Min - Economic Development Corporation - 2005 - 05/27 - Special CalledALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
SPECIAL. CALLED MEETING
May 27, 2005
Board
Staff Guests
Kurt Kizer
Charisse Canfield Fred Gans
Maxine Sweet
Dan Bowman
Carl Clemencich
Jennifer Grimm - Absent
Tim Wood - Absent
Ken Fulk - Absent
Call to Order and Announce a Quorum Present
With a quorum of the Board present, the Special Called Meeting of the Allen Economic Development
Corporation (AFDC) was called to order by President Kurt Kizer at 7:33 a.m. on Friday, May 27, 2005
at the AEDC Office. The following nems were discussed:
Consideration of a Subordination Agreement and Modification of Restriction Aereernent with
Southwest Securities Bank for R-75. L.P. Relating to Project Security.
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 the project have been fully executed.
The lender has requested modification to the Economic Development Agreement and the Restriction
Agreement. Pete Smith, AEDC attorney, provided a written summary of the documents and has
approved the contract language. The contract provides for the following:
If R-75, L.P goes into default, the lender will have an additional 18 months beyond the
timeframe required for construction in the contract to construct the building with all the
required restrictions. The AEDC would then pay the lender the incentive grant.
The lender is liable up to $200,000 for placing the electric and telecommunications utilities
underground.
The lender has no obligation under the default provision in the contracts, which requires that
the AEDC be repaid the difference between the 2004 Collin County Appraisal District value of
the land and the sale price of the land should R-75, L.P go into default.
Fred Gans agreed to sign a Personal Guaranty Agreement to cover the default provision in the
contracts. Gans also informed the Board that the principals of BSM Financial have signed a Personal
Guaranty Agreement which holds them personally liable to occupy the building and fulfill other
commitments made to R-75, L.P.
On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board approved the Modification of
Economic Development Agreement, Modification of Restriction Agreement and Personal Guaranty
Agreement as presented.
Allen Economic Development Corporation
Special Called Meeting, May 27, 2005
Page 2
Adloum.
On a motion by Kurt Kizer, seconded by Maxine Sweet, the meeting was officially adjourned at
7:40 a.m.
These minutes approved this 15' day of June, 2005.
Kurt Kizer, President Ken Folk, Secretary