Min - Economic Development Corporation - 2005 - 04/20 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
April 20, 2005
Board
Kurt Kizer
Tim Wood
Ken Folk
Carl Clemencich
Maxine Sweet
Staff
Charisse Canfield
Jennifer Grimm
Dan Bowman
Call to Order and Announce a Ouomm Present
Guests
David Hoover
Scott Asbury
Matt Elliott
Brace Heller
Mark Stahl
Fred Gans
With a quorum of the Board present, the Regular Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by President Kurt Kizer at 6:07 p.m. on Wednesday, April
20, 2005 at the AEDC Office. The following items were discussed:
Approve Minutes of the March 16 2005 Regular Meeting of the AEDC Board of Directors
The minutes of the March 16, 2005 Regular Meeting of the AEDC Board of Directors were approved
as submitted on a motion by Maxine Sweet, seconded by Carl Clemencich.
Convene into Closed Executive Session.
The Board convened into closed executive session at 6:08 p.m. to deliberate commercial and financial
information and economic incentives supporting the recruitment of Project Bubbles to Allen.
Reconvene into Regular Session
The Board reconvened into regular session at 6:43 p.m.
Consider and take Action for the Approval of Incentives Supporting the Recruitment of Proyect
Bubbles to Allen.
Project Bubbles, a nationally known uniform company, is seeking short-term distribution space. Site
selection has been narrowed down to Allen and McKinney. The company is currently considering a
3 -year lease on the remaining 16,856 square feet of space left in the Sunbelt building at 505 Century
Parkway for a distribution/sales office. The company plans to eventually construct an approximately
55,000 — 60,000 square foot permanent facility to meet their long -tern needs.
Scott Asbury, the broker for Project Bubbles, appeared before the Board to request assistance for the
company to locate into the space at 505 Century Parkway. Project Bubbles is also considering nearly
identical space in McKinney; however, the company has a preference for Allen because of the City's
proximity to the north Dallas -Fort Worth area. The landlord for the space in McKinney is offering a
lower lease rate than that of the nearly identical Allen space. The difference in cost between the two
facilities is approximately $21,900 over the entire term of the 3 -year lease.
Allen Economic Development Corporation
Regular Meeting, April 20, 2005
Page 2
Asbury informed the Board that the president of the company is available by telephone if the Board
has any questions regarding the project. Asbury also informed the Board that while receiving
assistance from the AEDC to occupy short-term space in Allen does not guarantee that Project Bubbles
will construct their permanent facility in Allen, it would be a sign of goodwill and allow the company
to locate to their preferred area. The Board also took into consideration the fact that the space at 505
Century Parkway has been vacant for approximately 2 years.
On a motion by Kurt Kizer, seconded by Tim Wood, the Board approved $20,000 in incentives to
support the location of Project Bubbles into 16,856 square feet of space at 505 Century Parkway, to be
distributed on the following schedule:
• $10,000 upon the issuance of a Certificate of Occupancy
• $5,000 on the first anniversary of the Certificate of Occupancy
• $5,000 on the second anniversary of the Certificate of Occupancy
The incentives are contingent upon Project Bubbles signing a 3 -year lease on the facility and
maintaining 10 employees. The Board also discussed the amount of taxable business personal property
the company will be required to maintain for the 3 -year period. The Board discussed a taxable value of
$500,000 for the 3 -year period and authorized the President of the AEDC Board to negotiate with
Project Bubbles.
Bruce Heller, JaRyCo, previously presented plans for the development of the Corporate Center at
Twin Creeks that will accommodate several office/tech buildings. The AEDC Board approved a
Master Lease with a lease rate of $12.50/square foot on the first building (22,000 SF) to assist JaRyCo
in securing francmg for the development, located at the SEC comer of Watters Road and Raintree
Circle. As part of the Master Lease agreement with AEDC, JaRyCo must receive approval from the
AEDC Board on the architectural, lighting and landscaping plans for the project.
Bruce Heller, JaRyCo Development, presented the final architectural, lighting and landscape plans for
the development. The building color will be the same as that of the Atrium, located at 1333 West
McDermott Drive.
Heller updated the Board on several issues that have arisen with the City Planning Department
regarding the development. The second set of TRC comments received from the Planning and Zoning
Board requested that JaRyCo bring third party utilities such as cable television to the site. Heller
anticipates that these issues will be resolved with the City.
On a motion by Ken Falk, seconded by Maxine Sweet, the Board approved the architectural, lighting
and landscaping plans as presented by Bruce Heller, with the stipulation that the landscaping, lighting
and overall quality of the development be consistent with that of Twin Creeks Medical Center.
Allen Economic Development Corporation
Regular Meeting, April 20, 2005
Page 3
Convene into Closed Executive Session.
The Board convened into closed executive session at 7:30 p.m. to deliberate the sale of property
owned by the AEDC at the southeast comer of Ridgemont Drive and US 75 to support the recruitment
of Project Security.
Reconvene into Regular Session
The Board reconvened into regular session at 7:51 p.m.
The AEDC Board previously approved incentives to assist Project Security with 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. As part of the incentive agreement with AEDC,
Cornerstone Development must receive approval from the AEDC Board on the architectural, lighting
and landscaping plans for the project.
Fred Gans, Cornerstone Development, presented the final architectural, lighting and landscape plans
for the development. Two open-air stairwells that had been included in architectural plans presented to
the Board previously had been fully enclosed, per the Board's request. Gans informed the Board that
the landscaping and lighting plans have been designed to meet requirements act forth by the City of
Allen.
On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board approved the architectural,
lighting and landscaping plans as presented by Fred Gans with the following conditions:
• The budding must be constructed using Diamond Back Chalk, a specific combination of
shaded stones made by Lone Star Stones, Inc.
• The stucco material being used on the building must be painted to match the color of the stone
being used on the building.
• Ornamental light fixtures must be installed at the building's entrance.
The Board also suggested that Cornerstone Development consider installing tight fixtures in this
development that are similar to those used in Twin Creeks Medical Center.
Consider and take Action for the Approval of a Purchase and Sale Agreement Relating to the Sale of
Property Owned by the AEDC at the Southeast Comer of Ridgemont Drive and US 75 to R-75 L P to
Support the Recruitment of Project Security.
The AEDC Board previously approved the sale of approximately 4.099 acres of AEDC-owned land
located at the southeast comer of US 75 and Ridgemont Drive for $2.00/square foot to assist Project
Security with the construction of a two-story, 50,000 square foot office building. The president of the
AEDC Board was authorized to negotiate the purchase and sale agreement The Board approved the
Purchase and Sale Agreement on February 16, 2005; however, multiple changes have been made to the
contract since then.
Allen Economic Development Corporation
Regular Meeting, April 20, 2005
Page 4
Fred Gans, Comerstone Development (R-75, L.P.), appeared before the Board to request that one
sentence be inserted into the Purchase and Sale Agreement stating that the Economic Development
Incentive Agreement between Cornerstone Development and the AEDC must be signed before
Cornerstone Development closes on the property
On a motion by Maxine Sweet, seconded by Ken Fulk, the Board approved the Purchase & Sale
Agreement with the wording requested by Fred Gans.
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. It is expected that 110 people will attend Allies
Day. Jennifer informed the Board that the groundbreaking for the 50,000 square foot office building
being constructed by Cornerstone Development will likely occur in the next month. The Holiday Inn
Groundbreaking will occur on April 21" and the Postmaster Oath of Office Ceremony will occur on
April 28i°
Charisse updated the Board on the status of the Hotel/Motel application process, explaining that
Hotel/Motel applications go out the week of April 25' The Board Subcommittee for Hotel/Motel will
meet the week of June 6' to discuss the distribution of funds.
The determination of a location for the new CCCCD administration building is on the agenda for the
April 26'" CCCCD Board of Directors Meeting. Since it is anticipated that the issue may come to a
vote, AEDC Board members were encouraged to attend and show their support for the project locating
to Allen.
Dan distributed the 2005 Legislative Update, updating the Board on current legislation pending in the
Texas State Legislature.
Scheduling of Next AEDC Board of Directors Meeting
The next Regular Board meeting was scheduled for Wednesday, May 18'" at 6:00 p.m.
Adioum.
On a motion by Ken Fulk, seconded by Maxine Sweet, the meeting was officially adjourned at
8:27 p.m.
Allen Economic Development Corporation
Regular Meeting, April 20, 2005
Page 5
These minutes approved this 18t° day of May, 2005.
Kurt Kizer, President
Ken Fulk, Secretary