Min - Economic Development Corporation - 2006 - 12/13 - RegularALLEN ECONOMIC DEVELOPMENT CORPORATION (AFDC)
BOARD OF DIRECTORS
REGULAR MEETING
December 13, 2006
Board
Kurt Kizer
Tim Wood
Carl Clemencich
Mark Pacheco
Maxine Sweet - Absent
Staff
Robert Winningham
Jennifer Grunm
Dan Bowman
Call to Order and Announce a Ouomm Present
Guests
Pete Smith
David Hoover
Buddy Herring
Kevin Cummings
Barry Knight
Gar Herring
David Stautz
Danny Schoening
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,
December 13, 2006 at the AFDC Office.
1 Approval of Minutes of the November 15, 2006 Regular Meeting
On a motion by Mark Pacheco, seconded by Carl Clemencich, the Board voted unanimously to
approve the minutes of the November 15, 2006 Regular Meeting of the AEDC Board of Directors.
2 Approval of Minutes of the November 29 2006 Special Called Meetine
On a motion by Carl Clemencich, seconded by Mark Pacheco, the Board voted unanimously to
approve the minutes of the November 29, 2006 Special Called Meeting of the AEDC Board of
Directors.
3 Approval of AEDC Financial Reports
Dan Bowman presented the AFDC Financial Reports. On a motion by Tim Wood, seconded by Carl
Clemencich, the Board voted unanimously to approve the Financial Reports as presented.
4. Citizen's Comments
No citizen comments were made
Allen Econoinic Development Coanornlion
Regular Meeting, December 13, 2006
Page 2
5. Convene into Closed Executive Session.
The Board convened into closed executive session at 6 16 p.m. to deliberate commercial and financial
information and economic incentives for the following:
• Preliminary Discussion of the Development of the Village at Allen, L.P,
• Development of Allen Station Business Park
• Possible Expansion of Project 20/20
• Recruitment of Project Exhale
Reconvene in Open Session
The Board reconvened into regular session at 9:15 p.m.
Prelimriary Discussion of the Development of the Village at Allen L.P.
Representatives from the Village at Allen, L.P appeared before the Board to discuss the development.
No action was taken on this item.
6. Development of Allen Station Business Park
The Board discussed development scenarios for Allen Station Business Park, The Board also
reviewed changes proposed by Wilcox Development Services I, Ltd. to the AEDC Master Lease
Agreement with Wilcox Development Services I, Ltd.
No action was taken on this item.
7 Possible Expansion of Proiect 20/20
A representative from Project 20/20 appeared before the Board to present scenarios for the possible
expansion of their Allen facility and to request that the Board consider providing non-binding
feedback about potential incentives for future relocations. Project 20/20 is a fiber -optics component
company that recently relocated a facility from Richardson to Allen. To facilitate that relocation, the
AEDC Board offered an incentive package that provided a relocation allowance of $900,000 to the
company, contingent upon the company signing a 15 -year lease, providing 100 jobs, and maintaining
$5.9 million in taxable value for a period of 15 years.
Project 20/20 is considering consolidating one of their facilities currently located outside of Texas into
their Allen facility. No action was taken on this item.
B Recruitment of Project Exhale
The Board previously approved incentives for DBSI Discovery Real Estate Services, the owner of the
budding at 1300 N. Central Expressway, to assist with the recruitment of Project Exhale and to
improve the marketability of space in the building. Incentives were approved in the amount of the
Allen Economic Development Corporation
Regular Meeting, December 13, 2006
Page 3
lesser of $140,000 or the actual cost of tenant improvements to 22,280 -square feet of space at 1300 N.
Central Expressway. The approved incentives are contingent upon the following
• Protect Exhale signing a 6 -year lease on at least 22,280 -square feet of space at 1300 N.
Central Expressway
• DBSI Discovery Real Estate Services supplying receipts to verify tenant improvement
expenditures
Representatives from DBSI Discovery Real Estate Services have requested that the AEDC Board
consider lowering the term of the lease that Project Exhale must sign in order for incentives to be paid.
On a motion by Tim Wood, seconded by Mark Pacheco, the Board voted unanimously to approve
changing the Board's previous incentive offering to DBSI Discovery Real Estate Services to require
that Project Exhale sign a 5 -year lease in order for incentives to be paid. All other requirements for the
payment of incentives will remain the same.
9 Discuss Administrative and Marketin¢ Activities of the AEDC
Jennifer Grimnr, updated the Board on the marketing activities of the AEDC. Grimm requested that the
Board consider approving an approximately $30,000 increase to the AEDC marketing budget for the
purpose of improving the AEDC website and the purchase of internal records software. The general
consensus of the Board was for AEDC staff to obtain several additional bids for website upgrades and
records software before approval is considered by the Board.
10. Executive Director's Report
Robert Winningham gave the Executive Director's Report. The following items were mentioned:
• AEDC staff met with representatives from Project Tel -Drug. The company is moving
forward with their project and is giving Allen strong consideration.
• AEDC staff was contacted by representatives from Sanmina-SCI regarding the
possibility of the company relocating from Allen once their lease ends in
approximately one year. Winningham met with company representatives to discuss
the issue.
• The AFDC is considering having a Board Retreat for AEDC Board and Staff members
in January. The retreat would be an opportunity for the Board to discuss strategic
planning and Board policies.
11. Determine Next Meeting. Date
The next Regular Board meeting was scheduled for January 17, 2007 at 6:00 p.m.
12. Adjourn.
On a motion by Tim Wood, seconded by Carl Clemencich, the meeting was officially adjourned at
9:35 p.m.
Allen Economic Developnem Corporalian
Regula Meeting, December 13, 2006
Page 4
7 hese minutes approved this 17i° day of January, 2007
Kurt Ki: indent
indent
Carl Clemencich, Secretary