Min - Economic Development Corporation - 2005 - 08/11 - Special CalledALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
SPECIAL CALLED MEETING
August 11, 2005
Board
Kurt Kizer
Tim Wood
Ken Fulk
Maxine Sweet
Carl Clemencich
Staff
Charisse Canfield
Dan Bowman
Jennifer Grimm
Call to Order and Announce a Oumum Present.
Guests
Peter Vargas
David Hoover
Pete Smith
Curtis Hefner
Jeffrey Turner
Blair Oden
Teddy Peinado
Brian Pierce
Jeanne Coyle
Don Powell
Tom Carter
Bill Adams
Amy Monier
Philip Williams
Bill Dahlstrom
With a quorum of the Board present, the Special Called Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by President Kurt Kizer at 6:10 p.m. on Thursday, August 11,
2005 at the AEDC Office. The following items were discussed:
Convene into Closed Executive Session.
The Board convened into closed executive session at 6:11 p.m. to deliberate the sale of property
owned by the AEDC in Millennium Corporate Center and related incentives supporting the
construction of an office building and also 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 9:33 p.m.
Consider and take Action for the Sale of Property Owned by the AEDC and the Approval of Incentives
Supporting Office Development in Millennium Corporate Center
The AEDC owns approximately 30 acres on the northwest comer of US 75 and Bethany Drive known
as Millennium Corporate Center. The AEDC has worked for several years to secure a developer to
construct a Class A office building in the park.
Allen Economic Development Corporation
Special Called Meeting, August 11, 2005
Page 2
Representatives from Duke Realty appeared before the AEDC Board to request incentives to help with
the development of a speculative office development in Millennium Corporate Center. Duke Realty is
a vertically integrated development company that has constructed over 8 million square feet of
commercial space in the Dallas/Fort Worth area, of which 97% is leased.
Duke submitted several scenarios for development of an office building in Millennium Corporate
Center for the AEDC Board's consideration. One scenario is based on the AEDC building as originally
designed by BOKA Powell and the others are based on modifications to that design. Modifications
included the use of pre -cast material for construction of the building, using a concrete frame instead of
a steel frame and having a 4:1000 parking ratio.
Duke representatives informed the Board that they can be flexible in working with the AEDC on the
specifics of the development and another building design. Duke Realty would like to develop the
entire business park and envisions the fully developed park containing approximately 696,712 SF of
office space in four buildings ranging from 4-8 stories.
The item was tabled until the AEDC Board can hear from other parties based on a motion by Maxine
Sweet, seconded by Tim Wood.
Consider and take Action for the Approval of Incentives Supporting Commercial Development in the
Montgomery Farm Garden District
The Montgomery Farm Garden District is the commercial portion of the Montgomery Farm
Development located at the southwest comer of Bethany Drive and US 75. The Garden District
consists of approximately 64 acres (exclusive of greenbelts) and contains space for retail, office, hotel
and a wellness center. The project is designed as a lifestyle center with the inclusion of residential
above the retail and office.
The AEDC previously approved an infrastructure grant to support the commercial development and
approved a recommendation to the Allen City Council for the approval of the formation of a Tax
Increment Financing District with the reimbursement of 50% of the increase in ad valorem value in the
TIF zone over a 10 -year period.
Representatives from Trademark and Emerson Partners appeared before the AEDC Board to request
the reconsideration of the approval for a recommendation to the Allen City Council for incentives to
be offered for development within the Montgomery Farm Garden District.
Tom Carter, Trademark, explained that incentives totaling approximately $32 million are required
from the City of Allen, Allen Economic Development Corporation and Allen Community
Development Corporation in order for this project to be developed. Approximately $28.7 million of
the required incentive offering would be used to pay for parking garages.
On a motion by Ken Fulk, seconded by Maxine Sweet, the Board 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 generated within the development (not including the town homes) for a
20 year period and 50% of the City of Allen sales tax generated within the development for a 10 year
period for a maximum amount of $22 million. They further recommended that the TIF meet three
criteria: the use of performance measures, a time limit and a cap on incentives.
Allen Economic Development Corporation
Special Called Meeting, August 11, 2005
Page 3
The Board also approved a recommendation that the combined AEDC and ACDC incentive offering
be approximately $6 million.
Adioum.
On a motion by Ken Fulk, seconded by Carl Clemencich, the meeting was officially adjourned at
9,45 p.m.
These minutes approved this 21" day of September, 2005.
Kurt Kizer, President Ke6 Folk, Secretary