Min - Economic Development Corporation - 2006 - 04/19 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
April 19, 2006
Board
Staff
Guests
Kurt Kizer
Charisse Bodisch
David Hoover
Tim Wood
Jennifer Grimm
Dennis Sheridan
Ken Fulk
Dan Bowman
Charles Edwards
Maxine Sweet
Blair Oden
Carl Clemencich
Al Blaine
Jovsn Cavas
Alan Haynes
Todd Ashbrock
Tarry Darrow
Chris Bamet
Call to Order and Announce a Quorum Present.
With a quorum of the Board present, the Regular Meeting of the Allen Economic Development
Corporation (AEDC) was called to order by President Kurt Kizer at 6:10 p.m. on Wednesday, April
19, 2006 at the AEDC Office. The following items were discussed:
Approve Minutes of the Much 15 2006 Regular Meeting and the March 30 2006 Special Called
Meeting,
The minutes of the March 15, 2006 regular meeting and the March 30, 2006 special called meeting of
the AFDC Board of Directors were approved as submitted on a motion by Maxine Sweet, seconded by
Carl Clemencich.
Consider Approval of Architectural Elements for Allen Business Center Phase II in Allen Business
Park.
American Diversified previously appeared before the AEDC Board and presented plans for the
construction of Allen Business Center Phase D, located in Allen Business Park at the northwest comer
of Bethany Drive and Greenville Avenue. The 65,000 square foot building will be designed to
complement the exterior of the existing Phase I.
As part of the incentive agreement, American Diversified must receive AEDC Board approval of the
architectural, landscaping and lighting plans prior to commencing construction. Dennis Sheridan,
American Diversified, presented building elevations which were updated based on prior input from the
AEDC Board.
Allen Economic Development Corporation
Regular Meeting, April 19, 2006
Page 2
The budding design includes additional brick on the exterior of the building, additional windows and
"pop ups" at both ends of the building that will wrap the comers of the building. These features were
added to create additional relief and attract higher quality tenants to the development. The glass and
brick added to the building design came at an extra expense to the developer. The developer expects
that the building will have approximately 160 parking spaces.
On a motion by Ken Fulk, seconded by Maxine Sweet, the Board approved the architectural elevations
for Allen Business Center Phase II, contingent on the final landscaping and lighting plans being done
in compliance with requirements of the City of Allen.
Consider Approval of Architectural Elements for Millennium Corvomte Center
The AFDC Board previously provided an incentive package for Duke Realty to support the
development of a Class A office building in Millennium Corporate Center, located at the northwest
comer of Bethany Drive and US 75.
Blau Oden, Duke Realty, distributed a revised building elevation and updated the Board on the slams
of the project. Changes to the building design include creating mom architectural interest at the comers
of the building by adding a slight recess and an eyebrow above the first level of windows and the use
of curtain -well glass that extends through the center of the building. A manufactured stone will be used
along the bottom of the building.
Oden also presented the landscape plan for the central park area, which included a quarter -mile
crosbed granite nail around the perimeter, shaded canopy structures, park benches, ponds with
waterfalls and seasonal color throughout the park. Oden believes that the park will be useful in
marketing the development.
The Board gave input on the building design, stating their preference for neutral colors and for more
architectural interest at the main entry on the north side of the building.
Supporting the Development of Class A Office in Millennium Comomte Center.
Tire AEDC Board previously provided an incentive package for Duke Realty to support the
development of a Class A office building in Millennium Corporate Center. The taxing authorities also
approved lax abatement in support of the project.
Contracts have been executed with Duke Realty, including the Purchase and Sale Agreement,
Restriction Agreement, Lease Agreement, Economic Development Agreement and Tax Abatement
Agreement. Duke adjusted the site plan said building Boor plate size for the building (with AFDC
approval) which has subsequently changed the legal description and the number of stories for the
building (from 6 to 5 stories).
Allen Economic Development Corporation
Regular Meeting, April 19, 2006
Page 3
Duke Realty requested the AEDC Board approve the amendments for the AEDC contracts and a
recommendation to the taxing authorities for an amendment to the Tax Abatement Agreement.
On a motion by Ken Palk, seconded by Carl Clemencich, the Board approved the contracts with the
following changes:
• Restriction Agreement - Changing the definition of `building" from six stories to five
stories on page one.
• Lease Agreement - Inserting the description of the number of stories in the second
recital paragraph on page one.
• Economic Development Agreement - Changing the description of "building" from six
stories to five stories on page one and two, changing "purchase" to "company" in
section 6.1 on page seven, changing the notary acknowledgement for Jeff Turner to
include a reference to general partner on page eleven and changing the definition of
building in Exhibit "D" from six stones to five stories.
The Board also approved the First Amendment to the Purchase and Sale Agreement and a
recommendation to the City of Allen, Collin County and the Collin County Community College
District for approval of an amendment to the Tax Abatement Agreement with Duke Realty Limited
Partnership.
Convene into Closed Executive Session.
The Board convened into closed executive session at 7:00 p.m. to deliberate commercial and financial
information and economic incentives for development of office/tech space on a portion of Parcel 5 in
Allen Station Business Park.
Reconvene into Regular Session.
The Board reconvened into regular session at 7'41 p.m.
Consider Approval of Incentives Supporting Office/Tech Development on a Portion of Parcel 5 in
Allen Station Business Park and Authorizing the President to Negotiate and E ecutg all Agreements
A developer is currently in negotiations with Allen Station Business Park to purchase approximately
19 acres located on the east side of the proposed Noble Drive for the development of two buildings
containing approximately 214,000 total square feet. The company is initially focused on the
development of Phase I consisting of approximately 94,000 square feet of speculative officettech space
on 10 acres and would like to place the remaining 9 acres under option for the eventual development
of a second building containing approximately 120,000 square feet of office/tech space.
The company initially requested:
• The AEDC cover the carry and operating costs for the building (approximately $63,270/month)
for a period of 24 months.
• Waiver of City of Allen permit and impact fees.
• Consideration of tax abatement for the development.
Allen Economic Development Corporation
Regular Meeting, April 19, 2006
Page 4
The AEDC Board previously approved incentives for the development consisting of:
• Constructing the company's portion of Noble Drive (estimated at $330,000).
• A 12 -month master lease on 50% of the fust building (47,000 square feet) at $9.75/square foot.
• All leases in the building go 100% towards the AEDC portion first.
Company representatives requested the reconsideration of incentives consisting of:
• Construction of the company's portion of Noble Drive.
• An 18 -month master lease on 60% of the first building (56,400 square feet) at $9.90/square foot.
• Leases in the building would count 100% toward the AEDC portion until 30% of the building is
leased and then 60% of the space leased would be applied toward the AEDC portion (with 40%
going towards the company's portion). The AEDC would be released firm the obligation once
80% of the building is leased.
• If the company offers free rent as an incentive to a tenant, the lease would not be applied toward
the AEDC portion of the building until after the period of free rent has expired.
Company representatives explained that the land price has increased from $2.80/square foot to
$3.1 0/square foot, which has increased the cost of the project and driven up the rental rate for the
building from $9.75/square foot to $9.90/square foot. The company feels that they can get an option on
the remaining acreage.
The Board expressed concern about the company providing free rent to attract tenants at the expense of
the AEDC master lease.
On a motion by Ken Folk, seconded by Tim Wood, the Board approved the following incentives to
support the development:
• Constructing the portion of Noble Drive adjacent to the initial building, with consideration of
construction of the portion of Noble Drive that would be adjacent to Phase B of the development
if the company can secure an option on the remaining acreage.
• An 18 -month master lease on 60% of the first building (56,400 square feet) at $9.90/square foot
• Leases in the building would count 100% toward the AEDC portion until 30% of the building is
leased and then 60% of the leases would be applied to the AEDC portion (with 40% going
towards the company's portion). The AEDC would be released from the obligation once 80% of
the building is leased.
• Leases in the building would reduce the AFDC master lease as of lease commencement.
The incentives are contingent upon AEDC Board approval of the final landscaping, lighting and
architectural designs for the project and the company maintaining a building value of $5 million. The
Board authorized the President of the AEDC Board to negotiate the contract.
Consider Approval of Architectural Elements for an Office/Tech Building in Twin Creeks Business
Park.
Bradford Development is planning to construct three speculative buildings containing approximately
180,000 total square feet on approximately 12 acres at the southwest comer of Watters Drive and
Raintree Circle in Twin Creeks Business Park. The AEDC Board previously offered incentives to
support the development.
Allen Economic Development Corporation
Regular Meeting, April 19, 2006
Page 5
As part of the incentive agreement, Bradford must receive AEDC Board approval of the architectural,
landscaping and lighting plans prior to commencing construction. Al Blaine, Bradford Development,
presented preliminary building elevations to the Board.
The building design consists of tilt -wall construction with rock/stone facade used in some meas. Some
of the lighting will be attached to the building.
The Board prefers that the developer include elements in the building design that break up the
appearance of the Bat tilt -wall panels on the exterior of the building.
Consider Approval of en Amendment to the Economic Development Agreement Between Allen
Economic Development Corporation and Quest Medical.
The AEDC Board previously approved an incentive grant for Quest Medical to assist with the
company's expansion and retention in Allen. The incentive agreement required that the company
maintain operations at the "Premises" until the fifth anniversary date of January 1, 2006. Quest
Medical's incentive contract lists an incorrect address under the definition of "Premises."
On a motion by Carl Clemencich, seconded by Ken Falk, the Board approved an amendment changing
the definition of "Promises" in the Economic Development Agreement with Quest Medical from "100
Allentown Parkway" to "One Allentown Parkway."
Approval of AEDC Financial Reports
Dan Bowman presented the AEDC financial reports. On a motion by Carl Clemencich, seconded by
Maxine Sweet, the Board approved the AEDC financial reports as presented.
Discuss Administrative and Marketing Activities of the AFDC
Jennifer Grimm updated the Board on marketing activities of the AFDC. Several important dates were
mentioned: the Spring Texas Economic Development Council Conference will be held in Frisco on
April 19 - 21, the Montgomery Farm Groundbreaking will be held on April 20u, the Accudata Ribbon
Cutting is April 26'" and the TEDC Sales Tax Training will be held on November 3'd in Fort Worth.
Jennifer presented the advertisement that the Collin County Regional Marketing team will be running
in business publications outside of Texas. The cost of the ad campaign is divided among participating
economic development entities equally.
Charisse updated the Board on the status of various projects. Carl Clemencich and Tim Wood were
appointed to serve on the Hotel/Motel Subcommittee for 2006.
Scheduling of Next AEDC Board of Directors Meeting,
The next Regular Board meeting was scheduled for May 17, 2006 at 6:00 p.m. A Special Called Board
meeting was tentatively scheduled for May 4 at 4:30 p.m.
Allen Economic Development Corporation
Regular Meeting, April 19, 2006
Page 6
Adjourn
On a motion by Carl Clemencich, seconded by Ken Falk, the meeting was officially adjourned at 9:05
p.m.
These minutes approved this 171h day of May, 2006.
4�t it IiN'n 'v'
Kurt Kizer, Pr sident leen Falk, Secretary