Min - Economic Development Corporation - 2005 - 11/16 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
November 16, 2005
Board
Kurt Kizer
Tim Wood
Ken Fulk
Maxine Sweet
Carl Clemencich
Staff
Charisse Bodisch
Jennifer Grimm
Dan Bowman
Call to Order and Announce a Ouonrm Present.
Guests
Don Powell
Curt Hefner
Blair Oden
Truce Elrod
Paul Anderson
James Ovens
Philip Williams
Bill Dahlstrom
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 6:15 p.m. on Wednesday,
November 16, 2005 at the AEDC Office. The following items were discussed:
Approve Minutes of the October 19, 2005 Regular Meeting of the AEDC Board of Directors.
The minutes of the October 19, 2005 Regular Meeting of the AEDC Board of Directors were approved
as submitted on a motion Maxine Sweet, seconded by Ken Fulk.
Convene into Closed Executive Session.
The Board convened into closed executive session at 6:17 p.m. to consider development scenarios for
the construction of an office building on property owned by the AEDC in Millennium Corporate
Center and to deliberate commercial and financial information and economic incentives for the
recruitment of Project Crane to 815 Enterprise Boulevard and also to discuss the financial points of a
draft contract between Montgomery Farm Garden District Partnership and Allen Economic
Development Corporation.
Reconvene into Regular Session.
The Board reconvened into regular session at 8:35 p.m.
Allen Economic Development Corporation
Regular Meeting, November 16, 2005
Page 2
Consider and take Action Regarding Dgvehpment Scenarios for the Construction of an Office
Building on Property Owned by the AEDC in Millennium Corporate Center.
Duke Realty previously proposed the development of a six -story, 140,000 square -foot Class A office
building in Millennium Corporate Center, located at the northwest comer of Bethany Drive and US 75.
The AEDC Board previously approved an incentive package to support this development which
included an offer of 7.74 acres of AEDC-owned land free, a recommendation to the taxing entities for
tax abatement, a $1.5 million incentive grant and a master lease on a portion of the building.
Blair Oden, Duke Realty, informed the Board that the contracts have been drafted including the
Purchase & Sale Agreement, Restriction Agreement, Incentive Agreement, Lease Agreement and Tax
Abatement. The respective attorneys are working through language on the documents and it is
anticipated that final contracts will be presented for Board approval at the AEDC December Board
meeting.
Don Powell, Boka Powell, presented alternative design scenarios for the building. Several designs
included moving the entryway away from the center of the building, with one option proposing a
comer entryway. Two modem, high-tech building designs were presented.
The general preference of the Board was for the image option 3 (as distributed). The rectangular
building design included traditional architectural elements and a comer entryway. The design elements
would also blend in well with the buildings expected to be constructed in the Montgomery Famr
Development at the southwest comer of Bethany Drive and US 75.
The parking lot and parking garage would be located on the north side of the building and the glass
side of the building would face to the south towards the central park area. The Board suggested that a
"star" shape be included in the design of the turnaround feature in the parking lot. Powell suggested
that it could be done using both hardscape and softscape elements.
Duke is currently considering the possibility of including under -floor air conditioning in the building.
The general consensus of the Board was not to provide additional AEDC incentives to support the
implementation of this technology.
The Board gave general guidance to Duke on the building design and agreed that the basic elements of
the budding designs presented by Duke were acceptable.
Consider and take Action for the Approval of Incentives Supporting the Recruitment of Project Cmne
to Allen.
Project Crane, a global supplier of fully -integrated process control solutions, is proposing a 63 -month
lease occupying approximately 40,000 square feet in 815 Enterprise Boulevard. The company
currently has 17 employees and plans to grow to 25 people by lune 1, 2006.
Project Crane representatives appeared before the Board to request incentives to offset costs associated
with a crane system and relocation expenses. The company's current facility options include staying at
their current facility in Richardson, moving to 815 Enterprise in Allen or constructing a build -to -suit
facility in McKinney.
Allen Economic Development Corporation
Regular Meeting, November 16, 2005
Page 3
The company is growing and would outgrow the space at 815 Enterprise within 5 years. They envision
eventually expanding within the building; however, if the remaining space in the building is leased
prior to their expansion, they would be forced to vacate the building.
On a motion by Maxine Sweet, seconded by Carl Clemencich, the Board approved a $25,000
relocation grant for Project Crane to be paid on receipt of a certificate of occupancy, contingent upon
Project Crane maintaining $125,000 in business personal property value and 15 employees for a 5 -year
period and signing a 5 -year lease on approximately 40,000 square feet at 815 Enterprise Boulevard.
The Board authorized the President of the AEDC Board to negotiate the contract.
Consider and take Action for the Approval of a Draft Contract between Montaomery Farm Garden
District and Allen Economic Development Corporation.
The Montgomery Fams Garden District is the commercial portion of the Montgomery Farm
Development located at the southwest comer of Bethany Drive and US 75.
The AEDC previously approved an infrastructure grant to support the commercial development.
The AEDC incentive has the following guidelines:
• Based on 50% of the sales tax collected by the AEDC over 15 years.
• Based on paid receipts for the infrastructure costs for the retail area. May include on and off-
site infrastructure that benefit the nnail/commercial portion.
• Tied to the Garden District reaching specific performance benchmarks and starting
construction by a specific date.
• The incentive is limited to $4,635,000 or 15 years, whichever occurs first.
• Trademark must be a participant in the retail development component.
A draft of the AEDC Incentive Agreement for the Garden District Development Group was distributed
to the Board for review. Philip Williams, Emerson Partners, informed the Board that the company is
interested in reevaluating the benchmarks set in the contract so that they match the benchmarks set in
the City of Allen TIF agreement for the project.
The general consensus of the Board was that additional time was needed to review the contract. The
Board authorized the AEDC subcommittee for the project to continue negotiations on the contract.
Approval of AEDC Financial Reports.
Dan Bowman presented the AEDC financial reports. On a motion by Ken Fulk, seconded by Tim
Wood, the Board approved the AEDC financial reports as presented.
Discuss Administrative and Marketing Activities of the AEDC.
Jennifer Grunm invited the Board to attend the "topping off' ceremony for The Corporate Center at
Twin Creeks on November 17', the AEDC Holiday Open House on December 86 and the City of
Allen Boards and Commissions Dinner on December 9'". The AEDC broker dinner that had been
proposed for January 26" has been cancelled. The City of Allen Christmas Tree Lighting Ceremony
will occur on December 2nd.
Allen Economic Development Corporation
Regular Meeting, November 16, 2005
Page 4
Jennifer updated the Board on the Regional Marketing Campaign in which the AEDC is participating.
The consortium has previewed preliminary design and strategy concepts for the regional ad program.
The Dallas Business Journal will be running a story on the regional marketing effort during the
coming month.
Charisse updated the Board on various projects.
Scheduling of Next AEDC Board of Directors Meeting.
The next Regular Board meeting was scheduled for December 14' at 6:00 p.m. A Special Called
Board meeting will be held on December 8' at 6:00 p.m.
Adioum.
On a motion by Maxine Sweet, seconded by Carl Clemencich, the meeting was officially adjourned at
9:02 p.m.
These minutes approved this 21" day of December, 2005.
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Kurt Kizer, President Ke Fulk, Secretary