Min - Economic Development Corporation - 2006 - 03/30 - Special CalledALLEN ECONOMIC DEVELOPMENT CORPORATION (AEDC)
BOARD OF DIRECTORS
SPECIAL CALLED MEETING
March 30, 2006
Board
Staff
Guests
Kurt Krzei
Charisse Bodisch
David Hoovei
Tim Wood
Dan Bowman
Blair Oden
Ken Fulk (left at 6:50 p.m.)
Jennifer Grimm
Todd Ashbrook
Maxine Sweet
Chris Barnet
Carl Clemencich (left at 6:50
p.m.)
Teny Darrow
Scott Asbury
Matt Elliott
Tim Powell
Calvin Ray
Call to Order and Announce a OnOrmn Present
With a quomm of the Board present, the Special Called Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by President Kurt Kizer at 5:32 p.m. on Thursday, March 30,
2006 at the AEDC Office. The following items were discussed:
Convene into Closed Executive Session.
The Board convened into closed executive session at 5:35 p in to deliberate commercial and financial
information and economic incentives for The recruitment of Project Bubbles to Allen
Reconvene into Regular Session
The Board reconvened into regular session 6:36 p.m.
Consider Aunroval of Incentives Supporting the Rec vitment of Protect Bubbles to Allen
Project Bubbles, a nationally known uniform company, is in the process of selecting a site for the
conshvction of an approximately 53,000 square foot facility Company representatives appeared
before the AEDC Boaid to discuss incentives for their Phase I project at 505 Century Parkway and to
request incentives for their anticipated Phase Il expansion in Allen Station Business Park.
The AEDC Board previously approved 520,000 in incentives for the company to locate a distribution
operation into 16,000 square feet at 505 Century Parkway in Allen; however, the company did not
execute the incentive contract because they anticipated the taxable value for the location to be less than
the value required by the AEDC. The company now knows the personal property that will be located
at the facility and feels they will be able to meet the values as specified in the contract.
Allen Economic Development Corporation
Special Called Meeting, March 30, 2006
Page 2
The company is considering land in Allen Station Business Park and McKinney for the Phase 11
expansion. While the company prefers Allen, the land is more expensive than the land under
consideration in McKinney. The company is requesting tax abatement consideration, assistance with
construction of the poi lien of Noble Drive that would be adjacent to the facility and other incentives to
offset the higher cost of the Allen site. The company's location decision will be driven by the bottom
line cost to the business.
The company is open to designing their building to compliment the architectural elements of the
existing buildings in Allen Station Business Park. The new facility to be constructed would generate
sales tax and employ approximately 150 employees. The Board took into account that the company
would own the building, increasing the probability that they would maintain long-term occupancy of
the facility
On a motion by Maxine Sweet, seconded by Ken Fulk, the Board approved a recommendation to the
City of Allen, Collin County and Collin County Community College for consideration of a 40% tax
abatement for 5 years on the budding and business personal property. The Board approved a $140,000
relocation grant payable upon the receipt of a certificate of occupancy and approved funding the
construction of the portion of Noble Drive that will be adjacent to the facility (at an approximate cost
of $110,000). The incentives are contingent upon the company constructing a building containing at
least 53,000 square feet in Allen Station Business Park, maintaining a minimum taxable value of 57.5
million on the building and business personal property and maintaining 100 employees for a period of
5 years The Board must approve the final landscaping, lighting and architectural designs for the
project. The Board authorized the President of the AEDC Board to negotiate and execute the contract.
Consider Approval of Architectural Elements for Allen Business Center Phase B in Allen Business
Park.
No discussion or action was taken.
Consider Appioval of Architectural Elements for Millennium CoiRumte_ Center
The AEDC Board pieviously provided an incentive package to Duke Realty to support the
development of a Class A office building in Millennium Corporate Centet, located at the northwest
comer of Bethany Drive and US 75
Blau Oden, Duke Realty, distributed a revised budding elevation and updated the Board on the status
of the project. Oden considers the rendering to be a "base" rendering to which Duke will add
additional features. Duke would prefer mote glass and stone and a more pronounced entryway on the
building.
The Board requested that Duke bang a more refined elevation at a later date
Convene into Closed Executive Session,
The Board convened into closed executive session at 6:47 p.m, to deliberate commercial and financial
information and economic incentives for the development of office/tech space in Allen Station
Business Park
Allen Economic Development Corporation
Special Called Meeting, March 30, 2006
Page 3
Reconvene into Regular Session
The Board reconvened into regalia session 7:55 p.m.
Consider Approval of Incentives Supporting Office/Tech Development in Allen Station Business Park
and Authorizingthe President to Negotiate and Execute all Agreements.
A developei is currently in negotiations with Allen Station Business Park to purchase approximately
10 acres located on the east side of the proposed Noble Drive for the development ora budding
containing approximately 94,000 square feet of speculative office/tech space. The company would also
place approximately 9 acres north of the development under option fa the eventual development of a
second budding containing approximately 120,000 square feet of office/tech space. The tract under
consideration is currently zoned multi -family and will require a zoning change. The City of Allen is
very supportive of the change. The company desires to construct space with low rents (in the $9410
per square foot range) that would include tenant finish -out. The building could be subdivided for
multiple tenants and the design would include rock.
Company representatives appeared before the Board to request incentives to assist with the
development of the project to help it be competitive in the local market. The company requested
relocation incentives, the waiver of City of Allen permit and impact fees and consideration of tax
abatement for the development. The company also requested that the AEDC covet the carry and
operating costs for the budding (approximately $63,270/month) for a period of 24 months. These
incentives would help the company secure financing for the development.
The construction of the portion of Noble Drive adjacent to the development is essential for the
development to go forward. The Board took into consideration that this project could help with the
retention of smaller Allen companies that have outgrown their existing space and that the project
would be developed on land that is currently zoned multi -family.
On a motion by Maxine Sweet, seconded by Tim Wood, the Board approved a 12 -month Master Lease
for 50% of the leaseable space on the initial 94,000 square foot building at a rate of $9.75 per square
foot, with space leased by third parties going do ectly to reduce the AEDC's obligations under the
Master Lease. The Board also approved funding the construction of the portion of Noble Drive that
will be adjacent to the development (at an approximate cost of $330,000). The incentives are
contingent upon the company maintaining a building value of $7 million. The Board must approve the
final landscaping, lighting and architectural designs for the project. The Board authorized the President
of the AFDC Board to negotiate and execute the contract.
Adloum
On a motion by Maxine Sweet, seconded by Tam Wood, the meeting was officially adjourned at
7:57 p.m.
These minutes approved this 19" day of April, 2006.
Kurt Kizer, P sident Ken Palk, Secretary