Min - Economic Development Corporation - 2005 - 05/18 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
May 18, 2005
Board
Staff Guests
Kurt Kizer
Charisse Canfield David Hoover
Tim Wood
Jennifer Grimm
Ken Fulk
Dan Bowman
Carl Clemencich
Maxine Sweet
Call to Order and Announce a Ouomm Present
With a quorum of the Board present, the Regular Meeting of the Allen Economic Development
Corporation (AFDC) was called to order by President Kurt Kizer at 6:09 p.m. on Wednesday, May 18,
2005 at the AEDC Office. The following items were discussed:
Anprove Minutes of the April 20.2005 Regular Meeting of the AEDC Board of Directors
The minutes of the April 20, 2005 Regular Meeting of the AEDC Board of Directors were approved as
submitted on a motion by Maxine Sweet, seconded by Tim Wood.
Convene into Closed Executive Session.
The Board convened into closed executive session at 6:24 p.m. to deliberate commercial and economic
incentives supporting development in Allen Station Business Park.
Reconvene into Regular Session
The Board reconvened into regular session at 7:13 p.m.
Consider and take Action for the Approval of Incentives Supporting Development in Allen Station
Business Park.
Allen Station Business Park is a 102 -acre master -planned park located east of US 75 on the north side
of Exchange Parkway. The park is currently planned to contain 1.4 million square feet of
office/manufacturing space when completed. Two buildings have been developed in the park by
Trammell Crow containing a total of 220,000 square feet. When a developer constructs buildings in
the park, they are required to install a portion of the road infrastructure at an additional expense. This
puts land in the park at a competitive disadvantage with other developable land in the area and makes
it relatively more expensive to develop. The AEDC previously gave incentives to Trammell Crow to
assist with road infrastructure costs on the existing portion of Allen Station Parkway.
In order to keep up with the growing demand by residents for services, the City of Allen is currently in
the process of planning for the construction of a unified City Service Center. The City recognized the
need for a unified service center several years ago and has been considering several Allen locations.
The top two sites selected by the city are the I8 -acre AEDC-owned tract north of the FSEFinisar
Allen Economic Development Corporation
Regular Meeting, May 18, 2005
Page 2
building and Allen Station Business Park. City staff recognizes that Allen Station Business Park makes
the most sense for the facility, given the low level of visibility from major roads and separation from
residential and other development.
David Hoover, City of Allen Planning Director, appeared before the Board to request assistance in
developing the infrastructure in Allen Station Business Pak, including drainage and the extension of
Allen Station Parkway and Noble Drive. The infrastructure cost of developing in Allen Station
Business Park is the largest obstacle to the City constructing the service center in the park. Hoover
explained that the service center would be constructed on approximately 15 — 20 acres abutting the
westem and northern edges of the business park, adjacent to Cottonwood Creek.
This location would place the facility toward the back of the park, north of the existing buildings, and
provide low visibility from Exchange Parkway. Solid screening would also be provided around the
property.
The service center would include administrative offices, vehicle storage and equipment storage.
Hoover also mentioned the possibility of including an approximately 5 -acre police driving range on
the site. The Board recognized that the ultimate decision on whether a driving range is included in this
development will be made by the Allen City Council.
City staff anticipates that the service center will cost approximately $12 million to construct, although
no architectural work has been completed on the facility yet. The City currently has funds available to
purchase the land in 2005. The City would potentially hold a bond election in 2006, sell bonds in lane
of 2007 and start construction on the facility in lune of 2008.
The City is requesting $2.2 million in infrastructure incentives to support the development of Allen
Station Business Park. This would include the extension of Allen Station Parkway and Noble Drive.
The City has created several development scenarios for the extension of Allen Station Parkway. One
option involves curving the road to allow the City to construct both the service center and the proposed
police driving range on a 20 -acre tract on the west side of the road. Hoover mentioned the possibility
of constructing the driving range behind the service center, adjacent to the creek.
The Board took into consideration that the cost of installing infrastructure in the park raises the land
cost in Allen Station Business Park. Incentives would be required to lower the land cost and spur
development in the park. Buz Franklin, Colliers International (representing the park's landowner),
submitted a letter of support stating their willingness to hold the land cost at a reasonable rate if the
infrastructure is installed, thus making the park more attractive to users. The Board also discussed that
the alternative location for the service center is the highly visible, 18 -acre AEDC-owned tract with
frontage on US 75, which would not be a preferable location for a city service center.
On a motion by Ken Falk, seconded by Carl Clemencich, the Board approved offering up to
approximately $2.2 million for construction of Allen Station Parkway from its existing boundary to the
northern boundary of Allen Station Business Park, subject to the Board approving the road alignment
and architectural designs for the service center. The Board further agreed that any portion of Allen
Station Drive constructed by the AEDC prior to the construction of the City Service Center would help
to fulfill the AEDC's obligation to construct Allen Station Parkway. The AEDC will only be obligated
to construct any portion of Allen Station Parkway from its existing boundary to the northern boundary
of Allen Station Business Park that has not been constructed prior to the construction of the service
center.
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Regular Meeting, May 18, 2005
Page 3
Consideration of a Subordination Aereement with the Construction Lender for R-75. L.P. Related to
Proiect Securitv.
Fred Gans, Cornerstone Development (R-75, L.P.), is in the process of finalizing his financing for the
construction of a two-story, 50,000 square foot office building on 4.099 acres of the AEDC-owned
Ridgemont tract. The AEDC Board has approved final landscaping, architectural and lighting plans for
the project. The Purchase and Sale Agreement, Restriction Agreement, Incentive Agreement and
Escrow Agreement for this project have been fully executed.
Fred Gans' lender informed the AEDC staff that they will not provide a loan on the project unless the
AEDC subordinates itself to the lender due to the language in the Restriction Agreement. A contract is
currently being drafted by the lender's attorney, providing that if Cornerstone Development goes into
default, the lender will be required to construct the building within 18 months and the AEDC will pay
the lender the incentive grant.
The AEDC Board discussed the option of holding a Special Called Meeting to address the issue of a
subordination agreement with Project Security's lender once the contract has been drafted and
reviewed by Pete Smith, AEDC attorney. The general consensus of the Board was to hold a Special
Called Meeting on March 27, 2005 at 7:00 a.m.
Approval of AEDC Financial Reports.
Dan Bowman presented the AEDC financial reports. On a motion by Ken Fulk, seconded by Cut
Clemencich, the Board approved the AEDC financial reports as presented.
Discuss Administrative and Marketine Activities of the AEDC
Jennifer Grimm updated the Board on marketing activities of the AEDC and informed the Board that
plans for the AEDC's involvement at the International Council of Shopping Centers (ICSC) are
moving forward. ICSC is the largest gathering of retail shopping center professionals in the world and
will occur from May 22n° — May 25'" Meetings have been scheduled with Trademark, General
Growth, Blue Star and other companies. It is expected that four major retailers will announce their
decisions on whether to locate to Allen.
Jennifer informed the Board that the groundbreaking for Presbyterian Gardens will occur on June 3'x
and the Hampton Inn Groundbreaking is also upcoming in June.
Dan distributed additions to the 2005 Legislative Update, updating the Board on current legislation
pending in the Texas State Legislature.
Charisse informed the Board that Philip Williams, Montgomery Farms, will appear before the Board in
June to request incentives for the development of Market Street Allen. It is anticipated that the
combined incentive package from the community will total approximately $12 million.
Scheduling of Next AEDC Board of Directors Meeting.
The next Regular Board meeting was scheduled for Wednesday, June 15x' at 6:00 p.m.
Allen Economic Development Corporation
Regular Meeting, May 18, 2005
Page 4
Adioum.
On a motion by Carl Clemencich, seconded by Tim Wood, the meeting was officially adjourned at
7'45 p.m.
These minutes approved this 15' day of June, 2005.
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Kurt Kizer, President Ken Fulk, Secretary