Min - Economic Development Corporation - 2005 - 06/15 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
REGULAR MEETING
June 15,2005
Board
Staff
Guests
Kurt Kizer
Charisse Canfield
Nick Kovach
Tim Wood
Jennifer Grimm
Chris Golgert
Carl Clemencich
Dan Bowman
Amy Monier
Ken Falk - Absent
Philip Williams
Maxine Sweet - Absent
Steve Rodgers
Jerry Cooper
Bill Adams
William Dahlstrom
Doug Harden
Mark Walker
Call to Order and Announce a Ouonun Present
With a quomm of the Board present, the Regular Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by President Kun Kizer at 6:05 p.m. on Wednesday, lune 15,
2005 at the AEDC Office. The following items were discussed:
Approve Minutes of the May 18 2005 Regular Meeting and the May 27 2005 Special Called Meeting
of the AEDC Board of Directors.
The minutes of the May 18, 2005 Regular Meeting and the May 27, 2005 Special Called Meeting of
the AEDC Board of Directors were approved as submitted on a motion by Carl Clemencich, seconded
by Tim Wood.
Convene into Closed Executive Session.
The Board convened into closed executive session at 6:06 p.m. to deliberate commercial and economic
incentives supporting commercial development in the Montgomery Farm Garden District.
Reconvene into Regular Session
The Board reconvened into regular session at 8:00 p.m.
Consider and take Action for the Approval of Incentives Supporting Commercial Development in the
Montgomery Farm Garden District
The Montgomery Farm Garden District, the commercial portion of the Montgomery Farm
Development located at the southwest comer of Bethany Drive and US 75, consists of approximately
92 acres and contains space for retail, office, hotel and a wellness center. The preliminary designs for
the garden district are consistent with the design of the overall conservation -oriented Montgomery
Farm Development.
Allen Economic Development Corporation
Regular Meeting, June 15, 2005
Page 2
Philip Williams, Emerson Partners, appeared before the Board to request incentives to support the
project. In addition to AEDC incentives to offset infrastructure costs, Williams requested the AEDC
make a recommendation to Allen City Council for the formation of a Tax Increment Financing (TIF)
Zone. The requested TIF would be a "Pay As You Go" TIF, providing funds to the developer once
they are generated from the payment of ad valorem taxes following the construction of the buildings.
Williams described the development as a "suburban lifestyle center," containing residential areas with
easy access to retail, hotel and office areas. Extensive planning work has gone into designing a
conservation -oriented development that will contain amenities that go beyond the requirements of the
City of Allen Land Development Code, including extra trails and green -spaces.
The residential portion of the Montgomery Farm Development is already underway and several high-
end retailers have made commitments to occupy space in the Garden District. Williams informed the
Board that the level of incentives would impact the number and quality of the amenities included
within the development.
On a motion by Tim Wood, seconded by Carl Clemencich, the Board approved offering an AEDC
incentive grant for the reimbursement of infrastructure -related expenses in the Montgomery Famm
Garden District, with payments to be based on 50% of the sales tax generated annually in the
development (not including the hotel portion) for 10 years. The Board further approved a
recommendation to the Allen City Council for the formation of a TIF that would return 50% of the
incremental increase in the real property ad valorem taxes genemted within the development (not
including the town homes) for a 10 year period. The Board also authorized the AEDC subcommittee to
negotiate the AEDC incentive contract with Emerson Partners and directed the subcommittee to
include a requirement in the contract for AEDC Board approval of the final architectural, landscaping
and lighting designs for the development.
Consider and take Action Re¢ardine Compliance Status of Contemoorary Title Solutions
Mark Walker, Contemporary Title Solutions, appeared before the Board. Walker informed the Board
that the company had experienced some difficulties in obtaining their licensing that have now been
resolved. The delay had a serious effect on their hiring. Given their current rate of hiving, however, the
company expects to add approximately 24 employees within the next year.
Contemporary Title Solutions is a wholesale title company currently leasing 19,832 square feet in the
Allen Tech Center at 500 W Bethany Drive for its regional corporate office. To help facilitate the
company's original move to Allen, the AEDC had offered an economic development incentive grant in
an amount not to exceed $54,467 to offset telecommunication infrastructure costs associated with the
retrofit of the space.
The company completed the retrofit of the space and collected $44,787 of the incentive grant
(approximately 82%). Walker stated they do not anticipate there will be any additional costs submitted
for reimbursement.
The company's incentive contract includes a clause requiring them to create and maintain 40
employment positions at the premises within 12 calendar months from the date of the certificate of
occupancy. The deadline for meeting this employment requirement was May 7, 2005. The company
currently has 12 fulltime employees in Allen, one in California and is in negotiations with a potential
employee in New York.
Allen Economic Development Corporation
Regular Meeting, June 15, 2005
Page 3
Walker requested the Board consider either lowering the employee requirement or giving an extension
of the time for the company to meet its employment requirement.
On a motion by Carl Clemencich, seconded by Kurt Kizer, the Board approved extending the time for
the company to meet its employment requirement until May 7, 2006 and lowered the employment
requirement to 36 employees.
Consider and take Action on a Recommendation to the Allen City Council for Distribution of
Hotel/Motel Tax Revenues that will be Available during Fiscal Year 2005-2006
On a motion by Tim Wood, seconded by Carl Clemencich, the Board approved a recommendation for
the distribution of Hotel/Motel tax revenues for fiscal year 2005-06. The recommended distribution
was as follows:
• Allen Chamber of Commerce — $15,300 — To be used for Allen promotion and joint -tourism
related advertising.
• Allen Civic Ballet — $1,000 — To be used for guest artists and/or commissioned choreograpltic
work.
• Allen Heritage Guild — $2,000 — To be used for restoration of a historic organ.
• Allen Philharmonic Symphony — $7,500 — To be used for expenses associated with Make it a
Masterpiece and Farewell Event performances.
• Friends of the Allen Public Library — $1,000 — To be used for advertising for the Bach to Book
Series in publications outside of the DFW Metroplex.
The Allen City Council will consider the recommendation as part of the city budget process.
Review the Allen Economic Development Corporation's Preliminary Budget for Fiscal Year 2005-
2006.
Charisse Canfield and Dan Bowman presented the preliminary AEDC 2005-06 FY budget and
recommendations for adjustments to the 2004-05 FY budget.
Increases (of note) in the 2004-2005 AEDC budget accounts included:
• Direct Grants/Incentives — for the payment of incentive grants approved by the AEDC Board
during the current fiscal year.
• Ridgemont Tract —for placing electric and telecommunications lines underground and
installing the road on the northern tract.
The AEDC is increasing their marketing efforts as pan of a regional project with Frisco, McKinney
and Plano to market Collin County to firms outside the area. Jennifer Grimm requested an increase in
the AEDC Marketing Budget for FY 2005-06 to account for these additional regional marketing
expenses. The Board gave positive feedback on the idea.
Allen Economic Development Corporation
Regular Meeting, June 15, 2005
Page 4
The final budget will be presented at the July AFDC Board Meeting for approval.
Approval of AEDC Financial Reports
Dan Bowman presented the AEDC financial reports. On a motion by Carl Clemencich, seconded by
Tim Wood, 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 invited the Board to
attend the regional Intemational Council of Shopping Centers (ICSC) Conference in San Antonio on
November 1-3' and the Allen Mayor's Golf Tournament on July 8'. Board members are also invited
to sit at the AEDC's reserved table at the Allen USA Celebration on June 25'" The groundbreaking for
Hampton Inn will occur on June W and the Allen City Council will host a hearing on possible
funding mechanisms for the improvement of SH 121 on June 23'u
Jennifer distributed Millennium Business Award Nomination Forms. Carl Clemencich and Kurt Kizer
volunteered to be the judges for the Millennium Business Awards.
Charisse Canfield informed the Board that Chris Mason, broker for BSM Financial, has requested that
half of his commission payable by the AEDC be paid upon the sale of land and the other half be paid
when BSM receives a certificate of occupancy. Under the original agreement, the entire commission
would be payable upon the receipt of a certificate of occupancy. The AEDC will obligate Chris Mason
to payback any commission he receives if BSM does not receive a certificate of occupancy by a
specified deadline. The AEDC subcommittee supports the request.
Chmisse also informed the Board that Blue Star plans to appear at the AEDC July Board Meeting for
final contract approval.
Dan distributed the Final 2005 Legislative Report, updating the Board on bills that were actually
passed by the Texas State Legislature during the last legislative session.
Scheduling of Next AEDC Board of Directors Meeting_
The next Regular Board meeting was scheduled for Wednesday, July 20'" at 6:00 p.m.
Adjourn.
On a motion by Tim Wood, seconded by Carl Clemencich, the meeting was officially adjourned at
9:00 P.M.
These minutes approved this 20° day of July, 2005.
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Run Kizer, President Ken Falk, Secretary