rideemont Drive and US 75
The AEDC has been working with Project Security and their developer Fred Gans, Cornerstone
Development, for the construction of a two-story, 50,000 square foot office building on the southern
portion of the AEDC-owned tract at the southeast comer of US 75 and Ridgemont Drive.
Fred Gans approached the Board for assistance with several issues regarding the development of the
tract. The City of Allen is requiring that an interior driveway be constructed over the AEDC parcel to
provide access to the building on Cornerstone's property for fire protection purposes. It was previously
thought that the City would not require this drive until the northern tract was developed. The Allen
Land Development Code requires trails and sidewalks to be constructed on the floodplain portion of
the property. In addition to these requirements, the AEDC Board has required the developer to put the
electrical and telecommunication lines underground along the project's property and along the
floodplain portion of the tract.
Gans requested that the AEDC cover the additional costs that must be incurred in order to develop the
floodplain portion of the tract, including:
• The cost of putting electrical and telecommunications lines underground on the floodplain
portion of the tract.
• The cost of putting in trails required by the Allen Land Development Code on the floodplain
portion of the tract.
Allen Economic Development Corporation
Regular Meeting, March 16, 2005
Page 4
• The cost of extending sidewalks along the US 75 frontage of the floodplain portion of the
tract.
Gans also requested that the AFDC Board cover the cost of constructing the required drive over the
AEDC parcel to provide access to the budding on Cornerstone's property. He further asked for the
Board to provide a Right of First Refusal on the northern portion of the trace, retained by the AFDC, in
order to prevent a competitor from purchasing the land and constructing an office facility with a
competitive advantage.
Gans presented a revised building elevation for Board approval that included two open stairwells on
the outside of the building
On a motion by Ken Fulk, seconded by Maxine Sweet, the Board approved the following allocation of
costs between the AEDC and Cornerstone Development:
The cost of constructing the drive across the AEDC parcel will be home by the AFDC.
The cost of trails in the floodplain portion of the tract required by the City of Allen Land
Development Code will be home by Cornerstone Development.
The cost of putting electrical and telecommunications lines underground on the floodplain
portion of the tract will be home by the AEDC and the AEDC will contract with the
appropriate vendors for the work along the entire stretch with Gans/Cornerstone reimbursing
the AEDC for the portion along the building site tract.
The Board also approved a recommendation to the Allen City Council for the removal of the
requirement for Cornerstone Development to construct sidewalks along the US 75 frontage of the
floodplain portion of the tract. The Board required that Cornerstone Development make the stairwells
depicted in the building elevation fully enclosed, air-conditioned space. The Board specifically refused
to grant Cornerstone Development a Right of First Refusal on the northern tract, but agreed to keep the
developer updated on the status of the northern tract.
Approval of AEDC Financial Reports
Dan Bowman presented the AEDC financial reports. On a motion by Tim Wood, seconded by Ken
Fulk, the Board approved the AEDC financial reports as presented.
Discuss Administrative and Marketing Activities of the AEDC
Jennifer Grimm updated the Board on marketing activities of the AEDC and informed the Board that
plans for the AEDC Allies Day are moving forward.
Charisse advised the Board of the need to develop a contingency plan for what will happen in the
event 4AAB corporations are eliminated in the future. Charisse discussed the issue with the City and it
was determined that a small committee of City and AEDC representatives will work on the plan. Carl
Clemencich volunteered to work on the subcommittee.
Allen Economic Development Corporation
Regular Meeting, March 16, 2005
Page 5
Scheduling of Next AEDC Board of Directors Meeting,
The next Regular Board meeting was scheduled for Wednesday, April 20, 2005 at 6:00 p.m.
The Board discussed holding a joint Special Called Meeting with the Allen Community Development
Corporation in April to discuss the Montgomery Fann Development.
Adioum.
On a motion by Ken Fulk, seconded by Carl Clemencich, the meeting was officially adjourned at
10:28 p.m.
These minutes approved this 20' day of April, 2005.
(J
- 9 �& 4,
Kurt Kizer, President Un Fulk, Secretary